Role of Human Resource Management in Organizations

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Question :

Topic -

Illustrating your analysis with examples including those covered during the module and examples from your own organisation or one known to you to discuss


  • Elaborate your analysis with examples by including those which are covered in the module and give examples from Tesco and Harrods organisation in order to examine the role of human resource management HRM in organisations and briefly review the link between HRM and wider organisational strategy.
  • You are required to mention David Guest as a guru in HRM also.
Answer :
Organization Selected : TESCO


Human resource management is considered as the process of training staff, employing and compensating them, developing strategies to retain them and policies relating to employees. HRM in context of business is quite beneficial as it helps to improve staff turnover, conflict resolutions, employee satisfaction and improve employee performance. Planning, directing, recruiting, organizing, performance appraisal and Training & development are the core functions of this department that drive towards gaining better outcomes for businesses.

The present report is based on two case study of two different organizations: TESCO and Harrods. This study justifies the role of HRM in companies and explain the link between human resource management and wider organizational strategy.


The Role of Human Resource Management in Organizations

HRM reflected a management plan to neglect of employees concerns, in their appeal to administration people, the more extravagant claims of their members held out promise of HRM as route to high and excellence performance (Collings, Wood and Szamosi, 2018). In simple words, all those activities associated within management of people and work in wide organization is known as human resource management. It concerned with set of functions and their application and will be viewed as system for administration of workers at workplace. It offers new model of management of staff at work built around efforts to increase business commitment. David Guest's model of HRM has 6 attributes of analysis, human resource strategy, practices, behaviour, performance and financial outcomes. The concept is prescriptive in sense that it is supported on assumption that management is distinctively different from conventional personnel administration.

In Context of TESCO-

All over the world companies are now facing extreme competition due to globalization, instability and market uncertainty. One of the main role-played by human resource management in TESCO is to maintain staffing level effectively (Farndale and, 2020). Firm expanded their business all around the world, it now has over 2,200 outlets including supermarkets and TESCO express stores to meet large number of consumers needs. In order to support organizational growth, company needs people that are well-trained, motivated and flexible and who effectively recognize as well as consider clients needs. Motivation is the procedure through which HRM encourage people to be effective and productive. The key role of this management in firm is to develop program for existing workers and motivation of staff members to step for betterment in business. Rewards and praise for hard-working performance is the source of employee motivation, that help to retain talented people with company for long period (Brueller, Carmeli and Markman, 2018).

Human resource professionals identify the needs and desire of staff and then make plan to fulfil needs in effective manner. Organization consider workers motivation is one of the most essential thing that supports continued growth and longer term success of business within retail sector. HRM within company motivate their employees by developing and increasing their skills, knowledge and job satisfaction through training and development sessions. Management create plan for this specific activity, which is quite beneficial in context of both workers and firm. It helps to encourage people and make them more able to work harder and support while achieving greater results by selling quality products to target market.

In Context of Harrods-

Harrods is one of the most popular brand in the world, their Knightsbride outlets has 1 million square feet of selling space with over 330 varied departments. HRM plays vital role in company as it helps to increase employee engagement and build strong workforce at workplace who are able to achieve organizational aims and objectives of business. In order to gain competitive advantages and continuing success of firm, employee engagement and commitment essential. Human resource department play their role in managing staff relationships, they change organizational culture to make business able to meets the needs of their workers (Barrales Molina, Kaynak and Gutiérrez Gutiérrez, 2018). Once applicants are hired, HR has a key role in making assure new people remain on board bys safeguarding organization culture, in doing so, human resource section add value bye helping firm to avoid any potentially damaging rifts that jeopardize their culture. HRM create positive environment within Harrods that helps to increase its employee engagement towards achieving objectives. Manager at company focus on making employee relations, in specific its employee turnover, high employee turn over decrease the productivity as well as profitability of company. Firm take action to reduce the impact of this act and improve employee engagement (Mpofu, 2016). Hierarchical structure of Harrods create difficulties for workers to communicate with seniors and identify their role. In context of this, HRM design new structure or change the existing ones make it flatter with people taking on more accountabilities, it helps to increase employee engagement rather than past few years.

Some essential roles of human resource department in TESCO and Harrods in addition to operative and managerial functions are advisory role, policy initiation, decision-making, leadership, competency building, mediator, welfare, linking pin role, so on and so forth.

Critically Review Link Between HRM and Wider Organizational Strategy

Human resource management is the top-level function concerned with setting board strategies and direction (Brewster, 2017). Firms have to sustain in such environment, there will be explicit links between business strategies and practices followed by management including development of staff. HR become the most important resource which give competitive benefits to firm and therefore, will be managed as well as valued in context of organizational strategies. Business aim to successfully link human resource department to overall strategy of firm and give appropriate emphasis to existing problems such as strategic reward systems, performance management and managing knowledge for strategic advantage. Organization is made up of people of varied ages, with different customs and profile, some performances well in group, others are motivated by challenging objectives and other are more analytical. To align with whole team and to manage these differences undoubtedly it becomes a difficult task or big challenge for firm, and that where importance of HRM at workplace come into play.

Human resource management provide benefits to company by managing their existing as well as new applicants effectively (Xing and, 2020). They used different methods and techniques to manage workforce. Motivation is the key to growth and success of business, after all motivated people work better. Human resource management play an important role in this procedure, they are able to inspire people at workplace, professional create comfortable and creative work area that helps to increase the motivational level of workers in effective manner. HR department and its team members has many accountabilities, to manage people at work place they utilize plan or strategy for example praise people. Workers always want to know when they have done a good job and work effectively. HRM tell employees where they did well and when they did not, honest praise is the key valuable tool of motivation. Positive comment will make people want to continue their success forward to further practices, by knowing that their work is valued will help company to motivate staff and manage people for longer.

But on the other hand, praise bring a lot of issues, some time honest praise by HRM in regard to workers performance when they are not doing good, decrease its morale and demotivate them. It will decrease productivity rather than before and might be increase employee turnover.

Human resource management practices also link with other organizational strategy such as increasing profit (Azmi, 2019). The profit margin of Harrods will increase when employees work effectively and deliver quality services or products to its consumers. HRM develop training and development plans for new and existing staff members which make them able to work perfectly and sell quality goods that increase profit margin of company rather than before. It helps to increase efficiencies in procedure, resulting in financial gain, job satisfaction, employee motivation, morale among people's, reduce employee turnover, enhanced firm image and also reduce workplace discrimination.

On the other side, when HRM do not consider the actual needs of specific skill's which help to increase probability, the outcomes will not be obtained positively throughout this program as it only increase the cost of activities. Human resource management without determining the need of skill that required to develop among workers will not be able to gain positive results.

In recent time, Human resource helps top brass of companies in shaping their strategies as much as firms warrants HR strategies to obtain attuned to their objectives and mission. In simple words, HR functions and practices which is not aligned with organizational strategies fails to accomplish vision and mission of firms.


From above analysis it has been summarized that human resource department is one of the most significant element of TESCO and Harrods, it helps to drive people towards gaining better outcomes. High employee turnover impact the bottom line of Harrods brand, it cost twice as much as existing workers' salary to train and find new applicants. By with the help and support of human resource management, firm will reduce employee turn over and motivate people by applying different methods at workplace. HRM know how to retain and hire new candidates for firm from the beginning.

Also read:- Reward System With The Advantages and Disadvantages

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