Analysis of HRM Practices and Their Impact on Tesco's Profitability

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Human Resource Management 1
Human Resource Management

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Contents
Introduction...........................................................................................................................................3
Activity 2...............................................................................................................................................4
Benefits of HRM within an organization...........................................................................................4
Evaluating effectiveness of HRM practices.......................................................................................6
Application and critical evaluation of HRM practices.......................................................................7
Application of HRM practices in Tesco............................................................................................7
Conclusion.............................................................................................................................................9

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Introduction
Utilizing effective practices and means of human resource management will aid both the
employee and the organization. This report will describe how HRM at Tesco the entity in
attaining organizations goals and objectives:

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Activity 2
Benefits of HRM within an organization
Human resource management has numerous empirical roles to be played within the business
corporation. For instance, they protect the interest of the management authorities as well as of
the other working staff (Bullerand McEvoy, 2012). For management, they are liable to
manage employee relations and identifying methods of cost-cutting. Whereas in the case of
employees, protecting their rights and ensuring that employers are operating as per the law.
The below described are the benefits of different HRM practices:
Employees
 Conflicts resolution: HR managers play a crucial role in mediating disputes between
the employees within the organization or whether it may be between the employees
and the management. Interpreting policies and the procedures of the entity is the duty
of the HR manager and also defining suitable workplace behaviour.The HR team of
Tesco is also held liable for resolving issues related to in-subordination use of abusive
or inappropriate language or poor attitude that may lead to conflicts or disruption.
 Training and development: Making provision of training and development for the
workforce is considered as another practice or responsibility of the HR department
(Caldwell et al., 2011).Organizing training sessions and determining suitable methods
or mediums for delivering these sessions based on the needs of the employees is also
done by the HR team. Regular training and development programs should be
organized by the HR team of Tesco. A set of 13 key management mechanisms is used
for advancing the core skills and capabilities of the workforce and the workplace. For
instance, problem-solving, root-cause analysis, plan-do-review, situational leadership
and many more.

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 Employee relations: A supporting system is offered by the HR team to the individual
who feels that their right is dishonoured within the organization. Moreover, the
employees can directly make a reach to the HR team if they are feeling any kind of
discrimination or harassment. It is one of the prime role of the HR manager to
interpret the laws and code of conducts for violation and discrimination within the
corporation.
 Information resource: Making the availability of reliable information and
knowledge of concerned matters is another responsibility of the HR manager (Din et
al., 2014). There are several matters and topics on which the employees should be
aware of such as leave of absence, worker’s compensation programs, employee
assistance programs, employee benefits and many more. Proper guidance over these
matters should be provided by the HR manager to the employees.
Employers
 Practicing transparent and participative management style: Keeping updated and
well informed withallthe facets of the business entity. For instance, profit & Losses,
sales figures, new mergers and contracts, objectives and policies of the company. This
will make the employee feel their priority and will also not feel that they are working
for a faceless employer.This will bring enhancement in the level of dedication and
interest in the work and will in-turn increases output and profitability of the firm.
 Reward good performance: Paying extra or bonuses to the employeeswill aid the
business corporation in sending a good message to the employees, that their
performance is monitored regularly and a good performer will always be highlighted
and rewarded (Fairlie, 2011). The rewarding system will aid Tesco in attaining its two
main objectives, first is motivating the good performer to perform even better by

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positive means and secondly bringing a healthy competitive environment amongst the
employees that will tend the workforce to try even harder.
 360-degree performance feedback system: Thisfeedback mechanism enables the
performer to get the feedback not only from the seniors but also from the colleagues
and subordinates. This system has been considered as one of the most effective
systems and Tesco can make use of this system due to its high level of effectiveness.
In this mechanism, the employee will have to prove himself in front of the superiors
but will also have to please his subordinates (Price, 2015). This feedback system has
been considered as one of the most effective and reliable forms of evaluating the
performance of the employee.
Evaluating effectiveness of HRM practices
The system of HRM has been proven effective for Tesco in context of enhancing profitablity
and output for the entity. Since the company has adopted the mechanism of HRM the entity
has been experiencing huge profits and advancement in productivity by the following
perspective:
 Creative and high performing employees: The HR managers within Tesco
promotes an environment that encourages creativity and motivate their employees for
better facilities then in returnthis will aid the business organization in increasing the
productivity and profitability (Reesand Smith, 2017). For instance: the skilled
workforce in Tesco were motivated and encouraged by the program that comprised of
some contests to show their creativity. This program enabled the employees to
perform and present their creative their ideas thus an increase in productivity and
profitability was observed.
 Establishing effective direction and execution:Setting and establishing the roles,
directions, goals, purpose, priorities for the workforce is the prime responsibility of a

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manager in an organization. The HRM will aid Tesco in recruiting skilled and
appropriate managers at the appropriate job role and they will lead the entity towards
a high level of profitability and productivity. For example, the HR manager of Tesco
organizes regular meetings for establishing directions and execution of same is also
done in the same meetings. This enhances the overall performance of the individuals
resulting in better productivity.
Application and critical evaluation of HRM practices
According to Noe et al., (2017) HRM is recognized as one of the prime sources of gaining
sustaining position in the intense competitive environment of the business world. This is
indifference with the traditional prominence on the transferable resources such as tools and
equipment (Tanseland Gazîoğlu, 2014). Distinct products, quality of products and services
market responsiveness, and technological innovations are the elements on the basis of which
competitive advantage can be attained by the highly skilled workforce. It is the capability of
the management to gain competitive advantage by the consolidation of corporate
technologies and production skills into competencies. This empowers Tesco to adapt quickly
to the changing business environment. Moreover, the process will be proven effective for
Tesco in aiding the company in attracting the potential and suitable candidates for the firm.
The HRM practices adopted will also help in reducing the cost of recruitment and selection.
Application of HRM practices in Tesco
The below presented are the means and mechanism that can be adopted by Tesco for the
application of HRM practices:
Social media recruitment:Social media is one of the contemporary mechanism that aids
Tesco and the employees and is also providing a hike to recruiting and selecting procedure.
Video interviewing is the method under which the profile of the shortlisted candidate is
considered for an interview.

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Mobile recruiting: This mechanism of recruitment is considered as one of the most
advantageous means of attaining better recruitment (Torrington. 2011). By optimizing the
career page in the resume in the best way will aid the applicant in obtaining a positive
response from the entity.
Emergence and application of innovations have brought in the lots of changes by making
effective use of recruitment mechanisms. Optimization of career pages is mandatory in
mobile recruitment whereas sharing of social media tool will provide access over the over
messages by using mobile. For instance, the entity can make use of Twitter feed from
mobiles.

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Conclusion
The above-presented research defines the various aspects of HRM and its impact on the
business of Tesco. IT is concluded that the business entity can raise profits by reducing
employee turnover. The firm will be able to recruit innovative candidates if it makes use of
external recruitment strategy.

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