Human resource management is a strategic approach that is used by business organization to manage workforce of organization effectively. Effective utilization of workforce can help the organization to gain competitive advantage in marketplace. Range of strategies and approaches are used by human resource department for effective utilization of workforce to gain maximum productivity and profitability. This report will be analysing effectiveness of humanresource management in Tesco Public Limited Company(Nguyen, Yandi, and Mahaputra, 2020). Tesco PLC is one of the largest grocery stores in United Kingdom. Tesco PLC was established in year 1919 by Jack Cohen in Hackney, London in the United Kingdom. This study will be evaluating purpose and various functions of HRM for company. Strengths and weaknesses of recruitment and selection approaches that are used by HRM in organization will be evaluated in report. Benefits of HRM practices will be evaluated for employees and employer. Effectiveness of HRM approaches also will be analysed in increasing productivity and profitability of organization in market place. Impact of employee relation will be analysed on the decision making process of HR department of company. Along with this impact of employment legislation will be evaluated on the decision making process of human resource department of organization. Importance of human resource management practices will be analysed in work-related context of organization.
Purpose of Human Resource Management
Purpose of human resource management in organization to manage human resources of company in the way to generate maximum productivity and profitability in marketplace. There are different purposes of human resource management in workplace. For example recruiting employees to develop workforce of company, manage payrolls, develop code of conduct for workplace of company, design and update policies for the workplace of company to maintain effective operations, maintain employee records and perform performance and benefit analysis for organization. All these operations are performed by the human resource department to effectively manage the workforce of company.
Functions of HRM
There are different functions are performed by human resource management of company to effectively manage the workforce of an organization. Functions of human resource management are also focused to improve the effectiveness of workforce of company. Main functions of human resource management in organization are-
Human Resource Planning
Human resource planning is directly related to the management of existing workforce of company(Bombiak, and Marciniuk-Kluska, 2019). In this function, different strategies and processes are used by human resource of company to design and plan workforce which is based on future goals, mission and vision of organization. In this process, future goals are analyzed with existing workforce of company to develop effective workforce to meet future goals effectively.
Recruitment and Selection
Recruitment and selection function is important to improve the effectiveness of workforce of company. Recruitment and selection are two different processes that are used by the company to develop effective workforce to meet the organizational goals within time limit. Recruitment process is focused to attract suitable and eligible candidates to apply for vacancies. Recruitment process can be explained as process of enlisting candidates for the open post in organization. Selection process in human resource management can be explained as process of selecting right candidate for particular position in company. Effectiveness of the selection process is mainly dependent on the recruitment process of company. In post-Covid situation, this is most important for the business organization to develop effective recruitment and selection practices to develop existing workforce.
Training and Development
Training and development process is used by the human resource management of company to improve skills of employees according to change in current market situation. This is important for organization to regularly focus on the changes in global market and technology to adopt effective changes in the organizational approach. As per change in market situation and change in technology, employees are provided with effective training to retain the performance of organization in target market. Training and development program of organization is also focused on the performance of employees. As per the performance details of employees in workplace, effective training and development programs are designed by the human resource management of organization(Kasekende, Nasiima, and Otengei, 2020). Main purpose of human resource management to improve the effectiveness of workforce to meet the performance and organizational goals of company. As per the current standards that are developed in the workplace of company according to post Covid situation, this is most important for organization to design training and development sessions to meet performance standard in internal operations.
Performance management is considered one of the most effective operations that is performed by human resource management in business organization. Performance management process is based on the skills and knowledge development of employees in organization. In the performance management process, human resource management of organization targets the business goals and operations goals to develop performance of employees accordingly. In performance development plan, initially, performance of employees is tracked within the workplace of company to assess their skills, knowledge and experience. This process can help the human resource department to find area of development for each employee in organization. As per the performance assessment details, different approaches are used by the human resource management of organization to improve performance of employees as per the performance and business goals. In the economic situation, business organization are facing issues in business operations. In this case, this is important for company to keep performance of all employees aligned to generate maximum productivity in marketplace.
Recruitment and selection approaches are most crucial for workforce planning of company. Recruitment and selection processes that are performed by the human resource management of organization are directly related to the performance, productivity and profitability in marketplace. This is important to analyses effectiveness and challenges of different recruitment & selection process to develop effective workforce for company. There are two most common recruitment and selection approaches are used by human resource department of company. Internal Recruitment and External Recruitment approaches are mainly preferred by the HRM of company to plan and develop workforce of organization.
Internal Recruitment and Selection Approach
Internal recruitment and selection approach is most common approach that is used by the human resource department to fulfil immediate need of employee in company. As per the name of this approach, in this approach existing employees of organization are considered to fill open post or vacancy(Dajnoki, Szabados, and Bába, 2018). In this process, promotion, transfer, and employee referral processes are used by HRM. All these processes are effective to meet the workforce needs of organization on short notice. This approaches can help HRM of company to fill open post in company on immediate basis.
Promotion- Promotion is most effective process of internal recruitment approach. In this process, performance data, knowledge and experience of employees is analyzed by the human resource department of company to select one of employee from workforce to fill open position at higher rank. This approach helps HRM of company to recruit a person who is well aware of vision, mission and operational processes of company.
Transfer- Transfer is considered as another effective internal recruitment approach that is used by the human resource management of organization to fill open post or vacancy in workforce. In process of transfer, person in similar position who work at other location of organization is transferred to fill vacant position.Transfer process is also common approach in the internal recruitment process of company.
Employee Referral- Employee referral process is also considered an effective process to recruit effective candidate for vacant position in company(Smith, Rohr, and Panton, 2018). In the employee referral process, candidates that are suggested by existing employees of company are considered by HRM for recruitment and selection process. This process is effective to select right candidate at short notice.
Strengths of Internal Recruitment Approach
The major strengths of internal recruitment approach for HRM and Organization are- Time required in the internal recruitment process is very low as compared to external recruitment process for company. This process can help human resource department of company to fill vacant position in company within short time. Internal recruitment process is also effective to reduce the time in on-boarding process. There is very less time is required in the internal recruitment process. Selected employees are already aware of organization processes and operations. So, time required in internal recruitment process is negligible. Internal recruitment approach is cost-effective for the organization.Requirement of resources is very low in the internal recruitment process. No additional capital needs to be invested in the internal recruitment process. This can reduce the cost of recruitment for company. In internal recruitment process, string employee relation can be developed with workforce and motivating environment can be developed in the workforce of company.
Weaknesses of Internal Recruitment Approach
Main weaknesses that are analyzed in internal recruitment process are- Internal recruitment process cannot be considered an effective approach for long-term business orientation because this approach leaves gaps in the existing workforce of company. Some cultural issues can be developed due to internal recruitment process(Nabi, Ahmed, and Rahman, 2017). This cultural issues can lead to major or minor conflicts in workplace. Negative workplace environment is also considered a negative impact of internal recruitment approach.
External recruitment is considered as more organized way of recruitment process. In the external recruitment process, candidates apart from the existing workforce of company are considered for vacant position in company. In the external recruitment process, specific processes are used by human resource management of company to fill open position in company. Well, organized recruitment and selection plan is developed and considered by the human resource of company to fulfil need of manpower for organization. Approaches like newspaper or Magazine Advertisement, Pool Campus Drive and Recruitment Agencies or Consultants are used by HRM of company to select effective candidates for vacant post in company.
Newspaper or Magazine Advertisement- This process is considered a traditional process to attract effective and suitable candidates for recruitment process. In this approach, detailed newspaper article or advertisement is designed and published in the newspaper or magazine to attract large number of eligible candidate to apply for open position in company. This approach is considered a traditional approach but it is still effective for recruitment selection process for the business organization.
Pool Campus Drive- Pool campus drive is considered as most effective approach that can be used by the human resource management of organization to recruit effective and suitable employees for workforce(Zhao, and Zhou, 2021). In the pool campus drive, students of different educational institutes are considered for the recruitment process. In this approach fresh talent of educational institutes is considered by the organization to select eligible candidates. In this process, different level of recruitment and selection are performed by the organization to fill vacant position in workforce.
Recruitment Agencies or Consultants- In current time, third party recruitment is considered an effective approach to select or hire suitable candidates for workforce of organization. In this approach, HRM of company hires effective and famous recruitment agency to hire suitable candidate for open position in workforce of company. In this process, these third party organizations work on their database to find eligible candidates. This approach can help the third partyto find suitable candidates for Tesco PLC. This is how HRM can hire third-party organization to develop effective workforce.
Benefits of HRM Practices for Employees and Employer
There are different practices are used by the human resource department of company to meet workforce related needs of company. Major practices that are performed by the human resource management of organization are- Design workplace culture, Training and development, Performance Management.
Design Workplace Culture
This is main purpose of human resource in business organization. This practice is related to developing effective environment in the workplace of company. In this practice, different processes and approaches are used by the human resource of organization to develop effective and positive environment in the workplace. This practice is effective for both employees and employer of company.
Benefits for Employees- There are different benefits of Effective work culture for employees. Effective culture is important to develop positive environment in workplace. This positive environment can help the employees to reduce stress level and improve their performance.
Benefits for Employer- Effective workplace culture is important to improve the performance of employees in different routine operations(Saputro, and Nawangsari, 2021). This improved performance of employees can help organization to meet business goals effectively. It can help to improve profitability and performance of organization.
Training and Development
Training and development are one of most crucial practice of human resource management. This approach is focused on the skill development and knowledge development of employees in organization. Training and development practices that are used by the human resource management of organization are based on the business and operational needs. These training and development sessions are designed by the HRM of company along with assistance of operations department.
Benefits for Employees- Training and development are most effective HRM practice for employees. It is important for their skill development and growth in professional career. Effective training sessions and development sessions based on latest development in marketplace can improve the employability of employees in corporate world.
Benefits for Employer- This is the main purpose of training and development practice is to improve the effectiveness of workforce of company. If the workforce is effective and trained with latest changes in technology and operations then it can improve the profitability of organization in marketplace. This is how training and development practice is important to improve operational profit of company.
Performance management practice can be considered as approach that is used by HRM of company to keep performance of employees as per the business goals of company in target market. In this approach, relevant assessment processes are used by HRM of company to assess skill, knowledge and experience of employees(Das, and Kodwani, 2018). Based on this assessment result, effective changes and goal oriented development programs are used by HRM to improve performance of employees.
Benefits for Employees- This practice is effective for employees to get aligned with latest approaches in marketplace. It is effective to improve their employability and professional career.
Benefits for Employer- performance management practice is effective to improve the performance of organization and employees as per the operational needs. This practice is effective to improve the profitability and revenue of company.
Practices that are performed by the human resource management of organization are designed to improve overall performance in marketplace. Main focus of HRM practices is to improve effectiveness of workforce of company. For example, designing culture of organization is basic need to provide better work conditions to the employees. Impact of work culture and work environment is directly on the performance of employees in company(Pucik, Evans, and Björkman, 2017). Effective work culture can be designed by the HRM of company to get better performance from employees that is important to improve productivity and profitability in marketplace. Training & development practice and Performance management practices are directly related to the performance of employees in organization. Overall performance of Tesco PLC is dependent on performance of workforce in organization. These practices areeffective to improve performance and productivity of organization in market place.
Employee relation in business organization in terms of human resource management can be explained as processes and efforts that are made by human resource department to develop effective relationship with employees of company. There are different practices are performed by the human resource management of company to develop effective relationship with company. Employee relation is major concern of business organization to maintain their performance in business operations(Armstrong and Taylor, 2020). Effective employee relationship is also important to meet long term business goals of company. In different ways, effective and positive relationship with employees can help organization to maintain stability in business operations. Employee relationship aspect must be considered by the human resource management in the decision making process. This is important for the human resource management of organization to consider employee relation perspective in the decision-making process related to policies and workplace operations of company. By considering employee relation perspective in decision making process HRM can maintain satisfaction level of employees in organization can it can help them to maintain stability in business operations and retain experienced and skilled employees for long term. This is how HRM of company needs to consider employee relations perspective in the decision making process to maintain performance and profitability of organization in target market.
Employment legislations are designed by the government and legal body of company. All the business laws developed by the legal body or government body are designed to limit the operations of organization and protect rights of employees and customers. These legislations are designed by the organization to regulate the operations. Major employment legislations that must be considered by the business organizations are- Data Protection Act 2018, Equality Act 2010, National Minimum Wage Act 1998 and Health and Safety at Work Etc. Act 1974.
Data Protection Act 2018
Data protection in 2018 is focused to protect personal and social information of employees and customer in organization. Main purpose of this legislation is to regulate the process or approach that is used by the organization to use information of customers and employees in business operations. This is important for the human resource management of company to consider the Data Protection act 2018 to design policy to use employee and customer data for business operations.
Equality Act 2010
Equality act 2010 is designed to protect employees and customers against different type of discrimination. Equality Act 2010 must be considered by the HRM of company to protect their employees from discrimination in workplace(Hani? and Jevti?, 2020). This act must be considered by the human resource management of company to protect employees from discrimination based on race, age, gender, religion, sexual orientation and personal views. This act is considered by the HRM of Tesco PLC to protect their employees from discriminating activity in workplace.
National Minimum Wage Act 1998
This act is considered by the human resource of company in management of payrolls of employees. This act can regulate how employees of organization can be paid as per the criteria that are designed by the government. This cat must be considered by the organization to manage payrolls effectively.
Health and Safety at Work Etc. Act 1974
Health and Safety at Work etc. Act 1974 is designed to ensure the safety and security of employees within the workplace of company. In this process, different guidelines are provided to the design workplace for employees. This act must be considered by the HRM of company to design the workplace structure of company.
Practices that are performed by the human resource management of organization are focused to improve performance of Tesco PLC in marketplace. Practices that are performed by HRM of company are focused to develop effective workforce for organization. For example, in recruitment and selection process Job Description, person specification and Job Offer Letter are designed by the HRM to perform workforce development process effectively(Kehoe and Collins, 2017). These activities can help organization to meet workforce-related demands. Training and development practices are performed by HRM to improve the performance of employees in workplace to improve performance of organization in target market. Performance Development process can be used by the organization to design performance standard to improve productivity and profitability of Tesco PLC in marketplace.
This report is concluding importance of human resource management for Tesco PLC. Different aspects related to HRM has been analysed in report. Functions and purpose of HRM have been evaluated in report to develop understanding of HRM in company. Various strengths and weaknesses of different recruitment and selection approaches have been studied in the report. Benefits of Human Resource Management has been analysed for Employee, employer and productivity of organization in target market. Impact of employment legislation and employment relation has been studied on the decision-making process of HRM. Importance of HRM practices has been analysed for work-related context of Tesco PLC.
Books and Journals
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management practice.
Bombiak, E. and Marciniuk-Kluska, A., 2019. Socially responsible human resource management as a concept of fostering sustainable organization-building: Experiences of young Polish companies. Sustainability. 11(4). p.1044.
Dajnoki, K., Szabados, G.N. and Bába, É.B., 2018. A case study on human resource management practice of a sport organization. International Journal of Engineering and Management Sciences. 3(4). pp.410-425.
Das, R. and Kodwani, A.D., 2018. Strategic human resource management: a power based critique. Benchmarking: An International Journal.
Hani?, A. and Jevti?, D., 2020. Human Resource Management Between Economy and Ethics–Research of Serbia and Bosnia and Hercegovina.
Kasekende, F., Nasiima, S. and Otengei, S.O., 2020. Strategic human resource practices, emotional exhaustion and OCB: the mediator role of person-organization fit. Journal of Organizational Effectiveness: People and Performance.
Kehoe, R.R. and Collins, C.J., 2017. Human resource management and unit performance in knowledge-intensive work. Journal of Applied Psychology. 102(8). p.1222.
Nabi, M.N., Ahmed, A.A.T. and Rahman, M.S., 2017. The empirical study on human resource management practices with special reference to job satisfaction and employee turnover at Investment Corporation of Bangladesh. Human Resource Management Research. 7(1). pp.54-64.
Nguyen, P.T., Yandi, A. and Mahaputra, M.R., 2020. Factors That Influence Employee Performance: Motivation, Leadership, Environment, Culture Organization, Work Achievement, Competence And Compensation (A Study Of Human Resource Management Literature Studies). Dinasti International Journal of Digital Business Management. 1(4). pp.645-662.
Pucik, V., Evans, P. and Björkman, I., 2017. The global challenge: International human resource management.
Saputro, A. and Nawangsari, L.C., 2021. The Effect of Green Human Resource Management on Organization Citizenship Behaviour for Environment (OCBE) and Its Implications on Employee Performance at Pt Andalan Bakti Niaga. European Journal of Business and Management Research. 6(1). pp.174-181.
Smith, S.S., Rohr, S.L. and Panton, R.N., 2018. Human resource management and ethical challenges: Building a culture for organization success. International Journal of Public Leadership.
Zhao, H. and Zhou, Q., 2021. Socially responsible human resource management and hotel employee organizational citizenship behavior for the environment: A social cognitive perspective. International Journal of Hospitality Management. 95. p.102749.
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