Report on HRM Strategies for Tesco's China Market Entry

This report provides a detailed analysis of Human Resource Management (HRM) strategies employed by Tesco for its expansion into the Chinese market. The report begins with an executive summary and table of contents, followed by an introduction outlining the context of Tesco's venture. The main body of the report addresses various aspects of HRM, including a PESTLE analysis of the business environment in China, examining political, economic, social, technological, legal, and environmental factors. It further analyzes organizational, national, and cultural issues influencing HRM strategies, along with the roles and responsibilities of HR departments. The report evaluates various HRM theories and models such as the Fombrun, Tichy and Devanna Model, Harvard Model, Guest Model, Warwick Model, Contingency Theory and Resources Based Theory. It also discusses recruitment and selection methods, assesses the effectiveness of HRM strategies, and compares different global approaches to HRM. The report critically evaluates relevant theories and evidence, analyzes the influence of national and cultural issues on rewards systems and performance management, and demonstrates required management skills. The conclusion summarizes the key findings and recommendations, supported by a comprehensive list of references.

HUMAN RESOURCES
MANAGEMENT

Executive Summary
In this report, it will be evaluate factors of business environment by using the PESTLE analysis
model, analysis organizational, national and cultures issues, different HR roles and
responsibilities. It will also evaluate the HRM theories and models, discuss methods recruitment
and selection and evaluate the effectiveness of HRM strategies in the organization. It will
analysis difference the approaches of HRM globally and critically evaluate theories and
evidence. It will also analysis national and cultures issues influences the rewards' system and
concept of performance management and demonstrate the different management skills in the
organisation.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
LO 1 ................................................................................................................................................1
Critically evaluating factors of business environment by using PESTLE analysis model.........1
Analyzing organization, national and cultures issues ................................................................2
Analyzing HR duties and responsibilities ..................................................................................3
LO 2 ................................................................................................................................................4
Evaluating HRM Theories and Models ......................................................................................4
Recruitment and selection Methods ...........................................................................................5
LO 3.................................................................................................................................................7
Evaluating the Effectiveness of HRM strategies .......................................................................7
LO 4.................................................................................................................................................8
Analyzing the differences in approaches to HRM Globally.......................................................8
LO 5.................................................................................................................................................9
Critically evaluating the Theory and Evidences ........................................................................9
LO 6 ..............................................................................................................................................10
Analyzing the national and cultures issues influence rewards system and concept of
performance management.........................................................................................................10
Demonstrate the management skills .........................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES ...............................................................................................................................1

INTRODUCTION
Human resource management is the process of planning and implementing the HR
policies and strategies for assessment and evaluation for achieving goals and objectives. The
function of HRM is recruitment and selection, training and development, rewards management,
performance management and employees involvement for implementing and managing the HR
strategies and policies. Therefore, for the present study Tesco will be take into action. Company
planning to expand business into new market of China. In this report, evaluating the international
business environment in host country using PESTLE analysis models. Study also Analysing the
issues that influence implementing of HRM strategies, duties and responsibilities of HR of parent
company(Alvesson, ed., 2016). It will evaluate HRM theories and models in relation to
economic drivers. Identify the methods of recruitment and selection using HRM theories. It will
evaluate effectiveness of HRM strategies in achieving the goals. It will analyse different
approaches and relationship between HRM and organisational performances. It will also analyse
theories of rewards system, its implications and concept of performance management, required
management skills for evaluating the HRM strategies for success in international business.
MAIN BODY
LO 1
Critically evaluating factors of business environment by using PESTLE analysis model
Tesco is the British multinational groceries and generals commodities retailers with
headquarters in England, UK. They are establishing a joint ventures in the China. Therefore, they
are evaluating international business environment adopting by PESTLE analysis.
PESTLE Analysis Model:
Political Factors : It is aspects of government policy which affects the business
operations and its growth. This factor includes changes in government rules and regulations,
government stability and trade freedom. These factors affects both positives and negatives
impact on company (Armstrong and Taylor, 2014). Bans and restriction of import and export,
complexity in standards and regulations, this indicate negative impact on business. There are
many issues and challenges which involves corruption, protection of intellectual property rights
and incompatibility affecting on Tesco who has established joint venture in China.
Economic Factors: This factor involves GDP rate, economic sustainability and high
inequality. The economic development and GDP rate are major impacts which effects China's
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economy. But past five years, GDP growth rate is increasing in the economy, so that they are
generating revenues. The availability of cheap labour is the source of competitive advantages
however increasing and rapid economic growth. This indicate negative impact on the business
operations (Beugelsdijk, Maseland and Van Hoorn, 2015).
Social Factors: Population growth, age distribution, social trends and cultures values are
involves in social factors. These challenges and issues are facing by Tesco who has established
joint ventures in China. There are many components such as consumers lifestyles, religion,
education, family size and social behaviour includes in social factors.
Technological Factors: The major challenges and issues which involves new production
technology, developing new products, changes in methods of working, facing by Tesco while
established joint venture in China. It is also helped to move from labour intensive economy to
innovation driven one (Boşcai, 2017).
Legal Factors: There are many legal laws and regulations relating to employment ,
labour standards, employees benefits, disputes and other relevant issues are including in legal
factors. These issues and challenges are facing by Tesco while established joint venture in China.
Environment Factors: China has impacted on natural environment such as climate
changes, industrial waste, water and air pollution. The government is taking initiatives to address
the concern environment. These factors affects on economic development of China.
Analysing organisation, national and cultures issues
The development and implementation Of HRM strategies that influencing by national
and cultures issues (Bratton and Gold, 2017).
National and Cultures Issues:
Cultures is the collection of beliefs and traditions in business which affects behaviours,
values and attitudes of employees. The cultures of business are to creating challenges of HR
department. This challenges mus affects HR policies and its development. There are many
national issues for implementing and developing HRM strategies in business which are using for
establishing joint venture in China facing by Tesco.
Employees Relationship: The cultures of business affecting interaction and relation
between employees. Companies are maintaining safe and healthy environment in the workplace.
HR department is making policies and strategies on the basis of standards relating to structures
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of business . The potential problem of employees relationships such as lack of communication
and behaviours of employees (Brewster and Hegewisch, eds., 2017).
Communication: The lack of communication, behavioural and interpersonal relation
which involves in cultures issues. If employee is not well communicating for reporting problems
of HR, so that HR department is establishing various channels of communication. This directly
effects on HRM strategies development and implementation.
Hiring Decision: For hiring of employees, HR policies and strategies are adjusting and
raising standards to accommodate for local cultures, because there are different candidates are
applying for jobs vacancies, so that it is difficult for HR recruiters for taking the hiring decisions.
Competitors: Tesco is multinational retail industry, there are many competitors such as
ASDA, Sainsbury etc. Therefore, challenges and issues like competitors pricing, discount rates,
innovations which affects business operations (Chatterton and et.al., 2015).
Analysing HR duties and responsibilities
HR is playing many roles and taking responsibilities for implementing and developing of
HR strategies and policies.
Recruitment and Selection: It is major responsibilities and duties of HR planning and
implementing the strategies and guidelines for recruiting and selecting the suitable candidates for
requirement of job descriptions. It is necessary for creating the opportunities for new peoples for
developing career, talents and achieving the goals.
Training and Development: HR is responsible for giving training and development of
employees for better working in company (Ekuma and Akobo, 2015). They are conducting
various training and development programs and adopting many methods like on the job and off
the job training. This helps in employee motivations, improvement of performance and retention
of employees.
Rewards Management: For employees better performance, HR is giving different types
of rewards such as bonuses, profits sharing and other incentives managed by HR. It helps for
better working and achieving the goals. It helps to facing the competition and achieving the
targets. It is the policy and strategy of HRM.
Performance Management: It is another policy and strategy managing and
implementing by HR manager. It is system of management which are using for analysing and
evaluating the employees' performance in the workplace. It is responsibilities and duties for
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managing performance and giving reviews or feedbacks for all employees in the workplace. It
helps for employees to achieving targets and goals of individual's as well as organisation
(Ekwoaba, Ikeije and Ufoma, 2015).
Resolving Conflicts: It is major responsibility to resolving the conflicts and difficult
views of different peoples in the workplace. HR is to identifying the issues and challenges
relating employees, activities and other term. Therefore, they are planning and resolving the
issues and conflicts adopting various techniques and methods. It is difficult to resolving any
critical situations and making decision.
Employees Relations: It is responsibility to maintaining and developing the relationship
with employees. It involves goods interpersonal relation and build up connection with
employees, so that employees are feeling comfortably for sharing any difficulties to their
managers. It is important for team building and development helps in good public image within
organization. It is the role is to establishing trust and confidence of employees for facing
difficulties and situations (Evans, 2015).
Maintaining Work Cultures: It is the duty for maintaining healthy and safe work
environment and ensuring the level of comfort for employees in company. They should maintain
environment and cultures where employees are easily and freely communicate, easily sharing
their problems and giving their opinions. They should make efforts to increased employees
engagement and gives higher job satisfaction.
LO 2
Evaluating HRM Theories and Models
Tesco is establishing their business in China, so that they are adopting various theories
and models for implementing and developing their HR strategies and policies.
Fombrun, Tichy and Devanna Model: This is first model emphasizes some function
and their interrelatedness, such as selection, appraisal, development and rewards. These
components of HRM and are contributing to effectiveness of organization. This model adopting
for only focusing on function of HRM and avoiding all environment contingency factors that
impacts HR function (Greenspan, 2015).
Harvard Model: This model involves critical components of HRM such as stakeholder
interest, HRM policy choices, situational factors, long term consequences, HR outcomes and
feedback loop through the outputs flow directly into organisation and stakeholders. This model
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adopt by company for implementing and developing HRM strategies for establish joint venture
in the China (Kaufman, 2016).
Guest Model: This model was composed by David Guest in 1997 and demand of much
superior to other models. In this model includes components such as HR strategy, HR outcomes,
behavioural outcomes, performance results and financial consequences. In the behavioural
outcomes involves quality, employees commitment and flexibility. The financial result depends
on performance of employees which turns into employees behaviour. This models justify inputs
and outcomes of HRM, which helps to achieving the organisation goals and objectives.
Warwick Model: There are elements involves in model such as micro environment
forces, business strategy content and HRM contents. It is important of models to identifying and
classifying environmental which influences on HRM (Landy and Conte, 2016). It is function of
connection between external and internal factors which explores and adapts to changes in HRM.
This model help to achieving goals of organization and individual's as well.
Contingency Theory: This theory involves relationship between HRM variables and
performance indicator. This theory indicates aims, policies and strategies and roles at HR
departments. Therefore, adopting this theory helps to implement and develop in HR strategies for
established joint venture by Tesco in China. This theory helps to identify the aims, objective of
organization as well as individual's and also helps to achieve them (Patterson and et.al., 2016).
Resources Based Theory: This theory related to strategic value and issues workforce
learning. It accepts that strategic capability on depends upon the resources' capacity. This theory
helps to developing human resources for achieve competitive advantages for learning
organization practices and through implementing strategy for identifying the current competitors.
The principle of this theory is to understanding trends of knowledge, learning and organization.
This theory helps to developing and utilizing of human resources for achieving both
organizational and individual's objectives and goals.
Recruitment and selection Methods
The company is using and adopting recruitment and selection methods for suitable
candidate of job vacancies in their organisation (Smetana, Rogers and Welfel, 2017).
Rodger's Seven Point Plan:
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Through this plan, HR is selecting the candidates according to seven points that is
physical composition, achievements, general intelligence, special aptitudes, interests, disposition
and conditions.
Physical composition: The company is identifying and selecting candidates according to
their health, appearance, way of talking and manners. These elements help to recruiting and
selecting methods for suitable candidates (Smith and Tsutsumi, 2016).
Achievements: It includes education, qualifications and experiences. Through these
elements, HR is recruiting and selecting of suitable candidate for the job vacancies. It helps to
knowing about candidate's experience, academic and professional qualifications, achievements
and other activities (Roger's Five Point Plan., 2016).
General Intelligence: It includes ability to define, problems solving and confidence.
From these elements, HR is identifying the candidate's confidence for solving problems and
conflicts in the workplace. Therefore, they are selecting the appropriate candidate for job
positions.
Special Aptitudes: The HR is recruiting and selecting of suitable candidate for job
position according to their skills, attributes and competencies related to job descriptions. For
identify the skills and competencies, they are taking the ability, aptitude and capability tests of
candidate (Stanujkic, Djordjevic and Karabasevic, 2015).
Interests: It includes work related or leisure time movement that may have bearing on
the job. These elements are helping to HR for recruiting and selecting the candidate according to
their fields.
Dispositions: It includes acceptability which influence self reliance, responsibility and
resoluteness. Through these elements HR is to determining their skills and abilities and giving
responsibilities for according job descriptions.
Conditions: It includes any special demands like travels and ability to unsocial work.
According to these conditions, HR is selecting the candidates in their company.
Fraser's Fivefold Grading:
In this system, five folds are including that qualifications and experience, motivations,
adjustments and innovating abilities and aptitudes Trullen and et.al., 2016).
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Motivation: The HR manager is motivating of employees for improving their
performance. For employees motivation, HR is adopting various methods and theories. This
element help to achieving the individual's and organisation goals.
Qualifications and Experience: HR manager is recruiting and selecting the candidates
according to their qualifications, experience and achievements. It helps for candidate for
achieving goals and developing their personal growth (Visser and Tolhurst, 2017).
Adjustments: It includes emotional stability, ability to facing problems and conflicts ,
ability to standing up stress. Through these elements, HR manager is giving grading for selecting
candidate in the workplace.
Ability and Aptitude: HR is selecting of candidate according to their learning aptitude
and quickness of understanding of activities and tasks related to job positions.
LO 3
Evaluating the Effectiveness of HRM strategies
The company is adopting various techniques, implementing and developing their
strategies for helping to make effective strategies and achieving the goals and objectives of
organization (Voegtlin and Greenwood, 2016).
Productivity of Employees: It is the beneficial for effectiveness of HRM strategies by
creating detailed job descriptions for each positions. It helps to determining of outcomes which
affects on increasing productivity of employees and achieving organisation goals. HR manager
should ensured for improving quality, working flexibility and commitment of employees.
Quality of New Hiring: For measuring the effectiveness of HRM strategies, HR
manager is determining the quality of new hiring in the workplace. They are creating and
deciding of detailed job description for each job positions. The HR manager needs to deciding of
job description, interviews techniques and compensation packages. They are ensuring of
improving quality of new hiring employees (Greenspan, 2015).
Retentions: Due to some reasons such as lack of communications, management and staff
disputes, poor training of employees etc. These elements affects the effectiveness of HRM
strategies. The HR manager should make efforts to improving training techniques,
communications skills, maintain relationship between management and staff. This indicate that
employees retentions is important for achieving organisation goals.
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Costs: For measuring the effectiveness of HR strategies is important to determining the
costs like training, hiring, compensation and management. These elements affect measuring of
HR strategies. Therefore, HR manager is ensuring and measuring the costs and budget.
Its concluded that effectiveness of HRM strategies and policies which helps for resolving
national and cultures issues. It helps to achieving the organisation goals and objectives. From
employees commitment, quality, flexibility and rewards system management in the workplaces
(Patterson and et.al., 2016).
LO 4
Analysing the differences in approaches to HRM Globally
For development of frame work in organization, there are many differences in approaches
which are using by HR departments.
Importance of Training:
Training is the most important part of HR department and company which helps to
develop framework and achieving the goals.
Improving employees performance: Training is important for improving the
employees' performance, improving confidence and understanding their responsibilities.
Therefore, HR team is adopting various types of training for developing employees' abilities,
skills and competencies which helps to changing standards and increasing competition level.
Increasing productivity: Training is important for increasing productivity, quality and
standards of employees and organization. It is helping for developing the frame works,
utilization of resources, improving relations between employees in organization (Smetana,
Rogers and Welfel, 2017).
Identify the Weakness: By giving the training, helps to identifying the weakness of
employees, abilities, capacities and knowledges for better performing in the workplace. It helps
to complete the tasks and achieving the targets. It creates to strengths for facing any critical
situations.
Types of Training:
There are two methods training such as on the job and off the job training. On the job
methods job rotations, coaching and other methods. Off the job includes case study, role play,
simulation etc (Trullen and et.al., 2016).
On the Job Training Methods :
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Job Rotations: This method involves shifting of one job to another for developing
knowledge and experiences from different job assignment. This method helps to understanding
the problems.
Job Instruction: This method helps to understanding the steps involves in tasks and
assign job. In the case of mistakes and problems, HR is to giving the instructions of employees
for completing the tasks (Visser and Tolhurst, 2017).
Coaching: From this method, manager is to giving the coaching of functions,
responsibilities and duties for better performing in the workplace.
Committee assignments: It helps to discussing the problems and improving team work.
This method is using on the job training of employees. This helps for developing skills and
abilities to better performance in the work place.
Off the Job Training Methods:
Case Study : This method is giving an opportunity to analysing the case and giving the
possible solutions in case study. It helps to enhancing analytical and critical knowledge of
employees (Visser and Tolhurst, 2017).
Simulation : It is method of creating the imaginary situations and asking of trainee to
acting on it. It is types of business games for developing the knowledge and skills relating to
business. This method to gives result of the business decision making.
Role Play: In these methods, manager is to creating situations and asking to acting on it.
It helps to creating opportunities for employees better performance and getting the rewards and
positive reviews in the workplace.
By analysing training and development strategies helps to identifying the differences in
approaches to HRM. Some times, HR is recruiting and selecting candidates in another nations
and giving the training (Trullen and et.al., 2016). Managers is to focusing on training of
expatriate for improving their behaviour and skills as compare to parent candidates. They are
managing and adopting different methods of training for parent candidate's and expatriate,
because parent's candidate's skills and knowledges for the working.
LO 5
Critically evaluating the Theory and Evidences
For evaluating the relationship between HRM and organizational performance by using
the theories of employees participation in HR practices.
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