Research Report: Inequality's Impact on Business Performance at Asda

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This report investigates the impact of equality and inequality on business performance and profitability, focusing on the case of Asda. The introduction provides an overview of equality's importance, company background, research rationale, aims, objectives, and questions. The literature review examines the significance of equality on employee performance, the negative effects of inequality on Asda's profitability, and methods to mitigate these negative impacts. The methodology section outlines the research approach. The report emphasizes the importance of fair treatment, equal opportunities, and a conducive work environment for fostering employee motivation, productivity, and overall business success. It highlights the detrimental effects of inequality, such as reduced employee morale, poor mental health, and unhealthy competition, ultimately impacting Asda's financial performance and brand reputation. The study aims to provide insights into how organizations can overcome the negative impacts of inequality and promote a more equitable and successful business environment.
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Research
Methodologies
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Table of Contents
INTRODUCTION...........................................................................................................................3
Company Overview.....................................................................................................................3
Rational of the Research..............................................................................................................4
Research Aim...............................................................................................................................4
Research Objectives.....................................................................................................................4
Research Questions......................................................................................................................4
LITERATURE REVIEW................................................................................................................5
To determine the importance of equality over the performance of employees...........................5
To identify the negative impact of inequality over the profitability and performance of Asda. .6
To investigate the ways to overcome from the negative impact of inequality on the
profitability and performance of an organisation........................................................................7
METHODOLOGY..........................................................................................................................8
REFERENCES..............................................................................................................................11
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INTRODUCTION
Overview of the Research
Equality plays an important role by recognising the integrating equality and Human Rights
within the governance, decision making structure and policies. Equality is the vital term in any
business that include the growth and effective performance of an organisation with itself. Even
people with disabilities are also have equal rights in the respective society as when there is
inequality it would be difficult for an organisation to complete growth and progress (Kundu and
Mor, 2017). Equality rights focus on the no discrimination against anyone and also consider to
be treated equally in the same way. People in the society tends to have the freedom to associate
with number of people in order to share the knowledge and also undertake the activities that can
have the positive impact on the society. Equality comes with the economic progress of the nation
as when there is no discrimination in the workplace then the nation automatically achieves
growth and success.
In regard of this there are various types of equality that exist within the society and
Organisation is well including political equality which means that every person in the workplace
must have the right to share their views and expressions within the decision-making process of
an organisation as no matter what their level and gender is. Apart from this natural equality leads
to motivate the states in order to eliminate inequality as much as they can as every individual
work hard in order to achieve the natural equality for the betterment of their post and
international reputation (Rostami, Rostami and Kohansal, 2016). Along with this social equality
is difficult to achieve as it comes with the diverse opportunities that exists within the society.
Upholding equality among the work force tends to make sure the effective balanced and
representative workforce as it leads to develop the positive culture at the workplace and also
boost the team work and communication. Equality at the workplace with the large driver of
productivity company growth and employee satisfaction.
Company Overview
Equality is the important factor which should be enjoyed by every individual who work in
the organisation as it is the fair treatment of people regarding their gender race disability
nationality religion and so on. Equality leads to develop opportunities for the organisation in
order to achieve higher success and growth regarding the expansion of the business at the large
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level. Asda is the British Supermarket chain headquartered in in England as company was
founded in 1949. Along with this company was expanded into Southern England during the 1970
and 1980 and also listed on the London Stock Exchange until 1999 when it was acquired by
Walmart.
Asda is the second largest Supermarket chain in United Kingdom. In this context the
complete prominently focus on maintaining equality in the organisation that leads to impact the
performance and productivity of employees and Organisation as well and also impact the success
and growth of company by their expansion in the business operations at the large level.
Rational of the Research
The research which is taken into consideration is based on the impact of inequality over the
profitability and performance of business as it can become barrier regarding the success and
growth of company. It is considered as a wide area of research that plays an important role in
order to explore the knowledge base and Idea of learner within the specified area of work (Zhao
and Wry, 2016). For this the research is conducted regarding the postal interest of researchers as
the studies tends to provide detailed knowledge considered in the selected area of work that
impact the personal and professional growth of the researcher. The study also needs to provide
the suitable way of individuals in order to explore their capabilities and skills to conduct the
research. The study is also beneficial for the people who are interested in the similar and area and
also undertake their future in the specified sector.
Research Aim
Research aim is undertaken as the important factor which is being developed in the
beginning to prominently explain the issue. Thus, the aim is shown in the form of effective
statement that define the issue for the overall work that will be conducted. The main aim of this
research is “to identify the impact of inequality on the business performance and profitability
of an organisation”. A study on Asda.
Research Objectives
To determine the importance of equality over the performance of employees.
To identify the negative impact of inequality over the profitability and performance of
Asda.
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To investigate the ways to overcome from the negative impact of inequality on the
profitability and performance of an organisation.
Research Questions
What is the importance of equality over the performance of employees?
Explain the negative impact of inequality over the profitability and performance of Asda?
Describe the ways to overcome from the negative impact of inequality on the profitability
and performance of an organisation?
LITERATURE REVIEW
To determine the importance of equality over the performance of employees
According to the perspective of Nicholson, (2020), it is very important to treat fairly each
and every employee of the organisation as when the employees feel the same amount of honour
and respect from there higher authorities in the organisation the feel motivated and meaningful in
the organisation which brings the stronger relationship in the workplace and thereby increasing
the performance and the productivity of the employee. It is the duty of the higher authorities of
the organisation to provide their employees equality in the workplace in terms of opportunities,
pay scale and other benefits so that employees feel secure and happy.
Equality and respect are something that every employee should enjoy in an organisation
for its better performance and healthy mind set. It is observed that discrimination among the
employees within an organisation restrict the growth and development of organisation, therefore
it is important to advance the equal opportunities and the financially viable empowerment for the
employees for their moral rights and good performance (Adam Cobb, 2016). If the organisation
fosters higher level of equality in their working environment by creating the conductive
workplace environment the company can create a great advantage in finding and hiring the best
competent talent for their organisation. Equality also plays a major role in the retaining of the
employees.
If the employee is been treated equally and respectfully in an organisation, they employ
automatically values the organisation and it work and thereby, perform the several activities and
the duties with utmost hard work and dedication thereby giving the quality of performance in its
work. Today's modern workplace are more driven towards a collaboration and teamwork
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therefore, it is very important to treat the various team members equally and respect each other’s
work and culture to enhance the collaboration and friendliness among the team work.
Automatically this will improve and enhance their performance of the work and every
individual. In the team every employee possesses the variety of skills and experience which is
helpful for the employees in learning each other’s skills which can only be acquired when there
is a equality among the team members so that they are focused on attaining the goals and
increasing their performance for the organisation (Tørsløv, Wier and Zucman, 2018). It is
obvious that if the employees are treated equally then they will exhibit an outstanding
performance in their work as well as in their behaviour towards others which will help the
business of Asda to grow and prosper with good brand reputation.
Equality among the employees within an organisation is the driving force for the creative
and the thoughtful ideas that will lead to quick decision-making instant problem solving and will
automatically bring the innovation in the organisation. Collectively these factors can increase the
productivity as well as the performance of the employees and the organisation. Equality in terms
of a gender, age, race, sexuality is important for the employees to foster their career progression
and is also important for the better and efficient performance of the employees to attain the
common goals of the organisation successfully without any hindrance (Galaskiewicz, 2016).
There is always the importance of equality over the performance of the employees which is also
important for the success and the growth of the organisation.
To identify the negative impact of inequality over the profitability and performance of Asda
According to the perspective of Rockwell, (2016), inequality is the degree of treating the
individuals differently from the other people at the same place by creating discrimination and not
providing them with their rights. Inequality can be in the form of unequal income, benefits,
education, opportunities etc. In the society every individual is born with the distinct
characteristics, sex, age, interest, social group and caste that make them differentiable from the
others and this definitely does not mean that the individuals should be treated unequally on the
basis of these factors.
Inequality has become the inherent part of the society especially among the organisations
where the employees largely face the inequality in terms of income, opportunities and other
several benefits. Asda is one of the biggest supermarket chains of the UK which has many
incorporated legal equality rights for the employees (Tsui, Enderle and Jiang, 2018). Despite of
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that employees of the Asda sometimes face the issue of inequality by their leaders and team
members. The inequality among the employees creates the negative impact over the profitability
and the performance of the Asda.
Economic inequality is the common issue that is faced by the employees of the Asda that is
the unequal access of income and the wealth. Economics inequality leads to the downfall of the
productivity and the growth of the employees as employee’s morale is being lowered if he is not
provided with the desirable income which can lead to the financial crisis. Therefore, the
inequality reduces the efforts of the employees in the work and downfall in their quality of
service towards the customers that automatically creates a negative impact on the performance
and productivity of the Asda. Inequality in the working environment of the Asda brings the
depression and the mental illness to the employees that cause the poor health, increase in the
stress and other medical health issues.
If the employees are not physically and mentally healthy, they are not able to work with
their full potential and productive capacity which definitely hinder the growth and development
of the Asda. The poor mental health of the employees also causes the conflicts and fights among
the employees and the employers of the Asda that gear the negative impact on the brand image
of the Asda and also declines the quality of performance and productivity of the employees
(Pappalepore and Duignan, 2016).
The veil of ignorance and unequal and unfair treatment by the leaders and the higher
authorities of the Asda can trigger the unhealthy competition among the employees that can
cause harm to personal belongings of the employees as well as to the reputation of the Asda. This
can also make the employees indulge in unfair and unethical activities to reduce the performance
and productivity of the Asda. Therefore, inequality of the behaviour, income and any other
opportunities can create the adverse impact over the performance and the productivity of the
Asda which also lead to major downfall of profitability and prosperity of the organisation.
To investigate the ways to overcome from the negative impact of inequality on the profitability
and performance of an organisation
According to the viewpoint of Hador, (2017), Employment is related with the fundamental
causes of health inequality considered in the unequal distribution of income power and wealth.
Enhancing the quality and quantity of work is useful in order to eliminate the inequality at the
workplace. Along with this there are various ways to overcome from the negative impact of
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inequality over the profitability and performance of an organization (Nawaz, 2019). For this the
manager of Asda need to provide safe space for the underrepresented work by considering the
actions which always speak louder instead of their words. Along with this in order to eliminate
the inequality from the employment the manager of respective company tends to enhance the
ability of work promote Trade union organisations support individuals with social and health
issues in their work and enhance the quality of ability work by considering the worker autonomy.
The overall Quality of work as important as it will help is to be improved in the result and for
this company need to focus on the physical working environment job security demands of job
design the job and also balance the power among their employer and workers.
METHODOLOGY
Research methodology is undertaken as the specific process which is helpful in order to
select identify process and determine the data regarding the specific area. It refers to the
systematic execution of methodologies that leads to support the investigation in an effective
manner as the section of research is based on the several applications in order to provide the
suitable assistance to the researcher in order to carry forward their work in appropriate manner.
Methodologies are effectively applied in order to analyse the research problems and also take
significant decisions to address the research issues. It undertakes the key tools to the specific
research which are discussed as below:
Research Design: It refers to the blueprint of the research in order to provide proper
specification of the research to carry forward the investigation and concerning activities in
suitable manner. Research Design is prominently based on the three aspects including
exploratory descriptive and experimental Research Design (Zhang and Qu, 2016). In regard of
present investigation work descriptive Research Design is being applied by the researchers as it
is effective in order to provide detailed identification over the issues of research and also
applicable for the qualitative research as well.
Philosophies: It is the essential part of research project as it is the obligation of research
in order to select the prominent philosophy in regard of guiding the work in an effective
manner. It depicts the belief undertaking the information regarding the fundamental needs
to analyse collect and use of data (Dougherty and et. al., 2016). This section leads to
encompass the to several types of philosophies including interpretivism and positivism
and in the present research approach interpretivism philosophy has been applied by the
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researcher which is the most effective tool for the qualitative research in order to provide
detailed information by analysing the viewpoint of several authors.
Approaches: It is the effective fundamental factor of research methodology as it leads to
provide the clear direction to the research in order to carry forward work in an effective
manner. This section is classified among the few major approaches considering the
fundamental aspect of research methodology which is effective in order to provide the
clear direction to the researcher and carry forward the work in right direction. This
section is also classified among the two suitable approaches including Inductive and
deductive and the selection of approach is based on the type of Investigation (Aziz and
Mohamad, 2016). By considering the present research inductive research approach has
been applied by the researcher considering the qualitative research in order to provide
detailed information with the help of analysing several theories which are concerned with
the work.
Strategies: Research strategy is defined as the important part of the investigation as it is
useful in order to gather details by considering the prominent research strategy that relies
under the different strategies which are considered by the researcher. It leads to undertake
survey method that act as the suitable strategy in regard of conducting the research and
also achieve better outcomes. This section undertakes the service strategy where is
searching can easily offer the effective detail information regarding the specific period of
time.
Choice: It is defined as the suitable option which is present in front of research in order
to organise the research in qualitative and quantitative manner. In terms of present
investigation work qualitative research method is considered by the researcher as it is
useful in order to achieve suitable results in an appropriate manner and also collect
effective information in the given numbers.
Time Horizon: Time is important factor in the research project as it is useful in order to
complete the whole project in the given period of time (Hoobler and et. al., 2018). In
regard of present research time Horizon is being selected by the researcher undertaking
the cross-sectional approach which is useful in order to lead towards the effective manner
and also support functions as per the needs which are required in the located time.
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Data collection and analysis: By considering the above discussed sources of research which are
classified into primary and secondary sources. For this it is analysed that the survey and
questionnaire rely under the primary Collection of data as it forward the researcher to extract
suitable information from the respondents but the collection of data is limited. Primary sources
also undertake the collection of data from introduce as in this research at format in order to meet
the spotlights and also take all the necessary information for the study. Besides from this the
investigator also collect details from the secondary sources which include the relevant
knowledge regarding the subject that will be collected by the existing publishes papers literature
review and present construction practices (Cull, Demirgüç-Kunt and Morduch, 2018).
Considering the specific study, the investigator is planning to use the primary sources for the
study considering the relevant data collection.
Limitations: The limitation of this study is related with the shortage of time and financial
resources as the researcher is expected to face prominent issues while interviewing the
employees in the chosen organisation. In this context release to create issues in order to give the
time to the students and also turn widely in order to impact the efficiency of research strategy. In
regard of overcoming this limitation the researcher tends to focus on developing the suitable time
frame which is useful in stating the time duration for the particular task of the research strategy.
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REFERENCES
Books and Journals
Adam Cobb, J., 2016. How firms shape income inequality: Stakeholder power, executive
decision making, and the structuring of employment relationships. Academy of
Management Review, 41(2), pp.324-348.
Aziz, M.N. and Mohamad, O.B., 2016. Islamic social business to alleviate poverty and social
inequality. International Journal of Social Economics.
Cull, R., Demirgüç-Kunt, A. and Morduch, J., 2018. The microfinance business model: Enduring
subsidy and modest profit. The World Bank Economic Review, 32(2), pp.221-244.
Dougherty, K.J and et. al., 2016. Looking inside the black box of performance funding for higher
education: Policy instruments, organizational obstacles, and intended and unintended
impacts. RSF: The Russell Sage Foundation Journal of the Social Sciences, 2(1),
pp.147-173.
Galaskiewicz, J., 2016. Social organization of an urban grants economy: A study of business
philanthropy and nonprofit organizations. Elsevier.
Hador, B.B., 2017. Three levels of organizational social capital and their connection to
performance. Journal of Management Development.
Hoobler, J.M and et. al., 2018. The business case for women leaders: Meta-analysis, research
critique, and path forward. Journal of Management, 44(6), pp.2473-2499.
Kundu, S.C. and Mor, A., 2017. Workforce diversity and organizational performance: a study of
IT industry in India. Employee Relations.
Nawaz, T., 2019. Exploring the nexus between human capital, corporate governance and
performance: Evidence from Islamic banks. Journal of Business Ethics, 157(2), pp.567-
587.
Pappalepore, I. and Duignan, M.B., 2016. The London 2012 cultural programme: A
consideration of Olympic impacts and legacies for small creative organisations in east
London. Tourism Management, 54, pp.344-355.
Rostami, S., Rostami, Z. and Kohansal, S., 2016. The effect of corporate governance components
on return on assets and stock return of companies listed in Tehran stock
exchange. Procedia Economics and Finance, 36, pp.137-146.
Tørsløv, T.R., Wier, L.S. and Zucman, G., 2018. The missing profits of nations (No. w24701).
National Bureau of Economic Research.
Tsui, A.S., Enderle, G. and Jiang, K., 2018. Income inequality in the United States: Reflections
on the role of corporations. Academy of Management Review, 43(1), pp.156-168.
Zhang, Y. and Qu, H., 2016. The impact of CEO succession with gender change on firm
performance and successor early departure: Evidence from China’s publicly listed
companies in 1997–2010. Academy of Management Journal, 59(5), pp.1845-1868.
Zhao, E.Y. and Wry, T., 2016. Not all inequality is equal: Deconstructing the societal logic of
patriarchy to understand microfinance lending to women. Academy of management
Journal, 59(6), pp.1994-2020.
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