Unit 3: Management of Human Resources
INTRODUCTION
Human resource management (HRM) is the practive of the managing, deploying, hiring and recruiting an organisation’s employees. The HRM emphasise on the investing in employees, managing all factors of staffing, assuring their safety, from hiring to development and compensation. The HRM staffs also enforce procedures and policies to help ensure worker’s safety. The team of HR manager adhere to state and federal laws which can be work to secure private information of workers. The organisation utilises HRM to invest in workers, boost employee performance, job satisfaction. The report will be based on the TESCO; this is British general merchandise and multinational grocery retailer (TESCO, 2024). This has been headquartered in the United Kingdom and head offices in the Welwyn Garden city, England. The report will shed light on main areas of HRM and contribution to creating the sustainable performance. Moreover, it will delve into creating workforce action plan which addresses skills needs and skills gaps.
P1: Explaining the main areas of HRM and their contribution to creating sustainable performance
HRM play an effective role in making sure that the TESCO can be sustainable and competitive within the regular changing landscape. The Human resource management emphasise on the retaining, developing and recruiting workers to remain company innovative and effective. HRM covers the different operational and strategic functions which make sure organisation retains, develops and attracts the right talent. The different functions mainly contribute to the sustainability and long-term effective success of the TESCO.
Talent acquisition and workforce planning: The workforce planning makes sure that the TESCO has the appropriate workers number with the important skills to fulfil demand of business. It includes the forecasting the future demand, assessing the present workforce capabilities and applying the recruitment strategies (The 8 Key Functional Areas of Human Resources Management, 2024). This contributing to the sustainability offers help organisation to resolve the skills shortages via up skilling and recruiting the existing workers. This also makes sure that the organisation ongoing filling the major roles and decreasing the turnover. It also supports the inclusion and diversity via developing problem solving and innovation.
Selection and recruitment: The recruitment includes the attracting and indentifying the major candidates, the selection includes hiring and evaluating the major talent. The organisation utilises the AI developed screening tools, assessment centres and structured interviews (Macke and Genari, 2019). This is contributing to the sustainability, developing the retention via selecting and decreasing the hiring prices. This makes sure ability the employment laws with the compliance and promotes the major opportunities.
Employee training and development: The organisation invests within the programs of training to boost the skills of workers, involving the consumer service development, technical training and leadership development. This boosts the productivity via effectively equipping relevant skills with the workers to adapt to the shifting trends of industry. This also contributes in sustainability via encouraging worker’s motivation and engagement, decreasing the turnover.
Performance management: Tesco’s performance management includes offering feedback to workers, conducting appraisals and setting the effective goals. This mainly involves the ongoing one on one session and KPIS to track the effective progress (Berhil et al, 2020). This mainly develops the accountability and ongoing development among the workers. This lines up with the strategic objectives of Tesco with the individual performance, developing the overall effectiveness.
Data analytics and HR technology: The organisation leverages technology of HR, like as employee engagement platforms, payroll software and AI driven tools of recruitment, to boost decision making and streamline processes. This increased the effectiveness via permits HR teams to emphasise on the initiatives of strategies and automating tasks of administrative. This offers the insights based on data driven to optimise the talent management and workforce planning.
M1: Comparing areas of HRM to create sustainable organisational performance
The different HRM areas contribute to the organisational performance in sustainability within the various manners.
|
HRM function |
Contribution to sustainability |
Comparison to different areas |
|
Talent acquisition and talent management |
This makes sure that TESCO has the appropriate workforce to fulfil the demands of business. This helps in resolving the shortage of skills. |
This is more strategic than the selection and recruitment, as this emphasises on the workforce needs based on long term apart from the quick hiring (Boon et al, 2019). |
|
Selection and recruitment |
This offers help in retain and attract the top talent, making sure that vacancies are developed with the appropriate candidates (Boon et al, 2019). |
The short term and more operational focused as compared to the planning of workforce, this focuses on the gaps in future skills. |
|
Training and development |
This boosts the career growth and employee skills, making sure about the talent pipeline internally. |
This is mainly more proactive than the management of performance, as this develops before arise performance issues. |
P2: Reviewing effects of changing nature of organisation on knowledge and human resources
The increase of automation and AI: The automation and AI are changing the overall process of business, mainly within the employee engagement, performance management and recruitment. The different retailers like TESCO utilises the HR tools powered by AI to develop the employee training, workforce analytics and talent acquisition. The HR professionals need to learn to functions with the tools driven by AI for the predictive analytics, interview scheduling and resume screening. The data literacy is important for creating the decisions based on evidence and interpreting trends of workforce.
Shift towards hybrid and remote work: The pandemic of COVID-19 accelerated the change toward hybrid and remote work models (Anwar and Abdullah, 2021). The different workers focus on the arrangements of the flexible work, demanding the HR teams to focus on the management strategies based on the traditional workforce. The overall HR professionals need to develop the proficiency in the virtual performance management, digital collaboration tools and remote management of team. The work from home policies permits for the employee well being, cyber security should be updated.
Developed focus on the mental health and employee well being: The well being of workers in currently prioritise, along with the organisations recognising the alignment among the productivity and mental health. The TESCO has applied the well being initiatives and programs of mental health to offer support to the workforce. The HR teams need to be effectively trained within the resilience developing strategies, emotional intelligence and first aid mental health.
DEI initiatives (Diversity, equity and inclusion): The companies are focusing on the DEI to develop the inclusive and fair workplaces. The multinational organisation, TESCO effective promotes the initiatives of DEI and embraces the different workforce (Esthi and Setiawan, 2023). The HR professionals should boost the expertise within the workplace equity, bias free recruitment and inclusive practices of hiring. The conflict resolution and cultural competence skills are important for managing the different team.
Evolving employment regulations and laws: The government regular introduce the novel laws of labour related to the data protection, equal pay and workplace discrimination. The teams of HR needs to makes sure about the compliance with the regulations which are ever changing. The HR professionals requires to focus on the regular legal training which can help in be updated relayed to the compliance needs and labour laws. The GDPR compliance and data privacy have been major focused areas within the teams of HR.
The Non traditional and Gig economy work arrangement: The boost of the freelance and gig work contracts challenges within the models of traditional employment. The different companies now hire the project based, part time and temporary based workers. The HR professionals need to understand the legal and contractual factors of the gig work which makes sure about the compliance. The novel strategies for the engaging and managing the non permanent staff should be enhanced.
M2: Examining HRM in relation to the changing nature of the modern business organisation
Technology integration within the HRM: The modern organisations utilise the HR platforms based on cloud, employee queries chat bots and AI for the effective recruitment. The professionals of HR require managing the technology in HR.
Flexible workforces: The need for the contract-based employment, gig work and hybrid work is developing. The HRM needs to boost the novel approaches for the management of workforce which caters the traditional arrangements (Tunggul, 2019).
Agile HR practices: HR structure based on traditional methods is replaced with the developed agile HR practices which focus on the employee empowerment, ongoing learning and adaptability.
D1: Critically evaluating the strengths and weaknesses of HRM in relation to creating the sustainable workforce action plan
Strengths
Technology driven effectiveness: The HR tools powered by AI boosts the effectiveness within the workforce analytics, on boarding and effective hiring, permitting the teams of HR to emphasise on the strategic tasks.
Strategic talent management: The HRM helps to boost the targeted stratagies for recruitment and understand the skills gaps to attract the appropriate talent. The workforce planning makes sure that the TESCO has the effective skilled pipeline of workers.
Weaknesses
Resistance to change: The different HR procedures within the organisations based on traditional methods are mainly slow to effectively adopt the development of technology.
Challenges within the skills enhancements: The workers upskilling to fullfill the demands of developing job need a major time and investment; this might not be effectively feasible.
P3: Creating workforce actions plan which addresses hard to fill vacancies, skills gaps and skills needs
Identifying skills gaps and needs:
The Tesco needs a effective mix of consumer service, digital and technical skills to effective sustain the operations. The developing use of the AI within the consumer service and supply chain management needs up skilling workers within the automation tools and digital literacy. The retail business depends on the effective big data to effectively optimise the inventory and sales. The TESCO needs train workers within the interpretation of data.
Resolving hard to fill vacancies:
Tesco’s certain job roles like as cyber security experts, digital marketing proficiency and logistics coordinators are challenging to fill because of the labour market’s high demand. The organisation will adopt the competitive salary benefits and packages to appeal the major skilled worker (Sharma et al, 2023). The collaboration with the apprenticeship and universities programs to boost the skills in demand among the different graduates.
Recruitment strategies:
The organisation will apply the recruitment tools driven by to develop the candidate selection. The development in the employee branding via encouraging the opportunities for career growth, sustainability and diversity play a major role.
Retention strategies:
In order to boost the employee retention, the Tesco will boost the progression plan for the structured career with the programs of training to the workers up skilling. The organisation will offer the competitive recognition and reward like as non monetary incentives and performance bonuses. Developing the culture of positive workplace via promoting the employee well being, inclusion and diversity.
M3: Devising the strategic workforce action plan for the improving retention and recruitment
In order to line up with the development of retention and recruitment, labour market trends, the strategic workforce of Tesco’s action plan will emphasise on.
Data driven recruitment: By using the labour market analytics to adjust the strategies of hiring and skill shortages, the organisation can boost the data driven recruitment.
Hiring diversity programs: Expanding the efforts of the recruitment to effective underrepresented groups, like as women within the individual who are differently abled and women within the leadership (Noe et al, 2020).
Strategic partnerships: Effectively partnership with the government employment programs and educational institutes to make the talent pipelines.
Retention via EVP (Employee value preposition): By developing the job flexibilities, programs of employee well being and opportunities for the career development to decrease the turnover.
P4: Investigate internal and external factors that affects HRM decision-making to support organizational development
The decisions related HRM are integral to aligning the workforce of the organizations with their strategic objectives. There is wide range of internal and external factors that directly affects the decision-making in relation to HRM that supports the organizational development (Hussain et al, 2023). Internal factors include organizational culture and structure, leadership style, workforce composition etc., while economic climate, legal and regulatory compliance, technological advancement, societal as well as cultural expectations etc., are external factors that directly affects the HRM decision-making of Tesco. Organizational culture is considered as one of the significant internal factor that affects the HRM decision-making. The culture of Tesco is centred on innovation, teamwork, operational excellence and customer’s services which play an immersive role in HRM decision-making. Additionally, leadership style is another important internal element that influences the decision-making of Tesco in relation to HRM. For encouraging the team members in the decision-making, Tesco is emphasis on democratic leadership style. This style directly impacts the HRM decision-making by encouraging innovation, nurturing employee growth and promoting supportive work environment which ultimately positively impacts on its growth and development.
Additionally, workforce composition is another important internal component that directly influence the decisions related to HRM of Tesco. The skills, diversity and size of Tesco’s workforces directly impacts the strategies related to HRM significantly. Selected organization is operating business operation globally so its HRM department is addressing the skill gap by recruiting people with diverse culture and experience. On the other hand, organisational structure is another internal factor that directly impacts HRM decision-making and provide support companies in their growth and development (Whelpley and Perrault, 2021). The organizational structure of chosen organization is decentralised so it helps in shaping the way of HRM is operating.
Apart from this, economic climate is critical external factor that affects the HRM decision-making. During economic downturn, Tesco is emphasis on cost-saving measures such as adjusting compensation or freezing recruitment structure. Technological advancement is also considered as important external factors that directly impacts the potential decisions of organizations in related to HRM. For recruiting skilled employees and tracking their performance, Tesco is emphasis on adopting emerging technologies like HR information system (HRIS). Another external factor is societal and cultural expectations that influence the HRM decision making and organizational growth and development. Selected organization is emphasis on increasing awareness of diversity, mental health and work-life balance which plays an immersive role in HRM decisions.
M4: Discuss internal and external factors to support organizational development
Organizational culture is behaviour, values and beliefs within the company that significantly support the growth and development of Tesco. For example, Tesco is emphasis on creativity and innovation to make the decision related to HRM that prioritise flexible work environment. The leadership style of Tesco is focusing on recruiting skilled and talented employees to promote the culture of excellence. Organizational structure is another internal factor that supports the growth and development by promoting flexibility and faster decision making (Rehman et al, 2023). Apart from this, a societal and cultural expectation is another important external element that directly influences growth and development of Tesco. For example, for development chosen organization can need to adopt employee assistance programme, establish diversity and inclusion initiatives as well as provide flexible working arrangements for diverse employees. For growth and development, companies need to adopt employment laws and regulations from workplace safety protocols to anti-discrimination policies.
D2: Evaluate key factors affecting HRM decision-making to make valid recommendations
To make the effective HRM decisions, the HR manager of Tesco will need to enhance its organizational culture by prioritizing hiring and training the workforces with the strong customer service skills. This will help Tesco in its growth and development by accomplishing desired goals and objectives. During economic growth, the HRM of Tesco will need to focus on scaling the employees in order to meet the increase demand of products and services. These efforts will help in driving the organizational growth and development of Tesco and reinforce its reputation and brand image (Nazish et al, 2023).
CONCLUSION
Conclusively, it states that the Human resource management play a major role within the Tesco, also offers help in developing sustainable performance. This focuses on the recruiting, retaining, training and development to remain the organization forefront in effectiveness and innovation as well. The overall workforce planning ensures that organization has the effective number of wormers with the significant skills to meet the needs. The organization effectively invests within the smooth training programs. This includes the skill development, technical training and development of leadership. Artificial intelligence and Automation are shifting effective to boost the performance within the organization. The COVID-19 pandemic has developed the major change within the retail industry, from traditional working to hybrid working.
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REFERENCES
Books and journals
Anwar, G. and Abdullah, N.N., 2021. The impact of Human resource management practice on Organizational performance. International journal of Engineering, Business and Management (IJEBM), 5.
Berhil, S., Benlahmar, H. and Labani, N., 2020. A review paper on artificial intelligence at the service of human resources management. Indonesian Journal of Electrical Engineering and Computer Science, 18(1), pp.32-40.
Boon, C., Den Hartog, D.N. and Lepak, D.P., 2019. A systematic review of human resource management systems and their measurement. Journal of management, 45(6), pp.2498-2537.
Esthi, R.B. and Setiawan, I., 2023. Green human resources management of the small and micro-enterprises in Indonesia. Enrichment: Journal of Management, 12(6), pp.4877-4885.
Hussain, T., Uddin, A., Farooq, S., Khan, F.E. and Ahmed, T., 2023. External factors affecting organisational performance. Journal of Positive School Psychology, pp.191-200.
Macke, J. and Genari, D., 2019. Systematic literature review on sustainable human resource management. Journal of cleaner production, 208, pp.806-815.
Nazish, A., Mehboob, S.A.A., Haider, S. and Khan, A., 2023. Exploring the role of human resource management practices in the nexus of internal and external employer branding. Middle East Journal of Management, 10(1), pp.51-71.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2020. Fundamentals of human resource management. McGraw-Hill.
Sharma, N., William, P., Kulshreshtha, K., Sharma, G., Haralayya, D.B. and Chauhan, Y., 2023. Human resource management model with ICT architecture: solution of management & understanding of psychology of human resources and corporate social responsibility. Available at SSRN 5000303.
Tunggul, P., 2019. Knowledge management: Sustainable human resource development in public sector organizations. Jurnal Administrare: Jurnal Pemikiran Ilmiah dan Pendidikan Administrasi Perkantoran, 6(2), pp.159-166.
ur Rehman, F., Sein, Y.Y. and Dmytrenko, D., 2023. Translating the impact of internal and external factors in achieving the sustainable market competitiveness: the mediating role of management practices. Journal of Competitiveness, 15(1), p.168.
Whelpley, C.E. and Perrault, E., 2021. Autism at work: How internal and external factors influence employee outcomes and firm performance. Journal of General Management, 46(3), pp.210-219.
Online
TESCO, 2024. Online. Available through <https://www.tesco.com/?srsltid=AfmBOory-nOMyu_roPknijy407mzi1JfmmVVUm6b-t1Sc1n7_vPysiR7>
The 8 Key Functional Areas of Human Resources Management, 2024. Online. Available through <https://www.indeed.com/career-advice/career-development/functional-areas-of-human-resources>
