Strategic Human Resource Management Report: Tesco Case Study

This report delves into the realm of Strategic Human Resource Management (SHRM), focusing on its application within Tesco. It begins by identifying current trends and developments that influence HR strategy, such as globalization, workforce diversity, changing skill requirements, and digitized rewards. The report then analyzes how both external factors (competition, technology) and internal factors (organizational culture, rewards) impact HR practices. It explores relevant theories and concepts like flexible working arrangements, performance management, and e-recruitment, illustrating their practical application with examples from Tesco. Furthermore, the report evaluates change management models and assesses how HR outcomes can be measured and monitored, including how HRM supports sustainable growth and performance to meet business objectives. The conclusion summarizes the key findings, emphasizing the importance of SHRM in achieving organizational goals and maintaining a competitive edge in the dynamic business environment. This report provides a comprehensive overview of SHRM principles and their practical implementation within a major retail organization.

STRATEGIC HUMAN
RESOURCE MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Determine current trends & development that influence human resource strategy in an
organisation.................................................................................................................................3
P2 Analysis of how external as well as internal factors impact human resource practice and
strategy........................................................................................................................................5
TASK 2............................................................................................................................................6
P3 Theories & concepts associated to the development and growth of strategic human
resource management with examples..........................................................................................6
TASK 3............................................................................................................................................8
P4 Evaluation of how change management models support human resource strategy...............8
TASK 4............................................................................................................................................9
P5 Discussion about how Human resource outcomes can be measured and monitored.............9
P6 Evaluate how Human resource management & development support sustainable growth
and performance to meet business objectives...........................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic human resource management is defined as the practice of developing,
attracting, retaining and rewarding employees in order to benefit both employees as well as
company. In addition to this, it is consider as an important part of a company which assist in
developing brand name in an effective manner (Armstrong and Taylor, 2020). Human resource
management different function within an organisation such as recruitment and selection,
employee relation, training and development and so on. For the present report, TESCO is taken
into consideration. It is one of the largest grocery and retailer in UK which was founded in the
year 1919 and it head office is located in London, UK. One of the major strength of company is
its market presence as it offer products as well as services in more than 13 countries globally.
The report will cover current trends & developments that impact on Human resource strategy of
an organisation. In addition to this, there is a discussion about internal and external factors
impact on HR practice and strategy as well. Moreover, relevant concepts and theories associated
to growth & development of strategic HRM is discus along with some examples. Furthermore,
change management models and how HR outcomes is monitored in particular situation is
describe in the report. In the last, how effective human resource management as well as
development support sustainable growth and performance in order to meet objectives of
organisation is elaborated in a proper manner.
TASK 1
P1 Determine current trends & development that influence human resource strategy in an
organisation
In the present time, it is analysed that every organisation is making use of effective HRM
strategy with an aim to attain higher growth as well as strategy. It is significant for a company to
determine the consistency and feasibility of factors that impact on the overall valuation and
performance of a company (Barrena-Martínez, 2019). It is determined that company with an
effective HRM strategy as well as plan can retain its employees for longer time and enhance their
productivity level as well. There are various current trends as well as developments take place in
the present time which impact on the overall HR strategy of company. Such trends and
development is discuss below in context to respective company:

Globalisation: It is undertaken as one of the important aspect that impact directly on the
human resource strategy of TESCO. If the respective company want to expand its operations by
entering into new country then it is significant for HR department to develop new strategy in
order to deal with the changing environment. It is analysed that international business entities
needed international human resource management system in order to develop manpower which
are competent enough to perform at global level (Berman, 2019). Strategic human resource
management strategy provide harmony within the operations that impact efficiency of staff
members in a positive manner. In addition to this, it also assist in developing positive working
environment due to which employees work with full potential in order to attain objectives within
stipulated time period.
Workforce diversity: Another current trend is workforce diversity, TESCO is a
multinational company which has presence in more than 13 countries which shows the
organisation has diverse workforce. For this, it is important for HRM to develop strategies by
considering culture, values, beliefs of employees who belong from different culture as it help in
satisfying employees and retain them for longer time period. Workforce diversity directly impact
on HR strategy of TESCO as they did not apply and make use of same strategy in different
countries. It is determined that strategic human resource management decline level of cultural
difference which act as a barrier in executing policies as well as procedures.
Changing skills requirements: In the present business environment, skills is changing
rapidly with the up-gradation of technology and expectations of company from employees. In
context to TESCO, it make use of innovative technology that help in order to provide easy and
convenient service to customers and to attain competitive advantage at marketplace (Bratton and
Gold, 2017). For using new technology in an appropriate manner, it provide training to it staff
members in order to upgrade them with the new system and technology as well. In this, it might
be possible for Human resource manager of TESCO to make changes within the strategy
according to the requirements. Moreover, they can change recruitment and selection process so
that talented and effective employees were hired who have the capability to make use of
innovative technology and enhance the performance of company.
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Digitized rewards & recognition: Giving rewards as well as recognition is one of the key
factor to trigger performance and efficiency of employees. In addition to this, it assist company
like TESCO to retain its staff members for longer time and enhance its brand image at
marketplace. In the present scenario, most of the companies prefer to provide digital rewards to
its employees as it assist them to excel out one step higher by using social media platforms
which is evident in order to enhance performance level. It is analysed that such key trends and
development impact on the HR strategies and functions as well as they need to change it as per
the new situations and requirement as well (Brewster, 2017).
Therefore, these are various key trends and development which arise issues but at the
same time enhance performance of the company in a positive manner. By the help of this,
TESCO can develop is positive brand image and can attain competitive advantage at
marketplace.
P2 Analysis of how external as well as internal factors impact human resource practice and
strategy
It is stated that successful business structure & procedure is depend on the effective skills
as well as strategies of management. The main objective of HRM management is to develop
those plan and strategies that leads to higher growth & development of a company. In addition to
this, there are various internal as well as external factors which impact on the HR strategy and
practice as well. In order to gain knowledge about such factors, it is significant for HR manager
to look on it and consider them at the time of developing strategy and adopt practices as well.
The internal and external factors that has influence on human resource practices and strategy is
given below in context to respective company:
Competition: There are different kind of changes as well as requirements which are
developed with focused human resource plans and policies in order to gain advancement and
better change. In the retail industry, the competition is very high and for this it is important to
choose talented and effective employees. For this, HR must make sparks and ventures that are
beneficial for the long-term development. In order to remain in the competition, TESCO is
required to make use of effective hiring and selection process that impact on the HR practices
and strategies of recruitment and selection (Brewster, Mayrhofer and Farndale, 2018). The
primary point is to look on such arrangements in a proper manner by examining factors of
change and advancements as well.
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Technology: This factor plays an important role and is changing rapidly due to which all
the system and procedures of an organisation is change. Making use of new and upgraded
technology assist company to sustain in market for longer time period. With reference to
TESCO, it make use of innovative technology so that they can improve its performance level and
gain leading position at marketplace. In order to make employees know about technology and
how to use it, the company provide training and development session to them in a digitalised
manner. This impact directly on the training and development practice of respective organisation.
Organisational culture: This internal factor plays an important role and directly impact
on the employee relation practice of human resource management. It consist of values, beliefs,
opinions and culture of employees prevailing within the company. In relation to TESCO, it has
shops or branches globally that consist of diversified workforce. In order to maintain effective
relation with employees, HR develop strategies accordingly and also make changes as per the
necessities and business situation as well.
Rewards & Compensation: Nowadays, companies are shifted towards providing
digitalised rewards and recognition in order to enhance performance of employees ad make use
of innovative technologies at workplace. For this, TESCO is required to change the way by
which they provide rewards and appreciation to employees (Järlström, Saru and Vanhala, 2018).
It shows that such internal factor impact on the human resource policies and practices as well
that help in raising performance and profitability of company.
From the above discussion, it is analysed that it is important for HRM of respective
organisation to consider internal and external factors so that there is positive impact of human
resource policies and strategies on employees. In addition to this, it assist company to attain
higher growth and development at marketplace.
TASK 2
P3 Theories & concepts associated to the development and growth of strategic human resource
management with examples
Human resource management concepts as well as theories plays an important role in
order to gain higher growth and success at marketplace. In addition to this, it is significant for
HR manager to make use of effective concepts & theories as it impact directly on SHRM. The
theories and concepts of Strategic human resource management is given below:
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Flexible working arrangement: It is defined as a effective theory and herein company
provide flexibility of working hours to the employees so that they can work according to their
suitability. In addition to this, it is consider as a programme which are developed for the staff
members in order top provide greater programming exemption due to which they attain higher
position and objectives as well. Flexible working arrangement also consist of job sharing,
telecommunication, compressed working weeks and many more. Providing of all this
arrangements assist an organisation to improve the efficiency and performance of employees that
has positive impact on profitability of company.
Performance management: It is defined as a tool which help a company to analyse the
performance and efficiency level of employees in an effective manner. In addition to this, it
assist in gaining insight about where employees lack so that an effective strategy is developed in
order to improve their performance level (Korff, Biemann and Voelpel, 2017). It is a complex
function of strategic human resource management that assist implementing activities due to
which objectives are attained on time period. In relation to TESCO, it make use of such concept
in order to measure performance of employees & develop the performance of staff members. It
help respective organisation to improve its market performance and gain leading position at
marketplace.
E-recruitment: It is defined as an online procedure which is adopted by TESCO in order
to place effective employee on the vacant position. In addition to this, it is the way to approach
potential candidates by using electronic source that is internet. In the present time, TESCO make
use of internet and advertise for vacant position on social media platforms so that they can reach
large number of people with short span of time. E-recruitment procedure involves finding of
right candidate, assessing, interviewing & hiring them according to the job specification. This
will help company to save their cost of hiring that impact positively on revenue of TESCO.
The 540- performance appraisal: In every company, the performance is evaluated by
higher authorities on continuous basis so that they can gain knowledge about performance of
staff members and improve it on time period. This concept impact positively on efficiency and
capabilities of staff members as it motivate them to work with full potential and meet with the
targets of company (Banfield, Kay and Royles, 2018). 540 degree performance appraisal is same
as 360 degree performance concept but it add an extra dimension that is feedback. It involve
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higher authorities, subordinates, peer group and clients as well. Moreover, this concept of SHRM
impact positively on productivity as well as profitability of TESCO.
TASK 3
P4 Evaluation of how change management models support human resource strategy
Change is inevitable and important to consider by an organisation so that they can sustain
in market for longer time period. In addition to this, it is significant for a company to accept
changes in order to gain higher growth and development. It is determined that if the changes are
executed properly than it is needed by the higher authorities to develop objectives associated to
it. There are many change management models that help an organisation to bring changes in an
effective manner without any issues. This are discussed below:
K otter's 8 step change model
This model was developed by John Kotter in the year 1996 and is involve the overall
process of change. In addition to this, it is an effective model in order to absorb and implement
change in an appropriate manner. The steps of this model is given below:
Step 1: Create urgency: It is the first step and herein a scenario is developed in order to
the potential threats as well as opportunities of threats (Macke and Genari, 2019). In addition to
this, suggestions is taken from senior authorities and employees in order to make changes in an
effective manner.
Step 2. Forming powerful guiding coalition: At this stage, senior authorities and HR
professionals analyse the essential alignment in order to make better change and for this they
develop a powerful guiding coalition.
Step 3. Develop a vision: TESCO has a clear vision to attain leading position and strong
organisation in providing retail products and services. For the change, the higher authorities of
company set expectations and vision for employees so that activities is implemented accordingly.
Step 4. Communicating the vision: After the development of vision, it is then
communicating to the employees of company in a proper manner. It is important for TESCO To
ensure that vision is fit in the mind of staff members positively.
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Step 5. Remove obstacles: It is one of the important aspect in context of managing
change and bring it in an appropriate manner. In addition to this, it is important for HR
professionals and higher authorities to analyse the level of risk associated with change so that
effective strategies is developed in order to deal with future issues.
Step 6. Developing short term wins: It is determined that development of short term
targets assist an organisation to achieve it easily and it is also expensive for company.
Step 7: Combining gains: In this stage, Human resource professionals of TESCO collect
all the success and experiences of individuals in order to get collective results in an effective
manner (Rees and Smith, 2017).
Step 8. Anchoring change within the corporate culture: It is the last step of change
model and herein company ensure that the change is an important part and is visible in each
aspects of company.
Lewin's three step change model: It is another model of change that consist of 3 step that is
unfreeze, change and freeze, which are as follows:
Step 1. Unfreeze: It is the initial stage of bringing change which help in developing
attitude in order to roll out improvements. In addition to this, unfreeze step is associated to
effective change & tried to convenient the procedure in a proper manner.
Step 2. Change: Herein, a proper schedule is developed in order to gain insight about the
requirements of change as well as variations. In addition to this, change is implemented at this
stage in a positive behaviour.
Step 3. Freeze: At this stage, people are advised to accept changes that is taken place by
higher authorities with a view to attain higher growth and development of organisation.
Psychological contract: It is the responsibility of an organisation to focus on keeping
relationship & to recognize it on actions. It is stated that the mental contract directly alludes to
unwritten way of making relationship as classified business contract and formal as well (Safa,
2017). The mental contracts influence directly on mind of employees and decline their overall
productivity. The human resource manager and higher authorities of TESCO can adopt this
change model by executing plans as well as strategies so that better forecasting and change is
managed in an appropriate manner.
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TASK 4
P5 Discussion about how Human resource outcomes can be measured and monitored
Performance measurement and monitoring assist in gaining knowledge about where an
organisation lacks and in what areas they need improvement. In addition to this, it also assist in
bringing changes as per the requirement that impact positively on performance of company.
There are various approaches by which human resource outcomes can be measured and
monitored in a proper manner. These are discussed below:
Best fit perspective: Human resource techniques required to assess the particular
requirements of both employee and association as well. In addition to this, best fit perspective
method signifies the importance guaranteeing that human resource methodologies are suitable
and appropriate for the situations. In addition to this, it is beneficial for TESCO to develop
strategies that help in better control and engagement of employees by which HR outcomes can
be measured.
Benchmarking: This approach empowers a company to analyse the performance by
setting benchmark as it help in implementing activities accordingly and attain objectives within
stipulated time period. It is effectively take when TESCO consider al the duties and review it in
an appropriate manner. IN addition to this, respective organisation can acquire such approach by
benchmarking it with different association as it assist in gaining positive and favourable
outcomes.
10-c Checklist of HRM: Human resource management professionals proposed various
models in order to clarify, translate & advocate HR practices and approaches tuned into a
specific system (Stewart and Brown, 2019). It is consider as an effective model of HRM and is
perceived as inclusive & minded model by which human resource outcome is monitored and
evaluated in an effective manner.
P6 Evaluate how Human resource management & development support sustainable growth and
performance to meet business objectives
Sustainable growth is defined as an economic growth which can remain continue over the
long time without developing intolerable pollution & without using non-renewable resources. In
addition to this, control as well assessment of task is needed for advancements and attainment of
objectives. It is determined that HRM analyse all the requirements of surroundings so that can
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make organisation grow sustainably and effectively. It is important for an organisation to deal
with the environmental issues in order to enhance its brand image and to make improvements
within the working conditions.
For example, reasonable improvements within the organisation is adopting strategy in
order to attain long term objectives & meeting with the targets as well, In addition to this, the
long haul input instructing in an organisation to develop a yield within connection of hierarchy
goals as well as objectives that us an unmistakable interaction of practical human asset &
authoritative implementation. It involves various advantages which are as follows:
Providing employee retention: It is significant for an organisation to retain its
employees by analysing their requirements and satisfying them in a proper manner. By providing
job security and by giving rewards and appreciation to employees, an entity is able to develop
morale of employees that positively impact on their performance and profitability level. Increase
in performance of employees helps company to remain sustainable at market and contribute
towards the development of economy. This assist in developing value at marketplace in an
effective manner.
Analysing performance gaps: Human resource professionals focuses on making
adjustments in order to adapt change in an efficient and effective manner so that the overall
procedure is implement which is beneficial to the company for the long-term (Zaid, Jaaron and
Bon, 2018). The higher authorities of TESCO is mainly focuses on developing plans so that they
can analyse gaps for better implementation of change. This assist company to effectively deal
with the challenges and situations that occur in future.
From the above discussion we can asses that HRM is responsible for overall growth of an
organisation, as it helps employee's of an organisation to reach their full potential , acquire new
skills, and learn teamwork so they can maintain healthy relationships with their employers and
co-workers . This leads to maximum satisfaction of the workers and helps the company in giving
quality service to its consumers. In context of retail giant TESCO HRM and HRD plays a
significant role in its success. As the firm's employees come in direct contact with their
employees each day, their behaviour impacts their image of delivering premium customer
experience. Therefore when HRM builds positive atmosphere in and motivated workers by
giving them incentives and valuing their viewpoints customer service standards are increased
substantially. HRM monitors employees and gives them responsibilities in accordance with
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their abilities, they decide if an employee should work in customer service or handle inventory.
Regular exercises held for an employees continuous and comprehensive evolution help the
respective company maintain its positive status all across the globe. Such sessions conducted by
the organisation creates workers who are interested in working diligently because the see
themselves grow with the company. All these practices adopted by HRM help TESCO
construct a loyal customer base and grow exponentially.
CONCLUSION
From the above study, it has been concluded that strategic human resource management
plays an important role in attracting and retaining employees prevailing in company. In addition
to this, it is important for HR manager to focus on internal and external factors that impact on
HR practices and strategy as well. There are various change management models that is used by
business entity in order to implement change in an appropriate manner and these are Lewin's
model, Kotters model and so on. Moreover, it is analysed that HR approaches such as
benchmarking, KPI and many more assist in measuring and monitoring HR outcomes in an
effective manner.
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