Strategic Resource Management Report: Tesco's HRM and Resources

This report provides a comprehensive analysis of strategic resource management practices at Tesco, a multinational grocery and retail organization. It delves into Tesco's human resource management (HRM) strategies, focusing on objectives, HRM's contribution, recruitment and retention techniques, employee development methods, and the systematic analysis of effective HRM strategies. The report further examines physical resource management, including the identification of organizational objectives and the physical resources needed to achieve them. It also explores Tesco's marketing objectives and their contribution to overall organizational goals, along with an evaluation of marketing operations. Finally, the report discusses the role of Information System Management (ISM) in Tesco, including planning requirements. The report utilizes various sources to provide a detailed overview of Tesco's strategic resource management approach.

STRATEGIC RESOURCE MANAGEMENT

TABLE OF CONTENTS
Introduction..........................................................................................................................................3
Task1.....................................................................................................................................................3
1.1Objectives and HRM contribution to the achievements of objectives at Tesco........................3
1.2 Role of HRM Tesco...................................................................................................................3
2.1 Recruitment and retention strategies..........................................................................................4
2.2 Techniques used to develop employees in organization............................................................4
2.4 A systematic analysis of the effective strategies an HRM department must use to support the
achievement of organizational strategy...........................................................................................5
1.3 Apprasing process of planning human resource requirements..................................................5
Task 2....................................................................................................................................................6
3.1 Create a table which identifies the chosen organization’s objectives and shows the physical
resources required to ensure achievement of each of these objectives. ..........................................6
3.2 & 3.3 Role of physical resource management in Tesco.............................................................7
Task 3....................................................................................................................................................7
4.1 Contribution of marketing objectives to achievement of organizational goals.........................7
4.2 Evaluating marketing operations of Tesco.................................................................................7
4.3 Process to develop markets........................................................................................................8
Task 4....................................................................................................................................................9
5.1 & 5.2 Role of ISM in Tesco.......................................................................................................9
5.3 Process of planning ISM requirements......................................................................................9
Conclusion............................................................................................................................................9
Reference............................................................................................................................................11

INTRODUCTION
Strategic resource management can be defined as the intention and plan for the way in which
its organizational goals and objectives are accomplished with the help of human resource. Strategic
human resource management (HRM) mainly focuses on developing different approaches which
would help in differentiating its firm from their competitors (Guest, 2011). The present report will
review and discuss strategic human resource management practices that is adopted by Tesco. Tesco
is one of the British multinational grocery and retail organization. Tesco has introduced high
involvement in managing its human resource in order to satisfy its employees. Tesco implements
strategic HR as a change agent which helps the firm to gain competitive advantage. The present
report has focussed on areas like human resource management practices and management of
physical resources at Tesco. Further, it covers the marketing strategies adopted in Tesco. Lastly, it
focuses on Information system management used by Tesco in order to achieve goals and objectives.
TASK1
1.1 Objectives and HRM contribution to the achievement of objectives at Tesco
Main objectives of Tesco are:
 To offer customers the best value in terms of money and best competitive price (CHUANG
and Liao, 2010).
 To develop the existing skills in its employees through sound management and training
practices and often rewarding its employees and providing equal opportunities.
 To support well-being of community and protection of environment.
 To work closely with suppliers and to build long term relationships with them that is based
on strict quality and price criteria (Jiang and et. al., 2012).
The contribution of human resource management towards achieving the objectives of Tesco
can be understood as first of all, HR department is concerned about the staffing function in
company. In this way, by recruiting the best and talented employees in Tesco contributes in
achieving the objectives at Tesco. One of the objectives of Tesco is to develop the existing skills of
its employees. However, in order to fulfil this objective, the HRM at Tesco provides continuous
training and development activities so that the staffs at Tesco are able to develop its existing skills
(Salaman, Storey and Billsberry, 2005). This helps to improve the performance of employees which
ultimately contributes to the overall achievement of company's goals.
1.2 Role of HRM Tesco
In every organization, human resource management plays a very crucial role for meeting the
goals of company. Therefore, the roles of HRM at Tesco include following:

 Collaboration: Tesco being a large retail company has to manage various activities within
specified given time (Chen and Huang, 2009). Therefore, the managers and HR
professionals at Tesco continuously work together in order to develop the employee’s skills
and abilities. If employees do not perform their roles and responsibilities effectively, then it
would negatively affect the performance of the Tesco. For example, HR professionals at
Tesco advice managers and supervisors the way to assign employees at different functions
and if they do not perform their roles properly, then it would affect the firm negatively.
 Hire, train and retain employees: The role of HRM at Tesco helps company to provide the
right type of personnel. However, even training arrangements are made available to the
employees at Tesco in order to give training to employees and help them to enhance their
skills(Ngo, Lau and Foley, 2008). This role is played by HR managers and they have to very
careful in selecting the best candidate who would be capable enough to support the firm in
achieving their desired goals and objectives. In addition to this, the HRM team are very
helpful for the employees to serve company for longer duration. Problem occurs when they
fail in selecting the skilled and capable candidate. It may also result in increase in cost.
 Employee’s relation: HRM team at Tesco helps to maintain employee’s relation. Whenever
conflicts or disputes arises among employees and employers, HRM team manages are
responsible to handle the situation accordingly and they would focus on reducing and in
solving the disputes among employees. If they do not perform their role properly, then
conflicts would cause more problem for Tesco. Therefore, it can be said that the role of
HRM is to build good relations among workforce (Rynes, Giluk and Brown, 2007).
2.1 Recruitment and retention strategies
Tesco should select employees who would be helpful in achieving their goals and objectives
easily. For this purpose, company follows structured process of recruitment which attract
applicants both for managerial and operational roles. Tesco uses different types of tolls for
advertising available jobs. The process of recruitment varies according to the job's vacancy
available (Mello, 2014). Tesco first looks at the internal talent to fill up the vacancy. This is the
process where employees are moved either at same level or on promotion. If Tesco does not have
employees to fill the required post, then for this purpose Tesco advertises its post internally for 3
weeks on Intranet. Through this, referenced candidates are selected for the current vacancy. The
only problem in this process is that candidates have to regularly check company website so as to
know the vacant post available at Tesco.
Moreover, the retention strategies which are adopted at Tesco in order to retain the
employees in company include introducing recognition programmes in the organization (Armstrong

and Taylor, 2014). If employees are recognised, then they will feel motivated and can be retained in
company. Even, HR department can provide rewards and incentives to its employees which are
based on the performance which will help them to sustain in the company. In retention, HR
managers should be able to understand the needs and requirements of their employees and if they do
fulfil them, then employee’s could be retained.
2.2 Techniques used to develop employees in organization Job rotation: The managers at Tesco uses job rotation method in order to motivate the
employees who help them to enhance and develop the existing skills and to learn new
abilities to perform the work (ÇALIŞKAN, 2010). On the other hand, if they do not perform
such rotations, then employees would not be able to perform properly as they will get board
of performing the same job again and again. Team building: In every team, there are individuals who have their own expertise in their
own areas. This helps the employees to work in team and to learn and to built up new skills
from the team members. if all the member shave same set of skills, then they will not be able
to learn new things. Performance appraisals: Managers at Tesco continuously look towards the performance of
their employees. This evaluation of performance is based on certain standards which done
on the basis for evaluating the performance of employees (Wright and McMahan, 2011). In
case, if these standards are not met, then the managers provide proper guidance to
employees to perform the work. These timely feedbacks help the employees at Tesco to
understand areas in which they lack. If such king of feedbacks are provided by the
management, then employees will not get to know the areas in which they need more
improvement. Adequate learning opportunity: The HR department at Tesco has made arrangements for
providing adequate learning opportunities to their employees. In this process, they assign
their employees with tasks which they have never attempted or performed before. This acts
as challenging task for employees and this is helpful for the employees to gain new learning
(Collings and Mellahi, 2009). Hence, it will help the employees to learn new things.
 Additional responsibilities by team mangers to employees: Another method which is used by
Tesco is for making employees accountable for their teams. In this way, employees will try
to learn more and new additional skills and abilities (Moliterno and Wiersema, 2007). They
would feel confident and would work more hard to perform more effectively and efficiently.
If Tesco don not provide their employees with additional roles or responsibilities, then they
would feel neglected and demotivated.

2.4 A systematic analysis of effective strategies an HRM department must use to support the
achievement of organizational strategy
One of the crucial aspect of human resource department of Tesco is associated with the
development of different tactics and strategies along with implementing them at the workplace. In
this context, it may not be wrong to say that relevant authorities need to pay a lot of attention to it in
order to work effectively and to contribute towards the attainment of organizational goals and
objectives (Sani, 2012). Herein, management at Tesco pays a lot of attention to its HR strategies and
indirectly attempts to attain the corporate objectives. One very critical aspect of this is associated
with the motivation of employees. It is an important part because of the reason that more the
employees are motivated; the better would be their performance (Bondarouk and Ruël, 2009). The
company to motivate its employees treats the working environment as a vital component. In this
context, the workplace has been developed in such a manner that it makes tasks and duties for the
employees simpler and more effective. Furthermore, training and development sessions are
organized on a regular basis so that skill set of workforce can be enhanced and they can be
motivated extensively. Essentially, motivating the employees has proved to be very beneficial for
the retail firm because it has lead to workforce becoming more dedicated towards the company
(Lengnick-Hall and et.al., 2009).
1.3 Appraising process of planning human resource requirements
A very crucial aspect that has to be paid a lot of attention towards in terms of human
resource management is to plan for human resource requirements of company. There are certain
stages which have to be completed for conducting the process of human resource planning in an
efficient and effective manner. The first phase in this context is to assess organizational needs and
demands. Herein, thorough internal analysis of workplace must be conducted so as to become able
to assess the needs and demand of workforce at the workplace (Sirmon, Gove and Hitt, 2008).
Carrying out this phase will enable the authorities to determine requirements of people in company.
Herein, tools of internal as well as external analysis can be very helpful. Internal analysis will
provide information regarding the demand of people at the workplace while external analysis would
help in identifying the trends that are prevailing in the human resources market. Next demand
forecasting will have to be made. This will help in predicting the demand of human resources that
could occur at workplace in the near future. Demand forecasting is very useful in the whole process
largely because of the reason that it would keep authorities informed on the number of people that
they might have to recruit in company (Kang and Snell, 2009). Through this stage, process of
human resource's management can be made efficient and effective.

TASK 2
3.1 Create a table which identifies the chosen organization’s objectives and shows the physical
resources required to ensure achievement of each of these objectives.
Objectives Physical resources Resource management
implications
To offer customers the best
value in terms of money and
best competitive price.
Sales and customer services
personnel
Improvement in customer
services and effectively catering
demands of customers
To develop the existing
skills in its employees through
sound management and training
practices. Also, often rewarding
its employees and providing
equal opportunities.
Trainers, i.e. manpower Performance of employees can
be enhanced by significant
margins. Along with this,
employee loyalty can also be
obtained through it.
To support well-being of
community and protection of
environment.
CSR related infrastructure Brand of company can be
enhanced.
To work closely with
suppliers and to build long term
relationship with them. This is
based on strict quality and price
criteria.
Financial Resources Development of healthy
relations with suppliers and
retaining them for a long term.
Additionally, quality of
products and/or services of
company can be improved
considerably.
3.2 & 3.3 Role of physical resource management in Tesco
A very crucial and important aspect of managing business functions is related to managing
physical resources which company might use (Bratton and Gold, 2012). It is important mainly
because of the reason that it has a direct impact over functioning of enterprise and it also enables
functions in an effective manner by making the process of attaining organizational goals and
objectives simpler. Physical resource management is very important for firms such as Tesco,
because it helps companies in attaining its goals and objectives effectually. By considering the
operations of Tesco, physical resources can be in the form of buildings, machines, etc. and it is
imperative that management pays attention towards managing these physical resources in an

effective manner. For this, they can bring a difference between success and failure for the company
(Huemann, Keegan and Turner, 2007). Thus, the role played by physical resources is very crucial
for company. In this sense, it may not be wrong to recommend to management of the firm that they
must consider procuring or obtaining these resources from reliable sources so as to manage them
effectively and to ensure that they would make significant contribution towards the organizational
goals and objectives. Furthermore, it can also be recommended that different theories and principles
must be used in this context so that corporate goals and objectives can be attained easily and
effectively (Storey, 2007).
TASK 3
4.1 Contribution of marketing objectives to achievement of organizational goals
Marketing essentially is a function which entails the conduct of different tasks that may help
in spreading information about product and/or services to the target customers. It is a well known
fact that marketing is a very crucial component to which companies such as Tesco needs to pay a lot
towards the marketing function (Barney and Clark, 2007). The type of such promotional activities
being carried out by the enterprise will have a significant impact over the image of company in the
market. Considering the fact that UK retail industry is one of the highly competitive marketplaces in
country, it is imperative that management at Tesco works to develop a positive image of company
so as to attract the large number of customers and to become able to retain them for a longer period
of time. Furthermore, marketing activities also have a crucial role to play in the process of attracting
customers, developing effective relations with customers and satisfying their demand to a great
extent (Van Buren, Greenwood and Sheehan, 2011).
4.2 Evaluating marketing operations of Tesco
Management of retail firm knows that marketing is of great essence for the enterprise,
primarily because of the reason that it has direct association with that of functioning of organization
and thus, its very existence as well. Various kinds of marketing activities are performed by company
(Schuler and Jackson, 2008). Although, major attention and preference is given towards social
media marketing, this tactic has proved to be of great use for the company mainly because of the
reason that it is a platform that would help the enterprise to reach out to a large number of people
and interact with them. Moreover, a positive image of company has been developed in the market
that has helped in increasing the sales of retail organization.
In addition to it, company also uses a mix of traditional and modern tools of marketing such
as advertising through print media and using electronic mediums like TV, Internet, etc. in order to
market its goods and services (Lengnick-Hall, 2011). By this way, company is able to capture a

major chunk of UK retail market and has been able to sustain at top spots of this industry quiet
easily and comfortably. Tesco Club Card is another scheme through which the firm aims at
marketing its goods and/or services to the customers. This in last some years has proved to be very
beneficial to the enterprise, as through it buyers can purchase goods at a discounted rate and also
earn points on every such purchase. Through it, company has been able to market its goods in an
effective manner (Sani, 2012).
4.3 Process to develop markets
In marketing, organizations should focus on providing quality goods and services and should
also adapt different approaches which would help the organization to grow. As a result,
management of company would get a chance to generate demand for its products according to their
target segments and will be able to develop strategies for understanding demand of customers. In
this context, Tesco uses a three pronged strategy. In the first phase, cited retail enterprise tries to
attract customers from other already existing retail firms such as Sainsbury's, ASDA, etc. (Mello,
2014). By this way, management attempts to dilute its competition in the market while
strengthening its position. In the next stage, company provides high quality of goods and services so
they could attract more customers and this will also build a positive image in the market among
customers. As a result, distinct image can be developed that would help in satisfying the customers
as well as other stakeholders (Armstrong and Taylor, 2014).
While in the third strategy, company attempts to attract the non-users of products and
services. They apply various strategies and tools like sales promotions, advertisements, etc. with the
help of which Tesco is able to attract new customers and to satisfy their demand as well.
Furthermore, for the given retail organization, strategies such as Market Penetration is also helpful
in providing opportunities that would help the firm to enter into new markets with great ease and
comfort (Ngo, Lau and Foley, 2008). Strategy used Tesco is very effective as they are bale to
achieve the desired goal and that is attracting more and more customers. In other words, it is
helping the firm to grow and in increasing their revenue.
TASK 4
5.1 & 5.2 Role of ISM in Tesco
Today information management systems are very important for the given enterprise mainly
because of the reason that it has to function in an intense competitive marketplace. Thus, in order to
ensure that the firm is able to exist for a longer term in the market, obtaining and managing
different sorts of information related to its functioning is imperative (Huemann, Keegan and Turner,
2007). Through such approaches and systems, there are better chances that the firm can survive the

industry for a longer period of time and may satisfy the demand of customers. Through proper
techniques of ISM, better opportunities to cater the demand of customers can be identified,
developed and capitalized. In this way, the management can recognize the demand of customers
easily and may determine the ways through which they can be satisfied easily and effectively. If
Tesco do not use ISM, then it will not be able to provide better services to its customers. Further,
they will not be able to understand products and services according to the needs and wants of the
customers. Since, company has developed relations with more than 2000 suppliers from all around
the world, it is very important that it maintains healthy association with them (Bondarouk and Ruël,
2009). In this context, the tool of ISM can be of great use. Through the use of ISM tools,
management can obtain plenty of data relating to the market trends as well as needs and demand of
customers. In this way, company can accomplish its goals and objectives easily.
5.3 Process of planning ISM requirements
Information System Management has become a very vital aspect of operation towards which
management of an enterprise needs to pay a lot of attention primarily because of the reason that it
allows the firm to gather data regarding functioning of the firm as well as the market in which it is
operating (Collings and Mellahi, 2009). This type of information are very helpful in knowing the
areas in which the organization lacks and accordingly they can set up training or strategies which
would help in improving these areas. In order to plan for ISM requirements, very first aspect that
has to be considered is related with evaluating the need of information in company. Herein,
authorities will have to assess the amount of information that they require in order to perform their
function effectively in the market. In this context, it can be said that, ISM is very helpful in
understanding the need, wants and accordingly providing them products and services which would
satisfy their customers. The next stage is to determine the sources from which such kind of data can
be easily and effectively obtained. It would be imperative for the firm that it identifies such kind of
sources and use them in an effective manner. Additionally, a tool which may be required to
synthesise this kind of information constitutes another stage of planning for ISM requirements
(Armstrong and Taylor, 2014).
CONCLUSION
From the above report, it can be concluded that strategic resource management is one of the
very important aspects of functioning of business enterprises, regardless of market that it may be a
part of needs to pay a lot of attention towards managing its resources in an efficient and effective
manner. During the present study, it was revealed that Tesco requires various kinds of physical
resources in order to function in the market and to cater the demand of customers and for sustaining
in the retail industry. Further, according to this research, marketing has a very crucial role for the

company, as it has a significant impact over working of the firm as well as accomplishment of its
goals and objectives.

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