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Business Strategy and HR Policies

Evaluating HR policy for internal coherence
This week you will continue applying the knowledge gained in this module to a real organisation. This
Individual Assignment builds on your first Individual Assignment asking you to now evaluate the internal
coherence of your chosen organisation�s HR policies and practices and make recommendations for
�Review Individual Assignment which sent be email before working on this paper.
�All the referencing MUST be in HARVARD STYLE.
�Further evaluate your chosen organisation�s HR policies and practices for their internal coherence.
�Critically evaluate the internal coherence of the organisation�s HR policies and practices.
�Recommend changes to specific aspects of HR policies and / or practices based on your analysis and
provide a justification for each recommendation.

Business Strategy and HR Policies


Tesco is considered as one of the largest retail stores in the UK. In 2014, it was
established that Tesco was operating its business functions in 12 countries, with up to 6,790
stores globally. In addition to this, it was established that the company employs 500,000 workers

in its stores worldwide(Brand Finance, 2014, pp.64). Besides Tesco’s core business functions
within the grocery sector, the organization has alternatively diversified to offer a broad range of
products and services such as mobile and financial services.
The development of the brick and mortar business model enabled this organization to
focus on HRM functions and efficient customer relationships to enhance its business operations.
This paper therefore seeks to evaluate Tesco’s human resource policies and the manner in which
they cohere with the organization’s strategies (Brand Finance, 2014, pp.65). Additionally, the
paper will also establish recommendations on the specified areas that need to inclusion of human
resource policies and justify these recommendations.
Selected Company: Tesco Plc
Tesco Plc is considered as one of the oldest business establishments within the
supermarket chain industry. The organization begun its operations in 1919 and is currently the
leader in the industry. However, in 1994, the company began operating in other markets apart
from England such as Taiwan and South Korea and is intending to expand its operations in
Central-Europe(Scuffham, 2014, pp.12). The success of Tesco wholly depends on its customers
and the people who work in ensuring the customer’s needs are addressed when they visit the
stores. Irrespective of the location of its stores, Tesco Plc has created value to ensure that its
consumers know what can be expected from them.
In this case, it is essential to establish that Tesco functions in an environment that is
purely based on the element of trust and respect, with the organization believing in satisfying the
consumer’s needs since this remains Tesco’s single most initiative that has seen the organization
achieve their customer’s loyalty (Scuffham, 2014, pp.13). Tesco also operates in a highly
competitive market that has seen different consumers having the preference of shopping in

groceries of their choice. However, the success of Tesco is attributed to its successful business
strategy, an aspect that has taken the organizations initiative in implementing.
An Evaluation of Tesco’s HR Policies and Practices

Tesco’s human resource strategy revolves around the simplification of work, the
realization and development of the employee’s skills, challenging the organization’s unwritten
rules and performance management in achieving its goals. Some of Tesco HR practices and
policies include:
Career Development and Training:
Tesco initiated an option development initiative that allows staff members to select engage in
learning opportunities and different skills required in order to increase their productivity in the
organization (Brannen, Moore, & Mughan, 2013, pp.287). This program is considered as a self-
guided approach directed towards career development, an aspect that has seen several of the
organization’s employees participate.

Employee Retention Strategies;

In order to develop a good relationship between the employees and the management of
the company, Tesco resorted to retention strategies aimed at encouraging its employees to work
in stores near their homes, an aspect that was established to reduce time workers spend in going
to work. Alternatively, the employees of the organization are allowed to apply for transfers, an
aspect that is considered as essential in retaining the workforce (Brannen, et.al.2013, pp. 288).
Additionally, Tesco developed the work shift system with the aim of maximizing the potential of
the employees to work for hours that suit their own schedules, thus allowing the employees to
engage in other activities such as education and so on. The flexibility established in

incorporating efficient working hours has proved to be essential in establishing a healthy
working environment, an element that denotes the roles of HRM functions.
Employee Motivation Strategies
Tesco has also developed efficient strategies aimed at motivating the employees who
perform and meet their individual goals, an aspect that makes its employees feel valued
(Brannen, et.al.2013, pp. 289). Through an approach that aims at increasing the employee’s self-
worth, the organization has been in a position to increase its profits, an aspect that has seen the
remuneration and compensation of these workers.

Tesco’s Business Strategies

In consideration of Tesco’s global reach, it is significant to establish that its HRM team is
committed towards establishing a viable HRM plan that employs the use of different strategies
aimed at managing its employees. This has seen the organization change its strategies in order to
meet local variations and customs (Merkel, Jackson &Pick, 2012, pp.260). Tesco’s human
resource strategy involves the development of employees through training, the inclusion of
rewards and benefits in order to achieve its targets and efficient consultation and communication.
The three-fold strategy of HRM has enabled the organization to achieve its goals, an
aspect that has aided Tesco in recruiting and retaining a well-motivated workforce that has the
capacity to make a professional appearance to Tesco’s customers (Merkel, Jackson &Pick, 2012,
pp.260). The primary significant HRM strategy at Tesco is that of training and development, an
aspect that enables the organization to train some of the graduates from leading institutions.
These recruits are therefore trained and introduced within the organization’s corporate culture.
Additionally, Tesco also has an options development program that allows employees to
select and get equipped on skills to improve their performance within the organization (Merkel,

et.al.2012, pp. 262). This is therefore considered as a self-guided approach aimed at developing
the employee’s careers. Tesco has therefore expanded this program to ensure that its employees
from different regions are trained in meeting the organization’s objectives.
On the other hand, the element of communication and consultation is also an integral
element within Tesco’s business strategy. Through this, the organization is in a position to
establish some of the challenges that the employees undergo within the company and address
these issues (Merkel, et.al.2012, pp. 264). This approach of “bottom-up” approach of feedback is
essential for a company that has a global presence, an aspect that requires the managers to use
different approaches of communication to gain feedback from the employees that can be utilized
in advancing the functions of the company.

HR Policies Aligned to Tesco’s Business Strategy

Career Development and Training:
Tesco takes consideration of employees, development and safety regulations, an aspect
that justifies its approach directed towards career training and development. In meeting this goal,
the organization trains its employees in professional development and disaster management, an
aspect that is essential not only to the employees but to its clients as well. Tesco’s career
development and training is therefore considered as strategic in the continuity of its growth and
productivity, an aspect that has enabled the organization to retain its effective employees (Wood
& McCarthy, 2014, pp.124). The organization has therefore aligned its workforce’s career goals
with its strategic objectives, an aspect that helps it in achieving its organizational goals as well as
that of its employees. This has alternatively enabled the organization to establish and address
some of the gaps in training.

Initiating a career development plan for this organization’s employees enables the
managers to address the existing gaps identified in training. The organizations efforts aimed at
addressing this issue enables the employees to gained knowledge, an aspect that improves their
productivity and opens opportunities geared towards promoting the employees (Wood &
McCarthy, 2014, pp.124). Employees are likely to feel engaged when the organization involves
them and takes consideration of their well-being. Career development influences the entire
organization by improving the employee’s morale, career satisfaction, motivation, productivity
and responsiveness in meeting the organization’s objectives.
Employee Retention and Motivation Strategies
Tesco is additionally committed towards motivating and retaining its staff members, an
aspect that has progressed its activities and functions(Wood & McCarthy, 2014, pp.125). The
company’s dedicated workforces are considered as its foundation in achieving its business goals
and objectives. In this case, the organization ensures that its employees are constantly motivated
and are associated with the company’s vision, an aspect attributed to the organization’s
consistency in achieving its high level of performance.
In as much as several employees perceive that the only approach they can be motivated is
through the inclusion of financial rewards and incentives, Tesco developed efficient motivational
approaches that include the establishment of hygienic working areas, the offering of holidays to
the employees and reward schemes.


It is significant to establish that in order for Tesco to be competitive in a competitive
market, there is a need to ensure that the organization adheres to sound strategies that are
implemented within its functions. It is therefore essential that HRM is developed, identified, and

its capacities strengthened in ensuring that the company’s workforce capacities are fully utilized
within the organization(Tyrell, 2014, pp10). Tesco has a considerable amount of employees who
are experienced, an aspect that would require the organization to use these capacities in training
its new employees. Alternatively, Tesco needs to train its employees with the aim of increasing
their experience and ensuring that they are updated in relation to their skills and competencies.
Training in this case should be a continual element that increases the potential and competencies
of the employees.
On the other hand, in establishing effective employee retention and motivational
strategies, Tesco needs to comply with the existing regulations and laws in regards to the
payment of staff salaries in compliance with the minimum wage laws. The company is bound to
benefit when it links its performance reward systems with the firm’s profits (Tyrell, 2014, pp10).
This substantiates the fact that when the organization’s annual profits increase, an increase in the
employees’ salaries should be considered and rewards offered to outstanding employees. This
reward system will positively impact the functions of the company.


As established, the HRM function of Tesco plays a significant role in the achievement of
the Tesco’s goals. Tesco’s human resource strategy revolves around the simplification of work,
the realization and development of the employee’s skills, challenging the organization’s
unwritten rules and performance management in achieving its goals. In consideration of Tesco’s
global reach, it is significant to establish that its HRM team is committed towards establishing a
viable HRM plan that employs the use of different strategies aimed at managing its employees.
Tesco therefore needs to ensure that the HRM functions are consistent and are directed towards
enhancing the performance of its employees.


References List

Brand Finance 2014. “Global 500 2014: The world’s most valuable brand”. Available at:
http://brandirectory.com/league_tables/table/global-500-2014 [accessed 7th July 2016].

Brannen, M.Y., Moore, F. and Mughan, T. 2013. “Strategic ethnography and reinvigorating
Tesco plc: Leveraging inside/out bicultural bridging in multicultural teams. Ethnographic
Praxis in Industry Conference Proceedings, London, September 16-18, pp. 282-299.

Merkel, J., Jackson, P. and Pick, D. 2012. “New challenges in retail human resource
management”. In Krafft, M. and Mantrala, M.K. (eds) (2014). Retailing in the 21st
century (2 nd edn). Springer: Berlin, pp. 257-270.

Scuffham, M. 2014. “ Tesco takes on UK banks with current account launc”. Reuters

Tyrell, J. 2014. “Introduction to socio-cultural influences”. In Mutum, D.S., Roy, S.K. and
Kipnis, E. (eds) (2014). Marketing cases from emerging markets. Heidelberg: Springer,
pp. 9-11.

Wood, S. and McCarthy, D. 2014. “The UK food retail ‘race for space’ and market saturation”:
A contemporary review. The International Review of Retail, Distribution and Consumer
Research, 24(2), 121-144

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