Contemporary Issues and HRM Theories: A Case Study of Coolco

The report analyzes the contemporary issues and key HRM theories in the case study of Coolco, a UK-based food retailing company. It assesses the HRM approaches in practice within a given context and analyzes the internal and external extent of the organization. The report proposes solutions to the prevailing problem and provides insights into the socio-cultural and economic factors affecting HR policies and strategies.

CASE STUDY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explaining contemporary issues and key theories relating to HRM......................................1
Assessing HRM approaches in practice within a given context ............................................2
Analyzing internal and external extent of organization so that impact of various factor on
development of role of HR, strategies and practices can be formed......................................4
Proposing solutions to a specified business problem.............................................................7
CONCLUSION ..............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Human resource management is concerned with having strategic approach that
can help in gaining appropriate level of ability in turn managing practices can become possible.
In turn era, there is higher requirement to pay attention on having execution of strategic human
resource management so that accomplishing organizational objective can be exerted. Internal
and external factors play crucial role in influencing business activities so evaluating becomes
crucial for company so that corrective course can become possible. The current report is based
on Coolco which operates in UK food retailing sector that faces several challenges due to
internal and external factors. Present report will pay attention on assessing the contemporary
issue and key HRM theories. Current study will ascertain strategic HRM approach in the given
context. It will focus on analyzing internal & external context by applying appropriate tool to get
relevant solution. This will give emphasis on providing relevant solution to the prevailing
problem.
MAIN BODY
Explaining contemporary issues and key theories relating to HRM
Contemporary issues are concerned with the problems that are current faced by
organization which influences practice sin adverse manner. Coolco is one of the organization
that operates in food retail sector and pay attention on offering qualitative products with low
price. There are several situations in business environment that has risen in the working of
company which tend to result in impacting its process (Thite, 2018). The main contemporary
issue that has influence on working of specified organization is non proper formulation of
organizational strategy that is not capable of accomplishing the objectives. There is lack of
effective formulation of policies & strategies that tend to result in creation of bad company
culture. It is one of the demotivating factor which has made employees feel insure about
processing. This has affected the employees to share low potential which outcome in arising of
complications and impacted company's market share holding position negatively. From the
evaluation it can be identified that specified organization is facing financial problems that can
affect the processing of company in longer run.
Human Resource management of the company play essential role in managing the
business activities. It becomes crucial for the enterprise to give emphasis on having appropriate
evaluation of theories so that better practices can be implemented to accomplish the objectives
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like conducting charity activities, offering good quality, maintaining significant margin with
keeping low cost pricing strategy, etc. HRM largely contribute in handling such course of action
which can lead to derive significant extent of growth & development.
HRM theories includes organizational life cycle, strategic contingency, general system
& transaction cost (HR Theories, 2021). Strategic contingency theory which is associated with
focusing on the concept articulated. It is one of the significant theory that is conducted to focus
on tasks that are required to be exerted in order to voles the prevailing problem. This is simple
model whose variables affecting power in contingency control by an organization sub unit. The
main advantage of this theory is to have higher effectiveness by leader through adopting most
important tool in workplace.
General system theory indicates how organizational success relies on synergy,
interrelations and interdependence between distinct subsystem. According to this theory every
system get affected from the environment and in business system is basically formed of
emergent behavior. In the human resource management there is need to focus on h predicting the
changing pattern of behavior so that degree of adoption to change can be identified. It is applied
to have range of equality among the prevailing situations. Transaction cost theory is part of
corporate governance & agency theory that has principle that cost rises in case of directing the
business (Peltonen and Vaara, 2018). In addition to this, concentration is provided on describing
corporate governance. This as well focuses on recognizing the effect of internal & external
transaction. It pays attention on searching & information, bargaining, decision, policing,
enforcing cost, etc so that control over transaction can be done by specified organization. On the
basis of this, it can be specified that Coolco required to have these theories which can lead to
decline risk & uncertainties regarding quality & prices.
Assessing HRM approaches in practice within a given context
Coolco is one of the food retailing company that operates in highly competitive
environment. There are number of elements which are required to be taken into consideration for
gaining depth analysis regarding the utilization particular HRM approach (Aust, Matthews and
Muller-Camen, 2020). There are different kinds of situation in which business operates and
require distinct form of approaches in turn accomplishing the needs of organization can become
possible.
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From the evaluation of the provided case it can be specified that there is lack of an
effective approach which can enable it to move towards success. There are several contemporary
issue that has been indulged into the management actions of the company due to various social
and economical aspects. The company has planned to get the highly motivated employees into
business for completing roles & responsibilities. For this purpose firm utilizes proactive
approach. It is related with conducting action to prevent the business from any adverse impact.
There are various types of HRM approach which play crucial role in ensuring the
strategic management of the enterprise. There is higher requirement to implement the suitable
approach that can give greater productive outcome. It involves proactive, commodity, human
resource, management, strategic, system and reactive approach (Barclay and Kang, 2019).
Strategic approach give emphasis on having competitive advantages by attaining core
competencies in business. It aids in having combination of talent, skills, etc so that long term
solution can be derived. Management approach is concerned with managing people in the work
place so that all responsibilities of staff are done properly. In addition to this, commodity
approach is related with treating employees not as resources. It is basically related with hiring &
firing on the basis of money not focusing on talent requiring. Reactive approach is related with
giving emphasis on making decision on the basis of prevailing problem so that overcoming
threat to grab opportunity can become possible. In addition to this, achieving the number of
advantages with help of such approaches can become possible.
In the current given context it can articulate that Coolco functions in food retail sector
which needs it to concentrate on getting proper identification of problems so that effective HRM
approach can be executed. There are number of social and economic factors that has impact on
the functional processing of company (Cheng and Hackett, 2021). It has resulted into financial
crises, non-compliance with quality measure, etc. For handling such kinds of threats company
has given focus on deriving appropriate extent recruiting practice which can enable Coolco to
have highly motivated employees. This can permit firm to have highly enthusiastic and talented
staff for coordinating with changing circumstances. It can enable the company to derive
innovative ideas which can contribute in attaining success. On the basis of provided information
it can be specified that having proper culture, talent, performance, management m,
communication and development so that sh core competencies in firm can be derived. HRM
approach focuses on developing effective talent inclining programs that can eliminate
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insecurities. It assists in inclining performance of employees which leads to optimum utilization
of resources, declining of cost, maintaining quality, etc. HRM practices are crucial to motivate,
appraise, reward, improving, etc efforts shared by employee in turn gaining ability to coordinate
with internal & external changes can become possible.
Analyzing internal and external extent of organization so that impact of various factor on
development of role of HR, strategies and practices can be formed
STEEPLE analysis
It is one of the planning tool that is used for marketing strategy by analyzing macro
factors that are uncontrollable. It pays attention on analyzing the factors like social,
technological, economic, environmental, political, legal and ethical (What is STEEPLE analysis?
2021). It can provide assistance in obtaining information regrading macro environment of
Coolco.
Social- cultural
Coolco is one of the successful organization that focuses on identifying socio cultural
factors as highly get affected from it. These elements found from the analysis are rise in the
number of single household, working pattern of parents, inclined in unemployment rate, etc. on
the basis of this, it can be articulated that firm get influenced from this o required to train
employees to deal accordingly.
Technological
Company get affected from this component as higher efficiency & productiveness of the
company depends on this factor. It is important for the firm to give emphasis on having relevant
adoption of the technological aspects to gain competitiveness.
Economic
there is change in the living standard, purchasing power, unemployment rate, etc which are
needed to be focuses while formulating HR strategies. It can give assistance in having s effective
Hr practices like recruiting, paying scale, etc. in turn higher productiveness can be derived.
Ecological
there are few requirements which are needed to be complied by firm for using natural
resources, cost of raw material, quality of products , disposal of waste, etc. It has higher level
of influence on gaining information so that company can properly plan for using resources,
managing human resource to ensure accurate adherence to prevailing rules.
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Political
There are different types of political changes that ha influence on smooth processing of
firm. This change arises due to social & economic problems which impact pattern of demand of
products. Coolco need to concentrate on such aspects like gaining productive outcomes.
Legal
The specified company operates in food retailing sector which require firm to adhere
different kinds of legal requirements of industry. It ensures that it is complying with health &
safety, quality standards, etc. so that accomplishing objectives can become possible.
On the basis of this, it can be specified that these are the few problems which are
required to be taken into consideration for having proper functioning through identifying
relevant HR policy contributing to success. The external condition of the enterprise is not
favorable for the company which need to be improved.
SWOT analysis
It is one of the technique that can contribute in achieving information regarding internal
factors that has impact on the processing of the Coolco. It aids in analyzing strengths,
weaknesses, opportunities and threats.
Strengths
 It has good planning to adhere social
corporate responsibility.
 It has strategic strategy to lower down
cost along with maintaining good
quality (Khoreva and Wechtler, 2018).
 There is enough availability of number
of employees to accomplish objectives.
Weaknesses
 Lack of financial resources which lead
to affect the quality of product.
 There is low morale among employees
due to insure feeling.
 Insufficient capabilities to coordinate
with changing circumstances
Opportunities
 There is rise in usage of digital mode of
purchase which can incline sales
 Utilizing partnership & joint venture
option is available to improve situation.
Threats
 Continuous declining of market share
is affecting liquidity & positioning of
company.
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 Rise in the product line and number of
competitors are creating threat to
sustainability of firm.
3 socio-cultural and economic factors
There are several factors that has higher influence on the HR policies, strategies and structure
formulation. In order to develop an effective functioning of the organization that can enable
enterprise to gain greater outcome require paying attention on having relevant, reliable HRM
policies.
3 socio-cultural factors
 Cultural change is one of the significant aspect that is found from the analysis. There is
change in parent working pattern has been recognized that can enable to incline demand
of its food products (Wang and et.al., 2020). It is required firm to focus on having
significant level of functioning which need company to concentrate on having such HRM
practices that can raise productiveness.
 The awareness regrading quality & environmental safety has increased which need to
emphasis on making employees concern about utilization of resources, etc.
 While making recruitment and implementing other policies it becomes essential for
Cooclo to focus on eliminating discriminating elements in turn gaining competitiveness
can become possible.
3 socio-economic factors
 Unemployment rate is one of the significant factor that has been identified from the
evaluation which need to be highlighted for having corrective human resource
management policy.
 Increased in single household has influence on purchasing power and taste &
preferences. It makes essential for the firm to concentrate on having proper training
&development, appraisal, etc in turn attaining objectives can become possible.
 There is change in the values of customer where they give higher focus on obtaining the
qualitative products with lower price (Bos-Nehles and Veenendaal, 2019.). Attitude of
the targeted audience has been changed which require concentrating on reducing cost .
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On the basis of this, it can be articulated that Coolco as being operator in retail sector
require focusing on gaining information regarding these factors so proper role, strategies and
practices can be decided. It can enable enterprise to attain ability to offering right kind of
responsibility to corrective employees.
Stakeholders interest
This is associated with attaining relevant information about the stakeholders so that
correct development of Human resource policies and strategies can become possible (Mahmood
and et.al., 2019). It comprises stakeholders identification, importance & influence, interest and
strategy plan. This largely contribute in achieving significant factors to make sound decision.
Coolco is successful firm that has both internal & external stakeholders who have depth
amount of interest in the functioning of the company. Its internal stakeholders are employees,
managers, etc. on the other side external users re customers, competitors, regulatory agencies,
investors, suppliers, etc. These both type of stakeholder play significant role in influencing
functioning of firm. For gaining favorable outcome company needs to focus making such human
resource tactic so that positive impact on them to maintain their interest can be derived. It
becomes crucial for the enterprise to focus on having such activities of HR which can incline
ability to coordinate with changing internal & external circumstances. The main reason behind
having is to mitigate conflicting situation that can affect stability of firm.
Proposing solutions to a specified business problem
 It is recommended to the organization to pay attention on developing effective training
and development plan for the purpose of coordinating with socio-cultural factors like
changing pattern of working, attitude, etc.
 This is suggested to Coolco to adapt proper extent of change management in recruiting,
learning & development, performance appraisal, etc. it can contribute in motivating
employees t achieve their objectives along with fulfilling their personal objectives.
 The specified organization to conduct proper allocation, analysis and controlling of
resources so that achieving objectives can become possible by coordinating with
requirement of external condition.
Justification for recommendation
 The main reason behind applying the training & development is to motivate employees
to motivate employees to meet deadlines. It can enhance their morale to contribute higher
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potential from employees to that getting productiveness by maintaining quality can
become possible.
 Fact underlying behind applying change management is to attain competitiveness to cope
up with external situation. This can enable to increase motivation among internal
workers to adhere with prevailing circumstances.
 From the analysis the economic problem of lack of financial resources can improved by
applying the mentioned pattern of working so that modifying condition can become
possible. It can lead to drive optimum utilization of resources that can increase stability
&profitability.
CONCLUSION
From the above report it can be concluded that human resource management is one of the
significant part that contribute in achieving success. The current report has comprised evaluation
of contemporary issues and information regarding HRM theories like transaction cost general
system theory, etc. The HRM approaches included in current study involves management,
strategic, system, reactive approach, etc. Present study has comprised STEEPLE., SWOT, 3
socio-cultural and economic factors, stakeholder analysis, etc. It has given recommendation
along with justification for improving the highlighted problems.
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REFERENCES
Books and Journals
Aust, I., Matthews, B. and Muller-Camen, M., 2020. Common Good HRM: A paradigm shift in
Sustainable HRM?. Human Resource Management Review. 30(3). p.100705.
Barclay, L. A. and Kang, J. H., 2019. Employee-based HRM: Bereavement policy in a changing
work environment. Employee Responsibilities and Rights Journal. 31(3). pp.131-148.
Bos-Nehles, A.C. and Veenendaal, A.A., 2019. Perceptions of HR practices and innovative
work behavior: the moderating effect of an innovative climate. The International Journal
of Human Resource Management, 30(18), pp.2661-2683.
Cheng, M. M. and Hackett, R.D., 2021. A critical review of algorithms in HRM: Definition,
theory, and practice. Human Resource Management Review. 31(1). p.100698.
Khoreva, V. and Wechtler, H., 2018. HR practices and employee performance: the mediating
role of well-being. Employee Relations.
Mahmood, A. and et.al., 2019. Specific HR practices and employee commitment: the mediating
role of job satisfaction. Employee Relations: The International Journal.
Peltonen, T. and Vaara, E., 2018. Critical approaches to comparative HRM. In Handbook of
research on comparative human resource management. Edward Elgar Publishing.
Thite, M., 2018. e-HRM: digital approaches, directions & applications. Routledge.
Wang, Y. and et.al., 2020. Employee perceptions of HR practices: A critical review and future
directions. The International Journal of Human Resource Management. 31(1). pp.128-
173.
Online
HR Theories. 2021. [online]. Available through: <https://www.peoplehum.com/glossary/hr-
theories#:~:text=Human%20Resource%20theories%20is%20a,and%20procedures
%20related%20to%20employees..
What is STEEPLE analysis? 2021. [online]. Available through:
<https://planningtank.com/market-research/steeple-analysis#:~:text=STEEPLE
%20analysis%20is%20a%20planning,the%20macro%2Denvironmental%20external
%20factors.&text=The%20acronym%20for%20STEEPLE%20analysis,%2C%20Political
%2C%20Legal%20and%20Ethical.>
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