The Problems In Waisco Human Resource Management Commerce Essay

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Waisco is the one of the big and known food retail company established in 20th century. It is a UK based company with shops all over UK. Waisco has large number of human resource nearly 7000 employees and more than 185 branches. Much profit is gained from London and south east shops.

Waisco main suppliers are from UK, like inventory comes from inside UK, so when items or products are in perfect season and products are fresh and in perfect condition they are supplied to Waisco by the local suppliers. Nearly every grocery are sourced from local suppliers like meat, milk, vegetables, fruits are purchased from farmers as they believe it is very helpful in upholding the country side suppliers and farmers. Also some luxuries items are imported from other parts of the world as well but in very small ratio.

Waisco mainly employees used to be part time workers, especially shop floor employees part time students international and national as well, also Waisco mainly depend upon the female labour with separate management body is consigned in every shop. Also Waisco provides industrial placement opportunity for the students who are studying in 4 years sandwich degree. Also placement is provided in main head office in particular department like buying marketing.

External Overview:-

Waisco is facing some tough competition in the retail market as there are many other huge retail companies operating in the same field. Waisco has to keep eyes on the competitors for his sustainability and to regulate internal policies which can be influenced by the external environment. Global economic status also influenced the HR policies and the management strategies of Waisco, market status and situation changes after every single minute which in return put impact on the company. But in tough time Waisco needs to hold their self by adopting simple straight forward ''Roll'' strategy which according to Cangemi, Lazarus, McQuade, Fitzgerald, Conner, Miller, Murphree (2011) AK Steel company developed a mnemonic of ''Roll'' on in 2009in which each letter started a phrase that assign how the company should be going to proceed in response to the economic calamity,

R - Remain focused on key values.

O - Outperform expectations.

L - Lower the cost profile.

L - Lift the cash position.

Now a day's customers are discerned, customers know what to buy they know ups and downs of the product what they going to buy as there are a lot of varieties in the market of the same product with variation in prices as by Bolton & Houlihan cited that now a day's customers are mainly different faceted, much difficult to understand and convoluted social actors and follow a different theoretical framework of the role customer play, as legendary royals, useful transact ants and ethical agents, so by that offering a more precise illustration of customer service and the role of the actors involved in it. Waisco has to look after this to maintain its customers and fulfilling customer's desires. In order to sustain their customers and attracts new customers company needs to win existing and new customers trust which is most important thing in now a day's business market as stated by Reichheld & Schefter (nd) to increase the reliability of consumers, trust comes first to be acquire of consumers. Waisco needs to deliver the best of the best and needs to gain and maintain customers trust to get the sound profit and success in today's, competitive market.

Human Resource Management (HRM) Problems in Waisco and Recommendations:-

As said by Jing and Huang (2005) Business environment changing quickly, globalization, revolutions to provide competitive items and services, changing customer and their behaviour requirements has become the standard framework for organizations. To show efficiently, businesses must regularly advance their performance by dropping costs, improving quality, and discriminating their products and services. To improve firm performance and create firm competitive advantage, HR must focus on a new set of priorities. These new priorities are more business and strategic oriented and less oriented towards traditional HR functions such as staffing, training, appraisal and compensation. Strategic priorities include team-based job designs, flexible workforces and friendly workplace and working hours, quality improvement practices, employee empowerment and incentive compensation. According Armstrong (2001) Strategic human resource management is to bring into line the HR policies and strategies with the business strategies to attain performance goals through employees capability and assurance.

Waisco is facing numerous problems in human resource due to lack of good and improper HR policies. Good HRM policies certainly lead to the success of organisation. According to Monks & Mckackin (2001), it is visible and proved that good HR policies may give competitive edge in this competitive market. Waisco lacks good and strong management team that can deploy and implement policies which are helpful and effective for both the company and for the employees, every store has its own managers and no unique policies and strategies are which indeed not effective for good output. As per Storey (1995)line managers need to be deeply interacted both as delivers and drivers of the HR approaches. Store managers must know each and every thing about the retail sector so that proper training can be given to existing and new employees as suggested in Top Business Concern managers should be trained enough and managers must how to encourage and train workers more effectually.Due to improper HR policies turnover rate is very high in Waisco, although the mainly employees in Waisco are part time casual students and female workers and they often leave due to different circumstances but still HR policies are not suitable for employees to make them stay in the company. As stated by Peters, Jackofsky & Salter (2007) in full time workers, turnover rate is marginally least in number than in part time workers group. Also there was fact to recommend differential certainty of turnover across full-time and part-time service status groups, signifying that the two different groups may have a different psychology of work. Adding to this cost on organisation due to high turnover is significantly high according to Pinkovitz, Moskal, & Green, cited in Senter & Martin (2007)turnover outlays organizations not less than 12% of payroll, biggest worries faced by organizations that employ large numbers of part time workers is retention.Non friendly working hours and tough routine working hour's results in turnover as employees often not very much relaxed and happy with their working hours and after a while they simply leave their jobs, so there is no constant employee's retention in Waisco. Friendly working environment indeed put a great influence on employee progress, interest in work and reduces turnover rate in company. Even Waisco has to face the huge financial input to hire and induce new employees replacing those who are leaving. According to Cascio (1991), cited in Batt & Valcour that the expenses of turnover are towering, mainly for shop floor, technical, professional, and managerial employees, because their skills and knowledge are difficult to replace and they take time to adjust in new environment. According to Muchinsky & Tuttle (1979) turnover can harmfully influence the social dynamics of a work business. Policies are made to reduce the turnover rate. Cost of turnover-a non-value-adding constituent in the organizational financial plan forces administrator to spotlight on withholding. The enormous returning expense shaped by turnover present openings to perk up employee happiness, lessen turnover, get better quality, and reducing costs by diverting the existing financial outlet into programs and procedure that support retention. Turnover rate has also been increased because of reason that there is no future career path. In order to reduce this turnover rate Waisco needs to adopt policies through which employee's interest can be gained in that particular job and employees need to feel satisfied with their job. According to Top Business Concern (1989) working place should be supportive and friendly and to deploy expert copy and code of behaviour. When employees enjoy their jobs and work with commitment this will certainly increase organisation outcomes, as stated by Guest (nd) when employee's commitment is achieved than it is far easier to achieve company's goals, so deep focus must be given to employees and always implements policies through which their heart and minds can be won. Also to reduce the turnover rate Waisco needs to make employees feel like that they are the part of company and they are the shareholder of the company. According to Bonn (1992) implementing Employee Stock Ownership Plans (ESOPs) is the best suitable for this minimizing turnover and making employees feel important and owners. ESOPs is becoming an striking employee retention practice. Main principle for developing ESOPs is to give the employee a sense of possession and to develop employee self-esteem and efficiency. According to Smith cited in Taylor (2005) some steps have to taken to reduce turnover like company needs to improve its induction plans, to develop and deploy school liaison programmes, internal promotion paths to be opened and taking steps to catch the fancy of women returners.

Recruitment and selection is second biggest problem which Waisco is facing and this damages the company's image and profit. Numbers of reasons are behind this poor recruitment and selection inappropriate advertisement method, weak assessment criteria, inadequate job description for the new candidates. Inappropriate mode of advertisement is main cause of all the problems which Waisco is facing in recruitment and selection process, whenever Waisco needs new employees store manager displays paper on the front window or door of the shop about the vacancy which off course cheap way of advertisement but future impact is very wick for the company. Selecting right people for right people certainly give company competitive advantage. Most companies' best HR practices include selective hiring. According to Patterson cited in Beardwell & Claydon (2007) through the sophisticated way of selection and bringing on employees to the organisation put a positive impact on company profit and progress. Recruitment should be from internal as well as from external. According to Beardwell & Claydon (2007) many firms recruitment is from internal and external depending upon the vacancy to be filled. Selection process of Waisco must be able to find out the potentials in candidates. Waisco offers graduate scheme as well in their stores but the method of recruitment Waisco uses is not appropriate. Waisco must emphasises on information technology for recruitment as according to Association of Graduate Recruiters cited in Branine nearly 44 percent of graduate employers use the internet to advertise vacancies and a additional 21 percent planned to use it. Waisco needs to advertise the exact information regarding vacancy available. According Beardwell & Claydon (2007) advertisement about the job must be precise, realistic. As discussed Waisco must adopt online advertisement they must advertisement full job description on internet and applying method must be all electronically controlled. Adding to this Ramasashan said that if the candidates for the position observe that they have been shown and told practical information concerning the job and have favourable insight of the interviewer there will be less chances that they will leave the job in coming short term and unlikely those who will think that they have been given unrealistic picture have less positive perception of the interviewer. According to CIPD (2005) cited in Beardwell and Claydon (2007) that through online recruitment cycle of recruitment gets shorter and rationalized, advertisement reaches to broad group and cost on recruitment certainly minimized. Adding to advantages of online recruitment Taylor (2005) that the speed and simplicity of online recruitment those who are in search of jobs can quickly respond whenever they find out the advertisement on the web. According to Cooper cited in Marchington & Wilkinson (2008) there should be two kinds of test before short listing candidates for interview session first cognitive test in which mental ability of the candidate can be checked, level of knowledge and skills person get, followed by intelligent test to know the level of thinking, quick decision power and reasoning within a series of different circumstances after that test to be taken to get to know the speed, accuracy, computer talent and sales cleverness. After this stage personality test comes in selecting suitable candidate. Selection criteria should be properly planned interviews session must be organised by Waisco management body. According to Torrington at al. cited in Beardwell & Claydon that an interview is a controlled talk with a purpose. According to Pettersen and Durivage stated in Craig & Clark suggest that manager must think about a prearranged job-related interview so that to know about candidates' behaviours, aptitudes, skills, knowledge, and competencies.

Understanding what stimulate people is obligatory at all stage of administration and management. Motivation and enhancing the level of performance mainly depended on reward and appraisal. Waisco reward system is not proper and needs to be redefined. Reward systems have to be consistent, transparent and understood and that what Waisco needs to do. Proper and consistent reward system can boost up the moral of employees and in return company's progress. It is being said by Marchington & Wilkinson (2008) Reward system certainly manipulate a variety of HR processes and practices which gives output in shape of organisation good performance. Pure reward and appraisal system minimize turnover as well this system helps in better selection of applicants as according to Marchington & Wilkinson (2008) performance based systems mainly attracts high level of performer to the organisation. According to Marchington & Wilkinson (2008) payment by result scheme (PBR) is the motivational factor. In this scheme the big advantage is that there is a straight connection between the entity endeavour and outcomes. Waisco needs to adopt 360- degree appraisal scheme, according Beardwell & Claydon (2007) that 360- degree appraisal process is very effective if applied correctly, it is cheap, effective, can be implemented anywhere and main advantage is that this process focuses on individual performance. According to Wilson & Nutley (2003) aappraisal creates strong linkage and relationship between the evaluator and the appraise, between the organization and the person. The appraisal system has to be a well build system which must be fair to both individual and organisation. Manager or supervisor delivering out the appraisal must be the appraisee's direct supervisor, so that past accomplishments and failings can be overlooked. Appraisal systems exist to improve organisational competence by making sure that individuals perform to the best of their ability and develop their potential. This leads in turn to improved organisational performance.

Lack of training to the existing and new employees is the one of the problem which Waisco is facing and that leads to the failure and results in slow growth, which greatly affects their customer's service as well, which in return results in losing customers which is not acceptable in this competitive business market. Waisco must invest in training of employees to overcome the above mentioned problems. Employees development programmes, self reflection, group mini projects and useful presentation session to be introduced in Waisco as this will certainly enhance employees capabilities. As according to Haarrod cited in Pollitt (2007) eyes had to be on the individual as building up confident is the key element so employee can adopt and implement changes with the time, and learning and training programme started with the name 101 which was the initial point in personal development and learning, introduced and deploy four training section casing clear communication, personal influence, leading yourself and what makes Fenmarc different. Those employees who attended the 101 learning programme are given equivalent chance to learn by a variety of means to suit them, case studies, self-reflection, group activities, presentations, group projects and coaching. Such varied learning activities as the 101 is designed for delegates who work in different environments. The outcome was superb and employees are now aware of their approach and the impact it has on others. The business profit of this is that we effort jointly to resolve issues and problems. Employees listen to each other now and are more creative and pleased.

Workplace politics are not easy to deal with. Trade unions mostly cause damage to the organisation when policies are not flexible and not employees friendly. According to Godat et al cited by Marques (2009) that organizational politics are in a straight line linked to employees' job anguish and destructive behaviour. Trade unions politics can be taken positive, if the minority employees can be promoted by that politics run by trade unions. Mostly trade unions work in a negative direction when they are not satisfied with the companies HR policies. Waisco management body is facing this trade union politics which is in pessimistic way. Waisco needs to develop good employee-employer relationship to avoid trade unions negative role. Sociable relation in organisation gives benefit to both company and to employees. According to Rose (2004) that trade union negative involvement can be eliminated by introducing equal pay structures between the equally qualified and experienced workers and when efforts are made to minimize layoffs and giving employees the sense of security for their jobs.

ASDA stores limited were acquired by Wal-Mart Stores Inc in 1999. Asda has more than 127000 employees. Asda main focus in respect of HR is to monitor its employees working hours so that they can enable themselves to strike a work life balance and that is why Asda is very conceited of its reputation as a top family friendly employer. Very long hours of working are strictkly discouraged so that employees never get stressed. Staffs are highly encouraged to make alteration to their working hours officially as well as informally by discussing with their fellow colleagues and doing shift swaps and that is the reason why the turnover rate in Asda is minimized because of friendly environment between employees and employers. (Source: CBI).

Sainsbury has and is doing much to compete with today's challenges specially related with HR. What they are doing is to strengthen their policies and reputation both externally and internally. Sainsbury HR department main aim is to make their HR more systemic and attract much skilled Human resource by adopting strong and attractive HR policies, and after having their desired employees then they focus to fit the best person at right place. Sainsbury was given the "people's organisation" by the C.B.I.'s Human Capital Awards in 2009 because of their broad ranging human resource and management skills. Sainsbury use to recruit graduates for a precise graduate programme which indeed help their HR management body to fill up any management post internally when get vacant (Source: Sainsbury).

After this all discussion about the problems facing by Waisco in their HRM and the recommendation suggested to eliminate or at least minimize those drawbacks. Waisco needs to redefine their HR policies and strategies to overcome these problems. We are in very challenging and competitive business world and there is no space for errors especially internally in organisation. Whenever company is going downward the main reason or one of the main reason behind that downfall is bad internal policies. Waisco if wants to maximize their profile their employees must be satisfied with their HR policies. Implementing strong and friendly HR policies management body must be skilled and strong enough to make and implement those strategies to overcome HR problems. Whenever internal environment is fine and competitive, external competitions can be won.