Tesco's HRM Strategies: Aligning Labor, Culture, and Competitive Edge

This report provides an analysis of Human Resource Management (HRM) strategies implemented at Tesco, a multinational retailer, focusing on their impact on organizational performance and competitive advantage. It examines strategic HRM models, differentiating between HRM and personnel management, and explores how Tesco aligns with labor market demands. The report assesses the influence of national and corporate culture on staff management, evaluating organizational levers like performance management, recruitment, training, and compensation systems used to achieve sustainable competitive advantage. Furthermore, it delves into job design strategies and offers corporate examples of effective HR practices, concluding with recommendations for employers to maintain organizational performance through strategic HRM practices.

HUMAN RESOURCE
MANAGEMENT

EXECUTIVE SUMMARY
Human resource management is key process which comprises various strategies. by using
strategic approaches helps in recruiting, retaining, staffing and selecting skilled workforce which
helps in managing company and achieving great performance by working effectively. Tesco
recognised as h supermarket stores the multinational retailer selling large number of goods and
services to consumers. various organisational lever helps company as for adopting changes in
successful manner. Also national and corporates cultures affects companies working practices,
decision making process and procedures for retaining and training employees.

TABLE OF CONTENTS
INTRODUCTION................................................................................................3
MAIN BODY.......................................................................................................4
Strategic HRM models and concepts, also discussing difference between HRM and
personnel management and describing strategies adopted by Tesco for aligning the labour
market.....................................................................................................................................4
Analysing impact of national and corporate culture on management of staff........................6
Evaluating organisational levers available for managing human resources as to contribute
sustainable competitive advantage.........................................................................................7
Analysing various job design strategies chosen by firm......................................................10
Corporate examples of local and transnational firm for illustrating good HR practices......11
Recommendations to employers regarding HRM practices for maintaining organisational
performance..........................................................................................................................11
CONCLUSION...................................................................................................12
REFERENCES...................................................................................................13

INTRODUCTION
Human resource management is the key important business functions which helps in
managing various personnel’s effectively in organisation. Human resource management helps
in planning, staffing, recruiting, retaining, selecting competent personnel’s for effectively.
Tesco the multinational retailer operations various supermarkets stores globally. Its is
recognised as the third largest retailers selling various food and non-food products in stores.
The public limited company selling shares in market to public. This report provides details
relating to the various HR practices and strategies with respect of covid 19. Also using
strategic HRM models and strategies used by company for aligning the demand with
available labour markets. Also analysing about the impact of national and corporate culture
on managing staff. Furthermore, evaluating the organisational levers for managing the human
resource for attaining competitive advantage. Also analysing the companies job designing
strategies. also stating corporate examples as for illustrating the good HR practices for the
firm. Lastly recommendations to employers regarding HRM practices as for maintaining the
organisational performance of company.
MAIN BODY
Strategic HRM models and concepts, also discussing difference between HRM and personnel
management and describing strategies adopted by Tesco for aligning the labour market
Human resource management in company comprises of strategies which helps in
recruiting, staffing, retaining, selecting potential employees for managing individuals in
company as for performing work operations. Potential and skilled employees help in attaining
competitive advantages for Tesco (Thumiki, Jovancai-Stakić and Al, 2019). The strategic
HRM models are mainly designed as for managing workforce as by retaining potential,
skilled employees for achieving desired goals and objectives of company.
Difference between HRM and personnel’s management;
Approach: The HRM is the modern approach for managing the employees in
company but, the personnel management is the traditional approach for manging workforce.
Nature: HRM comprise of strategic function, whereas personnel management is the
routine function.

Objective: HRM helps in determining and formulating procedures and policies with
needs whereas personnel management handle employees according with the goals of
company.
Focuses on: HRM focuses on values and needs whereas personnel management gives
priority for efficiently managing employees.
Decision making, communication: HRM decision making is faster and directly
communicating in pen manner with all employees. Whereas in personnel management
decisions making process is slow and indirectly communicating with employees.
Key function and orientation: The main key functions of HRM is to acquire,
develop, recruit and maintain potential workforce. Whereas personnel management include
administrating personnel’s, welfare of employees (Mohapatra and Sundaray, 2018). Also,
HRM is oriented towards developing and growing employees and personal management is
oriented for aligning workforce with discipline and control.
The strategic HRM models which helps in acquiring talented individuals and aligning
labour markets with the strategies adopted are:
Warwick model: Warwick strategic HRM model emphases on the external and
internal factors as of macro and micro factors and the interactions between thee two factors
help in adapting changes effectively when forces are recognised and measured taken
carefully. various internal factors are Tesco policies, strictures, culture and strategies adopted
which are interacting with external factors as of political, economic, social, technical, and
other competitive factors (Cherian and et.al, 2021). As by adopting various changes from
these factors helps in aligning business objectives with the labour market and supports in
achieving growth during pandemic.
Forum model: Forum model emphasising the four aspects and ignore all the other
factors which affects company’s policies, procedures. four functions of this model are the
selection, appraisal, rewarding, also training and development. As by adopting this strategic
model of HRM in Tesco helps in achieving growth and increasing profits as it helps in
attaining and maintaining optimal growth of company. Furthermore, it also helps in reducing
cost of operations as by recutting skilled and potential employees for effectively working in
company. thus, by adopting this model in company helps in creating competitive advantages
for other as it helps in aiming and attaining productive employees by organising various

training sessions and developments programmes for motiving employees as to adopt various
skills and abilities or working with latest procedures.
Various HR strategies adopted by Tesco for improving performance are :
Operating business by using online platform: Due to covid 19, Tesco has shifted its
day to day commonly operations on online platform. The main strategy behind this to for
ensuring safety and security of workers also consumers. while operating online consumer’s
prefer home delivery of various products. also assigning work from home to employees for
providing safer working conditions dur to spread of covid pandemic.
Investing into competent personnel’s: The HRM of Tesco company is investing into
the competent personnel. as by recruiting and selecting skilled employees as lashing the
strategy of hr with various planning of company (Strategic Human Resource Management
Case Study Tesco Plc, 2022). As planning and investing into competent personnel’s helps in
recruiting available skilled workforce for performing various task in company.
Employee relations and organisational development: This strategy helps in
adopting various approaches by the HRM as for building better relation among all the
employees of company. as by modifying changes and designing strategy for enhancing and
implementing succession pans as to achieve success for the company. thus, strategy helps in
aligning and recruiting productive workforce from the available labour market in the dynamic
environments.
Analysing impact of national and corporate culture on management of staff
Culture is well-defined process with combining shared beliefs, values and preferences
of various individuals. Culture operated nationally affects the company policies, procedures,
decision making processes and working patterns as for producing and distributing various
products to large number of consumers around the world. National culture comprises of
different languages, attitudes, regions, traditions, and regulation of government. National
culture is influences by various factors as of political, economical, technical, legal, and social
factors. These all factors influence company working practices and procedures internal and
external level.
Corporate culture is being defined as the process of communicating and interaction
between various individuals as which impacts workforce in positive and negative manner.
Both the cultures followed national and at corporate level affect the employees working in

company. as the time frame, education patterns, various different styles adopted as of
managing and leading employees nationally, regulations and traditions impact the working
conditions, growth earning capacity and performance of employees. Moreover, the national
and corporate culture also impacted various interpretations of companies employees, as
interpretations made for operating various task, adopting different methods of production
affects the company cultures by the different cultures being followed nationally. As the
corporate cultures adopted by the company impacts the policies, procedures and working
practices and decision-making process of Tesco (Anif and et.al., 2019) . also, various training
methods and developments programmes affect the company culture. thus, national and
corporate culture will impact employees personnel’s duties and responsibilities, also
compensating procedures and performance of employees.
Evaluating organisational levers available for managing human resources as to contribute
sustainable competitive advantage
Organisational levers is being defined as the tools or the methodologies, which is
being used by the companies for implementing change in the management successfully.
These levers are adopted by various firms for implementing change in successful and
effective manner. Different organisational lever available with company are as follows:
Performance management
Managing employee’s performances basically done for improving the performance
for completing various task of the company. this organisational lever helps in adapting
changes as human resource manager uses various tool as KPIs for monitoring performance.
as while monitoring performance various problems and conflicts of employees can be
identified and helps involving issues faced by employees (Mountford, 2019). As by using this
lever helps in motivation and encouraging employees for adopting changes. Thus,
implementing this lever in Tesco helps in achieving substantiality advantage by recruiting
personnel’s and constantly monitoring theory performance as for improving and increasing
companies profits with efficiently workers.
Recruiting talented and potential employees
Recruitment and staffing potential employees working in Tesco provide efficiently
usage of available resources within producing optimum level of outcome. When the
competent personalise employees in company at right place for performing various work in

company helps in creating attaining competitive advantage for the company. As in Tesco
right skilled personnel will provide satisfaction to all the consumers by serving products
better with the right information. Right and potential employees help in optimising and using
strategies and approaches for increasing profits and grasping large target market (Eka, 2021).
Thus, by recruiting right talent and skilled employees and aligning right strategies helps in
adopting change in the company as for better performing and achieving competitive
advantage.
Training and development programmes
This organisational lever helps in motivating and encouraging employees for adopting
changes. As training employees as for acquiring various skills and abilities as for performing
various work n company. Training employees for developing skills helps in increasing
productivity and helps in attaining creativity to the work performance. As it is attained by
providing trainings and development programmes to employees by offering various options
for developing necessary abilities for performing various task in company. for instance Tesco
is conducting various training and development programs, for strengthening employees skills
and acquiring abilities for producing and working efficiently in company .
Moreover, by providing clear information for the changes which is to be implemented
in the company supports employees for understanding the changes in policy and procedures
and adapt them easily by clearly communicating them (Sapta, MUAFI and SETINI, 2021).
Moreover, various developmental packages given to employees and some financial supports
helps employees by motivating adapt the change as being communicated. Thus, training and
developmental programs helps in grasping and creating competitive advantages for the
company as to serve large consumers in the rapid changing environments.
Compensating system of company
Compensating system of company influences workforce, as for working in effective
manner by motivating employees. As by compensating employees for assigned work helps in
encouraging and boosting morale of employee’s personnel’s also it retains competent
personness for performing challenging work in the retail supermarkets store of Tesco. As for
instance company is paying equally to all employees with assigning equal work
responsibilities. Also, the club card option of company is offering 15% discount off for every
pay day. also buy as you earn and savings as you earn schemes is also being introduced by
the company for compensating employees and rewarding with offering additional benefits.

Thus, by adopting various compensating as equal pay systems helps in improving the
company procedures as by investing equally and in efficient personnel’s helps in attaining
competitive advantages.
Providing proper infrastructure for supporting various task
Providing proper infrastructure to all employee’s personnel’s as for working in
company. As by providing proper infrastructure to employees help in adopting changes
effectively. As safe working conditions with sufficient infrastructures to operate business as
to serve large consumers helps in reducing and manufacturing products in effective manner.
Implementing new technology equipment’s for reducing time helps in reducing the repetitive
tasks and working in frequent manner as adopting new ways of operating and producing
products to consumers (Atkinson and et.al., 2021). thus by providing proper working
conditions helps in creating competitive advantage as it influences employees for adapting
changes without hesitation, as when employees are satisfies with the working conditions will
willingly adopt changes as communicated by company.
Rewarding and appraising personnel’s
Rewarding and compensating employees as for contributing extra efforts in company.
Also appraising employees in front of public helps in motivating employees for working with
great enthusiasm and working effectively. as when employees are recognised as for
performing desired work in the allotted time and in effective manner helps in adapting
changes easily. as for instance when employees are working (Ybema, van Vuuren and van
Dam, 2020). As Tesco, is rewarding employees by giving monetary and non-monetary
incentive benefits. Thus, by rewarding and recognising employees for extra contribution and
compensating with monetary benefits helps in attaining competitive advantage as by serving
large number of consumes in better and effective way than the competitors for providing
great satisfaction.
Establishing positive and purposeful culture
Purposeful and positive culture and working environment influence various
individuals as for adopting changes which is being communicated by the company. As
working in flexible culture helps in retaining employees and adopting change easily. Tesco is
operating in exciting positive team-oriented culture (Kooij and Boon, 2018). As by fostering
innovations and developing employees by training and development for personal growth and

empowering employees. Also satisfying the consumers by providing quality and reasonable
pricing products.
Directing in strategic manner
As directing in strategic manner helps in building competitive advantage for the
company. it helps in understanding companies’ purpose as for achieving the desired goals
within standard time limits. As in Tesco, responsibilities to each and every employee is being
assigned by assigning the particular task according with the skills and capabilities. As
assigning the desk and allocating products in shelves to one person. this practice helps in
creating and strategically prioritising employees with the skills and abilities helps in
successful adopting changes when employees according to the skills and other capabilities for
performing work.
Shifting resistance to change
Resistance to changes is being described as the not adopting the changes easily as
being interpreted by the company. The unwillingness to perform the work and adopting
changes which is being described by the company as for working in effective manner by
adopting various new methods and procedure for performing and completing various task. As
when company is receiving this used for not adopting changes easily and retaining to change.
By managing and structuring employees of company as by utilising with the full potential.
Furthermore, by resolving various conflicts and issues between various employees helps in
motivating employees as for setting archivable targets and approaches for adopting changes
successfully. as by shifting the resistance to change helps in creating competitive advantage
which helps in attaining growth for Tesco as working in the dynamic market conditions.
Analysing various job design strategies chosen by firm
Job designing strategies adopted by company as for motivating workforce by
establishing employees roles and responsibilities as for encouraging employees behaviour for
creating strong infrastructure. Tesco is adopting job enrichment and enlargement strategy as
for designing jobs to employees in company. This strategy emphasis on adding more
responsibilities and dimensions to the exiting role in the company. as for instance Tesco is
employing the desk worker employees for making bills also for placing various products
properly in the shelves in supermarket stores. This is mainly adopted by company as for
acquiring are of all the roles and responsibilities as by providing additional skill as for
managing stores in effective manner for attracting large number of employees for purchasing

products from stores (Human Resource Strategy of TESCO in UK, 2022). Also, by adopting
job enlargement strategy aids in motivating employees as for increasing more efforts for
performing additional task in company. this helps company in achieving desired objectives
within prescribed time.
Corporate examples of local and transnational firm for illustrating good HR practices
Illustrating examples of various corporate and transnational firms using good HR
practices are as follows: Unilever company operating as the local company in uk, has adopted
the selective hiring procedure for potential hiring employees. By adopting this policy helps
searching for the talented and competent personnel for filling vacant position in the company.
Moreover, Human resource manager of unlivelier has adopted suitable strategy for attracting
potential and skilled employees by offering various paying packages also providing quality of
life and various career opportunities for growing career.
furthermore, Sainsbury recognised as the uk supermarket selling large number of
consumers food and non-food items. This company have adopted training and development
programs as for changing various attitudes, knowledge and skills in company. developing
various employees as for developing technical skills and building overall personality. this hr
practice helps in increasing productivity of employees for working in company and creates
healthy working environment in Sainsbury.
Recommendations to employers regarding HRM practices for maintaining organisational
performance
HRM is the most important function for managing employees and recruiting potential workforce for
performing various task in company.
 Tesco must maintain self-efficient and managing team personnel’s for achieving high
performance. as for this HR manager must design proper strategy for supporting
collaborative working methods also using various tools for encouraging working
patterns with inclusive of diverse workforce aligning plans for achieving combines
goals.
 Tesco company must provide clear and precise information for accessing all tool and
equipment’s for working and producing products of company.
 Tesco must provide training at initial level to all employees for operating with
efficiency in company from the initial stage.

 HRM must adopt various strategies as for encouraging employees and various other
officials this helps in creating sense of belongingness and maintaining increased
organisational performance.
 Tesco must involve various employees while making decisions at various levels, this
helps in encouraging and motivating workforce for adapting changes easily and
retaining competent personnel in company.
CONCLUSION
From the above report it can be concluded that, humane resource management is the
most important process as for recruiting, staffing and selecting potential employees as for
working effectively in company for achieving set targets. Tesco recognised as the largest
multinational retailer supermarkets store. mainly seeing food and non-food products to large
number of consumers in the market. Various strategic models aligning to the demand of the
available labour markets are namely forum model, Warwick model. These two model help in
aligning to the available workers with the strategies adopted by the company. also, the
organisational strategies including operating business on online platform as e commerce,
investing into competent workforce, compensating and rewarding employees, developing
organisation. Also, there are various organisational lever being identified and used for
adopting change easily are recruiting talent employees, compensating employees, training
and development, rewarding employees for success, strategic direction, shifting resistance to
change, positive cultural environment. Furthermore, the job designing strategies used by
Tesco company is job enrichment and enlargement. Also, various recommendations given for
aligning the HRM practices for maintaining organisational performance.