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A comprehensive evaluation and analysis of the existing human resource strategy within Tesco (CaseStudy)

A comprehensive evaluation and analysis of the existing human resource strategy within Tesco (CaseStudy)

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An essay for the 2011 Undergraduate Awards (Ireland) Competition by Jo-Anne McGinley.
An essay for the 2011 Undergraduate Awards (Ireland) Competition by Jo-Anne McGinley.

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Published by: Undergraduate Awards on Aug 31, 2012
Copyright:Attribution Non-commercial


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Tesco, the UK’s biggest retailer, was founded in 1919 by Jack Cohen when he began to sellsurplus groceries from a stall in the East End of London. From a first day’s profit of £1,Tesco has grown significantly as a company, nurturing profits of over £3.1 billion in the year ending April, 2009. (Tesco, 2010)
Tesco now operates internationally with divisions in 14countries. With such a complex company and over 470,000 employees worldwide, it is likelythat the existing human resource strategy will have great emphasis on the success of theorganisation, and as such, has utmost importance. For the purpose of this case study, themajority of evaluation will be placed on its core UK store operations.
Aim of Case Study
The aim of this case study is to provide a comprehensive evaluation and analysis of theexisting human resource strategy (HR) within Tesco, whilst considering the following:
The key components of a HR strategy and the implications which both the internal andexternal environments have on decision making
The role of the CEO, directors and line managers within Tesco in relation to thesuccessful implementation and development of the HR Strategy
The likely impact on strategic integration, commitment, flexibility and quality will bediscussed, all of which will be observed in conjunction with the various HR flows.
The Key components of Tesco’s Corporate and Human Resource StrategyBest Theory
Delery (1998) believes that the issues surrounding Strategic Human Resource Management(SHRM) have been based in large part on the notion that a firm must align its humanresource management practices to support business objectives. As such, when developingthe overall business strategy Tesco would have examined what is involved in a HR strategy,in order to maximise the level of strategic integration or ‘fit’.Dyer and Holder (cited Brewster et al, 2008) suggest that whilst a wide variety of issues areaddressed in such strategies, at a minimum the HR strategy should encompass four maincomponents:1.
 A Mission statement or a set of prioritised goals for the function and the major subfunctions (e.g. training, compensation)2. A proposed organisation structure3.A programme portfolio to outline priorities and policies4.A budget to address the issue of resource allocation.
Best Practice
In terms of Tesco, each of these components outlined by Dyer and Holder play a vital role inthe overall business and human resource strategy.
1 – Mission Statement or set of prioritised goals
Core Purpose & Values
Prime to their strategy, Tesco’s core purpose or mission statement is “to create value for customers to earn their lifetime loyalty.” Their success depends on people, both the peoplewho shop with them and the people who work with them. (Tesco, 2010)
As a result, Tescocreated a series of values which fall under two umbrella terms:
No one tries harder for customers2.Treat people how we like to be treated.
Ten years after the values were first developed, Tesco staff refreshed the Values to reflectthe business today and where they wanted to work in the future.Re-energised in 2008,Tesco’s values are seen as their code of conduct, the way that they have chosen to workand drive how they do business. (Tesco, 2010)
Corporate Strategy
 Alongside the mission statement and values, Tesco have five clear goals which make uptheir five-fold strategy. Tesco’s five-fold strategy consists of:
Core UK:
To grow the core UK Business
To put community at the heart of what they do
Non- Food:
To be as strong in non-food as in food
Diagram Source:
Tesco (2010)

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