Human Capital and Leadership Management at Tesco: Report

This report provides a comprehensive analysis of human capital management and leadership within Tesco, a major retail organization. It begins with an introduction highlighting the significance of human capital in enhancing organizational performance and profitability. The literature review explores various relevant HRM models, including the Fombrun, Harvard, and Guest models, evaluating their strengths and weaknesses, and assessing their applicability to Tesco's context. The report then delves into an evaluation of Tesco's HR functions, encompassing managerial and operative aspects such as planning, organizing, staffing, directing, and controlling. It also examines recruitment, selection, and training and development processes. Furthermore, the report critically assesses HRM software programs and concludes with a discussion of the characteristics of effective leaders. The report provides insights into strategic HRM approaches and their impact on Tesco's overall success.

MANAGING HUMAN
CAPITAL AND
LEADERSHIP

Table of Contents
INTRODUCTION ..........................................................................................................................3
LITERATURE REVIEW ...............................................................................................................3
Relevant HRM Models and approach of company to manage its Human resource...............3
TASK 2............................................................................................................................................5
Critically evaluating the organisation’s HR functions ..........................................................5
TASK 3..........................................................................................................................................10
Critical evaluation of HRM software programs...................................................................10
TASK 4..........................................................................................................................................11
Characteristics of effective leaders.......................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Managing Human capital in the organisation assist in increasing the performance and
profitability of the firm. The Human resource management assist in competing more effectively
in the market. In this assignment, Tesco will be considered which is involved in retail sector .
The assignment will include the information regarding Human resource management model and
also the approach which is being followed by the organisation in order to manage its human
resources. Moreover, it will provide understanding of the HR function. It will also include the
information regarding HRM software programs which are available off the shelf. Furthermore, it
will include the characteristics of effective leaders.
LITERATURE REVIEW
Relevant HRM Models and approach of company to manage its Human resource
According to the views of (Chen and et.al., 2016), the human resource management
model consists of the HR activities which assist in managing the workforce of the organisation
due to which the firm's objectives are achieved effectively and efficiently. It assists in
identifying the different factors related to the firm which consist of situational factors,
stakeholders etc. The Fombrun, Tichy and Devanna Model of HRM it is based on the four
functions that include selection, appraisal, development and rewards. These functions of HR
assist in achieving the goals and objectives of the firm. On the Contrary (Mayo, 2016) stated
that, The Fombrun model is not effective because it does not consider the environmental and
contingency factors. Tesco with the help of Fombrun Model will be able to perform its HRM
activities on the basis of which it will be able to manage its workforce. By using this Model
Tesco will be able to identify the different factors which affect the management of the human
resources.
In the views of (chuckert and et.al., 2018), The another HRM Model is Harvard Model
which consist of six components that include stakeholders interests, situational factors, HRM
policies, HRM outcome and long-term consequences. As per the Harvard Model, the situational
factors consist of workforce characteristic, business strategy, labour market etc. However, there
is another model of HRM which is known as the guest model which claims to be more effective
and superior than the other models of Human resource management. As per this Model, there are
various strategies which are being formulated by the HR manager in order to achieve certain
goals of the firm. The outcome consists of behavioural, performance, financial rewards etc. The

Guest model consist of the six components which include HR strategy, HR practices, HR
outcomes, behavioural, performance result and financial consequences. The claim as per the
Guest model which is that it is superior than the other models of Human resource management is
partially justified. The management of the people in the organisation is so complex which cannot
be captured by any model including the Guest model of Human resource management. Tesco
by using the Guest model for human resource management will be able to identify the strategies,
policies and other component which can helps the firm in managing its human resource.
As per the views of (Noe and et.al., 2017), there is another model of Human resource
management which Warwick model is. There are five elements as per this model that consist of
Outer context, inner context, business strategy content, HRM context and HRM content. The
benefit of this model is that it determines the environmental influences on human resource
management. It assists in identifying the relationship between external and environmental factors
and identify the reason how human resource management is able to adapts the changes. The
Human resource management models are based on the activities which are being performed by
the Human resource manager in order to achieve the set target and objectives of the organisation.
The Human resource management of Tesco with the help of Warwick model will be able to
understand the environmental factors which have their impact on the human resource
management in their company.
As per the views of (Manuti and De Palma, 2016), Human resource management model
assist in performing the HR activities in the effective and efficient manner in order to achieve the
goals and objectives of the firm. The Harvard Model include the stakeholders interest. The
stakeholders of the Tesco consist of management, employees, shareholders etc. The situational
factors influence their interest. It consists of workforce characteristics, unions etc. The situational
factors and the stakeholder interest influence the HRM policies. The core activities which are
being included in this consist of recruiting, training and reward system.
(Leroy and et.al., 2018) sought to analyse the fact that, human resource management has
various different approaches like hard HRM and soft HRM. Soft human resource management is
an effective approach which focuses on effectively treating the employees. A strategic approach
to the management focuses on formalizing the plan, objectives and activities of the Tesco plc.
Which mainly focuses on developing the strategic plan and take necessary decision. (Chen and
et.al., 2016) investigated and established the fact that, hard approach to the management focuses

on controlling the resources of the company and staff management to achieve the highest profit
and attain competitive advantage position for Tesco plc. It is an effective HRM approach which
focuses on controlling the cost.
TASK 2
Critically evaluating the organisation’s HR functions
(Leroy and et.al., 2018) sought to analyse the fact that, Human resource management is
an integral part of the Tesco plc. It helps in gaining competitive advantage to the company which
helps it in reaching to long term sustainable growth and development of the company. Effective
human resource functions helps in maximizing employee performance. (Cascio, 2015) sought to
determine the fact that, Human resource management functions are mainly classified into
managerial functions which includes planning, organizing, staffing, directing, controlling and
operative functions which mainly includes recruitment, selection, training and development, job
analysis, performance appraisal, employee relation, personal records, salary administration,
maintenance and labour relations. (Human Resource Management & Its Core Functions:
Managerial & Operative, 2016)
(Baškarada and Watson, 2017) sought to analyse the fact that, human resource
management focus on formulating a plan which helps in attaining organizational goals and
objective effectively and efficiently in the cost efficient and timely manner. Human resource
management focus on analysing and evaluating the current and future needs of the Tesco plc. for
smooth functioning in all the departments. (Chen and et.al., 2016) argued that, planning means
human resource management focus on laying down the policies and procedures to attain
common goals of the organization. It has been recommended that, HRM must focus on
determining personnel programmes which helps in anticipating vacancies, job description, source
of recruitment, planning of any shortfall and excess of various categories and activities in human
resource.
(Adamsen and Swailes, 2018) sought to determine the fact that, organizing is an effective
process which helps human resource management in establishing objectives and developing
plans to carry out various activities and operations of the Tesco plc. It has been recommended
that, HRM must focus on delegating the work and assign task to individuals who has the

capability and skills to perform the task. It also focus on coordination and synchronization of
activities within various different departments of the organization.
(chuckert and et.al., 2018) investigated and established the fact that, directing is an
important function of HRM which mainly focus on directing each individual to function in a
coordinated manner in the same direction without creating any chaos. HRM focus on tapping the
maximum out of the each individual through constant motivation and encouragement to attain
common goal of the Tesco plc. It has been recommended that, HRM must focus on motivating
employees through proper career planning, encouragement, employee recognition, salary
administration, developing interpersonal relationship between employer and employee, welfare
of employees, promotion, safety requirements, etc.
(Adamsen and Swailes, 2018) investigated that, human resource management perform
another managerial functions i.e., controlling. HRM focuses on monitoring and controlling all
the activities of the employees to evaluate whether everything is going in accordance with the
plan and also take necessary measures and solutions in case of any deviation. It has been
recommended that, HRM must focus on controlling the activities through performance appraisal,
critical evaluation of the personnel records personal audit, etc. to reach goals and objectives
effectively.
(Chen and et.al., 2016) sought to analyse the fact that, recruitment is an effective process
where human resource management focuses on attracting large number of employees with
desired skills and knowledge who best fit the job. (Leroy and et.al., 2018) argued that,
recruitment process mainly consists of planning, strategy development, searching, screening,
evaluation and controlling. It is an effective process to identify the job vacancy and attracting
large pool of candidates to apply for the vacancy. Recruitment is an effective process which
helps in reaching large number of candidates by using effective tools and methods. (Greer,
Lusch and Hitt, 2017) investigated that, Recruitment can be done through employer branding,
publication on newspaper and brochures, internal recruitment, events, promotion, internships,
employee referral, database, online career websites, etc. helps in attracting large number of
customers across the globe which leads to higher operational efficiency, performance and
productivity of the employees and Tesco plc (Chen and et.al., 2016) sought to analyse the fact
that, selection is the most important function of the human resource management which focus on

selecting the right candidates for the right job at the right place who have desired skills and
knowledge to perform effectively to carry out the job. (Cascio, 2015) argued that, recruitment
and selection is one of the most important function of HRM which leads to higher generation of
revenue and also leads to higher profit margins for the Tesco plc. Selection is an effective
process which focus on selecting the right candidate who best fits the job from large number of
applicants. In addition to this, (Snell, Bohlander and Morris, 2015) argued that, recruitment is
said to be a positive process because it motivates people to apply for a job. On the contrary,
selection is a negative process because it rejects the candidates and choose the best out of all. It
has been sought to determine the fact and recommended that, recruitment can be more efficient
by improvising the pool of candidates and majorly focus on performance based hiring for more
effective recruitment and selection process. Tesco plc. must focus on using appropriate digital
technology tools and website which helps in attracting right candidate for the job from across the
globe in the most cost efficient manner.
(Adamsen and Swailes, 2018) sought to determine the fact that, training and development is an
effective process which focus on delivering the best training programmes, seminars and
induction programmes that eventually helps employees in building effective skills and
knowledge to deliver the best and perform job effectively. It helps employees to learn new skills
which prepare them for high level responsibilities (HRM Functions: 7 Major Functions of HRM
(With Diagram), 2019). It helps in enhancing the skills and also helps employees to perform
competitively which leads to higher results and outcomes. (Rothwell, Hohne and King, 2018)
argued that, training and development is an effective process which mainly focus on
improvising the quality and performance of each individual which leads to higher operational
efficiency, performance and standards for the Tesco plc. It has been sought to determine the fact
and recommended that, training and development of employees can be improved by effectively
aligning training with organization goals and objectives which leads to higher efficiency,
performance and productivity of the employees. On the contrary, (Cascio, 2015) argued and
established the fact, effective innovation and brainstorming activity helps in increasing the
thinking capability and skills of the employees. Tesco plc. must focus on giving training to the
programmes according to their job profile to enhance the skills. The company must focus on
effectively communicating and avoid mass feedback. It must engage in effective training and
development programmes like technology based learning, simulators, on the job training, off the

job training, lectures, group discussion, tutorials, role playing, coaching, mentoring, management
games, brainstorming activity, seminars, induction programmes, etc. helps in enhancing the
skills and knowledge by boosting up the performance and productivity of the Tesco plc (7 Key
Steps for Better Training and Development Programs, 2016).
(Rothwell, Hohne and King, 2018) sought to determine the fact that, performance
appraisal is an important function for human resource management which will enhance the
performance and job satisfaction of the employee. It is critically evaluated by (Leroy and et.al.,
2018), that performance appraisal is an effective practice as it helps in critically evaluating and
determining the performance of the employee. It also helps in effectively determining the
employee's achievement, growth and skills which leads to higher sustainable growth and
development of the business. (Noe and et.al., 2017) investigated that, the key components of
performance appraisal are define expectations, measure and evaluate, provide necessary
feedback and record performance. Performance appraisal creates positive impact on the
employees through promotion, compensation, motivation, bonus, salary appraisal, recognition,
etc. This leads to employee development and also enhance the performance level with higher
satisfied employees. In addition to this, (Greer, Lusch and Hitt, 2017) critically evaluated the
fact and recommended that, performance appraisal can be done through self assessment, 360
degree feedback, promotion, peer assessment, negotiated appraisal, bonus, stake in the company,
promotion, etc. which helps in retaining prospective and productive employees (Human
Resource Management (HRM): Definition & Functions, 2019).
(Cascio, 2015) investigated that, human resource management focuses on maintaining
personnel records of the employees to effectively track their performance. HRM keeps records of
the employees in relation to the training, achievements, promotion, transfer, payroll, etc. it is
important function to keep the track of the employees and evaluate how effectively they have
contributed towards the growth and success of the company. HRM focuses on keeping
systematic records of the present and the past employees and their contribution to the company.
(chuckert and et.al., 2018) critically evaluated the fact that, human resource development
is an effective process which focus on improvising the quality and performance of the Tesco plc.
by effectively improvising the quality of individual effectiveness. Human resource development
focus on integrating individual to perform the task effectively by giving them proper training

which leads to higher career development and growth of individual and company. (Adamsen and
Swailes, 2018) argued that, Human resource development focus on developing skills and also
enhance the skills, knowledge and abilities of the individual for higher career growth and higher
productivity for the Tesco plc. In addition to this, human resource development focuses on
staffing, compensation, development, safety and health, employee relation, etc. which eventually
helps in reaching common goals and objectives of the company. Human resource development
focuses on building an effective organizational structure which leads to higher operational
efficiency and productivity for the Tesco plc. (Mayo, 2016) investigated that, Human resource
development helps in systematically planning the activities which helps in attainment of goals
and objectives which leads to higher growth prospects for Tesco plc.
(Snell, Bohlander and Morris, 2015) argued that, employee relation is an effective
process which focuses on maintaining relationship with the employers and employees of the
Tesco plc. for smooth functioning and synchronization of activities in various different
departments of the organization. (Budhwar, 2016) investigated that, human resource
management focus on maintaining positive relationship with the employees in the organization
which eventually helps in resolving the problem by finding necessary solution. It has been
recommended that, employee relations can be effectively managed by resolving the issue,
recognition, maintaining positive work environment and promoting work life balance which
leads to higher sustainable growth of the Tesco plc. It has been recommended that, human
resource management must focus on keeping each employees motivated and feel valued through
inspiration, reward and recognition. It also focus on offering career development programme and
promoting healthy work life balance. (Popescu, Comanescu and Sabie, 2016) critically
evaluated the fact that, Effective and strong employee relation leads to eliminating mistake and
encouraging new insights and ideas from employees to maintaining positive relation and leads to
long term sustainability growth and retention of productive employees in the organization (7
Ways to Improve Employee Relations Within Your Company. 2018). Another recommendation to
improve employee relation in the company is through communication company's goal and
objectives, assigning responsibilities according to the skills of individual and also by offering
career development opportunities.

TASK 3
Critical evaluation of HRM software programs
(Noe and et.al., 2017) sought to determine the fact that, human resource management
software helps in effectively connecting with human resource management (HRM) and
information technology by integrating various effective software which helps in revolutionising
the working of the Tesco plc. Human resource management focuses on integrating these HR
software into the organization which helps in reducing repetitive work. In addition to this,
(Renz,, 2016) argued that, human resource management enhance the performance and
productivity of the employees. It helps in eliminating time consuming activities through
automation of task. This eventually helps employees to focus on more productive task which
leads to higher sustainable growth and development of the business. (Arena and Uhl-Bien, 2016)
critically evaluated the fact that, integration of HR software into the organization helps in
managing payroll, keeping attendance records, recruitment on boarding, accessing employee
information, performance evaluation, benefits administration, employee scheduling, learning
management, tracking absenteeism, storing employee information, analytical decision making,
human resource and personnel security, etc. (Rothwell, Hohne and King, 2018) investigated that,
application and integration of human resource technology and software like Oracle HCM Cloud,
Infor CloudSuite HCM, Workday HCM, Criterion HCM, SuccessFactors HR, CoreHR HR
Solutions, Kronos, BambooHR, Ultimate Software’s, Gusto HR, iSolved, Vibe HCM, Synerion,
SmartRecruiters, Newton, Ascentis HRIS, Zoho people, SmartRecruiters, The BirdDogHR,
Epicor HCM into the organization which leads to higher operational performance of the Tesco
plc.
(Vidotto and et.al., 2017) investigated that, Bamboo HR is one of the efficient software
with effective tools and features like attendance tracking, performance evaluation, payroll
administration, etc. this software effectively handle all the basic activities of the human resource
management. It helps in effectively tracking and managing the activities of HRM automatically.
(Vasilaki and et.al., 2016) sought to determine the fact that, Zoho people is an effective software
which helps in effectively managing the employee operations and include all personal records of
the employee. It is difficult to integrate Zoho people in small scale business. Gusto HR is an
effective software for keeping payroll records of the employees. It focus on keeping necessary
records of the employees and their salary, promotion, etc. Effective mobile applications and

software helps in easy access and storage of the information effectively. It helps in reduction of
repetitive task and effective handle grievance with necessary and effective solutions to the
problem.
(Kellis and Ran, 2015) sought to determine the fact that, Tesco plc. focus on integrating
Oracle HCM Cloud into the organization which leads to higher sustainable growth and
development of the business. It helps in reducing tedious job of the employees. (Greer, Lusch
and Hitt, 2017) critically evaluated the fact that, Oracle HCM Cloud must focus on effectively
managing the human resource data and carry out day to day operations in an effective and
efficient manner. Integration of Oracle HCM Cloud software into the organization helps in
workforce management, workforce acquisition and workforce optimization. This is an effective
software which have various features like embedding analytics, real time reporting, interactive
dartboards. This software is flexible, trusted and comprehensive which leads to higher
operational efficiency and productivity for Tesco plc. Oracle HCM Cloud helps in tax
management, job evaluation, analytics, employee engagement, comprehensive learning
solutions, social networking tools, employment processes, social networking tools, applicant
tracking, compliance management, employee database, employee self service, employee portal,
time tracking, attendance tracking, recruitment management, employee onboard, activity
database, automatic notification, career succession, deductions management, collaboration tools,
mobile HR, goal management, talent management, expense reporting, business intelligence,
sourcing and recruiting, predictive analytics, performance management, security controls, etc.
integration of Oracle HCM Cloud helps Tesco plc (15 Popular HR Management Software
Solutions: Which One Is The Best?, 2019). In improvising the quality and productivity of the
business which leads to higher operational efficiency and standards.
TASK 4
Characteristics of effective leaders
(Mayo, 2016) sought to determine the fact that, leader is the most crucial part of the
organization who guides and motivates employees of the Tesco plc to reach common goals and
objectives effectively and efficiently. An effective leader focuses on directing, inspiring,
motivate and guide other employees to reach the desired task with higher efficiency and
productivity. Leader focuses on enhancing the strengths and talents of the individual to perform

the most and reach common goals of the company. This eventually leads to long term sustainable
growth and development of the Tesco plc. (Leroy and et.al., 2018) critically evaluated the fact
that, an effective leader must possess various qualities and characteristics such as commitment,
flexible, ambitious, courageous, critical thinking and analytical thinking ability, confident,
passionate, strong communication skills, collaborative, inter- personal skills, innovative,
commitment, adaptability, vision, optimism, decisiveness, confident, trustworthy, honest,
honourable, reliable, dependent, integrity, perseverance, awareness, influencing, credible,
prioritizing, team player, leadership skills, management skills, inspiring, empowering,
accountable and responsible, etc.
(Cascio, 2015) investigated that, leader has problem in managing the records and human
resource of the organization which leads to higher sustainable growth and development of the
business. Leader must deliver the best results and outputs and also focus on strategic decision
making which eventually leads to long term sustainable growth and development for Tesco plc.
They have problem in managing the interpersonal relationship of employees and must focus on
keeping the personnel records of the employees with utmost security, privacy and confidentiality
(11 Powerful Traits Of Successful Leaders, 2017).
(Manuti and De Palma, 2016) sought to determine the fact that, leader must focus on managing
such complexity and take necessary action to resolve the issues of the company with utmost
accuracy which leads to long term growth of the Tesco plc. Leader must focus on integration of
various human resource activities and operations of the organization. Leader focuses on reducing
wastage and eliminating unnecessary activities. An effective leader focuses on self managing all
the activities by which helps in resolving the issues of the organizations and eventually helps in
smooth functioning of the business.
(Noe and et.al., 2017) critically evaluated the fact that, there are various models of
leadership which h helps in smooth functioning of the business and attainment of common goals
and objectives (7 Leadership Qualities, Attributes & Characteristics Of Good Leaders, 2019).
Autocratic leadership is an effective models where leader of the organization is responsible to
take all the decision effectively and communicate the same to its subordinates. An autocratic
leader focuses on guiding and setting policies and procedures which helps in effectively
evaluating the procedure. Another leadership style is democratic leadership where all the

employees come together to share their viewpoints and ideas. A democratic leader focuses on
motivating and encouraging employees to actively participate in decision making for higher
results and outcomes. (Chen and et.al., 2016) investigated that, transformational leadership style
focuses on continuous change in the business structure according to the particular situation. This
type of leadership includes managerial power and focus on planning, directing, controlling and
monitoring the activities to reach the desired goals and objectives of the Tesco plc. (Baškarada
and Watson, 2017) critically evaluated the fact that, another model is team leadership style is an
effective model where leader take necessary decision and guide, motivate and direct each team
for higher results and outcomes.
CONCLUSION
From the above conducted study it has been summarized that, HRM models which
mainly consists of the HR activities which assist in managing the workforce of the Tesco plc.
Models like Guest model, Warwick model and Harvard Model. This study also concludes
human resource management functions which are mainly into managerial functions i.e.,
planning, organizing, staffing, directing, controlling and operative functions i.e., recruitment,
selection, job analysis, performance appraisal, etc. This study will further include, human
resource management software. Furthermore, this study highlights, characteristics of leaders and
the different models and styles of leadership.

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