The Role of HRM in Achieving Sustainable Performance: A Tesco Analysis

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Tesco, focusing on their contribution to sustainable organizational performance. It explores key areas of HRM, including HR planning, industrial relations, training and development, and recruitment/staffing, examining their impact on employee performance and organizational goals. The report reviews the effects of the changing nature of organizations on human resources knowledge and skills, highlighting the importance of adapting HRM practices to modern business environments. It also evaluates HRM practices in relation to employee retention and recruitment, considering the importance of the labor market. Furthermore, the report discusses internal and external factors affecting HRM decision-making, utilizing organizational examples to illustrate support for organizational development and providing recommendations for improvement.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Explain the main areas of HRM in their contribution to create sustainable performance 4
M1 Compare areas of HRM to create sustainable organizational performance.....................5
P2 Review the effects of the changing nature of organizations on human resources knowledge
and skills.................................................................................................................................6
M2 Examine HRM in relation to the changing nature of the modern business organization 7
P3 Review the relevant HRM practices in relation to retention and recruitment of workers for
the achievement of business objectives..................................................................................8
M3 Evaluate the use of HRM practices in retention and recruitment in relation to importance
of labor market.......................................................................................................................9
D1 Critically evaluate the weaknesses and strengths of HRM in relation to creating
sustainable organization performance and achieving business objectives.............................9
TASK 2..........................................................................................................................................10
P4 Internal and external factors that affect the HRM decision making to support
organizational development..................................................................................................10
M4 Discuss the key internal and external factors that affect HRM decision making, utilizing
relevant organizational examples to illustrate how they support organizational development13
D2 Evaluate the key factors affecting HRM decision making to make valid recommendations
..............................................................................................................................................13
P5 Apply HRM practices in a work-related context, using specific examples to demonstrate
improvement to sustainable organisational performance.....................................................14
M5 Illustrate how the application of specific HRM practices in a workrelated context can
improve sustainable organisational performance.................................................................21
D3 Determine strengths and weaknesses of HRM practices to make recommendations for
improving sustainable organisational performance..............................................................22
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................24

INTRODUCTION
The human resource management is defined as method or procedure which is utilized by
firm for sustaining their overall performance for long time. Due to effective utilization of human
resource department company easily run their whole departmental and operational activities
smoothly. The main objective for utilizing this strategy by company is to maintain effective
communication with each and every employee for long time. Here the chosen organization is
TESCO for analysing the impact and concept of human resource management Tesco is a retail
supergiant that was founded in the year 1919 and is headquartered in the Welwyn Garden City,
UK. This firm deals in wide variety of goods and services in grocery and retail sector which
includes regular use products and services. This report will describe and critically evaluate HRM
practices in different context of an organisation, elaborating its contribution to performance and
sustainable organisational growth. It will be describing about many aspects of HRM and how it
affects the organisation in different ways (Ali, Tawfeq and Dler, 2020).
PART A
TASK 1
P1 Explain the main areas of HRM in their contribution to create sustainable performance
There are various types of areas within HR management which is highly important for
developing improvement in the performance of their employees effectively (Ali, Tawfeq and
Dler, 2020). Due to the improvement of their workers organization is able to provide high quality
services and products to customers for long time. Due to providing guidance and training to the
employees, organization is able to identifying the needs of the customers in time. In context to
TESCO, the areas which are needed to consider by organization are described below -
 HR Planning – The management of human resource permits the higher authority within
firm to establish strong infrastructure. Because due to effective organization structure or
infrastructure company is able to sustain strong communication with levels of
departments for long time. During the time of maintaining strong infrastructure
organization is able to run or accomplish their roles and responsibilities in systematic
manner.

 Industrial Relations– It means HRM also provides different types of financial and non-
financial benefits to workers within company. It involves decent wages, increments,
bonuses medical benefits and other allowances. With help of these types of benefits all
types of employees put their full interest and passion regarding responsibilities in the job.
It leads to enhance the overall productivity and performance of organization at higher rate
for long time. In context to TESCO, it is necessaary for management that they provide
strong financial support to their employee's for long time. In this way the positive
performance and productivity of workers is effectively sustained in organisation for long
term (Amrutha and Geetha, 2020).
 Training and Development – HRM also assists the company in aspect of identifying the
skilled and talented workers at the time of conducting programme of effective training
and development. With help of facilitating effective training to all categories of
employees functions of company are run smoothly. In respect of TESCO, authority must
utilize their resources in effective manner during the time of providing training to their
employees. In this way the communication between all levels of department are easily
sustained for long time.
 Recruitment/Staffing and Selection: – It is the major function of HRM for identifying
the talented and qualified workers quickly with help of utilizing different types of
strategies. The strategies includes face to face interview, screening of employee
applications and so on. Due to the effective use of these types of techniques TESCO is
able to build strong and talented workforce for handling any type of complicated
situations smoothly. Due to recruiting talented workers easily sustain their overall
productivity, vision, mission and objectives in market for long time.
M1 Compare areas of HRM to create sustainable organizational performance
Employee development and training method is a suitable and effective strategy to
enhance employee performance for TESCO in aspect of business activities or functions
smoothly. During the time of using this method the responsibilities and roles are clearly defined
by the higher authorities for employees effectively. With help of proper industrial relations clear
concept among employees of organization is developed to accomplish their task smartly and in
prescribed manner. With help of providing advanced training and development to the employees,

company easily sustained their vision, mission and objectives for long time in market. HR
Planning also helps to improve the allocation of human resource within the organisation
according to their capabilities which leads to improvement in the performance of the employees
as well as the organisation. In this procedure employees easily understand that through which
way organization fulfil their roles and responsibilities in time. Due to providing effective training
strong communication is effectively developed between employer and employee or employee
and consumer for long time. With help of keeping positive industrial relations and coordination
firm easily increased the sales of their goods and services in low time. In this way the goodwill
of company are easily developed in employee mind for long duration (Botha, Blom and
Modipane, 2019).
P2 Review the effects of the changing nature of organizations on human resources knowledge
and skills
HRM is basically a one type of method or procedure which is used by the higher
authority of TESCO for improving the skills of their employees. The concept and procedure of
HRM also assist the firm for sustaining their overall productivity and work efficiency at
maximum level for long time. Due to the effective utilization of this approach organization easily
gained the competitive advantage in market within short duration (Macke and Genari, 2019).
Therefore, this is highly crucial for organization in aspect of utilizing different types of strategies
for increasing the positive impact of the changing nature of company on human resource
knowledge and skills. Due to the effective utilization of human resource management
organization also have the choice for executing new changes which is highly beneficial for their
employees. In context to TESCO, the effect of human resource management in relation to
changing nature of organization are explained below (Roundy and Burke-Smalley, 2021) -
The HRM supports an organisation for enhancing the participation level of workers at the
time of executing various changes within firm by the top level management. Those changes
involved change in method, change in time for accomplishing the task in attractive and
systematic manner. In relation to TESCO, authority must always take the opinions or suggestions
of their employees and considered them as a part of the family. This could assist in executing
different strategies and plans in effective manner which leads to increase their work efficiency at
higher rate.

It is important to mention that providing high or standard quality goods and services to all
types of customers in quick manner. This is done for delivering product to customers quickly
positive relationships are easily sustained between employee and consumer for long duration.
Human resource management is one of the essential departments within organization and also
played the important role for facilitating various types of equipment's and other resources. With
help of using different resources in effective manner employees easily do their task on time. It
leads to enhance the market share and revenue of TESCO at large level.
The next important aspect is that HRM also assist the company for maintaining friendly
work atmosphere between all types of employees in workplace area (Bratton and et. al., 2021).
Due to keeping friendly atmosphere workers are able to put their full effort, interest, passion and
energy in their job role long time. It leads to increase their performance in their work effectively
and also able to solve the complicated situations easily.
After the analysis of above information, Due to the effective coordination with HRM firm
is able to use their resources in optimized manner. With help of optimum utilization of resources
organization is able to generate their revenue or profit margin at large scale within short duration.
M2 Examine HRM in relation to the changing nature of the modern business organization
As already discussed above HRM is one type of method or procedure which is used by
senior level management within organization. The changing environment of HRM includes work
force diversity, economic and technological change, globalisation, organisational restructuring,
changes in the nature of jobs and work and so on. Firstly, this supermarket are highly improved
their scanners and camera with help of using advanced technology. Due to the effective use of
cameras and scanners manager of HR department is able to check the performance of their
employees on daily basis. Secondly, company introduced self checkin and checkout system
which leads to enhance automation. Due this organization did not need much staff in workplace
area and convenience are highly increased for users to buy their desired product in less time.
Thirdly due to the effective use of technology the workload of workers are highly decreased and
also handle the complicated task easily. In context to TESCO, authority are faced various types
of impact in relation to HRM. Those impacts are participation of employees, providing best
quality services and products to customers, keeping friendly atmosphere and others. Due to
considering these impact firm is able to sustain their goodwill in market for long duration.

P3 Review the relevant HRM practices in relation to retention and recruitment of workers for the
achievement of business objectives
Employee retention is basically referred to the efforts on the part of an employer which is
aimed at developing an environment which assists the current requirement of employees so that
they can continue to be part of company (Chaudhary, 2020). Due to the effective use of HRM
practices firm is able to maintain effective communication with all categories of customers for
long time. The various HR practices which is conducted by the management of TESCO for
retaining the employees are described below-
 Employee development and training – It is one of the essential and beneficial technique
which is company utilized by company for increasing the productivity of workers at
maximum level. In context to TESCO, management must train workers at advanced and
systematic manner with help of using various equipment and other resources. Due to
providing effective training the overall potentiality and ability of the employees are
highly developed. In this way employees get ready for handling any type of difficult task
effectively and the overall activities of organization are easily run in smooth manner for
long time.
 Rewards and Timely Compensation – It is a one type of motivation technique which is
used by organization for encouraging their employees mentally and physically in their
work. In this method both financial and non-financial benefits are provided to the
employees according to their performance in the job. Due to providing various types of
benefits such as increment, bonus, appreciation and awards, the confidence level and
ability of the employees are highly increased. In this way employees are able to
accomplish the task with full interest and passion for long duration.
 Performance Management – Performance Management can be explained as the
examination of performance of an individual with the predetermined standards to identify
the diversion in the actual performance and the deviated performance and align it to the
set standards. It is also a very important concept for organization in aspect of sustaining
the performance of workers effectively. Therefore, it is essential for the management of
TESCO that they must always maintain flexibility in their business activities and the task
which is provided to employees. Due to keeping flexibility in various aspects for
employees firm is able to reduce risk in the business activities at large scale. Those

aspects are time flexibility, shift flexibility, work flexibility and others. The other
advantage is that due to keeping work life balance the lower level employees are able to
do their job without any type of stress.
 Positive work culture – It is also a very important point for running the activities of
organization in smooth manner (Costello and Oliver, 2018). With help of following this
concept the management of TESCO is able to identify the strength and weakness of the
employee's quickly in friendly manner. Due to keeping friendly work culture the loyalty
of employees is highly increased towards company for long time.
M3 Evaluate the use of HRM practices in retention and recruitment in relation to importance of
labor market
From the analysis of HR practices it understood that if company demand more labor to
occupy the new position, HRM have to recruit more employees in resulting of lower
unemployment. Thus, incorporation of on-the-job search and costs for job creation enables HRM
to carry on the process of job replacement through the model after employees quitting from the
jobs. Different types of HRM practices plays the major role for sustaining effective coordination
between all levels of department for long time. That means effective utilization of HRM
practices is highly important for gaining the trust of lower level workers for long duration
(Chaudhary, 2020). The examples of HRM practices are maintaining positive work culture,
employee development and training provides effective rewards and recognition and others. Due
to considering all these elements the management of TESCO is able to maintain their goodwill or
reputation in market and in minds of customers for long duration. With help of various HRM
practices organization is able to identify the real problems of their workers quickly. HRM
practices also assist the firm for enhancing flexibility in the business functions and the work of
employee's. Due to keeping flexibility employees in organization is able to accomplish their job
roles and responsibilities in systematic and attractive manner. It leads to increase the overall
performance and positive output of company at large scale within low time.

D1 Critically evaluate the weaknesses and strengths of HRM in relation to creating sustainable
organization performance and achieving business objectives
According to above analysis it is understood that HRM is highly responsible for
maintaining sustainable growth of organization in long run. Due to sustainable growth of
organization management is able to able to deliver best quality products and services to
consumers for long time. With help of effective HRM organization is able to analyse the strength
and weakness of each and every employee effectively (Garg and et. al., 2021). With help of
analysing their strength and weakness effectively management of TESCO is able to facilitate
strong solutions to them. In this way the resources of the organization is utilized in effective
manner. Moreover, from the above information, maintaining friendly work atmosphere is a
suitable and effective technique for organization.
Strenght - With help of this this strategy organization easily understand the needs and
requirements of the employee's with in low time. Then according to that resources are facilitated
to them for accomplishing their task in systematic and attractive way. Due to keeping positive
work environment within organization the decisions of HRM is easily stabled for long duration
(Kim and Shin, 2019). Due to this the strong positive communication is effectively sustained
between employee and employer for long time.
Weakness - Most of the employees who work in a multinational company think that their
manager is difficult to understand, but the actual truth is that being an HR manager is not that
easy job as it appears.Working in a company as a human resource manager can be the most
responsible job, but this human resource management comes with a greater price.Similarly,
being an HR manager, he or she expects certain level work recognition. Most of the time the
human resource manager lacks in their recognition value.
PART B
TASK 2
P4 Internal and external factors that affect the HRM decision making to support organizational
development
Impact of External Environment Factors

 Impacts of changing technology: In aspect of effective utilization of technology it is
also the one of the important factors which is responsible for creating impact on the
decisions of HRM. In today's time technology plays the crucial role for running the
various activities of organization and services in fast manner (Gohar, Rady and Zaki,
2019). The other advantage is that due to using technology firm is able to deliver or
produce their best quality products according to the desires and needs of the users. In
context to TESCO, the HR department has decided to adapt various types of advanced
technology effectively such as artificial intelligence etc. Due to using these types of
technology employees of organization are able to develop strong coordination with the
higher authority and their clients for long time. Due to the use of different technologies
company easily run their HRM functions in fast manner.
 Impacts of Legal/regulatory frameworks: In aspect of government rules and regulations
this also impacts the decisions of HRM externally. Legal/regulatory frameworks affects
HRM decisions in the form of compensating, training, hiring and even disciplining it's
employee's which could be results in the sanctions against organization or even lawsuits
filed by workers, customers, vendors and workers perspective. Due to this, it is essential
for of TESCO that they must follow the rules and regulations of UK government and
other countries effectively. Due to legal/regulatory obligations it has become difficult to
follow international rules and regulations the legal threat in their business activities are
highly decreased. In this way the goodwill of organization are easily sustained at
maximum level in market for long time. Therefore, it is needed for the HRM to
understand and imply the rules and regulations are highly important within organization
for adapting to Legal/regulatory frameworks throughout the organisation.
The impacts of internal environmental factors on HRM Activities Impact of learning and development: The other important thing for impacting the HRM
decision is that for increasing the level of growth organisation need to provide proper
guidance and training to their employees. In aspect of availability of talented workforce,
the major role of human resource management is to manage adequate level of staffing
with help of work force planning. In context to TESCO, it is necessary for HR
management that they must assign work to employees according to their specialization

and field. Due to using these strategies the productivity and work efficiency of the
talented workforce are effectively sustained for long time. In this way the management of
TESCO did not lose their talented employees for long time (Jashari and Kutllovci, 2020).
 Employee motivation – IT can be explained as the process of influencing the behaviour
of an individual to take initiatives to work by themselves to provide positive output
towards common objective. Employee motivation is also a very important point for
running the activities of organization in smooth manner. With help of following this
concept the management of TESCO is able to identify the strength and weakness of the
employee's quickly in friendly manner. Due to keeping friendly work culture the loyalty
of employees is highly increased towards company for long time.
M4 Discuss the key internal and external factors that affect HRM decision making, utilizing
relevant organizational examples to illustrate how they support organizational development
From the analysis of above data, it is understood that the decisions of HRM plays the
crucial role for run the activities of organization in systematically and in right direction. Due to
run the activities of company in right direction management is able to enhance their revenue or
profit margin at maximum level. The factors which are responsible for effecting the HRM
decisions are level of growth, effective utilization of technology, government regulations and
rules and so on. Due to the effectiveness of this factor management of TESCO need to highly
focus on the safety and security of their employee's in the workplace area. Because for sustaining
the goodwill and productivity of organization effectively lower level employees played major
role in the activities of business. Without talented employees firm did not able to run their
functions in systematic order which leads to decrease their productivity in market for long time.
The other important point is that management also facilitate decent wage and recognition to their
employee's which leads to increase their motivation level at maximum level. In this way positive
relationship between consumer and employees or employer and employee are effectively
maintained.
D2 Evaluate the key factors affecting HRM decision making to make valid recommendations
The factors which affect the HRM decisions are level of growth, effective utilization of
technology, government regulations and rules and so on. Due to the effectiveness of this factor
management of TESCO need to highly focus on the safety and security of their employee's in the

workplace area (Kim and Shin, 2019). Without the utilization of skilled workers company is not
able to deliver quality goods and services to users as per their needs and requirements for long
time. For sustaining the business it can be recommended Tesco can adopt various strategies for
decision making and informed choices. This can be done by involving the workforce into the
decision making activities when adequate time is there to make discussions to implement better
decisions within the organisation. Moreover, managerial at Tesco could make direct decisions
when they are running out of time so that organisation has enough support to sustain their
business for longer time. It could also be recommended that Tesco can implement strategic
thinking, informed choices and brainstorming to make strategic decisions that can help the
organisation to prosper.
P5 Apply HRM practices in a work-related context, using specific examples to demonstrate
improvement to sustainable organisational performance
HRM Practices plays a very important role in enhancing the performance of employees at
the workplace and provide greater chances of organisational growth. Human resource
professionals are responsible for many activities and the HRM practices such as training and
development, selection/recruitment, compensation/remuneration, employee engagement,
grievance redressal, etc. are very crucial to engage employees at the organisation.
Portfolio of Documents
Job description
TESCO
Designation Human Resource Manager
Aim of this job Here the main purpose of employee in this organization is to
enhancing their profit margin at maximum level in market. The other
purpose is to increasing the sales of company's product and services
in prescribed time by using different types of strategies and
techniques. With help of different techniques the selected employee
is responsible for fulfil and identify the requirements of customers in
time. Our organization will need highly energetic and passionate
candidate for this job role in the form of employee. The main role of
marketing manager is to develop strong communication network with