Summary:

Strategic Human Resource Management is very much important to an organisation. In this report researcher have done various research and analysis on the topic SHRM with the example of an organisation named Tesco one of the leading retail industries in UK. Various activities of SHRM and its effect on the performance of the company are critically analysed. Various HR policies which are currently in active in Tesco have been analysed. The need for such policies in an organisation like Tesco is explained and finally the operational structure of Tesco which is operational is discussed.

Introduction:
The importance of the strategic human resource management in achieving the objectives of any business is described in this report. Strategic planning and the impact of it to the business operation consider the organisation Tesco is detailed. As Tesco is global retailer unit, the facts regarding the impact of effective management of human resources and also how good the management of business in Tesco is are discussed. The integration of HR into every plan of the business operation is one of the strategic plans for acquiring competitive advantage employed by Tesco and how they are successful by such integration. The requirement for an effective HRM is briefed in this report. Human Resource Management: For past 25 years and more, Human Resource Management or HRM is the most powerful and effective idea in the area of managing a business. It is also the influential tool for achieving competitive advantages and also the variable supporting it are influenced by how well the employees are manages in a business. HRM is the part of many functions in an organisation where it deals with the issues related with people like benefits, rewards, recruitment, training etc and it is also referred to the most strategic way of running the business by managing various factors like management of people, managing the culture in the workplace and finally the working environment. Tesco: Company Profile: Tesco is one of the greatest brands in the retailer sector which have its expansion to the global market and it has dominated the British retail sector. The basic start of Tesco is from food business, and then it gradually developed and expanded the scope of the business to a wide range by involving in the area of clothing, retailing services, consumer electronics, and telecom services. Tesco expanded to around 207 stores worldwide because of their effective strategic operation and management efficiencies. History: It was in the year 1930 a small self serviced supermarket was opened in USA and it was in the year 1940 the introduction of Tesco to the British Markets and by the year 2003 it

has become one of the familiar brands in the retailer sector. In the year of 1985 it opened the 100th store in UK and more 29 stores were announced in the year 1987. The petrol filling stations become successful in Tesco by the year 1991 and earned the name of biggest petrol retailer in UK. As a result of more customers focus business it announced the first loyalty card in the year 1995. From there till now Tesco is growing in many areas and the current facts of Tesco is it has 5,380 stores worldwide with 492,714 staffs and 2,715 stores in UK with 293,676 staffs employing in the process of business.

Task 1:
SHRM (Strategic Human Resource Management): When the human resource strategy is very effective in an organisation then such organisation will have competitive advantage in the business world. The employees are the vital part of any business organisation and are the same for Tesco, for maximising the employee strength, it is important they are managed very efficiently and through intelligence means. The organisational structure of Tesco is better when there is participation from each employee and so in Tesco the employees of all levels are permitted for the decision making process related to the work, further enhancement of organisational performance is achieved with this step. The development side for the employees on various aspects depends on the HR managers, vision and objective of the organisation Tesco. From tradition it is clear that the Human Resource Management should be working efficiently for achieving the organisational objectives (i.e.) recruiting and managing efficient employees. Responsibilities: The person responsible for deciding on strategic HRM issues should be an able and efficient with necessary managerial skills sets. The performance of the organisation depends widely on this individual. In Tesco, the HR is separate department with a group of employees working particularly for gaining competitive advantage through employee satisfaction principle. The team is responsible for maintaining the competitive advantage at all times on the market, for this all necessary steps are taken which assures that Tesco stands out from other competitors. People in the team of HR are carefully selected through a vigorous recruitment stages where they are requires to prove that they got will to drive the HR processes without harming the principles of Tesco. In Tesco, there are different operations or functional areas which act as the pillar for running the business efficiently. It is the responsibility of the HR team to make sure the HRM functions is running efficiently and the supporting elements to the business strategy is always active, which will enable to attain business initiatives and HRM will be responsible for the Tasks that results from business strategies. Activities: The workforces in Tesco are trained with all up to date skills, so that they will produce such skills in the work which will have an impact on the organisational performance, thus by maintaining the competitiveness of Tesco on the market. The legislation are never in

line with the organisational policies in many organisation, but it is responsibility of the HR manager to look upon on this issue and make sure the business policy and legislation are maintain in line with each other. The recruitment procedures are designed and maintained for each and every recruitment process. Improvisation of compensation strategies which will attract the employs to work in Tesco for longer period of time and the outcomes from such experienced staffs add a great value to the organisation. The HRMs contribution is measured and it is important for the HR team to pass updated information across all employees and also managing labour cost is other huge responsibilities of HR team. Achieving Organisational Performance: The employees in Tesco are treated as champions, which led way to many positive outcomes for the organisations. Many empirical studies have clearly indicated the effect of HRM activities in the organisational performance. HRM is the business functions which are responsible for moulding the employees as the primary contributors to the firm and also for achieving the organisational objectives of Tesco. Recruitment is a part of HRM where it adds to the employee strength, but it is not the only activity. Human Resource strategies are planned and executed in line with the powerful marketing strategies for attaining the organisational performance of Tesco and it is being successful in the past year in business operations. Tesco as mentioned earlier is a globally established organisation and hence it is necessary that Tesco follows international business strategies and strategic planning of HRM. The involvement from the HR team is increased as the business went into global markets because of the diversified workforce and so they should workout strategic planning out of the box which satisfies employees of all culture. Hence in Tesco which is having an effective HR strategy will gain competitive advantage even the business has spread to the global markets and suitable planning from the administration side supports the process of achieving globalised operational performance. The market and business are always undependable and fluctuating and it is important for the HR teams in Tesco keep on working new strategies and plans for coping up with the changes in future.

Task 2:
Human Resource Planning: The employees have their own thoughts, ideas and feelings, among many resources available for an organisation people are the most differentiated resource. The organisation has their own objectives to be met, so an approach is required where both these factors are taken care of simultaneously by the term HRM. The thoughts, requirements and aspirations differ from people to people which is well understood by HRM and hence the appraisal process is launched which identifies such individuals and appropriate opportunity is created for them to grow both internally and externally of the organisation. The internal growth refers to the promotions, bonus etc and the external growth refers to the opportunity provided to learn through which the skill set of employees are developed.

Training: The external growth (i.e.) course are provided, so that the individuals can develop their skills, knowledge and behaviour which help the organisation in achieving the objectives. In order to plan the training and development, analysis is a necessary thing to be done. Analysing the opportunities available and the level of experience that is necessary for training and development will helps to deliver a plan. According to the analysis, training and development plan is generated which gives a picture of solving the issues in practically feasible and possible steps. The training program present in Tesco is divided into 3 programmes which are Optional programme, developmental programmes, and specialised programmes. Factors affecting HRM Planning: Business factors are the factors that influence the operation of a business in an organisation and these factors have a direct impact over the HR planning. The change in business, sudden growth or fall in business, expenditure control, business operation locations, a change in nature of work, technology implications and increasing competitiveness are the major business factors that affects the strategic HR planning. The factors which influences the business both internally and externally is referred to as business environments which will make variation in the volume of mix of production which in turn influences the supply of human resources. Requirements: Globalisation has changes the entire view of the business in every industry, as a result Tesco who is well established globally employed diversified working culture where people with different cultures work under the same roof. Since the business is developing as the years passes the number of staffs will generally grow without which running a business is impossible with Tesco. The human resource requirements are vast and progressing as a part of business development process. Human Resource Plan: In Tesco strategic planning remains the key to success of achieving operational objectives of the organisation. Planning is done so that the employees who are recruited become the assets of the organisations and also training and development are provided to employees to retain them in the business for a very long period of time. The objective HRP for Tesco is 1.Recruitment, 2.Selection, and 3.Retention. The recruitment stage in Tesco is very challenging which ensures the employees working in Tesco are of high calibre and skilled. Once the recruitment procedures are completed the candidates then go through the selection process and get selected. Once they get selected it is responsibility of the HR department to retain such potential employees by providing them training and development. Such retained employees who are of high potential and experience increases the value of the organisation and enables them to achieve strategic objectives.

Task 3:
Human Resource Management Policies: A policy is defined as the pre-meditated set of action which is in place as guide towards objectives and strategies which have been approved. Every organisation will have a mission and vision to which the work is focused on, as such Tesco also have its own vision and for the support policies and procedures are developed. The company evolution will be setting the strategic objectives as mission; policies are developed for the support of mission, and the procedures are in place which guides the way the policies should be carried out. The policies help in shaping the corporate culture. Tesco as an international organisation is mandatory in following the policies and legislations. International sanctions and trade restrictions apply to Tesco in its global development. In the export of equipment and technology, Tesco must comply with variety of international laws. Policies are developed to monitor whether the organisation comply with laws and regulations for the international contract processing. Tesco follows the Companys Disclosure Policy where there are set of people assigned with the task of communication to the public media, other than the team member no one have rights to disclose any matter related to Tesco in public or private. It has a comprehensive policy in addition to getting signature in the undertaking of confidentiality to the company which specifies the way the employee should treat confidential information. During the time of recruitment it follows equal opportunities policy where all are treated same without any discrimination of age, sex, caste, etc. Tesco maintains privacy policy where it collects all the information from an employee but never reveal to any third person, the act is Data Protection Act. Policies related health and safety of the employees is given top priority in Tesco. Industry standards are set high in the case of health and safety and Tesco follows many policies which make sure the health and safety laws are complied. It is the duty of each employee to comply with the health and safety laws. Awareness is created among the employees on how the health and safety policy is applicable to individuals. Smoking policy is in place, where the employees or customers are not allowed to smoke in any premises of the store other the designated smoking area. This policy is strictly followed by Tesco in every store, because it is related to health and safety laws. Disciplinary policy is other type of policy where the employees must have a good behaviour when customer service, handling money, and the uniform is mandatory for every employee. The training and development policies are in place for attracting the employees to continue in the job who will add very good value to the organisation. In the policy various factors are discussed and put into order so that every employee follows that. The main goal of this policy is to develop skilled individuals with the process of continuous learning programme where the skill sets will enhance the performance of the organisation to a higher level. Environmental Policy is also given importance, because the customer satisfaction

depends on how well the Tesco contribute to the environment. Environmental standards and procedures should be made aware to all employees and they must follow it at all times. The one unique policy of Tesco for reporting issues of fraudulent activities is named as whistleblower hotline policy, and the reports are made through the phone to the Audit Committee those are the people at higher level of the management, so that necessary steps are followed very quickly. The identity of the individual providing such information is kept confidential.

Task 4:
Operational Structure: The entire operational structure is sub divided into small operations where the functionality differs from one another but each functional area depends on one another. The two classifications are personnel operations and group personnel operations, again the group personnel is formed three functions people, process and systems. The operational personnel teams are mainly focused in the head office, where they are the people responsible for operations related to management, accounts, company legal centre, etc. The personnel operations team ensures the business goals are achieved by providing their employees with policies, processes and leadership. The three functional areas form the group personnel operations which are people, processes, and systems. People or employee in Tesco are always given opportunity to grow within the organisation, this will enhance the organisations performance. In Tesco for the development of heir employee into the future leaders they implemented a project named The Academy, it is mainly launched to spot the talented people and give them training and development which enhances the skills of such individual and the organisation gain advantage from such individuals and also the individual himself is developing. Group leadership programmes in effective in Tesco which are designed and maintained by The Academy. Processes or personnel services support the individual in their process of development. Learning through shared knowledge is developed in individuals by the processes and also it support for their success. Communication of various business areas to all members of staff, for e.g.: Tesco has a Benefits Team in working who will communicate the wide range of benefits available in Tesco for their employees. Reward agenda are carried across UK and to international market by the reward team. The main motive of this team is to improving the reward policies and schemes and also to processes these rewards to all roles starting from the shop floor to the management. In Tesco an organisation design team is in operation who works on providing the consultancy support for applying any modification in the structures and jobs both national and international. One set of team who listens to the suggestions and opinion from the employees and necessary policies are designed and developed, practical tools and supports for managing a group of people in Tesco local and

globally. The third classification is the Personnel Systems where the main aim is to form a strategy which is global in nature, and the strategy is between the people who were owners of the process and the functions of information technology. Impact of culture: Tesco has establishes its business globally, and hence if we had a look at the employees they are very much diverse in nature. The culture of Tesco is equal opportunities where their staffs are treated with respect; this will make sure that the customer will be treated the same way as the company treats the employee. Customers of Tesco are not forced or pushed to come back for shopping, it is because of the satisfaction they are getting from their last purchase. So the culture of the treating the employee with respect will influence the strategic HRM, because the culture of Tesco deals with the human resource of the organisation and hence HRM will have its implications from the culture of Tesco. The effect of Human Resource Management on Tesco operational performance is kept monitored at all time which will enable them to make necessary adjustments according to the situations. In Tesco as like other business the financial year is entirely divided into 4 quarter and in each quarter various reports are generated which can be analysed to understand the level of impact to the organisations performance by the HRM. Continued monitoring is enabling because there are four quarter and in a year four reports are generated. Objective and Recommendations: According to researcher understanding, the cost effective, good quality, quick, flexible and dependable services should be offered to the customers at all times. Strategic HRM can be further developed by implementing more rewarding policies and also by providing opportunities for very quick growth to every individual, this will also ensure more opportunities for graduates and more jobs in the market which will boost the economy as well.

Conclusion:
Tesco is one of the many organisations which has benefitted from the usage of strategic HRM practices. The human resource functions are in operations which are aligned with the strategic objectives, so this will make sure the operations SHRM never lose focus on the primary objective. The combination effect of SHRM and Tescos participative approach enabled the organisation to gain competitive advantage over the years. Tesco is the leader in retail market which is achieved by implementing their low cost strategies in parallel with strategic human resource management. The strategic idea of involving the employees in decision making process, enabled Tesco to gain high morale, employee satisfaction is achieved, this will ensure Tesco that the when employees are satisfied, then they will work in the way of making the customer satisfactory with their shopping. In future the focus of Tesco should be on various activities of SHRM which can be developed by research for maintaining the growth in the organisation thus by gaining competitive advantage.

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