Employee Engagement and HR Practices in Wesfarmers
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The report discusses the HR practices and employee engagement level in Wesfarmers. Wesfarmers follows gender equality during the recruitment process and workplace diversity. The report suggests initiatives to increase employee engagement in Wesfarmers.
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Running head: HRM People, Culture and Contemporary Leadership Name of the Student: Name of the University: Author’s Note:
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2HRM Executive Summary The present report deals with the level of employee engagement in Wesfarmers. However, Employee engagement is a crucial part of any business to achieve success. It has been received that recruitment, appraisal, employee development and quality improvement are the major parts of HRM. In the context of Wesfarmers, they focus on anti-discrimination policy, cultural diversity, establishment of positive work culture and employee benefit program. Such HR practicesareusefulforsuchorganizationtoenhancetheemployeeengagementinthis organization. Therefore, bringing cultural diversity in the workplace allows the employees to start a collaborative work. This discards the racism from workplace. However, to increase the employee engagement in an organization it is mandatory for every organization to meet the basic needs of the employees. This can be done by providing well-structured salary and celebrating the employee performance. However, performance appraisal is a good way to respect the employees and engage them in their work. In the context of Wesfarmers, they can follow the salary increment process and the performance celebration technique. This will allow such organization to increase the employee loyalty and revenue generation.
3HRM Table of Contents Introduction......................................................................................................................................4 Overview of the organization..........................................................................................................4 Identification and Discussion of Wesfarmers HR strategies...........................................................5 Evaluation of the HR practices and policies in the Wesfarmers.....................................................5 Overview of the current employee engagement in Wesfarmers......................................................6 A structured plan of initiatives to increase employee engagement in Wesfarmers.........................7 Conclusion.......................................................................................................................................8 References......................................................................................................................................10
4HRM Introduction Organizations are now facing a huge challenge to increase the employee engagement. It isa greatconcernfor every organizationabout howto createhigh levelsof employee commitment in their organization (Bratton and Gold 2017). The human resource manager plays an important role in enhancing the employee engagement in an organization. An HR has much knowledge and good technique to increase the employee engagement in an organization. This study reveals the effectiveness of HR practices in enhancing the employee engagement in Wesfarmers. Wesfarmers is a popular retail organization situated in Australia. This current study deals with the people engagement level and HR practices in this organization. Overview of the organization Wesfarmers is a popular retailer in Australia. This organization offers coal products, chemical, fertilizers and industrial safety products. This organization is considered as the largest retailer in Australia based on its revenue. The revenue generation of Wesfarmers is high than Woolworths and BHP Billiton in the recent years. In the year 2017, the revenue generation was AU$65.98 billion (Wesfarmers.com.au 2018). Wesfarmers has conglomerate structure, which is their winning formula in global retail industry. This structure leads this organization to establish many branches. Therefore, by following this structure, such organization is able to grow and get a high return by taking the risk in business. The mission of Wesfarmers is to deliver the satisfactory return to their clients as well as the stakeholders. Their vision is to develop a disciplined business culture in their organization. Wesfarmers has branches in Southbank, Melbourne, and Perth in Australia. Apart from this, they have a branch in New Zealand also. They have approximately 203,000 employees in Australia. Providing high quality of service to
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5HRM the stakeholders is the major objective of such organization. Therefore, the well conglomerate structure is another effective aspect of such organization to gain competitive advantages in the market. Identification and Discussion of Wesfarmers HR strategies HR strategies includerecruitment and selection, quality improvement, performance appraisal, training, and development. However, Wesfarmers uses a three rounds selection process include telephonic interview, face to face interview and aptitude test. On the other hand, in quality improvement process they assess the employee performance on a regular basis (Wesfarmers.com.au 2018). Therefore, performance appraisal is a major HR strategy of this organization, which is done to motivate and engage the employees in their work. However, performance appraisal and compensation planning is a critical area of HRM (Bratton and Gold 2017). Wesfarmers HRM department gives their focus on performance appraisal process to retain the employees in their organization. However, employee satisfaction is associated with the performance appraisal. For this reason, the HR of Wesfarmers offer good compensation planning to the employee to maximize their engagement. Evaluation of the HR practices and policies in the Wesfarmers Wesfarmers has a dynamic team in HRM department. The major HR practice of this organization is performance and reward program. They have anannual incentive plan for their employees based on their performance. Therefore, they focus on employee benefits program by providingpaid parental leave. The main purpose of this HRM practice is to assist the employeestomakeahealthybalancebetweentheworkandfamilyresponsibilities (Wiscareers.com.au 2018). On the other hand, Wesfarmers targets tobring cultural diversityin
6HRM their workplace. For this reason, the HR has established diversity policy by providing equal opportunity to each employee. This HR practice is established to maximize the employee engagement in their organization. However, cultural diversity is crucial in the workplace to involve the employees in their work (Cascio 2018). Therefore, the HR actively takes part in increasing the employee learning process by providing them training. One of the major HR practices of Wesfarmers is thewomen leadershipin the organization. However, the females often get less respect in comparison the male employees. During the recruitment, the HRM department focuses on the recruitment of female employees in this organization to reduce the gender discrimination. The HR focuses on strength assessment process of the individuals and establishment ofa positive working culture in the workplace. The organizational structure is employee oriented, which leads the employee to work comfortably in this organization. The HR followseffective communicationto build an interpersonal relationship with the employees. This motivatestheemployeestowardstheirwork.TheHRofWesfarmersfollowsanti- discrimination policyto reduce the racism and gender discrimination in the workplace. However, maintenance of equality in the workplace is the major focus of HRM in Wesfarmers. Overview of the current employee engagement in Wesfarmers Employee engagement refers to a workplace strategy to influence the employees to give their best (Mone and London 2018). On the other hand, employee engagement is a process to establish a working environment where the employees are able to show their capability. Employeeengagementdependsonthetrust,integrity,andcommunicationbetweenthe employees and its organization. However, for an organization employee engagement is crucial to meet the organizational goals and objectives. One of the vital theories of employee engagement istheory X and Ythat is proposed by McGregor. This theory focuses on human motivation and
7HRM management in an organization (Gürbüzet al.2014). Theory X highlights the significance of strict supervision. According to this theory, a strict supervision is required to improve the employee performance in an organization. On the other hand, theory Y focuses on the motivating role of job satisfaction. However, job satisfaction influences the employees to perform their tasks properly. By applying this theory Wesfarmers can use the participative management style to increasethesupervisionlevel,whichwillmaximizetheemployeeengagementinthis organization. Wesfarmers has 223,000 employees in the global market and 203,000 employees in Australia. However, this business always tries to learn from their employees based on their issues (Sustainability.wesfarmers.com.au 2018). Many divisions of Wesfarmers have taken a range of employee engagement initiatives to manage regular employee engagement. From the above data it has been found that the employee engagement level is high in this organization. They have taken open survey, employee pulse survey and regular online survey to measure their employee engagement. On the other hand, Wesfarmers always give their concentration to understand the issues and expectation of the employees. They take feedback from their internal stakeholders by conducting stakeholder survey. Wesfarmers invested $8.7 billion to increase the salary and benefit of the employees (Sustainability.wesfarmers.com.au 2018). They have high employee retention in their organization, which ensures that their employee engagement is good. A structured plan of initiatives to increase employee engagement in Wesfarmers Salary increment along with communicating the vision and mission of the organization One of the major initiatives’ of employee engagement is to increase the salary (Mone and London 2018). However, for Wesfarmers, it is important to communicate the vision and mission
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8HRM of the organization with the employees. This will create awareness among them. Hence, to bring the interest of the employees towards the mission of an organization it is important to provide them a good salary. This will fulfill the basic needs of the employees and motivates them in their work. Application of Maslow's motivational theory supports this initiative as this theory also focuses on the physiological needs of the employees. If an employee gets proper salary then their basic needs will be fulfilled as a result, they will involve in their work. Implementation of such initiative will satisfy the employees, which maximizes their performance. However, intrinsic motivation theory supports the significance of salary increment in employee engagement. However, as per this theory, it has been found that internal motivation is important to enhance employee performance (Albrechtet al.2015). Hence, by providing well-structured salary Wesfarmers can carry out internal motivation in their organization. Celebrate the achievement It is important for an organization to celebrate the hard work of the employees. By providing recognition Wesfarmers can celebrate the employee performance. This will show respect the employees, which also increase their confidence level. Mcclelland’s achievement motivationtheorysupportsthatemployeeswantachievementagainsttheirhardwork (McClelland 2015). This increases the level of employee engagement in an organization. However, this theory also supports that if the employees can celebrate their achievement than they become interested in their work, which allows them to engage in an organization. Conclusion The entire study deals with the employee engagement and HR practices in the context of Wesfarmers. It has been found that Wesfarmers follows gender equality during the recruitment
9HRM process. Therefore, workplace diversity is another vital HR practice of this organization, which reduces the racism and brings cultural diversity in the workplace. On the other hand, application of the anti-discrimination policy is an effective HR policy that reduces the inequality based on religion and gender. Apart from this enhancement in salary and celebration of the achievement will be helpful of Wesfarmers to maximize their employee engagement.
10HRM References Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. and Saks, A.M., 2015. Employee engagement, human resource management practices and competitive advantage: An integrated approach.Journal of Organizational Effectiveness: People and Performance,2(1), pp.7-35. Anitha,J.,2014.Determinantsofemployeeengagementandtheirimpactonemployee performance.International journal of productivity and performance management,63(3), p.308. Bratton, J. and Gold, J., 2017.Human resource management: theory and practice. Palgrave. Cascio, W., 2018.Managing human resources. McGraw-Hill Education. Gürbüz, S., Şahin, F. and Köksal, O., 2014. Revisiting of Theory X and Y: A multilevel analysis of the effects of leaders’ managerial assumptions on followers’ attitudes.Management Decision, 52(10), pp.1888-1906. McClelland, D.C., 2015. Achievement motivation theory.Organizational behavior,1, pp.46-60. Mone, E.M. and London, M., 2018.Employee engagement through effective performance management: A practical guide for managers. Routledge. Sustainability.wesfarmers.com.au.2018.Ourpeople.[online]Availableat: https://sustainability.wesfarmers.com.au/our-principles/people/people-development/our-people/ [Accessed 10 Apr. 2018]. Sustainability.wesfarmers.com.au/2018.Stakeholderengagement.[online]Availableat: https://sustainability.wesfarmers.com.au/our-principles/people/people-development/
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