ASSIGNMENT SAMPLE ON INTERNATIONAL HUMAN RESOURCES DEVELOPMENT

1.0 Introduction

1.1 Background of the Study

Organisations operating at an international level need to develop effective internationalisation strategies for enhancing the level of production, efficiency, and skills of employees. According to Zarqan & Sukarni (2017), moreover, it also helps in attracting skilled individuals to the organisation through its policies of diversification. In the case of Tesco, the “Diversity and Inclusion” policy is being emphasised through a digitalisation approach (Tesco Plc, 2020). The launch of “Every Voice Matters Program” was also an effective initiative as a part of the IHRM to make the employees feel valued. The leadership plays an important role in organizations to develop the human resource strategies. The leadership strategy in human resource development is also considerable in the Human Resource Development in Tesco.

1.2 Rationale of the Research

Although the growth rate of employee development was positive for the UK, it was negative at the international level by 15% approximately. Based on the present pandemic situation, the growth trends in employee numbers have been retarded both in UK and other nations also at a rate of 8.92% from that of 2019 (Statista, 2021). This rate further intensified in 2021 by 13.81% decrease in the number of employees from 2020.

Figure 1: Employee Growth Rate at Tesco at International Level

(Source: Tesco Plc, 2020)

Decrease in the number of employees in 2019 and 2020 had led to a fall in revenue growth. There is negative growth of 9.37% approximately in 2021. Hence, to ensure higher revenue margin, it is essential to enhance the employee number in the company as it can help in maintaining a positive productivity rate (Tesco Plc, 2020). In contrast to this, there was an increase of 11.71% from 2018 to 2019 as there was an increase in employee growth.

1.2.1 Aim and Objectives

This study aims to analyse the international human resource development at Tesco. In order to research this aim, it is essential to focus on certain objectives, which are as follows:

• To analyse the effectiveness of the HRD practices of Tesco
• To critically evaluate the international HRD practices at Tesco and the leadership models
• To identify the challenges faced by the HRM to implement the policies
• To analyse the impact of HRD on international business performance of Tesco.

1.2.2 Research Significance

Implementation of IHRM (International Human Resources Management) helps in managing a culturally diverse workforce in various parts of the globe. However, complications raised in management of employees under the regional human resource approach. This is a considerable factor to understand the difference between regional human resource and international human resource approach. As per the views of Haddock-Millar & Rigby (2015), this study will help to analyse the gaps and strengths in the HR practices at Tesco that will help to enhance its business performance.

1.5 Research Questions

• In what way do the HR practices affect the international business performance at Tesco?
• How are the leadership practices and other policies effective for developing HR at Tesco?
• What challenges are faced by the HR department to implement favourable HR policies to support and manage a diverse workforce?

2.0 Literature Review

2.1 Importance of HR in International Businesses

In order to increase the level of efficiency and employee numbers, the organisations must focus on the issues raised by employees. In the opinion of Krypa (2017), regular communication with employees and guiding and enhancing their skills for a better future will help to improve business operations and enhance employee welfare as well. Diversity is an important aspect that every organization needs to adapt before undertaking the strategies of internationalisation of businesses. For instance, in the case of Tesco, the organisation has also adopted and emphasised the “Diversity and Inclusion” policy, and regularly trains the leaders and Directors for ensuring effectiveness in change management based on cultural diversity in every country (Tesco Plc, 2020). This is because the operation of business in international market requires transparent diversity and inclusion policy for the management of workforces.

2.2 Critical Analysis of HR practices at Tesco

The organisations have focussed on training especially in the communications sector to ensure higher data security. The “colleague training program” has also helped in complying with the regulatory practices of HRM (Tesco Plc, 2020). Along with this, the Directors of the company are also trained to effectively adapt change management practices based on the “Diversity and Inclusion Policy” to support a diverse workforce and make every employee feel valued. According to Zarqan & Sukarni (2017), there are a gap in the HR program, which is regarding lack of training in overall working policy rather than focus on only food supply chain, technological and legal attributes. At the international level, the average growth rate of employee development at Tesco was negative, which showed positive growth in 2019 only.

2.3 PEST Analysis to Identify the Factors Affecting HR Practices

In order to identify the macro-environmental factors that affect the HR development at Tesco, a PEST analysis have been conducted, which are as follows:

Table 1: PEST Analysis

(Source: Self-developed)

From the PEST analysis, it can be said that apart from the technological factors, no other external factors have a positive impact on HR development at the global level (Sammut‐Bonnici & Galea, 2015). Based on the pandemic situation and implementation of Brexit has imparted a long-term negative impact on the supply chain operations. Thus, the revenue margin has also fallen by 9.37% by the end of 2020 (Tesco Plc, 2020). Moreover, there is also large-scale migration of laborers leading to gaps in skilled employees which is considerable for Tesco to maintain stability in employee development rate.

Figure 2: Growth in Revenue Margin

(Source: Tesco Plc, 2020)

2.4 SWOT Analysis of HR Operations at International Level of Tesco

In order to identify the strengths and weaknesses of the company’s operations that affect HR development, SWOT analysis has been conducted, which are as follows:

Table 2: SWOT Analysis

(Source: Self-developed)

Thus, from the above table, it has been identified that the organisation has certain strengths based on its advanced features including hiring large-scale employees even in a pandemic situation also (Phadermrod et al. 2019). The organization also focused on employee welfare programs, by developing long-term sickness leave of about 12 weeks, and support to health expenditures (Tesco Plc, 2020). Improved development of communications and technology have also led to the efficient working of employees through an integrated approach.

2.5 Theoretical Evaluation

The primary purpose of the “organisation behaviour theory” is to identify and analyse the behaviour of employees in specific organisational setup. According to Aithal & Kumar, (2016), this will help the HR department to identify the issues and adapt change management accordingly to support a diversified work culture. Apart from this, application of X and Y theory will also help to identify and analyse the role of employee motivation with that of staff performance and retention. In the opinion of Lawter et al. (2015), the X and Y theory reflects that the managers are in favour of micromanaging employees by considering them as negative and forcing them to have a hard work culture. In contrast to this, managers also prefer to apply democratic and transformational leadership skills. In this situation, employees are provided with sufficient freedom to show their skills and the manager identifies the gaps and rectifies them accordingly (Aithal & Kumar, 2016). This helps to create a friendly working environment.

Figure 3: Theory X and Y

(Source: Aithal & Kumar, 2016)

2.6 Literature Gap

It has been identified from the literature review that there are significant gaps in the analysis of the present issues in the organization at the international level. Hence, lack of information and concepts have been driven based on the present trends of employee management at a global level.

3.0 Methodology

3.1 Research Philosophy

Selection of appropriate research philosophy is essential to select at the first stage after determination of the research problem. This will help to direct the entire process of conducting the research. There are various types of research philosophies, including, positivism, interpretivism, realism, and pragmatism. According to Saunders & Bezzina (2015), this research will be conducted based on positivism research philosophy. It will help to depend on the gathered factual knowledge gathered through reliable sources. Along with this, it will also help in objectively interpreting the research results.

Figure 4: Research Onion

(Source: Saunders & Bezzina, 2015)

3.2 Research Design

There are various types of research designs including deductive, inductive, and mixed approaches based on the nature of the study. However, in this case, a mixed research approach has been selected that will help to test the validity of the previously developed theories and also help in identifying the certain changes that are required in the past theories and concepts (Ørngreen & Levinsen, 2017). The mixed method has been considered in the study as it is effective to provide a qualitative and quantitative information. It can help in measuring the human resource development of employees in the company with in-detail information as well as numeric values.

Table 3: Research Design

(Source: Self-developed)

3.3 Data Collection Strategy

Since the research will be conducted depending upon the secondary data, hence the data will be collected separately with different approaches. The.  secondary data will be collected from the various relevant websites, company reports, articles, and journals. The secondary data will be collected based on the number of employees in the organisation and the fluctuations of revenue margin along with (Ørngreen & Levinsen (2017). Moreover, data on the implementation of specific HR policies and their efficiency will also be collected.

2.4 Data Analysis

The secondary data will be analysed with the help of thematic analysis. The developed themes will be critically evaluated based on the previous researchers regarding this topic to gather past trends of HR development at global level.

2.5 Access to Data Sources

In order to access the secondary data, Google Scholar and ProQuest will be used for collection of relevant journals for the study. Apart from this, the secondary data will be accessed only through reliable websites and no restricted websites will be used unethically for gathering data. Weekly checking of the result section on the website will help to get access to the gathered data.

Bibliography

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Statista, 2021. Average number of employees at Tesco. Retrieved on 29^th June 2021 from https://www.statista.com/statistics/490882/tesco-group-united-kingdom-uk-number-of-employees/

Tesco Plc, 2020. Serving shoppers a little better every day. Retrieved on 29^th June 2021 from https://www.tescoplc.com/media/755761/tes006_ar2020_web_updated_200505.pdf

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