TESCO Case Study: Driving HR Strategy and Change for Business Success
The human resource planning is an effective procedure which identifies future and current needs for an organization to achieve its goals. For TESCO, this report explores Unit 44: Strategic Human Resource Management principles, linking overall strategic planning and HR management to business outcomes. The “People strategy” and strategic HRM is based on creating and developing the coherent framework for workers to be managed, hired and developed to offer support to long term goals of the organizations. This helps in make sure about the different aspects of the people management which works together to drive the behaviour and climate to meet, fulfil the performance targets. The chosen organization is TESCO; this is a British multinational and general merchandise retailer which is mainly headquartered in the Welwyn Garden city in England. The organization has been founded in the year 1919 by Jack Cohen in Hackney, London. With expert Assignment Writing Help, this report will highlight the main external influences based on the generic HR strategies and HR strategy. It will focus on different contemporary developments and trends in HR, and explain organizational behaviour and change impacts on the organization.
Within the scope of Unit 44: Strategic Human Resource Management, discussing major generic HR strategies and external influences is essential. Strategic HRM is an effective process which defines future and current human resource needs for the organization. These approaches align with company culture, talent management, and consumer desires. Major external factors can broadly be considered as technological, social, economic, legal, and political; each can influence the HR strategy and generic HR strategies of TESCO.
Main external influences on HR strategy: The Human resource management within TESCO is continually changing and adapting the political climate in which it functions. For some HRM professionals who is based on staying updated to the emerging and current politics which may be important in understanding the organizational structures and strategic initiatives (Greer 2021). Within the TESCO economic environment can directly affect the HRM practices. For example, within the TESCO when economies experience growth, businesses demands support from HR department and staff which may face the novel challenge. The different economic conditions can affect the compensation, hiring and HR budget. At the time of economic downturns, TESCO must implement the measures related to cost saving. This includes salary cuts and hiring freezes.
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However, at the time of economic boom, focus has been increased on competitive compensation and talent acquisition. In the technological factors, this directly influences the different HR strategies via converting that how performance management and recruitment training can be conducted (Collins 2022). For example, TESCO make use of Systems related to HR management for analytics and employee data. The different social factors such as employee morale and cultural diversity play a paramount role in how the functions within the TESCO are important. These are different societal attitudes which can include the increase in diversity and work life balance of workers and HR policies adjustments. For instance TESCO has been implemented the different and effective policies which can be helpful in promoting the inclusion and diversity. The employment regulations and laws can shape the different HR practices. The legislation compliances which are based on the discrimination, health and safety and rights of workers play an important role.
Generic HR strategies:
Retention and recruitment: The social conditions and external economy can develop the HR strategies which are based on the retention and recruitment. Within the competitive labour market, TESCO may adopt the packages of attractive retention and aggressive strategies of recruitment to manage the effective and stable workforce.
Development and training: The technological advancement focuses on the development and training. The TESCO mainly invest in the programs of employee training to make sure about the skilled staff with the latest technology. This also improves the roles practices which are beneficial for TESCO.
Benefits and compensation: Within the different economic factors which may impact the different compensation strategies. At the time of economic growth, the TESCO can boost the advantageous packages to attract the skilled and top talent. In the tougher time, this emphasise on the changes in the strategies based on the cost effectiveness.
Globalisation: Within the TESCO the globalisation has developed the operations in the various countries which can influence TESCO’s HR practices. The HR needs to direct the legal systems, labour market and differences in cultures. It mainly needs to develop HR strategies which are global based. This aligns with the different and effective local practices whereas also manage the consistency within the company.
Workforce diversity: This is kind of main contemporary trend. Within the TESCO, this implemented the different policies which are mainly based on developing the inclusive workplace (Stewart and Brown 2019). This mainly showcases the commitment related to connecting the different perspective and equality commitment. It may develop the consumer satisfaction and innovation as well.
Shifting skills requirement: The emerging technology is continuously changing the market demand which requires the skill development. The TESCO regularly investing in the programs related to the up skilling and reskilling, which make sure about workers, are aligned with the related skills.
Era of personnel management: In the traditional manner, The HR was emphasised on the different administrative tasks which may include employee records and payroll. The role has been effective in strategies and also limited in the strategic input.
Transition to the HRM: The change from the personnel management to the effective HRM arisen as the organizations which can be known as the strategic value in human capital management.
HRM strategic growth: The effective strategic human resource management is mainly developed as the HR strategies within the strategies of business (Hamadamin and Atan 2019). Strategic human resource management focuses on supporting the HR practices with the different objectives of business. This can boost the organizational performance via the human resources strategic alignment.
SHRM evolution: Over the time, this has been developed to emphasise on the goals which are based on the long term. This can include talent management, employee engagement and culture of organization. The strategic approach places the HR as the major factor to increase success, offer competitive advantages and sustainable growth.
Flexible work arrangement: The current and modern practices of HR focuses on the developing options of remote working, job sharing, flexible working hours and flexibility. Adoption of TESCO which is related to the flexible work showcases the shifting expectation of workers and may boost the productivity, job satisfaction.
Performance management: The management systems related to the contemporary performance emphasise on the on-going feedback apart from the yearly reviews (Dessler 2020). TESCO makes use of the goal setting and real time feedback to boost the development and employee performance.
E-recruitment: The utilisation of the digital platform for the effective recruitment, it has improved the hiring procedures. TESCO uses the tools of e-recruitment to improve the hiring procedure, effective recruitment and reach out the candidate pool (TESCO, 2023).
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540 performance appraisal: The model of 540 performance appraisal, it may involve the self-assessment and feedback of 360 degree. This offers the comprehensive view based on the performance of employee (Boon et al, 2019). TESCO assimilates the model which makes sure about the employees development plan and well-rounded assessment.
Applied HR strategy: This mainly includes the implementing the HR practices which aligns with the changing conditions adoption and business objectives. HR strategy of TESCO involves the workforce planning, decision making based on data driven and different initiatives to offer support to the organizational goals. This also make sure about the HR practices are effective and responsive the needs of organizations.
Change management is systematic approach which can be helpful in dealing with the transformation and transition of the organizational goals, technologies and processes. The change management plays an effective role in organizational development in managing the growth and sustainable performance. The organizational behaviour (OB) is based on how the groups and individuals interact within the organization and how the interaction can affect the performance of organization towards goals. The major focus of the organizational behaviour is paramount in the employee productivity. This focuses on the different elements which can include group dynamics, individual behaviour and organizational culture (Ployhart 2021). By understanding the organizational behaviour is important because it helpful in managing the change. There are key components of different organizational behaviours such as:
Individual behaviour: This refers to the how personal values, attitudes and motivations may impact the interaction with others and work performance.
Group dynamics: This can be defines as how the different individual can work collectively as the team, this may involves leadership style, communication patterns and conflict resolution (Macke and Genari 2019).
Organizational culture: This represents belief, shared values and norms which can shape organizational practices and employee behaviour.
The changes on the organization may directly affect the organizational behaviour; this can put impact on the employee moral to the productivity. The efficient strategies of the change management need to resolve this to maintain the effectiveness and smooth transition in the organization.
Kotter’s 8 step change model: The model is known for maintaining the change in organization. This offers the structured approach to sustain and implement the change by emphasising on the fostering commitment and resolving the resistance.
Make a sense of urgency: The initial step includes communicating changing need to develop the urgency between the each employee. The step plays an important role in making sure about the each one can understand the reason of change and overcoming the inertia. For instance, TESCO can showcase the market opportunities and challenges which can require the strategic change.
From a powerful Coalition: By developing the partnership of influential stakeholders and leaders who offer support in the change, it is essential. Group helpful in addressing concern, guide the procedure of change and also motivate for initiatives (Fenech et al, 2019). Within the TESCO, it may include the department heads, senior executive and major influencers in the organization.
Create a vision for change: By developing the compelling and clear vision of the needed future focuses on the providing help in the aligning with the stakeholders and guiding the shifting efforts (Kotter's 8-Step Change Model, 2023).
Communicate the vision: The on-going communication is important in keeping the workers engaged and informed. By utilising the different channels for communication, TESCO can address the concerns, provides progress updated and vision reinforcement.
Others empowerment to work on vision: By empowering the workers and removing the obstacles which can contribute in the shifting procedure which is important. The effective step may involve offering resources, delegating authority and developing the innovative solutions.
Create short term wins: By celebrating and identifying quick wins mainly helpful in focusing on change benefits and build momentum (Berman et al, 2021). TESCO may focus on the recognising success and achieving it to manage the commitment and enthusiasm.
Build more change: By developing the early successes which can determine the further change which is important in sustaining momentum. It may include addressing emerging issues, developing initial achievements and also refine strategies.
Anchor the changes in corporate culture: For developing the changes which can be lasting, this needs to be an effective part of culture within organization. The step may involve the developing novel practices in the day to day operations.
Lewin’s three step change model
Unfreeze: The stage of unfreezing can includes preparing for the change by working with the existing behaviour and assumptions (Lewin’s three step change model, 2023). These demands for developing the awareness related to the requirement of change and resolve the resistance. Within the TESCO, it can include educating the workers related to the advantages of current state limitation and proposed changes.
Change: The stage of change is where the major transition occurs; it may include implementations of the novel practices, procedures and structures. Support, effective communication and training play an important role at the time of phase to make sure about the workers can understand the adoptive changes.
Refreeze: Once the changing procedures have been implemented, stage of refreezing emphasise on the reinforcing the novel behaviours and stabilising the company. The step can include changes embedding into the culture of organization; make sure about the sustained changes and establishing the novel norms (Noe et al, 2020). TESCO will require using novel practices into the monitoring and standard process for effectiveness.
Both the Lewin’s and kotter’s model showcases the significance of managing change impacts and impact on the organizational behaviour. The different changes may disrupt power dynamic, alter the established routine and put impact on the employee motivation. The efficient strategies of change management need to address the impacts to develop the smooth transition and minimise the resistance.
The HR management activities can include addressing the employee wellness risks, creating the training programs and conducting the surveys. HR change management aims to maintain the productivity, minimise the disruptions and keep the workers motivated despite from the recent adjustments. When TESCO undergo the different changes can be driven by the market shifts, technological advancement and internal restructuring.
HR workforce planning and change management: The HR workforce planning may include evaluating present workforce capabilities, forecasting about the workforce needs and boost the strategies to reduce the gaps among future and current workforce requirements. The effective change management is important within the workforce planning because this offers the techniques and tools which are required to expect the impacts on the changes in organizations (Anwar and Abdullah, 2021). For example, if TESCO is applying the novel technology within the change management which can be helpful in plan for reskilling, training programs and recruitment. Effectively aligning the work force planning along with effective change management, the HR may make sure about the company is having the rights to increase skills of people at the right time.
Recruitment processes: The effective recruitment process can be influenced by the strategies related to the change management, majorly when the TESCO undergoes main transformations which can include introduction to the novel business models, acquisitions. The effective change management is helpful for the HR to align with the efficient recruitment strategies, makes sure about the novel hiring and evolving organizational needs. For example, throughout the merger, TESCO culture may needed the different values, competencies for the novel workers and shifts. The change management is helpful for HR to understand the recruitment adjustments and early shifts.
Managing employee motivation: The employee motivation is one of the major factors within the change and organizational success; this may put impact on the levels of motivation. The strategies related to the change management are important for enhancing and maintaining the motivation at the transition time (Chelladurai et al, 2022). Via the effective communication, change management, involvement and change management is helpful in resolving the workers concerns. This can align the goals with objectives; develop the sense of commitment and ownership within the change process. The major way within the change management can be affected motivation by the including the workers within the process of change. By providing the voice to the workers in how the different changes can be implemented, HR may boost the control and sense of belonging; this plays an effective role in driving the motivation.
Performance management: This is procedure which can make sure that the work of workers is aligning with the goals of organization and which they are mainly performing. At the time of change, the performance management can be become the critical because workers can face different challenges, expectations and roles. The change management offers support in the performance management; this provides the effective framework for monitoring progress, set out clear expectations. For illustration, when TESCO implements the novel processes and technology, the change management can make sure about the workers provided with the adequately training and meet the novel performance. It can decrease the performance risks and also helpful in maintaining the productivity at the time of change process.
The HRM is important in increasing the growth and sustainable business performance by aligning with the strategic objective of the organization. There two major aspects such as resource based view and approach of “best fit”. This offers valuable framework for the knowing the how the Human resource management can contribute in long term success and gaining the competitive advantages.
Sustainable business performance and best fir perspective: The perspective related to the “Best fit” within the HRM suggests that the HR strategies need to be developed to fit within he culture, specific needs and external environment of the TESCO. This argues that the effectiveness related to the HR practices need to be dependent on the external environment and strategic goals. The best fit approach can make sure about the HR practices needs to be aligned with the each business strategy. For example, if the TESCO can works with the differentiation strategy, the HR can emphasise on the developing the workers and recruiting with the creative capabilities and innovation. However, the cost leadership strategy, the HR can emphasise on the streamlined procedure, efficiency and training programs for the cost effectiveness (Hamouche 2023).
The efficient alignment makes sure that human capital of organization need to be well positioned to develop effective business strategy, which can boost the business performance. The perspective of “Best fit” can be reflecting the external environment which can include regulatory changes, conditions of labour market and industry dynamics. By developing the HR practices in the external context, TESCO can respond to the opportunities and external pressure, thereby growth and sustaining the performance. For instance, within the high competitive industry, the Human resource needs to emphasise on flexibility and agility within the talent management, it permits the company to work with the market changes. The effective HR practices which are mainly aligned with the culture of organization are recognized by the workers and increase the long term performance.
Competitive advantage and resource based view: This focuses on the significance of the unique internal resources, mainly the human capital because these are main drivers within the competitive advantage. In accordance with the RBV, resources of organization should be non-substitutable, rare, valuable and inimitable to offer the sustainable competitive benefits. The HRM is important in leveraging and developing the resources. HRM is involved in retaining, developing and acquiring the talent; this is the main valuable resource in the TESCO (Chams and García-Blandón, 2019). By emphasising on developing the knowledgeable, skilled and motivated workforce, the HRM provide help in developing the resources which are hard for rivals to replicate. For instance, via rigorous process of selection, targeted recruitment and on-going professional develop, the HR need to make sure about the organisation can have the unique talent to boost performance and innovation.
The HRM also provide help in developing the core competencies, these are collective capable to offer the competitive edge. Via the leadership development, training and knowledgeable management, the skilled HR may boost the expertise and skills of workers, this turns them in the core competencies which are major in the organizational success. For instance, TESCO is known for the excellent consumer service which may achieve via culture based on consumer oriented, personalise training programs and initiates related to the employment empowerment, these all are developed by HRM. RBV showcases the significance of innovation and continuous learning as the effective source of effective competitive advantage (Holbeche, 2022). The HRM provides the support by developing the environment which can increase creativity, knowledge sharing and experimentation. Providing the opportunities, learning culture for recognising, skill development. The HRM helps TESCO to adapt the different and changing market and stay ahead from the rivals. To develop the rivalry advantage, the HRM need to make sure that the human resources of organization need to be valuable, tough to imitate and rare. It may be gained via the effective combination of the HR practices, emphasis on the employee development and organizational culture.
The Human resource management is essential in developing the organizational success, this effectively aligning with the performance of workers with objectives of business. The major tools which HRM utilises to enhance and assess the contribution are key performance indicators and benchmarking, these are added by management system of robust performance. The effective tool permits the HR to measure the efficiency, make sure that the HR strategies must be contribute to the growth and overall performance and development areas.
Role of benchmarking within the HR management:
The benchmarking includes comparing the performance metrics, HR practices and results with the competitors, industry leaders. The procedure helpful for organization to set out the realistic performance, understand the best practices and expose the areas in which they may boost the operations and HR strategies. The benchmarking permits the HR to understand the best practices within the industry; this may be implemented and adapted in the TESCO. For illustration, by benchmarking alongside the organizations are mainly known for the programs for the employee engagement (ARMSTRONG 2011). HR may learn relayed to the effective engagement strategies which can include recognition programs, on-going feedback mechanism and opportunities for the career development.
By implementing the different practices which can increase the retention, employee satisfaction and higher productivity. Via the benchmarking, the HR may set out the performance standards which are achievable and ambitious. The standards can be serving as the benchmark with the HR performance. For example, the HR may benchmark the metrics of recruitment which can include cost per hire, time to hire and hire quality with the industry standards. This is helpful for HR to make sure about the recruitment procedures which are effective and efficient. The effective benchmarking can motivate the on-going culture development within HR. Regularly comparing the effective performance which is against the leaders of industry. The HR may classify the gaps within the practices and have the proactive steps which can resolve them.
Importance of the key performance indicators:
The KPIS are mainly measurable of values which focus on how the HR effectively gaining the key business objectives. The Key performance indicators offer the clear and effective framework for analysing the impacts on the organizational performance. KPIs helpful in making sure about the effective HR strategies need to be aligned with the overall goals of TESCO. For instance, if one business objective developing the consumer satisfaction, the HR can track out the KPIs are related to the training and development of the workers and consumer service performance.
Key performance indicators offer the quantifiable measure of the effectiveness of HR in different areas like as employee engagement, recruitment and retention (CAMPBELL et al, 2011). For example, the KPIs like as absenteeism rate, turnover rate and scores of employee satisfaction offer insight into the effective health of TESCO’s workforce. The regular monitoring the KPIS, the human resource may apply the potential issues, understand potential issues and identify the trends to boost the performance. The utilisation of KPIs permits the HR to develop data driven decisions, created informed decisions. For instance, if the KPI highlight the high rates of turnover between the novel hires, the HR may evaluate the data to understand root causes, this can include mismatched expectations, processes of poor on boarding to boost the stability of organization and decrease turnover.
HR contribution and performance management systems: These are the tools which can be utilised by HR to improve and assess the employee performance. The effective system may involve processes for providing feedback, setting goals, increasing employee capabilities and conducting the reviews of performance. The system of performance management helpful for HR in setting the clear and effective performance expectations for the workers, this required to align with the efforts and organizational goals. Via the utilisation of the goal setting framework which can include SMART objectives, the HR can make sure that the workers can understand and know what expectations are from them and their contribution to the TESCO’s success. By setting the clear expectations, this helpful for workers to stay motivated and focused, this leads to boost the performance. The on-going feedback is essential within the performance management system (KEW et al, 2013).
The HR focuses on the on-going feedback sessions among the employees and managers, identify the development areas and permits for the timely recognition for the achievements. Regular communication can increase the culture of development and openness, where the workers majorly encourage contributing in the organizational goals and boost the performance. The performance management system is important within the employee development. Understanding the performance issues and skill gaps, the HR may design development programs and targeted training; these are helpful in increasing the worker’s capabilities. For example, if the effective performance review discloses that the workers required to develop the leadership skills, at this time HR may offer the access to mentorship opportunities and training programs.
Conclusion
Conclusively, it states that the HRM strategy is one of the effective procedures; this is defined as the present human resources and future HRM. The effective HRM strategies are important and helpful in developing the changes within the organization. The effective HRM strategies can be helpful in achieving the targeted goals within the organization. TESCO’s human resource management is focusing on adapting the political climate and working with the changes. Economic environment of the TESCO may put influence the effective HRM practices. Various economic conditions related to the business growth which needs to be focused by the HR department of TESCO. The technological factors may influenced by the various HR strategies through how the recruitment training and performance management can be managed. The external economy and social conditions may boost the HR strategies which mainly based on the recruitment and retention. Globalisation in the TESCO has been increased the effective operations in different countries. HR required focusing on the labour market, legal system and organizational culture. The workforce diversity is one of the contemporary trends in the TESCO. This may implement the various policies; these are majorly based on inclusive workplace. The emerging technology within the regular changing market demand plays an effective role in staying updated about the trends. All these aspects are extensively explored within Unit 44: Strategic Human Resource Management to provide a comprehensive understanding of how HR strategies align with dynamic business needs.
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