Strategic HRM: Analyzing TESCO's HR Strategies and Practices

This report provides a comprehensive analysis of Strategic Human Resource Management (SHRM) practices at TESCO, a global retail brand. It examines the relationship between human resource strategy and business strategy, highlighting how TESCO aligns its HR practices to achieve organizational objectives. The report delves into the evaluation and comparison of SHRM theoretical bases and models, including corporate strategy, business strategy, and HR strategy models. It also explores effective HR practices for performance and reward management, employee relations, and the roles of various actors in fostering positive employee relationships and participation. The analysis emphasizes how TESCO considers its employees as stakeholders, implementing strategies to enhance their performance, motivation, and overall contribution to the company's success. The report also discusses the application of different SHRM models, such as the Fiedler's contingency model, to understand leadership styles and situational variables within the organization.

STRATEGIC HUMAN
RESOURCE
MANAGEMENT

TABLE OF CONTENTS
EXECUTIVE SUMMARY............................................................................................................1
TASK 1............................................................................................................................................1
Relationship between human resource strategy and business strategy .....................................1
Evaluation and comparison of the theoretical basis and models of SHRM...............................3
Effective practices of HR for management of performance and rewards...................................6
TASK 2 ...........................................................................................................................................6
Analysis of nature and theoretical perspective of employees ....................................................6
Roles of actors towards development of employees relations....................................................7
Mechanism of employees participation and voice .....................................................................9
REFERENCES..............................................................................................................................10
Illustration Index
Illustration 1: Models of Strategic HRM.........................................................................................5

EXECUTIVE SUMMARY
In competitive business environment, HRM plays a significant role in expansion of
business operation and development business strategy. It is analysed that there is a strong
relationship between the business strategy and human resource management as they are
developed for the accomplishment of objectives of organization. In this context, analysis TESCO
is taken which is a global retail brand and considered its employees as its stakeholders. Further,
as HR consultant of TESCO, various strategies are analysed that helps them in managing and
providing motivation to workers within the organization. Unitary and pluralistic approaches are
used to maintain employee relations. Roles of different actors in managing their employees
relations are discussed.
TASK 1
Human resources is considered as critical source for every firm that helps them in
regulations of business activities. Management of workforce is a complex process through which
managers will analyse the actions of individuals at workplace. Firms regulating at international
level analyse that there is a direct impact of HR functions on the performance and position of
business in market (Budhwar and Debrah, 2013). Strategic HRM is regarded as an approach
utilize by managers for making decisions related to development of policies and practices
concerned with the relationship, performance, training, rewards and recognition of employees
within the organization. It can also be considered as a combination of human resource and
business strategy that are developed by administration focusing on the impact of workforce on
organization.
Relationship between human resource strategy and business strategy
In this context, as HR consultant of TESCO, various strategies are analysed that helps
them in managing and providing motivation to workers within the organization. It is considered
as international retail store that regulates its business operations at global level. From the
analysis, it has been recognised that TESCO consider its employees as its stakeholders and focus
on creation of various effective plans that helps in increasing performance, knowledge, skills and
competencies at workplace.
Below given are the points that describe strong relationship between the HR and business
strategy such as:
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 Gaining objectives: Every organization regulate their business operations for the
achievement of some specific goals in particular period. Strategies are formulated by
managers with an aim of achieving these targets (Patel and Cardon, 2010). It is also
considered as responsibility of managers to ensure that employees are also concerned
towards the achievement common goals and for that they will develop plans to motivate
them towards the organization. In TESCO, there are various strategies developed by
managers for accomplishment of objectives. And they have to develop various plans for
influencing employees to work with an aim of achievement of companies objective.
 Performance management: There is a strong relation of business strategy and human
resource as it aims at management of employees within the organization (Darwish, 2013).
Main objective towards development of strategies is to raise the performance of business
in market. For this, it is essential for them to manage and increase the performance of
employees so that they can work more effectively. TESCO has achieved a continuous
growth in international market as its employees work more effectively and influence
customers to increase the sales revenue. Thus, implementation of plans to increase the
performance of employees has provided great support to them towards achievement of
continuous growth and development.
 Consequences: It is an essential element that describe business mangers and HR
department works to together with aim to design consequences for employees who not
perform their job appropriately (Jackson and Seo, 2010). There are various factors that
are considered by managers in TESCO such as companies policies, training, disciplinary
steps and goods business practices for the resolutions of employees problems and
providing rewards to key performers. It is considered as essential for them develop fair
and equitable system which helps the management to provide motivation and retain them
within the organization.
For further explanation, there are various elements that are evaluated in order to describe
relationship of between the business strategy and human resource within the cited organization.
Fiedler’s contingency model comprises three elements, Viz, Leadership styles, situational
variables and the relationship between styles and situation
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Leadership style: As per the fielder , it depends upon the tow dimensions task oriented and
human resources oriented. In this, TESCO's manager concerned with human relations lay more
emphasis on the development of internal personal relationship.
Situational variables: there are several situational factors that affects the variables such as leaders
position's power and task structure of organisation along with the leader member relations.
Relations between style and situations: It is last element of the fielders' contingency model,
where he tasks about the relationship between the situation and appropriateness of leadership.
Vertical alignment: It is the main element that describe that every organization goals and
objectives will regulate their plans. Vertical alignment is concerned that the strategies that are
developed by managers will meet the objectives that are developed to accomplish the vision,
mission and values of firm. In TESCO, there many strategies formulated by the managers that
directly meet their objectives. With the appropriate alignment of the strategies they have ensured
that the resources are effectively utilized and they have achieved success. They have also
employees have provided a great supports towards development of policies through which firms
has achieved its target position in retail market.
Horizontal integration: In this, management is focused towards integration of and acquisition
of other infrastructure, inventories and firms of same industry. It is primarily concerned with the
expansion of business operations across the countries in order to raise the profitability. In this
context, for the acquisition of companies in retail market, managers of has developed various
strategies with helps of employees to acquire other companies in retail market. Human resource
department supports them and provided information about the companies that has provided them
high profit after expansion of business.
Therefore, it can be said there is strong relationship between the business and human resource
strategies that provides great supports to management for development of relationship and
achievement of targeted position.
Evaluation and comparison of the theoretical basis and models of SHRM.
In competitive business environment, Strategic human resource management is
considered as important tool for business firms to managers their employees at workplace. It is
considered as one of the most powerful and important concept to indulge in business and
management. It describes that the HR department also plays a significant in development of
strategies within the organization for the management of business operations. It provides a great
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support to firms by managing the employees, reducing the cost and providing various business
ideas that helps them to expand there business operations and achievement of strategic objectives
(Martin and Reddington, 2010). In present scenario, HR department has made several strategies
and provided a great support to TESCO towards accomplishment of their work and facilitate
decision making within the organization. In order to provide support to firm, strategic human
resource management is concerned towards increasing the organization performance through
development of effective employee relations, organization culture, innovation and expansion of
HRM practices within the firm (Bratton and Gold, 2017). In this, analysis of three models is
done that can be applied by TESCO for the development strategies related to workers within the
organization.
1. Corporate strategy: From the analysis, it has been considered that this is significant
model of SHRM that determined that the strategies are developed by the top management
at international level for the expansion of business and recruitment of qualified
employees that provide them effective and innovative ideas to expand the business. It is
also considered that this strategy is directly with the international and external
environment forces (Festing, 2012). For example: In last year, TESCO has brought
about a lot of strategic changes and also grown to become has grown to become UK's
number one retailer. Company has developed a two tiers strategies for expansion. First
part is expansion into non food sector within its home market in the UK.
 Internal forces: These are critical factors that directly affects the strategies of managing
human resource within the cited firm. For the continuous regulation of business, it is
essential for the business firms to develop a position culture within the organization
(Sparrow, 2013). With reference to this, managers of TESCO has analysed that there is a
positive work culture among the employees at workplace. The another internal factor the
affect the strategy is policies that are framed by managers and affects the employees at
workplace. It is considered polices will provide support to TESCO to achieve
participation of employees at workplace. Structure in the organization also affect the
strategies of Top management as it ensures that there is appropriate flow of authority at
workplace (Akingbola, 2013). For example: TESCO needs to analyse the environment
within their outlets along with the analysis of its workforce in order to formulate effective
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strategies. Human resource's department of organisation are more focused towards
improving the performance of their employees.
 External forces: Those factors which affects the external environment of business and its
market position. Firms in international market have great focus towards the externals
factors to analyse the impact they provide to business and strategies that are enforced by
to manage its business operations (Rompho and Rompho, 2017). These external forces
are competition, regulation, technology, market trends, economic environment and
government legislations. In the context, the most crucial factor that affect the strategy of
TESCO is rising competition in retail market. It is analysed that there are many
competitors in market that aims at achievement of effective workforce. In order to retain
the qualified employees, managers of TESCO have provided various benefits, increment
and recognition at workplace.
 Business strategy : It is the next stage of strategic human resource management after the
formulation the corporate strategy is a business strategy. Moreover, these business
strategy has been formulated for each of the business unit as per its objectives. For
example: TESCO has developed as business strategy to provide non food products at low
cost and increasing the relationship with the other small scale retailers for selling its
products and services (Buller and McEvoy, 2016).
 Human resources' strategy: The main functions of strategic human resource management
is to develop a well conceived human resource strategy to incorporate the planning and
job decision approaches.
Performance management: This model of SHRM describe that the performance of workers in
the organization plays a significant role in the formulation of strategies. For the effective
management of performance system there is a requirement of employment results of employees
that can be achieved within the organization (Saridakis, Lai and Cooper, 2017). In TESCO, for
the increasing the performance of employees the managers will provide training to employees at
workplace. It is also considered that the compensation provided by firms also affect the
performance of employee (Kehoe and Wright, 2013). Therefore, TESCO will also equal and
appropriate compensation to increase their performance. This will provide a great support to the
firm to develop a positive relationship with employees and improving their quality of
performance to accomplish the job.
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Employee relations:It is also considered as essential model that describes that relations between
the workers and employers also provided great impact on the business operations and
development of strategy (Rodriguez and et.al., 2017). In order to develop positive employee
relations, it is essential for firm to develop effective policies and practices that are considered as
beneficial for the organization. In this analysis, it has been considered that, managers have
developed a positive relation with employees by providing equal opportunities, better
consideration and resolving the problems ta workplace (Hartman and Elahee, 2013).
Further, it can be said application of these models will help the managers to take effective
decisions to expand business operations across the countries.
Effective practices of HR for management of performance and rewards
There various practices that are accomplished by the TESCO to manage and retain the
employees at workplace. Further, this has considered that managers are more concentrated
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Source 1: Models Of strategic HRM
(Source : 13 Models of Strategic Human Resource Management, 2017)

towards achievement of profits (Arunprasad, 2017). For the achievement of objective it is
essential for them to analyse the importance of employees by increasing there performance
through providing training, resolving there problems, resolutions of effective practices that
develops positive work culture.
For enhancing there business operation, they have make changes in there system of providing
motivation to employees. It is also essential for them to provide rewards to key performers and
other benefits to retain them at workplace (Schwaninger and Scheef, 2016).
TASK 2
Analysis of nature and theoretical perspective of employees
Employment relations are defined as the organisation efforts to manage effective
relations between its employees and managers. The company which treat the employees as their
an important resource will treat its them fairly so that they can perform better and help the
organisation to increase their productivity (Collins, 2017). Unitary and pluralistic approaches are
used to maintain employee relations. Roles of different actors in managing their employees
relations are discussed. Further, employees voice against organisation will help in increasing
their bonds and getting their rights. This has forced organisation to provide proper rights to their
employees so that they can enjoy their life.
Maintaining respectable industrial relationship is of utmost importance for almost all sort
of organisations where it is an equal responsibility of both the employees and employers to
consider sustaining the same. However, conflicts are often unpredictable and could exist due to
any uncertain reason among both set of workers (Ng, 2017). Whereas, the employers are mainly
at the front-most extent of such concerning matters and should consider applying the theory of
industrial relations. Thus, with a similar context to it, there exists three distinct theories to be
applied for maintaining a better relationship among the workers in entities like Tesco. It firstly
involves unitary approach with unitary views and in whose accordance, an organisation is always
regarded as a single unit of large team for achieving an ultimate success (Greer and Doellgast
2017). On applying this theory, Tesco should work as a unified team striving for accomplishing
common goals and objectives with no disputed concerns among the employees. This leads to the
creation of a more loyal structure in which there exists no such barrier among the departments to
discuss upon any concerning issues and reach to the fulfilment of a single goal based agenda.
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Under such unitary perspectives, companies like Tesco is bound to avoid any such situation that
could lead to any gap in communication among the employees and employers. Unison is a prime
agenda for the workers employed in such contextual situation. Contrary to this, there exists yet
another theoretical perspective called pluralistic in which, the entities like Tesco are familiar to
the state of conflicts (Liao and et.al.,, 2012). They rely upon a firm belief in whose accordance,
conflict is an integral part of each and every society and so it can take place in an enterprise as
well. Considering the same, companies relying on such type of thoughts are required to
undertake various official arrangements to resolve any state of dispute. However, before
undertaking such necessary steps, it is also important for the firms to firstly recognise an active
presence of pluralism at their workplace. Herein, such type of condition arises when more than
single ruling principles are permitted to sustain. This involves the management bodies,
employees and trade union parties with some leading instrumental measures such as negotiation
and collective bargaining procedures to resolve any state of conflict among the parties. Although,
this type of perspective is mainly applicable to large set of organisations such as huge retail
stores like Tesco and hotel chains, etc.
Roles of actors towards development of employees relations.
Different actors which plays an important role in maintaining employee relations are
defined as follows:
Employer:
Employers and team leaders plays significant role in creating effective atmosphere in
Tesco. Their behaviour, leadership and leading policies affects performance of team members.
Positive behaviour will encourage them to focus more on their targets and achieve their goals on
time (Ng, 2017). Further, their leadership and ways of treating them will affect mentality of staff
members as proper guidance will encourage them to make their solutions more innovatively.
Rewards and praising policy increases confidence and trust of them which creates positive
impact on them. Moreover, human resource management also plays an essential role in
strengthening bonds of their workers. HR manager of Tesco focuses on staffing, managing and
organising effective policies for workers as well as organisation. They hire talented and skilled
candidates which help in increasing their productivity. HR manager provides trainings and
coaching to new candidates as well older staff members which helps them to understand new
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working culture of the firm. Furthermore, they have made various policies regarding employees
wages and benefits plans to increase their trust and confidence towards the company. They
conduct various events and activities to interact the employees with each other so that they can
mingle with each other and increase their productivity. HR manager of Tesco have made
effective strategies to fulfil all the needs and demands of their staff members.
Employees:
Employees are the main component which are responsible for creating effective relations
between them. Their behaviour, culture, beliefs, perspectives plays an important role in making
effective environment in Tesco. Talents and skills of workers help them to solve their tasks
innovatively and also helps other to sort out their problems (Kehoe and Wright, 2010). Further,
their positive attitude and behaviour with others will help organisation to maintain effective
atmosphere. It also helps in reducing conflicts and disputes among them and increase their
productivity. Moreover, skilled workers capture new things easily and understands difficult tasks
very rapidly which helps them to solve it accurately. These increases their performance and help
in achieving desired results which will ultimately assists Tesco to raise their sales and revenue.
Trade union
Union trade community protects rights of workers in effective manner. It helps in giving
rights to employees which are pressurized and not gaining appropriate wages (Dupuis, 2017).
Trade union helps in giving basic wages in Tesco (Dupuis, 2017). It prevents racial
discrimination and partiality like issue. They also assist the employees in raising their voice
against illegal actions of the company. These communities gather together and raise their voice
against organisation wrong policies.
Government:
Government also plays an important role in maintaining effective relationships in the
organisation. They make different laws like equal opportunities, basic wages act, Anti-
discrimination act etc. to provide the best facilities to all the employees. Equal opportunity law
provides equal opportunity to all candidates irrespective of their disability, caste, religion etc. In
anti-discrimination act, workers are given full opportunities whether they are of different caste,
colour, gender, religion etc. Basic wages act focuses on minimum amount which every employee
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has to be given by the organisation for their per hour work. This will help them to meet their
basic requirements.
Mechanism of employees participation and voice
Employees participation in making decision is very necessary for Tesco to increase their
productivity(Park, Bae and Hong, 2017). Their involvement in making decisions will help them
in increasing their productivity. It is recommended that employees participation can be increased
by welcoming their views and opinions . Their views must be respected and listened so that they
feel motivated. This will increase their trust on the company and they feel proud. It is
recommended that employees' involvement in making decisions will help Tesco to make
effective decisions (dBuller and McEvoy, 2016). This is because staff members know the
problems which are faced by their customers very well as they handle them daily. So, they can
provide effective solutions which assists the organisation to make strategies according to them.
Further, workers voice against wrong policy of organisation can bind them altogether and
strengthen their relationship. They make their efforts for gaining desired results. These helps
organisation in interacting people with each other which will ultimately assist them in
completing their tasks effectively. Further, employees relations in company plays significant role
in making the company more popular as their effective performance will help in increasing firms
reputation in the market. This will help them to increase their sale and performance of the
company. It can be recommended that company will manage employees relation by making
effective policies. Moreover, it can strengthen their relationship by providing them resources on
time and involving more in making important decisions of the company. This will assist
company to satisfy their customers and increase their reputation.
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