This report reviews and discusses the strategic Human Resource and practices at Tesco. " Strategic HRM has gained both credibility and popularity within the last decade, specifically regarding its effect on organisational performance "(Paauwe, J & Boselie P. 2003).
By the introduction of strategic management Tesco has introduced a high commitment model which offers training and development to all or any employees with this the role of HR within the organisation has increased in importance. Strategic management helped Tesco to expand its business. Tesco' operates in an exceedingly competitive market; the buyer has an option where to shop for their groceries. With this Tesco expanded their portfolio to include CD's, DVD's, electrical goods and clothing. Recently they have expanded into the financial services offering customers products from Bank cards to insurance. All their products are available on the internet 24 hours a day Their slogan, " every little helps" is used showing their commitment to customers, it has been used to lessen prices and also to increase the level of customer support. This slogan is currently used in their staff training; the human-resource strategy at Tesco's revolves around work simplification, challenging unwritten rules, rolling out core skills to all or any head-office employees and performance management linked to achieving steering-wheel targets. This highlights the way in which Tesco's business measures are closely associated with performance management (Anonymous 2003). Tesco ensures that each and every employee has the opportunity to understand his / her individual role in contributing to the Tesco core purpose and values. This involves an ground breaking induction programme that attracts different cultures, varieties of learning and varying commitments to the work. The frontline employees are the ultimate reflection of Tesco to its customers, but all employees have a very important role to learn in turning core values and customer commitment into reality on a daily basis (Whitelock, N. 2003).
"A business without strategy is a small business without direction. A technique with out a competitive advantage is a small business without a precondition of success. " The core objective of Tesco is to determine value for customers in order to get their lifetime loyalty and also to ensure that of its employees, wherever they work, are aware of the role they play and they can clearly observe how their actions affect the "big picture" of the entire business. Working out creates a graphical journey through the history of Tesco, its core purpose, values, business goals, financial aims, operations and marketing strategy and its commitment to customers. All employees are obtaining more training than before (Whitelock, N. 2003). The primary good thing about strategic management in Tesco was that it helped it to adopt lead against its rivals in the competition. strategic action that the Tesco have undertaken is what they labelled as Regeneration. Among the areas where Tesco have "regenerated" includes Puchung, Kuala Lumpur, and Simpang Pulai. In this plan, the business places a store in specific areas that they consider as deprived and in dire need of employment. In this manner, they may have instituted a store in a spot where there exists little competition and in once increases their reputation on the area by giving jobs for folks locally. Moreover, this plan also moves their commodities closer to the public. Providing the needs and quality service to their customers is the functional dimension of Tesco's business strategy. TESCO introduced over 5, 000 new food lines this season. Another innovation is bringing in screw-cap wines and their own label range 'Unwind', which is on-track to be a $5m brand this year. Grab and Go counters have been introduced into over 500 stores, offering clients a huge selection of cheese and hot chicken without having to queue, which makes it simpler and cheaper to use. (2002)
ADVANTAGES OF STRATEGIC MANAGMENT
Discharges board responsibility
In Tesco Tesco's strategic direction is discussed with all employees and managers. This helps the average person employee to comprehend their role and importance within the organisation.
Forces An Objective Assessment
Strategic managment creates value by providing opportunities for organic and natural learning, development of intellectual capital and enhances core competencies. This value is crucial to the organisation's future success. This helped Tesco to adopt the lead over its rivals in the fiercely-competitive UK supermarket sector. The strategic policy (Future) were only available in the company's supermarkets, where its aim was to free up stores employees so they could do more and improve customer support. This can help these to see their future growth of the business and tackle any competition easily.
Provides a Framework For Decision-Making
Strategy offers a framework within which all staff can make day-to-day operational decisions and understand that those decisions are all moving the business in a single direction. Strategy offers a vision into the future, confirms the reason and values of a business, sets objectives, clarifies threats and opportunities, determines solutions to leverage strengths, and mitigate weaknesses (at the very least). As such, it sets a framework and clear boundaries within which decisions can be made. In Tesco by giving training to their staff could meet their objective that is client satisfaction which had a substantial impact on the success of the organization.
Supports Understanding & Buy-In
Allowing the board and staff participation in the strategic discussion allows them to better understand the direction, why that direction was chosen, and the associated benefits. For some people simply knowing will do; for many individuals, to get their full support requires them to understand. This led the organisation in the path of growth and are now the no1 supermarket in UK.
Provides an Organizational Perspective
Strategic management takes an organizational perspective and talks about all the components and the interrelationship between those components to be able to develop a technique that is optimal for the whole organization and not an individual component. At Tesco all the operational issues are handled very effectively.
Helps in through planning
You can think of ways to maintain your strengths and increase your competitive advantage by thoroughly planning. that was done by Tesco and are one step ahead of its rivals
DISADVANTAGES OF STRATEGIC MANAGMENT
The Future Doesn't Unfold As Anticipated
One of the major criticisms of strategic management is the fact it requires the business to anticipate the future environment to be able to build up plans, so that as we all know, predicting the near future is not an easy undertaking. E. G. recession in UK had a negative impact on the growth of Tesco.
It Can Be Expensive
It can be costly for some organisations to hire people who develop strategies. In Tesco also there is a high cost for training of its employees.
Long Term Benefit vs. Immediate Results
Strategic management processes are made to provide an organization with long-term benefits. If you're considering the strategic management process to handle an instantaneous crisis inside your organization it is not possible
Impedes Flexibility
When you undertake a strategic management process, it'll result in the business saying "no" for some of the opportunities that may be available. This inability to choose all of the opportunities presented to a business may also be frustrating. Tesco had a opportunity of diversification but sad no because of their strategic policy.
Conclusions
Tesco's permanent strategy is to continue to put value on employee training and to integrate this value into the culture of the organisation. They are employing this approach to keep their competitive edge. The worthiness that is located on HR demonstrates commitment from the top degrees of the organisation to training. Tesco's intentions are to keep this increased focus on staff training and to integrate this learning fully into the organisation. There exists constant reviewing of the intervention, and make adjustment were necessary. Tesco is an extremely successful UK organisation. They have increased their market share and retail units within the last five years. This has been achieved partly through a completely integrated HR department. Although this isn't really the only factor to their success, it includes certainly been a major element in it. A combo of good Tesco management, Tesco online marketing strategy and a lean business model has seen the supermarket rise above its opponents to dominate the UK market.
REFRENCING
Books by Armstrong, M (2005) (9th Edition) A Handbook of Human Resource Management Practice Kogan Page, London
Beardwell, I. et al, (2004) (4th Edition) Human Resource Management a Contemporary Approach Prentice Hall, Harlow.
Blackwood T, (1995) Accounting for Business Business education Publishers Limited, Sunderland
Buchanan D, and Hucczynski A, (1991) Organisational Behaviour Prentice Hall, Padstow
Journals
Anonymous (2003) Recruiting deliver Tesco's bright Future Human Resource Management International Digest, Bradford: Jul/Aug 2003 Vol. 7, Iss. 4
Guest, D (1999) Human Resource Management-The Workers' Verdict Human Resource Management Journal, London, 1999. Vol. 9, Iss. 3;
Internet
DTI (1998) Building the Knowledge Driven Economy Green Paper, accessed through www. dti. gov. uk/
www. tesco. com
21 Nov 2005. . . benefits and drawbacks to a strategic management process. Access through
www. charityvillage. com/cv/research/rstrat36. html
