The issue of the relationship in between the strategies of human resources and the performance of the firm has been created lots of literature with significant differentiations where so many parameters are existed through which results are influenced by examining the problem. Not only this, in a firm, it seems to be difficult the element of the organization identification and along with also determine this element significance specifically when the organization doesn't contain certain corporate plan for the purpose of investigating this thing. There are different strategies of human resources through which the performance of the organization can be influenced and enhanced such as: training, motivation, leadership etc. In this research study, motivation is taking as a human resource strategy of the organization.
The foundation year of Sainsbury was 1869 and today this organization operates the retail stores of 872 which consist of the supermarket of 537 and the convenience stores of 335. The bank of Sainsbury is combined together with the banking group of Lloyds TSB. This company has also contained the joint ventures with two properties such as: Land Securities Group PLC and The British Land Company PLC. For the purpose of ensuring the food of healthy, safety and tasty, the brand of Sainsbury launches the food product to satisfy its customers. The business approach of this organization is mainly based on the quality of the product and also along with the reasonable prices of that product. The company always tries to bring innovation on its products and launch those products newly on the market towards its customer. 19 million customers are served by this company which contained the market share of 16 percent.
Corporate and human resource strategy on Sainsbury:
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Modern organization such as: Sainsbury has followed the strategies of human resources which are differed significantly on the basis of the position of the firm on the business market, the performance of that firm and along with its strength in financial market as general. There has been significant relationship between the organizational performance and also the specific strategies of human resources. In addition, it has been showed that the appropriate application of the plan of human resource may increase the organizational performance. Recently, it has been noticed that the modern organization like as: Sainsbury, the performance of this kind of organization has been decreased because of proper application of human resource plan or the improper selection of the strategies of human resources.
it is argued that corporate culture plays a key role in determining the economic performance of firms. Specifically, it is shown how corporate culture can concurrently be advantageous and burdensome within the same firm. Indeed, it is argued that the strength of Sainsbury's corporate culture prevented it from reacting to competitive changes rocking its 'home' market in the early 1990s. However, the very corporate culture that was becoming increasingly inappropriate within the UK food retailing market was being successfully employed 'abroad' by Sainsbury. In the paper it is demonstrated that the 'Sainsburyization' of its US subsidiary, Shaw's Supermarkets, released Shaw's from its limited trajectory of growth. It is suggested that this move will allow Shaw's to become an increasingly important source of capital accumulation for the Sainsbury Group once opportunities within the 'home' market decline further.
Task 1 (b):
Company such as: Sainsbury, now need to have sustainable competitive advantages, different marketing mix which hold a great appeal to the customers and marketing opportunities which land them in the right place with the right people. Survival is a big issue when bigger companies are swallowing up the smaller players in the market, there are constant price wars and mass advertising is used as a tool to pull down the competition. Professor Theodore Levitt of Harvard University (1983) argues that improvements in communications and growth in international travel have resulted in the emergence of demographically similar consumer segments across various regions on the globe. The emergence of similar culture and consumer taste can be seen with fast food, rock music and fashion becoming global trends.
It is clear that brands that extend beyond national borders must symbolise universal desires and consumer preferences to a specific segment in a number of geographical regions. This applies to supermarkets retail brands such as Sainsbury, Wal-Mart, Tesco, and Carrefour among others. The emergence of these segments has enhanced the opportunities for growth of international companies. Since the consumers are also now realising the extent to which competition has invaded all aspects and segments, they are more knowledgeable about their choices and preferences in terms of price, quality, and value for money and variety.
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Human resources of Sainsbury should be considered as a significant organizational asset. In this context, the application of the appropriate strategies for its development, can lead to the improvement of the corporate performance both in the short and the long term. However, there are also companies where human resources are not considered as having particular importance for the firms' growth. In this context, Haines (1997, 95) supported that there are firms that "view their human resources as an expense rather than an asset -- an element that is expendable and perhaps discarded when the skills possessed becomes obsolete; however when human resources are viewed as an asset, companies enhance individual value through training and human development and ensure continued contribution to the organization". The importance of human resources for the corporate performance has in any case proved both in the literature and the empirical research conducted in all industrial sectors.
In accordance with the above, in order for a firm to achieve a stable and continuous growth, it is necessary that its employees are satisfied - as this term has been explained in the literature. More specifically, in accordance with Kim (2005, 669) "job satisfaction is an affective or emotional response toward various facets of one's job. Job satisfaction has been a topic of great interest for researchers and practitioners in a wide range of fields, including organizational psychology, public administration, and management". On the other hand, the existence of job satisfaction has been extensively related with the level of payment of employees in the particular sectors of a specific organization. Indeed, the study of Rudman (2003, 173) showed that "paying for performance is a big issue in contemporary human resources management; organisations have long believed that production and productivity improve when pay is linked to performance, and have developed payment-by-results (PBR) systems and incentive schemes to support this belief". In the same context, it is noticed by Blinder (1990, 117) that "employees usually feel that profit sharing and gain sharing are good for personal effort, company growth and productivity, and workplace atmosphere". However, in order for the firms to achieve the maximum level of growth, it is necessary to design and apply the appropriate HR policies as indicated by each particular firm's needs.
Task 1 Â©:
The use of 'fit' as a criterion of evaluation of the appropriate corporate strategy has been extensively used in practice. Towards this direction Wright (1998, 56) mentioned that "the basic theory behind "fit" is that the effectiveness of any HR practice or set of practices for impacting firm performance depends upon the firm's strategy (or conversely, the effectiveness of any strategy depends upon having the right HR practices)". In other words, the issues that need to be considered by a firm before applying any relevant HR strategy are many. Indicatively, Katzell (1975, 5, 11-12) tried to identify the relationship between the employee satisfaction (as a result of a specific HR strategy) and the corporate performance and found that "policy-makers must face up to a serious dilemma and find some way to resolve it; the dilemma is this: policy-makers would like to achieve two objectives for work sainsburys, on the one hand to enhance productivity and performance, and on the other to improve the quality of working life and job satisfaction for employers because under certain conditions, improving productivity will enhance worker satisfaction and improvements in job satisfaction will contribute to productivity; what it does mean is that there is no
automatic and invariant relationship between the two". Under these terms, corporate
performance has been found to be related with the employees' performance within a
From a different point of view, Lawler et al. (2003, 15) supported that 'HR's greatest opportunity to add value may well be to play a role in the development and implementation of corporate strategy; HR can make a logical case for being an important part of strategy development, because of the importance of human capital in the ability of the firm to carry out its strategy". In other words, HR strategy can influence the firm's growth in accordance with the measures provided for the personal and professional development of the firm's employees even in the long term. The implementation of appropriate diversity strategy has to be considered in this case as absolutely necessary because in case of inequality in the workplace, no cooperation would be regarded as existed - even if such cooperation exists, it will be problematic. In this context, Mathews (1998, 175) noticed that "before diversity strategies are implemented, the sainsbury's cultural environment, management and evaluation systems should be examined to ascertain if existing personnel/human resources processes will support or hinder diversity in the Sainsbury; then, appropriate strategies can be designed to develop and manage diversity based on these findings". From the same point of view, Ramlall (2003, 60) supported that "given that several large-scale studies have proven that HRM is a critical driver in an sainsbury's financial performance, it is imperative for HR and other leaders to understand the critical nature and utmost importance of understanding the effectiveness of all HR activities in creating value for the Sainsbury".
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An overall recruitment policy and a number of processes need to be in placed to determine overall outcomes for the organization before recruiting can take place. Recruiting should always involve analyzing the position to be filled, the person to fill it, writing a job description and person specification, and analyzing the organization's short, medium and long term needs and goals.
Sainsbury first try to recruit people or fill up vacancy by internal employees in the way of moving or giving promotion. If HR department of Sainsbury don't find right internal candidates then they give advertisement for external recruitment.
For recruit employees from outside the organization, company creates website address where job place and position are shown. Normally, the online job vacancies are shown for managerial place. After application submission, a shortlist of candidates is made. Then these candidates are faced an interview. By this interview, management of organization selects the right candidate. The person who want to apply for job on Sainsbury, they can give their CV to store manager or can apply by job centre plus. In these process, there is also made a list of qualified candidates and arrange an interview for them for filling up the vacancy.
For selecting qualified people, Sainsbury always use cost minimization way. It may be costly for advertising job vacancy on TV and radio, but for filling up position it is important for attracting company. An applicant can easily find out about the job vacancy on the company website.
Selection is a process which involves the application of appropriate techniques and methods with the aim of selecting, appointing and inducting a competent person or persons. Selection decisions should be based on a careful weighting of the evidence. But despite efforts to make selection 'objective' and 'scientific', decision processes are inevitably effected by human subjectivity.
Screening is the process of selecting people for the next step of recruitment. Screening process has several steps. Firstly: Sainsbury authority considers the CV of each candidate where candidate's bio data that means their educational qualification, their work experience are specified. The candidates whose CV match with the job requirement, get calling from company for attending an interview. In the time of interview, the interviewer ask question to interviewee and justify their talent and knowledge on the related things.
Job evaluation is of fundamental importance in reward management. It provides the basis for achieving equitable pay and is an essential means of dealing with equal- pay - for work- equal- value issues.
Job evaluation is a systematic process of for defining the relative worth or size of jobs within an organization in order to establish internal relativities. It provides the basis for designing an equitable grade and pay structure, grading jobs in the structure, managing jobs and pay relativities and guiding the achievement of equal pay for work of equal value.
In Sainsbury, there are biggest amount of employees and the company ascertains that all staffs have the equal opportunities to take part on the reward and benefits systems. The main purpose of their reward system is to increase employee performance and bring best service from them.
The reward system is mainly made for high level management people or senior personnel when these persons show their creativity. Pension scheme are made for those person who are not doing the jobs within the company but if they join how much they can get which is related with their salary.
In fact, reward systems are mainly based on the four key aspects such as: loyalty, capability, congruence, and cost minimization. When an employee gets reward from the company, he might be persuaded more for doing best in his jobs. But while he has more confidence on the rewards then his self respect are created in his mind. PRP is one kind of payment scheme which increase the employee performance.
But the main hindrance is that to retain talented employees on the job place for the reason of job rationality. Because the employee who remain back i.e. who can't develop his position might have to leave the job. It is happened because of lack of right information on talented performance. The employees who do the job effectively and who do the job ineffectively both get the same reward scheme because of lack of consideration of management.
Sometimes, incentives are applied as a reward as cash bonus for employees for establishing goals. Giving the partnership of share of company is another kind of incentive. Being the ownership of share, employee bound within the restrictions that till the certain aims are not achieved or specific times are not passed they can't be the owner of the giving shares.