Essay on Cultural peculiarities and traditional approaches related to work

Global economic trends, local economic factors (for instance, wage level and structure, distribution of income in the certain country and others).

Technological factors that change HRM procedures and increase the number of requirements to the workforce.

Changing demand of employees.

Customers’ attitudes and expectations.

Political factors and government regulations.

Unions’ activity.

Competitors’ policies analysis.

I would like to suggest a brief analysis of the most influential environmental factors for Tesco:
Political and legislative conditions have a huge impact because there are various regulations. Tesco uses all kinds of jobs, high and low paid, full time employment and flexible schedules, local employment (mostly the staff with lower wages) and the employment for highly skilled staff in the central locations like London.

For instance, the company employs various groups like student, disabled and elderly workers that have lower wages.
Economic factors play an important role as well and they are mostly out of the company’s control.

Demographic factor should be well analyzed as well, because such European trends as aging population and the increase in female workers influence the situation with the human resources.

The competitors’ activity is carefully researched by Tesco HR team too. Despite the fact that Tesco is a leading retailer in its sector in the UK, it should be noted that this market is highly competitive. Therefore the company should investigate the HRM approaches аs its major competitors, such Asda, Sainsbury’s and Safeway in the UK, and do the same kind of research on other markets as well. (Burt and Sparks, 2003)

Another important factor if company’s reputation that should be supported.

Conclusion

We should remember the nature of business, it is globalized and the situation on the local markets is influenced by the international situation and vice versa. Competition is huge, both local and foreign.

Human resource system should be a competitive advantage, a reliable support for the organization in such complicated business climate.

It is vital for any organization to understand the importance of the environmental analysis as a part of the strategic human resources management.

The usage of macro-focused techniques by HR department could become one of the major co competitive advantages for the organization. The success will depend on HR department ability to gather the information, on its full and careful analysis, on the quick and efficient reaction to the environmental factors.

Besides external factors that influence HRM, there are some other elements that need to be considered. These are the internal factors such as organizational structure, culture, human resources system and others.

I consider Tesco an excellent example of the modern global corporation that uses various methods on environmental analysis such as that Porter’s model and SWOT analysis on each of its market in order to ensure it has the effective HRM strategy.