The who govern the company from within but they

The human resources management strategy (HRM) is
a plan which helps a company to apply its own HR functions to some certain
areas within a company.

The HRM strategy which is made
by a company might be for themselves alone but the strategy will have had
various influences during its creation from the external areas like government
regulation and also the changing trends in HR.

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In this assignment I will be
using Tesco as the company to try to show how both external and contextual
influences affect a company’s HRM strategy.

External Influences

The HR team of a business is a
very important part of a company because of the role they play , they are
responsible for staff member hiring , firing and also training and discipline
within the company , they basically are the department who govern the company
from within but they also are influenced by external factors which would  in turn have 
direct impact on the company like for example rules and regulations
which are set by the government and also the state of the economy.

Regulations –the Government have recently introduces
anew workplace compliance standard law , this law
With the introduction of new workplace compliance standards your human
resources department is constantly under pressure to stay within the law. These
types of regulations influence every process of the HR department, including
hiring, training, compensation, termination, and much more. Without adhering to
such regulations a company can be fined extensively which if it was bad enough
could cause the company to shut down.

Conditions –the economic state of a country greatly
affects how businesses in it operate , it can be of great help to a business
but a great pain also because if for example the country is in a positive
economic state it would mean that a company like Tesco is able to not only
retain but also hire more people because it is making profits but if not then
it would then mean that for Tesco to survive in a bad economy it would need to
make cutbacks on its stores and also staff members as well , this is one of the
greatest external influences on a company’s HRM strategy because they do not
control but have find a way to make it work for themselves

Technological Advancements –today there is technology been used every where from
hospitals to schools and businesses also .It is seen as an external influence
not only can it link staff together within the business but also it links the
business with the outside world , the HR department are the ones alongside with
the IT department who have to ensure that everyone understands how to use the
new technology in the best way possible as it will benefit them in the long run
on how they provide services to their customers and it also reduces staff costs
as a computer can do the work of a department

Workforce Demographics – when new staff members come into a company to replace
the older and now retiring staff it becomes clear that the HR team have done
something to attract into the business the younger generation .They will need
to do this because of the sjills which the young generation posses which the
older generation may not have like competence with technology which would
benefit the company.

Internal Factors

Skill Levels

When a company grows it will encounter new or more
administrative or operational needs which cannot be done by the current staff. Rather
than the company hiring in new staff they could instead provide the staff with
the training to make able to perform the new tasks .



Companies will always try to get the staff
productivity at a high level ,the HR department to do offer them offering them
clear job descriptions ,morale building activities like bonding trips and also a
well ness program as a way to try to drive productivity in the business


Budget – the HR team of a company along side with
the accounts team are responsible for the budget of the company over a certain
time ,they are they people who evaluate how and when and also where money is
needed within the business. Because of this they only hire those who are best
qualified to help the company reach its objectives. They also provide funding
for the different departments in the company who need investment like the marketing
department who will need money to perform their duties





Today we see that the
concept that women are home makers is been fazed out as there are more women in
the work force who are competing and also working alongside their male colleagues,
this is seen in most if not all businesses today Tesco also included. This
system is seen as forward thinking but it also has it draw backs as well as
advantages , one disadvantage is that if for example a women comes in a male
dominated industry like logistical driving for a company like Tesco the men who
are there would need to be trained on how to alter the way in which they relate
to themselves  because of the presence of
a woman so as not to face claims of bigotry or discrimination the same can be
said if there is a new staff member with a different religion . On the positive
side this can be seen as an advantage because the new different workers may
bring in new ideas to the company on how they feel it can perform better.

This will have a direct
impact on the HRM strategy of the company because they will then need to be
more expansive to ensure that discrimination in any form does not occur and
also assertive on the implementation of employment laws within the company
because now that they have female employees alongside staff of different religions
and beliefs they will need to bring laws into Tesco that are there for the well
being and also safety of them , this could be anything from the equal pay act ,
discriminations act and also equality as well.

Technology – with the
speed at which technology is been made to fit into our everyday life both at
home and also at work it is  seen as a
positive because of the speed at which it helps to complete or carry out a task
but also as a negative because it would mean that the company like Tesco who
offer self check out would not need to employ its human cashiers as  computers can do the same job as they did ,
this would mean a lot a redundancy within the company. But Tesco would still
need to have humans within its store as machines can run into problems that
would need a human to step in to fix . This will have a impact on Tesco HRM
strategy because it would mean that for the staff  jobs are safe they would need to be trained
to work alongside the machines in the area of stocking for example were the
level of stock needed or in the store is stored on a data base in a computer .

Globalization and its implications

businesses are expanding beyond their borders (multinational) , a company that
becomes a multinational company will put on the HR manager new tasks , the HR
department will need to ensure that the staff have the required skills ,
knowledge and also ability to adapt to cultures to be able to hndle and work in
the different countries that they are assigned to. For them to be able to
achieve this they must put their staff through training to prepare them for
their assignments any where they are sent to.

order to meet this goal, the organizations must train individuals to meet the
challenges of globalization. The employees must have working knowledge of the
language and culture (in terms of values, morals, customs and laws) of the host

Corporate downsizing.

When a
company wants to downsize as a way for it to create more efficiency ,
downsizing reduces the number of staff in the business, the HRM team play a
vital role during the downsizing process, they will need to ensure that proper
communication channels are created at the time, they will need also reduce the negative
effects of rumors to ensure that people are only feed factual information, the
HRM team will also need to handle the staff layoffs that come with downsizing which
are unfortunate but need to happen.


Human Resource Development (HRD) is the outline for helping employees
develop their personal and organizational skills, knowledge, and abilities.#

he main objective of strategic human resources management (SHRM) can be
specified as “to ensure that human resource management is fully integrated into
strategic planning, that HRM policies cohere both across policy areas and
across hierarchies and that HRM policies are accepted and used by line managers
as part of their every day work” (Regis, 2009, p.6).


Generally, the main approaches to SHRM are divided into three main
categories: universalistic, contingency, and configurational. Universalistic or
‘best practice’ approach to HRM relates to the viewpoint that there is a set of
best HRM practices and their adoption is going to generate positive results
regardless of the circumstances associated with organisations.

Universalistic approach states that ‘best practices’ in relation to a
wide range of HR issues such as employee recruitment and selection, training
and development, employee motivation is equally applicable to each organisation
regardless of the nature of unique aspects organisations might have.

Contingency or ‘best fit’ approach on the other hand, disagrees with the
presence of universal prescriptions to HR issues and stresses the need for
integration between HR policies and a wide range of other organisational

Configurational approach to SHRM “stresses the need for practices that
are contingent with organisational circumstances, but in addition emphasizes
the need for horizontal or internal fit” (Sparrow et al., 2004, p.158). To put
is simply, configurational approach recognises the validity of ‘best
practices’, but at the same time, accepts the importance of adjustment of HR
policies with the overall organisational strategy.