The involvement of joint venturing and development of HRM by the firm in a sector will play crucial role. The report will involve an assessment of external factors that will lay to the economic advantage of the firm. Different roles and responsibilities with different theories and models of HRM management will be discussed. Also, the strategic approaches and various issues related to it will be taken in effective consideration related to performance management and sraff involvement measures (Beardwell and Thompson, 2014).
LO1Critical evaluation of international business environment in the Host country
The Retail sector has increased to a greater extent on the global level. Thus, the wide range and variety of operational measures will be provided that will help in the better growth and development of cited firm and the retail sector in the Indian market.
Company Profile- Tesco plc
Tesco plc is one of major UK based retail firm that makes the better out of the available resources to provide the better quality of product and services to its customers. It provides a wide range of goods and services including clothings, food items and other general grocery products. Since 2013, it has seen a tremendous growth in revenue generation and operational quality, that has impacted the overall rise in its productivity and profitability. Despite being in recession, it was the biggest employer and provider of services that has lead to rise in its economic stability and core profits to Â£3.4billion. Other than this, it has the highest market share in UK, despite high competition from rival firms (Brewster and Hegewisch, 2017).
Tesco is planning to enter in Indian market by the means of joint venture with a local retail firm and gain a good customer base in host country. The approach of joint venturing is beneficial as it helps in reduction of risk factors and help in gaining a faster stability in the new market. Also, this approach will help the firm to avoid any sort of conflict with other operations body in same market sector.
Country Profile: India
India is one of the fastest growing economy in world with vast labour force and an effective GDP rate, that makes it and ideal market for the industries like retail sectors. Also, the rise in economic stability and increase in purchasing power of people has lead to the development of many potential customers for different industries. The rise in Per capita GDP and consumer market will make it as an ideal market for Tesco plc.
It is one of the ideal place for an MNC to grow and develop as it provides the cheapest labour in vast quantity and the high level of technical advancement is one of the major key factor, that is been taken in consideration by business firm. Apart from this, India is the fastest growing e commerce market in recent time, making it among the top five retail markets by the economic valuation in past five years (Brewster and et.al., 2016.).
Macro environmental factors of India
The external or macro environmental factors of India are as follows:
- Political: The governmental policies and trade regulations that are been developed by organisation will affect the revenue and profit generation. In recent period, India has seen a good political support for the MNC's to establish and flourish in Indian market.
- Economic: In past five years, India has seen a good growth of trade and business. The rise in industries and involvement of FDI. Even in the time of recession, India has shown en effective growth in revenue generation and thus has lead to the maintenance of good sales in market. The rise in economy and purchasing power of customer has been the major factor that had improved the growth rate of India.
- Social: With the globalisation and involvement of the latest trends, the demographics and customer preferences have been changed, influencing retail sector to greater extent. Now the customers are asking for more customised and personalised services, this has lead to the rise in demands and the customer engagement with the firm.
- Technological: The rise in adaptability in the latest technology has made India one of the major and high tech market with large number of users or buyers of e commerce services. This will also help in providing the customers with high level of innovative, technical retail services (Brewster, Mayrhofer and Morley,, 2016).
- Environmental: The environmental concerns have been increased in recent time in India. Many environmental firms and government has set up the standards that have impacted the growth and development of environment friendly practices and approaches in India to reduce the carbon footprint.
- Legal: Tesco has to look after the effective measures to follow various labour laws and other trade regulations that are operational in retail sector to have an effective functionality and generate a good revenue.
The expatriate will play a very crucial role in the business operations of the firm and thus will look after the better adoption of innovative measures to involve maximum number of staff and avoid the cultural and language based issues associated in training of local employee's. They will also look after the implementation of effective work practices and set the standards to meet company's expectations (Chelladurai and Kerwin, 2017).
LO2 Evaluation of main HRM theories and Models in relation with economic drivers.
Tesco has a well established and consistent business strategy that has impacted the overall growth and development of the cited retail firm in a much effective and significant manner. The increase in the emphasis on modern technology and the offering of high class of products and services have been the major reason for growth and development of retail firm in market. The effective top management of Tesco plc helps in better engagement of the work force that has helped in improving the core competencies and effectiveness of retail firm. The Tesco plc will see through the effective handling of wide range of business operations that will help in better growth and development of wide range of business operations. The managers and the expatriates at the cited firm will see through the effective adoption of high level of business operations and recruitment processes (Jackson, Schuler and Jiang,2014). The HR managers or the expertises at Tesco plc will use the different measures like Rodger seven point plan that will help the firm to gain a good control over the recruitment factors are as follows:
- Physical traits: it will involve the factors like health, physique, appearance, speech etc. this will help the firm to select the effective measures to adopt the various operations and training measures as per the physical factors that are been taken in consideration for the better development of work force and employees from the local environment.
- Attainments: this involves the factors like education, qualification and experience from past, that is been possessed by a candidate or an employee. This will help and will make it easy for the firms to develop and gain a good control over the operations that will lay an impact on the wide range of operations followed by the cited firm. Good knowledge and experience will help the manager of firm to select or recruit the best employees in the firm and implement better HR policies.
- General intelligence: It involves the fundamental intellectual capacity or aptitude approach of an employee. The intelligence level that is been possessed by individual employee will help him or her to perform better at the work place and support the HRM department of Tesco plc to implement a suitable HR policy or practice that will help in the effective rise in the effectiveness of business operations and productivity of organisation (Knies and et.al., 2015. ).
- Special aptitudes: This will involve the specific attributed that have lead to the rise in core efficiency of a business organisation. It may involve the ability to multitask, having mechanical knowledge, good computer literacy etc. This adds to specialization and will help the firm to gain a good control over the various operations that are been taken in effective consideration the HRM department of firm for better implementation of employee welfare policies and growth measures.
- Interests: It involves the individual practices and the hobbies that are been possessed by an individual and will help in improving the confidence level, intellectual informations and social interactiveness by and employee that will be deeply taken in consideration by firm. Its helps in improving the efficiency and effectiveness of an individual at the work place. Also, it helps in having the innovative actions or practices at work place (Marchington and et.al., 2016).
- Disposition: these comprises the attributes that will help in better rise in effectiveness and skill set of employees, making it easy for HR manager at Tesco plc to have a good idea about the employee's efficiency and effectiveness that also lead to better employee engagement and team formation at cited firm. It consists of the better adoption of measures that will help in good growth and development of HRM at Tesco plc.
- Circumstances: It also plays a very deep impact on the work force that will lay a very deep impact on increase in efficiency of cited business firm. These comprises the factors like local or domestic factors in the family or friends etc. this will help in the better rise in operational efficiency of individual employee, helping in better recruitment process (Purce, 2014).
LO3 Effectiveness of HRM strategies in achieving the goals of employee
commitment, flexibility, quality and strategic integration and the reward system management.
The HRM strategies that are been taken in consideration by the Tesco plc will help the firm to gain a good control over its operations in the local as well as the host country. This will help the cited retail firm to increase the effectiveness and impact on the rise in the effectiveness and efficiency of the business organisation to meet the targeted goals and the operations that will help in increasing the core efficiency of a business operation. The employee target goals that are been set in the firm will help the organisation to increase the effectiveness of the business organisation as well as the employee's (Reiche, Mendenhall and Stahl, 2016.). The HRM strategies are the overall plan that will help the firm to improve the core competency and efficiency of the business organisation in the better way. This will also help in the suitable rise in operational capacity and adaption of flexibility in the organisation which will support the better reward system management. Some major strategy that is been taken in consideration are:
- Leadership strategy: It will involve the top management of the business organisation that will look after the failure or success of the various plans or actions that are been taken in consideration by the firm. It will help in the better decision making that will support the effective increase in staff success and meeting of the targeted goals. The HR manager and other top management executives at the Tesco plc will look after the better management of strategic plans that will help in their better growth and reward system management.
- Talent strategy: this approach will help in the better management of the human resource talent at the cited business organisation that will help in better handling of business activities. The company will prefer the high talent and the organisation that will help in effective growth of business operations that will lead to improving the employee's work flexibility and quality of services that will lead to rise in productivity and revenue generation by the firm (Riley, 2014.).
- High performance strategy: such strategy is operational in the cited firm as it helps in the production of high quality of products and services by Tesco plc. This will improve the work place environment, causes the improving in task flexibility and integrity, for improving the quality of services and ensuring the high performance by the cited business entity. The effective strategic implementation help in increasing the satisfaction level of employee's, improving their efficiency and creativity to have a better reward management.
- Strategic planning: it involves the better planning that help in the effective rise in efficiency and rise in the effectiveness of the actions performed by the employees at the cited business firm. This may involve the effective involvement of various policies, amenities, benefits and opportunities, which will help in better growth and development of the company and provide a good satisfaction level to their customers by developing high quality product and services. Also, the better strategic integration will lead to the improvement in employee satisfaction level at firm and thus help in better rewarding process.
LO4 Differences in approach to HRM globally. Importance of training and its types
HRM is related to managing and controlling people in an organisation. As an organisation is having diversified people working in it, thus it becomes essential to provide training to them ((Chelladurai and Kerwin, 2017). HRM is an universal method of developing policies, strategies and processes for personnel management. For multi national organisation it becomes difficult to develop similar policies for employee. It is because they have to follow different countries laws in HRM. Therefore, there are various differences in HRM globally. They are described below :-
DHRM and IHRM- Domestic HRM means activities performed by organisation in a specific country whereas international HRM works on global level and focuses on strategic HRM.
Importance of training â Training can be important for an organisation in several ways :-
Reduced supervision and direction- Trained employee do not require supervision as they know how to perform task and what to do. With this supervisors can focus on other things.
Increase in productivity- The main purpose of providing training is to increase overall organisation productivity. Trained employee works in effective way thus improving quality of goods and increasing its quantity.
Economical use of resources â By providing training resources are been utilised in economical way. This helps in reducing expenses and generating more profits.
Types of training -There are different types of methods available for providing training to employees. It depends on tesco and the country in which it had to provide training (Brewster, Mayrhofer and Morley, 2016) The methods are as follows :-
In house - It is a training that is given to employees to improve their efficiency so that organisational goals and objectives can be achieved effectively. It is related to teaching work skills and knowledge. Generally, it is provided to employees of particular department such as engineering, management, maintenance, etc.
Off the job â It is a method in which training is provided away from workplace. It is either provided by supervisor or expert. In this only theoretical knowledge is given. It is provided to large number of employee at same time. It is very effective and time saving. It often utilises lectures, case, studies, role play, etc.
On the job â In this training is given at workplace so that practical knowledge is gained by employee. It describes their roles and responsibility and shows them what to do. Employee learn while working with superior (Brewster and et.al., 2016) There are several methods in this such as job rotation, coaching, internships, etc.
Importance of development framework-
It becomes easy for tesco to develop training strategies by identifying difference in approach to HRM. This helps them to reduce employee turnover by providing effective training to them. Also, it is helps in improving their efficiency by implementing appropriate training method. If training needs are identified then it is easy to train employees. Moreover, it is useful in changing approaches of HRM.
LO5 Evaluate the theory and evidence about the relationship between HRM and
The different theories and the models like contingency theory or Harvard model, that are been taken in the effective consideration by the Tesco plc will help in the improvement of the organisational performance but also help in increasing the efficiency and handling of the business operations in a much effective and better way (Sparrow, Brewster and Chung, 2016). These theories and models will help in the better management of the business operations that will help in the better handling of the business operations and meeting the targeted goals in a much effective and significant manner.
The appropriate utilization and implementation of HRM models and theories at the work place will lay a directly proportional impact on the growth and development of cited business firm that will help in the effective rise in Tesco plc effectiveness and revenue generation. Besides this, it will help in increase in employee satisfaction level and participation in business organisation. In other words, the employee participation is the involvement in the operations of the business. Thus, this relationship approach will have following benefits or impacts on the decision making and operational management of the firm:
- Improvement in the efficiency of the project teams and the tasks performed that will help in better handling of business operations in a much effective and sustainable manner. This will also help in increasing the customer satisfaction and efficiency standards.
- Employees taking innovative approaches and models that will help in the better growth and development of the cited retail organisation will be appraised and will be rewarded by firm (Storey, 2014.).
- The exchange of ideas and facts or informations will help in contributing to rise in overall performance of the firm and improve the efficiency of the business organisation. This will not only help in building a better team bonding but also lead to the adoption of better products services and strategies to improve the organisational performance on a wider scale.
- Improving the trust, knowledge and confidence level of the employees at the ground level. As the lower level employee will be on the direct interaction with client or customers, they have to be effective, highly interactive, skilful and knowledgeable in order to rectify the problems that are been faced by the customers of business organisation.
Such activities are quite important for the business organisation like cited retail firm as these help in increasing the employee management interaction, leading to development of a good relationship. The effective rise in the satisfaction level will help in the better growth and development of the organisation and support customer's satisfaction level in much effective and sustainable manner (TenhiÃ¤lÃ¤ and et.al., 2016). Also, the adoption of different activities and HRM models will help in improving the revenue generation that will help in gaining a better sustainability in market and increasing the efficiency of business organisation as well as its employee's. It also facilitates the better team building and improving the interdepartmental communication level at Tesco plc which will help the firm and support it to develop more effective and innovative products and services. Other than this, it will also help in gaining a good customer satisfaction level, leading to a good revenue generation.
LO6 Organisational, national and cultural issues in HRM strategy.
Organisation has to implement different HRM strategies in different countries according cultural and national policies.
Organisational- It includes cultural and structural issues that affect implementation of strategy. HRM strategy is applied in overall organisation so number and levels of departments has ton be considered while developing strategy.
Cultural- It consists of ethics, values, etc. of people and society. According to it tesco has to develop HRM strategies (Riley, 2014).
National â It included national laws and regulations that has to be followed. It consists of labour law, health and safety, etc. These issues has to be considered while developing strategy.
Theory of reward management and its implications â Reward management is an important function of HRM that main aim is to motivate and retain employees. It shows organisation contribution towards employees. It reflects on organisational culture. By establishing reward systems it is easy to give rewards to employees. It main purpose was to motivate employee with their performance. Moreover, a link is created between efforts and rewards through specific targets. Furthermore, by this employee needs are identified by organisation so that it can be fulfilled. Rewards are of two types that is intrinsic and extrinsic. Intrinsic are non monetary rewards. Example are â recognition, achievement, etc. whereas extrinsic are monetary rewards such as bonus, fringe benefits, etc. implications of this are
Concept of performance management â It is related with performance appraisal of employees. This is done to find out how employees have performed their role and duties. Performance management is a mechanism to ensure that whether employee has achieved its objectives or not. There are certain things that is considered in this that are employee behaviour, criteria and performance effectiveness (Storey, 2014). It is a very wide concept that consists if many things. It helps an organisation to measure employee performance so that it can be enhanced. Moreover, it helps in setting standards so that performance can be evaluated. Besides this, it is beneficial for pro
Reasons for measuring individual performance -
- It is very necessary to measure individual performance so that the strengths and weakness can be identified. Also, it helps in maintaining employee efficiency so training can be provided to non performers. This will help in improving them and leading to overall productivity.
- Measuring individual performance helps in improving overall workplace productivity. It helps in creating better culture and building string relationship with management.
- By this it becomes easy to allocate resources to employees as their capabilities are identified by management (TenhiÃ¤lÃ¤ and et.al., 2016).
- It also helps in finding out problems that was faced by employee while completing their task.
- Another reason for doing this is to determine incentives of individual employee. It shows how well each employee has performed his task and achieved its targets. Giving incentive to employee encourage other to put more efforts in their work. Also, it helps in measuring level of performance of individuals.
LO7 Demonstrate the management skills required in international business to successfully
Engage and will support from employees at the workplace
The management skill set will help in the better handling of the vast engage of business operations that will help in the effective rise in the operational efficiency and effectiveness that will help in the better management of the business operations that will improve the efficiency of the business organisation. Some major skill sets that are been taken in effective consideration by the firm are as follows:
- Verbal communication: this approach will help in the better handling of the business operations that will support the effective rise in the operational capacity of Tesco plc in foreign market. The better verbal communication will aid to the rise in knowledge and understanding and help the employees to understand what to do and how to perform their respective tasks.
- Non verbal communication: this involves the techniques like hand gesture, written communication etc. That will help in effective management of the business functions at the work place of Tesco plc (Storey, 2014).
- Listening and problem solving skills: the manager at the work station must have the effective listening skills that will help the employees to have better sharing of their issues and get its effective solution of their problems and
- Negotiation skills: the manager must have effective negotiation skills that will help in better management of the problems and needs or demands of employees at the organisation.
Thus, this can be concluded that the better handling of HRM will help the cited retail firm to manage its business operations in a very effective way. This will help the Tesco plc to have a good market stability in India market and meet the operational requirements of their customers. The various models and theories that will be adopted by the cited firm will help in effective rise in its performance and will help the firm to generate a good amount of revenue by utilizing the skills of their employee's effectively.
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