HRM Practices Impact on Tesco's Profit and Productivity

This report examines Human Resource Management (HRM) practices within Tesco, a UK-based multinational organization. The report begins by defining HRM and its importance in workforce planning and resourcing. It then delves into specific HRM practices, such as training and development, flexible working hours, and good employee relations, and analyzes their benefits for both employees and the employer. The report also explores practices that contribute to increased profit and productivity, including performance management systems and information sharing. The analysis highlights how these practices support employee performance, enhance organizational profitability, and contribute to Tesco's long-term growth and sustainability.

Human Resource
Management

Contents
INTRODUCTION............................................................................................................... 2
ACTIVITY 2......................................................................................................................... 2
P3 Benefits of Different HRM Practises In Tesco to Employer and
Employees .................................................................................................................... 2
P4. Different HRM practices that help an organisation to increase in
profit and productivity............................................................................................. 4
INTRODUCTION
Human Resource Management can be defined as the
process of recruiting, hiring, deploying and managing
employees in an organisation in order to ensure effective
working of the organisation to achieve their goals and
objectives. The company chosen for the completion of this
assignment is Tesco, which is UK based Multinational
Organisation headquartered in Hertfordshire, England. It was
founded in the year 1919and provides various products and
services to their customers in their supermarkets, hypermarkets,
superstores and convenience stores. This assignment will start
with making its focus on the purpose and functions of HRM
applicable to workforce planning and resourcing an
organisation.
ACTIVITY 2
P3 Benefits of Different HRM Practises in Tesco to Employer
and Employees
There are different rules and regulations that have been made
by the organisations in order to make the process and working
of their organisations in an efficient and effective way. Like all
other organisations Tesco has also implemented various policies
for the successful completion of the activities of the
organisation in time. The description is provided as under:
Training and Development: It refers to those HR Practises which
are conducted in an organisation for making improvement in the skills
and efficiencies of an employee as well as for the personal
development of an individual also.
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 So the benefit of this HR Practise for employees is related to
the increment in the efficiencies of employees and
development makes improvement in the behaviour and
nature of an individual. For the employer, the benefits are
related to the better workplace environment and reduction in
conflicts with development programs and with the help of
training, the efficiency of the organisation will increase and
will result in increase in the profits.
 Working Hour Flexibility: Under this HR Practise, the
employees in an organisation such as Tesco are provided
with flexible working hours as they can make their work in
and accordance with the time suitable for them. For the
employees it is beneficial as they will be motivated and
dedicated to work without any stress as they are made free
to work according to their suitability. This also helps in
increasing loyalty of customers towards the company. For
the employer also it is beneficial as the employer will be
able to retain their employees for a long period of time.
 Good Employee Relations: In this practise, good
relation with the employees are maintained by the creating
positive workplace environment in the organisation. For the
employees it is beneficial as they will be able to complete their
work without any disruption and will also help in increasing
the effectiveness of work performed by them. The employer
will also have benefit out of it as good employee relations will
help in fostering the growth rate of the organisation and hence
will impact positively on the profit and productivity of the
organisation.
In this way, the above provided HRM Practises helps
both the employees as well as the employer as well. With the
help of these HRM Practises, companies such as Tesco could
ensure long term growth and sustainability in the market over
their competitors

P4. Different HRM practices that help an organisation to
increase in profit and productivity
Human resources management is considered as most essential
part of an organization as it works toward overall management
of employees and providing training to them for ensuring
effective flow of operations so that productivity can be
enhanced. A HR manager is responsible for performing several
practices such as recruiting the right candidate, scheduling their
training & development program, ensuring positive working
environment etc. These all support employees in performing
well so that productivity of company will be enhanced that
further contribute toward increasing the organizational
profitability. The different practices that will help TESCO in
enhancing their productivity and profitability are mentioned
below: -
 Information sharing: - The proper circulation of
information is very essential for the growth and success
of an organization. This HRM practice support
employees in learning about the procedure they have to
follow while performing operations this will support in
gaining the knowledge about their responsibilities they
have toward organization. TESCO can adopt this
practice of HRM which ensure effective flow of
information in organisation which results in timely
completion of work. As information sharing will assist
employees in enhancing their knowledge as well as
skills by regularly interacting with others that further
results into enhancing the productivity and profitability
level.
Performance management system: - It is defined as the process
of evaluating employee performance during the preceding year
in order to decide where they are now and how far they have to
move for achieving goals. By performing this practices, HR
manager of TESCO become able to determine the performance
gap between the planned and actual performance of employees.
This in turn help in determining the requirement of training so
that gap can be removed which will further contribute toward
enhancing the productivity of employees that results into
profitability enhancement.
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