Strategic HRM Report: Tesco's Business Strategy and Employment

This report delves into the significance of strategic human resource management (SHRM) and its interplay with employment relations, with a particular focus on the international grocery retailer Tesco. The report examines the alignment of business and HR strategies, emphasizing the need for flexibility, innovation, and a competitive edge. It explores the concepts of vertical and horizontal integration within an organization and critically analyzes strategic perspectives like best fit/contingency, best practice/universalist, and resource-based view (RBV). Specific HR practices, including performance management and reward systems, are evaluated, with recommendations for redesigning performance management. The second part of the report focuses on employment relations, discussing its nature and theoretical perspectives, evaluating the roles of actors within the employment relationship, and offering recommendations for improvement. Overall, the report aims to provide a comprehensive understanding of how SHRM contributes to organizational success, using Tesco as a practical example.

Strategic HRM

Executive summary
This report provides a discussion regarding requirement of strategic human resource
administration and relationship with employment. The main purpose of this is to increase
flexibility, innovation and achieving competitive edge. It assists in building appropriate culture
of business organization. The company is capable to run their company in successful manner and
co-ordinate team to accomplishing goals as well as objective in timely manner. Employment
relationships are considered as a legal connection among subordinate and manager. This
relationship is formed when individual person carry out their work in particular situation for
remuneration. This report provides a discussion regarding requirement of strategic human
resource administration and relationship with employment.

Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Relationship between business strategy and the human resource strategy................................4
Vertical alignment and horizontal integration across the organization........................................6
Theoretical basis and models of strategic Human resource management....................................6
Critically analyze the strategic perspective of best fit/contingency, Best practice/ Universalist
and Resource Based View (RBV)...............................................................................................7
Specific HR practices of performance management and reward.................................................8
Recommendations for redesigning the performance management system..................................9
TASK 2..........................................................................................................................................10
Nature and theoretical perspectives of Employment Relations.................................................10
Critically evaluate the roles of the actors within the Employment Relationship with analysis of
the changing nature of employment relations............................................................................11
Recommendations to improve employment relations................................................................12
CONCLUSION..............................................................................................................................13

INTRODUCTION
Strategic human resource management is considered as a process in which the interaction
among human resource manager and employees in such a manner that helps in achieving goal
and objective in timely manner. The main purpose of this is to increase flexibility, innovation
and achieving competitive edge. It assists in building appropriate culture of business
organization. The company is capable to run their company in successful manner and co-ordinate
team to accomplishing goals as well as objective in timely manner. Employment relationships
are considered as a legal connection among subordinate and manager. This relationship is formed
when individual person carry out their work in particular situation for remuneration. This report
provides a discussion regarding requirement of strategic human resource administration and
relationship with employment. In order to increase understanding level, the company is taken
named as Tesco which is international groceries and universal mercantile retailing company
given in the year of 1919. The company was situated in England, UK. This report provides wide
explanation regarding relationship among business and human resource tactics. Moreover, the
assignment provides explanation regarding nature and perspective related to employment relation
(Bouaziz and Hachicha, 2018).
TASK 1
Relationship between business strategy and the human resource strategy
Human resource manager focuses on bring employees and organisation together for
increasing productivity in future period of time. The strategy of organisation must be linked with
strategy of organisation for achieving favourable outcome of organisation.
HR strategies as business strategy
Human resource plays an important role for success of business organisation. It is
necessary to have motivated or talented individual person who performs their work with them for
achieving goal in timely manner. The employment and administration focuses on making
appropriate relationship for success or growth of organisation.
Communication organisation focuses on communicating and interacting with production
target goal as well as objective of organisation. The management team of company focuses on

making subordinate feel recognised. It helps in increasing motivation level of subordinate and
achieving goals in timely manner.
Demographic, social Trends and Technology there is a huge change in the perspective
regarding job satisfaction of young as well as older employees. The HR manager focuses on
providing education to new joiners that help organisation in providing support to need of budget
for accomplishing goal in an appropriate manner. The manager of TESCO focuses on adopting
innovative technology that helps in offering new products and services to its customer in order to
satisfy them. It helps in increasing experience level of customer in future period of time.
Developing Strategies and solution the HR manager of organisation focuses on
improving appropriate program in order to provide effective training or rewards to it subordinate
in order to increase performance during particular phase of time period. The improvement of
administration is considered as a significant aspect. It is necessary for management team to
provide training to its employees and that training offer different component like organisational
development, recruitment, selection and many more (Cheng and Hackett, 2019). In context of
TESCO, the manager focuses on implementing effective strategies for increasing skill or
knowledge of employees that helps in performing work in an appropriate manner.
In reference of Tesco, the business manager and HR professional focuses on performing
their work together in order to perform different work in an appropriate manner. The HR
manager of Tesco emphasized on various laws like labour law, training process and policy of
organisation that help in making appropriate planning of organisation.
Vertical alignment and horizontal integration across the organization
The vertical integration alignment is considered as a competitive strategy that assists
organisation to focus on final control over various levels in manufacturing or distribution of
product and services (Garcia-Carbonell, Martin-Alcazarand Sanchez-Gardey, 2016). The
company named as Tesco use vertical integration for entire control over supply of material and
producing goods. They also focus on adopting vertical integration in order to distribute product
in an effective manner. In addition to this, horizontal integration is considered as a competitive
strategy that is adopted by business organisation. It is considered as the acquisition of different
types of organisation at similar level of value chain. For example, if TESCO merge their

business with similar one in various countries for achieving leading position in foreign market.
Herein, the organisation adopt vertical integration in which top management provide guidance to
its employees regarding how to perform work for achieving goal and objective in timely manner.
Herein, the employees feel free to share their views and opinion that helps in performing
different task in an appropriate manner.
Theoretical basis and models of strategic Human resource management
There are different kinds of strategies of business organisation that include quality,
reduction in cost, innovation along with different theories or philosophy of human resource
administration such as facilitation, accumulation as well as utilisation. Therefore, these strategies
help in decreasing the cost of labour and they do not emphasized on providing training to it
subordinate (Kasemsap, 2019). The organisation focuses on adopting innovation strategy in
order to bring creativity within business organisation. The management of business organisation
focuses on performing work with its team member and increase the knowledge of subordinate by
offering training session to them. The other strategy is quality strategy that focuses on choosing
candidate or subordinate based on personality. This kind of structure of organisation focuses on
employees for using environment and increase ability or talent of subordinate. As per this
strategy, the employee focuses on follow routine for personal betterment. Their focus is on
quality as well as cooperation that help in performing different activity in an appropriate manner.
Boxall and Purcell provide a framework for administration of strategic human resource that is
important for achieving goal as well as objective in timely manner.
Critical HR Goals Critical Non HR Goals Ultimate Goals of
organization
Desired kinds and steps of
 Productivity of labor
 Flexibility in
organization
 Social authority
Desired benefits for
 Market share
 Sales
 Social authority
 Return on investment
employed
Desired benefits for
 Viability along with
proper returns to
shareholders as well as
sustained competitive
benefits.

Critically analyze the strategic perspective of best fit/contingency, Best practice/ Universalist and
Resource Based View (RBV)
For business organization, it is significant to make proper strategy for accomplishing
goals as well as objective in timely manner. Tesco focuses on maintaining appropriate image in
front of customer for increasing profit margin in future period of time. In addition to this, the
best practices which is adopted by Tesco is quality or strategy related to accumulation that
assists management team to encourage subordinates or using the environment of Business and
perform work in an appropriate manner.
Specific HR practices of performance management and reward
The performance management system are significant for business organization as it is
used in increasing motivation level of subordinate for performing their work in an appropriate
manner (Kumar, 2019). There are various strategies related to performance management which is
used by organization that is given below:
Define and communicate company goals and performance objectives
It is significant for the management team to focus on the expectation of subordinate for
favorable results. The leader as well as manager focuses on clarifying objective of organization
that helps in achieving target in timely manner.
Utilize performance management software
It is necessary to provide advice to Tesco to adopt the software of performance
management that help in identifying feedback of employees, motivation of subordinates and their
strength as well as weakness. In addition to this, a superior performance management software
system is important for organization as it provide 360 degree appraisal to its subordinate.
Offer Frequent Performance Feedback
A business organization focuses on goal as well as objective that help in analyzing
requirement of subordinate for providing motivation for performing work in an appropriate
manner. Tesco focuses on conducting feedback related to performance in timely manner in order
to know the needs or wants of subordinate (Malik, Froese and Sharma, 2020).

In addition to this, there are various HR practices adopted by organization for increasing
performance level of an individual person during particular phase of time period such as training
and development, appraisal, rewards and many more that is given below:
Performance management the manager of Tesco focuses on identifying the
performance level of an individual person and performs their work in an appropriate way. In
addition to this, they also focus on increasing skill or knowledge of an individual person that
help in performing work in better way.
Training and development the organization also focuses on providing training to its
staff that help in increasing skill or knowledge for performing different task or work in an
appropriate manner. The manager of Tesco focuses on providing effective training and that helps
in achieving goals as well as objective in timely manner.
Rewards the organization also focuses on offering reward to an individual person that
help in motivating individual person to perform their work in an appropriate manner and to
achieve the target in timely manner.
Recommendations for redesigning the performance management system
The recommendation can be provided to Tesco regarding performance management
which is going to be mentioned below:
Set regular meetings and discuss outcomes and results of the business
Meeting such as reports and conventions of progress must be conducted by Tesco in order to
achieve favorable outcomes of organization (Rupidara and Darby, 2017). It assists in analyzing
the level of profit and threat of organization while operating their business in an appropriate
manner. The objective and goal of this kind of meeting which is going to be mentioned below:
 Take follow up calls regarding reviews of peers.
 Provide discussion regarding which work is performing with its team member.
 Recognition of member of team for achieving goal as well as objective of organization.
 Provide discussion regarding the next level of project.
 Provide discussion regarding all information of companies such as customer engagement,
marketing revenue and many more.

TASK 2
Nature and theoretical perspectives of Employment Relations
Employee relation is determined as efforts or contribution for handling or improving the
relationship between employers and staffs (Xu, Gollan and Wilkinson, 2018). It has been
analyzed that company focuses on maintaining appropriate relation with its staffs by offering
positive environment to them so that higher performance of them can be gained to meet
corporate objectives. In assistance of this, the appropriate relation helps company in retaining or
sustaining subordinate for a longer time period within business organization. In addition to this,
the relations with its employee’s assists company in increasing productivity level of subordinate
by increasing their motivational level at continuous basis for increasing moral of staff member.
While analyzing the relation of employees, it has been analyzed that this term is determined as a
success or growth of opportunity for organization and taking quick decision and achieving
objective in timely manner.
Nature of employee relations
The nature of relation of subordinate is difficult or multidimensional. It involves both
employees as well as employer who perform their work in order to achieve objective. In
reference of TESCO, it has been analyzed that HR professionals mainly emphasize on
maintaining relationships between top management and subordinate in order to perform their
work in an effective manner for a longer time (Sharma and Bhatnagar, 2017). The HR manager
of organisation focuses on conducting seminar for increase motivation level of staff member that
helps in achieving target of company in timely manner. The improvement of administration is
considered as a significant aspect. It is necessary for management team to provide training to its
employees and that training offer different component like organisational development,
recruitment, selection and many more
Theoretical perspectives of employee relations
The prospective of relation of employee are categorized into three kinds like Unitarist
perspective, Pluralist perspective as well as Marxist perspective. There are several perspectives
of employee relation which is going to be mentioned below:

Unitarist perspective: Herein, the business organization focuses on mutual
understanding with it subordinate in an appropriate manner. They perform their work
collaboratively in order to achieve success in future period of time. In addition to this, both
employees as well as employers provide significance to perform their work together. Herein, the
organization focuses on providing importance and value that help in taking appropriate
decisions. The trade union focuses on decreasing conflicts between employees as well as
employers.
Pluralist perspective: The administration team focuses on controlling subordinate that
helps in performing different tasks in an appropriate manner. Herein, the management focuses
on making appropriate cooperation with both trade union and subordinate for maintaining good
relation with its employees within business organization.
On the basis of above given perspective related to employee relation, it has been analyzed
that pluralist perspective is considered as a best perspective for international company named as
Tesco. It has been said that this perspective provide support to both employees as well as
management in resolving their conflicts by trade union. In context of employees, trade union
adjusts them in defending legal rights. In addition to this, as per subordinate, trade union
provides support in convincing other employees to perform their work in cooperative manner
and reduce loss in an appropriate manner (Shen, Dumont and Deng, 2018).
Critically evaluate the roles of the actors within the Employment Relationship with analysis of
the changing nature of employment relations.
Employment relationship involves employer, employee and government which are
important for maintaining effective relationships with its employment. It has been analysed that
they provide equal contribution for changing the nature in relation with its employee. The
employer communicates with its subordinates on regular basis and resolving their issues which
occurs within business organisation that helps them in motivating employees to perform work in
better way. In addition to this, the government focuses on promoting equality rights that provide
equal rights to its employees that help in bring positive ambience at workplace. The explanation
regarding them is going to be mentioned below:

Employer is very important for maintaining appropriate relationship and grabs the
opportunity for achieving favourable outcome. It has been analysed that trade union focuses on
eliminating different kind of issues that is faced by company. The trade union focuses on
providing support to issue which is confronted by its employees and manager. Therefore, it helps
in saving time and money during particular phase of time period. In addition to this, it has been
analysed that the ability of employer focuses on maintaining good relationship with its employee
in order to perform different activity and function in an appropriate manner. The management
team focus on performing different function in an appropriate manner during particular phase of
time period (Stankevičiūtė and Savanevičienė, 2019). The employer focuses on interacting with
its employees on continuous basis that help in motivating them to perform their task in an
appropriate manner. The employee also emphasized on resolving conflict or issue which is faced
by employee that help in motivating them to achieve their target in timely manner.
Employees in context of subordinate, it has been analysed that these are person who bring
positive ideas within organisation for taking appropriate decisions in future period of time. The
role of subordinate is to maintain good employment relationship that imposes direct impact on
relationship of employees or employer. The employer provides training to its employees for
increasing their knowledge and skill regarding employment relationships within business
organisation. Therefore, the employees focus on enhancing their knowledge for maintaining
employment relationship with its employees that help in achieving target in an appropriate
manner.
Government the government focuses on follow different rules, legislation, laws and many
more. It has been analysed that the change in law or government imposes direct impact on
relationship with its employee. For example, the government focuses on making appropriate
provision in context of extra working hour that are completely against TESCO but it is in favour
of subordinate. It develops negative relationship among employers and employees as
productivity level of Tesco will slow down due to flexible hour of working. Therefore, it
imposes direct impact on maintaining relation with its employees. The government implement
law which is favourable for the employees and employers to perform task in an appropriate
manner. The government provide equality rights to its employees that motivates them to perform
work in an appropriate manner.

Trade union they focus on maintaining appropriate relation between different employees
in order to perform their work in an appropriate manner. Therefore, it is necessary for trade
union to maintain effective relationship between employees in order to perform different
function in appropriate manner. They also focus on resolving conflict during particular phase of
time period (Szierbowski-Seibel and Kabst, 2018). Trade union communicate with its employees
on regular basis and identify there is any kind of issue which is faced by the employees that help
in motivating them towards work of business organization. The trade union also focuses on
resolving their issues in an appropriate manner that helps in achieving target in timely manner.
Recommendations to improve employment relations
There are several recommendation for HR professional of Tesco for increasing relationship
with its employees and improve performance level of Organisation during phase of time period.
In addition to this, there are various recommendations in relation to employee relations that are
going to be mentioned below:
 Herein, it is necessary for HR manager of TESCO emphasized on increasing the
engagement level of subordinate in taking decisions within business organisation. In
addition to this, it also helps the organisation in taking better views or ideas from side of
employees which are advantageous for organisation in context of increasing profit
margin. This leads to increasing the relationship among employees as well as employees
during particular phase of time period.
 Furthermore, the organisation focuses on implementing artificial intelligence and
innovative technology that helps in providing innovative products and services to its
customer in order to satisfying them. It also helps in increasing sales and profit margin of
company in future period of time.
 Herein, the organisation can conduct various seminars, events and programs for
motivating employees to perform their work in an appropriate manner. It helps company
in achieving goal and objective in timely manner. This results in bringing positive
environment within business organisation and maintaining appropriate relation with its
employees during particular phase of time period.
On the above given recommendations, it has been analysed that the HR professional of
Tesco focuses on maintaining appropriate relation with its employees that helps in bringing