Strategic Human Resource Management Analysis: Tesco - Unit 21 Report

This report provides a comprehensive analysis of strategic human resource management (HRM) within Tesco, a prominent UK-based retailing company. It begins by examining current and emerging trends influencing HRM, such as technological advancements and globalization, and how Tesco's management can leverage these trends to enhance productivity and market position. The report then delves into the impact of internal and external factors on Tesco's HRM strategies, including corporate goals, expansion plans, and financial strategies, as well as political, economic, social, technological, legal, and environmental (PESTLE) factors. Furthermore, it discusses various theories and concepts related to growth and development within the organization, including planning, organizing, decision-making, and monitoring, alongside leadership styles. The report also explores change management models and evaluates the effectiveness of HRM outcomes, concluding with insights into how Tesco can optimize its HRM practices for sustainable performance and competitive advantage.

Unit 21- Strategic Human
Resource Management
1

Table of Content
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1 Latest and emerging trends that influence human resource...................................................3
P2 Impact of internal and external factors on human resource...................................................5
P3 Discuss theories and concepts related to growth and development.......................................7
P4 Change management model...................................................................................................9
P5 How HR outcomes can be monitored...................................................................................10
P6 Evaluate the effectiveness of HR management....................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
2

INTRODUCTION
Human resource is considered as most valuable aspect which emphasise on hiring and
recruiting a candidate for filling the respective job positions so as to gather more growth in a
workplace (Armstrong and Taylor, 2020). They are constituent and core part of an organisation
which determine the overall functioning and controlling every aspects of a business in a desirable
and successful manner. This report is based on Tesco which is popular retailing company
situated in UK. It provides excellent offerings with wide varieties such as groceries, food
products, toys, stationaries and other household appliances. It emphasises on working in different
operation such as financial services like banks, mobile operations and has gained strong global
presence by generating maximum satisfaction of customers across the worldwide. This report
comprises of several current trends and internal and external factors that has greater influence on
human resource strategy. This report covers of various theories and concepts related to growth
and development as well as changes management model that provide extensive support to human
resource strategy. At last, this includes evaluations and outcomes of human resource which
provide sustainable performance.
MAIN BODY
P1 Latest and emerging trends that influence human resource
Human resource plays a vital role in an emerging corporate world as they promote new
and latest ideas which boost the productivity and growth in a workplace (Armstrong and et.al,
2016). This play several functions such as staffing, training and development and hiring a
potential candidate so as to improve the overall effectiveness and thus involve monitoring and
directing of activities which bring proper coordination. In a changing era, they also adopt
changes quickly as they conduct extensive research and development so as to examine advanced
and latest technology and other current trends. The top manager of Tesco would use current
trends which are elucidated below:
Create technical awareness: The manager of Tesco would use new technology in their
workplace as the use of artificial intelligence has changed the entire market scenario and has
bought huge revolutionise in retailing sector. The robotics would be used in Tesco that render
3

proper information among the clients and help in conducting fast operations of a business. This
would assist the respective firm to minimise the number of staff and promote more use of
technology which ensure transparency and ease of convenience.
Mode of Globalisation: Globalisation facilitate free flow of movement of goods, ides,
people across the boundaries of the countries. This allow Tesco to expand their business at a
global market and also provide better transportation and communication facilities which ensure a
prominent marketing position across the globe (Bailey, Mankin and et.al., 2018). This also
allows to generate maximum exposure and focus on abiding all laws and legislations so as to run
smooth flow of activities. This provide easy transportation of goods from one place to another
which aid in accomplishment of targets within limited time period.
Attract talented workforce: The senior authority of Tesco invites the ideas and
suggestions of subordinates so that they could work with zeal and encourage and motivates them
which improve their overall performance and achieve efficiency. They follow a proper
recruitment and selection procedure which aids in getting suitable candidate and thus improves
the overall operations of a company. They emphasise on using a different and innovative
technique and promote advanced ideas which assist in taking best decisions and facilitate proper
cooperation and coordination within the confines of retailing industry.
Focus on quality specifications: The senior executive of Tesco would apply the principle
of total quality management and just in time which lead to optimum usage of resources. It also
focuses on maintaining sufficient level of inventory due to the risk of obsolescence and theft or
spoilage. They make continuous improvement in merchandise or services by removing various
defects or errors and take corrective actions which assist the firm to generate a positive
reputation around the globe. The top manager of Tesco would acquire merchandise in giant
quantities by minimising the cost of production and improve the profit margin in a retailing
sector.
Rendering several learning programmes: The leader of respective would conduct
several workshop and seminars so that knowledge and skills of employees could be enhanced.
They also provide training and development programmes so as to sharp their skills and to make
them capable of handling challenging position which make their workforce superior and
effective which in turn promote a growth and thus promote a healthy environment in a retailing
industry.
4

These current and latest trends would allow Tesco to generate greater sales and
productivity and also allow them to become a prominent leader within market. This accelerate
market share and allow it to gain strong rivalry edge as compared to its competitors such as
ALDI, Amazon. Sainsbury and Walmart.
P2 Impact of internal and external factors on human resource
The internal and external factors help the firm to determine the internal capabilities and
then scan macroenvironment factors such as GDP, level of competition and employment and
distribution of income in order to achieve a competitive advancement (Bratton and Gold, 2017).
These are detailed in a more prescribed manner as follows:
INTERNAL FACTORS: These involve those attributes and characteristics which are
controllable and managed by the owner of a company. With reference to Tesco, the same is
described below:
Corporate goals: The leader of Tesco would create a strong vision and is highly
committed towards the objectives which help in meeting their targets. They possess strong
communication skills and influential skills which promote a positive environment and a sense of
team spirit among them. They follow unity of command which avoids disputes and confusion
among their subordinates.
Expansion plans: The chief executive officer of Tesco would make a planning regarding
the expansion of operations in different parts of country so as to achieve maximum exposure. For
this, they would conduct extensive research so that they could develop branch or outlets in
certain regions and help in maintaining smooth activities within a marketplace. As a result, this
provides multiple streams of revenue and maximise the productivity.
Financial strategies: The finance manager of Tesco would make proper strategy
regarding the utilisation of funds so that they could focus on diversification and modernisation in
a business in a best possible manner. They make investments and grab every opportunity so that
they could earn greater return on investment. This increase their asset and capital expenditure
within the confines of retailing sector.
Cordial relation with suppliers: The manager would create mutual relation with
suppliers and ensure strong distribution of network so that they would get timely availability of
merchandise of best quality in a proper time period. They also get idea about the quality and
5

quantity of merchandise as suppliers have an excellent idea which increase the sales within a
marketplace.
EXTERNAL FACTORS: There are beyond the control of company so the manager of
Tesco would use PESTLE analysis to determine the availability of resources which is presented
as follows:
Political factor: It consist of various elements such as corruption, antitrust laws, political
stability, and so on. UK has multi party system as it consists of two parties such as conservative
and labour party and has great stability of politics in the country (Brewster and et.al., 2018). The
exit of Britain from European Union, namely Brexit which affect the operations and result in
negative consequences. This allow the respective firm to remain constant with similar operations
of business due to the reason of constant ruling parties.
Economic factor: These covers GDP, monetary and fiscal policies, national income, per
capita income, level of employment and many more. The vote for Brexit has created an
unimaginable chaos and adversely affect the operations of a company. Foreign Direct Investment
provide an opportunity to Tesco to generate more revenue and help in diversification and
modernisation in a respective time period. This generate more sales and accelerates the profit
margin within retailing sector. They attract best and talented workforce and thus maximise the
productivity in a marketplace.
Social factor: It includes several elements such as lifestyle and emerging modes of
customers, diet consciousness, health consciousness and their taste and preferences. UK being
the developed country has one of the best infrastructural facilities as the customers are diverse in
nature and prefer high standard living and great educated people (Donate, Peña and Sanchez de
Pablo, 2016). The manager of Tesco would emphasise on great quality of merchandise by
looking towards the emerging trends as customers are more health conscious and also provide
corporate social responsibility which generate positive reputation across the globe.
Technological factor: This consider various factors such as research and development,
technical awareness and many more. UK has advanced and innovative technology in the world
so the manager of Tesco would greatly use sophisticated machines which simplify the overall
working procedure and artificial intelligence aids in gaining competitive advancement. This
develop a significant image and improve the overall market share and thus raise the productivity.
6

Legal factor: These includes copyrights, patent, trademarks and other intellectual rights
which provide protection towards such rights. The senior authority of Tesco would provide
employment and health and safety laws in order to promote the interest of workers which create
a healthy environment. It also abides all rules and regulations and maintain proper code of
conduct which facilitate smooth flow and improve the overall effectiveness and efficiency in a
workplace.
Environmental factor: It consist of several aspects such as pressure of NGOs, climate,
weather and many more. Government has taken several measures so as to provide protection
towards environment so the manager of Tesco would adopt the strategy of reduce, reuse and
recycle so as to achieve sustainable development (Galli, 2018). The concerned firm reduces
carbon footprints and avoid the use of plastic bags and also it uses renewable source of energy
which generate goodwill within retailing sector.
P3 Discuss theories and concepts related to growth and development
It provides various guidelines and norms and behaviour which assist the firm to
implement and execute proper planning which help in attainment of task in a respective time
period. In the context of Tesco, various concepts and theories are discussed below:
Concepts:
Planning: The top management of Tesco makes an appropriate planning by deciding
proper course of action from the various available alternatives which boost an immediate action
and bring proper coordination. They also make proper resource utilisation such as manpower,
material and machines to get maximum level of output.
Organising: This involve proper division of work by establishing delegation of task and
establishing authority and responsibility among them (Hayes, 2018). The manager of Tesco
facilitates proper systematic working procedure and abide several rules as they maintain proper
hierarchy organisation structure which tends to eliminate duplication of activities and facilitate
proper cooperation in a workplace.
Decision making: They emphasise on promoting the ideas and suggestions of
subordinates and also stakeholders play an important role which includes investors, shareholders,
employees and many more which render an excellent advice and thus aids in taking best and
innovative decision.
7

Monitoring: The senior authority of Tesco would emphasise on controlling and
monitoring the activities of subordinates by judging the accuracy of standards which light the
deviation in future. They ensure proper discipline by comparing the actual performance with
standards and measure deviation and take corrective actions immediately.
Theories: These are described below with reference of Tesco and Aldi:
Democratic style: This theory is understood as participative decision making which
allows employees to consider their ideas and opinions as to make them feel that their presence is
important and make them satisfied and delighted (Kamble, Gunasekaran and Gawankar, 2018).
This assist the manager of Tesco to increase the level of job satisfaction and employee retention
whereas the manager of Aldi also considers the ideas of low-level managers and implement them
so as to get positive outcomes. This accelerate the productivity and maximise the source of
revenue in a marketplace.
Theory X and Theory Y: this theory is developed by Mc Gregor. This theory is similar to
coins which has both sides such as head and tails so like this also both theory X and Y are two
different aspects which are opposite towards each other. Theory X reflect a negative behaviour in
which employees are not ready to accept responsibilities and does not accept changes as there is
high chances of job security. Theory Y is optimistic in nature which reflect positive attitude as
subordinates are more creative and resourcefulness in nature who render an expert advice in
solving problems and also this promote the loyalty of employees by accomplishing task in a
limited time period. The senior authority of Tesco implements this theory so as to accelerate
productivity and achieving greater success in future whereas the manager of Aldi emphasises on
motivating their staff and assign work to them in accordance of their skills and capabilities that
produce desirable outcome and ensure more effectiveness.
Vroom expectancy theory: This theory is most popular nowadays as employees feel
motivated and accelerate the rate of productivity at a fast pace (Konrad, Yang and Maurer,
2016). The manager of Tesco has more expectations from their staff as they believe that their
efforts would lead to successful results and enhance a greater growth. In relation to this, the top
authority of Aldi would believe more on rewards and recognition so they provide various
financial and non-financial incentives to them so that they could feel motivated and would work
with enthusiasm and zeal.
8

P4 Change management model
Changes is very necessary in an era of globalisation as there is transformation and radical
improvements in overall structure (Marchington, Kynighou, Wilkinson and Donnelly, 2016).
There is fast change in rate of technology, taste and preferences of customers and many more so
by looking these firm also modified their working style and procedure. In the context of Tesco,
various change management models are depicted as follows:
Kotter’s change model: the eight aspects of this model are showcased beneath:
Accelerate urgency: The senior officer would identify several positive and negative
aspects of a business entity and grab each and every opportunity by making proper discussions
regarding innovation and thus facilitating proper changes in an organisation in a desirable
manner.
Build an efficient team: The leader would request the involvement of stakeholder while
promoting any changes in a workplace and work together for attainment of common goal by
forming a strong coalition (Rees and Smith, 2017). The powerful and effective team would
promote a sense of strong team spirit which bring proper coordination and cooperation in a
workplace so that task is achieved within a short span of time.
Create a strong vision: The manager of respective firm would emphasise on creating a
powerful vision and allow people to understand them in an appropriate manner which ensure
success and provide an enormous opportunity to firm by combatting threats.
Communication skills: The senior authority of Tesco would interact and communication
regarding several changes amongst their staff in a patience and calm manner among their staff as
it helps them to prepare themselves for higher positions and additional responsibilities which
boost their career with success and prosperity.
Implement an action: The top manager takes direction of action by analysing the
organisation structure and culture as it promotes a sense of belongingness among them. Tesco
provides rewards and recognise the efforts of subordinates and appreciate them which create a
positive atmosphere.
Develop short term wins: The manager of Tesco prepares short term goals which
consumes less time and are less expensive and help in meeting up with targets in a short period
of time as it promotes excellent growth within retailing sector. They do not emphasise on
preparing long term strategy as it led to various obstacles which hamper the success of a firm.
9

Doesn’t give up: The leader of Tesco focus on making constant improvement in their
overall structure and process and identify the weaknesses and spot them immediately by
corrective actions by eliminating deviations.
Make strong modifications: This last aspect emphasises on making changes in culture
which is visible to every core aspect of an organisation as it provides an extensive level of
support to leader and manager through success stories of initiating changes in an organisation.
Lewin’s change model: The three stages of model are given beneath:
Unfreeze: This first stage helps Tesco to make necessary modifications by preparation of
an appropriate strategy and also there must be proper balance that provide a meaning sentence
which aids in accomplishment of targets by making changes in a dynamic environment (Roth,
Valentinov, Kaivo-Oja, and Dana, 2018).
Change: In this stage, people in Tesco are ready to accept changes and understand each
and every aspect and determine an optimum solution of issues involved as it promotes systematic
working procedure. Efficient time and proper interaction among personnel would help in
occurring transformations in a successful manner.
Freeze: This stage involves the curiosity of people to make predictions after
incorporating several changes. Employees of Tesco also feel stable and provide a new way and
method of working and make them feel satisfied as it reduces the boredom by facilitating
changes in a desirable manner.
P5 How HR outcomes can be monitored
Evaluating the effectives of human resource management is essential in a business
enterprise as it contribute towards more success and provide more growth prospects of a
corporation. By referring to Tesco, the same is incorporated as follows:
Audit approach: The manager of Tesco would use this approach by determining proper
accuracy and speed of delivering task and allocate resources in a coordinated manner. This
ensure a high degree of success and aids in meeting targets within limited time as it constantly
check the work of personnel which enable them to improve their performance.
Balance scorecard: It is a performance metric that provide the firm to measure, identify
and control the aspects of business by formulating an appropriate strategy that provide a brightest
future (Shelygov, Filonova and Gorlova, 2019). One of the biggest advantages of using balance
scorecard is that it makes communication easier and provide better alignments of a business
10

which produced optimum results as it provides a clear picture and connectivity in case of Tesco.
This improves the overall productivity and also it measures a rate of success.
Benchmarking: This assist Tesco in identifying several gaps present in marketplace and
provide a company to measure the overall performance which involve in day to day operations of
a business. The top manager of respective firm involves in preparing an effective strategy and
collect more information with the help of primary and secondary data which improve the overall
effectiveness and ensure more strictness and discipline in a workplace and facilitate proper
coordination. It also monitors the performance of a company set performance standards against it
so as to achieve targets in a predetermined time period.
P6 Evaluate the effectiveness of HR management
The senior authority of Tesco would provide compensation benefits and incentives plus
bonus among their staff so that they could achieve individual and organisational objectives in a
proper time period. Several ways to gain sustainable performance in context to Tesco is given
beneath:
Performance appraisal: This is most essential strategy which allows a group of
individuals to perform their best so that they could enriched with positive outcomes. For this, the
manager of respective firm inspires and encourage their staff with incentives, bonus and
compensation benefits which provide a high chance of success and help in meeting future
targets. This enhance greater exposure and allow he firm to gain a more employee retention for
longer time period.
Implement change management: The business environment is considered as flexible so
the top manager of Tesco would facilitate change management models such as Lewin’s model so
as to grab fast modification in a business with greater transparency and thus improve the
measurement of success by achieving a rivalry edge within marketplace.
Excellent apprenticeship programme: The leader in case of Tesco would provides
specialised training and development among their staff so as to make them capable of handling
new and advanced technology and also this boost the knowledge base and skills and inculcate
confidence and positive attitude among them (Stewart and Brown, 2019). It is necessary to
polished their skills and capabilities which in turn maximise the overall performance as every
one is aware of its roles and responsibilities in a workplace which ensure a prosperity of success.
11

Use of Modern technology: The manager of Tesco would use Enterprise resource
Planning (ERP) which aids in facilitating decisions by grabbing opportunities and thus
coordinating and monitoring the overall activities of a business enterprises and thus improve the
overall efficiency in case of retailing industry.
Therefore, these are the suggestions that are provided to Tesco to support growth and
sustainable performance which help in accomplishment of business objectives successfully.
CONCLUSION
From the above-mentioned details, it can be comprehended that human resource performs
different functions such as planning, recruitment and selection procedure and staffing and also it
conducts orientation and induction programmes which help in attainment of goals. The tends to
implement current trends such as adapting new technology, attracted workforce and many more.
The internal and external factors are also analysed so as to determine the accessibility of
resources and allocate task in a most appropriate manner. Several change managements models
such as Lewin’s model and Kotter’s model help in combatting threats and bring transparency and
efficiency. Various suggestions for improving and monitoring HR strategy are also analysed in
this report such as apprenticeship programme, performance appraisal and many more which
boost the greater success in future.
12