Strategic Leadership & HR Practices sample analyzes Tesco PLC's shift to one-year WFH amid COVID-19, evaluating HR functions like Ulrich's model, and Lewin’s change framework for sustained performance and employee engagement.
COVID-19 pandemic has remodelled or reformed the overall business environment and workforce, and so companies have to adapt swiftly in order to remain active and also at the same time confirm its staff wellness as well as their safety. In reaction to this, large and leading international retailer, Tesco PLC, has taken decision to employ a one-year policy of work-from-home (WFH). This shift underlines a considerable change in the way human resource (HR) roles will be taking place in the organisation (Cayrat, and Boxall, 2023). This report will discuss the strategic which the company will employ for handling such transition. It will be done through analysing the influence of chief practices of HR involving employee growth, staffing, styles of leadership, change management and compensation.
In addition, HR practices of the company have continuously been lined up its business goals, emphasizing on talent retention, leadership growth and management and employee involvement. Human resource function is called people team within Tesco, as its staff is at the hearth of everything the company does. Although, the work-from-home (WFH) agenda will come up with issues, mainly in upholding productivity and morale among staff members, as well as corporate culture. In this case, human resource will play a crucial role, since it will be ensuring that the staff remains capable, involved and also paid well. Also, the report will critically assess the impact of HR on the performance of the business, discover theories of leadership which are pertinent for handling transition to remote working, as well as suggest strategies to manage change and for addressing probable resistance because of the WFH policy.
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Mission statement of Tesco is to be the victor for customers, aiding them to relish an improved quality of life as well as simpler manner of living. The company’s vision emphasizes on its intent to serve and supply its customer a little better each and every day, augmenting their experience and at the same time uphold quality and affordability. Further, the purpose of the company is to serve better to its communities, customer and the overall planet every day. Its business objectives revolve around components such as sustainability, health and wellness and affordability with quality (Tesco PLC. 2025). Tesco has global presence in overall 12 countries across the world with nearly 2,318 stores. (Powerbase.info. 2025). The company’s cumulative annualized revenue growth rate (CAGR) over the charted time period is 5.6 percentage (London Stock Exchange. 2025).
Additionally, the company provides drinks, fresh food, grocery, bakery, entertainment items, homewares, baby products, clothing, health and beauty items, electrical products. Mainly Tesco is a grocery merchant, though it also supplies a vast variety of non-food items, telecommunication and financial services. Further, the company has more than 330,000 employees across the world (Tesco PLC. 2025). The business targets of the company involve upholding its leadership placement within the retail grocery sector of UK, diversifying its presence on online platforms and augmenting sustainability activities. While, heavy competition form large, online organisations and discount retailers, as well as continuous influence of pandemic on the behaviour of customers are some of the challenges.
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Human resources plays an important role in allowing the company to fulfil its tactical goals. The main functions of HR involve employee development, engagement, retention as well as talent acquisition. Such functions confirm that the company appeals, improves and acquires finest talent, that is crucial to the success and growth of the company. Further, HR team of the company works meticulously with the recruitment manager in order to confirm that it hires the top talent. The company makes use of data based approaches for recognising skill gaps and reach diverse potential individuals. It also makes investments in employee growth, providing its employees with training sessions, career advancement opportunities and also leadership development chances. Moreover, HR department at the company concentrates on nurturing a favourable work atmosphere by the help of employing employee involvement practices, which in turn confirm that staff members feel valued and also are line up with the Tesco’s strategic objectives.
2.2.1 Staffing
Staffing is a vital HR function, it involves recognising, choosing, training the ideal candidate in order to management the operations of the organisation in an effective way. This function at Tesco play an important role in developing a responsive staff. It offers employment to a large number of people crosswise its online functions, support operations and retail outlets. The HR team confirms that the company appeals candidates with required abilities, while concentrating on inclusion and diversity (Phillips, 2023). Further, the Tesco’s organisational structure is quite hierarchical, however the company has implemented agile functioning initiatives for nurturing innovation and receptiveness.
2.2.2 Development of employees
With the newly employed one-year work-from-home policy, it is pivotal to concentrate on particular abilities needed for working remotely. In order to feel ease while remote working, staff members require digital or technical literateness, they should be expert in making use of collaboration and interaction tools. Additionally, time management skills are also important for remote workers as they must know the way to put in place realistic goals, handle their time effectively and prioritize work roles. Self-started or self-motivation trait is further very crucial in working remotely as it decreases the management load and makes supervision simpler. Moreover, communication abilities are necessary to confirm precision and evert any kind of mix-ups. Being adaptable to evolving working conditions and also technologies will be crucial for remote employees. Thus, Tesco will require to confirm that its training sessions are lined up with such abilities, allowing staff to remain efficient and effectual within a remote working setting.
2.2.3 Compensation details
Through the transition to remote work, the company will require to alter its compensation policies in response the new opportunities and issues. Chief deliberations in such context involve salary adjustments, since the remote working might decrease the travelling costs of employees, there may be requirement for adjusting salary on the basis of locations of staff members (Piwowar‐Sulej, 2021). Another consideration can be bonuses for extra working hours, the company would require to put in place policies in relation to working above normal hours and reimburse staff as per that. Further, Tesco need to also confirm that home office and data usage expenses are equally rewarded. The company might require to expand health insurance and benefits in order to cover telemedicine options and mental health facilities within the remote work setting. Also, work-from-home could be isolating, therefore, the company will require to come up with wellness programs for upholding engagement and health of employees.
Within any company, human resources play an essential role in designing both the long-run as well as short-run results. With the pandemic compelling businesses including Tesco to implement new aspects of working, the incorporation of strategic management of human resource is highly crucial than ever. The HR strategies of the company have transitioned for addressing the issues occurring because of pandemic (Bao, et al. 2021). Strategic Human resource management (SHRM) emphasizes on lining up the practices of HR with the entire business plan in order to augment both the performance of organisation and also employee wellbeing.
Strategic HR model by Ulrich model is a framework which assists to structure responsibilities and roles crosswise HR departments. The model is meant mainly for big companies with unwisely and vast teams, it is made to make the working way flawless and confirm that each and every member of team is clear about their responsibilities and roles, as well as what they are responsible for. This model defines chief role of the HR professionals. Such roles could be evaluated in terms of work-from-home policy of Tesco, these roles in the context of present WFH policy are elaborated below:
At the organisational or administrative level, practice of human resource management should answer to both the external as well as internal issues. The external business environment involves influences like competition, economic environment, trends in the marketplace, straightaway affect the strategies as well as performance of the organisation. In the course of pandemic, the external atmosphere has gone through considerable alternation, and companies had to acclimatise swiftly in order to subsist. Moreover, strategic role of HR in answering the challenges of external atmosphere involves confirming that the staff remains resistant and flexible when challenged with uncertainty.
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HR managers in the present case must work in a direction that make sure that the workforce have the needed resources, assistances and tools in order to work in remote environment in an effective way. Further, they must assist the company in retort to the external market requirements through confirming that staff members are responsive and capable (Saad, Gaber, and Labib, 2021). HR can further aid the company to recognise and handle external dangers, like alternations in employment regulations, technological disturbances or economic transitions, through being active in altering or changing it practices and strategies as required.
Role of human resource internally is to confirm that the staff members are inspired and assisted to make contribution to the success of the company. This is mainly pivotal for the duration of remote working environment, where workers feel detached from the company. The impact of HRM activities on the workforce can be observed in many chief domains, like employee motivation and involve, wellness and support and communication and cooperation. When the workers are doing work remotely, it is apparent for them to sense disconnection from the culture of the organisation and also from their co-worker. HR can eliminate this through confirming consistent interaction, cultivating team building exercises and upholding a feel of community.
Furthermore, employee wellness is other crucial domain where human resource plays an essential role. As remote employees face challenges such as work life balance, stress and uncertainty, HR can provide assistance through employing programs for uphold physical as well as mental health, like virtual yoga, supply working schedules and therapies. Additionally, within a remote working environment, communication and collaboration turns out to be even increasingly important (Anwar, and Abdullah, 2021). HR can simplify their through establishing platforms for virtual assemblies, confirming that staff members stay allied with their departments and team members, and promoting clear and transparent interaction.
Leadership plays very important role in functioning of each and every organisation involving Tesco. Leaders offers vision, direction, inspire and cheer other and aid in creating an atmosphere conducive to growth and success through encouraging collaboration and communication among the group members. Overall, leadership and robust management are crucial for any business which desires to attain its goals. In the present scenario, leaders will help a lot to motivate and cheer up the remote employees and also assist in improving employee engagement.
Transformational leadership theory encourages a mentorship style which focuses on inspiring team members and developing a vision and promoting and cheering them to achieve it. In such approach, leader authorise workers to take decision, promote creativity and nurture an atmosphere where the group members are inspired to make contributions to the vision of the organisation. Such leadership style is frequently regarded with organisational change and development in long-run, as leaders focus on personal growth, mutual dedication toward common goals and adaptability. These leaders are committed to the mission of the company and assists group members to succeed. Transformational leadership theory encompasses of four different elements which symbolize its crucial facets within any business setting. These elements are intellectual stimulation; individualised consideration; inspirational motivation; and idealised influence.
The shift to the work-from-home arrangement needs robust leadership which can motivate staff to remain determined towards the goals of the organisation, irrespective of the issues associated with working in remote environment (Nguyen, Malik, and Budhwar, 2022). With establishment of WFH policy, it is crucial for leader to provide an unambiguous vision for the upcoming period. Leaders adopting such transformational leadership theory can effectively create and communication the way such transition to remote working matches with the long-run objectives of the company as well as the wider business environment, forming a sense of direction and purpose for the staff members. Often, remote work needs workers to search for different and new approaches of performing tasks. Transformational leaders promote innovation and inventive problem solving ways, authorising staff members to perform beyond their comfort zones and adjust with the evolving working conditions.
Moreover, a transformational leader give priority to the development and progression of their team members. Through providing individualised assistance, they could assist worker to acquire abilities which will permit them to prosper or flourish within a remote working setting. It is particularly crucial during the time when the workers might feel dazed or get confused due to such shift. Moving ahead, faith is crucial within remote working settings. The transformational leaders form trust or faith through leading its group members with honesty and showcasing compassion for the requirements of the staff members. Their dedication to development and growth of individual person cultivates faithfulness, making sure workers are highly connected as well as involved.
Though transformational leadership demonstrates high effectiveness in inspiring workers, it can many a times be tough to uphold the similar level of inspiration and passion within remote work setting. Further, without physical communication, it can be very tough for leaders to uphold the same energy level which could be within a face-to-face setting (Ladkin, and Patrick, 2022). Although, by conducting virtual session on regular basis, and doing check-ins on every individual through usage of technology, the leaders can uphold robust and solid bonds with employees.
Participative leadership theory also known as democratic style of leadership, promotes cooperation through encouraging responsibility within individual roles as well as coming altogether to search solutions, instead of targeting fingers when issues rise. It is a leadership style in which leader pursues inputs from each and every member within the organisation. Objectives of this leadership style involve improving sense of ownership among employees, augmenting overall process of decision making and incorporating personal objectives of the employees with those of the company. Participative leaders provide direction to the group members and at the same time promote them to offer feedback and take part within the decision making process of the company.
As Tesco is transitioning to full-time WFH policy, the requirement for collaboration and interaction is progressively rising. Remote employees might feel detached from the company. Engaging worker within process of decision making assists them feel esteemed and more associated with the vision of the organisation, in spite of the physical detachment. Further, since the staff members are disconnected, they hold different knowledge and standpoints. Through employing participative style of leadership, leaders can reach a wider array of ideas and perceptions, making sure that the decisions imitate the mutual intellect of the company.
In addition, WHF policy can result into uncertainty, tough participative style of leadership encourages inclusion and faith. When the leaders proactively pursue inputs as well as engage staff in decision making process, it cultivates motivation and faithfulness, that is crucial for upholding heightened employee morale (Wang, Hou, and Li, 2022). Further, the transition to remote work, work-life balance of workers has turn out to be very essential. A participative leader can involve in interactions with staff members and converse about their preferences related to work, which in turn would help to put in place strategies which take into account personal situations and at the same time confirm productivity. However, due to inputs from numerous members, the process of decision making can slowed down, making decision making a time-consuming process.
The most suitable leadership style for Tesco, particularly in the terms of the present scenario related to WFH policy is Transformational leadership style. In the remote work setting, leaders following transformational style of leadership can offer a compelling and transparent vision for the forthcoming time, that is important for keeping workers inspired and concentrated. Such shift can be difficult to manager for the staff members of Tesco, both professionally as well as personally. Transformational leaders offer emotive assistance, inspiration and enthusiasm required to walk through such issues. Remote employees must be highly innovative, responsive and adaptive. A transformational leader authorises workers to try-out new working approaches and make contribution to the success and development of the company (Eaton, Bridgman, and Cummings, 2024). These leaders can also assist in forming robust emotional bonds, confirming that the staff members feel valued, assisted as well as faithful towards the company.
Change is unavoidable within any company, and factors both external as well as internal play a role in influencing the requirement for change.
5.1.1 Internal factor
Internal factors which affect Tesco involve technological improvements, the company is implementing and accepting fresh technologies, mainly within the form of digital tackles which improve online experiences of customers and eventually augment customer service. Such technical creations need the staff to refine their skills, operating change within HR practices like skills and talent development. Another factor is staff needs and demands, through a progressively varied staff and evolving demands of staff members, like improved balance between work and life, the company requires to employs its HR policies and activities. This covers remote working patterns, supple hours of working, as well as highly strong welfare programs. Furthermore, another internal factors which impacts Tesco is leadership, any form of leadership shifts in the company can result into transitions in HR activities and corporate culture (Mikalef, Pateli, and van de Wetering, 2021). Innovative leadership might require to employ fresh plans in order to augment satisfaction among staff members, decrease employee turnover, acclimatise the company with the changes in the market, in that way it drives change within HR activities.
5.1.2 External factor
External factors driving change within an organisation involves economic fluctuations like inflation or downturns, can push the company the reanalyse its recruitment and reimbursement practices. This may involve reconsidering compensation patterns, adapting with supple salary packages or terminating staff, that are chief driving forces for change. Moreover, competitive pressure is another external factor which affect Tesco, as the company faces intense competition from various other large grocery companies and also retailers online. In order to be highly competitive, Tesco requires to adjust its human resource strategies for appealing, developing and retaining finest talent, cultivating a sense of adaptability and innovation. In addition to this, alternations in health and safety laws, employment regulations and rights of workers, mainly in relation to the work-from-home practices are the external factors which influence Tesco (Farooq, 2023). It requires consistently screening such changes and confirming that its human resource practices line up with the legal norms.
For managing changes within the company successfully, change management frameworks are used. Lewin’s change management model is developed by Kurt Lewin; this model suggests that restraining forces impact the behaviour of individuals and organisations, eventually deciding the chance of change. The model proposes that change within an organisation take place in three phases which are unfreeze; change; and refreeze. At the unfreeze phase, the company must intend to prepare the impacted stakeholder for the forthcoming change. Leaders at Tesco should communicate the needs for changes, like in the presence case they must tell why work-from-policy is essential as well as the way it matches with the objectives of the company. Such phase includes considering resistance through involving staff members and assisting them to comprehend the advantages of change.
At the second stage named as change, the company shifts to fresh techniques of working. The company would begin the execution of work-from-home strategy, confirming that its workforce has required resource and tools in order to familiarise with such change. This can involve offering training sessions related to remote working gears, encouraging virtual group formation and nurturing a sense of suppleness. Further, the last stage of the model is refreeze; once the change has taken place, it is important for the company to coagulate the fresh working techniques or ways (Ni, et al. 2024). At such phase, the work-from-home practice turns out to be standard, as well as the HR confirms that the new policies are rooted to the organisational culture.
Additionally, McKinsey 7-S Model is a change management model which is based on organisational coordination and design of a company. It intends to portray the way to handle change within organisation through strategizing around the connections of the seven chief components. These seven elements in terms of the present scenario at Tesco, are elaborated below:
Strategy: Tactical goals of Tesco in relation to augment customer satisfaction and operational competence could be improved through employing a work-from-home strategy. HR need to confirm that the practices are lined up with such new working techniques and alter it if essential to fulfil objective of the company.
Structure: The company arrangement might require to be attuned for assisting remote employees. This can involve decentralizing groups, rearranging leadership roles for fit in with remote group management and cultivating cross-functional cooperation.
Systems: For confirming that the remote working practices works successfully, the company requires to make investment in the correct systems and technologies which allow staff members to interact, cooperate and monitor performance in remote working environment.
Shared values: It involves chief values regulating the health of an organisation. Highlighting values such as innovation, faith and flexibility can aid in confirming that workforce support the work-from-home shift. The company can implant such values within the organisational culture for enabling the change.
Style: Management style plays an important role enabling the change. The company require to implement a highly assisting and vicarious leadership or management style to confirm that workers feel backed through such shift.
Staff: HR need to make sure that the staff members are fully ready for the change by the help of development and training sessions. Employees would require to acquire fresh techniques of communicating, working and handling time efficiently within remote work setting.
Skills: For familiarising with the remote work environment, workers require to refine in fields like technical abilities, self-motivation and remote group cooperation. HR should offer chances for skill improvements for confirming effectiveness and success.
Strategies to overcome resistance
Resistance to change is usual within companies, strategies to overcome such resistance involve using transparent and open communication. Leaders at Tesco must clarify the motives behind work-from-home practices, the advantages for staff members and the way such shift will happen. Engaging staff members within process of decision making can decrease resistance. However, this strategy can possibly result into risen negativity, buzzes and reduced morale is not handled properly (Memon, 2021). Another strategy is to dynamically engage staff within the procedure of change through collecting feedback, considering worries and offering assistance. Providing development and training sessions in order to assist worker to assimilate with fresh processes and tools can facilitate such shift. Although, such strategy can lead to postponements in the execution and decreased productivity.
In addition, offering psychological as well as demonstrative assistance by the use of employee assistance programs, consistent check-ins with the human resource and also online groups for support can aid workers to manage the changes and decrease the sense of isolation within a remote working setting. However, this strategy can result into growing costs for the company and also delayed execution procedure. The best and most effective among such strategies for Tesco can be establishing transparent and open communication channels. This strategy will confirm that every stakeholder to change comprehend the reasons and advantages behind such change. For addressing the cons of the strategy Tesco can concentrate on frequent and transparent interaction, and overcoming employee worries beneficially and at the same time also celebrate success.
For the work-from-home policy of Tesco, the change management implementation plan begins with preparation phase. This stage involves analysing willingness of company for remote work, arranging surveys to comprehend worries and demands of workers, establishing chief gaols and interacting them with staff members. Further, at the execution stage of this plan, Tesco would execute the policy within small stages, beginning with teams which are most appropriate for remote work. This will cover offering training on needed tools, virtual interaction and time handling, as well as consistently communication growth by the help of emails or online meetings. In addition, another phase is related to check steadiness, it will involve collecting employee feedback, doing required alterations as per that, and implanting the remote work policy within the organisational culture and performance handling mechanisms (Pospisil, and Zavodna, 2022). Final stage, is assessment stage, where long-run impacts of this policy on the workforce engagement, performance as well as overall company performance would be monitored.
Effectual communication is crucial for the success of the one-year work-from-home policy at Tesco. A transparent and clear communication plan for the company would include an email from the management of Tesco to the overall company staff clarifying the policy, its goals and the way it will be advantageous for the workers and the overall growth of the company. Further, it will involve frequent updates by the help of online meetings, newsletters and emails in order to keep the staff informed about any changes as well as the growth of the shift. It will also include putting in place clear channels like town halls, surveys, recommendation boxes, through while staff can voice their worries, come up with questions and offer feedback. This will cover information regarding the obtainable training sessions for staff to aid them shift flawless towards remote working setting.
6. Recommendation
In order to confirm success of the work-from-policy of Tesco, it can make investments in the continuous training sessions for refining skills of staff in remote working tools and technologies, time handling and communication gears. This would assist staff members to familiarise and work better within remote work setting. Moreover, the company can enlarge and refine its health and wellbeing programs to involve stress handling programs, virtual counselling, as well as fitness issues. Further, Tesco should make use of co-operative technologies like Zoom, Skype and more in order to nurture collaboration, social interaction and communication amid remote workforce (Attili, et al. 2021). Additionally, the company can put in place transparent and clear performance management systems for analysing the productivity of staff members within a remote setting. This would confirm that the performance prospects are fulfilled, and at the same time a healthy balance between work and life is upheld. In addition, leadership at the company need to concentrate on forming a sense of faith through authorising workers in order to handle their tasks and also time self-sufficiently, without intervening.
7. Conclusion
On the basis of above study, it can be concluded that shift towards one-year work-from-home policy of Tesco represents both opportunities as well as challenges. Human resources plays extremely crucial role in such transitions through managing the workforce in an effective way. Further, in general HR functions like staffing, growth or development of workforce and compensation practices help the company to meet its organisational objectives. Also, strategic human resource management plays an essential role in shifting towards remote work environment. In addition, leadership also has an important role within such transition. Transformational leadership and participative leadership theories has been discussed in the context to the implementation of WFH policy at Tesco. The external as well as internal factors driving such shift or change, involve staff demands, competitive pressures, more, emphasize the requirement for a planned approach to human resource management. Through implementing change management models, the company can effectively handle the shift to remote working.
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