Analyzing HRM Practices and Business Strategy: A Tesco Report

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Project
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Table of Contents
Project .............................................................................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 2............................................................................................................................................5
Importance of HR practices to Business Strategies.....................................................................5
TASK 3 .........................................................................................................................................10
Reflective essay.........................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13
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INTRODUCTION
Human Resource management refers to planning, organising, directing and controlling
human resource of an organisation’s human resources. Related to human resource management
organisation can have their own objective behind practicing human resource management but
one common objective of all the organisations in this regard is that they want to ensure optimum
utilization of their resources through their human resource. This report includes discussion over
importance of human resource practices in business strategy of the organisation. Tesco, British
Multinational groceries and general merchandise retailer company have been contextualized in
report for discussion. The company was founded in 1919 and is headquartered at Hertfordshire,
England. This report includes discussion over why HR practices are important for organisational
strategy and later career development and career planning which are important HR practices
have also been included in the report along with discussion over various tools of career
development like career management and performance management.
TASK 1
Introduction
HRM is practice of managing people in an organisational context. In this practices of
HRM are different when management of Human Resources is practiced at local level and its
practices are different in international level. In addition to this, the HRM can be termed out as
the strategic approach to the effective management of people in a company or organization as
they help the enterprise in order to gain a competitive advantage. However, the enterprise needs
to take the initiatives in manner to designed activities that aids to maximize employee
performance in service of an employer's strategic objectives. In addition to this, HRM can be
termed out as practice that leads to undertake the business activities as to recruiting, hiring,
deploying and managing an organization's employees.
Difference and Domestic and International HRM
Level of Operation
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International Human Resource Management is practiced at international and global level.
In this the type of practice and operation might be different but company manages human
resource of various nationals who are working for the company. for example Tesco is British
company but in context of international HRM it manages people who are from UK and along
with those who are from other countries than UK. This might depend on the policies of Tesco in
regard with its hiring policies in which the approach Tesco selects for hiring affect people which
will be managed by Tesco. This includes managing people who are working for Tesco another
country than UK where Tesco operates and functions. On the other hand, HRM can be termed
out as the process that mainly looks over the process of hiring and developing employees so that
they become more valuable to the organization. In addition to this, this is termed out as strategic
and coherent approach to the management of an organization's and this aids to bring out
systematic working within the enterprise. On the other hand in relation with domestic
management Tesco have to manage people who are from UK. Tesco is multinational company
and this is why it manages HRM at international level.
Activities
Activities of Tesco in context of international HRM include many other activities like expatriate
management etc. Expatriate management refers to managing employees of organisation from
other countries to work for Tesco in UK. Expatriate management includes various activities
which includes that expatriates which come to other nations, they are required to help to deal
with changing environment of the nation and culture.
On the other hand domestic environment does include such activities and all the activities are
only HR activities which are necessary and basic activities of Human Resource Management.
Personal Involvement
In context of international HRM, HR personnel do not have any personal involvement with
expatriate. This is done so that employee can be helped to adjust and new culture and changed
environment of the country.
On the other hand in domestic environment HR personnel does not have to have much personal
involvement with employee as all the employees are from the same culture and same nation.
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Factors Affecting
In the international HRM, there are various external factors which affect management of human
resources in the country. For Tesco in context of internal Human Resource Management, factors
which affect HRM are cultural factors and institutional factors.
On the other hand in domestic HRM such factors does not affect management and does not make
it complicated because there is no influence of external factors.
Organisational Disputes
In context of International HRM, chances of organisational disputes are higher than in domestic
human resource management.
Disputes happen because of cultural differences, difference in thoughts and perceptions of people
and employees of different nations.
Risk Involved
In international HRM risk involved is high this is because cost associated with international
HRM is higher than which is involved with domestic HRM.
CONCLUSION
On the basis of above discussion it can be concluded that there are various factors which
differentiate in domestic HRM and international HRM. These factors are operations and
activities involved, level of management of HR. Thus, HR to the enterprise plays the crucial role
at the both national and international level.
TASK 2
Importance of HR practices to Business Strategies
HR practices are important for all the aspects of the organisation. But in relation with
Business Strategies, which is basis for all the activities being carried out by the business. This
includes activities being carried out by the business but activities are carried out by the people
who are working in and working for the business organisation. is the practice of recruiting,
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hiring, deploying and managing an organization's employees. HRM is often referred to simply as
human resources and this aids to undertake organization's HR department in the usually
responsible with help of creating, putting into effect and overseeing policies governing workers
and the relationship of the organization with its employees. Therefore, the entity or
organization's HR department is usually responsible for undertaking the activities as to creating,
putting into effect and overseeing policies governing workers and the relationship of the
organization with its employees.In addition to this, the some of the important reasons which
make it important for Tesco to follow HR practices are as follows-
Recruitment- Through this practice Tesco ensures it has required number of competent people
who are able to work on strategies which have been developed by the Tesco. This is one of the
first and important activity as without organisation having adequate number of employees it will
be not able to carry out any planned strategy. Organisation when develop strategy it is
responsibility of HR to outline number and type of people which it will be requiring for
functioning of the strategy ( Daley, 2012). For Example- Company strategies its expansion and
for this strategy they will need extra manpower and this need will be fulfilled through
recruitment. Thus, managers of the Tesco needs to takes the initiatives to hire the skilled
workforce that can help to bring maximum productivity and profitability within enterprise. If the
entity have the skilled labour workforce then activities within the organisation can be operated in
the streamlined manner.
Training and Development- training and Development activities help organisation in enhancing
the existing knowledge of the staff and along with instilling new knowledge and skills which are
required to be possessed by them so that they can carry out their work more efficiently. This is
also the responsibility of HR to see that all the employees of the organisation have the
knowledge and skills which they require for their job role (Wright and Snell, 2020). This is
important for organisation strategies as if business strategy of Tesco includes that Tesco will
install new technology in its stores and all the people who work at its store level will require to
ork with the updated technology. In this case HR practice of Training and Development will
ensure that all the employees know how to use the updated technologies. Therefore, training and
development facilities plays the crucial role as this bring out best from enity. With the use of
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providing better training facilities the enterprise can able to earn long term productivity and
sustainability.
Reward and Recognition- Business Strategies require that employees work on them efficiently.
Employees will work on the strategies efficiently when they are motivated to work and are
willing to fulfil business objective through its objectives. For the purpose of motivating and
ensuring willingness of employees in order to get their best contribution in achieving objectives
through strategy it is important that they are recognised and rewarded (Delery and Doty, 2020).
Therefore, this can be stated that Recognition and rewards will vary from organization to
organization, and how this appreciate employees will depend on your unique company needs.
Witrh the use of distributing rewards to employees the entity can perform their business activities
in more streamlined manner. Henceforth, this can be stated that recognition and rewards
platform that allows employees to send small, public bonuses to each other to recognize and this
kind of working within the enterprise leads to accomplish success. Additionally, Recognition can
be considered as one of the acknowledgement or a special notice or attention. This is one of the
effective thing that aids to motiovates the employees as they feel valued and perform their best.
Performance Management- This is another practice of HR involves alignment of business
objectives with individual performance objectives. Strategies involve achievement of particular
objectives (Wright and McMahan, 2020). These objectives are framed in strategies and later
divided into actions. In this organisation determine their objectives and roles to play in
achievement of objectives. These objectives are divided in departmental and team objectives.
These are later divided into individual objectives. Objectives are determined for individual and
standard for their performance are also communicated. Performance of individual is based on
strategies and their performance is linked with organisation objectives. This is why for business
strategy performance management is really important.
Compensation Management- This HR practice involves management of compensation in an
organisation. Compensation refers to monetary non-monetary benefit which is given to
employees of Tesco in exchange of their services to the organisation. This is also important for
business strategy as the decision regarding compensation of the employees is also a part of
business strategy. In this employees are required to pay which is worth their performance and
contribution in the organisation. Other than this one of the main reason this is important for
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business is that compensation is one of the main reason because of which individuals join
organisation and work for them. To attract competent people in the organisation it is important
that company offers attractive pay and compensation to the candidates. Through this company
will be able to get employees which are able to give their best contribution for achievement of
objectives of Tesco.
Analysing Benefits- In this benefits which are given be employees to organisation are calculated
by the HR. This includes analysing cost associated with hiring and managing human resources
and the profit which is earned through human resources of the organisation. This practice helps
in understanding strategies related to compensation and this also provides basis for analysing HR
policies. This is very important as Tesco is a business organisation and this is why money and
cost associated with it are important factors for consideration for its strategies.
Maintaining Compliance- It is important for organisation to maintain compliance so that they
are able to effectively execute their strategies. Strategies are required to be according to laws and
regulations which govern various activities of the organisation. HR is required to ensure that all
the regulations are followed properly so Tesco does not have to face any legal and regulatory
complications.
Other than this some of the important reason because of which HR practices are important for
Business Strategy is that-
Ensure Alignment around the organisation’s vision and values as a solid foundation for strategy.
Many times people of organisation who are involved in making and designing business strategy
chances are there that they might lose sight of core of organisation which are its vision and
values. In such situation it is HR, who is known as organisation and talent expert, can re-ground
business leaders in vision around the organisation’s purpose and is the values that drive people’s
motivation and behaviour is certain way.
Leaders of HR also play important role in HR practice of modelling organisational values in their
own team’s behaviour and actions, this is helpful in during the changes which Tesco might face
because of its strategies and changes because of the strategies.
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HR practices keep Culture of Tesco is Top of Mind which is important to enable Strategies. This
is important practice of HR that they keep and consider culture of organisation as their priority
and this is important because best strategies can be failure in case organisation culture is
dysfunctional. For effective execution of strategies it is important that organisation culture is apt
to deal with strategies. This is the importance of strategies and when strategies related decisions
are taken by other organisational people it becomes important for HR to keep its culture working.
Help People to identify and understand their role in strategies and articulate strategies to
organisational people. HR plays important role through which they help people to identify and
understand role of people in the organisational strategy and articulate strategies to the
organisational people. It is important because if people do not understand what they are required
to do in regard to organisational strategy it will not be possible for them to execute their role and
strategies of organisation.
HR practices and people of HR help leaders of Tesco to identify and articulate people factor
linked with Strategy (Boon, Den Hartog and Lepak, 2019.). It is important to link HR with
strategies as they are one to work with it and important component of each strategy. In such
situation it is through HR practices leaders of organisation can identify and understand the HR
factors and role of HR in the strategy. Unless leaders of the organisation are not able to clearly
identify and articulate what aspect of strategy and how strategy requires support of human
element. It will not be possible for Tesco to implement strategies in the organisation. This is
another importance of HR practices for business strategies.
Through HR practices HR keeps employees engaged with strategies and other changes of the
Tesco. HR practices ensures that employees are engaged with organisational strategy and
strategies which bring change in the organisation through its practices HR ensures that
employees are ready to accept the changes and are able to work in changed organisational
environment. It will be failure of strategy and would cause inefficient result of strategy
implementation if the organisational employees are not working in the changed environment and
are not performing as they are expected. This is important reason HR practices play important
role to keep employees engaged with their job role and this includes their role in organisational
strategies as well.
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TASK 3
Reflective essay
Human resources management within the enterprise plays the crucial in order to bring
streamlined working within enterprise. Thus, significance of seeing career as stage of
development is to sets formal training, developmental activities and relationship at the each
phase this can be called out as career development (Armstrong and Taylor, 2020). In addition to
this, traditional training program put the major focus on bringing imporvement in specific
competencies that is relate with employee current jom, employee development program that aids
to bring better career advancment for individuals. I must say that in this competitive era the
entoties needs to lool over the skills of employees and efforts of individuals on attracting the top
talent. In addition to this, competitive employment pacakges that go beyond traditional
compesation and benefits can be termed out as key to success. In order to enhance the
productivity within the enterprise, the entity needs to provide better trainuing facilities to
employees. I must have analysed that employees who takes participation in required training
courses and worked based development activity leads to higher job satisfaction and
organisational commitment. Thus, to be advabced working entity the entity must take steps
towards to retain employees and reduce turnover. By the use of organisational commitment and
career development opportunities the entity can assist to retain employees and prevent turnover.
In addition to this, the organisation can also able to enhance the productivity and financial
retruns in their employees with the use of career development.
Henceforth, this can be stated that career development plan is totally different from
performance appraisal. In addition to this, the career development plan can be terned out as
future focused (Morgeson, Brannick and Levine, 2019). This is also crucial for undertaking the
activities that looks over on account departmental, organisational requirements and goals at the
time of creating career plans.
In addition to this, this can be stated that the prominence and significance of organizational
career planning and management (CPM) as part of HRM have been widely recognized.
Therefore, career system within the organisation can be comprised of three-level framework such
as strategy, policy, and practice. At the practical level, the individual can find out the number of
activities and practices that aim to help organizations in terms to manage the careers of
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employees. An appropriate system should aim to ensure a fit between individual needs and
aspirations and organizational requirements.A career belongs to the individual, but career is
planned and managed for the individual by the organization. The organizational structure
identifies an internal road map, clarifying positions and the interrelationships between these
positions (Lussier and Hendon, 2019). Furthermore, I must say that organizational career
management is inclusive of the mechanisms that aids to enable people to navigate this road map.
Therefore, thsi can be stated this leads to organizations in terms to leading role and to have
control over career planning and management.
SOCIAL COGNITIVE THEORY
In order to bring advancment in working the enity must adopt the theoritical framwork as
Social cognitive career theory as this is termed out as new theory that is aimed at explaining
three interrelated aspects of career development and these are outlined as-
ï‚· How basic academic and career interests develop.
ï‚· How educational and career choices are made.
ï‚· How academic and career success is obtained.
Social learning theory- It is theory that aids to put the major focus on the enviornment, learning
experience and task approach. This also has defined that how these components influence
behaviour and career choice. In addition to this, these are outlined as-:
ï‚· This is theory that aids to shape the enviornment and making it conductive to the process
of learning.
ï‚· It is process that also directs the employees to encoutrage the employees to take
partcipation in day to dat and also assist to maintain attitue and generate unplanned career
opportunities while encountering the unexpected events.
Henceforth, this can be stated that the career development and managerial activities plays
the crucial role in terms to bring effective and efficient activities. career development theory can
be termed outs as the most widely known life-span view of career development. Developmental
theories helps to bring out the action that assist to recognize the changes that people go through
as they mature, and they emphasize a life-span approach to career choice and adaptation.
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CONCLUSION
Henceforth, this can be summerized that Human resource manager in the enterprise plays
the crucial role in terms to bring better advancment that assist to undertake better performance
within enterprise. In addition to this, human resource management can be defined as an
important approach that aids to firm in manner to achieve their objective on a regular basis by
means of developing a positive attitude amongst the employees. The present report has covered
the business activities of Tesco. Therefore, study has covered the discussion that HR practices
are important for organisational strategy and later career development and career planning. On
the other hand, important HR practices have also been included in the report along with
discussion over various tools of career development like career management and performance
management.
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REFERENCES
Books and Journals
Abuazoom, M.M., Hanafi, H.B. and Ahmad, Z.Z., 2017. Influence of HRM practices on project
performance: Conceptual Framework. International Journal of Academic Research in
Business and Social Sciences. 7(3). pp.47-54.
Arvanitis, S., Seliger, F. and Stucki, T., 2016. The relative importance of human resource
management practices for innovation. Economics of Innovation and New
Technology. 25(8). pp.769-800.
Malik, A., 2016. The role of HR strategies in change. In Organizational change management
strategies in modern business .(pp. 193-215). IGI Global.
Mariappanadar, S., 2019. Sustainable Human Resource Management: Strategies, Practices and
Challenges. Macmillan International Higher Education.
Olson, E.M and et.al., 2018. The application of human resource management policies within the
marketing organization: The impact on business and marketing strategy
implementation. Industrial Marketing Management. 69. pp.62-73.
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Morgeson, F.P., Brannick, M.T. and Levine, E.L., 2019. Job and work analysis: Methods,
research, and applications for human resource management. Sage Publications.
Lussier, R.N. and Hendon, J.R., 2019. Fundamentals of Human Resource Management:
Functions, Applications, and Skill Development. SAGE Publications, Incorporated.
Boon, C., Den Hartog, D.N. and Lepak, D.P., 2019. A systematic review of human resource
management systems and their measurement. Journal of management. 45(6). pp.2498-
2537.
Wright, P.M. and McMahan, G.C., 1992. Theoretical perspectives for strategic human resource
management. Journal of management. 18(2). pp.295-320.
Delery, J.E. and Doty, D.H., 2020. Modes of theorizing in strategic human resource
management: Tests of universalistic, contingency, and configurational performance
predictions. Academy of management Journal. 39(4). pp.802-835.
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Wright, P.M. and Snell, S.A., 2020. Toward an integrative view of strategic human resource
management. Human resource management review. 1(3). pp.203-225.
Daley, D.M., 2012. Strategic human resources management. Public Personnel Management.
pp.120-125.
Armstrong and Taylor, 2020 Morgeson, Brannick and Levine, 2019 Lussier and Hendon, 2019
Boon, Den Hartog and Lepak, 2019 Wright and McMahan, 2020 Delery and Doty, 2020
Wright and Snell, 2020 Daley, 2012.
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