Importance Of Strategic Human Resource In Organization Commerce Essay

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Tesco is the largest food retailer in the UK that offers a variety of services for non-food products to include insurance, entertainment, appliances and more. It employs over 440,000 people worldwide with more than 280,000 in the UK. It has more than 2,000 stores in the UK and a growing number of stores abroad in countries like Thailand, China, Hungary and the United States. Tesco is the largest private sector employer in the UK and offers a competitive package of pay and benefits for all jobs, either as assistants or managers in stores and warehouses. more specialized functions such as finance and human resources are based at its headquarters based in Hertfordshire. As a newly appointed human resource manager, considering their centralized operation system I have learnt why strategic human resource management is so important in Tesco. SHRM brought Tesco the following benefits what help it to stand out of the crowd-

1. Identify and analyze the opportunities and external threats that may be crucial to the success of the company. 

2. Provides a clear business strategy and vision for the future. 

3. To supply competitive intelligence that may be useful in the strategic planning process. 

4. To recruit, retain and motivate people. 

5. To develop and retain highly competent persons. 

6. To ensure that people development issues are addressed systematically. 

7. Provide information on the company's internal strengths and weaknesses. 

8. To meet customer expectations effectively. 

9. To ensure high productivity. 

10. To ensure full surplus business competency.

Asses the purpose of strategic human resource management activities

Fundamental activities of strategic human resource management in Tesco conducted by both managers and human resource professionals like me. Multiple reasons and purposes are reflected on these activities, few are:  


• Organization structure - development of an organization that deals with all the necessary steps groups them in a way that promotes integration and cooperation 

• Working paper design and specification - the determination of the contents of his "jobs and rights responsibilities and relationships that exist between job holders and others in the organization 

• Development stimulating organizational, planning and implementation of programs to improve the efficiency with which the organization operates and adapts to change. 

The employment relationship 

• Improve the quality of the employment relationship 

• Create a climate of confidence and self-propelled 

• Developing a more positive psychological contract 

• Achieving a highly committed organization 


• Human resource planning, applying new strategies, assessing future needs in terms of numbers and all levels of skill and competence. Develop and implement plans to meet requirements through recruitment, training, development etc. 

• The recruitment and selection, obtaining the number and type of people that the organization needs .

Performance Management 

Get better performance of the organization, teams and individuals by measuring and managing performance with in the agreed framework of objectives and competency requirements, assessment and improve performance 

Human Resource Development 

• organizational and individual learning 

• Skill improvement through a systematic approach to training 

Reward management 

• Assessment work-evaluation of the relative size of jobs as the basis for determining the internal relativities 

• Payment - the development and management of salary structures and systems 

• non-financial rewards provide employees with non-financial rewards such as recognition, increased responsibility and the opportunity to achieve and grow. 

• Employee benefits that provide benefits in addition to paying to attend to personal safety and personal needs 

Employee Relations 

• Employee relations, management and maintenance of formal and informal relationships with trade unions and their members 

• Employee involvement and participation - the exchange of information with employees and consulting them on matters of mutual interest. 

• Communication of creation and transmission of information relevant to employees. 

Health, safety and employee services 

• Health and safety - to develop and manage the health and safety program. 

• The services of the employees providing welfare services and help with personal problems.

1.3: Evaluate the contribution of strategic human resource management to the achievement of an organisation's objectives

Tesco has introduced a model which offers training and development to all employees. Their diverse strategic HRM system has developed their logo "Every Little Helps" to prove their commitment to employees as well as to the customers. For this purpose strategic human resource play significant roles to attain organisational objectives. Tesco's profits have soared 20% in the last year, taking them to a record 2 billion GBP and setting new milestone for UK retail business. (Poulter. S. 2011). The human resource strategy at Tesco revolves around work simplification, challenging unwritten rules, rolling out core skills to all head office employees and performance management linked to achieving steering wheel targets.

Their slogan "Every Little Helps" are not just simple three words to advertise it it their promise to the customers who shop, to the staffs who make the store running. In a glimpse all these are the broader contribution of strategic human resource management's active presence in the day to day business.

Task 2:

Introduction: - 

Nestle was founded in 1866 by Henri Nestle and is today the largest world's food and beverage company. Sales at the end of 2005 were CHF 91 million euros, with net profit of CHF 8 million. Nestle employs around 250,000 people in over 70 countries and has factories or operations in almost every country in the world. The history of Nestle in Switzerland started in 1867 when Henri Nestle, a pharmacist, launched its product Farine Lactée Nestle, a nutritious porridge for children. Henri used his surname, which means "little nest", in the company name and logo. The nest, which symbolizes security, family and nutrition, continues to play a central role in the profile of Nestle. Since it began over 130 years, Nestle's success with product innovations and acquisitions has become the largest food company in the world. As the years have passed, the Nestle family has grown to include chocolates, soups, coffee, cereals, frozen products, yoghurt, mineral water and other foodstuffs. From the 70's, Nestle has continued to expand its product portfolio to include pet food, pharmaceuticals and cosmetics as well. Today, Nestle markets a wide range of products, all with one thing in common: high quality for that Nestle has become famous around the world will guide the strategy of the company for several fundamental principles. Nestle's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. long-term potential is never sacrificed for short-term performance. The company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their life. The taste of Nestle in each of the countries that sell Nestle products. Nestle is based on the principle of decentralization, which means that each country is responsible for the efficient management of your business - including hiring staff 


Approaches to human resource planning in the work of organizations today are much different than it was decades ago. Much of the discussion to reflect this change in focus on the role of human resource planning in the basic strategies of small and large organizations. There was considerable discussion among human resource planners in what aspects of human resources planning and management should be among the priority considerations in view of the changes taking place in almost every aspect of modern life . Changing social, technical, political, economic, spiritual and business conditions of the environment have led to these debates raging in the planning and policy discussions in organizations. The complexity in managing large organizations work is greatly increased due to several important considerations of supply and demand for human resources professionals and skilled personnel in different industries. Smaller organizations have been challenged to prepare for future expansion of human resources. While the structure and size of organizations do not determine choices about human resources, research has shown that it can have a strong influence on the way human resources are managed, regulated, and planned (Newell and Scarborough, 2002, p. 26). Human Resource Planning (HRP) for large organizations is very different from the smaller organizations in different contexts and aspects. These large differences can be found in the way these organizations cover the areas of Human Resources Management (HRM), such as hiring, promotion, performance appraisal, compensation, training and development, labour relations, work designs, and career development. What is in the context of Nestle then? Well a small Swiss food consumer company had seen the potentials through the visionary eyes of their HR professionals that alternative growth will be the real way of expanding business rather than the conventional way. So HR plan has been adopted in a way so that Nestle can acquire small successful food business companies in their grasp and expand on its own brand name..


Resource Planning is the planning of Human Resources. It is also called manpower planning. It is only after Human Resource Planning that the Human Resource department can initiate the recruitment and selection process. Therefore Human Resource Planning is a sub-system of organisational planning. My assessment as a HR manager these features should be focused on whilst making a HR plan.

Objectives of Human Resource Planning 

1. Optimum utilization of human resources currently employed in the organization. 

2. To reduce the imbalance in the distribution and allocation of manpower in the organization of various activities. 

3. To ensure that the organization is well equipped with the necessary quantity and quality of workmanship steadily. 

4. To anticipate the impact of technology on employment and resources. 

5. To control the cost of human resources employees, use and maintenance within the organization. 

6. To provide a basis for development programs in management. 

7. To ensure the optimal contribution and personal satisfaction with a reasonable cost. 

8. To recruit and retain the necessary human resources quality and quantity. 

Need Human Resource Planning 

1. The shortage of skills: - In these days we find a shortage of skills in people. Therefore, it is necessary to plan for in advance qualified people so that when you really need. The lack of availability of qualified people when and where it needs is an important factor that drives the sound Human Resource Planning. 

2. Frequent turnover of Job: - Human Resource Planning is essential because of frequent staff turnover, which is inevitable for all media. The Labour turnover arises from discharges, marriages, promotions, etc. that makes the transfer of a constant ebb and flow of the labor force in the organization. 

3. The changing needs of technology: - Employees Due to changes in technology and new production techniques need to be trained existing blood or injected into a new organization. 

4. Identify areas of surplus or shortage of personnel: - Manpower planning is necessary to identify areas with excess personnel or areas where there is a shortage of staff. If there is a surplus, can be re-deployed, or if there is a shortage of new employees can be acquired. 

5. Changes in organization design and structure: - Due to changes in organizational structure and design that we need to plan human resources from the beginning. 


The human resource planning is a systematic analysis of human resources should ensure the availability of the correct number of employees with the necessary skills at the right time. Increasing the competitive nature of business that makes the labor market flexibility imperative raised the importance of human resources planning. 

Energy Demand  Forecast

The steps to start planning for human resources with the forecast of the number and type of employees needed in the future. This requires a good understanding of internal and external environment of the company. The most important aspects of the internal environment that affect human resources planning organization plans include short and long term strategies, and human resource situation of the organization. The main aspects of a company's external environment affects human resource planning include the general state of the economy, technological developments, the level of competition, labor market trends and regulations, demographic trends and the like. For example, Nestle that plans to launch a new product that require additional marketing staff, and an organization that seeks to open a new branch would require more office staff. An organization seeking the closure of unprofitable branches may appear to lay off workers. Similarly, technological advances may lead to the organization to change to reliance on a smaller number of workers with technical skills rather than relying on a large pool of labour. Good anticipation of the needs of human resources contributes significantly to the competitiveness of the company. Organizations forecast more workers than necessary to maintain a personnel surplus or underused, and organizations that fail to grasp the full scope of human resources are overwhelmed and unable to seize opportunities. 

The two main methods of forecasting are the methods of trial as the Delphi technique, or management estimates, and various mathematical models, such as time series, and personal productivity ratios, regression analysis, and the like. 

Inventory Supply Analysis and Forecasting 

The second step in human resource planning is the analysis of tracking inventory or current employees of the organization to determine the extent to which it complies with the prognosis. The inventory analysis involves human resources 

• The inventory of skills, and keep track of the number of employees, and the age, location, skills and abilities of each employee to determine the specific role of each employee could fill in the short term and long term 

• waivers of foresight and understanding of recruitment and its impact on inventory levels of competition 

Forecast • leaves, transfers, layoffs, sabbaticals, prolonged illness, and deaths of employees and its impact on inventory levels 


The third step in the planning of human resources audit, which includes inventory reconciliation with the forecast through a systematic analysis of forecasting demand and supply, and identifying areas where existing shortages and surpluses . 

The audit phase also includes, among other things: 

• Identify the reasons for the waiver, the cost of disclaimers such as the costs of hiring and training new employees, the cost of lost experience, skills and knowledge of employees leaving, and the like, and develop retention plans retain key talent, if necessary 

• Review the effectiveness of recruitment activities, training and development of initiatives, exercises career planning, succession planning and other interventions 


The next step in human resource planning is to develop action plans to close the gap between the forecast and supply. 

The alternatives include: 

• A strategy to recruit new employees 

• reduction firing strategy to shed excess labour 

• Training and Development plans to right size the workforce 

• Career and Succession Planning to identify key personnel 

• Changes in work rules, such as schedules, overtime and politics as the 

The basic considerations in carrying out the planning process is the implementation and impact of labour legislation. The laws governing overtime and downsizing, for example, can have a significant impact on the strategy adopted. The other consideration is the availability of resources such as financial, physical and technical resources for the implementation of the plans.  Once approved, these plans are part of the strategic objectives of the company. Strategic human resource planning involves such plans align human resources with the strategic objectives of the organization. 


The last step in human resource planning is to monitor and control the implementation of human resource plan. This means ensuring the appropriate application in accordance with the plan and make necessary corrections of course.


Human resource planning permit not only the required number of employees, but also to determine the plan of action for all personnel management functions. The main benefits of human resource planning in Nestle can be categorized as follows. 

a) Human resource planning is necessary for every organization. Cooperation friend of the organization with regard to the expansion, diversification, technological change must be supported by the availability of human resources. Suggested modifications to the plan of labor when it is expected that is not available. 

b) It compensates for the uncertainty and change. At some point the organization may have the machines and money, but not men and therefore can not start production. Compensates for such uncertainty and possible changes and allows the company to qualify for the men at the right time and right place. 

c) It provides for progress and development of employees through training, development, etc. 

d) helps to meet the individual needs of employees to transfer promotions, higher salaries, better benefits, etc. 

e) helps anticipate the cost of wages, benefits and all the cost of human resources to facilitate the formulation of the budget in a society. 

f) helps anticipate the need for redundancy and plans for verifying human resources and change management techniques. 

g) assisting in the planning of physical facilities, working conditions, the volume of additional benefits such as dining, schools, hospitals, transportation, child care, the company's fourth store, etc. 

h) makes the development of the various sources of human resources to meet the needs of the organization. 

i) Support for action to improve human resource contributions in the form of increased productivity, sales, billing, etc. 

j) It is easier to control all the functions, operations, the contribution and the cost of human resources. 


human resources (HR) planning is perhaps the most important business practice in an organization or business. The processes and initiatives relating to recruitment, selection and recruitment of new candidates, managing employees, analyze the current and future needs of manpower and training of the workforce and new entrants are integral to the process human resource planning. Human resources strategic planning and focused assistance to organizations to manage the long-term human resources needs, the direction of organizational goals and achieve defined business objectives. 

Objectives of the party organization 

Once the lists of the Human Resources department of the broader strategy of human resource development and recruitment and selection policies in collaboration with senior management, human resources staff began planning to identify needs and allocate human resources budgetary resources. People and employee-focused initiatives must be launched to coincide with the overall objectives, long-term strategic business. The Human Resources Department is responsible for executing all tasks and responsibilities for the implementation and success of these initiatives and programs. 

Competitive forces 

The war for talent and human resources in a globalized and interconnected world has become even more intense. HR departments must have knowledge of the rapidly changing realities and make flexible plans to meet the demand of the requirements of the future workforce and meet the current needs of existing employees. Evolution of business practices and the rapid turnover of technologies requires regular training of existing employees to keep them sharp and competitive. 

Improving skills 

The key to sustained success and long-term profitability of an organization is the consistent performance of their employees. Training and development of initiatives and programs based on manpower and personnel are an integral part of the continuum of skills development. HR also plays an important role in ensuring employee buy-in and acceptance of improved labor so important metrics. This process involves the development of better teamwork and work ethic, learning new skills, technologies, restoration and acquisition of new certifications and credentials, if necessary. 

Performance Reviews 

Performance evaluations are an integral part of any process of human resource planning. Assessments of performance reflects the commitment of employers to recognize the role and importance of employees in the success of an organization. A rigorous performance review, accurate and regular workers and staff members, the detailed assessment of results and subsequent surveys rewards and benefits keeps employees excited and motivated towards achieving organizational goals. These comments also are initiated and planned by the human resources department and implemented by managers and supervisors. 

Mentoring and informal management 

Employees seeking approval and recognition of business owners, managers and senior managers and HR staff to keep you excited and motivated to carry out their duties and responsibilities. the human resource planning is also about managing employees and their aspirations, needs and requirements at all levels. human resources personnel and managers should mentor new hires started, encourage and empathize with veteran employees and generally act as a vital and informal advice to all workers and staff.


Each country has its own regulations, laws and regulatory bodies or agencies that regulate the manufacture, sale, marketing and distribution of products in the country. Laws and regulations are made with regard to humans and other institutions as a guide to bring order and sanity in society. Because of this, it is likely that your application will have an impact on human resource plans of the organizations. An attempt was made to discuss the specific regulations and laws, with particular reference to the aviation and airline, environmental regulations, regulations of the stock market, banking regulations, research (and development) the rules of cooperation, statutory stock options, employment law, intellectual property and social security standards in the industry for the industry and the impact on business plans where necessary. In the snuff industry, for example, the Food and Drug Administration (FDA), an agency of the U.S. government published an article about snuff in the Federal Register to regulate the sale and distribution of cigarettes and smokeless snuff children and adolescents based on the health consequences of snuff consumption. The rule specifies that any person under 18 years of age should not be sold cigarettes and smokeless snuff. The rule also requires manufacturers, distributors and retailers to meet certain conditions of the sale, distribution and promotion of snuff products. Therefore, vending machines and self-service were banned, billboards within 1,000 feet of schools and playgrounds were also banned. This could have adversely affected the companies engaged in these businesses. 

On December 7, Nestlé Kit Kat announced that Fair Trade is a breakthrough for cocoa farmers in Ivory Coast as well as for lovers of Kit Kat in the UK and Ireland. The measure will start in mid January 2010, will benefit thousands of farmers in Ivory Coast and a Fair Trade price (or market price if higher) will receive additional payments Faitrade premium to invest in the community long-term business development. The long-term commitment of Nestlé to buy Fair Trade cocoa Kavokiva certificate is a unique opportunity for the cooperative and its members. After selling their cocoa at a fair price directly to Nestlé is a source of motivation for all members and strengthens the cohesion of the cooperative. Enable the cooperative to continue helping its members to produce good quality cocoa and increase income they produce. The Fairtrade premium is used to improve the lives of our members. We are committed to using a significant portion of the premium to ensure that all children of our members can attend school and to improve health center services of the cooperative 

The issue price is fair trade is good, but the BBC has revealed a horrible truth lies in these measures is apparently dynamic that child labour is being used to collect beans from the source. The process is completely manual and children are using traditional knives, cutting massechets bean tree that can produce permanent physical loss or death. Nestlé is neat and clean on their side as their contribution is, literally, honest, but not the only ethical in a bird's eye view. 

Task 3


"UK Packaging Supplies Limited " was incorporated on October 11, 1984 and has a history of gradual trade, organic and progressive history. It has a current annual turnover of over £ 15 million, allowing the company to its purchasing power to expand packaging excellent cost effective solutions for all types of industries. " UK Packaging Supplies Limited" is one of the largest independently owned packaging materials dealers in the United Kingdom, has an active customer base of 2500, which covers mainly but not exclusively in London and southeast England. The customer base is varied from small traders to Blue Chip organizations. The brand is trusted, recognizable and highly regarded. The company's success is largely as a result of the culture of customer service that runs across the enterprise. UKPSL's goal is to provide quality products at a reasonable price, on a timely, efficient manner. The directors are actively involved in day to day business and employing a proactive and hands on approach. The objectives for the future are to expand the product base, grow and develop the business and its people, maintaining the high standards that have helped build the company into what it is today. As a human resource consultant I aim to provide a list of recommendation and a detail report to the head of HR department. The following sections arel my analysis, assessments and finding facts to the goal of creating a report.


Each organization consists of more than one person will need some type of organizational structure. A flow chart shows how the chain of command works within the organization. The company is proprietary that means CEO looks after all the overall interests. The CEO then appoint to managers and staffs to run the day to day operation. In the structure of the business set out below:

The CEO has primary responsibility for the operation of the company, including establishing business goals and keep an eye on all departments.

Distribution Manager is responsible for controlling the distribution department and movement of goods within and outside the warehouse, driver supervision and monitoring of freight to and from the company.

The Production Manager is responsible for maintaining a continuous supply of work flowing to all production staff and also for the labor organization to meet customer orders.

The Sales Manager is responsible for sales department and making contact with customers and obtaining orders from those contacts.

The company's accounting section controls all financial transactions of the company and is responsible for producing management accounts and financial reports.


Other organizations have different structures. For example, most organizations have a marketing department responsible for market research and marketing planning. A customer service department will address customer needs. A human resources department is responsible for recruiting and selecting new employees, employee motivation and a series of activities focusing on others. There will be a series of cross-functional areas such as administration and the departments of information technology to service the company's functional areas. These services are provided backup support and training. Organizations are structured in different ways:

1. By function as described above

2. By regional area - a geographical structure.

3. By product, such as chips marketing manager, marketing manager, beverages, etc.

4. Working in teams, etc.

In his report of the organizations often done in the future. An employee may be liable for a supervisor, who is accountable to a junior administrator who is then responsible for a senior manager - communication and instructions can be passed down the line.


Analysing the organizational culture

In view of UKPSL social and psychological climate of an organization is its culture. Culture represents the values, beliefs, assumptions and symbols that define how the organization conducts its business. The organizational culture tells employees how to do things, what is important and what kind of behaviour is rewarded. It is important for management to foster a culture that promotes the achievement of the objectives of the organization's strategic business. The link between organizational culture and human resource management is important. Human Resource Management activities contribute to the culture of an organization and give it a competitive advantage through the promotion and reinforcement of specific behaviours necessary to achieve the strategic objectives of the organization.


There is no sense in implementing costly policies of Human Resources Management if you measure its effectiveness is not done. Feedback should be provided to managers to see how the program is working and where improvements can be made. There are several methods to measure the effectiveness of policies for human resource management. The most popular and perfect for an independently owned business UKPSL are:

• Rates of absenteeism.

• Staff turnover or volume of work.

• Productivity.

• Customer satisfaction.

• premature abandonment.


Absenteeism means the absence of workplace is the result of the disease. If an employee had to miss 10 days out of, say, 220 days a year, the absenteeism rate would be 4.5% High levels of absenteeism in the workplace is sometimes called "sick building syndrome sick 'and a high level of absenteeism among a strong indicator of dissatisfaction and demotivation in workplace. 40,000,000 days are lost each year in the workplace due to absenteeism in the UK. 93% of employees say that colds and flu are the reason for being out of work.

For instance A company has 22,000 employees of whom 1100 leave in a year. Rate of staff turnover is: 1100/22, 000 times x 100 / 1 = 5%

A refinement of this measure would be to study the rotation of personnel between the main

workers, ie, critical to the success of the company. The same formula as used above, but now only measure the volume of business in a specific group. The advantage of this method is that it focuses on key staff members, when the turnover in the review of the entire organization could be a futile exercise.

Productivity a measure of production efficiency:

Productivity is a measure of production compared to standard input. For example, a shoe manufacturer may have a productivity of 50 pairs of shoes per worker per week. Other industries using annual figures. The automotive industry output measures cars per worker per year. If the policies of human resource management are working, productivity should improve, assuming that capital investment is on par with the competition, productivity should be as good or better than their competitors.

Customer satisfaction:

A measure of customer satisfaction to be done, this should be monitored at regular intervals. The simplest would be to quantify and qualify the complaints. UKPSL should conduct in-depth studies on the perception of customer quality of goods and services provided. The results of such research can make unit training plans within the company.

Early leavers:

If there is a proportionately high number of staff leaving after a short period of time with the company, the company should review the effectiveness of their induction and training programs.


My general advice on teams of UKPSL are not complex as it follows the basic HR structure instead of multiple diversified one like the large blue chip companies. UKPSL has a small management most of their end staffs are contracted, subcontracted and outsourced. My recommendations are for the management team only and the result of the effective application of the suggestions will benefit the whole employee structure I hope.

• Designate a senior manager to be in charge of HRM.

• Provide training to HRM staff.

• Develop on-the-job, skill-based training.

• Streamline the planning, recruitment and hiring process.

• Strengthen supervision.

• Track employee data such as attrition, staff turnover, absenteeism.

• Address inequities in staff workload, salaries, allowances

• Extend benefits program.