This report elaborates on developing an HRM plan for an organisation named Woolworths, one of the major supermarkets of Australia. It includes a strategic organisational analysis, role of HRM, HR functions, and challenges faced by the organisation.
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Running head: HUMAN RESOURCE MANAGEMENT PLAN Human Resource Management plan Name of the Student: Name of the University: Author notes:
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1HUMAN RESOURCE MANAGEMENT PLAN Table of Contents 1. Introduction............................................................................................................................2 2. Discussion..............................................................................................................................2 2.1. Strategic Organisational Analysis...................................................................................2 2.1.1. Company Background..............................................................................................2 2.1.2. Vision.......................................................................................................................3 2.1.3. Mission.....................................................................................................................3 2.1.4. Values.......................................................................................................................3 2.1.5. Challenges................................................................................................................3 2.1.6. PEST Analysis.........................................................................................................4 2.1.7. SWOT Analysis.......................................................................................................5 2.2. Role of HRM to achieve the business issues facing by the organisation........................6 2.3. HR functions within the organisation.............................................................................7 2.3.1. Recruitment process.................................................................................................7 2.3.2. Selection process......................................................................................................7 2.3.3. Performance management........................................................................................7 2.3.4. Management of HR functions in the organisation...................................................7 2.4. Challenges affecting the organisation.............................................................................8 2.5. HRM Plan........................................................................................................................9 4.Conclusion........................................................................................................................14 5.References:.......................................................................................................................15
2HUMAN RESOURCE MANAGEMENT PLAN 1. Introduction Human Resource Management Plan (HRMP) sets out the strategies that are required for practising HRM in an organisation. Its main purpose is to help the company in achieving its objectives and mission by means of a systematic design and implementation of the HRM strategies, programs and policies (Mayrhofer, Brewster & Morley. 2000). It is built upon a thorough understanding of the vision, values, policies, mission, programs and challenges. ThisreportshallelaborateondevelopinganHRMplanforanorganisationnamed Woolworths, one of the major supermarket of Australia. Firstly, a strategic organisational analysis shall be performed, examining the strategic and business plan including the mission, vision, challenges and values facing the organisation and conducting a PEST and SWOT analysis. Building on these results, the role necessary for the HRM to play for achieving the business issues facing by the organisation will be assessed. Furthermore, a total of five HR functionsthatarepractisedwithintheorganisationwillbeidentifiedandmanaged. Thereafter,someHRtechniques,processesandsystemsthatchallengeoraffectthe organisation shall also be assessed. Finally, an HRM plan will be formulated for the prioritised challenges faced by the organisation. 2. Discussion 2.1. Strategic Organisational Analysis 2.1.1. Company Background Woolworths is one among the top Australian Supermarkets and is a leading company within the retail industry. It was founded in the year 1924 along with Coles. It accounts for about 80% of the total market share of Australia. It is headquartered in Bella Vista, New South Wales, Australia (Wardle & Chang, 2015). At present, it has expanded itself to 995
3HUMAN RESOURCE MANAGEMENT PLAN different locations world-wide and earns a revenue of about 56.726 billion dollars as per the year 2018 (Sullivan & Gouldson, 2017). It is also to mention that Woolworths Supermarket is a subsidiary of its parent company Woolworths Limited. 2.1.2. Vision The vision of Woolworths is “being one of the most responsible retailers in the world” by being committed towards doing good business for its customers, planet and people (Nilssen, Bick & Abratt, 2019). It seeks to provide top quality products and services to all its customers and it does so by means of implementing several price strategies, fresh food strategies and the human resource strategies. 2.1.3. Mission The mission of Woolworths is to provide its customers with the right shopping experience and exceptional quality product every time they visit. 2.1.4. Values The values of Woolworths inform and underpins the various different ways in which the company conducts its business all over its Group. Right from the value based leadership to the passionate brand advocacy, Woolworths always seek for embedding its values over all the dimensions of the business. Its values demonstrate that the company is customer obsessed, responsible, committed, inspirational and collaborative to the quality (Mokatse and Van Wyk, 2017). 2.1.5. Challenges Organisations like Woolworths face many challenges in terms of HRM. Both the employer and the employees face difficulties in conducting smooth flowing business. These issues should be solved as early as possible for ensuring that a healthy working environment
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4HUMAN RESOURCE MANAGEMENT PLAN is in place and the organisational productivity is not hampered at all (Ferro et al., 2019). It is to note that in the retail industry, the employees are in direct contact with the customers. This is why, the human resource departments need to build a workforce that is efficient and motivated enough for shouldering the responsibilities that are pertaining to the job. Furthermore, in the retail industry, the biggest workforce involves the people who deal with the customers directly and adhere to all their needs and requirements. Therefore, many of the times, the employees working in Woolworths are aware of their position and they do not need briefing (Matthias et al., 2017). The significant issue that lies here is on the fact that whether the human interface would prevail or not in the wake of online revolution. At present, most of the retail industry sell their products online. This is killing the jobs and at the same time, is decreasing the interaction and communication in between the customers and the client significantly. This prevents huge number of people from not choosing for the jobs present in the retail sector. Moreover, the customers of Woolworths belong from different background and ethnicity in this era of globalisation. Many of the times, these customers face lots of problems in understanding the signs and reading the instructions printed on their goods. This further negatively impact the sales of Woolworths by making it losing its customers. It at time go very hard on its employees by levying longer working hours and providing low pay with no holidays and growth opportunities. These situations discourage the employees working in Woolworths and they do not give their best to their jobs. 2.1.6. PEST Analysis Political- There is a very political pressure against the duopolistic nature of the Australian retail industry and market (Richards, Kjaernes & Vik, 2016). While Woolworths has been justifiably criticised for market dominance, there has been deficit in their scrutiny of
5HUMAN RESOURCE MANAGEMENT PLAN regulatory, political failures and legislative that have allowed the supermarket duopoly to take place. Economical- There are easing regulations in the retail industry that is paving ways for the new entrants (Tangires, 2019). With the same there are many lacklustre customers who spend in Australia and this is affecting the retailers. Socio-cultural- The relationship with the suppliers are poor and this is resulting in change in the business culture. Woolworths have enjoyed a very dominant position within the retail industry and has record of poor relationship with the suppliers (Pedersen, Gwozdz & Hvass, 2018). The duopolistic nature of the Australian market having the retailers treating arrogantly to the suppliers has brought in some serious cultural issues like supplier gangling etc. Technological- The implementation of the SAP based merchandising systems in Woolworths for improving the efficiency is expected to bring in a positive momentum towards the growth of sales for Woolworths (Norton, 2015). It has also rolled out of the cloud based SAP SuccessFactors human capital management system which has biggest payroll implementation in the Australia. 2.1.7. SWOT Analysis StrengthsWeaknesses 1.Have stores in more than 990 different locations worldwide 2.Good brand image 3.One of the oldest, reliable and trusted retail brands of Australia 4.Very strong commitment to 1.Late entry in the online retail 2.Very low international presence 3.Losing the competitive advantage towards the present competition within the industry.
6HUMAN RESOURCE MANAGEMENT PLAN sustainability and environment 5.Huge range of products and services 6.Effective CSR programs 7.Good amalgamation of the online and brick & Mortar based sales channel OpportunitiesThreats 1.Could opt for better promotions for winning back the customers. 2.A very promising growth of the retail sector in the coming years 3.Huge retail markets in the emerging economies 1.Very slow growth of the online retail in Australia 2.The aggressive expansion of ALDI 3.Loss of customers in FY14 4.Having a discounting wars with Coles. 2.2. Role of HRM to achieve the business issues facing by the organisation Strong HRM helps the businesses in developing a competitive edge over their other competitors in the market. At every levels of the organisations, both the managers and the HR professionalswork togetherfor developingtheskillsof the employeesand HRMin particular, plays a great role in developing employee commitment, morale and satisfaction level that ultimately helps the organisation to achieve its desired goals. In order to help Woolworths in addressing the issues that it is facing in the recent years. HRM has a significant role to play. For dealing with this issue in regard to job role, job analysis and job design, it is very necessary for the HR department of Woolworths to develop capability among its workers (Dekker et al., 2017). The career pathways are also required to be modified for the Woolworths’ employees in order to ensure that they stay in the organisation and does not look for any other options outside to work for. Rewarding attitudes from
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7HUMAN RESOURCE MANAGEMENT PLAN employers motivate the employees for working harder and improving their performances. Under un-acknowledged and under-appreciated employees would be very less interested to give their best to their job. It is the responsibility of the HRM to establish a strong culture that recognised the hard work of the employees and its results into rewarding them for the same. Many of the times, due to lack of motivation, incentives and growth, the employees leave their organisation as they are dissatisfied with such things. For avoiding the distasteful situation, the idea of commitment for valuing the needs is required to be established among the employees of Woolworths and this can only be done through effective HRM practices. Both the employer and the employees face difficulties in conducting smooth flowing business These issues should be solved as early as possible for ensuring that a healthy working environment is in place and the organisational productivity is not hampered at all (Ferro et al., 2019). 2.3. HR functions within the organisation 2.3.1. Recruitment process The recruitment process at Woolworth is based on the available jobs and positions present within the organisation by means of examining the total availability of the candidates for the very position (Rahman, 2016). The company dangle both the part time and full time options for attracting candidate into the position. However, it is to note that it is only the store managers who are kept as full time or permanent at Woolworths. 2.3.2. Selection process The selection of the candidates is done on the basis of merit list and their expertise. The company conducts an interview process after assessing the applications of the candidates through various job portals where Woolworths provide its job positing. It is on the basis of these postings that the company hire the potential candidates.
8HUMAN RESOURCE MANAGEMENT PLAN 2.3.3. Performance management The organisations provide constant feedbacks to the employees on their work. It conducts performance appraisals for the employees. On the basis of these performance appraisals, it improves the designation of its employees, giving them the responsibility to look after other higher departments. 2.3.4. Management of HR functions in the organisation It is to note that there are a total of three main level at which the line managers and the practitioners together or individually operate. They include- operational level, strategic level and functional level. The practitioners along with the line managers develop the action plans for meeting the present needs of labour in the organisation. On the other hand, at the strategic level, the practitioners are involved in the corporate planning and human resource. Lastly, the line managers are responsible for carrying out the several different activities at the functional level that make sure that the employees are at the right time, in right place and at right cost. In case of Woolworths, it is to note that it operates its HR functions at functional and strategic level. It is due to the fact that the practitioners are involved in the HR planning and the corporate planning at the strategic level. Whereas, at the functional level, the HR department ensures that the employees are at right place at right time and are provided right cost. 2.4. Challenges affecting the organisation Woolworths has faced several challenges in terms of Strategic HR planning. Firstly, it is to mention that when Woolworths moved for the greener pastures in the other business enterprises, it undergone high rate of employee turnover. Also, many of the times, employees at Woolworths quit their job on a regular basis of getting better opportunity in the other organisations. The HR department looked for several different ways for reducing this.
9HUMAN RESOURCE MANAGEMENT PLAN Secondly, the company face the biggest issue in attracting and managing the talent and skills that are required for helping the company enable its strategy. Thirdly, very recently, the company faced the challenge of culture adoption by the employees in its new invested nations and locations. The customers of Woolworths belong from different background and ethnicity in this era of globalisation (Piller, 2017). Many of the times, these customers face lots of problems in understanding the signs and reading the instructions printed on their goods. This further negatively impact the sales of Woolworths by making it losing its customers. Fourthly, the employees at Woolworths remain in constant fear whether they would be ousted from the job or not. It also enforce some additional pressure on the HRM department of Woolworths as they need to work harder for motivating their employees that this is a mere rumour and it is not necessarily true. 2.5. HRM Plan HRM Plan 1.Employee Turnover ObjectivesTo reduce the rate of employee turnover in Woolworths by 20% within 6 months. Increased employee engagement To reduce the cost of turnover Implementation StrategiesThe HR Manager to consider a number of strategies to: Meeting the benefits Satisfaction of the employees Providing growth opportunities Conducting regular meetings Assessing the rate of hiring process
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10HUMAN RESOURCE MANAGEMENT PLAN satisfaction Providing training Incentive plans Maintaining consistency and fair treatment of all employees for all positions ResponsibilityHR manager- Salary fixing, compensation and benefits, employee relations, training and development. CEO- Budget approvals, position approvals, incentive plan approvals, salary approvals Job Analyst- Salary fixation Key Performance IndicatorsRate of employee productivity Return on Investment Ratio of Salary Competitiveness Percentage of the cost of workforce Rate of absenteeism Average tenure Voluntary termination rate Total number of full time employees 2.Recruitment and Selection ObjectivesTo make sure top talents are recruited and selected for the vacant position Successful in attracting suitable
11HUMAN RESOURCE MANAGEMENT PLAN candidates Efficient use of time and resources for the Recruitment and Selection process Implementation strategiesTaking tests during interview Creating high performing employee profile R&S flow chart development The expectations from the employees should be clearly stated Using proper assessment methods for the job applicants ResponsibilityHR manager- Salary fixing, training and development, legal consultation CEO- Salary structure approvals, position approvals Job Analyst- Salary fixation Line manager- Establishing the selection criteria, duties and responsibilities Key Performance IndicatorsObserving government legislations Budget implications Establishing a realistic recruitment and selection time frames Cost of human capital Increased productivity Return on the investment
12HUMAN RESOURCE MANAGEMENT PLAN 3.Cross Culture Adoption ObjectivesEstablishment of culture needs recognised by the hard work of the employees More number of international customers More sales in products and services in international borders Implementation strategiesProviding training and development sessions to the employees to make them gain good knowledge of the foreign culture Ignoring the cultural differences Make the product tags and labels in the commonly spoken language (English) Hiring more number of local candidates ResponsibilityHR manager- employee relations, training and development. CEO- Budget approvals, location approvals, salary approvals Job Analyst- Salary fixation Key Performance IndicatorsRate of product sales Number of product sales Rate or revenue collection in foreign location Number of visitors arriving at the local
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13HUMAN RESOURCE MANAGEMENT PLAN stores Service and employee performance feedbacks from the customers 4.Productivity ObjectivesTo increase the organisational productivity by 20% within 6 months To make employees happier and satisfied ensuring less employee turnover To ensure that there is enjoyable and positive working environment for the employees with no discrimination Implementation strategiesGood incentive plans Comfortable working environment Regular meetings Performance appraisal Ethical treatment Supporting flexible working Creating a culture of mindfulness, collaboration and communication Growth opportunities Rewards and Recognition ResponsibilityHR manager- Employee relations, compensation and benefits, growth opportunities
14HUMAN RESOURCE MANAGEMENT PLAN CEO- Budget approvals, position approvals, incentive plan approvals, salary approvals Key Performance IndicatorsRate of turnover Rate of absenteeism Labour utilisation Labour materials Customer Satisfaction Rate of Sales Revenue Team effectiveness ratio 4.Conclusion Hence, from the above analysis it is to state that Woolworths indeed has a dedicated HR department in place and they follow the functional and strategic level of HR functions. However, it faces several issues in terms of employee turnover, organisational productivity, recruitment and selection and cross cultural adoption when operating in international borders. In order to address these issues, the HRM department of Woolworths has a significant role to play. For dealing with this issue in regard to job role, job analysis and job design, it is very necessary for the HR department of Woolworths to develop capability among its workers The career pathways are also required to be modified for the Woolworths’ employees in order to ensure that they stay in the organisation and does not look for any other options outside to work for.
15HUMAN RESOURCE MANAGEMENT PLAN 5.References: Dekker, S., Graham, L., Lincolne, J., Colley, S., & Oberg, M. (2017). Innovation and emerging paradigms: Shifting the needle on safety: progressing from dogma to scienceThis chapter was written in collaboration with. InPractical Guide to Safety Leadership(pp. 120-164). Routledge. Ferro, C., Padin, C., Høgevold, N., Svensson, G., & Sosa Varela, J. C. (2019). Validating and expanding a framework of a triple bottom line dominant logic for business sustainability through time and across contexts.Journal of Business & Industrial Marketing,34(1), 95-116. Matthias, O., Fouweather, I., Gregory, I., & Vernon, A. (2017). Making sense of big data–can it transform operations management?.International Journal of Operations & Production Management,37(1), 37-55. Mayrhofer, W., Brewster, C., & Morley, M. (2000). The concept of strategic European human resource management. InNew challenges for European human resource management(pp. 3-33). Palgrave Macmillan, London. Mokatse, K. M., & Van Wyk, J. P. H. (2017). pH-Values for optimum saccharification of various waste paper materials by cellulase from trichoderma viride.J Basic Appl Sci Res,7(9), 18-26. Nilssen, R., Bick, G., & Abratt, R. (2019). Comparing the relative importance of sustainability as a consumer purchase criterion of food and clothing in the retail sector.Journal of Brand Management,26(1), 71-83. Norton, A. L. (2015). Enterprise resource planning II-A review of critical success factors.International Journal of Computer Science and Information Security,13(11), 5.
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16HUMAN RESOURCE MANAGEMENT PLAN Pedersen, E. R. G., Gwozdz, W., & Hvass, K. K. (2018). Exploring the relationship between business model innovation, corporate sustainability, and organisational values within the fashion industry.Journal of Business Ethics,149(2), 267-284. Piller, I. (2017).Intercultural communication: A critical introduction. Edinburgh University Press. Rahman, M. (2016). Recruitment and selection process at J & L Fashion Ltd. Richards, C., Kjærnes, U., & Vik, J. (2016). Food security in welfare capitalism: Comparing social entitlements to food in Australia and Norway.Journal of Rural Studies,43, 61- 70. Sullivan, R., & Gouldson, A. (2017). The governance of corporate responses to climate change: An international comparison.Business Strategy and the Environment,26(4), 413-425. Tangires, H. (2019).Movable Markets: Food Wholesaling in the Twentieth-century City. JHU Press. Wardle, J. L., & Chang, S. (2015). Cross‐promotional alcohol discounting in Australia's grocery sector: a barrier to initiatives to curb excessive alcohol consumption?.Australian and New Zealand journal of public health,39(2), 124-128.