The Human Resource Planning Of Asda Management Essay

The human resource planning is a persistent process by which it looks to assurance flexible re-sourcing connected to internal and external environmental pressures. An effective Human Resource planning can facilitate those two companies anticipating possible usual problems. Forward planning will allow the two companies developing and implementing successful

approaches in relation with:

➢Recruitment

➢Selection

➢Induction

➢Training

➢Retraining

➢Career progression

➢Development

ASDA and Tesco both are the leading supermarket in UK. As I left ASDA and join in Tesco. Therefore I know the aim and objective of the both company. Both companies’ strategies are to ensure good customer service and increase the sales for business development. A good plan will help both companies following activity:

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ASDA:

Evaluate future recruitment needed because ASDA needs staff that know the products that the company is selling and know how to put those products and make great offers in order to catch the customers attention and interest so they can buy them despite the actual economic situation

Creating training programs for the employees as for example the store staff needs to have good communication skills, they need to put the products in the right place and always be updated

Building up promotion and careers development to motivate the staff and offer them a better place to work so they can perform well.

Avoid redundancy as it can have a bad effect on the other employees

Evaluating future needed equipments, technology and premises.

Controlling the staff wages and salaries while keeping the competitiveness of the salaries

TESCO:

Evaluate future recruitments needed as Tesco is increasingly expanding businesses and actually have more than 2482 Tesco Extra, superstores, Metro, Express etc. in more than 14 countries across the world.

Creating training programs for the staff as the staff for example in the till needs to serve customer fast, also they need to have a good customer service. And they also have self-scanned tills for customer that make customer happier.

Build up promotion and career development strategies which will benefit both the staff and the organization

Avoid redundancy as this can affect the other workers they will be de-motivated and it will give a bad image to the organization

Build a flexible workforce to meet up with the changing requirement and environment.

Controlling the staff wages and salaries while in the mean times guaranteeing the competitiveness of the salaries

Evaluating future necessities from equipments, knowledge, technology and premises.

HRM MODEL USED IN BOTH COMPANIES:

According to Truss et al. (1997) the development of human resource management from personnel management has produced a number of models and theories. There are two models most widely used in human resource management are the ‘hard’ and ‘soft’ forms which are based on different analyses and thoughts of management control plans and human nature. ‘Soft’ and ‘Hard’ models are used in ASDA and Tesco organisations as human resources planning which are most important in the organisational development. ‘Hard’ and ‘Soft’ models of HRM are discusses as follows:

HARD HRM:

Hard HRM pushes the “resource” characteristic of human resource management; Legge cited in Gill (1999) refers to this as “Practical Instrumentalism”. This hard model pushes HRM’s give attention on the vital consequence of the close combination of human resource strategies, systems and performance with business strategy. Besides this viewpoint human resources are mainly an issue of production, cost of doing business more willingly than the only resource capable of turning inorganic factors of production in to wealth. Human Resources are analyses as passive, to be provided and organized as numbers and skills at the correct price, rather than the foundation of original force (Legge, 1995, cited in Gill, 1999).

Hard HRM is as calculative and tough minded as any other branch of management, communicating through the tough language of business and economics. This emphasis on the quantitative, calculative and business-strategic aspects of managing the “headcount” has been termed human asset accounting (Storey, 1987). The hard HRM approach has some kinship with scientific management as people are reduced to passive objects that are not cherished as a whole people but assessed on whether they posses the skills/attributes the organisation requires (Legge, 1995; Vaughan, 1994; Storey, 1987; Drucker et al, 1996; Keenoy, 1990 cited in Gill, 1999).

A different view of HRM is associated with the Michigan Business School (Fombrun, Tichy and Devanna, 1984). There are many similarities with the Harvard ‘map’ but the Michigan model has a harder, less humanistic edge, holding that employees are resources in the same way as any other business resource. People have to be managed in a similar manner to equipment and raw materials. They must be obtained as cheaply as possible, used sparingly, and developed and exploited as much as possible (www.hrmguide.co.uk).

SOFT HRM:

Storey (1989) cited in Price (2011) describes that ‘Soft’ form of human resource management characterised by Harvard model. ‘Soft’ HRM put pressures on the human aspects of HRM. It is giving more attention with communication and motivation in the organisation. This model distinguished that people should guide properly rather than managed. They are more involved in influential and realizing planning objectives in the organisation (www.hrmguide.co.uk).

However, Soft HRM places an importance on “human” and is linked with the human relations school of Herzberg and McGregor (Storey, 1987 cited in Gill, 1999). Legge (1995) cited in Gill (1999) refers to this as “Developmental Humanism”. at the same time as emphasising the significance of integrating HR strategies with Business objectives, the soft model emphasises on taking care of employees as valued resources and a source of competitive benefit through their promise, flexibility and excellent skill and performance. Employees are positive rather than inactive inputs into dynamic processes, competent of development, worthy of confidence and teamwork which is accomplished through contribution (Legge, 1995, pp 66-67 cited in Gill, 1999).

The soft version is seen as a method of releasing untapped reserves of human resourcefulness by increasing employee commitment, participation and involvement. Employee commitment is sought with the expectation that effectiveness will follow as second-order consequences. Walton (1985, p. 79) suggests that “a model that assumes low employee commitment and that is designed to produce reliable if not outstanding performance simply cannot match the standards of excellence set by 5 world-class competitors” and discusses the choice that managers have between a strategy based on imposing control and a strategy based on eliciting commitment (Gill, 1999).

The soft model of HRM is based on viewing the individual as a human being utilising human talent and capability and generating commitment from employees (linked with the Human relations movement-see work of Maslow, Mayo, McGregor and Herzberg). Other features of the soft approach include:

Generating a motivated, skilled and harmonious workforce.

Generating commitment to the organisation and its goals objectives,

Strategies and organisational culture

Winning individuals hearts and minds

Treating human being as humans and not a resource or commodity

Generating two-way communication between management and the workforce to promote commitment and harmony.

HRM PLANNING AND DEVELOPMENT METHODS USED IN TESCO AND ASDA:

Recruitment and selection process within ASDA.

The recruitment processes within ASDA consist of 2 steps:

Online application by which the applicant needs to fill in the information required in the application which may include some verbal, numerical and personality tests, which will enable the company gathering all the information that it need. And this will let ASDA decide whether the candidate is suitable or not.

If the candidate succeed, the next step will depend on the role that the candidate applied for, the applicant will may be asked to attend interviews, or to a group assessment centre which the applicants will be asked to perform tasks designed to highlights the skills.

Recruitment and selection process within Tesco

The recruitment process of Tesco for example team members consist of two steps application.

Online application which consist of filling in the information that the candidate is asked to do online which contain personal details, previous work experiences, qualifications, and additionally a questionnaire that put the candidate in real life situation for example if the customer service, dealing with complex situation with customer etc.

Is the candidate have effectively passed the first application step, he or she will be called to the store for an OJE (On Job Evaluation) and a face to face interview. With the OJE which only last 15 minutes the manager will give the applicants tasks to do so he or she can see how the candidate perform in real life situation and the manager evaluate the candidate customer service and skills and then he or she reflected against what they are looking for in a candidate. And then after that the candidate will have an interview with the business managers. Finally he will asses the candidate meet their requirement or not.

In comparing the two processes we can see that Tesco spend much more on recruiting and selecting than ASDA by using on job evaluation (OJE) system but despite it is taking more time, it is very effective as it shows and indicates if the candidate is the right person for the right job.

STAFF TURNOVER:

Marchington, M. & Wilkinson, A (2007) in a study of CIPD (2004) finds that labour turnover rates vary considerably between industry sector and occupational group, at the same time as do the costs of recruitment. Most employers are more concern about collect statistics on labour turnover, but they also facing problem with lack of data or software issues (IRS Employment review 2004). Many employers also performs exit interviews, and both of these tasks are usually carried out by HR department where no involvement of line manager. The information is used to improve HR practices and policies such as communication, induction, learning and development and selection in an effort to reduce turnover (CIPD 2004b, p31).

Perhaps the issue is the most difficult due to all cases of labour turnover are treated in the similar way, without giving any allowances for the performance levels and latent of the employees who quit from organization doing comparison with available employee. It is pointed that, manager is comparatively happy if an unskilled or poor performer were to leave, and there are suggestions from the researchers that if the future of the company is uncertain then employers in reality encourage turnover for not to ‘carrying staff’ (Smith et al 2004 cited on Marchington, M. & Wilkinson, A., 2007). On the other hand, if turnover was determined along with high-flyers or high skilled or highly experience and those who remained were unskilled or poor performers or lacked of ambitions, in that case this could have serious penalty for the organization.

However, a high rate of labour turnover could be benefited for the company if the organizations aim is to trim back the workplace or reduce costs of production (Sadhev et al 1999 cited on Marchington, M. & Wilkinson, A., 2007). Alternatively, Rubery et al (2004); Smith et al (2004) cited on Marchington, M. & Wilkinson, A., (2007) argued that employers may come to a decision to use temporary employment agencies for recruiting staff so that they pass the problem to somewhere else. Glebbeek and Bax 2004 cited on Marchington, M. & Wilkinson, A., 2007 point out that company should decide whether an optimum level of labour turnover with the mix of internal labour market and keep new recruits coming in, or whether the cost of turnover make most cases costly and unnecessary.

According to Linda Maund (2001) some internal causes of an increasing labour turnover:

The recruitment and selection procedure is not enough and imperfectly matches individuals to jobs.

Employees are not well motivated and don’t feel the organization from the core. S/he will consider better opportunities outside the organization and employee does not feel any interest to do better for the organization.

Not equality in wages and salaries with competitors.

THE EXIT PROCEDURES

Tesco and ASDA both company paying attention of staff turnover percentages. They both are dedicated to find the way to reduce staff turnover in their company. For that reason they follow exit procedures who are leaving the job. Concerning Tesco and ASDA the exit procedures that this company follow is similar to other companies as it undertake an exit interview with the person who is leaving the job, so the staff will have the opportunity to give explanation their reasons for leaving the job, or in the case of the staff choosing another employer, or to air their grievance, all this helped Tesco to what it is

now as those criticism helped the company to take decisions to change their policies, especially if this employee is leaving for a competitor.

What Tesco and ASDA do is that despite the interview that make the manager listen to the staff and know the reason of leaving such as challenging work environment, salary, discrimination, promotion. If the employee is a good performer they try to keep him or she in the organization, as he or she is beneficial to the company and the organization doesn’t want to loose of their

staff because he may give more with the competitors and they can use the staff knowledge and what this staff has gained of knowledge against the previous company. And this is including the resignation of the staff.

RETAIN EMPLOYEE:

In the case of redundancy Tescos transfer staff to other superstores that are in need of workforce because as we know that Tesco in one of the fastest growing companies in the world, so in redundancy situation the company offers alternative job and all this is with discussion with the worker.

The same thing applies to ASDA because this outplacement can keep this employees working and performing in the same level and improve confidence of the other employees and also it gives a good image about the two companies.

However, Tesco and ASDA both companies are giving employee discount to motivate employee which is more effective to retain employees. By following those procedures the two companies can get better in the domain knowing if it comes to keeping good employees working for them, and those solution that were mentioned above are measured as the best and the commonly used by professional and leading organizations around the world.

TRAINING AND DEVELOPMENT:

One major area of the human resource functions of particular relevance to the effective use of human resource training and development. A number of academic people would argue against the significance of training as a main influence on the success of an organisation. Training works outside-in; education works inside-out. Therefore training is benefited for the organisation if they learn to be wise in how to use of an individual’s capability and it helps to achieved business goals. Training has four main levels such as output training, task training, performance training and strategic training.

However, these four main levels of need for any organisation for improve the skills. Different levels of training will required different time period based of staff capabilities. Training for change is important for the long-term survival of an organisation. Increasing importance is being placed both on the necessary for continual training to maintain change and on training as a very important investment for the future.

THE BENEFITS OF TRAINING:

The main reason of training is to develop knowledge and skills, and to change approach is one of the important motivational factors. This helps to many potential benefits for not only individuals but also organisation. The key benefits of training are as follows:

Boost the self-confidence, motivation and loyalty of employee.

Give recognition, increased responsibility, and the opportunity of employee promotion.

Give a feeling of personal satisfaction and achievement, and broaden opportunity for career development and

Assist to improve the availability and quality of employees.

Finally it can say that Training is the main factors of organisational performance development. Tesco and ASDA both company giving more attention of the employee training as they know that it is the major issues for the employee developments which lead to the increase organisational performance achieved the goals.

HR PERFORMANCE IS CURRENTLY INDICATED AND MONITORED:

The organisational performance fully depends on human resource management activities (Ulrich 1997a) in the organisation. Employees are the key resource of the organisation. Therefore, HR will make a significant impact on company performance when a suitable HR strategies and procedures are developed and implemented effectively. Apparently Tesco and ASDA both companies focus on the HR activities which leads to increase the organisational performance. The HRM-performance model (Phillips, 1996b) is discussed as follows:

Human resource measurement, demonstrating the link between HRM strategy and organisational performance needs the examination of some set of variables. The methodology for make sure high central strength would preferably allow a calculation of how different human resource management strategies or individual activities affect economic performance of the company at the same time as controlling other issues that might pressure those performance results. High internal validity indicates to the level to which the outcomes can be indiscriminate to conclude the impacts of human resource management practices (Bratton and Gold, 2007).

Phillips (1996) model (see appendix I) is showing the relationship between HRM practices and organisational performance. Tesco and ASDA both companies HR performance is currently indicated and monitored by Phillips (1996) HRM-organisational performance. The human resource management added-value model is indicates the total relationship between three major elements.

Human resource management

Human resource performance measures, at both individual staff and work team levels.

Organisational performance measures.

HUMAN RESOURCE MANAGEMENT:

The human resource management element consists of HR strategy, policies, programmes, practices and system (see appendix I) which be present in work organisations and that impacts on staff and team performance, and cause effects individual and organisational performance (Bratton & Gold, 2007).

STAFF PERFORMANCE MEASURES:

The second element of Phillips (1996) model (see appendix I) indicates the performance effects of human resource management, approximately in part by staff performance measures. Academicians have a few options to measuring individual employees and groups. Saks (2000) cited in Bratton & Gold (2007) draws three measurements they are discussed as follows:

Traits: Evaluating the individual’s personal traits is more important, and it is one of the significant tasks of HRM. It may find out the employees loyalty or commitment to the organisation.

Behaviours: It is focus on what employee does and does not do in the organisation such as absent from work, poor time-keeping and resigning from service.

Outcomes: It focuses on the employee outcome in workplace during the time of workplace that helps to measure employee performance such as number of unit completed, accident level or customer complaints etc.

Moreover, at present team work became more common in the organisation. According to Saks (2000) cited in Bratton & Gold (2007) team performance is strongly influenced by four input variables for example team structure, team norms, team composition and team leadership; and process variables such as team working and team learning’s which impacts on the team performance outcomes.

ORGANISATIONAL PERFORMANCE MEASURES:

Organisational performance depends on the individual employee and team work measurements (see the appendix I). According to the researchers cited in Bratton & Gold (2007) discussed several organisational performance measures techniques such as labour productivity ratios, product and service quality, unit cost ratios, revenue productivity and return on investment (ROI).

However, researchers also design organisation performance measures techniques on the basis of goal achievement. This technique is relying on four specific indicators such as profit-related directories, productivity, quality and perceptual measures of goal achievement. Bratton and Gold (2007) also states three important reasons for organisational outcomes measures:

Employee-related outcomes as they are directly influenced by HR practices. Different rewards and training programmes are to influence on the employee outcomes.

These outcomes such as productivity, quality and employee unit cost which can manipulate the organisation’s financial operational goals.

The outcomes can manipulate the individual psychological contact as well as behaviour which involves with the outputs.

CONCLUSION AND RECOMMENDATION:

Human resource management is a planned technique to managing employment relations which highlight that influencing people’s potentiality is critical to getting competitive advantage, this being achieve throughout a distinguishing set of incorporated employment policies, programmes and practices (Bratton 2007). Employees are the key driven force in any organisation. Organisational success depends on the employee performance. Discrimination in workplace plays psychological impact on the employee’s mind which may lead to negative impact on employee performance.

Therefore, HR main duty is to most effective uses of human resources in organisation. They need to employ right person for the organisation and build up employee based on the current requirement by the training and development process. UK is a multi-cultural country. Different cultural people lives and come to shopping in the superstores. Consequently HR should be fair for all employees and keep in eye on the employees to make sure equal opportunity ground in workplace for each employee. To get potential benefit from the employee motivation is significant for the organisation. HR required to ensure reward systems to motivate employees.

Tesco and ASDA both HRM is works for the business development. For that reason both company is continuously developing their system on the basis of current business trends. I recommend ASDA to follow the on job evaluation (OJE) system to recruit best person for the organisation. And both company need to focus on the skills development process and evaluation process which are linked to employee motivation. Finally it can say that human resource management has thought new prominence as concerns persevere about international competition, the development of technology and the productivity of employee (Bratton 2007) in both companies to increase business efficiency.