Human Resource Management Report: Tesco's Global Strategy and HRM

This report provides a comprehensive analysis of Tesco's human resource management (HRM) strategies, particularly in the context of its planned entry into the Indonesian market. It delves into the core concepts of strategic HRM, including effective recruitment and selection, resource management, employee engagement, and performance management. The report examines the impact of regional culture, using Hofstede's cultural dimensions to assess how cultural factors influence HRM practices. Furthermore, it identifies key organizational levers, such as demand management, outsourcing, and lean management, that Tesco can utilize to create value and attract talent. The report also applies Storey's 27 points of difference to compare personnel management and HRM approaches. Finally, it explores employment laws and provides a corporate example to justify the findings, concluding with recommendations for Tesco's HRM practices in Indonesia.

Report Human
Resource Management
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Table of Content
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
Task A) Concepts of strategic human resource management......................................................3
Task B Impact of regional culture on HRM................................................................................4
Task C. State the organisational levers........................................................................................6
Task D. Using storey’s 27 point of difference, state the practice that is adopted in accordance
of chosen organisation.................................................................................................................6
Task E. When it comes to hiring and firing, do you consider the importance of local culture...7
Task F. Examines the differences in relation of employment laws.............................................8
Task G. Use corporate example to justify your stand..................................................................9
Recommendations............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Human resource management is a broader term in management which is considered as
core unit of an organisation as it deals with several functions such as recruitment and selection,
training and development as it assists company in preparation of strategic planning so that goal is
accomplished in a respective time period as it aids in gaining competitive advancement across
the globe (Armstrong and Taylor, 2020). In other words, this aspect of management is designed
in such a manner which tends to maximise the performance of employees as they are concerned
with formulation of policies and procedures which determine the level of success in a workplace
(Ruparel and et. al., 2020). This report is based on Tesco which is one of the leading retailing
company in UK as it deals with varieties of groceries, food items and other household essentials
and also it procures several financial services such as bank and many more. The company is
propounded by Jack Cohen as the firm is measured as third giant retailer across the worldwide
and it aims to deliver best quality of product among their customers by building trust and
generate customer loyalty among them. The Tesco company is planning to enter the market of
Indonesia which is officially the Republic of Indonesia taht is a country situated in Southeast
Asia to have enhancement in its productivity and performance. This report covers several
concepts of strategic human resource management and impact of culture on a workplace. This
report includes several levers which are used by a firm as it creates more value and also
significance of culture that are need to be undertaken by HRM is also discussed in this report. At
last, several employment laws which change the overall human resource system is covered in
this report.
Main Body
Task A) Concepts of strategic human resource management
Today in a modern era, human resource is considered as worth in an organisation as it
assists the management to ensure long term growth and sustainability within a marketplace. The
manager of Tesco tends to hire the attractive and talented workforce so that it could render an
innovative idea and facilitate best decision making that provide a vast success and aids in gaining
a strong competitive advantage across the globe (Bailey and et.al., 2018). In the context of
Tesco, the several concepts of human resource management are elucidated below:
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Effective recruitment and selection strategy: The HR manager of Tesco would recruit
best and efficient workforce and involve them in core activities as their active participation
would help in rendering an excellent idea and thus provide a superior level of growth (Lasisi and
et. al., 2020). This provides the greater value to a firm and help in attainment of targets on a
timely basis. By using such standardised method, they would assure in gaining an utmost
importance in case of retailing sector.
Resource management: The manager of Tesco would tend to use optimum utilisation of
resources such as manpower, machines, money and methods so as to gain maximum output level
as it accelerates greater productivity. They should make assure that they could make an efficient
planning by deciding the best course of action among the several alternatives available which
aids in achieving goal within limited period of time (Berman, and et.al., 2019).
High engagement: This approach is more useful as the manager of concerned firm treat
their employees with dignity and respect as they could raise their voice which is a matter for
concern as it involves better communication among the top-level managers and staff which
provide a peaceful and better environment (dos Santos and Pedro, 2020). It is essential that the
senior authority would communicate the ideas, vision and mission among the team members so
that they could work towards it with zeal and enthusiasm that adds more worth to a firm
especially in retailing company like Tesco.
Performance management: This is a broader term in HRM as it covers growth, sales,
productivity as other management practices which is opted by Tesco such as pay benefits,
extensive training programmes and clear and specific job design that facilitate proper working
procedure in a workplace and thus enable high performance of members which improve overall
performance contribute more value proposition to a firm.
On the basis of above discussion, an analysis can be made that effective recruitment and
section is a vital HR strategy that lead to enhancement in competitive strength of Tesco in
Indonesia through providing a more skilled and talented workforce. Further, resources
management and effective performance management by the way o f effective training and setting
proper control over efficiency of employees also leads to improved Internal capabilities and
strengths for Tesco to have higher competitive power in the business environment.
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Task B Impact of regional culture on HRM
In an era of globalisation, there is changes taken place at a rapid rate so the manager of
Tesco would tend to upgrade the overall technology so as to ensure greater ease of convenience
within a firm. This simplify the overall working aspect especially to employees which create a
high level of satisfaction among them as this promote a better culture in a workplace. Every
organisation has its own culture, tradition and customs as well as rules and regulation which is
differ from one another as it has impact on human resource management (Boella and Goss-
Turner, 2019). The culture of Tesco is embedded with correct implementation of recruitment
strategy as the quality of staff would help in determining that whether it would work well in a
dynamic environment and could handle complexities as it is necessary that they could ensure a
reasonable level of success in case of retailing company. They make sure that they could identify
the best selection procedure and assigning them work in a most appropriate manner in
accordance of their talent and skills as it boosts the level of productivity. If the performance of
subordinates in a respective firm has improvised, then it built a strong culture which bring a
positive atmosphere and help in accomplishing sustainability within a marketplace. In
accordance of Hofstede’s culture, the dimension is given beneath in relation to Tesco:
Individualism vs collectivism: The manager of Tesco would use such dimension as it is
more stick towards the achievement of business objectives as it places more emphasis on well-
being of overall team members or group which reflect a better image (Tan, 2020). The
differences between the norms, beliefs and values of national culture influence the human
resource practices. Tesco follows collectivism culture which impacts on HRM practices
positively as it increases loyalty of employees towards the firm.
Masculinity vs. Femininity: The senior authority of Tesco provides a greater equality
among men and women on the basis of achievements which nurture best quality of life. The
manager would tend to provide equal pay among the males and females so that they could feel
satisfied and discrimination is encouraged (Marchington and et.al., 2016). This culture impacts
positively on the HRM practices of company.
Long term vs short term orientation: In case of long and short-term orientation, the
former deals with long term success while the latter deal with short success as it focuses on quick
an effective result. The senior manager of Tesco would stress on measuring long term success as
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it convinces the vision and goal among the members so that they could work towards it as early
as possible.
Power distance index: This emphasise that high power would reflect a culture which
inspire bureaucracy while the low power reflects a structure of an organisation which is
decentralised and place more focus on distribution of power. Tesco cultivates low power index
as it focuses more towards participative style of leadership which maximise their satisfaction
level and aids in retaining them for a longer time (Alomari, 2020). This dimension depicts about
the acceptance of unequal distribution of power within Nations. When the power distance
indexes are high in the organisation, then inequalities accepted largely which leads to autocratic
management practices. Whereas, low power distance index in the organisation depicts desire for
strong interpersonal relationship, equality and increasing employee involvement. Tesco follows
low power distance index which impacts positively on HRM practices of company and help in
developing strong interpersonal relationships.
Task C. State the organisational levers
The organisational model and concept of employment that could be used by Tesco to
attract and cater more talent employees for its effective performance comprises of vocational
profiling which leads and provides a unique planning that enables employees to indentify that
they want to achieve and ensure direction for getting there. Further, Employer engagement is
also a vital organisational of employment to make new candidates learn about the job and
support the HR team through leading an effective recruitment and engagement at workplace.
The various levers that are used by Tesco in order to create high value are as follows:
Demand management: The senior executive of a respective firm would tend to
implement and execute demand management so that it could meet the requirements and
expectations of a business as it would provide offerings by following low cost strategy which
maximise the sales operations of a business (Tran and et.al., 2020).
Outsourcing: This is one of the best measure that Tesco could use as it could rely on
third parties for non core activities of business purpose as it saves time and help in operating the
business at a global level as it facilitates proper organisational structure which bring discipline
and transparency in a workplace because it ensures coordination and avoid confusion among
them (Herzberg, 2017).
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Lean management model: This model states that there should be continuous
improvement in system as employees in a concerned firm must eliminate all sort of defects and
must discover new and smart ways of working which promote a better culture as they are
connected with goals and strategy that render a meaningful experience.
Develop capabilities plus talent: The leader of Tesco would align the skills of employees
in a best possible manner as it make ensure that it would make proper division of work in such a
manner that right skills must be matched by right talent which boost their satisfaction level
which raises the level of productivity (Haq, Gu and Huo, 2020).
Therefore, the top management of Tesco would render rewards and recognise the efforts
of employees which increase their motivation level as they would work hard beyond their
potential so that maximum output could be gained. This provide desirable results and thus
provides prospects of growth which in turn provide value proposition to a firm.
Task D. Using storey’s 27 point of difference, state the practice that is adopted in accordance of
chosen organisation
According to storey’s 27 point of difference, there is greater difference among personnel
and human resource management as the former is based on transactional approach and deal with
indirect form of communication whereas latter is based on transformational approach and is
customer oriented as direct communication take place in business aspect as it leads to fast and
accuracy of decision but decision making is slow in case of personal management (Chelladurai
and Kerwin, 2018). Strict norms and procedures and strict monitoring and reviewing is necessary
in personnel management while the latter would focus on nurturing values and missions.
Through this, the team members of Tesco are well informed about the goals and job duties so
that they would not have any sort of confusions as they would work with passion and enthusiasm
which provide a greater degree of success which boost the morale and generate productivity
(Upadhyay and Khandelwal, 2018). As personnel management is strictly adhering to rules and
regulations and lead to delay in overall activities as they would not take immediate action which
hamper the overall growth prospects of a business enterprise. The use of human resource
management by Tesco would ensure that they would formulate a new vision as it identifies the
gaps and root cause of problems so that it could take better recommendations and help in
filtering innovative solutions in a quicker manner. The senior executive of a Tesco in Asia would
practice human resource management as it is most suitable and appropriate method as it tends to
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promote new style of working by making constant modifications in order to facilitate smooth
operations effectively.
THE 27 POINTS OF DIFFERENCE BETWEEN HRM AND PERSONNEL
MANAGEMENT
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On the basis of above table it can be evaluated that personal management is seemed to be
more workforces centred which is directly associated with the finding and training of employees
where as HRM seems to be more resources centred that is responsible for line management and
other developments.
Task E. When it comes to hiring and firing, do you consider the importance of local culture
The models and theories of hiring comprises of various type of recruitment process that
could be used by Tesco Plc to appoint and recruit new employees. Basically there are two main
modes of recruitment comprises of internal and external hiring. The concept of Internal hiring is
basically associated with appointing of employees from pre-existing employees. The model of
internal hiring used by Tesco comprises of promotion, transfer and job rotation strategies to incur
an internal recruitment process. The external hiring process and model of Tesco consists of use
of advertising and promotion strategy to attract and cater attention of talented employees to fill
vacant job position through hiring a new and more competent employees from outside the
organisation.
Yes, culture play a crucial role in an organisation like Tesco as it is interlinked with rules
and regulations, traditions, customs and so on. In case of hiring and recruiting the most efficient
workforce would provide an utmost growth as it renders an excellent opportunity for business to
grow at an international level and help in expansion and diversification of a business entity
(Mondy and Martocchio, 2016). Also, an appropriate culture would guide employees and
provide a systematic way to them the manner they interact with others by abiding all policies and
procedures so as to bring accountability and transparency in a company.
While in case of termination, every company has its own policies as they prefer to protect
their business from lawsuits as it affects the overall working procedure. Human resource
management must tend to resolve the level of conflict and promote a healthy work culture by
bringing best among employees and also it must compliance with employment laws by
maintaining an efficient record of their applicants (Gärtner, 2020). Open communication and
building effective relation with subordinates are the most significant factors which aids in
retaining employees for a longer time period as this promote a better culture and sense of team
spirit within the confines of retailing company.
By hiring the right candidates and trained them with right skills is necessary as it reflect a
better personality which help in filling vacant job positions as the abilities and skills are utilised
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so that positive outcomes could be achieved (Morgeson, Brannick and Levine, 2019). Proper
implementation of HRM practices would help in recruiting the most attractive candidate and
providing them with constant apprenticeship programmes so as to broaden their knowledge level
as they would be able to accept additional responsibilities which develop trust and determination
among them. Performance appraisal is the another HRM practices which improve the morale of
subordinates as sense of appreciation and financial incentives are awarded by the manager which
makes them to improve their performance in order to bring prosperity of success within a
workplace.
Task F. Examines the differences in relation of employment laws
The manager of Tesco abides all rules of employment laws which in turn maintain
harmony in a workplace and thus promote a good culture (Brewster and Hegewisch, 2017). They
obey healthy and safety with the motive to promote welfare among their workers with necessary
tool kit which bring a peaceful environment and also they would abide data protection act by
maintaining confidentiality of information of their clients and employees which build trust
among them and in case if such personal details is leaked then this would hamper their overall
performance. Furthermore, the manager would also follow employment laws by stating the terms
and condition clearly to them so that they could not arise misunderstanding and disputes in future
(Walker, 2020).
International HRM practices has change the entire business scenario as it deploys the
attractive workforce which bring smooth conduct of activities as they are aware of new and
advanced technology as they tend to take decision with full accuracy and thus allow the company
to generate more success (Wilton, 2016). The main motive of a respective firm is to make an
appropriate deployment of human resource which tends to maintain quality culture and satisfying
the priorities of customers which aids in achieving competitive advancement across the globe
(Van Esch, Black and Ferolie, 2019). While maintaining proper employment laws, the manager
of Tesco would ensure that complying such laws would aid in ensuring the protection of workers
as they would maintain a healthy work life balance which bring sustainability for a long term.
These laws and regulation would allow employer to promote equality irrespective of
discrimination, colour, gender, religion and so on and also encourage to pay equity among both
males and females as they have similar job duties and obligations to perform which bring
transparency in retailing company (Riana and et. al., 2020). Globalisation is the key reason that
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