Concept of Human Resource Management in Global Organisations - Tesco - Case Study Example

HUMAN RESOURCE Table of Contents Table of Contents 2 Introduction 3 Concept of Human Resource Management in global organisations 3 Role of Human Resource Management in enhancing organisational performance 4 Functions of Human Resource Management 6 Different functions of Human Resource Management policies 6 Integration of strategies in the Human resource policies of UK base firms 8 Focusing of extensive discussion making on strategic functions: 9 Recruitment: 9 Performance Management 12 Conclusion 14 Reference list 16 Introduction The concept of Human Resource Management is one of the essential strategic factors of organisations. In the globalised economy, business environments are facing the challenge of stiff competition. Therefore, organisations are implementing different strategic policies for managing human resource management. The researcher made an in depth analysis of human resource management policies that are used by global organisations. This study will outline the concept of Human Resource Management in global organisations like Tesco, ASDA, Sainsbury, Nike and Adidas. Moreover, the researcher has also stated various roles of HR managers in increasing the organisational performance. Functions of HRM policies have been reported in the study. Additionally, the researcher has also emphasised on performance management and training and development strategies of HR with the help of feasible arguments (Armstrong and Armstrong, 2000). Concept of Human Resource Management in global organisations Employee performance and skills are impacting the organisational profitability and growth. In the contemporary era, organisations are utilisation of HRM policies allocation. Human resource management employees develop arguments on the operational and employee management process. HR management will aim to develop most feasible operational practices that will encourage vertical integration among the employees. On the contrary, employee skills and efficiency will seek for various training and development policies (Analoui, 2007). Global organisations are developing contemporary policies for maintaining an efficient employee base. Organisations like Tesco, ASDA, Umbro, Nike and Adidas are maintaining highly sufficient recruitment policies. They are also maintaining strategies for development of new and existing employees. In addition, changing technology of the operations will increase complexity among the employees. Retail and manufacturing organisations are facing the challenge regarding the changing technology and external environmental traits (Bowblis, 2011). Multi dimensional HR policies will aid the organisations to enhance operational sustainability. HR management carries out analysis of the career opportunity for the employees. In addition, HR planning will be outlining some of the personnel needs that employees have for the employment policies. In the global firms, HR management policies are concentrating on the effective recruitment policies. People are recruited as per skills, potential and ability to fit in the organisational structure and recruitment (Armstrong and Armstrong, 2011). Role of Human Resource Management in enhancing organisational performance HR management of any organisation have different roles that aids in improving the performance. In the globalised firms, HR departments are responsible for maintaining roles like: Recruiting potential and skilled candidates is one of the crucial roles of organisations HR managers. HR management is responsible for recognising and meeting the requirement of training of the current staffs and new recruits. Hence, employee welfare policies must be ensured and positive employee relations needs to be maintained. In addition, workplace environment should be disseminated among the employees. Moreover, corporate social responsibility maintenance is another role of HR management. Operational legislation should be disseminated among the employees to maintain ethical working conditions (Bowblis, 2011). Administrative role: HR department or managers must provide expertise support to the operational policies. Management of the employees can be efficiently controlled with the help of providing assessment criteria. Evaluating the employee performance will aid the management to guide the employees. Assessment role: HR managers will assess the operational outcomes of various departments of the organisations. They will be able to point out the fluctuation of employee’s performance in respect to the benchmarks. HR management policies of the leading global organisations will be outlining various factors like “Health and Safety” in the workplace (Garland and Gershengorn, 2013). Association and relationship among the employees and management: Multinational organisations like the Tesco, Sainsbury, Walmart and Nike are having huge operational channel which includes various process. Therefore, HR management of the firms are required to employ integration policies among the employees. Integrity among the employees will develop operational skills. Mainly, this policy or role of HR department will surely make integration of organisational goals in global setups. Managers and administrators will allocate jobs to employees as per their skills and knowledge (Gilmore and Williams, 2009). Loyalty development in employees: HR management of retail and manufacturing firms are seeking for employing loyalty policies. Satisfied employs will be more loyal to the firms. Managers are developing appraisal strategies to develop loyalty and satisfaction among the employees. Skilled employees must be retained for maintaining sound performance in the organisation. Thus, skilled and loyal employees will help manufacturing firms in providing higher quality products. Loyalty development process will commence from recruiting of employees. Employees will be satisfied if they gets job as per their qualifications (Grossman, 2010). Development of higher competence among the employees: Strategic HR management policies and groups will aid the employees to gain more competitive advantage. Contemporary global firms are enjoying the perfectly competitive condition of labour market. In the current scenario, global economy is having huge range of the knowledgeable employees. On the contrary, the wage rate and compensation will be fixed in terms of sound negotiation process. This policy will empower the skilled employees in terms of gaining more competencies in the career growth (Hassi, 2011). Functions of Human Resource Management HR management functions must be integrated with the different strategic development process. HR managers must orient new recruits and train these new and existing employees as per the rules of an organisation. In the developed countries like the UK and USA, wages and compensation management is highly solicited to maintain proper employment policies. Proper salary structure will help the management in terms of developing proper satisfaction of the employees in respect to their service for the organisation (Mahmood and Akhter, 2011). Different functions of Human Resource Management policies Resourcing: Major function of the HR management is to recruit people for the operational policies. Resourcing does not only mean staffing and hiring new employees; it suggests retention of experienced and skilled persons. Organisations like Tesco and Nike needs to maintain a set of committed and motivated employees to maintain efficiency in meeting the demands of the global customers. HRM functions will be concentrating on efficient resourcing of employees. HR management needs to disseminate the job description among the employees (Martin, 2009). Performance Management: Performance management is one of the major strategies that manufacturing firms are adopting as the strategic HRM policy. Employee’s performance management will help the organisations in maintaining the evaluation of performance, training and development requirement understanding, and total quantity management. Learning and development schedule of the employees can be more effective with the help of performance monitoring process (Pain, 2015). Reward Management: Human resource of any company will get more motivated in terms of appraisal and compensation. Proper benefits and salaries will aid organisations for developing highly motivated employees. Employees must be offered with feasible working hours. Leaves management must be having feasibility for providing feasibility. Insurance or healthcare safety must be provided to the employees. Concessional rates should also be provided for different amusement facilities. On the other hand, motivational level among the employees can be increased with the help of learning and skill development programs. Rewarding and acknowledgment policy of Tesco used to motivate employees and create feasible loyal employee base (Smith, 2006). Training and Development: Training and development is one of the crucial strategies and functions of the HR department. Mainly, this function will outline responsibility of the management. There are many processes of training and development, where “On-the-job” and “off-the-job” trainings are the major means of developing employees. Training is beneficial for both existing and new employees. This function will aid the organisations in terms of increasing the skills and knowledge of the employees and henceforth increasing the performance. Training of employees will aid to grab the career opportunities available in the organisations having sound communication policy. Training and development of human resource will emerge innovative skills in experienced employees and required skills among the new recruits (Taylor, 2014). Employee Relations: Workplace environment will be depending on the relationship among the employees and management. Proper communication will create feasible environment for working. Employee relations are one of the vital strategies for the HR management policies. Employer and employee relationship will increase the possibility of the feasible outcome of the organisational performance. Job satisfaction among the employees will increase due to the best possible employee relation. Employee engagement is another mode of employee relationship that aids the HR management to reduce conflicts raised in the work place. Organisations like the Tesco, ASDA, Nike, Adidas and Walmart are using the sound employee relation strategies to increase the potential growth of the organisation (Van Dooren, 2011). Integration of strategies in the Human resource policies of UK base firms Process of recruitment of employees in the retail firms lie ASDA, Tesco, and Walmart will start from promoting the job opening, candidate assessment and selection for interview, interviewing candidates, offering suitable candidate with jobs. The competition level of UK based retail firms have increased as there are “Big Four” firms. HR management will be negotiating salaries and other compensatory benefits for potential recruits. Global retail firms like Walmart, Tesco and Carrefour are making high investment for recruiting new people and staff (Mello, 2002). Employee performance in such retail firms will be depending on some key aspects. Performance management will be aiming to achieve the organisational aims and objectives. In addition, organisations like Tesco, Nike and Walmart will be getting the aid of performance management as the employees are able to develop their potential skills and meet the consumer demands. Moreover, role of the employees achieve goals defined by the management. Competencies of the employees will be depending on the roles and responsibilities set by the HR department. Retail firms are maintaining set of performance benchmarks to maintain proper performance (Sanger, 2008). Professional development is the part of the training and development policy. Mainly, this policy aids the existing employees to enhance their career. Training and development is the major employee orientation tool. Employees will get encouraged by outlining the opportunities regarding professional growth (Van Dooren, 2011). It is observed that the strategic attributes will aid Tesco, ASDA, Nike, Adidas and Walmart in terms of meeting competition in UK and global market. Focusing of extensive discussion making on strategic functions: Various functions of the HR departments are required to maintain feasible operational policy for the organisation. Human resource managers should be developing certain strategies that will help them to meet the compensation related demands. Moreover, incentives or appraisal can be done with the help of evaluating the performance employees. HR management needs to mitigate disputes among the employees. Proper communication skills are required to maintain dissemination of the relevant knowledge regarding the operational plans, industrial standards and other employee related competitions. Also, leadership skills of the management will help in inserting proper negotiation. In addition, training of staff along with the appraisal techniques will be the most common strategic function of the HR managers (Van Dooren, 2011). Recruitment: Figure 1: Process of recruitment and selection (Source: Tesco-careers.com, 2015) From the above mentioned diagram, the learner will get brief idea regarding the training and development policy of any organisation. In the current section of the study, the researcher is going to put the emphasis on recruitment and staffing policy of the Tesco. It is one of the largest retail organisations of world having employee base of more than 600000, globally. Therefore, allocation of the recruitment strategies as per Tesco will help the researcher in making critical considerations (Yetano, 2013). Recruitment and Selection process of Tesco Tesco is having the large organisational structure and global retail market presence. They have retail operations spread over different areas in the world. Tesco offers huge employment source in the UK and in other parts of the world. Tesco has reported more than 82% of the overall global sales from the retail segment of the UK base. Tesco aims to recruit people from the 14 countries along with the UK for maintaining operational policies. They are operating in the Asian emerging countries like China, India and Japan and in the retail market of USA as well. Recruiting policy of Tesco is aiming to cover the international labour market (Tesco-careers.com, 2015). The organisation is aiming to recruit peoples from the global segment that will aid them to meet the global retail operations. Recruitment process of the Tesco is outlining the organisational objectives. Pre-recruitment process outlines the process of improvement of employees as per the retail customer’s expectations and perceptions (Yetano, 2013). The process of the recruitment is segmented in two modes: Internal Recruitment policy of Tesco: Internal recruitment policy of Tesco explores the existing skilled employees. They are shifting the employees for filling up vacancy in the organisational structure. Internal employment process allows all the existing employees to participate or submit the candidature for any particular post. It provides the Tesco employees with a scope of parallel and perpendicularly career growth. Moreover, this process helps Tesco to maintain a feasible recruitment of loyal people (Taylor, 2014). In addition, this process reduces the cost of recruitment. Internal recruitment is a type of appraisal of the existing employees. Henceforth, Tesco HR management will have a sound idea of the traits of the employees. However, this policy has the limitation that it does not explore the external potential candidates with more skill and knowledge base. This recruitment policy can hamper the loyalty process of other existing employees, who failed to develop their organisational position. External Recruitment policy of Tesco: External recruitment policy of Tesco involves the candidates that are not the parts of the organisation. They are able to explore various candidates like fresh graduates, experienced retail employees of other firms and international labour market candidates. Mainly they publish the description of job opportunity in their career website and many other employment portals. HR management of the organisation adopted online mode of recruiting (Tesco-careers.com, 2015). Candidates are attracted to attain the interview following the process of evaluation of skills and merit criteria. Then HR managers negotiate rate of compensation to be offered to the employees. In the external recruitment process of Tesco, candidates need to enlist their CV in the web portal. This type of staffing policy helps Tesco in making appropriate selection of the candidates having sound skills, knowledge and potential to grow (Armstrong and Armstrong, 2000). In addition, they are having huge choice for selecting the employees. However, this process costs Tesco a bit higher than the internal recruiting. HR management of the organisation is unable to have an idea of potential employee behaviours. Performance Management Globalised organisations like the Tesco, Adidas, Nike, Puma and Walmart are using the policies of the performance management. This process will aid the management in setting up feasible working conditions as per the expectations of performance. HR managers of the firms are monitoring performance of the existing employees in a continuous manner. Management of the firms can ascertain capability of the employees as per historical performance. Performance monitoring is done with the help of performance rating criteria. This management process adopts proper appraisal technique for the excellent performing employees (Armstrong and Armstrong, 2011). Planning: HR managers of global firms are distributing performance plans and benchmarks or target schemes. Goals are set in a measurable manner that helps the administrators to evaluate the operational success. HR management will align the strategic directions along with the operational plans. Employees are communicated in terms of collecting feedbacks. Predetermined goals and objectives of the organisation will be used the HR management in terms of contrasting Employee’s performance (Bowblis, 2011). Monitoring or assessing: Human resource teams will appoint a administrator who will assess the performance of the employees. This monitoring process will outline report on employee performance. Evaluating the employee performance will help in making the appraisal policy. Organisations will help in achieving the opportunity to modify the operational policy and develop skills of the employees (Garland and Gershengorn, 2013). Developing the skills of the employees: Administrators or HR members are continuously monitoring on the performance of employees. Implementation of remedial actions for limitations of skills of the employees will adopt development policies for achieving more compatibility. Responsibilities of employees and HR must be interlinked to achieve prior development. Employee development will impact the performance of the employees positively. The development policies can be implemented with the help of the formal training that is done in the classrooms. It will provide the details of policies or schedule. Again, informal training policy of major organisations is adopting online policies. Coaching and mentoring policies can aid the performance management. (Gilmore and Williams, 2009). Ranking employee’s performance: HR administrators are required to create marking sheet for the employees. Monitoring of the employees performance will be more accurate with the help of scoring or marketing. It will also help the management to differentiate the employees as per their performance. Appraisal of the employees can be segmented in different periods and intensive comparison can be made (Grossman, 2010). Rewarding: HR management is able to maintain feasible appraisal policy for the performing employees. Awarding the performing employees is possible with the help of effective distinction policy. Performance management aids the growth of compensation provisions (Hassi, 2011). With the help of performance management policies, organisations like Nike, Tesco, Adidas, and Walmart can ensure more administration of employee performance. The process seeks for the eminent scheduling, supervising, and developing policy. Moreover, appraisal and compensation management exercises will be more feasible (Mahmood and Akhter, 2011). Conclusion From the study, learner can get the detail idea of the Human Resources polices of the different global organisations. Businesses are modifying the operational functions and HR policies as per environmental demands. In addition, HR professionals are observing higher career opportunity. Moreover, feasible HHR policies will aid organisations in terms of achieving certain competitive advantage. Retail organisations like Tesco, ASDA and Walmart are developing innovative products to gain certain competitive advantage. Therefore, management of new and existing employees will involve training and development, skill supported recruits. Strategic HRM will bring in additional advantage for the firms. HR must disseminate proper career opportunity along with proper negotiation of compensation policy. In addition, development of inspirational strategies will increase the set of employee motivations. Safe and secure workplace cultures and proper compensation management policies will motivate employees. Reference list Analoui, F., 2007. Strategic human resource management. London: Thomson. Armstrong, M. and Armstrong, M., 2000. Strategic human resource management. London: Kogan Page. Armstrong, M. and Armstrong, M., 2011. Armstrongs handbook of strategic human resource management. 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