Creation of Value by Sainsbury using Strategic HRM

This report discusses the creation of value by Sainsbury using strategic human resource management, the impact of regional and national culture on HRM practices in Asia, and the organization model of employment and organizational levers used by Sainsbury to create value.

INDIVIDUAL REPORT
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
(A) Creation of value by Sainsbury using strategic human resource management.....................3
(B) Impact of regional and national culture on the practice of HRM in Asia.............................4
(C) Organization model of employment and organizational levers used by Sainsbury to create
value.............................................................................................................................................5
(D) Difference between personnel management and HRM of Sainsbury in Asian countries
using Storey's 27 points...............................................................................................................7
(E) Importance of local culture and HRM practices in terms of hiring and firing in
international- subsidiary or transnational.....................................................................................9
(F) Difference in terms of employment laws when international HRM changes local business
system........................................................................................................................................10
(G) HR practices related to examples of firms..........................................................................11
(H) Recommendation related to HRM practices in order to enhance organizational
performance...............................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Human resource management perform essential function of organization by planning,
organizing and retaining highly dedicated and determined employees within firm for longer time
frame. It also decided several motivation method that could be used to inspired individuals to
work hard so that company can retained its competitive advantages in external environment. This
report is about Sainsbury operate its business in retail sector providing range of products and
services to customers. Such as technology, laundry, health and beauty, kitchen and clothes to
wide range of people for satisfaction of their respective requirements. This report has highlighted
crucial points related to the way organization create value by making use of HR strategies,
impact of regional and national culture on HRM practice. Differences in employment laws in
context of International HRM changes local system business. At last included suggestion that
could be used by Human resource manager for high organizational performance.
MAIN BODY
(A) Creation of value by Sainsbury using strategic human resource management
The term strategic human resource management is the base of strong organization
because it ensures that all the employees of the company are working together in order to achieve
organizational goals (Delery, 2018). This gives greater opportunity to business to become expand
and succeed in the future. It is a broad concept as it helps to generate benefits for the
establishment. The Sainsbury is a leading company in UK and the third largest chain of retail
sector with the share of 16.9% of total UK market (Storbacka, 2021). Therefore, effective
strategic human resource management process is required to approach the company objectives
appropriately. It has been identified that there are four basic purposes of SHRM process within
the Sainsbury are maintaining, development, motivation and retention.
The primary function of strategic human resource management process is to maintaining
the presence of employees within the enterprise in order to support the image and company
within the market place. The employees are the face of the company in front of their competitors
as the products delivered by the company are maintained or generated according to the needs and
demand of customers by employees only after complete research and development process. The
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Sainsbury apply some SHRM functions for maintaining employees within their enterprise such
as recruitment, selection, appraisal, compensation, management and fulfil legal and personal
requirements and framework of the organization. Second stage refers to development stage
which describes the development of employees in overall manner thus develop the organization
as well (Aramburu, 2017). For personal development of employees the company encourage the
activities related to learning and training which ultimately contributes towards the development
of employees knowledge, talent and skill. Third purpose is to motivate their employees in order
to increase their productivity. Sainsbury applies different methods in order to enhance the level
of motivation within them. Last purpose is employees retention which helps in reducing the
organizational production cost. Sainsbury encourages the retention activities in order to sustain
their employees within the organization.
(B) Impact of regional and national culture on the practice of HRM in Asia
A culture is defines as the way of living life by group of people or individuals which
describes their behaviour, values, beliefs that they share with the help of communication and
imitation from one generation to another. Within an organization culture plays a vital role in
order to satisfy the needs and wants of the employees. The culture differences in similar
organizations due to different regions also affects the human resource management practices in
Asia. The difference among the Sainsbury organization in United Kingdom is different from the
company branches located outside UK (Brewster, 2017). The cultural differences within the
organization does affect the HR practices in various ways. Sometimes it has led towards the
ineffective communication among employees, thus resulted in confusion and conflicts among
HR and employees of the enterprise.
The cultural changes impact on the human resource practices are: Recruitment policy: Every country has their own policies related to recruitment function
even the same organization have different policies regarding recruitment of employees
within the organization. Hiring employees in Sainsbury includes cultural attitude that the
enterprise follows Geocentric approach in order to recruit employees within the
organization (Hoffmann, H., 2019). The approach described as any individual can apply
for specific position of the organization all over the world. The best and suitable
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candidate has been appointed by the company for the position within the establishment.
This strategy leads to more understanding and bonding among employees. Selection policy: Selection process is different in various countries such as extensive
selection process has been followed by Asia for selecting the right candidates within the
company. Sainsbury follows screening process in order to select the candidate which
provide sessions by professionals who try their maximum to make the candidate aware
about the workplace culture and style of living within that particular country (Brown,
2019). Training policies: Human resource managers find it difficult to train different region
candidates. Sainsbury's managers take necessary actions in order to give training in order
to develop understanding related to culture differences in a manner so that the candidate
will able to work appropriately.
 Compensation policy: There is major difference between the tax policies, cost of living,
salary, etc. in different countries. So, Sainsbury follows the structure which described as
paying more than the amount that the candidate is getting in the home country which
helps the HR managers to satisfy the needs of employees.
(C) Organization model of employment and organizational levers used by Sainsbury to create
value
The supported employment model helps the organization in order to employ candidates within
their company. The path or direction provides support to the persons in order to find the correct
job with full confidence with the help of right support (Jaaron, A.A., 2018).
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As shown in the above diagram there are five stages of supported employment model which are
described below: Customer engagement: Much employment jobseekers are using traditional ways to
search their job opportunities (Yamaguchi, S., 2020). The Sainsbury encourage people to
and provide them better job opportunities in order to perform their talent within the
organization and improve their quality of life. Vocational profiling: At this stage the aspirations of job seekers needs, skills previous
experiences and job interests of the jobseeker has been taken into consideration.
Sainsbury develops a good job match according to the skills and talents required for that
particular profile. Many people require job assistance while choosing their correct job
profile so these kinds of things has been explained at this stage. Job matching: The HR managers have to match the candidate with the correct job
position in order to get the correct and desirable outcome which ultimately provides
benefit to the candidate and company as well. Sainsbury's managers ensures that each
candidate must feel satisfied with their job profile (Andalib, 2019).
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Illustration 1: Supported Employment Model
Source: (Remploy, 2021)

 Working with employers: Many employers are anxious before employing someone in
their company as they are not pretty much sure about their talents and skills. The HR
managers have to take risk and take decisions accordingly. Sainsbury's HR managers are
adopts the strategy which shows that recruit the people and then train them according to
company needs and requirements rather than train them and then recruit them within the
establishment (Mizoguchi, 2019). The managers believe that working with efficient
employees, the candidate will also able to grasp things slowly or gradually.
 On-off job support: It is necessary to support and encourage the involvement of HR
managers for employment and co- workers. Sainsbury prepares individual development
plans in order to monitor employees learning and their understanding after training.
Levers used by Sainsbury in order to create value are Understandability with the help of
enhancing awareness regarding products and get their proper feedback helps the company to
understand the customers needs which helps to create value, next is convenience to their
customers regarding products and services also builds value effectiveness, third one is
desirability which expresses the concept that company produce products according to the desires
of consumers which helps to enhance the value of company automatically, fourth is rewarding
which shows giving rewards to their employees which enhances the reputation of the company in
the mind of employees and the last is habit which express that make a habit of taking feedback in
order to sustain value of the company (Batkin, 2017).
(D) Difference between personnel management and HRM of Sainsbury in Asian countries using
Storey's 27 points
Human resource management is a practice of managing people within the organization
to achieve better performance level. While the personnel management is focusing on the hiring
and development of employees in order to make them more valuable for the company (Rios,
2018). The practices adopt by the managers of Sainsbury in HRM and personnel management
are illustrated as follows:
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Dimension Personnel Management Human Resource
Management
Contract Majorly focused on written
contracts
Aim to go beyond contracts
Rules Particular about rule and stick
to them strictly
Flexible towards rules
Guide to management action Particular procedure Procedure follows according to
business requirements
Behaviour significance Based on norms, customs and
practices prepared
Based on values of the
company and their mission
Managerial task Believes in monitoring and
controlling
Believe in nurturing
Nature of relations Pluralist Unitarist
Conflict Systematize Underestimated
Key relations Labour management Consumers
Initiatives Slowly and gradually take
initiative
Non-discriminatory initiatives
Corporate plan Marginal towards planning Central approach towards
planning
Speed of decision Slow speed Fast decision maker
Management role Transactional Transformational leadership
Key managers Specialists Business line managers
Communication Indirect manner Direct manner
Standardization High Low level
Prized management skills Negotiation Facilitation
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Selection Select separate tasks Select key tasks
Pay Fixed salary Performance related
Conditions Separately negotiated Harmonized manner
Labour management Collective bargaining contracts Individual contracts
Thrust of relations Through facilities and training Marginalized
Job categories Many Few
Communication Limited flow of
communication
Enhanced flow
Job design Division of labour Teamwork
Conflict handling Reach temporary peace Manage culture within the
organization
Training and development Strictly follow courses Learning companies
Strategies Personnel procedures Cultural, personnel and
structural strategies
(E) Importance of local culture and HRM practices in terms of hiring and firing in international-
subsidiary or transnational
Culture can be defined as a system of value, belief, behaviour and though that group of
individuals has, and they accept the same, passed on to new generation. So, it explained about
the way people behave in the society with each other or interact with each other. Local culture
and HRM practices plays an important role in hiring and firing of individuals within enterprise
so that necessary operation can be easily completed. Every country and ever company have its
different procedure and policies in order to recruit or hire right individuals at right place.
Moreover, hiring employees within company mainly depends upon local culture or attitude of
people that are living in society (Rigby and Ryan, 2018). An international subsidiary such as
Sainsbury HR manager while recruiting individuals must have sufficient knowledge about local
culture of Asia in order to know their thinking, point of view etc. HR manager by knowing the
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culture of Asia people is able to find alternative method that could be used to attract and retained
them within organization for smooth performance of several activities (Tung and Punnett, 2017).
Furthermore, it can be illustrated that local culture and HRM practices are also played significant
role in deciding the firing procedure of employees. For example: There is culture in Asia to
dismiss an employee on fair and just basis that means it should have a valid reason for
dismissing the individual for the organization. In in other words, HR manager can fire employees
if it does not follow or perform its duties as per the contract or agreement made at time of
employment. Otherwise, it does’ nt have a right to terminate employees on unnecessary basis for
growth and benefits of organization in external environment (Bailey and et.al., 2018). So, HR
manager of Sainsbury while taking an decision related to hiring and firing in international level
considered the local culture so that no undue or negative impact can be caused to employees in
any circumstances.
At the same time it can be stated that Sainsbury is an international organization having its
operation in different parts of the country. So, HR manager in context of Asia, while hiring
people make different use of practices so that potential candidate can be hired for organization
growth and expansion in retail sector. Likewise, on the basis of culture, preferences and needs of
people HR manager decided appropriate salary or compensation given to employees so that they
can be attracted to perform several functions within organization.
(F) Difference in terms of employment laws when international HRM changes local business
system
Employment law can be stated as labour law made by government in order to build strong
relationship with employees and employer of organization. It also specifies about right and
responsibilities of each individual that is employee and employer while working with each
another, thereby reducing the chance of conflict and confusion. Each country government have
different employment law in terms of wages or compensation, leave and some other benefits that
are provided to each individual (Greer, 2021). So, Sainsbury HR manager in order to decided
salaries, provide various leaves or the way to deal with employees has followed rule and
regulation made by Asian countries. Moreover, the employment law is also different in terms of
working hours that each individuals needs to devote in order to complete the task so that end
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objective of company can be attained. Furthermore, the laws has specified about the method that
should be used by employer in order to hire right individuals at right place so that company can
enjoy higher profit share. These laws also specified various detailed such as the basis on which
employees can be terminated such as when they have not completed their respective duties and
responsibilities in better manner. HR manager of Sainsbury in Asian country is free to terminate
employees if it does not complete the task as per the contract or agreement made at time of
recruit of individuals within organization (Edwards, 2017). Moreover, employment law specified
that HR manager needs to protect crucial or personal information of employees so that nobody
can unnecessary use of it that can adversely harm the individual. Therefore, employment law
varies from countries to countries as per their people preferences, disposable income, culture and
another factors. So, it can be illustrated that there are differences in employment law when
international HRM change local business system.
(G) HR practices related to examples of firms
Human resource manager is responsible for recruiting, selecting and retaining talented,
experienced and dedicated employees in the company for many years. Different practices are
use by HR manager of companies in order to handle and manage diverse range of people
working in the organization for achievements of end objectives. Such as providing security and
safety to employees in working place so that they can safely work towards benefits of company.
For examples: Marks and Spencer, Human resources manager take necessary steps in order to
ensure safety and security of employees at workplace such as provident fund, use of danger sign
and medical kit. Selective hiring is also one the practices used by HR manager to have dedicated,
talented and more qualified employees in the organization (Berman and et.al., 2019). Likewise,
Hr manager of Tesco focused on selective hiring so that company can have talented more
experienced individuals to complete their respective task. For selective hiring it has conducted
interview, test and make use of many more method in order to have potential candidate in the
company. From the study it has also been identified that HR manager of companies are also
following practices of fair and performance based compensation to each employees that are
working in the firm. For examples: ASDA Hr manager decided compensation to be provided to
employees on the basis of overall performance level of individuals that has helped in motivating
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each individuals to work hard for growth and expansion of company (Boon, Den Hartog and
Lepak, 2019).
(H) Recommendation related to HRM practices in order to enhance organizational performance
The above analysis, it has helped in understanding that company having international
operation then HR manager needs to focused on external changes having in global environment
in order to effectively formulate better strategy for benefits of company. So, various suggestion
that HRM of Sainsbury needs to implement to attract and retained highly talented, skilled and
qualified employees can be illustrated as follows:
1. HR manager needs to focused on building friendly and supportive work culture in
company so that employees can gained confidence related to the way specific work needs
to be completed. HR manager by providing healthy culture can easily motivate diverse
range of people to work in team rather than individuals for achievements of end goals of
company.
2. Moreover it can be stated that HR manager of Sainsbury should also make use of
innovative technology such as digital and information in order to maintained record of
various individuals. Use of new technology will help in maintaining complete detailed
related to each employees working in different geographical location of company
operate such as Asia. Thereby, it is able to motivate employees by understanding their
preference in better manner.
CONCLUSION
From the above report it can be concluded that Human resource manager is important for
organization as it responsible for selection and retention of employees that can highly contribute
in growth and expansion of firm. Moreover, it can be summarized that regional and national
culture have impact on HR practices as it have to make policies and procedure as per the culture
of people in order to make them happy and satisfied. At last it can be concluded that employment
laws helps in maintaining strong relationship between both employer and employees thereby
yielding in enhancing overall profit of company.
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Zaid, A.A., Jaaron, A.A. and Bon, A.T., 2018. The impact of green human resource management
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Online
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<https://www.remploy.co.uk/articles/blog/supported-employment-part-two>.
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