Strategic Human Resource Management (SHRM) refers to the procedure that is undertaken by a companies to build a strong connection between human resources of the organisation with its objectives and strategies. It is quite an important aspect of an organisation which wants to achieve a competitive advantage in the marketplace (Sikora and Ferris, 2014). The report below is based on TESCO Plc, which is one of the biggest retail organisation in the UK. It briefly includes HR policies and practices and impact of external forces on HR strategic decisions within the company. The report also analyse organisation of HR function and how policies and practices are delivered.
Analysis of HR Policies and Practices
There is a huge workforce working in TESCO and there are various levels of employees operating within the company. Moreover, there are various concepts that govern the operations of Human Resources within the company. Moreover, these concepts are necessary to be applied in order to get the best outputs of the employees. Below is the analysis of HRM policies and practices within TESCO against Hight Commitment HRM (HCHRM) (Best Practice and High Commitment HRM, 2018).
High Commitment HRM are those aspects and practices of Human Resource, that are focused towards enhancing performance of the organisation. The emphasis of this management is on increasing labour turnover, improvisation of employee behaviour, enhancing customer services and so forth. The best practices under this approach for TESCO are mentioned below:
Every company needs to hire employees that promote to their growth and long term establishment in the market. For this purpose it is necessary that a firm must conduct effective recruitment and selection methods to hire employees. Within TESCO, there are rigorous procedures for hiring employees and they have to undergo various tough selection process before successfully making it into the company. However, the firm instead of being lenient in hiring employees, must selectively hire employees for their firm. Precise techniques, structured interviews and effective work simulators must be employed by the company to hire effective workforce for the organisation.
Where performance enhancement and effective problem solving is concerned, it is imperative that the firm promotes teamwork which provides creative problem solving and innovative solutions for each of the organisational problems. Within TESCO, there are various activities and task that require collaboration and effective teamwork of employees. HCHRM requires the firm to provide training to employees in a way that they become indulged with each other and form effective and competent teams to achieve the activities. In addition, they must also communicate the benefits of working as a team in a way that teamwork provides satisfaction to the employees of TESCO.
Effective Compensation Policy
There are two aspects which must be considered for such practice, these are average compensation and performance related rewards which are concerned of rewarding the employees on the basis of their higher contribution in the organisation (Taylor, Doherty and McGraw, 2015). This is one of the major policies in TESCO and it awards its employees for their higher performance in the organisation. The agenda of the firm in implementing this policy is to develop higher satisfaction and better commitment in the employees for the firm. Thus, for its long term success, it is imperative that the firm continue this policy within the organisation.
Another policy that is crucial for high commitment HRM is performance appraisal. This means that standards must be set for the employees and they must be communicated about expectations that the firm has from them. Within TESCO, regular team meetings are held to communicate the staff about their performances and feedbacks are given to the employees by performance appraisals. The main focus of these appraisals are on performance reviews of their employees. In case they fall below the expectation, the company also provides effective training to ensure their future growth. Such policies also help the firm in engaging the employees and regular feedbacks of their performance build better commitment in the employees towards the company.
As per the above analysis, TESCO performs practices and follow policies that help the firm in implementing High Commitment HRM within the organisation to retain their employees in an effective manner.
External forces and their effect on HR decisions
Human resource plans are affected by internal and external environment so prediction is necessary for effective planning. HR manager must be aware of what is going inside the company in relation to the factors that influence change. Following are the factors that affect the decisions in an organisation :-
Manpower Demographics: When people are retired from the organisation and new manpower is hired then HR department of TESCO will look for numerous ways to attract and retain the candidates. They will recruit in a different way and can provide various kinds of compensation packages. They make sure that every type of external influences is comprehend to and proper operation are followed to avoid law suits and sanctions (Sheehan, 2014).
Labour Market: Demand for a labour consist of attributes such as education, experiences, skills and knowledge,etc. It is necessary for HR to determine what kind of people are available in the market that is skilled, unskilled or semi skilled. Decisions to be taken in this regard as if HR of TESCO wants educated and highly skilled candidate but available people does not poses the required potential so HR department may recruit people from outside the place. HRM play vital role in managing, recruiting employees who are appropriate to take part in right job position.
Economic Conditions: Economy has a major impact on the human resource to address hiring, employee engagement, compensation, etc. For instance, when economy is downturn, HR of TESCO will lay off a lot of employees or cut pay to raise money for the company until economy becomes stable and saturate. HR also helps in developing communication material with changing economy which includes e-mail, planning department meetings, etc. Thus decisions are to be taken by considering economic conditions (Paillé and et. al., 2014).
Technology: Technology is becoming advance day by day. It changes the way people do business. It is an external influence because when new technologies are introduced then the HR department of TESCO will start looking at how to minimise and look for ways to save money. With this, HR will introduce employee self service module which allow workers to check their benefit status, update personal information, supervise their tax rates, etc.
Unionised and Non-Unionised: In unionised workplace, contracts are legal document between the HR of TESCO and worker that clearly defines all the rules, regulations, benefits, etc. HR decision will have impact on this as they are bound with those rules and regulations and cannot take decisions which are against those rules. In Unionised employee are belongs to same union like trade union etc. Non unionised workplace, all the rules are made by employees, decisions are taken by employees regarding promotions and working hours. The decisions are not effected by non-unionised force. There is no specific rules, laws and regulations are imposed. These employees are not belong to any of the union and they are not the member of any labour union. So, Hr. can take any decision related to employee or make any policy in respect to them (Kramar, 2014).
Analysis of organisation of HR function and delivery of HR policies and practices within TESCO
TESCO is very large in size, and with such magnanimous structure composed of various levels, it is imperative that HR functions are effectively organised within the firm. Various ways in which these are organised are as follows:
Recruitment: As one of the main functions, recruitment is organised in a very effective manner where individuals are called up for various aptitude and mock tests before segregating the best employees for selection. Various managers along with the HR executive mark the standards upon which the judging criteria is set.
Training: This function in TESCO is a repetitive and consistent. The firm pays heed to train the employees since the very beginning and provide them with induction programs to make them familiar with the companies work and provide various other training programs to employees according to their posts (Knies and et. al., 2015).
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However, there are various methods that are used by TESCO to effectively deliver the HR policies and practices. One of the most important methods for their delivery is Ulrich's Model for Human Resources. Under this model, it is described that there are 4 roles hat are effectively played by HR Professionals in a company and each role has a specific output to offer to the company. These roles and their outputs in case of TESCO are mentioned below:
Strategic Partner: HR Professionals in TESCO are required to effectively communicate to the internal customers of a company. These customers are employees, shareholders, creditors and so forth. This role requires them to channelise each internal customers by giving feedbacks about quality of experience. Another way in which they play this role is by identification of top talent within the firm and share HR objectives with employees to promote productivity (Jamali and et. al., 2015).
Change Agent: To fulfil this role, HR professionals communicate the changes in the internal organisation in case the organisation plans to evolve, expand and in case of alterations. Training programs are organised to make them familiar with the new skills required by them.
Administration Expert: In the administration point of view, the role of HR professionals in TESCO effectively follow changes in regulations, legislations, rules and laws and help the firm in adapting and complying with these laws. They are also responsible to organise information of employees and updating them as per needs of the firm.
Employee Champion: HR professionals are required to stay updated of the interests of employees as well as protecting these interest. They motivate the employees to improve their morale and enhance satisfaction as well as create a positive environment for the employees to work in. With various methods like surveys, they determine the satisfaction of employees and ensure that they are treated with fair practices (Bailey and et. al., 2018).
In delivering the HR policies and practices, TESCO uses this as an effective method to achieve the purpose effectively.
Apart from HR professionals, line managers too have a prominent role in TESCO in delivering the Human Resource Management. They are the individuals within the firm who are responsible for directly managing the work of employees and business operations while reporting the same to senior managers. The role of Line Managers in delivery of HRM is mentioned below:
They help the firm in recruiting and hiring talented employees to fill positions in the organisation.
They cross-train employees using effective methods and techniques to ensure minimisation in gaps in assignment coverage and job rotation. This also helps them ensuring teamwork within the company (Armstrong and Taylor, 2014).
For compensations and appraisals, they ensure proper monitoring of performance of employees and and measure the same with the set targets
However, there are various challenges that are faced by Line Managers TESCO in delivering Human Resource Management that are mentioned below:
The first challenge faced by these managers are the long working hours. They are required to manage employees daily and effectively which needs them to spend more time in the office for the same.
The teams that are allotted to these managers are large in number. This becomes complex for them to manage the performance of the employees effectively.
In TESCO, they are given the responsibility of minimising expenses that are required to measure the performance and employing tools and techniques for the same. This is a challenge that they face during performance appraisals.
However tough the challenges, they are required to fulfil their responsibilities effectively to ensure tough efficient working in TESCO and better Human Resource Management (Albrecht and et. al., 2015).
Thus, it is concluded by the report that strategic human resource management is required to effectively manage human resources in the organisation. High Commitment HRM is one of those prominent concepts against which firms could measure the implementation of their HR policies and practices. The external factors have a crucial role in impacting strategic decisions taken by HR. Lastly, Ulrich's model of HR could effectively be used to deliver HR policies and practices and line managers have a crucial role in delivering human resource management within the firm.
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