Sainsbury's Organisational Performance and HRM

The study aims to evaluate Sainsbury's organisational approach to human resource management and diversity policy in the context of competitive advantages. It presents a positive approach towards organisational policies of human resource management and diverse workforce. The analysis evaluates external and internal factors that influence competitive advantages, providing insights into Sainsbury's HRM and diversity management practices.

MANAGING HUMAN RESOURCES
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Table of Contents
Introduction................................................................................................................................3
Analysis of Sainsbury’s approach towards Human Resource Development.............................3
Analysis of Sainsbury’s approach towards diversity management in workplace......................5
Evaluation of Sainsbury’s approach towards Human Resource Management in the context of
competitive advantage of the organisation.................................................................................7
Conclusion................................................................................................................................10
Reference List:.........................................................................................................................11
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Introduction
Human resource is the most important resource for an organisation. This is responsible
regarding the organisational performance and development of the company. Management of
the employees is certainly an important task in this perspective. Different organisations adopt
significant approach regarding the management of Human Resources. Sainsbury’s is one of
the largest members of the chain of the supermarkets of UK. The learner has presented the
study based on the organisational functions and approaches of Sainsbury’s regarding the
Human Resource Management. This study is intending to analyse the organisational approach
of Sainsbury’s regarding the Human Resource Management. Another important issue
regarding the atmosphere of the organisational workplace as well as performance of the
organisation is the management of diversity regarding the workforce of the organisation. This
presents the approach of the organisation towards the equality offered to the employees of the
organisation. Several factors of the organisations are related with the competitive advantages
of the organisation. This study will present an evaluation of both the internal and external
factors of the company to determine its impact of the competitive advantages of Sainsbury’s.
Thesis statement of the study suggests that it is intending to evaluate organisational approach
of Sainsbury’s towards Human Resource Management and diversity management along with
external as well as internal factors in the context of competitive advantages of the
organisation.
Analysis of Sainsbury’s approach towards Human Resource Development
Sainsbury’s is approaching to offer a healthy and competitive workplace for the employees in
order to achieve better performance from the employees. Hence, the organisation promotes
talents and creativity regarding the workforce of the organisation. The organisation takes a
positive approach towards the Human resource Management of the as they valued their
employees as the base of organisational performance. The organisation has invested large
amount of money and time regarding the development of the skills of employees
(sainsburys.co.uk 2017). In order to manage its workforce, the organisation attempts to
develop the workplace as well as invest to energise and motivate them.
In order to manage the human resource of the organisation, Sainsbury’s offers a certain
package of competitive rewards to its employees. Annual report of the organisation suggests
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that the company is offering wages to their employees even more than the average wages of
living in the perspective of the country (sainsburys.co.uk 2017). In terms of 2015-16 record,
Sainsbury’s has offered living wages to its employees more than 2.2% comparing with the
national record. Though the data has reduced in the context of next year, yet it is above than
that of the national level. That suggests the organisational approach towards the human
management. Along with the living wages of the employees, the organisation also offers
other facilities to the employees including discount and pension facilities. Thus, the
organisation attempts to keep their employees happy and fit in the organisational context.
Employee skill is an important aspect regarding the organisational performance. As suggested
by et al. (2014, p.59), regarding the market competition, it is important to develop the skill of
the employees. This helps both the function of organisational development as well as
individual development of the employees of the organisation. Sainsbury’s not only provide
the on-job training to the employees but also increase the investment in this perspective. This
helps the employees to perform better and feel valued regarding the organisational context as
this helps them to develop the professional qualifications of the individuals. In order to
realise the practical situation of the scenario, the organisation also examine the impact of the
organisations practice regarding the human resource management.
They applied certain tools in order to evaluate the response of the employees. Sainsbury’s has
conducted a survey on 2016-17, which was attended by 116,000 employees of the
organisation. Their responses suggest the effectiveness and efficiency of the organisational
approach towards the management of human resource in the organisational context. 77 %
cent of the employees has suggested that they have found workplace of Sainsbury’s is great
one to perform. 78% of the organisational employees of Sainsbury's are agreed that the
organisation is honest while approaching towards the development and benefits of the
employees. These records are suggesting that Sainsbury’s approach towards human resource
management is efficient and effective enough.
In order to improve the organisational performance of Sainsbury’s has put emphasis on the
creative ideas of the employees. The organisation also values the concepts and remarks of the
employees regarding organisational performance. While identifying the requirements of the
employees regarding the organisational context of Sainsbury’s, the organisation evaluates the
views of the employees from separate functions of the company. The organisation is also
intending to figure out the loyalty of the employees towards the organisation. The
organisation is also intending to examine the affection of the employees towards the provided
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job responsibilities. This will allow the organisation to figure out the requirements of the
employees regarding the work environment and responsibilities. The organisation continues
to invest regarding the performance of the employees. Based on such evaluations,
Sainsbury’s invest to develop the skill of the employees. An important approach of the
organisation towards the human management is listening to the feedbacks of the employees.
This determines the organisational activities regarding their skill development.
The organisation has already received achievements regarding their approach to invest in the
development of human resource. Annual report of the organisation has presented that 413
employees of Sainsbury’s has been enrolled in 2015-16 in order to receive training in the
context of organisational context (sainsburys.co.uk 2017). There was significant number of
apprentices who completed training. This training program has improved certain skills of the
employees that help both the organisation as well as individual development. The
organisation has aimed to increase the number up to 2500 within 2020.
Analysis of Sainsbury’s approach towards diversity management in
workplace
Organisational policy towards diversity management is one of the important factors regarding
the development of the organisation. It also influences the performance as well as
environment5 of the workplace of the organisation. As stated by Harvey and Allard (2015,
p.51), diversity is subjected with better performance as well. This helps the organisation to
offer better service to its customers as diverse workforce is an additional benefit for the
organisation in order to serve the diverse customers. Sainsbury’s has put emphasis on the
diverse work culture o in the organisation to meet the requirements of the customers. The
organisation also values the different view of the employees regarding the diverse culture
regarding the organisational performance. The organisation also supports the commitment of
the government regarding the gender pay gap. They have built a group to steer the diversity
within the organisational workforce. This group includes CEO; director of HR, secretary of
the organisation and many others belongs to the authority of Sainsbury’s.
This group is intending to monitor the organisational performance regarding the diversity in
the work force. Sainsbury’s possess almost 100 diversity champion in the organisation in
order to support the diversity in the organisational context. The organisation put emphasis on
the inclusion of diverse culture in the organisational workplace in order to improve the
performance. As opined by Patrick and Kumar, (2012, p.13), this allows the organisation to
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offer diverse service to the customers. Sainsbury’s also takes initiatives to provide job
opportunity to every people of the society. This scheme allows the organization recruit
25,000 employees in 2015-16. The number is still growing and the organisation is intending
to increase the number up to 30,000 within 2020. The organisation also introduces certain
campaign including Embrace the Difference in order to include such diversity within the
organisational context. They have considered certain helps and budget for the employees
regarding such inclusion.
Managers and authorities also take part in order to develop the diverse work culture within
the organisation. They apply certain strategies to present the commitment of the employees
towards the inclusion. As suggested by Barak, (2016, p.47), these strategies includes wearing
badges, participating in scenario based exercises and others. Celebrating different occasion
also is an important approach of Sainsbury regarding the development of diverse culture
within the organisation. Hence, the organisation promoted certain topics such as International
Women’s Day, Passover through international channels of communication and Chinese New
Year. Annual report of the organisation has suggested that they have recruited 25,700
employees through this scheme, which suggests the approach of the organisation towards the
diverse workforce.
The organisation is also committed to offer jobs for the people of the community. They have
stood to support such people who find it difficult to get job. The organisation is aiming to
increase the diversity within the organisational workforce including the managerial posts and
others. They have adopted initiatives to balance the number of employees in the perspectives
of gender. This also helps the organisation to present the regional ethnicity. Sainsbury’s has
generated programme in order to mentor the female employees of the organisation. The
organisation has introduced such program in 2015 to enhance the number of the female
employees and they have successfully recruited 2000 employees.
As the organisation is adopting certain approaches towards the diverse culture in the
workforce of the company, they have introduced 41 females in 2016-17 as store managers.
The organisation also takes initiatives regarding the policy of the company. Female
employees required certain organisational policies, boards, and groups of authorities of
Sainsbury’s have determined certain policies of the organisation regarding maternity policy.
They also create groups to manage the diversity issue, as gender diversity within the
organisation requires specific planning to manage.
Diversity in organisational workforce is also related with difference of race, belief and
religion of the employees. The organisation is entertaining certain referencing group in order
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to manage certain challenges regarding these diversities. Sainsbury’s also possess certain
policies regarding the diversity in workforces in different perspectives. Hence, the
organisation also develops certain policies and environment regarding the disable employees
of the organisation. The approach of the organisation regarding this diversity is also evaluated
through the achievement of Disability Smart award. As stated by Mackelprang and Salsgiver
(2016, p.69), this presents the approaches of the organisation towards the diverse workforce
within the organisational context.
Evaluation of Sainsbury’s approach towards Human Resource
Management in the context of competitive advantage of the organisation
Competitive advantages of Sainsbury’s:
Supplier’s power of bargaining:
Competitions among the suppliers:
Availability of large numbers of suppliers neutralizes the force in the favour of Sainsbury’s.
Thus, the suppliers of have less bargaining power and this does not influence the
organisational performance of Sainsbury’s.
Supplies have less impact on cost:
As the inputs have minimum influence on the cost, bargaining power of the suppliers
eventually goes low. It is another weak force for this organisation.
Customer’s bargaining power:
Low price sensitivity of the buyers:
As the buyers are not much responsive towards the price of the product, hence this does not
affect the performance of Sainsbury’s. Customers are ready to pay more for quality product.
This is considered as weak force in the context of Sainsbury’s.
Huge numbers of customers:
As the number of customers is high regarding the retail market of UK, hence the customers
are not tends to possess advantage regarding bargaining. This helps Sainsbury’s regarding
their competitive advantages.
Threats from substitutes:
Performance of substitutes:
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Sainsbury has put importance regarding their service and products in order to satisfy the
customers. Hence, this allows the organisation to mitigate threats from substitutes, as
customers are less favourable to switch if the service or product meets the level of demand.
Limitation of substitutes:
Limited numbers of substitutes helps the organisation to mitigate certain threats regarding the
number of substitutes. Hence, this is a weak force for Sainsbury’s.
Intensity of rivalry:
Limited number of competitors:
There are limited numbers of competitors regarding the supermarket chain of UK. This
includes Tesco, Asda and Morrison’s. Hence, this is a weak force for the organisation.
Large size of the industry:
As the size of the retail industry is large in the context of UK and there are limited rivals,
hence Sainsbury consider this force as weak one.
Threats from new entrants:
High barriers:
Firms face strong barriers while taking entry in the supermarket of UK. Hence, this helps the
organisation regarding this threat. This force has been considered as weak force for the
organisation.
According to Karltorp and Sandén, (2012, p.79), Porter’s five-force analysis allows
determining the competitive advantages of the organisation. Organisational approach towards
the development of human resource helps Sainsbury has to manage the performance of the
organisation. Management of diverse workforce and development of skills of employees
helps to provide quality service to the customers. Based on that the organisation is able to
meet the demands of the customers or mitigate the threats from the rivals.
SWOT analysis of Sainsbury’s:
Strengths Weaknesses
Attractive presence in the supermarket
chain of UK
High price of products
Neck-break competition
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Strength of Human Resource
Appropriate marketing
Large numbers of outlets
Opportunities Threats
The organisation could enter into new
markets
with partnerships and joint ventures
Application of modern technologies
Growing economies of Asia or Africa offers
new markets
Raising globalization is increasing competition
in retail industry
Changing demands of the customers
Sainsbury’s is performing their business in the retail industry if UK for a long period and this
creates the customer base of the organisation, which is a major strength of the organisation.
Successful management of Human Resource is responsible for the successful performance of
the organisation through this long period. Development of skill of the employees regarding
the application of modern technologies helps the organisation to perform efficiently in the
retail market of UK.
PESTLE of Sainsbury’s:
Political Political instability of UK
Economic Economic fluctuation because of Brexit
Socio-economic Trends of market
Buying nature of customer
Technological Application of modern technology such as RFID
Legal Sale of Goods Act
Regulations to protect consumer from unfair trading
Food information regulation
Environment Global warming
Resource management
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Brexit is a major issue regarding the political as well as financial factors of UK. This change
the scenario in the context of business practices of the organisation. Financial fluctuation also
influenced by changing rates of inflation and changing status of global economy. This put a
major impact on the purchasing power of the customers. In the context of UK, Sainsbury’s is
follows the market trend as well as buying nature of the customers in order to continue the
organisational performance in profitable way.
In order to manage the organisational performance, application of modern technologies is
important for an organisation. Sainsbury’s also applies modern technologies to train their
employees and manage organisational performance and operations. As the organisation sales
goods at retail market of UK, hence they are subject to certain legal reforms such as Sale of
Goods Act and Food information regulation (food.gov.uk 2017). Changing environment and
global warming is also important factors that influence the organisational performance. As
stated by Podsiadlowski et al. (2013, p.167), managing diverse culture in workforce and
human resources allows the organisation to meet the demands and perform according to the
organisational requirements.
Conclusion
This study was intending to evaluate the organisational approach of Sainsbury’s regarding the
human resource management and diversity policy of the organisation in the context of
competitive advantages of the organisation. This study has presented that the organisation has
possessed positive approaches regarding the organisational policies of human resource
management. It also presents the approach of Sainsbury’s in the context of diverse workforce
in the organisation. This has major influence regarding the competitive advantages of the
organisation. The study also presents the evaluation of external as well as internal factors of
the organisation that influence the competitive advantages of the organisation. Based on that
analysis the study presents the organisational approach towards Human Resource
Management and Diversity management in the workplace of Sainsbury’s.
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Reference List
Barak, M.E.M., (2016). Managing diversity: Toward a globally inclusive workplace. UK:
Sage Publications.
food.gov.uk (2017), Food Information Regulation Available At:
https://www.food.gov.uk/enforcement/regulation/fir Accessed On: 25th Nov 2017
Harvey, C.P. and Allard, M., (2015). Understanding and managing diversity: Readings,
cases, and exercises. UK: Pearson.
Karltorp, K. and Sandén, B.A., (2012). Explaining regime destabilisation in the pulp and
paper industry. Environmental Innovation and Societal Transitions, 2, pp.66-81.
Knowles, M.S., Holton III, E.F. and Swanson, R.A., (2014). The adult learner: The definitive
classic in adult education and human resource development. UK: Routledge.
Mackelprang, R.W. and Salsgiver, R., (2016). Disability: A diversity model approach in
human service practice. UK: Oxford University Press.
Patrick, H.A. and Kumar, V.R., (2012). Managing workplace diversity: Issues and
challenges. Sage Open, 2(2), p. 1-15
Podsiadlowski, A., Gröschke, D., Kogler, M., Springer, C. and Van Der Zee, K., (2013).
Managing a culturally diverse workforce: Diversity perspectives in
organizations. International Journal of Intercultural Relations, 37(2), pp.159-175.
sainsburys.co.uk (2017), About Us Available At:
http://www.about.sainsburys.co.uk/about-us/our-vision Accessed On: 25th Nov 2017
sainsburys.co.uk (2017), Annual Strategic Report of Sainsbury’s Available At:
http://www.about.sainsburys.co.uk/~/media/Files/S/Sainsburys/pdf-downloads/sainsburys-ar-
2017-strategic-report Accessed On: 25th Nov 2017
sainsburys.co.uk (2017), Our values make us different Available At:
http://www.about.sainsburys.co.uk/~/media/Files/S/Sainsburys/pdf-downloads/sainsburys-ar-
2017-values Accessed On: 25th Nov 2017
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