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TRANSCRIPT
Strategic Human Resource Management
The Sainsbury PLC
Strategic Human Resource Management
2
Table of Contents
Introduction ........................................................................................................................................ 3
Part 01 ................................................................................................................................................ 4
1.1Importance of Strategic Human Resource Management ........................................................... 4
1.2Purpose of SHRM Process ........................................................................................................ 5
1.3 Contribution of HRM process to Organisational Objectives ................................................... 6
Part 02 ................................................................................................................................................ 7
2.1 Factors for Human Resource Planning ..................................................................................... 7
2.2 Identify the Human Resource Requirement ............................................................................. 8
2.3 Human Resource Planning Process .......................................................................................... 9
2.4 How HR Plan Assist to Meet the Organisational Objectives ................................................. 11
Part 03 .............................................................................................................................................. 12
3.1 Purpose of HRM Policy of the Organisation.......................................................................... 12
3.2 Impact of Legal Framework of the Organization ................................................................... 13
Part 04 .............................................................................................................................................. 14
4.1 Impact of Organisational Structure on HRM ......................................................................... 14
4.2 Impact of Organisational Culture on HRM ............................................................................ 15
4.3 Measure the Effectiveness of HRM process .......................................................................... 17
4.4 Recommendation for Better HRM Process in the Organisation ............................................ 19
Conclusion........................................................................................................................................ 20
Reference .......................................................................................................................................... 21
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Introduction
Human Resource Management (HRM) is the process of effective and efficiency utilization
of employees to gain the competitive advantages on the organisation. The traditional HRM
perspective was continuing the HRM function to do the day-today organisational
functions. However, today’s it takes the strategic view which links the HRM strategies
with overall business strategies of the organisation. According to the Strategic Human
Resource Management (SHRM), organizations utilize their employees to gain the
competitive advantages on organization. The assignment explains the SHRM perspective
of Sainsbury PLC which is the third largest supermarket chain in UK. The first part of the
assignment describes that importance of SHRM and purpose of the SHRM process of the
organisation. Second part explains the strategic human resource planning process of the
organisation and third part discuss about the human resource policy and legal framework
within the organisation. Last part of the assignment explains that impact of the
organisational structure and culture on human resource management of the organisation.
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Part 01
1.1 Importance of Strategic Human Resource Management
According to the Katzenbach and Douglas (2005) Human Resource Management means
the effective and efficiency utilization of the employees towards the organisational
objectives. The traditional view of the personal management considers employees as just
works of the organisation. However, HRM describes the employees as most important
resource for the organisation to gain the competitive advantages for the organization more
than its competitors.
According to the Kim and Ryu (2011) Strategic Human Resource Management is advance
concept more than HRM which means the core-relation between human resource
management and overall organisational objectives. According to the SHRM process, the
employees are utilizing their talents and skills to attract the customers for the organisation
in order to gain the competitive advantages. SHRM give the direction to organisation on
how to build the foundation for strategic advantages by creating an effective organizational
structure and design, culture, employee value proposition, systems thinking, an appropriate
communication strategy and preparing an organization for a changing landscape, which
includes downturns and mergers & acquisitions (Kar, 2012). Therefore, SHRM is not
separate process and it directs the employees to win the market. Following importance can
be seen through the SHRM process for organisational development;
SHRM process emphasizing the organisational codes of ethics, managing the
societal impact of business decisions
Enhancing the solidifying business performance through personal performance of
the employees
Developing the employer branding for the organisation it generating the easy
recruitment, long term retention of the employees and employees’ satisfaction
Reduce the cost for employees in term of reducing the cost for recruitment,
selection, training and development and compensation (Greer, 2001)
To build the linkage between HRM strategies and overall organisational strategies
in order to gain the sustainable market share through customers
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1.2 Purpose of SHRM Process
Kar (2012) explain Strategic Human Resource management is boarder concept within the
organisation. The basic objective/ purpose of SHRM are gaining the competitive
advantages through effective utilization of the employees’ capabilities. As the importance
of SHRM process, it is generating the benefits for organization. Therefore, it is need to
identify the basic purpose of SHRM for the organisation. The Sainsbury PLC is a leading
organisation in UK (www.telegraph.co.uk, 2015). Sainsbury's is the third largest chain of
supermarkets in the United Kingdom with a share of the UK supermarket sector of 16.9%.
Therefore, Effective SHRM process is need to Sainsbury to reach for their objectives.
According the following figure there can be able to identify four basic purposes of SHRM
process in Sainsbury PLC (www.j-sainsbury.co.uk, 2015).
[Figure 01: Purpose of Strategic HRM in Sainsbury PLC]
Source: Designed by author
First purpose of SHRM process is maintaining the employees within the organisation in
order to support for the organisational preserve. The Sainsbury PLC apply some HRM
functions for better maintaining of employees such as recruitment, section, performance
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appraisal, compensation management, disciplinary management and fulfill the legal
formwork of the organisation (Kim and Ryu, 2011). Second purpose is Development of the
employees in order to develop the overall organisation. As the importance of personal
development, they are encouraging the employees’ development and learning. The
development means the periodical enhancement of employees’ knowledge, skills and
talents (Jamesand David, 2000). Third purpose is employees’ motivation. Motivated
employees’ pool is valuable resource for the organisation. Therefore, Sainsbury PLC
applies different methods to motivate the employees for their job responsibilities. Last
purpose is employees’ retention. Employees’ retention is reducing the organisational cost
while increasing the sustainability. Therefore, Sainsbury PLC encourages the lone term
retention within the organisation and they identify retention as the one purpose of SHRM
process.
1.3 Contribution of HRM process to Organisational Objectives
According to the Lawlerand Mohrman (2000) simply HRM is the supportive service for
the organisation which assists to continue the basic business performance of the
organisation. Therefore, HRM functions should support to organisational basic business
objective by providing effective and efficiency employees pool. Therefore, employees can
be able to identify the need of organisation and develop the strategies to gain the
competitive advantages. Greer (2001) say Human resource management should provide
the capable employees for all the business performance continuing by the organization.
The Sainsbury continue basic HRM functions to attract the employees retain the
employees and develop the employees’ skills and knowledge. As the importance of HRM,
the overall success of the organisation is depending on the contribution of human resource
process of the organisation. Because of that, it is need to provide outstanding contribution
to continue the business performance (Katzenbach and Douglas, 2005).
The HRM process of Sainsbury PLC is offer the decision making authority for their
employees in team level and obtain the employees’ ideas to developing strategic decision
for the organisation (www.j-sainsbury.co.uk, 2015). Therefore, Sainsbury develop the
people’s capacity through learning at all levels, with encouragement of self-management
and team capabilities to enable and support performance improvement and organisational
potentials. The Sainsbury encourage the high performance management practices such as
team working, team innovation, employees’ participation and employees’ engagement in
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their performance level. These high performance management practices motivate the
employees towards the organisational goals and objectives (Kar, 2012). The HRM process
of Sainsbury continues the periodical performance evaluation process and identifies the
employees’ performance and makes the arrangement to developing employees’
performance. The training and development process of the organisation generate more
critical contribution on HRM process in order to overall organisational objectives through
outstanding employees’ performance (www.telegraph.co.uk, 2015).
Part 02
2.1 Factors for Human Resource Planning
Kim and Ryu (2011) say Human Resource Planning (HRP) is important HRM function
with the organization which develops the future planning for human resource need of the
organsation.
HRP process identifies the gap between current capacity of the employees and expected
capacity of the human resource in order to develop the strategies for balancing these two
situations (Katzenbach and Douglas, 2005).
Greer (2001) defines Human resource planning as the organisational HRM process is
important to continue the business without excesses or surpluses of the employees. For the
certain time period, the organisation is continuing the HRP process and determines the
need for human in future. The results of HRP is using for successful maintaining of other
HRM functions such as recruitment, selection, compensation, performance evaluation and
training and development.
The Sainsbury PLC continues the HRP process to determine current staff need for the
organisation for specific time period (www.j-sainsbury.co.uk, 2015). The organisation
fulfills their HR need through internal methods as well as external methods. However, the
organisation identifies three types of factors which effect on the organisational HRM
planning process (Rogg et al, 2001).
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Organisational factors
The organisational policies, legal requirement and procedures
Organisational culture and structure
Job designing process
Available vacancies of the organisation
Current salary scale of the organisation
Training and development methods
Job description
Job responsibilities and task, duties
Personal factors
Personal qualities of internal or external candidates
Knowledge, skill and abilities
Willingness to work
Motivational level
Positive attitudes
Salary expectation
External factors
Jobs in similar organizations in job market
Competitors’ recruitment strategies
Compensation of other organisation
Legal and regulatory framework of government and job industry
2.2 Identify the Human Resource Requirement
Rogg et al (2001) define the main purpose of the human resource planning process is
determined the human resource/ employees requirement in given situation. It is essential to
identify the HR need for specific time period, if not it is unable to continue business
process usefully.
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Therefore, Sainsbury PLC conducts the “HR Audit” for specific time period to determine
the employees’ need for the organisation. Sainsbury get the support from all the
department heads to identify HRM need for each department (www.j-sainsbury.co.uk,
2015). As the example, Sainsbury conduct the formal meeting with department heads to
identify their human resource need for the specific time period, normally for one year.
After that, it is developing the “succession plan” and “manning table” which hare to formal
documents which describe the internal HRM needs. The succession plan provide the idea
that who can be promoted for higher position with their experience two match the gap of
human need. These documents are providing the clear idea regarding how many vacancies
are in there in the organisation and which methods can be used to fill those vacancies
(Greer, 2001).
The Organisation transfer employees from their one factors/supermarket to another as the
method of filling the vacancies (Lawler and Mohrman, 2000). The formal HR audit
reduces the cost of recruitment because it avoided the immediate recruitment and errors
which make with immediate recruitments. It can be able to analysis the relative importance
of each job of organisation and develop the job description for better working process as
well as employees’ satisfaction. As well as ensure the organisational responsibility are the
job maker for external parties through identification of the human resource requirement for
the organisation (Kar, 2012).
2.3 Human Resource Planning Process
As the importance of human resource planning process, the Sainsbury PLC has been
developed HR plan for the organisation to determine the HR need for coming year.
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[Figure 02: HR planning process of the organisation]
Source: http://www.whatishumanresource.com/hrp-process
Above diagram present the HR planning process of Sainsbury PLC which consists with
three basic steps.
1-Step
According to this step, Sainsbury is forecasting the human resource requirement by using
two views such as employees’ demand and employees’ supply. The demand means the
internal employees need for coming year (Jamesand David, 2000). Sainsbury apply
different methods for this.
Discuss with team leaders and department heads
Use the succession plan and manning table
Consider the turnover rate
Supply forecasting is determining the external labour supply for the organisation.
Following methods can be used for it;
Employees’ need for competitors
Compensation expectation
Legal framework
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Recruitment agencies
Educational institutes
2 -Step
Compare the employee need and supply level is second step of organisational HRP
process. Here, Sainsbury compare the need and supply. If demand is high than external
supply, they are using following methods (Desseler, 2007);
Continue the recruitment process and immediate recruitment
Get the support of recruitment agencies
Outsources the employees
Attract candidates through high compensation and high benefits
As well as there can be seen, more employees in the organization than its need. Within this
situation, Sainsbury apply following strategies;
Encouraging the voluntary retirement
Pay compensation and dismiss the employees from organisation
Stop the recruitment
Transfer for other branches
3- Step
The final stage is matching the HRP strategies with organisational HRM process. Here,
Sainsbury PLC encourages the employees to continue learning as the method of train them
for future employment needs. As well as continue the HR audit to determine the current
employees’ level within the organisation.
2.4 How HR Plan Assist to Meet the Organisational Objectives
According to the Rogg et al (2001) Human Resource Planning process as the main HRM
function of the organization is using to continue appropriate employees’ level within the
organisation. If there is more or less employees in organisation, it directly effect on the
organizational performance. When developing proper HR plan, the Sainsbury PLC expect
to gain following benefits for the organisation.
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1. Employees attracting and retaining strategies
2. Employees’ development
3. Link HRM strategies with overall organisational objectives
Therefore, this HR plan provides effective contribution on organisational HRM purposes.
Firstly HR planning process determine suitable strategies to personal and professional
development of the existing employees of Sainsbury because HR plan identify the future
HR need and the organisation encourage promotion for current staff to fill future vacancies
(Desseler, 2007). Therefore, HR planning process and training and development process
working together to enhance the employees’ skill and knowledge for future organisational
needs.
Secondly, the HRM plan encourages the outstanding performance of current staff members
because the organisation applies strategies to gain more contribution from existing
employees without recruitment more employees (Lawlerand Mohrman, 2000). As well as
it link with effective compensation management process when provide fair compensation
for employees’ performance. The HR plan of the organisation directly effect on the
recruitment and selection process. As the most important organisational HRM functions,
the recruitment and selection processes have been modifying through HR plan and provide
the information for recruitment (eg: numbers of new recruitment). HR planning makes the
link between organisations with external job market as well as society through the
recruitment and other HRM functions. The organisation has developed the relationship
with candidates, legal authorities, competitors, government and recruitment agencies when
recruiting the employees (Jamesand David, 2000).
Part 03
3.1 Purpose of HRM Policy of the Organisation
According to the Jamesand David (2000) Human Resource Policies means the clearly
mentioned statements regarding the organisational HRM procedures.
HRM policies can be identified as the set of organisational statement which shows the
clear path for employees and employer to make the effective solution in Employee related
matters (Rogg et al, 2001).
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HRM policies are vital for organisational are serious about resolving personal and
professional issues within the organisational context. The Sainsbury PLC is intending that
these HRM policies are help maximize the effectiveness of organisational HRM functions.
There can be seen three basic characteristics of Sainsbury HRM policies as follows;
HRM policy organization has consistent, well-written & legal policies and
procedures
HRM polices should prove HR advice for the organization needing help with HR
related issues of the organisation
Individual and organisation should serious about serious about the HRM
procedures through HR polices
There can be seen three basic purposes of HRM policies of Sainsbury PLC;
1. HR polices keep the fair organisational condition for all the employees in their
business performance within the organisation. HR policies and procedures support
equal employment opportunity in giving fair treatment to applicants and employees
throughout the hiring process and the employment experience. As the example, the
personal prejudice has been avoided in recruitment and selection process and gives
the opportunity for candidates’ knowledge and skills.
2. HRM polices implement the strategic view for HR practice in organisation. HRM
functions link with the overall organisational strategies and leads the employees
with self-motivation (Lawler and Mohrman, 2000)
3. Continue the legal and regulatory framework of the organization as well as industry
or government through the HRM polices. Therefore, HRM polices establish the
accurate organisational structure
3.2 Impact of Legal Framework of the Organization
The Sainsbury PLC has to face legal and regulatory context when they are continuing the
business within the industry. These regulatory frameworks protect the employees and
society from different unethical behaviour of the organisation as well as provide the fair
treatments for the organisations (Desseler, 2007). There can be seen different legal
conditions which should applicable for Sainsbury PLC.
Race Relation Act
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Disability Discrimination Act (DDA)
Data protection Act - 1995
Equality Act
Sex Discrimination Act- 1975
It is essential to continue these rules and regulation within the organisation because it is
compulsory to all the organisations as their industry. If, the organisation is unable to apply
these for the organisation, it may be the reason for punishment from UK government. The
application of these rules and regulation can be cost to the organisation because it is need
to fulfill the documentation needs, cost for lawyers and have to do necessary payment for
the organisation on behalf the of organisation. As well as Sainsbury has to get the support
of external parties such as lawyers and legal institutes when they are continue the
regulatory framework (Kramar et al, 2005). The other impact of these legal conditions is
Sainsbury has accountability for their internal and external stakeholders such as
employees, owners, customers and society.
However, there can be seen some of positive impact of the legal framework of the
organization. When the Sainsbury continue all the necessary rules and regulation it can be
able to enhance their reputation for their transparency of business performance. This
reputation can be use as the one indicator for employer branding process of the
organisation (www.telegraph.co.uk, 2015).
Part 04
4.1 Impact of Organisational Structure on HRM
According to the Armstrong (2012) the organisational structure is the typically hierarchical
arrangement of lines of authority, communication, decision making ability, duties and
responsibilities of the organisation. It provides clear understanding about roles, power and
authority each level of the organisation.
The Sainsbury says that, their organisational structure is depending on the organisational
objectives, strategy and managerial perspective. According to the organisation their
decision making authority is decentralized towards the team leaders as the usage of
strategic HRM within the organisation. As the HRM is main organisation function, it has
been impact by the organisational structure of Sainsbury PLC. The usage of the
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organisational structure and its performance view impact on all the HRM functions within
the organisation in order to employees of the organisation (www.telegraph.co.uk, 2015).
The organisational structure makes the impact on communication process within the
organisation. The Sainsbury use the decentralized organisational structure and it
encourages the employees to participation for the decision-making process of the
organisation. The communication process takes the employees’ ideas and information on
decision making process. As well as business strategy continue the fair organisational
administration activity such as documentation process and basic employees’ management
activities such as compensation and benefits management. In other hand, the organisational
structure is encouraging the employees for self-motivation when they are participating to
the decision-making process within the organisation (Kramar et al, 2005).
The organisational structure of Sainsbury continues fair relationship between employees
and the employer. As the importance of employees’ relation process, the Sainsbury
provide the opportunity for Trade Unions (TU) in order to encourage the negotiation in
employees’ related matters (www.j-sainsbury.co.uk, 2015).
4.2 Impact of Organisational Culture on HRM
Organisational culture is the system of shared assumptions, values and benefits which
manage the employees/ human of the organisation (Desseler, 2007). The share values
direct to employees that their dress, act, performance, behaviour and responsibilities in the
organisation.
According to Sainsbury PLC, they are identifying the organisational culture as the set of
belief which make the impact on employees to regarding the shared values, beliefs and
code of conducts. According to Sainsbury, they are encouraging the “people based” culture
which developing personal skills towards the organisational objectives. There can be seen
seven characteristics of Sainsbury PLC;
1. Innovation
2. Attention to details
3. Emphasis on outcome
4. Emphasis on peoples
5. Teamwork
6. Aggressiveness
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7. Stability
The people base culture of the organisation encouraging professional relation between
employees and the employer. Therefore, Sainsbury make the strategies to encourage the
management to continue fair relationship with employees and apply strategies. As well as
Sainsbury encourage the personal learning/self-managed learning process within the
organisation as they values people based culture within the organization(Armstrong,
2012).Therefore, following impacts can be seen on the organisational HRM process
through organisational culture;
Decision making process has been decentralized and encourage the employees’
participation for the decision making process
Give freedom to employees to continue their job responsibilities successfully
Frankness on the communication and participation of all level of employees to the
communication process
Encourage the personal leadership of the team leaders and team decision on
strategic direction of the organisation
Continue the self-managed learning process and provide the facilities for
employees for it (internet, researching facilities, training, leadership camps, library)
Identify individual differences and respect to each other’s for peaceful
organizational culture
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4.3 Measure the Effectiveness of HRM process
As the importance of human resource management process to gain the competitive
advantages
on organisation, it is essential to active participation of all employees and management
people towards the better HRM process (Armstrong, 2012). Therefore, it is essential to
measure the effectiveness of HRM process on within specific time period. When
organisation makes the strategies to measure HRM process, it can be able to identify the
successful factors as well as failure factors on HRM process. Therefore, it is easy to
develop the strategies for future organisational direction. Sainsbury PLC has been applying
for indicators to measure the effectiveness of organisational HRM process as following
figure.
[Figure 03: Factors to measure the HRM process]
Source: http://www.nicheconsulting.co.nz/hrm_recruitment/hr_consulting.htm
Recruitment
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The successful recruitment process is one indicator for measuring the success of
organisational HRM process. Recruitment as the HRM function is linking with selection,
compensation and retention of the employees. The successful recruitment process can
provide the appropriate employees for organisational vacancies who can capable to reach
to organisational objectives while accepting the challenges from external environment.
Performance management
Following indicators can be used to cover this criterion;
Current employees’ performance
The gap between the expected performance and actual performance (when gap is
low it is mark for the effective performance conditions)
Employees’ willingness to increase the personal performance
Retention
Employees’ retention is one main criterion to measure the success of organisational HRM
functions. When employees are retain long term, it means that HRM process is so good for
the employees in Sainsbury (www.j-sainsbury.co.uk, 2015);
Numbers of employees’ retain in the organisation more than 5 year
Compensation and other benefits for the employees
Level of employees’ loyalty
Training and development
Organisational Training and development programs for the employees
Measure the personal training need of each employee
Opportunity for Self-managed learning
Opportunity for career development
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4.4 Recommendation for Better HRM Process in the Organisation
When analysis the HRM process of Sainsbury PLC, it can be present the following
recommendation for organisation to gain more advantages through the employees/human
resources of the organisation (Armstrong, 2012);
Give the responsibility for all the managers to participating to the HRM process
within their departments as they are managing certain kind of employees’ pool in
their department
Encourage the communication process and employees’ participation for the
communication process. Give the training for communication
Continue the self-managed learning process as the main methods of providing the
learning for the employees can be given necessary facilities to employees such as
internet, workshops, library facility and research facilities
Employees’ participation for the decision-making process and encourage the team
decision and innovation
Continue proper performance evaluation system and use the performance
evaluation system to modify the existing working process and performance
Establish the self-disciplinary process within the organisation
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Conclusion
Strategic Human Resource Management is advance concept more than HRM which means
the core-relation between human resource management and overall organisational
objectives. There can be seen four basic purposes of SHRM process of the organisation
such as human maintaining, Developing, motivation and retaining in the organisation for
long term. These high performance management practices motivate the employees
towards the organisational goals and objectives. When they are determining the HR plan
for the organisation, it is considering the internal factors and external factors as well as
personal factors of the candidates. HRM policies are vital for organisational are serious
about resolving personal and professional issues within the organisational context. The
Sainsbury PLC has to face legal and regulatory context when they are continuing the
business within the industry. As the importance of learning culture to gain the competitive
advantages, the Sainsbury PLC encouraging the employees’ learning process within the
organisation with self-managed learning process.
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