This unit is based on HRM from academic perspective, how they help firm in order to achieve their strategic goals
- Provide brief about HR practices & policy against the theoretical concept
- Describe external forces and their effect on strategic decision
- Develop analysis of HR functions and how the practices are delivered.
Strategic Human Resource Management is defined as the practice attracting, rewarding, developing and retaining workforce for benefit of both workers as individuals and firm as a whole. It involves typical human resource elements such as discipline, payroll and hiring & also includes working with manpower in collaborative way to increase retention, enhance work experience quality and maximize mutual employment benefit (Wright and McMahan, 2011). This assignment is based on Tesco which is a British multinational grocery retailer of UK. The report covers analysis of HR practices and policies as well as external forces that affects strategic decisions. It also includes the way in which HR functions are organised and policies & practices are delivered.
1. Analysis of Human Resource practices and policies within firm against theoretical concept
Human resource policies and practices are continuing guidelines on approach that firm intends to follow in managing its personnel. Formulation of these policies assist a firm to demonstrate externally and internally that it meets needs for training, ethics, diversity and commitment regarding corporate governance and regulation of its workforce. HR practices and policies helps company to manage people. Tesco adopts various policies and procedures that helps them in improving performance of firm as well as its manpower which results in effective attainment of goals and objectives of company. Human resource practices culture of organisation and encourage its growth. Some benefits that Tesco gets by applying human resource practices and policies are as follows:
- It helps in developing culture of an organisation.
- These policies administer tools and guidance for managers that helps in managing employees in appropriate manner (Van Buren III, Greenwood and Sheehan, 2011).
- It supports workforce to understand in better way that what is expected from them.
- It administer rules surroundings consistency, fairness and clarity.
- These policies and practices supports to integrate new employees and develop them in short span of time.
- It ensures meeting of legal obligation regarding employees.
- These reflects standard of business.
Human Resource policies includes:
- Regulatory policies
- Flexible work schedule policies (Lengnick-Hall, Beck and Lengnick-Hall, 2011).
- Paid time off policies
- Leaves of absence policies
- Business and travel reimbursement
- Acceptable use policies
- Human Resource Practices includes:
- Recruitment and selection
- Pre-employment background check practices
- New hire orientations
- Employee integration strategies
- Compensation planning
- Training and development of employees
Human Resource policies and practices adopted by Tesco are:
High Commitment HRM:
High commitment HRM is a set of human resource practices which has potential to improve organisational performance (Storey, 2014). This practice is mainly adopt to reduce absenteeism, improve attitude and behaviour of employee, enhance quality as well as customer service. High commitment practices helps company in increasing productivity and performance. For the perspective of firm as well as its employees, these practices are good as it improve employment security, overall quality and performance of organisation. According to Pfeffer J., best practices are:
- Selective hiring
- Extensive training, development and learning
- High compensation contingent on performance
- Performance appraisal, review and career development
- Team working
- Reduction of status differentials
- Work life balance
- Employment security & internal labour markets
High commitment model has introduced by Tesco that offer training & development to workforce. They developed their culture by extending their logo which assists to show their commitment to manpower and customers (Daley, 2012). This helps firm in offering high quality goods and services to consumers and satisfy their needs.