International HRM Strategies for Tesco: A Comprehensive Report

This report provides a comprehensive analysis of Tesco's Human Resource Management (HRM) practices in the context of its international expansion. It begins with an executive summary and an introduction to Tesco, highlighting its HRM focus. The report then critically reviews existing HRM practices within Tesco, emphasizing their importance in overcoming business challenges. It delves into leadership theories, specifically trait and behavioral theories, and evaluates the suitability of contingency theory for Tesco. Furthermore, the report examines behavioral dimensions within an international environment, identifying key challenges and strategies for attracting and recruiting local talent. It also explores best practices in International HRM (IHRM), comparing Tesco's approach with that of ASDA. Finally, the report offers recommendations for managing human resources in a multinational setup and concludes with a summary of key findings.

International Haman
Resource Management

EXECUTIVE SUMMARY
Human Resource Management practices have evolved with the changing market trends and it is
no longer a theoretical concept. This report identifies the change or evolution in both leadership
and HRM practices and the manner in which they are applicable in the organizations particularly
in context to Tesco. The report helps in highlighting the different aspects related to HRM and
identifies the best strategies that can be adopted. This report is important for the HR managers in
managing the employees and contributes in the organizational growth by recommending the
appropriate improvements that are to be made.

Table of Content
INTRODUCTION...........................................................................................................................4
REVIEW OF EXISTING HRM PRACTICES................................................................................4
Critical Review on Human Resource Management Practises of Tesco.......................................4
Importance of Human Resource Management in Tesco..............................................................5
LEADERSHIP THEORY REVIEW...............................................................................................5
Critical Review on Two Leadership Theory................................................................................5
Leadership theories..........................................................................................................................6
Suitability of contingency theory in TESCO -.............................................................................6
BEHAVIOURAL DIMENSIONS IN HRM....................................................................................7
Key challenges that face in international environment..............................................................7
Strategies to attract and recruit local talent ................................................................................8
BEST PRACTICES IN IHRM........................................................................................................8
International HRM practises applied in TESCO and ASDA.......................................................8
RECOMMENDATIONS.................................................................................................................9
Managing human resource in multinational setup......................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Human resource management (HRM) refers to the process of recruiting, hiring, and
selection of manpower for the organization. Human resource management plays a very vital role
in organization without HRM there will be no manpower. The report will be discussed on the
company Tesco. Tesco is the biggest multinational groceries and general merchandize retailer at
England and United Kingdom. It is the third largest retail store in the world measured by the
gross revenue and the ninth largest retail store by the revenues. The further HRM practise which
are discussed are as follows like safety of the employees , recruitment of the candidates.
REVIEW OF EXISTING HRM PRACTICES.
Critical Review on Human Resource Management Practises of Tesco
Important HRM practise which is involved in Tesco is hiring the right people at right job
as Tesco is a very large company so it required more and more manpower for the organization
and for hiring the best candidates (Banfield, Kay and Royles , 2018).It plays more attention on
the recruitment and the selection process of organization.
The major HRM practise is safety of employees at organization and it is the key element
of the organization pays more attention on future needs of the organization in terms of its people
and there safety so Tesco give more emphasis on the safety of the employees.Company use a
workforce planning programme to establish demand of new staff. The main work of the HR
practises of workforce planning at Tesco is for job description and person specification.
Another HR practise that Tesco involve is the organizational structure . The term
organizational structure refers to the systematic functioning of the departments in the
organization in effective and efficient way . Organization structure is the key element for any
kind of the organization. As Tesco deals in various sectors so it follows the organization
structure.
Another HRM practise involve in Tesco is training and development , The term training
and development refers to process of guiding the individual to perform a specific job (Noe and
Kodwani , 2018). Training and Development play a very role in the organization without
training and development no job can be performed .

Importance of Human Resource Management in Tesco
The major importance of human resource management is recruiting person , guiding
them , performance assessment, motivating them to perform work at workplace and the main
purpose of the human resource management is to achieve organization objectives as soon as
possible (Arvanitis, Seliger and Stucki , 2016). HRM emphasis on the make the use of human
being as the asset of the organization not the non- asset of the organization. At Tesco the main
emphasis is given on to develop the organization and strategies.
Human Resource Management gives more emphasis on workforce environment the main
work of the workforce environment to look after the working condition of the employees to
check whether the employee is feel to work free or not if they face any problem just look after
their problem. So Tesco include workforce environment planning. Human Resource
Management another major practise is the training and development of the individual . The term
training and development refers to the process of guiding the employees to perform the work in
the organization without training and development the individual cannot perform his or her
work . So Tesco involved training and development in the organization for their employees.
HRM another major element is analyse the performance . The term analyse of the performance
refers to evaluating or judging the performance of the employees Tesco involve this practise in
the organization.
LEADERSHIP THEORY REVIEW
Critical Review on Two Leadership Theory
There are many theories of leader which are trait theory,contigent theory, and behavioural
theory. The report will be discuss on following two theories which are trait theory and
behavioural theory (Dugan , 2017 ). Trait theory refers to the theory which is based on the
special qualities which a leader possesses in his or her personality which makes him different
from others.There are plenty of people who posses trait theory . Trait theory reveal the overall
personality of the leader . Tesco involved trait theory in which the personality of employees can
be judge by there workings easily and to assign duties according to them .So this is trait theory
involved in Tesco.
Another leadership theory is the behavioural theory .Behaviourial theory refers to by the
great saying that “ Leaders are made not born ” .This leadership theory focus on the action of the
leader not on mental qualities or internal state. According to this theory people can learn to

became leader through teaching and observation. Behavioural theory play a very vital role in the
the organization to judge their performance of the employees because it reflect the personality of
the employees that how they manage the work by their thoughts and ideas .Tesco gives more
emphasis on behavioural theory as compare to trait theory.
Leadership theories
◦ Contingency theory-This theory refers to dynamic and flexible characteristic traits in
leaders which allows them to work effectively with high performance standards and
encouraging leaders with high motivation levels. Contingency theory allows leaders
to build dynamic working approach in highly competitive business environment
where situations are highly volatile. This theory enables leaders to take significant
strategies regarding various contingent situations rising in company regarding which
leaders need to supervise the subordinates and team members effectively for cost
efficiency targets in production.
◦ Behavioural theory- It is based on the belief that leaders are made and not born. It
refers to the theory that leadership traits, capabilities can be learned with practise and
observation and not inherent. The behaviour traits of successful leaders which are
high competency levels to make risk taking sections, strong interpersonal levels and
high communication skills can be learnt with practise (Daniëls,Hondeghem and
Dochy,2019).Specific behavioural traits in people determine weather they posses
leadership skills or not. Charismatic personality along with positive attitude of leaders
motivate the team members in company to work hard with strong performance
standards.
Suitability of contingency theory in TESCO -
a . Contingency leadership is the most appropriate leadership style which leaders in
TESCO can adopt in company for reaching higher performance levels and
increased profit margins. As TESCO is one of the biggest retail company
globally, it faces high volatile business environment where situations are highly
changing.a . Contingency leadership traits will justify the consideration as leaders will be able
to take quick decisions depending on the competitive industry growth. This
leadership theory in Dynamic business culture enables team members to build

flexible approach in their working standards for enhanced quality performance
levels (Lee,Lyubovnikova and Knight, 2019).a . Contingency leadership allows leaders to have strong adaptability principle while
supervising the functions to subordinates and team members, due to which there
is high level of cooperation built in company. TESCO has several plans to expand
in international market globally with large number of stores with variety of
products and services. In Expansion of company operational structure leaders
need to build strong leadership skills with quick decision-making capabilities and
potentialities to guide the team members effectively (Lord, Epitropaki,Foti and
Hansbrough, 2019).a . This approach is one of the most effective leadership theory for leaders in RESCO
to adopt as it allows leaders to have full control over their de scions. There is high
volatile nature in global business environment due to which company aims to
reach high customer-based growth bys serving high quality products and services
(Tourish,2019).
BEHAVIOURAL DIMENSIONS IN HRM
International Environment is a multi- dimensational environment include political risk ,
cultural differences , exchange risk and legal and taxation issue . It comprises the political ,
legal , economic and regulatory taxes social and technological environment. So basically the key
challenges of international enviroment is explain below.
Key challenges that face in international environment
The major issue which is being faced during the international business enviroment is
understanding human behaviour . Understanding the human behaviour is the key element for
every business and the organisation (Ceil, 2017 ).As human are the key element of the
organisation so it is important to undersand the human behaviour so that effective work can be
perform . As on the basis of international business enviroment it is consider as a major issue
because as to starting an international business enviroment it is important to know the human to
make them for wirk in the organisation.
Another major issue related to international business enviroment is to identify employees
need . As employees are the asset of company so it the major responsibility to identify need of
employees (Oppong, 2018). In international business enviroment it is a major issue because as it

is a startup of the business so nobody is known to company and it face difficulty to understand or
identify employees need.
Another major issue can be talent acquisition or in other words it can be said that
recruitment and selection process. As talent acquisition is the key element for the every
organization but it is the major issue in the case if international business environment to recruit
the workforce or manpower for the organization .
Strategies to attract and recruit local talent
The best strategies to attract the local talent is a border job vacany as job seekers looks
for the clearity in job advertisement so it is the job of the recruiter to clear the job to the
candidate that what is the job is all about and the candidates get benefited by this job . Introduce
the job seekers form company that what is company is all about how its working enviroment is .
Another best strategy can be campus recruitment as collage are full of young and
dynamic talent (Rees and Smith ,eds , 2017). Campus recruitment help in recruiting the new
talent and more enthusiastic candidates for the organization. For attracting the new talent
different seminars , workshops ,internship programmes can be organized by company .
Another strategy can apply to attract the local talent is to be flexible as job seeker look
for the company in which the work pressure does not affect their personal life so the working
condition should be balanced so that employees can work on the monotonous basis which will be
beneficial for the organization (Paul and John, 2016). Some extra benefit can also be provided
which are work from home options ,weekly off,or some sports competition can also be organise
for a certain change in the working routine.
BEST PRACTICES IN IHRM
TESCO and ASDA are of supermarket sector .They both deal in the food products .
Tesco was founded in 1919 whereas Asda was founded in 1949. Tesco has the subsidiers in
Tesco Bank , Tesco mobile, etc whereas Asda has his subsidiaries in Asda Mobile ,Asda money
. So Tesco and Asda are somehow similar .
International HRM practises applied in TESCO and ASDA
Tesco and Asda both are of supermarket sector on the basis of some HR practises they
are different which are as follows :

Compensation
Tesco compensation policy are just to different form other supermarket industry along
with the competitive salary the company provide other special benefits to its employees some of
the benefits example are as follows ie. Bonus scheme, Flexible benefits , Pension scheme , Life
insurance etc.
In the case of Asda they provide employee reward and recognition in this there is in
month end an employee appointed as a employee of the month who has given a excellent
performance regarding his work (Brewster and et.al , 2016). The another benefit which Asda
provide to his employs is employee benefit scheme in which employees are given Asda gift
cards which provide them benefit in their monthly shopping . So these are the compensation
methods if Tesco and Asda .
Performance Management
As for evaluating the performance of the employees Tesco uses peer assessment
method . Peer assessment method is the method of regular review of an employee job
performance by their work group for its performance and overall contribution to company.
Tesco uses this method because it has many departments and to evaluat these large departments
peer assessment is been used.
In the case of Asda the performance management method which is used is 360- degree
feedback assessment . In 360 – degree feedback assessment the evaluation is done on the basis of
taking input from individual , his subordinates and its peers to check the overall performance of
the employee Asda uses this method because it has limited departments for which overall full
assessment is being required.
RECOMMENDATIONS
Managing human resource in multinational setup
For managing human resource in multinational setup the most important tool which are
recommended are as follows :
Tesco should involve multi-schilling.Term multi-schilling refers to the special skills
which is being use at different levels for managing the human resource on the multinational
setup . Different skills are required for various business so for multinational setup so multi-
skilling is must.

Another problem which is face in multinational setup is Diversified Culture Bratton and Gold,
2017). As multinational cultural is just opposite to the domestic culture so it creates difficulty for
the organization to understand the culture of that area or region during the setup . So to
understand the diversified culture to the Tesco is an important aspect. Another recommendation
which Tesco should apply is increase coordination for working in multinational setup the main
element is coordination due to coordination the goals can be achieved on time.Due to
coordination between the organization the targets can be achieved on time . So Tesco should
increase coordination in multinational setup. Another problem face during the multinational
setup is legal compliance as every country has its different labour laws which is very essential
to understand before multinational setup by Tesco .
CONCLUSION
The above report conclude and are discussed above are about the critical review on HR
practises which are evolved in Tesco. Importance of HRM in Tesco is discussed above in which
different aspects are measured which are workforce planning , training and development .
Another major issue which is being discussed is the leadership theories. (Trait and Behavioural
). Another topic which is been discussed above are behavioural aspects in HRM, Best practises
in IHRM .

REFERENCES
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