Effective human resources management has quite a large effect on the competitiveness of a business.

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A2 – Competitiveness

        Effective human resources management has quite a large effect on the competitiveness of a business.  In this section, I will explain how they can improve the competitiveness of Tesco.

        Human resources are in charge of recruiting staff for Tesco.  This is a very important aspect that contributes to the overall competitiveness of Tesco.  Tesco needs to hire the right people for the job position that they are looking to fill.  If they can find the right people who are very efficient at their particular job position, then they will obviously be a very efficient organisation.  This means that they will be quite competitive with other competitor businesses due to their cutting of costs.  Tesco will have money that, had they not been efficient, would have to be spent on an employee’s wages in order to get the job done.  

        If the human resources department itself is efficient, they will save money in a variety of different ways.  

        They can make the costs of processing the applications and interviewing the candidates as low as possible in order to increase their efficiency.  This can have both advantages and disadvantages.  The main advantage is that, if it is efficient, a lot of money can be saved.  The main disadvantage is that, to decrease labour costs, they will take less time with the application process which could mean that quality is lost and that an employee who is not as suitable as other candidates is appointed the job, therefore reducing the productivity of the business in the long run.

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        Tesco always needs to be correctly staffed.  If Tesco are understaffed, they will lose their business economies of scale, which leads also leads to a loss of customers and profits.  Understaffing is also very expensive to eliminate because of modern legislation regarding things such as redundancy payments, consultation, minimum periods of notice, etc.  Future staffing needs will derive from the following:

  • Sales and product forecasts
  • Technological changes
  • Variations in the flexibility, efficiency and productivity of labour as a result of things such as training, organisational change, etc
  • New legislation

Another thing that can improve the efficiency ...

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