Strategic Human Resource Management: Trends, Theories, and Tesco

This report provides a comprehensive analysis of strategic human resource management (HRM), using Tesco, a multinational retail company, as a case study. It begins with an introduction to HRM and its significance in achieving organizational goals, followed by an examination of current trends and developments impacting HR strategies, such as technological advancements, demographic shifts, and globalization. The report then evaluates the external and internal factors influencing Tesco's HRM practices, including government regulations, economic conditions, organizational culture, and structure. Various theories and concepts related to workforce growth, including personnel management, human resource management, and strategic HRM, are discussed. The report also explores change management models to support HR strategies and examines how HR outcomes can be monitored and measured, including employee development and sustainability. The analysis highlights how Tesco adapts its HR strategies to maintain a competitive advantage in a dynamic business environment.

Strategic Human
Resource
Management
Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4

P1 Current trends and development which impact the Strategies for HR...................................4
P2 Evaluation of external and internal factor which impacts the strategies and practices for
HRM............................................................................................................................................5
Analyses of factors which influences the external and contextual developments and discussion
of their impacts on the HR strategy of an organisation...............................................................6
TASK 2............................................................................................................................................7
P3 Various theories and concept which relates to the growth of workforce...............................7
TASK 3............................................................................................................................................8
P4 Change management model for supporting the HR strategies...............................................8
M2 Justification for change management model used by the organisation...............................10
TASK 4..........................................................................................................................................11
P5 The outcomes of HR can be monitor and measured.............................................................11
P6 Developments of Employees and the sustainability development.......................................12
HR development techniques......................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................13
INTRODUCTION
Human resource said to be a set of persons who together forms the workforce in an
organisation or any sector of industry. An organisation uses the skills and knowledge of this
human resource to achieve their objectives and goals which they have set. Human resource
management (HRM) is the concept which involves the strategic approach for managing the

people in an organisation in the most effective way. The purpose of HRM is to gain the
competitive advantage with respect to their work force and achieve the success from the proper
use of their human resource. For reference purpose this report has taken an example of a
company, Tesco. Tesco is a British multinational company which is engage in the business of
groceries and other merchandise. The company was establish in the year 1919 and has the third
largest position in retailing market. Tesco has successfully manages to establish its stores at
around 6800 locations.
This report discusses about the current trends which are running in human resource
concept along with the external factors which effects the strategic HRM. Apart from this the
appropriate theories and frameworks are also applied with respect to the formation of HRM
strategies in an organisation.
TASK 1
P1 Current trends and development which impact the Strategies for HR
Strategic HRM refers to the developing and implementing a strong connection between
employees and the organisation. The strategies are formed in a view to make the make the
organisation different from the prevailing competitions. This concept focuses upon the essence
of HR. It is a future oriented process in which the policies and strategies formed by keeping the
comprehensive long term success for organisation. But with the change in times of business
operation and practice the strategies applied with this concept does get evolved. The strategies
are made in such a way that it satisfies the current and future requirement for Human resource
(Cunha and et al., 2020). There are various trends and developments have take place which has
influenced the strategies formation for HR, some of them are as follows:
Technological developments: In this era where most of the operations are performed through
technology and where the technology is playing a paramount role in attaining the competitive
advantage has become a major reason in influencing the strategies for HR. As the technology
adopted by the Tesco company changes the employees skills with regard that technology
working needs to get improved or build up. This has given birth to the search for those work
force who are very sophisticated with respect to technological skills and training developments.
Tesco tries to find the candidates who posses the latest skills and knowledge for technology and
to satisfy this they forms their search accordingly by making effective strategies.

Demographic changes: As increase in the process of Globalisation and the free movement of
workers and materials as change the demographics for various countries. Now the HR strategies
and policies need to get formed in such a way that it satisfies they demography. Demographic
segments refer to dividing the segment on the basis of gender, income, family size, literacy,
culture, background and etc (Giri and Chatterjee, 2020). In an organisation like Tesco, the
employees who are working belongs to different age groups like some may be old and some may
be of middle or young age. Also there would be many employees who belongs to different
background and culture. The strategies which the organisation needs to adopt should be such that
it satisfies all these people mentioned above.
Globalisation: Globalisation refers to a process which integrates the resources, which includes
human resources, technology, capital, finances, ideas and knowledge, machineries and the like,
among the different economies. As the Tesco is a globalised company, they operates in various
countries where the political and legal laws are different from one another. The strategic HRM
policies and plans needs to form in such a way that it must satisfy the required demands of these
regions or countries. For example the employment law set by countries are different from one
another; it is the duty of HR manager to form the strategies and policies in such a way that it
satisfies both, the objectives of company and the policies set by government.
P2 Evaluation of external and internal factor which impacts the strategies and practices for HRM
The strategies related with HR for Tesco are build up only after taking the internal and
external factors, which impacts the operations, into consideration. Both the short as well as long
term strategies are formed by analysing these factors (Giri and Chatterjee, 2020). The internal
and external factors which impact the HR practices and strategies may include:
External factors
Government regulations: Introduction of new policies and rules regarding the employments or
workforce by government has forced the organisation in making the strategies which comply
these policies in their system. These regulations influences the various process of organisation
like recruitment, selection, compensation, salary, increments, PF's and the like of an
organisation. And if the organisation gets fail to satisfies all these regulations in their system then
they might can get into legal obligation or case.
Economic condition: The HR strategies do get influence by the economic situation of a place.
For example, in a country where the unemployment rate is very high, there the workers will get

ready to work even in less pay. This saves the cost for organisation as they are getting the
required candidates in less price. But a economy where the unemployment rate is very low there
the availability for workers will be less which would force the organisation to set their salaries
quite high so that they can attract more talented candidates towards them. Although this would
add more cost to the organisation.
Internal factors
Mission: The core objectives and motive of an organisation does affect and influence the
strategies for HR. The recruitment and selection procedure would get formed that it connects the
human resource with the mission of the organisation. As in the case with Tesco the company
regulates its recruitment and selection program in accordance with their needs.
Organisational culture: The culture portrait the personality of any organisation. The Tesco
forms their strategies for their company in such a way that it matches with the actual culture they
follows (Kumar and Ayedee, 2019). The culture of an organisation must flashes the positive
image of the organisation before the market place. Therefore the strategies get influence by the
organisation culture as they need to form by keeping in view about the culture which the Tesco is
following.
Organisation structure: The HR strategies also get influenced by the structure which the
organisation follows. As in the case with Tesco, the strategies get formed by keeping in view the
structure and system which is prevailing in organisation. The policies and structure must
integrate with each other. If the policies are not formed with regard to the company's structure
then it may lead to misunderstanding and confusions which may lead to decrease in productivity
of employees (Lazazzara and Ghiringhelli, 2016).
From the discussion presented above, it is conclude that strategies needs to get formed by
considering the above factors. Apart from this, these strategies should be flexible enough so that
it can absorb any change which is necessary to bring in.
Analyses of factors which influences the external and contextual developments and discussion of
their impacts on the HR strategy of an organisation
Factors Positive Impact Negative Impact
Economic conditions It helps in proper formation of
strategies which reduces the
The Tesco has to form their
different strategies according

risks and saves the extra cost. to the region in which they are
operating. This process
requires a lot of time and
research.
Government regulations It helps the company in legally
copping up with the change
which enable them to easy
operate in the business
environment.
Frequent changes in
government regulations creates
disturbances in the operations
of Tesco.
Mission It helps in achieving the goals
of company.
The strategies formed
sometime does not get match
with the mission which creates
problem for Tesco.
TASK 2
P3 Various theories and concept which relates to the growth of workforce
There are various theories and concept that are available related to the Strategic HR
development. Through the application of such theories the organisation can develop their
workforce. The tesco company can apply any of these theories or concept in their system for the
proper development of HR. Some of these theories and concept may incudes:
Situation: Tesco has notice a decrease of performance in their work. The organisation set a
research to know about the reasons behind it and through that research they found out that these
low productivity is due to unnecessary regulation imposed by the organisation (Rankin and
Sherer, 2019). To surmount with this issue, tesco can take the help of theories and concept so
that they can bring their level of productivity back.
The theory of personnel management: This theory seeks focus upon the another theory of
Theory X and Theory Y. In this particular theory, the organisation divides the employee in 2
category name X and Y. The employees that lie in X category who does not like their work and
have very little motivation towards their work. The manager uses the approach of “carrot and
stick” to make these people work. Strict approaches like deadlines, giving the consequences for

not performing the work and etc. are used. Where in theory Y the employees who likes doing
their work and are very motivates lies in this category. The approaches like bonus, increase in
salary, increments and the like as used to motivate them more.
Through the application of this theory, the Tesco can manage its HR and can bring
growth in their productivity level to some extent.
The theory of human resource management: The theory of human resource management
helps the organisation in increasing the retention of employees. The objectives of every
organisation are just to retain its talented employees in company (Rees and Smith, 2017). The
organisation, like Tesco can gain competitive advantage through attaining the talented candidates
in organisation. The policies and work structure are formed in such a manner that the employees
feel comfortable and motivated while working with the organisation. When an organisation
could be able to set a bench mark for the other companies which are running as a competition.
Through the application of this theory the organisation would be able to create a working
environment which is motivated, comfortable which follows the principle of peace and harmony
in the workplace.
Strategic HRM: Strategic HRM is a concept where the organisation make the policies in
such a way which combines the mission of both employees and organisation. The policies which
are set by the organisation helps them achieving the objectives for both the parties. Through the
application of this particular approach the organisation can achieve the optimum utilisation of
human resource, saves the cost for hiring new employees or workforce, increase in productivity,
generation of competitive advantage and much more.
Through the application of above mentioned theories, the Tesco company could be able
to regain their productivity level again which helps them in attaining their set objectives.
TASK 3
P4 Change management model for supporting the HR strategies
Change is a mandatory process which an organisation needs to adopt in its system.
Bringing the necessary change in organisation helps in surviving in this tough market and not
becoming obsolete. Change can be both short term or long term according to the need. Majority
of change is implied to the change in external factor policies or practices. The organisation, like
Tesco can implement the change easily and smoothly through the use of change management

model. The application of change management model in Tesco can be applied in the following
way:
Situation: The organisation is planning to bring some change in technology which they are using
in their operations. The new technology is very much advance that will produce more units with
less time and also saves the time for organisation (Tadesse and Jembere, 2020). The task is to
bring the required change in the Company.
Kotter's 8 steps model: This particular model was created in the year 1995 Harvard
School of Business. This model is used to implement the change in organisation properly. The
Tesco company can apply this model to implement the above mentioned change.
Source: Kotter's 8 step model of change, 2020
Creating Urgency: In this step the organisation creates urgency about the need to bring up the
required change. Through the urgency, Tesco can make their employees understand about the
merits which their company would get if they implement that technological change in their
organisation.
Generating coalition of guiding: After creating an urgency among the employees, the company
should build a team whose task would be to encouraging the employees in bringing the required

change in the system. The group formed would also clear out the doubts of workforce which may
arise during the change.
Building up a vision of change: The organisation needs to develop a long term vision with
respect to the technological change that they have planned to bring. Through the display of
vision they can clearly educates their workforce and communicate them about at level their
organisation will achieve if they would be successful in implementing this technological change.
Through the strong building up of vision, the organisation would be able to detect the risks
towards which they are associate with and can take the corrective actions to minimise these risks.
Communication: After building up of vision, the Tesco needs to communicate it to their
workforce. Through the communication about the vision the employees can understand the
advantages and merits which the organisation would get from this technological change. The
communication should be so clear that it clears out all the doubts which employees have with
relation to it.
Removing of obstacles: At this step the organisation tries to figure out the risks which the
organisation might face. Detecting of those risks and taking the corrective actions at time can
help the organisation in implementing the change in a right way.
Creation of short wins: The plans which the Tesco has made for implementing the technological
change should be divided into small tasks. After that the organisation should keep on monitoring
the actions and achievement which these tasks and mark the small wins. Small wins would lead
to the achievements of major and core goal.
Don't let up: The technological change should get in continuation in the organisation. The
technological change which the organisation has planned to implement should be in continuation
otherwise once the flow gets break the company, Tesco, has to start right from the start.
Make change stick: Slowly by steadily the organisation would be able to implement that
technological change permanently (Ungureanu, Bertolotti and Pilati, 2019). With the short term
wins the organisation would be able to implement the change in freeze it in their operations.
M2 Justification for change management model used by the organisation
The change management model used by the Tesco has helped it in implementing the
change properly in the organisation. The technological change which is brought by the
organisation has provided many benefits to the organisation. The change management model

which has been used by Tesco was so effective that the company get successful in bringing the
change in their organisation.
TASK 4
P5 The outcomes of HR can be monitor and measured
Through the measuring and monitoring of HR outcomes, the organisation like Tesco can
get to know about the areas where they can bring the change and the areas where they are
performing very well. There are various approaches which an organisation can use to measure
and monitor the change in Tesco. Some of them are as follows:
Employee performance: The outcomes of these HR policies and strategies can be measured and
monitored through evaluating the performance of employees. If from the evaluation it has been
observed that the employee performance is low in comparison to the standard set then it is clear
that the company's HR policies are not at appropriate. But if the performances of the employees
are up to the mark then the policies set by the organisation do providing benefits to the company.
The organisation Tesco can make use this approach evaluating the performance of HR policies
and outcomes.
Profit gained by the company: the percentage which the company can gain as a profit can be
one of the methods or approaches to measure the HR outcomes. The HR results can likewise be
estimated and checked through the level of benefit yield in an association after the execution of
procedures. In the event that the benefit made by TESCO organization is more or equal to the
objective set then the methodologies framed are giving advantages to the association however on
the off chance that the benefit yield by the organization is beneath the focused on set, at that
point there is a critical need to audit all the systems shaped by HR (Velmurugan, 2018).
Association of clients: The results can likewise be accessed through observing the survey and
reaction by the clients towards the organization. Keeping up a decent association between the
clients and the organization is significant as they builds the brand picture, association,
generosity, reliability, etc. The organization continually screens and measures the association of
clients with association. The techniques which are develop the organization are created in a view
to build the connection between the clients and friends. On the off chance that the association
between the two isn't up to the objective set then their future an earnest need to roll out the

improvements in methodologies. Yet, in the event that the input or survey about the structure up
of association between the two is according to the objective then the methodologies shaped are
returning benefits to the organization.
P6 Developments of Employees and the sustainability development
Presently a day the association are following and embracing greater supportability
advancement in their framework and structure. They all realize that this the better approach to
raise the development and improvement into association. It has been seen that the associations
which are applying the supportability advancement in their activities are will in general return
more benefit and accomplishment into the commercial centre. The branch of HR ends up being
an extraordinary assistance in building up the maintainability advancement in TESCO Company.
They carried the new ways and abilities to the representatives who are confronting issues in
playing out their work by giving them the best possible required preparing and advancement
program. There are a few devices and methods through which the association can gauge the
presentation of representatives:
KPI's: KPI represents key execution markers. It is a methodology where the organization
assesses the quantifiable incentive for the exhibitions which the association has accomplished at
this point. In the presentation assessment the organization under takes the funds, tasks execution,
workers execution, its technique development and so forth and afterward these are contrasted and
different organizations. The significant reason for the organization to utilize this device is to
discover the territory where the association needs improvement.
Bench marking: Bench showcasing is a methodology wherein the association contrasts the
strategic policies and measurements and different organizations which are considered as the best
in entire industry. In this methodology a seat mark is set for TESCO which functions as an
objective for the organization. This seat mark is set up for the organization by looking into and
contrasting the exhibitions of the best organization. The TESCO organization would frame their
techniques so that they can accomplish they can accomplish the targets which they have set by
the exhibition of best organization in that industry.
HR development techniques
There are various technique used by the Tesco for developing their employees, some of
the factors may include:

Training: The training should need to provide to the employees to make them learn about some
skills which is required by the work. Through training the employees can get to know about the
various learning. The methods which could be used in this may include classroom lectures,
videos, assignments and much more.
Mentoring: It is the process through which the supervisor or the manager provides the necessary
mentoring to the employees so that they can perform better in their work. In mentoring the
mentor teaches his mentee about the how he needs to perform the work. This helps the mentee to
easily does this work without any confusion and burden.
CONCLUSION
From the report examined above, it very well may be reasoned that the human asset are the
genuine resource for any association and the improvement of this asset gives the drawn out
advantage to the organization. The techniques are framed so that the representative’s gets remain
persuaded and creates with the association. There are different powers which influence the
procedure arrangement. A portion of these powers may incorporate labour force variety,
innovative change, destinations of association, ability expertise necessity and association
objectives. The association TESCO applies different methodologies for the advancement of
representatives through maintainability improvement. This may incorporate the utilization of
KPI's and seat checking and so on
REFERENCES
Books and Journals
Cunha, M. P., and et al., 2020. Strategic agility through improvisational capabilities:
Implications for a paradox-sensitive HRM. Human Resource Management
Review. 30(1). p.100695.
Giri, A. and Chatterjee, S., 2020. Impact of Fluid Team Performance on Strategic HRM: An
Empirical Study in the Organized Retail Sector of West Bengal. Prabandhan: Indian
Journal of Management. 13(4). pp.25-42.