Analyzing HRM Strategies: Impact on Organizational Performance

This essay explores the pivotal role of Strategic Human Resource Management (SHRM) in aligning human capital with organizational objectives, using Tesco as a case study. It delves into the use of the balanced scorecard framework to measure and manage performance across financial, customer, internal processes, and organizational capacity dimensions. The essay analyzes how various HRM strategies, such as internal career ladders, performance appraisals, job security, and formal training systems, are linked to broader management strategies and contribute to enhanced organizational capabilities and performance. Ultimately, the essay concludes that effective SHRM is essential for retaining talent, fostering job satisfaction, and driving overall organizational success by ensuring employees are motivated, skilled, and aligned with the company's goals.

Strategic Human resource
management
TABLE OF CONTENT

Introduction......................................................................................................................................3
Main body........................................................................................................................................3
Role of strategic HRM and use of balance scorecard in strategic framework..........................3
Analyse how HRM strategies are related to wider management strategies and organizational
capabilities and performance....................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
Strategic human resource management is a process through which the management of the
company starts linking people with the development practices in order to fulfill the long term
goals and objectives of the company . It focuses on the long term issues of the company related
to the resources. It informs the company and the employees about other HR strategies such as
reward , awards and the performance reviews of employees (Anwar and et. al., 2020). Strategic
HRM is also known as people strategy as it is a framework that helps the company in managing
the process of hiring and developing the employees in a way which can help the company in
Achieving there goals and objectives. In context to Tesco , It is a British multinational
merchandise and retail store. The company was founded in the year 1919 by Jack Cohen and is
currently headquartered in United Kingdom. This report covers role of strategic HRM and the
use of balance scorecard in strategic framework. The report also covers the strategies which are
related to organizational performance and capabilities and wider management strategies.
Main body
Role of strategic HRM and use of balance scorecard in strategic framework.
The role of strategic HRM is to make sure that the company is having appropriate
workforce and the company is able to attract right employees on the right job. The human
resource is one of the most important resource for a company and it is important for the
organization to retain talented employees. The main aim of human resource management
department is to make sure that the employees of the company are having job satisfaction as in
that way the company will be able to retain talented employees (Kiai., 2019). HRM department
will make sure that the company is having competitors advantage in the market by recruiting
developing and retaining best talent of the market. High rate of employee turnover can be very
harmful for the performance as well as for the profits of the company as the recruitment and
selection process of the company includes high cost as well as efforts and time of the company.
The HR department of the company also deals read the contract to compliance and payroll of
employees in order to maintain a good relationship between employer and employee . It is
important for the HR department of the company to provide appropriate training to the
employees so that the employees can get to know about the work culture of the company and the
Performance that is expected from them.Talent management is one of the most important task in

companies nowadays . Talent management basically incorporates traditional aspect of human
resource such as on boarding performance management succession and recruiting etc . It ensures
that the employee of the company is having appropriate skill set and is able to do the tasks of the
company in a best possible manner (Jia and et. al., 2018, June). The human resource department
of the company make sure that the employee is getting appropriate training which can help them
in improving their performance . The HR department of the company make sure that they are
motivating their employees to contribute positively towards the task of the company show that
the company can achieve there goals and objectives in long term .
The balanced scorecard is a framework that helps the organization in planing and
performance management. The framework helps the company in aligning the day to day
activities of the company with the overall mission, vision and objectives of the company so that
appropriate measures can be taken as and when needed (What is the balanced scorecard? A
framework for organizational success, 2018). The framework is generally used by government
companies and non profit organization in order to analyse the degree up to which the company is
working according to the expectations and whether they will be able to obtain the desired results.
In order to successfully implement the balanced scorecard framework it is important for the
organization do you have necessary resources as it will help the company in getting desired
results and significant benefits from the framework . the framework helps the company in
analyzing the overall health of the company by analyzing four factors which are given below:
Financial: It refers to the financial health of the organization which will help the
company in there long term survival it includes funds that the company have as well as the
profits that the company is earning(Asadi and et. al., 2019). Revenue growth, return on equity,
operating income and other measures are included which can help in analyzing the interest to
owners. Finances are one of the most important resources of the company as without funds the
company will not be able to start any new task or will not be able to complete ongoing tasks. In
case of Tesco, the company provide emphasis on the allocation of the funds in between the
different departments of the company so that their will be no wastage of funds and the company
will also be able to create appropriate reserves for contingencies.
Customer: It refers to the analysis of customers perspective towards the products and
services of the company. It is important for the organization to provide best in class services to
their customers in order to have competitors advantage in the market. In order to retain the

customers of the company and to create a loyal customer base the company must make sure that
they are providing services beyond the expectations of the customers. The services of the
company must be able to fulfill the needs and demands of the customers. In case of Tesco, the
company make sure that they are continuously doing market research so that they will be able to
provide the services according to the needs and demands of the customers and according to the
trends of the market.
Internal process: It refers to the processes of the company which are helping then in
managing their internal task . It is important for the company to make sure that they are having
effective as well as efficient internal processes so that they will be able to achieve the goals and
objectives of the company in best possible manner (Zaid, Jaaron and Bon., 2018). The tasks of
the company will be completed with the help of internal processes of the company and if they are
not efficient them the company will not be able to complete the task with optimum efficiency. In
case of Tesco, The company make sure that they are managing their internal processes in a way
which will increase the productivity of employees and will also help the company introducing in
reducing the cost of production services that they are offering to their customers. Reduction in
cost an improvement in the performance of employees will help the company in achieving
competitors advantage in the market.
Organization capacity: It refers to the degree up to which the company can still improve
their performance. It analyse is the improvements needed in the organization which can help
them in achieving their goals and objectives efficiently. The capacity of the organization will we
determine by monitoring the culture, people, infrastructure and the resources that the company
have which can help them and will support them in completing the task. Measures that the
company can take in order to increase the capacity of the organization includes grater employee
satisfactions, training and education to employees, use of latest technology in the organization,
etc.
The analysis of all these factors will help the balance scorecard framework to analyse the actual
health of the company and the changes that are needed to be made by the organization in order to
improve their performance and profitability (Flynn and et. al., 2021). Traditionally the
framework was incorporated for the profit making companies in order to analyse their health but
after the success of the framework, government as well as not for profit organizations also started

using the framework in order to analyse that they are working in the correct direction and are
getting the desired results from the activities and tasks they are doing.
Analyse how HRM strategies are related to wider management strategies and organizational
capabilities and performance.
In order to enhance the capabilities and performance of an organization it is important for
the organization to implement some strategies which can provide job satisfaction to their
employees. It will help the organization in retaining the employees that are talented and useful
for the organization. It is important for the human resource department of the company to create
an environment which is positive and will help the employees in improving their productivity as
well as their performance (Musi, Mukulu and Oloko., 2020). In order to achieve the goals and
objectives of the company it is important to implement strategies which can make sure that the
employees of the company are working effectively and efficiently. In case of Tesco, the
company make sure that they are implementing strategies which are helping them in motivating
their employees and are also beneficial for the workings and operations of the company. Some of
the strategies are given below:
Internal career ladder: It refers to the opportunities that are provided by the internal
management of the company . It is observed that employees having greater opportunities in the
job role are likely to have job satisfaction and higher pay satisfaction. Employees who does not
get opportunities within the job roles are likely to find new job opportunities and are dissatisfied
with their current job role . Having an internal career ladder strategy in the organization shows
the level of commitment that the company is having towards their employees.
Performance appraisal: It refers to the award and rewards that are gained by the
employee on the basis of their performance. Performance appraisal helps the employees in
focusing on the formal goals an objective of the company (Chelladurai and Kerwin., 2018). It is
done on yearly basis in every organization and will help the company in making decisions about
the pay and appraisers of the employees. It is a great strategy to motivate employees and to
enhance their performance.
Employee job security: Job security is one of the most crucial aspect of retaining
employees in the organization. Job security is a major factor which helps the employees in
having job satisfaction. Job security highly affect the commitment of employee towards the

organization as well as their tasks. It has been observed it has been observed that job security is
even more important for employees than participation and pay satisfaction.
Formal Training system: It is extremely important for the organization to provide
appropriate training to their employees whether they have requisite skills or not. Every
organization have their own culture and environment which is new for employees an in order to
fit in the organization and to become a valuable asset for the company it is important for the
employee to get training (Aswathappa and Dash., 2020). Training plays an important role in the
development and growth of employees. In case of Tesco, the company realizes that the external
as well as the internal environment of the industry is dynamic and in order to cope with changing
environment , it is important for the company to provide appropriate training to their employees.
It not only motivate the employee but also helps the company in retaining talented employees.
Conclusion
From the above essay, it is concluded that strategic human resource management plays an
important role in the management of employees as well as workings and processes of the
company. It is important for the company to implement different strategies which can help them
in retaining their employees and in providing job satisfaction to their employees. The policies of
Strategic HRM also helps the company in analyzing their financial health.

References
Books and journals
Anwar and et. al., 2020. Green Human Resource Management for organisational citizenship
behaviour towards the environment and environmental performance on a university
campus. Journal of Cleaner Production, 256, p.120401.
Asadi and et. al., 2019. Designing a Meta Model for Strategic Human Resource Development
based on the CIIP Framework by Reviewing Previous Studies.
Aswathappa, K. and Dash, S., 2020. International Human Resource Management|. McGraw-Hill
Education.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
Flynn and et. al., 2021. Healthcare human resource management. Cengage Learning
Jia and et. al., 2018, June. A conceptual artificial intelligence application framework in human
resource management. In Proceedings of the International Conference on Electronic
Business (pp. 106-114).
Kiai, D., 2019. Sustainable Strategic Human Resource Management and Firm Performance: A
Study of Firms Listed At the Nairobi Securities Exchange (Doctoral dissertation, United
States International University-Africa).
Musi, Y.W., Mukulu, E. and Oloko, M., 2020. How Strategic Human Resource Planning
Influence Performance of Agricultural Research Institutes in Kenya. Journal of
Management and Sustainability, 9(1), pp.1-48.
Zaid, A.A., Jaaron, A.A. and Bon, A.T., 2018. The impact of green human resource management
and green supply chain management practices on sustainable performance: An empirical
study. Journal of cleaner production, 204, pp.965-979.
online
What is the balanced scorecard? A framework for organizational success, 2018 [online].
available through <https://www.cio.com/article/3298580/what-is-the-balanced-
scorecard-a-framework-for-organizational-success.html>