Tesco PLC's Strategic Human Resource Management Report Analysis

This report provides a comprehensive analysis of Strategic Human Resource Management (SHRM) at Tesco PLC, a multinational retail organization. The report explores the role of SHRM in attracting, developing, and retaining employees to enhance both individual and organizational performance. It examines how Tesco uses SHRM to formulate effective strategies, maximize productivity, and achieve profitability. The report delves into the use of the balance scorecard to measure employee performance, linking it to management strategies and overall business goals. Key aspects include employee engagement, best practices in the workplace, and the alignment of HR strategies with the company's strategic plans, vision, mission, and objectives. The report also discusses how Tesco evaluates individual performance, provides training, and aligns HR capabilities with business models to gain a sustainable competitive advantage. Furthermore, it emphasizes the importance of corporate social responsibility (CSR) and its role in building the company's image and contributing to social development. The report concludes by highlighting the significance of SHRM in achieving business success through effective management, talent acquisition, training, and performance measurement, with a focus on the retail sector's specific needs.

Strategic Human
Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION .......................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Strategic human resource management is the organizational process which include the
various practices such as attracting, developing, retaining rewarding etc. It will be done in order
to provide benefits to the individual as well as whole business. Goals of human resource
department should be support the goals of organization (Bailey and et.al., 2018). Here HR
department have to formulate effective strategies in order to resolve operational issues and helps
in maximising productivity as well as profitability. For the better understating of this concept,
this project report select TESCO Plc. Company founded in 1919 by John Cohen and its
headquarter situated in Welsyn Garden City UK. Tesco is an retail sector based multinational
organization which deals in groceries & general merchandise items. This report cover various
topics such as role of SHRM and how it provide benefits to measure employees as well as
organisational performance. In addition it include that, how balance score card use to measure
individual performance and it is linked with the management strategies.
MAIN BODY
Human resources management (HRM) is the strategic approach and it will be used for
effective management of people which further provide competitive advantage in the market.
HRM of the company should design to maximise productivity as well as profitability of the
company. Main function of human resource management (HRM) is to recruit or hire talented
people and provide them necessary training which enhance their skills or competencies. In
context of Tesco plc, HR manager hire talented candidates which helps the organization to grow
and increase employees productivity through providing effective training which improve quality
of work.
Strategic human resource management (SHRM) is the process to attract large people,
develop individual through providing required training and make sure to measure performance
which used to provide rewards and other benefits. Manager of Tesco Plc, follow SHRM in order
to formulate strategies and implemented in effective manner and make sure it help the business
to maximise productivity as well as profit margin. These strategies developed in order to identify
that current resource able to satisfy the requirement of business (Brewster, 2017). Manager have
to ensure or focus on that human resource strategies must link with the strategic plan which
develop in order to satisfy customer needs & expectation. It will further beneficial in maximising
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productivity or profitability and and make sure to achieve business goals & objectives. At the
time of formulating strategies, manage should focus on vision, mission, goals or objectives of the
company.
There are some major role which perform by the SHRM such as employee engagement.
It is one of the best way to get success through making strong employee engagement because it
helps in retaining talent in the organization and will be possible when individual satisfied with
their jobs. Another role is to introduce best practices in the workplace which increase the
efficiency as well ass effectiveness of employees. It further helps in improving individual
productivity or profitability which provide overall benefits to the whole organization. In context
of Tesco, SHRM used to improve HR effectiveness and include the process which encourage
individual to push their limits and perform well (Delery and Roumpi, 2017). It also refer the
companies activities such as employees issues need to resolve as soon as possible they can.
Because when employees are satisfied with their work then they further provide quality work.
Before formulating or implementing any strategy manager of Tesco have to evaluate or analyse
business activities and further perform accordingly. Organizations used to develop strategic
business plan which provide competitive advantage and strategies formulated for each functional
area such finance, marketing, operations, human resources etc. From the overall understanding, it
will be recommended that manager have to recognize overall human resources because they play
major role to achieve business goals & objectives.
Human resource management use balance score card method to measure employees
performance and identify that how organization grow in the accounting period. Balance score
card is the tool which used to measure performance and it is used by the manager of the company
in order identify the area which required improvement. Along with this, it also used to provide
various benefits such as rewards & incentives and it is totally depend upon the employees
efficiency, productivity or overall performance. Manager of Tesco plc, use this measure to
evaluate their employees efficacy but make sure to measure performance on particular basis such
as financial actions, customer satisfaction, learning & growth and internal business process.
With the help of balance scorecard, manager can increase communication among the
different business units (Jackson, Schuler and Jiang, 2014). It include the daily work of
employees which beneficial for manager to evaluate overall performance and they make sure that
business follow all the strategies which formulated on the purpose of achieving business goals &
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objectives. Tesco's manager use this tool to measure performance and provide necessary training
where individual lack to show their full efficiency. So it is manager's responsibility to identify
the area of implementer and enhance those quality through providing training which improve
skills, capability or make them able to perform well in the future. Organization evaluate
individual performance on the basis of four perspective. First one is financial, main objectives of
the company is to maximise profit or revenue. Manager identify that individual fulfil this
objectives or not through minimising the cost of product, increase work efficiency, high profit
margin etc. Second base of balance scorecard is to identify customer perspective which evaluated
through analysing customer's satisfaction level and high market share. Another perspective is
internal process where manager identify that how financial or customer satisfaction related with
the organizational goals. Company set some operational objectives which they have to achieve
and for that they have to formulate strategies.
Business need to analyse organizational process before formulating HRM strategies
linked with them management strategies. In order to complete this process they have to follow
some steps. Initially develop a careful understanding of company's objectives because success of
HR department possible when they link goals & objectives along with business strategies. HR
have to determine short term as well as long term plan for growth (Knies and et.al., 2015).
Organization have to communicate their goals among the employees so they are also able to
follow common path or achieve the success. Along with this, before developing any strategy
company have to evaluate HR capability which further provide understanding that how to
contribute in order to fulfil their goals & objectives. Here, HR department need to evaluate their
employees skills & competencies or they required additional skills then provide necessary
training in order to improve their performance which automatically increase the productivity or
profit margin of the company.
In context of Tesco plc, HR dependent formulate strategies as per the requirement of
business and relate with organizational capability where manager have to focus on main sources
which provide sustainable competitive advantage. These competencies hard to copy by other
forms. Along wit this, these capabilities need to support business model of the company because
when whole organization going to grow, they it required effective leadership, flexibility and
process management in order to overlook their business actions or activities.
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HR strategies related with the individual performance or development of the
organization. Manager have to focus on those areas which required improvement and further it
provide benefits to enhance employees or whole business performance. It will be possible when
HR department evaluate or monitor every individual performance (Paillé and et.al., 2014). These
points should be consider in at the time of developing strategies and ensure that it help in
achieving business goals & objectives through maximising production or profitability.
Strategic management allow the business to identify or explore the opportunity and
provide objective view of management problems. It is beneficial in improving or coordinating
the activities which perform in the operations and make sure to control it for the period of
production. With the help of these management strategies, manager able to reduce the impact of
changes in the organization or business environment. It further beneficial in decision making
process which support the overall objective of the company. Basically, HR or management
strategies formulate in order to complete their task or get success in their work. So along with
making strategies, manager have to focus on these areas as well such as employees performance,
human capital management strategy, corporate social responsibility, performance strategy etc.
HR department also develop strategy CSR activity which is compulsory to done and it
also provide various benefits because social responsibility provide social development and
welfare as well. With the help of corporate social reasonability, company build their image
among the customers which further helps in increasing productivity as well as profitability. So
social or community contribution is very important, so HRM need to build strategies accordingly
and fulfil their duty.
Main function of human resource management is to recruit, manage, develop strategies,
motivate people and provide effective training which required to improve operational
performances. Another functions are to engage with employees in order to retain them or
measure individual performance (Sikora and Ferris, 2014). Department also make sure to protect
employees rights through following each standards. After developing each strategies and its
implementation, manager have to evaluate all the impact of all the activities on society. HR
manager is accountable or creditable of CSR activities and it is based on the its delivery and they
are responsible for various key system or process such as recruitment of people, communication,
training and motivation. At the time of hiring people, they have to ensure that selected people
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have relevant skills and competencies which make them capable to achieve business goals &
objectives.
Human resource management is very important function for business which required to
build strategies for effective management, recruiting talented propel, provide them necessary
training, measure performance to provide rewards & other benefits and maintain organizational
culture through satisfied each member of the company. In context of Tesco plc, HR department
perform their task and make sure that business process will be done in effective manner.
Manager of the company identify the requirement of organization and hire people accordingly
(Stewart and Brown, 2019). Such as they required people who can manage variety of customers
and able to understand their requirement is the store and they have to build plans for effective
distribution which maintain their goods availability in the market. In the retail sector, manager
have to focus on those activities which provide monetary benefits. Effective logistic or supply
chain management will make sure the distribution of products in the market.
CONCLUSION
From the above discussion, it has been concluded that human resource management is
very important in the organization in order to get success, complete operational task or achieve
business goals & objectives. Here, HR department have to take necessary actions where they
formulate strategies and perform accordingly. Manager of the company implement various
strategic human resource management (SHRM) which helps the business to manage their human
resources who are essential for them. In addition, use of balance score by HRM will help the
manager to measure employees overall performance which further beneficial for both such as
individual as well as business to track market growth.
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REFERENCES
Books & Journals
Bailey, C. and et.al., 2018. Strategic human resource management. Oxford University Press.
Brewster, C., 2017. The integration of human resource management and corporate strategy.
In Policy and practice in European human resource management (pp. 22-35).
Routledge.
Delery, J. E. and Roumpi, D., 2017. Strategic human resource management, human capital and
competitive advantage: is the field going in circles?. Human Resource Management
Journal. 27(1). pp.1-21.
Jackson, S. E., Schuler, R. S. and Jiang, K., 2014. An aspirational framework for strategic human
resource management. The Academy of Management Annals. 8(1). pp.1-56.
Knies, E. and et.al., 2015. Special issue of International Journal of Human Resource
Management: Strategic human resource management and public sector performance.
Paillé, P. and et.al., 2014. The impact of human resource management on environmental
performance: An employee-level study. Journal of Business Ethics. 121(3). pp.451-466.
Sikora, D. M. and Ferris, G. R., 2014. Strategic human resource practice implementation: The
critical role of line management. Human Resource Management Review. 24(3). pp.271-
281.
Stewart, G. L. and Brown, K. G., 2019. Human resource management. Wiley.
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