HRM Practices and Organizational Profitability: A Tesco Case Study

This report examines the benefits of Human Resource Management (HRM) practices and their impact on organizational profitability. The report discusses various HRM practices, including compensation and rewards, training and development, and conflict resolution, and their role in enhancing employee performance and fostering positive employer-employee relations. It highlights how effective HRM strategies contribute to achieving business goals and objectives, using a case study of Tesco plc to illustrate these concepts. The report analyzes the effectiveness of different HRM practices in raising organizational profitability, emphasizing the importance of training and development in improving employee skills and competencies. Additionally, it explores the role of employee engagement and conflict resolution in maintaining operational efficiency and boosting productivity. The report concludes by emphasizing the direct correlation between improved employee performance, organizational productivity, and profitability, ultimately aiding in the achievement of business goals.

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Huma
n
Resou
rce
Mana
geme

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nt

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Contents
Contents.................2
P3 Benefits of
different HRM
practices for the
employer and
employee in the
organization.......4
P4 Evaluate the
effectiveness of

4
different HRM
practices for
raising
organizational
profitability........9

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P3 Benefits of
different HRM
practices for
the employer
and employee
in the
organization
There are
various HRM

6
practices which
helps the
organization to build
effective employer
employee relation in
order to achieve
their business goals
& objectives. Some
of benefits are
discussed below:
Compensatio
n and rewards:

7
When employee
perform well in their
task then employer
provide the various
incentives to
motivate or
encourage them for
the further
improvement. These
HR practices help in
retaining employees
for the longer time

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and build effective
relation among the
employer and
employee (Ten
Brummelhuis and
Bakker, 2012).
Manager of Tesco
use this practices for
the effective relation
who helps the
organization to
achieve their

9
business goals &
objectives.
Training &
Development: With
the help of training
& development,
employer enhances
their employee’s
performance which
helps the
organization to
increase productivity

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as well as
profitability. Along
with this, it builds
the effective
employer and
employee relation
because manager
understands the
individual
requirement and
provides training for
the improvement.

11
P4 Evaluate the
effectiveness of
different HRM
practices for
raising
organizational
profitability
There are
various HRM
practices which help
in increasing

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organizational
profitability and
some of followed by
the Tesco plc which
is discussed below:
Training and
development: It is
required by the
organization to
enhance individual
skills and
competencies which