Human Resource Management refers to the procedure of managing the human resource of a company. The employees are the driving force of an organisation and it is imperative that their performance is measured effectively by the Human Resource Department. The agenda of Human Resource Management is to develop competence in an organisation's employees and gain a strong competitive advantages. The assignment below is based on Tesco Plc, one of the biggest retail organisation in the United Kingdom. It covers purpose and scope of HRM in resourcing an organisation with talent and skills and effectiveness of key elements of strategic HRM in the company. It also covers analysis of internal and external factors affecting HRM decision-making including employment legislation. The report also includes the application and objectives of HRM Practices (Belloâ€Pintado, 2015).
P1. Purpose and functions of HRM applicable to workforce planning and resourcing
For an organisation as big as Tesco, it is important that its employees are managed and their performances are measured and maintained in a consistent way that contributes to organisation's wellbeing and long term sustainability.
Workforce planning is a process under which an organisation sees to it that their needs regarding the human capital is fulfilled which is necessary for the firm to perform effectively. The purpose of HRM in fulfilling this need for Tesco is mentioned below:
- It would manage the benefits that could be acquired by employees of the company. In this manner, it would motivate the workforce in working more effectively.
- It would help Tesco in developing long-term employee relations which would help the firm in retaining the skilled talent.
- It would also avoid conflicts between employees which would facilitate internal customer management.
- Human Resource Management would provide cultural integration that would enhance the scope of workforce planning in Tesco.
However, there are different models in HRM that could be adopted by Tesco to manage their human resources. These models are discussed below:
Hard Human Resource Management
Under this approach, Tesco would consider its employees as resources like equipments and machinery. The focus of the company would be on the needs of workforce in the company and manage the human resources according to this need. For instance, Tesco would terminate their employees in case they are inefficient if they follow this approach.
Soft Human Resource Management
This approach would persuade Tesco to consider its employees as the most important asset for the firm to gain a competitive advantage. Their needs are addressed and they are motivated towards achieving better outcomes. As an example, Tesco would motivate the employees by giving them certain incentives which would fulfil their need and contribute in their performance enhancement (Chowhan, 2016).
In context of Tesco, there are various skills of HRM which are described below:
- Communication Skills: It is essential for HR managers to be effectively communicate to the employees in terms of describing job roles, policies and information regarding their tasks.
- Problem Solving:HR Managers must solve problems of the workforce which would allow the employees to be more dedicated in fulfilling their job responsibilities.
- Evaluation:It is an essential skill to have in HR managers of Tesco. Performances of employees must be evaluated in a way that it gets easier to find out their shortcomings and eliminate their inefficiencies.
In Tesco there are various functions of HRM which are described below:
- Recruitment/Selection:The most important function of HRM is recruiting a pool of skilled and talent individual according to needs of the company. HRM would contribute in Tesco achieving its business objectives by recruiting prospective candidates. Selection is another important aspect which would require Tesco to select individuals out of the recruited people that are most fit for the job. HRM would allow the firm to define the aspects required by these individuals clearly which would help the firm in hiring best employees for the company (Zibarras and Coan, 2015).
- Job Analysis:HRM would allow Tesco to specify each job on the basis of skills, qualification and experience necessary for the position. It would help the firm in hiring right person for the right job which would ensure its future sustainability and growth.
- Performance Appraisal:With a huge workforce, Tesco is required to assess and analyse the performance of each individual working within their firm. HRM would allow the firm to employ methodologies that would aid the purpose and appraise the performance of its workforce which would determine the areas of inefficiencies in their performances in a systematic way (Caligiuri, 2014).
- Training & Development:One of the most important function of HRM is to provide effective training to the new as well as existing employees of Tesco. HRM would clearly articulate the strengths and weaknesses of each individual working within the firm and would allow the managers to strengthen areas with a scope of improvement in ways which would enhance their performance.
M1. Assessment of HRM functions in providing talent and skills to fulfil business objectives
In Tesco, functions of HRM would be effective enough for the firm to fulfil its short as well as long-term objectives with utmost convenience and ease.
- Recruitment and selection of employees would allow the firm to interact with various individuals whose innovative and creative mind-set could be beneficial for the firm in the long run.
- Job analysis would help employees in understanding their roles and responsibilities regarding their job roles as it would articulate the needs for a specific job profile.
- Performance appraisal would allow Tesco to define standards for its employees to achieve and measure deviations in the results effectively.
- Effective training would motivate employees in achieving the goals and would enable the firm in expanding its horizons for different strategies according to market.
P2. Strengths and Weaknesses of different approaches to recruitment and selection
There are various method which Tesco could adopt to recruit as well as select employees in their organisation (Wilton, 2016). This would depend on their agendas on what approaches they adopt for recruiting their employees. There are two types of approaches, Internal and External. Benefits and advantages of both are briefly discussed below:
In this approach, Tesco would search for potential employees within their company. As an example, if a vacancy arises in the firm, the firm would choose potential individuals within the organisation itself. There are three methods which Tesco could possibly adopt:
- Transfer:This refers to a process under which company would shift individuals from their current jobs to similar posts. Their ranks, prestige and responsibilities would be similar. In addition, the number of employees in the firm would remain the same (Storey, 2014).
- Promotion:Under this process, an employee is placed on a higher position which also set a higher standards regarding their duties, responsibilities as well as pay-scale. This would motivate the employees and would enhance their performance levels.
- Internal Recruitment:This refers to the process in which firms hire individuals related to a present employee working in the company. This would allow employees to present individuals that are most appropriate for the vacant position.
Advantages of Internal Approaches:
- It helps in improving the morale of employees and motivates them to work efficiently.
- This approach help in facilitation of loyalty among the employees regarding the company and its operations.
Disadvantages of Internal Approaches:
- Internal Approaches would eliminate possibilities for outside talent to be a part of the organisation and contribute in its success.
- This method is least effective when creative thinking and innovation are the aspects required for the particular job role.
Tesco, in this approach, would choose external methods to hire individuals for their organisation. This approach is generally adopted by companies where the existing employees are not fit enough to be placed to a certain position, or when the firm is expanding its workforce. The methods under this approach are described below:
- Advertisements:In this methods, Tesco would provide advertisement using print, television or social media regarding the vacant position in their company. The focus on creating advertisements is on articulating the specifications for the job effectively which only attracts individuals who are right for the role.
- Online Job Websites:Currently, there are various job portals which could allow Tesco to recruit individuals for their organisation. Moreover, the firm could give a job vacancy at their company website to hire individuals.
- Recruitment Agencies:Tesco could approach various recruitment agencies that specialises in providing a pool of candidates specifically for required job performance (Smith, 2014).
Advantages of External Approaches:
- It ensures the firm to find appropriate person for the job and eliminates limitations of internal approach.
- It serves best as it brings individuals with new ideas that could be fruitful for the firm.
Disadvantages of External Approaches:
- The prime disadvantage of this approach is that it's costly.
- It demotivates existing employees who seek improvement and enhancement in their job roles.
There are different types of approaches that could help Tesco in selecting the best out of the recruited candidates. Some of the approaches that could help the firm in achieving this are as follows:
- Ability Tests:Under this approach, Tesco would judge the individual on the basis of knowledge they possess regarding their job roles.
- Situational Tests:These tests are based on determining the reaction as well as behaviour of the candidate during specific situations. It also identifies ways in which the individual handles the situation.
- Personal Interviews:One-on-one interviews are the most effective interview types and involves a personal interaction between the candidate and an organisational personnel authorised to take the interview (Marchington and et. al., 2016).
Advantages of Selection Approaches:
- It determines the skills and aptitude of candidates which is crucial for judging their effectiveness for the role.
- The results in these approaches are least likely to be manipulated by test takers of the firm.
Disadvantages of Selection Approaches:
- This process maybe time consuming for the company.
- Subjective questions are also ranked which eradicates its inefficiency (Jackson, Schuler and Jiang, 2014).
M2. Evaluation of strengths and weaknesses of approaches to recruitment and selection
- Internal approaches of recruitment are effective for Tesco when it is looking to enhance performance of its existing employees as it effectively enhances their morale. However, the firm would not be able to formulate any new strategies as internal approaches restrict the entry of outside talent.
- External approaches invite new individuals which creates new opportunities of the firm. The demerit of this approach, however, is that it adds to the cost which is not the case in internal approaches.
- Various selection approaches are reliable in case Tesco needs effective judging before selection of candidates but is not effective in case immediate needs arise for the firm to hire individuals.
D1. Critical Evaluation of strengths and weaknesses of approaches to recruitment and selection
According to Guest, 2011, internal recruitment would be beneficial to Tesco in case it adopts soft HRM and wants commitment of its employees towards the company as it promotes loyalty. But this approach has least suitability in case the firm is looking for innovation in its process and products. In case of external approaches, innovation could easily be implemented with creative thinking of new employees. But it will not be favourable for the financial facet of the firm. Selection results cannot get manipulated which effectively could help Tesco in hiring talented staff. But on the subjective front, the results might be ineffective which could be a disadvantage for the company.
P3: Benefits of HRM practices within an organisation for employee and employer
Main aim of HRM practices is to implement them properly so that maximum utilisation of resources would attain. These practices help employees and employers to improve their performance while working which results in increasing overall productivity of Tesco. Different practices which could be use by company is given below with functional example,
·Training and development:Training refers to inculcating skills and capabilities to the employees so that they can perform their specific task with maximum potential. It helps company to enlarge their knowledge base so that they can compete with other companies in critical environment so to gain competitive advantage.
â–ªEmployee benefits: If employees are equipped with proper skills and competencies then they would be able to excel at their work which would enhance their morale and also motivate them . Motivated employees are the most productive employees as they will enjoy their work while working.
â–ªEmployer benefits: If Tesco employees are working with full productivity then they will improve their quality and quantity of work which would help Tesco to improve their sales and profitability. If overall company productivity is high, then chances of gaining competitive advantage is also high.
·Performance management:It is a process of monitoring and analysing the performance of new as well as existing employees so to remove their weakness and improve their performance. Besides this other aim is to clarify the roles and responsibilities of employees so to set their goals accordingly.
â–ªEmployee benefits: If employees have better knowledge about the work they have been assigned then it would help them to focus on their work with full efficiency. Apart from that if employee’s weakness is been removed after monitoring their performance then it would improve their performance and promotes job satisfaction.
â–ªEmployer benefits: If Tesco employees are working with their full potential then it would enlarge overall performance of employees. It would also reduce employee turnover rate as they are satisfied in what they are doing which will leads to reduction in acquisition cost.
·Enhancement in Quality:It is a process of promoting enhancement in quality of work employees are doing to improve customer satisfaction towards company's products. If customers are getting better quality of product, then it would automatically increase retention rate of customers.
â–ªEmployees benefits: Company provides training to their employees through workshops, online classes, on the job training etc. so to improve their capabilities. If employees are equipped with latest skills and capabilities, then it would improve their working style resulting in better satisfaction at job and morale.
â–ªEmployer benefits: Main focus of Tesco is to satisfy customer needs and demand so to earn more profit. If it is achieved by them then it will improve company's goodwill, efficiency and effectivity, reduction in production cost etc.
·Selective hiring:It is a process of recruiting and selection of potential candidates so to fill out the vacant post in the company. It is based on the mission and vision of the company as if less candidates are recruited then company cannot utilise their resources to its fullest and if they deploy more than it would reduce employees potential as they cannot work with their full efficiency because of shortage of work.
â–ªEmployees benefits: If candidates are recruited according to their expertise then it would assist them to perform with full potential thus improving morale and confidence of employees.
â–ªstrong>Employer benefits: If individuals are recruited according to their requirements at the workplace then company would be able to attain maximum utilisation of resources which is good for the company while competing with other players in the market.
P4: Different HRM practices in terms of profit and productivity for company
If HRM practices if properly implemented at the workplace, then it would increase company's profitability and productivity as practices aim is to increase the overall productivity of organisation. Different practices with their advantages is given below,
·Training and development:Focus of T&D is to provide all the expertness which is requires to accomplish assigned task to employees so that they can perform with their best potential. If employees are using skills according to their work, then it will increase their efficiency which would help company to gain more profit in future.
·Performance management:Main aim of performance management is to remove weakness in the workforce so to improve their performance. If employees are performing with their top potential then it would help them enhance their quality of work which assist company to increase their profitability and productivity over time.
·Enhancement in quality:Quality is directly proportionate to customer satisfaction. If quality of product is better than other competitors then customer will switch their brand to that company which will expand customer base of company. If customers are satisfied with the quality of work company is doing, then it would surge customer retention which will boost profitability of Tesco in future.
·Selective hiring:Candidates can perform at its best when they are using their competencies while working. If work assigned to them is according to their expertise then it will surge their efficiency and effectivity while working. Hence more productivity for company.
M3: Specific example to support evaluation of practices within an organisation
It is essential for Tesco to evaluate HRM practices within the firm. For instance, the firm was facing low sales in their stores and more grievances from customers. To tackle this situation, company found out that employees does not have proper knowledge about products which they are selling due to which they cannot explain the pros and cons of using the products. Tesco planned training sessions in which experts will teach staff members about the products company deals with and latest techniques which a salesman can use to accomplish their target. After a month, company analysed that employees have surpassed their own records while selling and achieved a target which is hard for other stores to achieved. So it can be concluded that if HRM practices are implemented according to the vision and mission of Tesco then it would assist them to increase their profitability and productivity over time.
D2: Critically evaluate HRM practices within an organisation context
If employee’s weakness is removed by Tesco with the help of performance management then it will upgrade their performance which affects their performance in a positive way. On the other hand, if they are performing according to their limited skills then it will limit their performance level due to which company won't be able to attain highest utilisation of resources.
Tesco focus is to attract their customers by providing high quality of product which will force them to visit Tesco stores again. If service provided to customers are not up to their expectations, then they will switch their brand which will affects company profitability in a negative sense
P5. Importance of employee relations in influencing HRM decision-making
It is imperative for Tesco to maintain healthy relations with their employees in order to ensure long-term gains and competence in the firm (Bloom and Van Reenen, 2011). These relations influence HRM decision-making in various ways which are described below:
- Change Implementation:It is not easy to implement change in an organisation. This is because there might be resistances from the workforce regarding the implemented change. It could be regarding the methods, techniques or functions. Healthy employee relations would allow Tesco to persuade employees to effectively adopt the change.
- Reduces Conflicts:There are various decisions in the organisation that are unfavourable for employees such as pay cuts. Employee relationships would allow the firm in reducing conflicts regarding these issues which would add to its profitability and enhancement in performance.
- Integration of Objectives:HRM decision-making might not always be fruitful for each employee working in Tesco. The firm through good relations would help in aligning individual objectives from that of the firm. This would help the firm in taking individual decisions with assurance of support from employees (Coff and Kryscynski, 2011).
P6. Key elements of Employment Legislation and their impact on HRM decision-making
Employment Legislations refers to the rules and regulations regarding all the employees working in an organisation. These regulations govern rights of individuals working within Tesco. the firm, each decision took by the management must support these legislations in order to ensure ethical working and government support. The key elements of employment legislations are as follows:
- Equality Act, 2010:This act protects the employees of Tesco from any discrimination and ensures equal treatment in accessing employment services and public and private services regardless their gender, age, religion and so forth. Its impact on decision-making of Tesco is that the firm must adopt practices and avoid discrimination in their methods which would ensure a collective growth of all individuals.
- National Minimum Wage Act, 1998:Under this act, any individual aged 21 to 24, working in an organisation is entitled to a minimum wage of £38 per hour. Tesco must take decisions regarding the salaries which includes basic pay to all its individuals under any circumstance (Main Features of Current Employment Legislation,2018).
- Working Time Directive Act, 1999:This act would protect the employees against unnecessary longer working hours imposed by the firm. Tesco must take decisions regarding the time of employees that comes under their maximum working hours.
M4.Evaluation of key aspects of employment relations and legislation affecting HRM decision-making
Tesco, in order to maintain a healthy working environment, is bound to work according to employment legislations and maintaining effective employment relations. Decision-making of the company must be according to these two aspects with an agenda to manage the human resource effectively.
- While implementing changes, the firm must focus on healthy employee relations which would effectively help the firm in sustaining its performance even after the change.
- Compliance with employment legislations such as Equality Act, would allow the firm in integration of the goals as well as reducing conflicts.
- Limited and appropriate working hours would keep up their effectiveness all throughout the day which would help the firm in managing daily operations.
P7. Application of HRM practices
HRM practices undertakes different tasks that manager of Tesco has to perform to improve skills and potential of their employees to ensure top performance in various jobs in the firm (Beardwell and Thompson, 2014). It would help Tesco in enhancing its sustainability and enhancing its service quality.
M5. Rationale for application of specific HRM practices
It is essential for a firm like Tesco to adopt various HRM practices in the firm which is essential for its growth and better management of human resources (Aswathappa, 2013). The rationale for its application are discussed below:
- Job Description would help the firm in finding the appropriate and right individuals for the job who would be fit to perform at the specific job role.
- Tesco, through person specification could shortlist individuals who can provide their maximum output to the company and contribute in its success.
D3. Critical evaluation of employee relations and application of HRM practices
According to Anderson, 2013, employee relations would be beneficial for Tesco, however, it certainly has some limitations. HRM decision-making could not always satisfy employees and there are times where critical decisions are required to be taken that is beneficial and necessary for the company. Whereas in the case of job description as an HRM practices, finding accurate individual for the job role is quite complex and a time consuming process. In case of Tesco, it would also add to the rigidity in job roles which eliminates the possibility for hiring an innovative and creative individual that could add to the operations and enhance its performance.
Thus, it is concluded from the report, that Human Resource Management is one of the key aspects that drive a firm towards success. It is important for companies to understand the functions of HRM in workforce planning. It is also necessary to evaluate the strengths and weaknesses of approaches to recruitment and selection. Effectiveness of various HRM practices must also be evaluated to enhance profitability. It is imperative that companies maintain good employee relations with its customers and key elements of employment legislations must also be complied by the firm. Lastly, the application of HRM practices must be critically evaluate to determine the most effective practices for Human Resource Management.
- Anderson, V., 2013. Research methods in human resource management: investigating a business issue. Kogan Page Publishers.
- Aswathappa, K., 2013. Human resource management: Text and cases. Tata McGraw-Hill Education.
- Beardwell, J. and Thompson, A., 2014. Human resource management: a contemporary approach. Pearson Education.
- Belloâ€Pintado, A., 2015. Bundles of HRM practices and performance: empirical evidence from a L atin A merican context. Human Resource Management Journal.25(3). pp.311-330.
- Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity. Handbook of labor economics. 4. pp.1697-1767.
- Caligiuri, P., 2014. Many moving parts: Factors influencing the effectiveness of HRM practices designed to improve knowledge transfer within MNCs. Journal of International Business Studies.45(1). pp.63-72.
- Chowhan, J., 2016. Unpacking the black box: Understanding the relationship between strategy, HRM practices, innovation and organizational performance. Human Resource Management Journal.26(2), pp.112-133.