Strategic Human Resources Management Report (Part 1) for Tesco PLC

This report delves into the strategic human resource management (SHRM) practices of Tesco PLC. It begins by outlining the aim, scope, and purpose of a strategic workforce plan within the context of the retail giant. The report then examines the internal and external factors that influence HR functions within Tesco, providing a comprehensive overview of the company's operational environment. Key strategic and operational considerations are discussed, highlighting the importance of factors such as supply chain, technology, and communication. Finally, the report links these practices to contemporary HR theory, specifically exploring how concepts like comparative advantage and human capital theory are applied within Tesco. The report also provides a comparison with Marks & Spencer's HR strategies, including the 'Lead to Succeed' program and 'Plan A 2025', to highlight best practices and strategic approaches within the retail sector. The analysis emphasizes the importance of employee satisfaction and strategic workforce planning for achieving organizational goals and sustainable growth.

STRATEGIC HUMAN
RESOURCES
MANAGEMENT (PART 1)

Table of Contents
INTRODUCTION...........................................................................................................................3
PART-1............................................................................................................................................3
Aim, scope and purpose of the strategic workforce plan-...........................................................3
Internal and external factors influence HR functions-.................................................................4
Key strategic and operational considerations-.............................................................................5
Contemporary theory of HR strategy-.........................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic human resource management refers to the practise of managing human resource
in an organization for strengthening personnel in order to achieve long term goals of the
organization (Awadari and Kanwal, 2019) In this report aim, purpose and scope of the strategic
workforce plan would be discussed in context of TESCO PLC which is one of the biggest retail
giant of UK. Some other aspects such as internal external influences on HR functions, key
strategic and operational considerations of the entity. At the end of the report contemporary
theory would be linked in attempt to demonstrate its support to HR practices of the organization.
PART-1
Aim, scope and purpose of the strategic workforce plan-
TESCO plc is one of the biggest giant of retail market and operating its business in more
than 11 nations. The entity is having around 367000 employees across the world. With this
regard the entity is having strong need to practise strategic workforce plan (Alam and Raut-Roy,
2019)
The main aim of the entity is to pave way to achieve its objectives in long run. The entity
is striving to be number one and leading retail entity so without proper human management on
the workplace achieving the dream is almost impossible. Considering the points it can be said
that the main aim of strategic human plan is to set up better internal environment in the
organization and clearing the way to curb organizational goal.
The scope of strategic workforce plan is bigger than human resource management since
it is fabricated for long run considering all key aspects which may affects its productivity.
Companies like TESCO which is widely operating its business it is essential for them to have
well articulated workforce plan. It helps to ensure employee retention, compensation
management, safety of workers and organizational performance, performance appraisal,
performance management, promotion, removal, giving training and development, induction etc.
The salient purpose of strategic human resource plan is to ensure to help entity in
achieving long term goal of the organization. In this competitive age for accomplishing future
goals there is burning need manage the employees in efficient way so can drive them to do their
best and can also eradicate potential perils which may affect both operational and non-
operational efficiency. For achieving futuristic goal placing right person, on right place with

appropriate skills are some realm which are executed by strategic workforce plan (Ogbeibu,
Senadjki and Peng, 2018)
Internal and external factors influence HR functions-
TESCO is operating wide range of operations so the internal structure of the organization
is very complex and having a lot of such factors which affect HR functions. These are some
internal factors which are influencing HR functions of TESCO plc.
Organizational policies- TESCO is a global retailer so the polices are fabricated to help
employees from different backgrounds with this regard the entity is having a good cluster of
policies. The polices are having their direct impact on HR practices and deciding its direction.
Organizational culture- just having policies is not sole aspects, at the same time organizational
culture decides to bigger extent about their HR practice. In TESCO the organizational culture is
democratic which is positively affecting Human resources.
Organizational conflicts- in TESCO there is a well-structured mechanism of conflict resolution.
For keeping the morale of employees high it is an essential thing. In the company a good system
is installed so can reduce conflicts and empower HR productivity.
Organizational structure- the structure of the entity is very complex yet the organization timely
makes some changes to make it appropriate for its workforce so can work with apex level of
efficiency.
HR system- for entity it is prominent to decide the structure of their HR. due to having wide
operations the HR system of the entity is a bit complex which is directly influencing HR
management (Mohamed, 2019)
External factors influencing HR functions-
Tesco plc is working in wide number of nations so having so many external factors which are
affecting its HR functions.
Political- the entity is operating business in more than 11 nations so different political aspects
are affecting its HR functions and creating need to comply with certain rules and regulations.
Economic- In some markets or nations the economy is thriving with lower rate, at the same time
some markets are having surged economy so for the organization it is essential to understand the
HR functions which may suit in particular economic environment.

Technological factors- with the progress of time the technology is also getting reformed with
faster rate so for conducting HR functions ones can not avoid considering these technological
framework (Shipper and Hoffman, 2020)
Labour mobility- Across the glob the labour movements are on different level, it is one of the
salient aspect which is influencing policies and HR practices of the entity, as it is known that
Tesco plc is operating business in around 11 nations so abiding with such practices is a must
practice for it.
Socio-cultural trends- The modern labour market is very much conscious about their health and
security so the changes coming in the socio-cultural trends are influencing HR functions of
TESCO too. Now the retail giant is supposed to abide with such social norms too along with sort
of legal and political norms.
Key strategic and operational considerations-
These are the strategic and operational considerations for Tesco plc. The entity is
operating its business across the world so having need to ponder over the issues in order to
ensure better performance in this competitive age (Icardi and Urraci, 2020)
Strategic considerations- refers to the considerations which play viable role while drafting plan
for the future such as products, services, customers, markets, finance, technology etc.
Tesco is one of the biggest retail giant and as it is striving to hike its market share and
wants to explore new markets too. Here it is very prominent for the organization to pay attention
to the considerations.
The company is having need to accentuate is supply chain while drafting strategies for
organizational growth since with the progress of time the market circumstances are getting
changed and now there is need of smooth supply chain which can meet the demands of
customers.
Other key strategic consideration would be the modern technology such as Robotics and
AI, the retail giant is widely using new technology yet there is need to explore it more and pave
way for higher use of the innovative tools it will be not only putting the work on ease but at the
same time will also ensure cost leadership and placing bigger challenge to the competitors.
Operational considerations- Operational considerations refer to the elements which consist
costs, availability, and sort of other operation related aspects of the organization which

participate considerably while forming strategies for organizational success (Redman, Smith,
2018)
The entity is having need to improve its process of production, with the emerging
technologies it is not much easier for the entities to get their customers satisfied, so they are
having rigours need to fabricate appropriate policy with this regard.
Some other operational considerations which must be inculcated while drafting
sustainable strategies of the organization, these considerations are as staffing, training,
promotion, sharing, harmonizing, maintaining etc. inclusion of these elements will be in favour
of the organization and would further pave way to present itself strongly in the market.
Barrier-less communication is an unavoidable need of the modern market. Tesco is
having its widely spread operations so having need to work on the most prominent aspect of
operations which is communication. With proper communication strategy and ensuring better
and non conventional contact with the employees it can make sure hyper performance in the
market.
Proper management of working capital is another aspect where it is having need to work,
since the operational efficiency totally depends on management of working capital so there is
need to escalate working capital management.
So altogether it can be concluded that Tesco plc may take these strategic and operational
considerations into focus in order to augment the level of performance and ability to achieve the
aims and objectives, further would pave way for sustainable growth in the market.
Contemporary theory of HR strategy-
At present the HR strategies are given higher attention and rigorous priority due to need
of efficient workforce in order to make position stronger in the market. There are a range of such
theories which are being practised by the organization to surge its performance and carry out its
HR strategy efficiently.
Such as comparative advantage theory, which stands for the notion that the
organization can perform better and can take competitive advantage if their employees are well
qualified. So Tesco keep the conception in mind and timely proves opportunity to its employees
for their betterment (Tran, 2022)
In Tesco there is a well articulated methodology of training and development is being
followed. Which is helping employees to perform beyond their normal capacity. This is very

supportive since the aim of the entity is to give tough challenge to other organizations so
practising the theory Tesco is taking advantage in the market over other competitive.
Human capital theory which is also being practised by the organization. The entity is
abiding with human capital theory. It helps them to assist their HR strategy. The organization
believes that the human resources who are working in the organization are one among key
resources.
In the organization for applying HR strategy the employees are considered capital and for
their up gradation the entity tries to hike their productivity by providing them better education,
training and development opportunities.
For the organization in the competitive age it is impossible to run business without proper
attention to the employee and here the theory is having its rigours implications since it directly
gives attention the personnel and drives HR strategies to be employee centric.
These HR theories are in benefit of the entity since the organizational goal of being
leader in the retail sector across the world, is only feasible if the employees are satisfied and
performing on their merit. For hiking the potential of employees and helping them to be more
competent is only possible with the aid of HR strategy.
One of the biggest competitor of the entity is Marks & Spencer plc which is one of the
leading retail seller of the nation. The HR strategies of M&S is very attractive since they are
paying attention to hike their share in the market. The initiated a programme called “Lead to
Succeed” it was aimed to teach leadership and sort of innovative styles to the employees so can
hike their performance.
The course is being provided to around 350 employees every year so can surge the
performance level of HR. some other aspects such as 360 degree assessment, role-play,
classroom simulation etc. for ensuring success of the programme there are some methods are
being used such as questionnaire, face to face learning, buddy review, feedback etc. (Stanković,
Maksimović and Osmanović, 2018)
So from the example of M&S it can be concluded that the organization is very much
aware of their HR practises and are striving to go for bigger and rapid growth and ensuring
sustainable growth in the market. On the other side M&S is aware that the market is very
dynamic and due to higher prevalence of Tesco plc it would be very difficult for them to possess

better position in the market, with this regard the entity proposed a plan “plan A 2025” it is for
future and making sure their success and sustainable growth in the market.
CONCLUSION
From the report above it can be concluded that strategic human resource management is
having its rigorous importance in an organization. In the report it has been evaluated that what
were the aim, scope and purpose of strategic workforce plan work, different internal and external
factors affected HR functions of TESCO plc were taken into consideration. Strategic and some
operational considerations were evaluated in context of the organization. At the end of the report
contemporary theories of HR management have been deciphered in order to present a deepened
view on how it supported HR strategy and paved way to grab organizational objectives.

REFERENCES
Books and journals-
Alam, S. and Raut-Roy, U., 2019. Evaluating the Effectiveness of Reward Strategy at Tesco:
Evidence from Selected Stores in UK. Indian Journal of Industrial Relations. 55(1).
Awadari, A. C. and Kanwal, S., 2019. Employee participation in organizational change: A case
of Tesco PLC. International Journal of Financial, Accounting, and Management. 1(2).
pp.91-99.
Banai, I. P., Banai, B. and Mikloušić, I., 2020. Beliefs in COVID-19 conspiracy theories predict
lower level of compliance with the preventive measures both directly and indirectly by
lowering trust in government medical officials.
Icardi, U. and Urraci, A., 2020. Elastostatic assessment of several mixed/displacement-based
laminated plate theories, differently accounting for transverse normal
deformability. Aerospace Science and Technology. 98. p.105651.
Mohamed, E. G., 2019. Relationships between Employees and its Impact on Their Performance
in Hotels. Journal of the Faculty of Tourism and Hotels-University of Sadat City. 3(1).
pp.149-166.
Ogbeibu, S., Senadjki, A. and Peng, T. L., 2018. An organisational culture and trustworthiness
multidimensional model to engender employee creativity. American Journal of
Business.
Redman, L. M., Smith, 2018. Metabolic slowing and reduced oxidative damage with sustained
caloric restriction support the rate of living and oxidative damage theories of aging. Cell
metabolism. 27(4). pp.805-815.
Shipper, F. and Hoffman, R. C., 2020. John Lewis partnership approaching 100 years–what
now?. The CASE Journal.
Stanković, Z., Maksimović, J. and Osmanović, J., 2018. Cognitive theories and paradigmatic
research posts in the function of multimedia teaching and learning. International
Journal of Cognitive Research in Science, Engineering and Education. 6(2). p.107.
Tran, H., 2022. Revolutionizing school HR strategies and practices to reflect talent centered
education leadership. Leadership and Policy in Schools. 21(2). pp.238-252.
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