Analysis of Strategic Human Resource Management at Tesco: A Report

This report provides an in-depth analysis of strategic human resource management (SHRM) at Tesco, a major UK retailer. It begins by exploring the crucial relationship between business strategy and human resource strategy, emphasizing how alignment enhances employee satisfaction and performance, thereby contributing to Tesco's strategic objectives. The report then delves into the evaluation, comparison, and contrast of SHRM theories and models, including the Fombrun model, which focuses on selection, reward, appraisal, and development, and the Guest model, which examines strategy, process, outcomes, behavior, performance, and financial results. Different approaches of SHRM, such as strategic perspectives of best fit/Contingency, best practice/Universalist, and Resource based view (RBV) are also discussed. The report examines HRM practices at Tesco, specifically performance management and reward systems, offering recommendations for improvements. Furthermore, the report investigates the nature and theoretical perspectives of employment relations, outlining the roles of actors within the employment relationship, and concludes with additional recommendations to optimize SHRM within Tesco.

STRATEGIC
MANAGEMENT HUMAN
RESOURCES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Relationship between business strategy and strategy of human resource...................................3
Evaluation, comparison and contrast of theories and models of SHRM.....................................4
Approaches of SHRM..................................................................................................................6
HRM practices.............................................................................................................................7
Recommendations........................................................................................................................8
TASK 2............................................................................................................................................8
Nature and theoretical perspectives of employment relations.....................................................8
Roles of actors within the employment relationship...................................................................9
Recommendations......................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management of human resource is very important function to an organisation
and business in market place. Basically, proper strategies are highly required for the department
of human resource for managing human resources in the workplace. Currently most venture in
market place tries to make their HRM strategies very productive to gain effective outcomes.
Strategic management of human resources contributes in a company for taking lots of effective
work from different employees and workforce (Durmaz and DÜŞÜN, 2016). This report
discusses strategic management of human resources in Tesco. Basically, Tesco is the highly
reputed retail brand of the United Kingdom, which currently has a huge workforce of 450,000
employees. Headquarter of company is situated in England, UK. This report is divided into two
parts, in which the first one discusses about effective relationship between strategy of business
and strategy of human resources. Some models also have been described in this report relating to
SHRM. The task two discusses about the implications of employment relations on an
organisation. Some appropriate recommendations also have given in this report for more
improving SHRM.
TASK 1
Relationship between business strategy and strategy of human resource
There is great relationship between business strategy and human resource strategy within
Tesco. Basically, business strategies of a business are known as techniques which companies
uses for gaining excellent outcomes. On the other side, human resource strategy is also a one of
major business strategies which businesses develop and uses for managing their human resources
in very productive manner. Both are completely interrelating with each other. Top-level
management of Tesco is completely aware about that, align HR strategy with business strategy
enable to a venture for improving the existing employee satisfaction and performance. Basically,
align HR strategy with business strategy helps to Tesco for achieving different strategic
objectives in market place.
In this dynamic and competitive world, each organisation wants to gain an effective
workforce for improve its business performance and productivity in market place (Egas, Saltos

and Toasa, 2019). In this situation, HRM strategy is one of the best business strategies to an
organisation for gaining huge competitive advantage in market place. Basically, HRM strategy
helps to business for gaining an effective and skilled workforce, so that when any business has
this type workforces then, it can simply take very productive work from its employees. At the
end, its performance and productivity are automatically increasing in market place. Top-level
management and HR manager of Tesco have to set a perfect alignment between its HRM and
strategy and other business strategies, because a functional department can’t achieve its final
target without coordinating with other departments. Existing strategy of HRM within Tesco is
completely well-developed, and this is the main reason that top-level management is this retail
company systematically managing is huge workforce.
Evaluation, comparison and contrast of theories and models of SHRM
Currently lots of theories and models of SHRM available in market place which helps to
companies and businesses for perfectly conducting different practices of human resource
management in workplace. The Fombrun and the guest etc. are some major models of strategic
human resource management. Currently the HR manager of Tesco is taking lots of advantages
through these all models (Rastegari, Hosseini and Ghayoor, 2020). Actual concepts and
implications of these models has been discussed below;
The Fombrun Model
This model of SHRM was developed by Fombrun in 1984 for providing the strategic
framework to human resource management of a company. This model enables to different
businesses for making their HRM practices very much effective. The Fombrun model of SHRM
includes four key elements which human resource manager at each organisation have to consider
for effectively managing human resources in workplace. All four elements of existing model
have been discussed below;
Selection: This is the first element within this model of SHRM. According to this element,
human resource management at Tesco have to take appropriate step towards conducting selection
practice. Basically, selection is one of major practices of human resource management for hiring
some effective, talented and skilled employees in own workplace. Selection practice of HR

department is very important to Tesco, because this is the practice that enables to business for
gain an effective workforce.
Reward: This is another key element within the model that enable to HR department of Tesco for
improving the performance of Tesco (Navarro, 2019). According to this element, human
resource department of company has always required to give reward its high performers in
workplace, because when any it will reward high performers, then all employees can feel valued
by the venture. At the end, employees will be motivated to work hard in workplace for achieving
all over target of Tesco in decided time period.
Appraisals: On the basis of this element, human resource management at business is responsible
to conduct appraisals also in daily operations for knowing who is working in excellent manner
within workplace and who is working with poor performance. Practice of appraisals is very
necessary to a company for maintaining an effectiveness within performance of different
employees.
Development: This is the last element within Fombrun model of strategic human resource
management. This element says that, HRM of each company is always responsible to provide
appropriate development sessions to employees, because these sessions enables to employees to
develop their undeveloped and weak skills and abilities. This is the main reason that, HR
manager of Tesco have to consider this element also in workplace.
The Guest Model
The Guest model is another major model of SHRM which was developed in year 1997 by
David Guest. This model basically aware businesses and individuals that how HR management is
different from personal management (Met and et.al., 2020). This is model includes six
dimensions of HRM which are something similar as the four elements of The Fombrun model.
These all six dimensions of human resource management has been discussed below;
Strategy: Strategy refers the technique of human resource management within an organisation.
Without developing and adopting proper strategies of HRM, no business can manage its human
resources or employees. Basically, strategy helps to HR manager to gain productive outcomes
through its daily practices.

Process: This dimension of HRM refers different practices which HR department of a company
conducts to provide an excellent workforce to the company. In this situation, recruiting,
selecting, training and appraisals are major practices of human resource management within
Tesco.
Outcomes: Outcomes represents the results of practices which was conducted by the human
resource management of company in order to manage all employees in proper manner. After
conducting different practices of HRM, the department can gain excellent quality, commitment
and flexibility in performance of employees in the form of outcomes.
Behaviour outcomes: Tesco has a workforce of 450,000 number of employees, so that these all
employees not come from the different background, so that each employee has its own
motivation, behaviour and perception (Dai, 2018). In this situation, sometimes some employees
have negative motivation, perception and behaviour which can negatively affect to the operations
of company. In this situation, HR department of company have to change behaviour, perception
and motivation of employees in positive way to gain very positive outcomes.
Performance outcomes: Performance outcomes also another one of dimensions within the Guest
model of SHRM. This dimension will aware HR department of different Tesco that how
excellent performance of employees plays an effective role in gaining very positive outcomes. In
this situation, HR department of company have to conduct different practices for improving
performance of various employees. For example; HR manager at Tesco can provide training and
development sessions to employees, it can use motivational theories for improving performance
of employees etc. At the end, the Tesco will be enabled to gain lots of high performers in the
workplace.
Financial outcomes: Financial outcomes are the results of all HRM practices and operations
which was conducted by the HR management Tesco (Kizielewicz and Wolska, 2017). The
business can achieve these all outcomes in the form of higher profit margins, revenue and
competitive advantage etc.
Both, the Fombrun and the Guest models are very productive models of SHRM which
completely enables to human resource management of Tesco for properly managing different

employees and people within workplace. Due to implementation of these models, currently HR
department is able to provide an effective workforce to Tesco.
Approaches of SHRM
Strategic perspectives of best fit/Contingency: This is a strategic approach of human resource
management, and also considered as the management theory which suggests an appropriate
management style to a manager. After adopting this approach of SHRM, the HR manager can
simply manage different employees in workplace with very effective manner.
Best practice/Universalist: Best practice or universalistic approach of SHRM is relating with the
viewpoint that here is the best practices HRM set, and when any HR manager of company adopt
this approach for workplace uses, then it will be able to gain very positive results (Callaghan,
2018). It provides the best framework for conducting different practices of SHRM in proper way.
Resource based view (RBV): Resource based view approach was mainly developed for the
purpose of gaining huge competitive advantage in market place by managing human resources
effectively. This approach mainly can encourage to top-level management of Tesco for
informing their employees about the actual value of learning, because learning attribute within
employees can develop their workability and productivity within workplace.
HRM practices
Currently HR department conducts different practices within Tesco’s business
environment. In this situation, performance management and reward are two major practices of
this human resource management in this venture, so that these both practices have been
evaluated below;
Performance management: The HR department always conducts this practice in order to
improve existing performance of employees. According to different business experts, when any
knows how to perfectly management the performance of employees in the workplace, then it can
simply gain lots of high performers within its daily operations (Yilmaz and Flouris, 2017). HR
department at Tesco basically applies motivational theories, provides training sessions etc. to
productively manage performance of all human resource or employees.

Reward: Reward is another major practice of HRM in Tesco that has enabled to this department
for highly motivating employees in workplace. Basically, HR department selects high performer
of company, and then give reward and appreciation them for their huge efforts under this HRM
practice. In this situation, when department give reward to high performing employees, then
these employees get motivated to work more hardly in the workplace in future. That’s why
reward is a very important practice of human resource department within Tesco.
Recommendations
Design and re-deign the performance management system is very necessary task to HR
manager within Tesco. Without managing performance of employees, this retail company can’t
lead the UK’s retail industry in the future, because currently human resources are the most
important assets to company (Trigeorgis and Reuer, 2017). This is the main reason that, the HR
manager is always required to design an effective system of performance management. In this
system, manager have to focus on considering that, who is high performer and who is low
performer in workplace. Then it needs to mentioned those all activities in its performance
management plan which it will be conducted in order to improve the performance of low
performers. After developing different skills and abilities of all employees, HR manager have to
re-design the system for knowing that, now most employees are properly performing in
workplace of not. This is very necessary to Tesco for always maintaining effectiveness in the
performance of all employees.
TASK 2
Nature and theoretical perspectives of employment relations
Employment relations term basically indicates the relationship between employees and
employer. Generally, when any company has effective employment relations, then it can simply
gain very productive work from its employees. No business can survive with poor employment
relations in this dynamic and competitive world. In this situation, most companies and businesses
within market tries to make their employment relations very effective. In most organisation, HR
department is the main responsible body for maintaining excellent employment relations (Ataş
and Kasımoğlu, 2018). Nowadays, employees also get aware about the role of effective
employment relationship, and that’s why they like to work in only that firms where existing

management has managed the effective relationship with different employees. According to
different business experts, when employer of venture builds great relationship with its
employees, then this factor indirectly improves the performance of all employees in workplace.
That’s why this is very important aspect for Tesco. There are some theories also available
relating to employment relations which has been discussed below;
Unitarism: This is the first theoretical perspective of employment relations which informs
business about that, conflicts between employer and employees always negatively affects to
employee relations. In this situation, HR manager at Tesco have to remove different conflicts
between employer and employees by considering different main reasons behind conflicts. For
example; HR department can avoid wrong recruitment, because this promotes conflicts in
workplace, HRM should avoid inappropriate promotions, it should improve communication
values also between employees and employer, because poor communication is a big reason
behind different workplace conflicts, etc. (Dimitryuk, 2016). By considering these all factors of
unitarism theory, the HR manager at Tesco can simply build great employment relationship.
Pluralism: Pluralism theory of employment relationship has projected different practices and
functions of trade management and trade unions. This perspective shows the value of collective
bargaining as well. According to this theory, communication is the way to different companies to
manage effectiveness within employee relations, because the management can simply solve any
conflict with employee by communicating with them. So that, HR manager at Tesco have to take
steps towards developing communication sills of employer and employees to gain to remove
conflicts. At the end, these skills will contribute in building great employment relationship as
well.
Marxism: Marxism theory will help to Tesco’s HR department for understanding the technique
of socioeconomic analysis which generally shows the class relations and social conflict
(Leiblein, Reuer and Zenger, 2018). This theoretical perspective claims that, a company can
simply gain better employers, if existing management of company aware them about the actual
implications of employee relations. In this situation, HR manager at Tesco have interact with
employer for informing them about the role of effective employee relations. This is really
necessary step to motivate employer for maintaining effective relationship with all employees.

These all are major theoretical perspectives of employee relations which can support
Tesco’s HR department to make an effective relationship between employers and employees.
This relationship will positively affect to performance of all employees.
Roles of actors within the employment relationship
There are different actors exists within Tesco’s business environment which plays an
excellent role in making great employment relationship, like; HRM, top-level management,
government, employees etc. These all actors contribute in developing effective employment
relations. Roles of these all actors has been discussed below;
HRM: Human resource management of Tesco plays an excellent role in building great relations
between employer and employees. HR manager of this retail company arranges different events,
like; meeting, parties and plays etc. In these events, human resource department invites
employees as well as employer, so that when both parties meet with each other in these events,
then employee relations will be automatically improved.
Top-level management: Company’s upper management also plays great role in building
effective relations, so that it contacts to HR team to use different strategies for making good
relations between employer and employees (Chen, Yueh and Liang, 2016). Basically, HR
department takes order through top-level management make excellent relations, and that’s why
role of top-level management is also very important.
Government: Currently the UK’s government has developed different laws, regulations and
standards which each business has to adhere in its workplace. So that, Tesco adheres all laws of
government in its business environment including employment law. Basically, employment law
is helpful to HR tam to build great relations between employers and employees. This law
provides basic rights to an employee in workplace, so this affects employees in positive way.
Employees: Employees also plays a very important role in order to build effective employee
relations. Basically, when employees fulfil their all obligations and duties in proper manner, then
their upper management and leaders will appreciate and reward them. This factor will improve
the relationship between employers and employees (What Are Employee Relations and Why They
Are Important, 2020). That’s why employees’ role is also mandatory in building effective
employment relationship.

Recommendations
According to current highly competitive market place, each business has to make
effective relationship between employees and employer. Of course, currently HR manager of
Tesco enables to maintain great employee relations, but it still needs to improve these relations,
because Tesco’s different competitors also takes different productive steps towards developing
effective relations of employees. In this situation, it is very necessary to HR department of Tesco
to adopt and implement some strategies. For example; department can make health and happy
work culture, because this type of work cultures always motivates people or employees to
happily work within workplace (The Role of HR in Employee Relationship Management (ERM),
2020). Hr department can improve communication skills of people, because these skills helps in
removing different conflicts and errors between employees and employers etc. The management
have to understand that, effective employee relations contributes in retaining talented and skilled
employees in workplace for the long time period.
CONCLUSION
On the basis of findings, it can be concluded that top-level management of Tesco have to
properly understand the actual concept of SHRM. Strategic human resource management will
support to this retail business for systematically managing different employees or human
resources in workplace. SHRM enable to company for taking huge and very productive work
from all people. It can be also concluded that, here is great relationship between business
strategy and human resource strategy. Some major theoretical basis and models of SHRM also
has been discussed above in this report. On the other side, performance management and reward
are two major practices of Tesco’s HR department which contributes in building great
employment relations. Role of some key actors also has been mentioned above in this report in
building appropriate employee relations.

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