Strategic Leadership For The Cooperative Group Management Essay

The strategic management of human resource consists of a number of different-even opposed-things at the same time. It is an actual role, or position within organizations; a position with responsibilities and associated expertise, a role which is it self subject to change. It is also a set of practices or processes associated with this role. It is a distinctive approach-or approaches, for there is more than one-to the development of organizational capability, supplying recommendations for ways to improve organizational effectiveness and efficiency. HRM emphasizes that employees are critical to achieving sustainable competitive advantages, that human resources practices need to be integrated with the corporate strategy, and that human resources specialists help organizational controllers to meet both efficiency and equity objectives.

Sisson and Scullion 1985;Pucik,1992;Hendry 1993;Margison et al..1993, have also emphasized the importance for strategic HRM of a focus on senior management planning and development. Against this received wisdom. Perhaps the most significant feature of HRM is the importance attached to strategic integration, which flows from top management’s vision and leadership, and which requires the full commitment of people to it.

Legge (1989) considers that one of the common themes of the typical definitions of HRM is that human resource policies should be integrated with strategic business planning. Sisson (1990) suggests that a feature increasingly associated with HRM is a stress on the integration of HR policies both with one another and with business planning more generally.

Public and private organizations that recognize the importance of human capital to their long-term success and establish human resource management as a strategic function do best at dealing with the uncertainties of a changing work environment and work place (NAPA 2000). Such organizations recognize that the human element must be explicit in strategic plans, which provides the basis for identifying human resource requirements, competency needs, and competency gaps. Accomplishing this requires the active participation of human resource manager as fully integrated partners in the development and implementation of such plans.

1.2

The Co-operative is a truly world class organization with a commitment to providing the best service available in retail market. We are looking for the best people to care for our customers and be proud to be a part of the Co-operative Customer Service Team- Tim Hurrell CEO of The Co-operative food in UK. This is how the CEO of The Co-operative introduces his company to the universities graduate.

“We’re known the world over. We’re a successful, growing, innovative, world- leading food stores in retail business. We have around 3000 UK stores and we’re always looking for ways to grow the business – like our exciting new partnerships with Somerfield, because we’re experts in our field.

Some strategic HRM aspects of The Co-operative are discussed, which have considered to the success of The Co-operative, in the UK and Ireland markets.

Strategic HRM Aspects

Description

Organizational vision

To build a better society by excelling in everything we do, and Hurrell places having good people working for the organization at the forefront of how the company can live up to the vision. Tony Hurrell, says: “We’ve got to champion people’s right to feel good about working for Co-operative.”

Brand Reputation:

Respect for the brand is strong and staffs thinks The Co-operative provides a great service to its customers, giving this question a top 10 positive score of 82%. Not even the gloomy economic climate makes employees worry for their organization’s future, ranking this question FIFTH in the big company’s survey with a 62% positive score. Vassil explains its enduring appeal: “If you want to progress you’ve got the opportunity, but if you don’t want to that’s great as well.”

Employment Environment

The Co-operative Store Manager MARK Vassil, 32, already has a 10-year The Co-operative career under his belt and sums up the spirit of the company. Starting as a part-timer while studying for his Undergraduate, Vassil joined the company full-time after graduating and followed its management training route.

Now manager of the Stepney Green branch. Vassil’s passion for this 161-year-old British institution is infectious.

He says “I love this store. I really do love my team. It’s a great environment,” He is not alone in getting on so well with his colleagues; feeling a strong sense of family in teams scored 81% positive – just four big companies did better; and having fun in teams received another top 10 score at 88% positive.

Learning and Development

Mr. Vassil, the Store Manager in Co-operative believes, our store colleagues need to create a winning culture in our stores and to provide the best possible customer experience. So, it’s not just about helping people to achieve professional qualifications or adding to their product knowledge. We know how to help people develop those vital personal qualities.

Work Life Balance

Being able to balance work commitments with family ones also helps, particularly for a company in which roughly five out of six employees are women. When No 7 consultant Mrs Anderson was interviewed for his job at the Stepney green store, she was pleasantly surprised. “They didn’t discriminate because I am a mum and have childcare commitments,” Mrs. Anderson says. Work not interfering with responsibilities at home scored 58% positive, ranking Co-operative eighth among the big organizations. Not spending too much time working (67%) ranked seventh. Fittingly, Anderson describes Co-operative as “like a big family “.

Compensation and Benefits

The Co-operative Staff believe they are paid fairly for the work they do relative to others within the business, a positive score of 62% ranking it seventh overall. A Co-operative store manager can earn from £20,000 to £55,000, it’s depending on size of the store.

Unique product Portfolio

Almost all of our innovative products are created in our unique Stepney Green development facilities, where we have the talent and technology to keep evolving our impressive product portfolio.

Upfront approach to leadership

At monthly head office briefings Hurrell and other board members stand on a podium in the cavernous atrium and talk directly to staff. This upfront approach to leadership is appreciated and employees say senior mangers truly live the values of the company, scoring this point 72% positive, the sixth highest result. Richard Bide, regional human resources manager, says: “We are realising it’s about leadership, not management. It’s about inspiring people. I’ve worked for Co-operative since I was 16 [10 years]. I feel very fortunate to work for such a big company with such a big reputation, but it still feels like a family company.”

1.3

The contribution of strategic human resource management to the achievement of Co-operative Company objectives are as follow:

Company’s growth: Co-operative have over 3,000 food stores and supermarkets around the UK and are always looking for ways to grow the business – like the exciting new partnerships with Somerfield. Because Co-operative are experts in the fields of different kinds of food and The Co-operative own-brand food range comprises great quality with honest and ethically sourced products. Co-operative are the only retailer to sell food grown on their own farms, and they are the biggest supporter of Fairtrade with over 200 lines, which is why Co-operative are proud to be ranked the top ethical supermarket in the UK – proof of their commitment to responsible retailing. That’s why Co-operative are good with food.

Brand Reputation: Today Co-operative have stock around 150 own brand products and over 50 branded Fairtrade products, making their range the largest range of Fairtrade grocery products in any UK supermarket. Co-operative continues to look for new ideas to introduce Fairtrade products into their range to give customers as much choice as possible and to drive Fairtrade growth in the UK market. Respect for the brand is strong and staffs thinks Co-operative provides a great service to its customers and, in a recent survey of 82% user give a positive score to Co-operative.

Satisfaction to stake holders: Not even the gloomy economic climate makes employees worry for Co-operative’s future, and, in a recent survey of 62% of its stakeholders give a positive score to co-operative in the big company’s survey

Increase of Revenue: The Co-operative has performed well in the half year despite significant challenges from the market. Group revenue is up 8.4% to £6.9bn, compared to £6.4bn in the first half of 2009. Co-operative have around 3000 UK stores and are always looking for ways to grow the business, so its revenue base also grows proportionately.

Upfront approach to leadership: Richard Bide, regional human resources manager, says: “We are realizing it’s about leadership, not management. It’s about inspiring people. I’ve worked for Co-operative since I was 16 [10 years]. I feel very fortunate to work for such a big company with such a big reputation, but it still feels like a family company.”

Conclusion

Like any business, we want to be a commercial success. However, even more important to us is the way that we do business, and the way that we use our profits. We believe that we should offer our customers both value and values. This makes us a bit different. Considering the Case it is crystal clear that, the people are at the heart of Co-operative Success. First the millions of customers that visit Co-operative stores every day contribute huge sales and market acceptability. They shape the business and the products of Co-operative as well.

Task 2

2.1

Human resource planning is the process of analyzing an organizational staffing needs and determining how to best fill them. Human resource planning identifies staffing needs, assesses the existing workforce, and determines what additions or replacements are required for the future. The process becomes strategic when this is all done in specific reference to organizational mission; objectives and strategies. To develop a Human Resource requirement for Poundland, UK we need to understand the basic three steps of Human Resource planning. Human resource planning is said to consist of three clear steps:

Forecasting future people needs (demand forecasting).

Forecasting the future availability of people (supply forecasting).

Drawing up plans to match supply to demand.

so for Poundland, UK, Forecasting future people needs and Forecasting the future availability of people, is a crucial step to Drawing up plans to match supply to demand. As old competitors like 99p stores and Poundstretcher are emerging in the competition scenario, getting quality manpower will be a critical factor of success on the long run and need advance forecasting.

To develop a Human resource plan for Poundland , UK, the starting point could be demand and supply forecasts which form the basis for the resourcing strategy. HRM developed around the notation that, in circumstances where the liberalization of worlds market makes it less easy for organizations to gain even relatively short term advantage over competitors in area such as finance, technology, research, etc, the only source of competitive edge is to recruit, retain and develop talented people.

2.2

The human resource planning process may not always proceed exactly as shown, but, regardless of the sequence, these activities are the basic components of a systematic approach to HR planning. The Human Resource Planning process for Poundland, UK consists of the following steps.

Scenario planning: Scenario planning as an efficient method to improve performance in most companies and organizations. Poundland, UK needs to assess in broad terms where the organization is going in its environment and the implications for human resource requirements.

Demand/supply forecasting: Companies have recognized the importance of managing a portfolio of customers with different needs and have recognized the value of learning about customer demands in advance. Poundland, UK need to estimate the future demand for people (numbers and skills), and assessing the number of people likely to be available from within and outside the organization.

Labour turnover analysis: Labour turnover is defined as a separation from a previous employment, and the worker obtaining another job in a different firm during the previous year. For Poundland, UK needs to analyze actual labour turnover figures and trends as an input to supply forecasts.

2.3

Human resource planning is the process of analyzing an organizational staffing needs and determining how to best fill them. Human resource planning identifies staffing needs, assesses the existing workforce, and determines what additions or replacements are required for the future. Poundland Offers following Strategic Human Resource Management components to attract potential and best fit, Human Resources for its Customer Service units, which directly contribute to meeting an organization’s objectives

Employee Retention: Poundland, UK offers a very competitive salary, benefits include a bonus scheme that rewards good performance of one employee every month in a store this called ”Man of the Month”. A personal holiday entitlement of up to 31 days.

Work life Balance: Poundland, UK, by taking more responsibility and being a Super brand Employee, one will enjoy more control of his/her store, his products and the hours of work.

Trained HR for Poundland, Customer Service: The most important part of Poundland Company, UK success is ensuring that our team is trained to give customers the service and quality they deserve. Through our retail academy team members are given the skills, confidence and knowledge to offer customers the best food and health advice on the local area.

Creating Employments: Poundland, UK always trying to being a responsible retailer is core to our activities and encourage to fresh graduate to experiment with hiring new employees to see if it can boost output and sales or otherwise take advantage of new market opportunites.

Sponsorship: Sponsorship is a living, breathing ambassador for our brand, reinforcing the brand and adding value to our business at every available opportunity.  It creates emotive engagement and loyalty by communicating with our target audience in an environment of their choice.

Environment Policy of Poundland, UK: As a Poundland Company’s member, employees are committed to:

Responsible energy management and to cost effective energy efficiency throughout all stores and Regional Distribution Centres

Reducing the amount of fuel used by our HGV fleet .

Minimizing the environmental impact arising from the use of materials and services provided in building, shop fitting, repairing and maintaining premises

Minimizing the production of waste, ensuring its safe disposal and maximizing recycling wherever practicable.

Poundland’s Charter against Animal Testing: Poundland, UK and our own brand manufacturers do not commission animal testing on any Poundland own brand products or ingredients. Poundland, UK own brand cosmetics, toiletry and household ranges have not been tested on animals by us or by our own brand manufacturers. So we commit:

Bringing to an end all testing on animals of cosmetic and toiletries products, and their ingredients

Ensuring acceptable environmental, health & safety, and employment conditions in own brand product suppliers in developing nations

Finally Poundland Company, UK ninth largest retail company in retail sector. They are now running around 500 stores in England, Scotland, Northern Ireland and Wales. And they try to extend their store in different suitable locations.

Human resource development is very complex and challenging field of Human Resource Management. It is often said that the world has now moved into the information age. Our organisations are therefore required to become increasingly information driven.

2.4

Human resources management objectives identify the continuing results that must be obtained to meet the human resources goals of our organization. Objectives are what we will accomplish through an effective utilization of human resources. Human resource planning is the process of analyzing an organizational staffing needs and determining how to best fill them. Human resource planning identifies staffing needs, assesses the existing workforce, and determines what additions or replacements are required for the future. Poundland Offers following Strategic Human Resource Management components to attract potential and best fit, Human Resources for its Customer Service units, which directly contribute to meeting an organization’s objectives. Poundland Store Offers following Strategic Human Resource Management components to attract potential and best fit, Human Resources for its Customer Service units:

Employee Retention: Poundland, UK offers a very competitive salary, benefits include a bonus scheme that rewards good performance of one employee every month in a store this called ”Man of the Month”. A personal holiday entitlement of up to 31 days.

Work life Balance: Poundland, UK, by taking more responsibility and being a Super brand Employee, one will enjoy more control of his/her store, his products and the hours of work.

Trained HR for Poundland, Customer Service: The most important part of Poundland Company, UK success is ensuring that our team is trained to give customers the service and quality they deserve. Through our retail academy team members are given the skills, confidence and knowledge to offer customers the best food and health advice on the local area.

Creating Employments: Poundland, UK always trying to being a responsible retailer is core to our activities and encourage to fresh graduate to experiment with hiring new employees to see if it can boost output and sales or otherwise take advantage of new market opportunites.

Sponsorship: Sponsorship is a living, breathing ambassador for our brand, reinforcing the brand and adding value to our business at every available opportunity.  It creates emotive engagement and loyalty by communicating with our target audience in an environment of their choice.

Environment Policy of Poundland, UK: As a Poundland Company’s member, employees are committed to:

Responsible energy management and to cost effective energy efficiency throughout all stores and Regional Distribution Centres

Reducing the amount of fuel used by our HGV fleet .

Minimizing the environmental impact arising from the use of materials and services provided in building, shop fitting, repairing and maintaining premises

Minimizing the production of waste, ensuring its safe disposal and maximizing recycling wherever practicable.

Poundland’s Charter against Animal Testing: Poundland, UK and our own brand manufacturers do not commission animal testing on any Poundland own brand products or ingredients. Poundland, UK own brand cosmetics, toiletry and household ranges have not been tested on animals by us or by our own brand manufacturers. So we commit:

Bringing to an end all testing on animals of cosmetic and toiletries products, and their ingredients

Ensuring acceptable environmental, health & safety, and employment conditions in own brand product suppliers in developing nations

3.1

Human Resource Policies are continuing guidelines on the approach the organization intends to adopt in managing it’s people. A policy is predetermined course of thought and action that is defined and established as a guide towards accepted goals and objectives. Human resource policy guides the attainment of business strategy of the organization. Therefore, human resource policy is essential for the survival, growth development of organizations. The purpose of human resource management policies in organizations are

Human resource policy helps to build and sustain a human resource conductive environment for workforce for maintaining organizational stability.

Human resource policy act as a basis for managerial decision making on all human resource matters.

Human resource policy is helpful in achieving the business strategies of the organization effectively

Human resource policy helps to bring in maintain ‘equity’ within the organization and build dyadic relationship at all levels.

Human resource policy helps the management in empowering its human resources; this does not create any problem or ambiguity as all the decisions are taken in the light of predetermined human resource policy.

Human resource policy helps to extend effectively the ‘control’ function of the management.

Human resource policy motivates and seeks commitment of human resources through its various decisions making within the organization.

Human resource policy helps to audit the efficiency of various human resource systems and process in the light of the objectives set by human resource policy.

Management policies in organizations such as

Continuous improvement – providing options for focused and continuous incremental

Innovation sustained over a period of time.

Employee relations – defining the intentions of the organization about what needs to be done and what needs to be changed in the ways in which the organization manages its relationships with employees and their trade unions.

Talent management – how the organization intends to ‘win the war for talent’ by attracting potential and the best fit employees from the industry.

Re-sourcing – attracting and retaining high quality people within the industry.

Knowledge management – creating, acquiring, capturing, sharing and using knowledge to enhance learning and performance better then the competitors within the global industry.

Reward – defining what the organization wants to do in the longer term to develop and implement reward policies, practices and processes that will further the achievement of its business goals and meet the needs of its stakeholders.

Learning and developing – providing an environment in which employees are learning by doing, and are encouraged to learn and develop.

3.2

The Co-operative is one of the UK’s leading retailers with employ over 120,000 people serving around 21 million customers per week. They have over 3,000 food stores and supermarkets around the UK. The Co-operative own-brand food range comprises great quality with honest and ethically sourced products. They are the only retailer to sell food grown on their own farms, and they are the biggest supporter of Fairtrade with over 200 lines and they are the third largest pharmacy chain in the UK and the largest in Wales, with nearly 800 branches and dispensing over 53 million prescriptions a year. Our core values of Quality, Value, Service, Innovation and Trust are as important to us today as they were when Co-operative was founded over 167 years ago.

Co-operative have over 3000 stores across the UK – in a wide range of convenient locations – from high streets to retail parks, train stations to airports. Over the past four years we have transformed these stores into bright and contemporary destinations with a range of hospitality options.

Over the past five years, the eco and ethical plan of Co-operative, highest priority, has helped them to reduce the environmental impact, develop new sustainable products and services and improve the lives of people in our local communities. This year Co-operative extended the plan to involve all their customers and employees and to set the ambitious goal of becoming the world’s most sustainable major retailer by 2015.

Last year Co-operative took decisive action to ensure the strength and flexibility needed to navigate the recession. As a result co-operative have emerged in a stronger position and delivered an improved performance, with a Co-operative Group this year revenue is up 8.4% to £6.9bn, compared to £6.4bn in the first half of 2009.

Co-operative are committed to maintaining the highest standards of customer service and to do so, all of their stores are visited once a month – twice in the case of flagship stores – by mystery shoppers. Staffs are scored on a number of factors, such as service at the point of sale, body language and how they welcome customers into store. Over the last 1 year customer service has improved, with an average mystery shopper score of 81%, up 7% on last year.

The impact of regulatory requirements on human resource policies in Co-operative, UK is a critical element as it set out the following issues:

Compliance with local law: Co-operative willingness by states in respect of their law enforcement depends largely on the private or public nature of the law, dispute or judgment in question. Compliance with labour law and compensation legislation safeguards the interest of the labour and it also protects the interest to the investors and stakeholders by developing mandatory system for creating Effluent Treatment Plan (ETP) and Corporate Social Responsibility issues.

Endure Discipline within Organization: For an organization to endure, its members must work together. Stability, in turn, rests on inters simulation and communication among the members. Developing internationally accepted human resource policies helps the HR Managers in Co-operative, UK to deal with global workforce and migrant community to work for international organizations both effectively and efficiently, and at the same time can help the diverse employees to following expected discipline, and regulations for Safety, in work place.

Developing a chain of Command and discipline: The mentor normally has to be outside the chain of command or discipline, in order to establish a relationship of openness and trust and to offer an unbiased perspective on the issues raised by the mentee. Efficient Resource policies helps to develop a hierarchy for office Managers, Staffs and Employees in Co-operative and it also helps to identify who is accountable to whom, within a given department or division or for specific tasks, who are capable and responsible for decision making and choosing the best alternatives

Ensure Environment and safety issues: Highest priority is their seven year eco and ethical plan which they launched in 2006. Already they have achieved 70 of their original 100 commitments and are on track to meet a further 20, leaving only 10 commitments where Co-operative face additional challenges. Their success gave them the confidence to extend Highest Priority in 2010, adding 65 new commitments and extending existing commitments further.

In 2009/10, Highest Priority of Co-operative, UK Core function:

A reduction in CO2 emissions

Of 65,000 tones

used Medicine cover recycled via Oxfam, UK

1.2million

waste diverted from landfill

40,000 tones

a reduction in food carrier bags being used by our customers

400 million

invested in sponsorship(community

programmes)

£17.5m

Platinum status in the Business

in the Community Corporate Response

Awarded

The Carbon Trust Standard

Certified

Source: Annual Report 2010, Co-operative, UK

Task 3

4.1

Human resources to access HR information easily, analyze impact of proposed HR change on budget and organizational structure and initiate and submit requests for human resource action electronically for paperless and automated workflow process.

‘HRM systems can be the source of organizational capabilities that allow firms to learn and capitalize on new opportunities.’ Specifically, HRM is concerned with achieving objectives in the areas summarized below

Organizational effectiveness: organizational effectiveness is demonstrated by a steady conversion of productivity into new aggregate wealth. It utilizes wages and capital in such a way as to create goods and services commanding favourable prices. Organizational effectiveness generates enough surpluses for information workers to acquire the means-such as new skills and computers-to develop their own work roles even further. It creates jobs that did not exist before. HRM strategies aim to support programmes for improving organizational effectiveness by developing policies in such areas as knowledge management, talent management and generally creating ‘a great place to work’.

Human capital management: The human capital management combines the elements of workforce planning (identifying future positions, skills, and competencies) with the newly formulated goals and objectives of human capital management. Human capital of an organization consists of the people who work there and on whom the success of the business depends. Human capital has been defined by Bontis et al (1999) as follows:

Human capital represents the human factor in the organization; the combined intelligence, skills and expertise that give the organization its distinctive character. The human elements of the organization are those that are capable of learning, changing, innovating and providing the creative thrust which if properly motivated can ensure the long-term survival of the organization.

Knowledge management: Knowledge management efforts should be tightly bound to a high-priority business objective. Knowledge management is ‘any process or practice of creating, acquiring, capturing, sharing and using knowledge, wherever it resides, to enhance learning and performance in organizations’ (Scarborough et al, 1999).

Reward management: The foundation of strategic reward management is an understanding of the needs of the organization and its employees and how they can best be satisfied. It is also about developing the values of the organization on how people should be rewarded and formulating the principles that will govern how these values are enacted.

Employee relations: During the 1980s, 1990s and through to the present day there have been rapid changes in industrial relations in the UK which have included derecognising, non-union employee representation (NER), partnership and union recognition. The aim is to create a climate in which productive and harmonious relationships can be maintained through partnerships between management and employees and their trade unions.

Impact of an organizational structure for managing Human resource management is critical. This is because; Organizational structure determines who is reporting to whom within an organization. Organizational structuring and re-structuring are intimately intertwined with many aspects of human resource management.

4.2

The culture of an organization is reflected in the way things are done within the organization. For example, the levels of formality with which senior management are addressed in one feature of an organization’s culture.

Shone and parry (2004, p. 194) sum up, in general terms, the culture of events: ‘events are significant social activities; they are often communal and good natured, and this is reflected in their culture.’ As, the HR department consists of various jobs as a specialist, as a facilitator, as