Strategic Human Resource Management: Trends, Factors & Theories

This report provides an analysis of strategic human resource management (SHRM) with a focus on Tesco as a case study. It identifies key current trends and developments influencing HR strategy, such as globalization, workforce diversity, technology, growth programs, and skill requirements. The report further examines both external (government regulations, economic conditions) and internal factors (hiring, compensation, employee relations) that impact HR strategy and practices within the organization. Finally, it applies relevant theories like the contingency theory of management to organizational examples, emphasizing the importance of aligning HR practices with both the external environment and internal strategies to achieve organizational goals. Desklib offers students access to this and many more solved assignments.

Unit 21

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determine key current trends and developments that influence an organisation’s HR
strategy.........................................................................................................................................1
P2 Analyse how both external and internal factors influence HR strategy and practice.............4
TASK 2............................................................................................................................................6
P3 Apply relevant theories and concepts relating to the growth and development of strategic
HRM to specific organisational examples...................................................................................6
TASK 3............................................................................................................................................7
(Covered in PPT).........................................................................................................................7
TASK 4............................................................................................................................................7
(Covered in PPT).........................................................................................................................7
CONCLUSION................................................................................................................................8

INTRODUCTION
Strategic human resource management can be describe as the practices of business that
majorly include future oriented process of growing as well as implementing HR programs. This
is significant for addressing as well as solving business problems. There are different important
roles of strategic human resources management that is significant for increasing overall
performance of business as well as attaining desired goals (Garmendia Ochoantesana, Elorza
Iñurritegi and Uribetxebarria Andres, 2021). Chosen company for this report is Tesco. This is
well established organisation that is conducting its business practices in retail market sector.
Tesco is a British multinational groceries and general merchandise retailer and its head office is
located in Welwyn Garden city, England. This organisation was developed in year 1919 and
founder of this company is Jack Cohen. Tesco products and services includes supermarket,
hypermarket, superstore and convenience shop. This organisation is offering its products and
services to different market area in all over the world. This report includes key current trends
and development which influences organisational HR strategies. Internal and external factors
which influences HR strategies has been determined. In this report concept and theories related
to growth and development of strategic HRM has been determined.
MAIN BODY
TASK 1
P1 Determine key current trends and developments that influence an organisation’s HR strategy.
Human resource management is crucial part of organisation that is helpful for enhancing
business practices as well as successfully conducting organisational task and practices
(Hermanto and et.al., 2021). This is a significant process of maintaining different rules and
regulations of Tesco company as well as interrelate it with different functions of business. It has
been determined that human resource process is helpful for respective business by solving
different issues and problems in order to accomplish desired goals. It is a process by which
associations can get proficient and viable in their functioning interaction. The human resource
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management likewise assists with getting the advantage from the association and manage various
types of issues and burden employees face in their work environment. By tackling the entirety of
the issues and communicating with the employees they can guarantee better results for the
association and can shape new and imaginative key cycles of work in the work environment. It is
essential for Tesco company to consider current HR strategy trends in order to develop effective
and efficient strategies for business. This is helpful for enhancing overall performance and
capabilities of business as well as attaining desired goals. There are different changes in business
market area which needs to be consider by organisation while conducting its practices Current
trends and developments are mention below which will lead to have significant impact on HR
strategy.
 Globalization – Globalisation can be describe as the practice of conducting business
practices in different part of the world. This is very effective for enhancing overall
performance and productivity of business (Barbaros and Țaranu, 2020). Today business
affiliations are not simply working in as far as possible rather than they are going
worldwide and broadening their business limits. The climb of advancement in the
different areas of global organizations is making a necessity for HR chiefs. The
advancement of cross-line trade and the usage of exchanges development are attracting
overall capacity and moulding new strategies to hold them and use their skills. It is
important for Tesco company human resource to develop strategies of business while
considering globalisation. Human resource strategies of organisation should be effective
for attracting highly skilled employees form global working environment.
 Workforce diversity – This is one of the crucial element that needs to be consider by
organisation while developing and creating human resource strategies (Killu, Raja and
Annepu, 2021). It is essential that Tesco company have workforce diversity while
conducting business practices as it is significant for enhancing overall performance of
business. The workforce diversity of employees as far as age, social foundation, race,
religion, sexual orientation, and so forth is connected with the advancement of the work
is changing its technique for movement to focus in on the customer and incorporates
employees more to gain ground toward achievement in recruiting quality people, paper
getting ready and tending to customer needs. HRM engages employees to ensure
ceaseless improvement in their own and master life which is crucial for the change and
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adjust up to different conditions (Hussein, 2020). All the association need is to work with
clear and wide correspondences to carry out the upgrades in expected and came about
necessities of the employees. Human resource department of respective company that is
Tesco company should develop strategies while providing equal and fair chance to every
employees. This will assist in maintaining equality and diversity in Tesco organisation in
effective manner.
 New and innovative technology – There are different advance and innovative technology
in market area which needs to be consider by organisation in order to significant and
correctly conducting business practices. New and innovative technology is helpful for
successfully performing business activities with the motive of attaining growth and
development (Boardman, Ponomariov and Shen, 2020). Technological advancement
and improvement of the modernized frameworks are helping HRM practices to simplify
the works and complex. These frameworks assisting a great deal with keeping up with the
security of the data and fostering a superior method to manage data in Tesco company.
By considering new and advance technology in human resource activities respective
organisation will be able to create effective strategy for meeting needs and wants of
employees. Technological advancement is will assist Tesco company to develop accurate
system which will help in keeping all records and information safe. Through this Human
Resource professional will be able to gather required data more easily.
 Growth and development programs – There is current trend of continuous improvement
programs. This needs to be consider by Human resource of respective company in order
to create effective strategies. The Tesco company is changing its method of activity to
zero in on the client and includes employees more to make progress toward
accomplishment in hiring quality individuals, paper preparing and addressing client
needs. HRM empowers employees to guarantee continuous improvement in their
personal and expert life which is vital for the change and adapt up to various
environments (Hussein, 2020). All the interaction need is to work with clear and broad
correspondences to roll out the improvements in expected and came about requirements
of the employees.
 Skills requirements – It is essential for Human resource of Tesco company to develop
appropriate strategies which is helpful for meeting skills necessities. Changing ability
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necessities is another huge issue to adjust up to earnestness, helpfulness, quality and
managing the diverse work force of the affiliation. Tesco organization can create and
additionally foster their HR management system with quality work and higher
proficiency. They should talk with trained professionals and specialists to plan carefully
by fulfilling ability insufficiencies and inadequacies of the affiliations and get together
the essentials of approaching days. It is important function of human resource department
to enhance skills and capabilities of employees in order to meet with business
expectations.
P2 Analyse how both external and internal factors influence HR strategy and practice.
There are different factors and elements which will lead to have major impact on overall
performance and abilities of business. It is essential for respective organisation that is Tesco to
identify both external and internal factors in order to enhance create appropriate HR strategies
and practices (Singh, Shrivastav and Munjal, 2021). The external and internal elements of the
environment can impact the HR strategy and practices of Tesco company in sure and negative
manners. It relies upon the environmental circumstance and the acts of the Tesco company are
viable with the environment or not. Here are some ways by which factors HR strategy and
practices can get influenced. Various internal and external factors are mention below -
External factors –
This includes all those elements or factors which are outside the organisation. This consist of
economic conditions in which organisation is performing its practices or different rules of
government. Different external factors are mention below in detail -
 Government rules and regulations – It is significant for the associations to keep the laws
and guidelines of the country on their hiring, preparing, compensation, end, and so forth
measures (Mamatelashvili, and et.al., 2020). These guidelines and keep up with them
appropriately can be advantageous for business over the long haul and business
conditions become ideal for the Tesco company.
 Economic conditions – One of the greatest outer impacts come from the economic state
of any economy. It influences the ability pool and the capacity to recruit individuals in
various economic conditions to stay away from the economic slump and protect the
association for a more drawn out timeframe. The economic conditions can influence the
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Tesco company business to improve and get the profit and furthermore can influence it in
a negative manner.
Internal factors –
This consist of all those factors that are internal part of the business. It is important for Tesco
company to determine various internal factors while performing business activities successfully.
Different internal factors which influence human resource strategies and practices in respect to
Tesco company are mention below -
 Hiring employees – Workforce planning is an imperative issue for any affiliation. Tesco
organization needs to manage the ability to choose or recruit qualified competitors from
the work market subject to availability. They moreover need to consider the joblessness
rates, different qualified subject matter experts, the openness of up-and-comers, etc to
utilize the best applicants. An affiliation may encounter issues in perceiving and
attracting suitable up-and-comers, with a comparative ranges of abilities so considering
geographic region they ought to be careful and analyze the situation warily.
 Compensation – Compensation is a huge issue for HR to hold current employees and
attract new employees in their affiliation. They need to plan the compensation in a way so
the employees feel impelled to work and all the while the compensation is better
appeared differently in relation to monetary circumstance (Wuen, Ibrahim and Ringim,
2021). Considering these two factors employees will be fascinated to work with Tesco
organization for long stretch game plan.
 Employee relation – Internal approaches and systems of HR practices help to screen the
amount of employees and their potential outcomes to fulfill the need of the affiliation.
HR should participate in total wheeling and dealing with the specialists and focus on
affiliation culture and configuration to stay aware of the authentic relationship with the
employees to ensure a prevalent working environment for what's to come and stay away
from any adverse consequences of the environment
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TASK 2
P3 Apply relevant theories and concepts relating to the growth and development of strategic
HRM to specific organisational examples.
There are different theories an d concepts which are significant for growth and
development of strategic human resource management. Contingency theory of management is
very effective for providing accurate guidance as well as enhance human resource practices.
Contingency theory of management
This theory proposed that all together firms to be suitable, HRM limits should fit with the
affiliation or outer environment perspectives to achieve progressive goals. Possibility hypothesis
inside HRM relies upon outside and inner fit. External fit means HR rehearses should fit with the
authoritative procedure and climate conditions (Killu, Raja and Annepu, 2021). Interior fits mean
HR rehearses should work together to convey a similar message and the ideal result.
Contingency theory, firms can advance worker behaviours that are coordinated with business
procedure since conduct is the effect of a representative's capacity and inspiration, consequently
by carrying out HR practices, for example, advancing arrangements which persuade the
representative, an association can impact conduct. The contingency approach is a management
theory that proposes the most fitting style of management is dependent upon the setting of the
situation and that getting a single, rigid style is inefficient eventually. contingency manager
ordinarily centre around both the situation and their own styles and set forth activities to ensure
both work together gainfully. Incredible affiliations should tailor their masterminding,
organizing, driving, and controlling to their particular conditions. Accordingly, administrators
should perceive the conditions of a task, the essentials of the management work, and people
needed as segments of an all out management situation. The leaders should then attempt to fuse
this heap of angles into an answer that is for the most part fitting for a particular situation.
contingency factors like culture, globalization and the size of organizations have an immediate
impact over the HRM capacities (Boardman, Ponomariov and Shen, 2020). Distinctive culture
suggests diverse HR rehearses, when the association engaged with another climate which the
way of life is distinctive structure exist culture, the HRM need more data to settle on choice, deal
with changes and keep up with balance between representative's conduct toward new climate.
Globalization is a dependent upon HR rehearses on the grounds that the results of the
globalization are acquainting firms with new innovation, which required more preparing for
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representative and hiring skilled work and globalization lead to new business sectors which
acquaint with new societies and dealing with these distinctive become vital for the HR office.
 E – Recruitment – This can be describe as the practice of organisation to recruiting
employee through electronic media. E- Recruitment is the process or approach that
includes web based technology for conducting different activities such as attracting,
assessing, selecting, recruiting as well as on boarding job candidates.
 Virtual training – This is effective human resource management practice that is
significant for performing training and development practices of employees. Through
virtual training model respective company will be able to provide training to employee
through the support of electronic or digital media.
There are several practices of human resource management for overall growth and
development are mention below -
 Flexible work arrangements – Flexible work programs are work courses of action
wherein employees are offered more unmistakable booking chance by they way they
fulfil the responsibilities of their positions (Hussein, 2020). The most normal of these
projects is vital planning, which gives employees undeniably more imperative room the
extent that when they start and end work, in the event that they put in irrefutably the
quantity of hours required by the business. Other ordinary adaptable working game-plans
incorporate telecommuting, work sharing, and compacted work weeks.
 Performance management – Performance management is a corporate management gadget
that helps executives with noticing and evaluates employees' work. Execution's
management will probably build up an environment where people can proceed too as
could be relied upon to convey the best work most beneficially and viably.
TASK 3
(Covered in PPT)
TASK 4
(Covered in PPT)
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CONCLUSION
From the above report it has been concluded that strategic human resource management play
very important role in organisation. This is beneficial for organisation to enhance its performance
as well as attain desired goals and objectives. It has been determined that there are different
current trends and development in market area that will influence HR strategies. There are
internal and external factors which will lead to have major affect over HR strategies and
practices. It is important for company to consider both internal and external factors while
developing significant strategies of HR. There are different theories and concept that are
significant for growth and development of strategic HRM.
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