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The assignment has given to identify the Strategic Human resource management in a company and how deep it will contribute to the organization. Here we have taken the largest retail seller in UK the Tesco. Tesco is one of the number one business firms in the United Kingdom these days. And the secret behind the success is the people working for Tesco. As we discussed in below the human resource factor of the Tesco is so strong. And they have used the best strategies to retain the workforce of Tesco. So we need to carefully analyse the human resource strategies they have applied and find out the issues in those strategies.
In the assignment firstly we are going to identify how important the SHRM to Tesco. Here we can find out the importance of SHRM to Tesco in nutshell. And the theories used in Tesco SHRM. And also we need to know if the organization's success depends on the SHRM.
We also focus on to develop a human resource management plan to develop the business structure. And also we identify the impact on current SHMRM plan in the organization.
We are finally tried to suggest the best plan that will meet the organizational objectives in the area of Strategic human resource management.
Tesco PLC in Brief
Tesco is the biggest supermarket owner in United Kingdom. Tesco has dominated almost all the British cities by their supermarket. The English has spent their money to Tesco in bullions. They have originally made foods and drinks but these days they have switched in to different business areas such as telecom, clothing, financial services and many more.
Tesco is an international brand now. They have expanded in to almost all the parts in the world. The secret behind the success of this organization is the excellent management and the operation excellence as well. Tesco was started in U.S as a small supermarket in 1930s but now they have the largest volume of retail goods in UK.
Tesco has a joint venture with Royal bank in Scotland is the stat of the financial service. The path of the success Tesco has achieved many milestones they have acquired many stores and shops to broaden their pears to grab the UK's full authority in retail business. The customers like to take all their need in under one roof. So like to go to Tesco just because they have all the goods in an affordable price.
Importance of Strategic Human Resource Management in Tesco
Any organizations in the world need to manage their human resource effectively and efficiently. Whether the organization is profit oriented or not for profit oriented the human factor is important. Organization has to manage the employees skills to get the best out from them. The most vital asset is the humans in any organization. The environment of the workers need to manage to get lead the organization in to success.
According to the vision of the organization the leader has to take the responsibility of Worker's motivation, enhancement, and development. Typically the human resource factor has to manage for getting the objective done.
We can identify few responsibilities that the human resource management has to look after,
Involvement of the grievance management - make necessary disciplinary action for those activities. The important thing in an organization is to manage the people coming from various disciplinarians. So the strategic human resource management is needed to heal such matters as soon as it arises.
Develop and communicate the industrial policies - industrial policies and procedures are always needed to be inline. So the SHRM can develop the new policies and reproduce the policies currently have. The human resource development sector has to communicate the policies and legal importance of the procedures among the employees. So the employees know the objective and the system of the Tesco so they are not misleading.
Train the Workforce to sustain the competitiveness of the industry - the strategic human resource management need to provide continuous training to the workforce to enable the skills they have and the organization get the benefit to sustain the competitiveness all the time. The industry need well trained employees to make the organization success. The Tesco's workforce is mainly dealing with the people who have many chances to go away from Tesco. So they need to maintain the communication and service quality. So the continuous training is the best way to make them strong.
Work closely with the Trade unions - trade unions are the most powerful parties after the top management. So working with them make the organization has a control on them. Human resource section is the most valuable section on dealing with them. They have the power of control the employees in the Tesco. So managing them can be vital to manage the workforce itself.
Managing the Organizational culture - organizational culture is important for the workers to work peacefully in the mind. Especially the organization like Tesco needs to have a calm organizational culture that influences them to work and give their best. Tesco has a power different culture on their workforce. So the latter parts of the organization need to be motivated and the top management need to assess them in a good manner. The stores or the supermarkets need to have a rich culture where every people come there and they need to have a pleasant look and good understanding.
Purpose of Strategic Human Resource Management
Tesco has more than 240,000 members working with them. So the capacity of the human resource management is huge. The main purpose of managing the employees is to maximize the profit of the organization. They have used the HR strategy as a tool on their competitive advantage. Tesco is always investing the money to improve the human resource factor. They have huge customer base that they need to ratine them for their success.
The Tesco's leadership style is the participative leadership. So there can be chance to workers to participate the management process that they believe is a competitive advantage.
The employees contribute to make the plans in many areas in Tesco so they also have the responsibility of making the Tesco's success. The decision making process also the workers from top to bottom is joining.
The leadership is playing a crucial role in strategic human resource management. The performance from the workers is based on the leadership of the organization. Leader makes the functions of the organization and it helps the employees to make the best out of them. Leadership is one major role of companies' success and performance of the employees.
Tesco is always monitoring the outside environment in the industry. If there is any change happened in the outside they have make the necessary arrangent to make the strategies according to that. So do this kind of change the work force is well trained and the Strategic resource management is playing the main role in here.
We can identify few purposes of the strategic human resource management in Tesco as flows.
Manage overall labour cost of the organization
Providing current information of the employees to the top level strategic direction team
Develop and manage a compensation system for the organization
Change the compensation strategies according to the outside of business
Develop and implement the hiring and firing procedures
These are the main purpose of having the strategic human resource management system in Tesco.
Developing Human Resource Paln for Tesco
Before planning the human resource we need to identify the business factors that are underpinning the strategic human resources planning.
Increased competition - Tesco is the largest retail seller in UK so the company may not have that much of competition, but the area or the industry is competitive business. So anyone can enter in to the market or anyone can leave the market very easy. So this will make some kind of threat that there may be competitors coming in the near future or there can be some existing firm like WALL-MART can overcome the market at any time. So here on this regard we need to have a strategic human resource planning to defend ourselves.
Rapid technological change - the technology will change every second of the world. So this fast changing technology must be captured by the Tesco as the giant in business. As we know the Tesco has the power to change the consumer demand on some goods, but they have to look after the technological change happening out side of the world. Tesco has engaging some internet based business and also with the financial sector and the telecom sector a as well. All above areas must need high technology. They need to strengthen the workforce on this regard to garb the opportunities in the industry.
Cross-Culture issues - there are more than 240,000 employees has Tesco as we mention earlier. So they have come many different cultures and all over the world. But Tesco has to make them inline of the objectives of the organization. They all must heading to the vision and mission of the Tesco. This is a massive task to do with all of those malty disciplinary people.
Internationalization of the Market - this is a major issue that is having by any industry on now a day. There are lot of goods and services coming from all over the world. The hardest thing on this is the low price. There are so many subsidies for buyers. So it is important to have a plan on human recourses to grab these people to the organization.
So before making a plan for human resource we must understand the employee's behaviours of the organization.
Employee of the Tesco
Employees are the most popular stakeholder in the company who can identify as an internal stakeholder. Employees are very significant for an organization especially who are dealing with retail market they are making the first contact with the customer. Sometimes total sales amount will depend on the aspect of customer care. The sales quantity of Tesco in the UK with over £59 billion sales in 2008. There are 586 retail stores though out Great Britain apart from that there are many other business areas such as Tesco finance and so on.
We need to have a human resource plan and also parallel to that we need to have a monitoring section as well.
The plan must be focusing on achieving the organizational objectives. So it must be more practical and must be accessible in fare goals with. We need to have a competency based analysis to get the total information of the employees. And it will make us easier to implement our strategies.
The capacity of the employees must be enough to achieve the vision and the mission of the organization. We can have a gap analysis before making the plan. We need to identify the gap between current stage and vision/values of the organization because the strategic plan or the business plan must be in-between that gap. And the purpose of the plan is to overcome this gap.
For making the Strategic recourse plan we need to list down the HR strategies first.
Work Design/ Classification, Recruitment and selection, Learning and development, Performance management
Here in the above we have got the HR strategies to implement as well as making the plan.
And also we must need the changing factors that we need to focus on change accordance of the strategic Plan.
Career development, Rewards and recognition, Organizational development, HR information management
In above are the factors that will help us to make the strategic plan in the organization. With the combination of those factors we can make the plan easily. What we have to design or to create must fulfil that gap between the current stage and the vision/objective of the organization. Tesco need a good strategic human resource plan to implement. We can draft a plan like given below.
We must have the plan in two main stages within those two stages we can have the planning stages.
1st task - Establish a competency basement book that can be followed to get the information.
2nd task - Make sure the internal or the external recourses are ready to take the challenge. We can conduct an internal analysis to possess this.
3rd task - establish structures of the accountability and review that within the organization.
4th task - Spread and communicate the importance of the competency based assessment and the learning for mangers, and all the employees.
5th task- gets the information of required sources to implement the system. Identify the infrastructure as well.
6th task - crate the competency profile for all the workers.
7th task- implement the low-risk and high-benefit frame work among the employees.
After implementing this competency based strategic human resource plan we need to have continuous monitoring system all the days. And also we must need a better evaluating system to get the best results.
Human Resource Policy Requirements
We can understand two fundamental policies of the human resource management. The two versions are "hard" version and the "soft" version. The hard version is all about the thinking from the employees prospective. And the soft version concern about the organizations performance part. Most of the firms need to have the skills of the employees to grow up. Tesco is the world leading organization and also the UK's biggest retail business firm \so they have the best employees in all the areas. They have so many policies that tare related to the Human resource management.
UK government always telling the best policy is the well educated people in the country. But Tesco has exceeded the expectation of the government and they have introduced many training programmes and learning activities as strategic adaptable activity.
Tesco has the unique HR strategies all over the organization. The training now given to the employees are remarkable. Once they have got in to the peak they need to maintain the success so they have to have their employees very strong and so talented.
SHRM is gained more credit on last decades. Each and every employee is counted the part of the organizational strategic plan. The success is not only the income of Tesco gets but the employee's strength that will retain the loyalty of the customer. There is always significant relationship on the human resource and the performance of the organization. If the people have made the policies of adapting to the change then it will make the life easier.
Examine the Effectiveness of the HRM & Recommendations
Tesco is in the top of the retailers in UK as well as the Internet shopping business now. It was founded Seventy-nine years after, Tesco is now moving fast to becoming an international brand. Adding up to its success, Tesco's e-retailing arm is one of the most admired dot com shopping initiatives in the 1990s.
There are key features in the human resource management that will effectively cause for the organizations success.
There are explicit linkage between the HR policies and the overall organizations strategic aims. The HR policies are the most effective parts in an organization. The policies and the practice of the HR must have a linkage.
There must be some organizational linkage to the individual employees to improve their skills and make the best they can.
The responsibilities of the Human resource manger and other top managers must have the top to bottom approach.
We can have the chance to examine the effectiveness of the strategic resources plan on the Tesco. But we need to identify the following concepts and get the full analyze report on the followings.
1. Mission and goals - the organization's goals must be comprise with the strategic plan. And the plan must include the objectives and the goals of the organization. According to this mission we need to train our HRM. In Tesco they already spent more money to make the right HR according to their mission and goals.
2. Environmental analysis - we must do a PESTLE and SWOT analysis to understand the environment. And also it is important to know that because the strategies we make will be useless if there may be any major changes happened in the environment.
3. Strategic formulation
4. Strategy implementation
5. Strategy evaluation.
So when we have the recommendations we must follow the above planning tools to make the best strategic plan in any kind of stage.
This report is telling the impact on the human resource management to the organization. And also it indicates that the knowledge of the employees is the most precious thing in an organization. And also the Tesco is planning to strengthen all the employees they have and make them in line to success of the organization.
Firstly we made the understanding on what are the factors in strategic human resource management. And here we suggest the Tesco to keep their strategies on employees and enhance the training. And also owe have made the steps of making a strategic plan and Tesco must have a monitoring system which must be continuously do.
As w discussed there are common policy for UK government have on any kind of business. That is education. Once we get the experience and a good education we can success at any place. So Tesco is exceeding the government expectation by providing a better training and learning all the time for more than 240,000 people. So they have spent more money to train the people.
The most influencing thing is that now Tesco has improved their customer loyalty because of the quality people handle the retail shops they have.