Critical Evaluation of Tesco's International HRM Strategy in India

This report provides a critical evaluation of Tesco's international HRM strategy, specifically focusing on its operations within the Indian market. It begins with an executive summary, followed by an introduction highlighting the crucial role of HRM in the retail sector, especially in the context of globalization and technological advancements. The report examines the external environmental factors influencing Tesco's operations in India, including political, economic, social, technological, environmental, and legal aspects. It delves into various HRM theories and models, such as the Rodger seven-point plan, to assess their relevance in the Indian context. Furthermore, the report evaluates the effectiveness of HRM strategies in achieving employee commitment, flexibility, quality, and strategic integration. It also discusses differences in HRM approaches globally, the importance of training, and the relationship between HRM and organizational performance. The analysis includes organizational, national, and cultural issues, as well as management skills required for successful international business operations. The report concludes with a summary of findings and recommendations.

Evaluation an International
HRM Strategy

Executive summery
This report will lay emphasis on different sort of operations that will help in better
handling of business operations that will help in the effective rise of business operations that will
help in better growth and development of the organisation. The external environmental factors
are been taken in consideration. The report will also involve the various theories and models of
HRM and its impact on the business operations of Tesco plc in Indian market. Apart from this,
the importance of proper recruitment process and the various skill set is been taken in thought
process for better idea of performance and reward management.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
LO1Critical evaluation of international business environment in the Host country..............1
LO2 Evaluation of main HRM theories and Models in relation with economic drivers.......3
LO3 Effectiveness of HRM strategies in achieving the goals of employee...........................5
commitment, flexibility, quality and strategic integration and the reward system management.
................................................................................................................................................5
LO4 Differences in approach to HRM globally. Importance of training and its types .........6
LO5 Evaluate the theory and evidence about the relationship between HRM and................8
organisational performance...................................................................................................8
LO6 Organisational, national and cultural issues in HRM strategy. .....................................9
LO7 Demonstrate the management skills required in international business to successfully10
engage and will support from employees at the workplace ...............................................10
CONCLUSION..............................................................................................................................11

INTRODUCTION
Human Resource Management (HRM) plays a very crucial role in management and
execution of wide range of operation's in Retail sector. With the globalisation and development
of advance technologies, this sector is deeply impacted. The increase in competition in last five
years and occurrence of recession has also affected growth and development of Retail
organisation and MNC Like Tesco Plc, in respective industry. The globalisation has helped the
firm or sector to get a good customer base from around the world. This has also helped in
moulding of effective consumer perception that has helped the firm in the sector to have an
effective growth and development (Armstrong and Taylor, 2014). However, it has also led to the
rise in market challenges and future needs of cited retail firm that is necessary to be fulfilled, in
order to effectively sustain in market. The expansion and effective providence of services have
lead to have a deep influence on customer's perception towards the sector and cited firm. The
effective management of HRM has helped sector and organisation to gain a good competitive
advantage in international and local level.
The involvement of joint venturing and development of HRM by the firm in a sector will
play crucial role. The report will involve an assessment of external factors that will lay to the
economic advantage of the firm. Different roles and responsibilities with different theories and
models of HRM management will be discussed. Also, the strategic approaches and various issues
related to it will be taken in effective consideration related to performance management and sraff
involvement measures (Beardwell and Thompson, 2014).
MAIN BODY
LO1Critical evaluation of international business environment in the Host country
The Retail sector has increased to a greater extent on the global level. Thus, the wide
range and variety of operational measures will be provided that will help in the better growth and
development of cited firm and the retail sector in the Indian market.
Company Profile- Tesco plc
Tesco plc is one of major UK based retail firm that makes the better out of the available
resources to provide the better quality of product and services to its customers. It provides a wide
range of goods and services including clothings, food items and other general grocery products.
Since 2013, it has seen a tremendous growth in revenue generation and operational quality, that
has impacted the overall rise in its productivity and profitability. Despite being in recession, it
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was the biggest employer and provider of services that has lead to rise in its economic stability
and core profits to £3.4 billion. Other than this, it has the highest market share in UK, despite
high competition from rival firms (Brewster and Hegewisch, 2017).
Tesco is planning to enter in Indian market by the means of joint venture with a local
retail firm and gain a good customer base in host country. The approach of joint venturing is
beneficial as it helps in reduction of risk factors and help in gaining a faster stability in the new
market. Also, this approach will help the firm to avoid any sort of conflict with other operations
body in same market sector.
Country Profile: India
India is one of the fastest growing economy in world with vast labour force and an
effective GDP rate, that makes it and ideal market for the industries like retail sectors. Also, the
rise in economic stability and increase in purchasing power of people has lead to the
development of many potential customers for different industries. The rise in Per capita GDP and
consumer market will make it as an ideal market for Tesco plc.
It is one of the ideal place for an MNC to grow and develop as it provides the cheapest
labour in vast quantity and the high level of technical advancement is one of the major key
factor, that is been taken in consideration by business firm. Apart from this, India is the fastest
growing e commerce market in recent time, making it among the top five retail markets by the
economic valuation in past five years (Brewster and et.al., 2016.).
Macro environmental factors of India
The external or macro environmental factors of India are as follows:
 Political: The governmental policies and trade regulations that are been developed by
organisation will affect the revenue and profit generation. In recent period, India has seen
a good political support for the MNC's to establish and flourish in Indian market.
 Economic: In past five years, India has seen a good growth of trade and business. The
rise in industries and involvement of FDI. Even in the time of recession, India has shown
en effective growth in revenue generation and thus has lead to the maintenance of good
sales in market. The rise in economy and purchasing power of customer has been the
major factor that had improved the growth rate of India.
 Social: With the globalisation and involvement of the latest trends, the demographics and
customer preferences have been changed, influencing retail sector to greater extent. Now
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the customers are asking for more customised and personalised services, this has lead to
the rise in demands and the customer engagement with the firm.
 Technological: The rise in adaptability in the latest technology has made India one of the
major and high tech market with large number of users or buyers of e commerce services.
This will also help in providing the customers with high level of innovative, technical
retail services (Brewster, Mayrhofer and Morley,, 2016).
 Environmental: The environmental concerns have been increased in recent time in
India. Many environmental firms and government has set up the standards that have
impacted the growth and development of environment friendly practices and approaches
in India to reduce the carbon footprint.
 Legal: Tesco has to look after the effective measures to follow various labour laws and
other trade regulations that are operational in retail sector to have an effective
functionality and generate a good revenue.
The expatriate will play a very crucial role in the business operations of the firm and thus
will look after the better adoption of innovative measures to involve maximum number of staff
and avoid the cultural and language based issues associated in training of local employee's. They
will also look after the implementation of effective work practices and set the standards to meet
company's expectations (Chelladurai and Kerwin, 2017).
LO2 Evaluation of main HRM theories and Models in relation with economic drivers.
Tesco has a well established and consistent business strategy that has impacted the
overall growth and development of the cited retail firm in a much effective and significant
manner. The increase in the emphasis on modern technology and the offering of high class of
products and services have been the major reason for growth and development of retail firm in
market. The effective top management of Tesco plc helps in better engagement of the work force
that has helped in improving the core competencies and effectiveness of retail firm. The Tesco
plc will see through the effective handling of wide range of business operations that will help in
better growth and development of wide range of business operations. The managers and the
expatriates at the cited firm will see through the effective adoption of high level of business
operations and recruitment processes (Jackson, Schuler and Jiang,2014). The HR managers or
the expertises at Tesco plc will use the different measures like Rodger seven point plan that will
help the firm to gain a good control over the recruitment factors are as follows:
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 Physical traits: it will involve the factors like health, physique, appearance, speech etc.
this will help the firm to select the effective measures to adopt the various operations and
training measures as per the physical factors that are been taken in consideration for the
better development of work force and employees from the local environment.
 Attainments: this involves the factors like education, qualification and experience from
past, that is been possessed by a candidate or an employee. This will help and will make
it easy for the firms to develop and gain a good control over the operations that will lay
an impact on the wide range of operations followed by the cited firm. Good knowledge
and experience will help the manager of firm to select or recruit the best employees in the
firm and implement better HR policies.
 General intelligence: It involves the fundamental intellectual capacity or aptitude
approach of an employee. The intelligence level that is been possessed by individual
employee will help him or her to perform better at the work place and support the HRM
department of Tesco plc to implement a suitable HR policy or practice that will help in
the effective rise in the effectiveness of business operations and productivity of
organisation (Knies and et.al., 2015. ).
 Special aptitudes: This will involve the specific attributed that have lead to the rise in
core efficiency of a business organisation. It may involve the ability to multitask, having
mechanical knowledge, good computer literacy etc. This adds to specialization and will
help the firm to gain a good control over the various operations that are been taken in
effective consideration the HRM department of firm for better implementation of
employee welfare policies and growth measures.
 Interests: It involves the individual practices and the hobbies that are been possessed by
an individual and will help in improving the confidence level, intellectual informations
and social interactiveness by and employee that will be deeply taken in consideration by
firm. Its helps in improving the efficiency and effectiveness of an individual at the work
place. Also, it helps in having the innovative actions or practices at work place
(Marchington and et.al., 2016).
 Disposition: these comprises the attributes that will help in better rise in effectiveness
and skill set of employees, making it easy for HR manager at Tesco plc to have a good
idea about the employee's efficiency and effectiveness that also lead to better employee
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engagement and team formation at cited firm. It consists of the better adoption of
measures that will help in good growth and development of HRM at Tesco plc.
 Circumstances: It also plays a very deep impact on the work force that will lay a very
deep impact on increase in efficiency of cited business firm. These comprises the factors
like local or domestic factors in the family or friends etc. this will help in the better rise in
operational efficiency of individual employee, helping in better recruitment process
(Purce, 2014).
LO3 Effectiveness of HRM strategies in achieving the goals of employee
commitment, flexibility, quality and strategic integration and the reward system management.
The HRM strategies that are been taken in consideration by the Tesco plc will help the
firm to gain a good control over its operations in the local as well as the host country. This will
help the cited retail firm to increase the effectiveness and impact on the rise in the effectiveness
and efficiency of the business organisation to meet the targeted goals and the operations that will
help in increasing the core efficiency of a business operation. The employee target goals that are
been set in the firm will help the organisation to increase the effectiveness of the business
organisation as well as the employee's (Reiche, Mendenhall and Stahl, 2016.). The HRM
strategies are the overall plan that will help the firm to improve the core competency and
efficiency of the business organisation in the better way. This will also help in the suitable rise in
operational capacity and adaption of flexibility in the organisation which will support the better
reward system management. Some major strategy that is been taken in consideration are:
 Leadership strategy: It will involve the top management of the business organisation
that will look after the failure or success of the various plans or actions that are been
taken in consideration by the firm. It will help in the better decision making that will
support the effective increase in staff success and meeting of the targeted goals. The HR
manager and other top management executives at the Tesco plc will look after the better
management of strategic plans that will help in their better growth and reward system
management.
 Talent strategy: this approach will help in the better management of the human resource
talent at the cited business organisation that will help in better handling of business
activities. The company will prefer the high talent and the organisation that will help in
effective growth of business operations that will lead to improving the employee's work
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flexibility and quality of services that will lead to rise in productivity and revenue
generation by the firm (Riley, 2014.).
 High performance strategy: such strategy is operational in the cited firm as it helps in
the production of high quality of products and services by Tesco plc. This will improve
the work place environment, causes the improving in task flexibility and integrity, for
improving the quality of services and ensuring the high performance by the cited business
entity. The effective strategic implementation help in increasing the satisfaction level of
employee's, improving their efficiency and creativity to have a better reward
management.
 Strategic planning: it involves the better planning that help in the effective rise in
efficiency and rise in the effectiveness of the actions performed by the employees at the
cited business firm. This may involve the effective involvement of various policies,
amenities, benefits and opportunities, which will help in better growth and development
of the company and provide a good satisfaction level to their customers by developing
high quality product and services. Also, the better strategic integration will lead to the
improvement in employee satisfaction level at firm and thus help in better rewarding
process.
LO4 Differences in approach to HRM globally. Importance of training and its types
HRM is related to managing and controlling people in an organisation. As an
organisation is having diversified people working in it, thus it becomes essential to provide
training to them ((Chelladurai and Kerwin, 2017). HRM is an universal method of developing
policies, strategies and processes for personnel management. For multi national organisation it
becomes difficult to develop similar policies for employee. It is because they have to follow
different countries laws in HRM. Therefore, there are various differences in HRM globally. They
are described below :-
DHRM and IHRM- Domestic HRM means activities performed by organisation in a specific
country whereas international HRM works on global level and focuses on strategic HRM.
Importance of training – Training can be important for an organisation in several ways :-
Reduced supervision and direction- Trained employee do not require supervision as they know
how to perform task and what to do. With this supervisors can focus on other things.
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Increase in productivity- The main purpose of providing training is to increase overall
organisation productivity. Trained employee works in effective way thus improving quality of
goods and increasing its quantity.
Economical use of resources – By providing training resources are been utilised in economical
way. This helps in reducing expenses and generating more profits.
Types of training -There are different types of methods available for providing training to
employees. It depends on tesco and the country in which it had to provide training (Brewster,
Mayrhofer and Morley, 2016) The methods are as follows :-
In house - It is a training that is given to employees to improve their efficiency so that
organisational goals and objectives can be achieved effectively. It is related to teaching work
skills and knowledge. Generally, it is provided to employees of particular department such as
engineering, management, maintenance, etc.
Off the job – It is a method in which training is provided away from workplace. It is either
provided by supervisor or expert. In this only theoretical knowledge is given. It is provided to
large number of employee at same time. It is very effective and time saving. It often utilises
lectures, case, studies, role play, etc.
On the job – In this training is given at workplace so that practical knowledge is gained by
employee. It describes their roles and responsibility and shows them what to do. Employee learn
while working with superior (Brewster and et.al., 2016) There are several methods in this such as
job rotation, coaching, internships, etc.
Importance of development framework-
It becomes easy for tesco to develop training strategies by identifying difference in
approach to HRM. This helps them to reduce employee turnover by providing effective training
to them. Also, it is helps in improving their efficiency by implementing appropriate training
method. If training needs are identified then it is easy to train employees. Moreover, it is useful
in changing approaches of HRM.
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LO5 Evaluate the theory and evidence about the relationship between HRM and
organisational performance
The different theories and the models like contingency theory or Harvard model, that are
been taken in the effective consideration by the Tesco plc will help in the improvement of the
organisational performance but also help in increasing the efficiency and handling of the
business operations in a much effective and better way (Sparrow, Brewster and Chung, 2016).
These theories and models will help in the better management of the business operations that will
help in the better handling of the business operations and meeting the targeted goals in a much
effective and significant manner.
The appropriate utilization and implementation of HRM models and theories at the work place
will lay a directly proportional impact on the growth and development of cited business firm that
will help in the effective rise in Tesco plc effectiveness and revenue generation. Besides this, it
will help in increase in employee satisfaction level and participation in business organisation. In
other words, the employee participation is the involvement in the operations of the business.
Thus, this relationship approach will have following benefits or impacts on the decision making
and operational management of the firm:
 Improvement in the efficiency of the project teams and the tasks performed that will help
in better handling of business operations in a much effective and sustainable manner.
This will also help in increasing the customer satisfaction and efficiency standards.
 Employees taking innovative approaches and models that will help in the better growth
and development of the cited retail organisation will be appraised and will be rewarded
by firm (Storey, 2014.).
 The exchange of ideas and facts or informations will help in contributing to rise in overall
performance of the firm and improve the efficiency of the business organisation. This
will not only help in building a better team bonding but also lead to the adoption of better
products services and strategies to improve the organisational performance on a wider
scale.
 Improving the trust, knowledge and confidence level of the employees at the ground
level. As the lower level employee will be on the direct interaction with client or
customers, they have to be effective, highly interactive, skilful and knowledgeable in
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order to rectify the problems that are been faced by the customers of business
organisation.
Such activities are quite important for the business organisation like cited retail firm as
these help in increasing the employee management interaction, leading to development of a good
relationship. The effective rise in the satisfaction level will help in the better growth and
development of the organisation and support customer's satisfaction level in much effective and
sustainable manner (Tenhiälä and et.al., 2016). Also, the adoption of different activities and
HRM models will help in improving the revenue generation that will help in gaining a better
sustainability in market and increasing the efficiency of business organisation as well as its
employee's. It also facilitates the better team building and improving the interdepartmental
communication level at Tesco plc which will help the firm and support it to develop more
effective and innovative products and services. Other than this, it will also help in gaining a good
customer satisfaction level, leading to a good revenue generation.
LO6 Organisational, national and cultural issues in HRM strategy.
Organisation has to implement different HRM strategies in different countries according
cultural and national policies.
Organisational- It includes cultural and structural issues that affect implementation of strategy.
HRM strategy is applied in overall organisation so number and levels of departments has ton be
considered while developing strategy.
Cultural- It consists of ethics, values, etc. of people and society. According to it tesco has to
develop HRM strategies (Riley, 2014).
National – It included national laws and regulations that has to be followed. It consists of labour
law, health and safety, etc. These issues has to be considered while developing strategy.
Theory of reward management and its implications – Reward management is an important
function of HRM that main aim is to motivate and retain employees. It shows organisation
contribution towards employees. It reflects on organisational culture. By establishing reward
systems it is easy to give rewards to employees. It main purpose was to motivate employee with
their performance. Moreover, a link is created between efforts and rewards through specific
targets. Furthermore, by this employee needs are identified by organisation so that it can be
fulfilled. Rewards are of two types that is intrinsic and extrinsic. Intrinsic are non monetary
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