Impact of HRM on Organizational Performance and Productivity in Online Retail Industry in UK - Sainsbury Case Study

This research proposal evaluates the impact of HRM on organizational performance and productivity in the online retail industry in the UK, with a case study of Sainsbury. It includes a literature review, methodology, timeline, and research questions.

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STUDENT NAME:
STUDENT ID:
TOPIC: EVALUATING THE IMPACT OF HRM ON ORGANIZATIONAL
PERFORMANCE AND PRODUCTIVITY IN THE ONLINE RETAIL INDUSTRY IN
THE UK. (CASE STUDY-SAINSBURY)
DATE: 8-08-2019

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Contents
Chapter 1 Introduction................................................................................................................................3
1.0 Introduction.......................................................................................................................................3
1.1 Background of the study....................................................................................................................3
1.2 Rationale............................................................................................................................................4
1.3 Research aim.....................................................................................................................................4
1.4 Research objectives...........................................................................................................................4
1.5 Research questions............................................................................................................................5
1.6 Research hypothesis..........................................................................................................................5
1.7 Significance of the study....................................................................................................................5
1.8 Structure of the dissertation..............................................................................................................5
1.9 Summary............................................................................................................................................6
Chapter 2 Literature review.........................................................................................................................6
Human resource management................................................................................................................7
Organizational performance....................................................................................................................9
The link between HRM and organizational performance........................................................................9
Productivity...........................................................................................................................................11
Chapter 3 Methodology............................................................................................................................11
3.0 Research design...............................................................................................................................12
3.1 Data collection.................................................................................................................................13
Chapter 4 Timeline....................................................................................................................................14
4.0 Gantt chart.......................................................................................................................................14
4.1 Conclusion.......................................................................................................................................15
Research questions................................................................................................................................16
References.................................................................................................................................................16

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Chapter 1 Introduction
1.0 Introduction
Organizational performance and productivity are based on human resources activities by an
organization. The research majorly addresses the impact of human resource management on
productivity and performance in Sainsbury. The major element in the retail sector is providing
effective service to the customers that help in building strong relation. It is important to focus on
several aspects such as the effects of HRM on organizational performance and increase in
productivity. In the retail sector, the organization tends to ensure effective services by human
resource management and organizational culture. Due to the high performance of work practices
by the employees, the organizational outcome is effective (Caliskan 2010). Thereby HRM
largely contributes towards organizational performance and productivity. HRM practices tend to
achieve higher productivity in the retail sector in the UK. The study aims to review the impact of
HRM practices on organizational performance and productivity.
1.1 Background of the study
High-performance work activities tend to ensure organizational performance and increased
output. Several approaches deliver the best practice in the organization. employment security,
self-managed teams, recruitment, selection, compensation, etc motivate employees to focus on
organizational and individual performance. This will help to gain a major aspect of working on
several standards and coherent bundles of HRM for achieving performance factor. HRM
practices tend to influence organizational outcomes while working on the best approaches that fit
in the organization. Multiple practices ensure organizational performance such as teamwork,
performance management, and recruitment and selection. These practices tend to make sure with
a greater significance of interest and consider several determinants that influence organizational
performance (Werner 2014). HR practices that promote positive perceptions are largely
addressed by the leader and managers to ensure effective work standards that best suit the
organizational development activities.
1.2 Rationale
The retail sector in the UK is a large sector that is diverse and dynamic for the economy. The
biggest employment is generally observed in the retail sectors which constitute of several large
retail companies. The data is been collected for Sainsbury that is the retail company in the UK

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with the second largest market share. A significant role is played by the organization to consider
Human resource management so that is impacts organizational growth and development. The
operational control and the level of business strategy that an organization considers is effective in
terms of productivity and performance. There is a performance management system that a retail
organization introduced to focus on the quality of work by human resource in the organization.
Organizational objectives are satisfied while considering the performance management system
that helps to achieve organizational goal and increase the profit of the organization. The HR
strategies are identified and generally consists of multiple and quality activities that satisfy the
organizational objective which highly promote the positive perception of business (Miah 2012).
Well trained employees satisfy the competitive position and become leader and managers to
focus on smart practices and improve organizational performance. Business objectives are
thereby achieved with intelligent employees and well-trained employees. Poor work performance
leads to increased cost and lower productivity. Thereby, the HR issues need to be resolved by the
organization if there are any in an organization.
1.3 Research aim
The research aims to determine the impact of HR activities on performance factor and
productivity of Sainsbury in the UK retail sector.
1.4 Research objectives
The research determines the impact of HRM on organizational performance of Sainsbury. The
research objectives are
To evaluate the impact of HRM on organizational performance of Sainsbury
To evaluate the impact of HRM practices on the productivity of Sainsbury
To identify the HRM practices that are success factors of Sainsbury
To recommend strategies that ensure the organizational performance of Sainsbury with increased
productivity and performance
These are several objectives that tend to ensure the HR activities that effect performance and
outuput.

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1.5 Research questions
The research questions tend to ensure that the major focus of the research is to investigate the
research question and provide detailed information about significant concepts. The research
question include
What are the HR practices that Sainsbury adopt in the business?
Does HRM practice impact organizational performance?
How do HRM practices lead to increased productivity?
1.6 Research hypothesis
The research hypothesis address the following
H0: An impact of HRM practices on organizational performance and productivity on Sainsbury
H1: No impact of HRM practices on organizational performance and productivity on Sainsbury
1.7 Significance of the study
The study is important as it ensures HR activities that can be best implemented by the retail
sectors to focus on an increase in productivity and organizational performance. The research
drastically focuses on Sainsbury organization to ensure and encourage HRM practices that best
support the organizational development activities. The human resource practices include
recruitment, training, selection, development, employee performance, etc largely ensure that the
organization performance tends to reveal the major situation of the company in terms of
organizational culture and productivity. Motivation, compensation system and incentives are the
major aspects that determine individual performance and organizational performance. If an
individual is satisfied, the organizational goals are satisfied as the best activities are ensured by
employees if they are happy and satisfied with the job.
1.8 Structure of the dissertation
The research structure includes following topics such as, introduction, literature review,
methodology, and conclusion. The research is followed in this structure while providing
information about the detailed research undertaken to evaluate the results. Sainsbury is a retail
outlet in the UK market which is analyzed with the HR practices that impacts organizational
performance and productivity.

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1.9 Summary
The research consists of HRM practices that impact the organizational performance and
productivity of Sainsbury. A detailed literature review is presented and the literature review
presents the gap of the research to be fulfilled in the research while undertaking several methods
to know the results.
Chapter 2 Literature review
Human resource management practices tend to effect performance factor. There is a greater view
in terms of addressing the impact of HR practices on productivity. It is important to determine
and consider SHRM as a major objective to focus on strategic activities performed by human
resource for organizational goal attainment. There are HR practices that impact organizational
performance. Extensive recruitment and selection, training and development, formal information,
job design, assessment, and grievance handling are the HRM practices that ensure organizational
performance. These activities need to be recognized and rewarded while meeting the merit of
linkage between HRM and valued firm-level productivity (Devi & Shaik 2012). The policies and
procedures that are undertaken consists of work practices and identifies the changing aspect of
the business. There were limited HRM practices in ancient time, thereby the organization
performance used to be lower while compared to the organizations that have several
opportunities for its employees. This tends to ensure that the organizational activity that is
undertaken reveals the best practices at Tesco. The research will be undertaken and employees
largely provide reviews about HRM practices that best handled the organizational performance.
This is a universalistic model that represents the SHR practices and undertakes the analysis of
the business in terms of improved HRM practices for organizational effectiveness and increased
productivity. SHRM practices tend to ensure career opportunities, systematic training,
employment security and job description that enhances the profit-sharing attitude. This reveals
the major concentration of the business while undertaking relevant measures for improved
business performance. There are a variety of practices that an organization practices while
achieving the specific goal and considering SHRM practices that ensure organizational
performance. SHRM leads to an improved position of the business when employees have an
opportunity to focus on measures that improve best practices in the organization (Werner 2014).
There is the most appropriate measure that tends to ensure organizational effectiveness as the

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financial indicators at the time of implementing SHRM may hinder in business success and
development. Thereby, it is important to consider the financial indicator of the business while
recognizing SHRM practices in the organization. There are different indicators such as
operational performance that include machine efficiency, employee performance, and customer
alignment.
Human resource management
According to Kenny (2019), there is a broad range of performance measures that an organization
needs to select for improved business ideas and practices. Employee motivation is the best
indicator that ensures the growth of the business. There is an opportunity that an organization
ensures while providing motivation to employees and improving the skills of the employees to
perform better in the business and generate higher revenues for the business. A link between
SHRM and organizational performance which needs to be ensured while gathering important
data regarding SHRM and organizational performance. Human resource management practices
deal with personnel management concepts as it is concerned with several activities in a single
department. Human capital is the factor that is adaptable and flexible in the business while
determining competitive goals in the competitive environment. The current structured systems
and background of HRM are towards managing the workforce and getting the work done at the
right time. The organization focuses towards achieving objectives that are listed. Recruitment
and selection, motivation, compensation, training, and development are the other functions that
are well managed in the human resource department. The activities comprise of fulfilling the
goals of an organization and focusing on the right place, the right purpose and the right job for
the right person. Considering all the important functions of the business, it is thereby effective to
focus on organizational performance. Providing the best opportunity for employees will
eventually lead to organizational performance and productivity.
Organization performance thereby largely depends on HR practices that an organization is
involved. Thereby there are systematic activities that ensure motivation, performance evaluation,
recruitment, training, industrial relation, manpower planning, and remuneration. As suggested by
Rodriguez & Ventura (2013), these are the activities that are taken by the organization while
viewing the current performance and desired organizational performance. Managing these
activities is the goal of the business which comprises of several management functions such as

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acquisition, maintenance, development, and motivation. These are the key steps that an
organization focuses to achieve the organization performance.
As exclaimed by Meagher (2015), Management of human resource is connected in a process of
managing and controlling human resource in an organization. This helps in enhancing the
organizational performance and considering efficiency in an organization. A smoother way is
attained with business development activities for the successful management of the business. An
organization acquires human resource as per the need and requirement to attain organizational
performance. Recruitment and selection include several varieties of job option in which the
HRM recruits the best and merit candidates that have similar job profile. This ensures that the
specifications needed in the business are fulfilled while recruiting the best candidate that fulfills
the organizational objectives as described in the business. There is an employment contract that
is provided which seems to be an important aspect in HRM. To safeguard the position and to
balance in the organizational activities, the employment contract is very useful. Certain laws and
regulations are addressed in the employment contract and the guidelines are mentioned with
duties and responsibilities. An employment agreement ensures the detail that an employee needs
to outline while fulfilling business activities.
As per Tata & Prasad (2014), compensation and benefits are HRM practice that is crucial in the
business as it tends to provide attractive incentives and benefits to the business. There are
compensation policies and competitive benefits that an organization provides to its employees.
With good performance, the compensation benefits increases which benefit the organization and
employee. Performance management is the standard set that recognizes the work that is done in
the organization and its effectiveness that is achieved ensuring and improving the business
performance. Involvement and participation of employees will tend to bring innovative ideas of
employees and effective work design. Creative, innovation and synchronized activities are
enhanced in the business while using proactive measures that an organization needs as a
challenge in creating and designing new products and services.
Organizational performance
Human resource management is linked to organizational performance. HRM activities tend to
select the employees that perform the best in the organization. As explained by Miah (2012),
organizational performance is linked with HR practices as the workforce considers effective

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strategies to ensure organizational development. This is majorly monitored and is implemented
in the organization while adapting change in the business and performing the best activities that
help in organizational performance. Thereby HRM practices play an important role while
addressing and evaluating the business activities and following the best approach for
organizational development. An ethical path is thereby followed while achieving organizational
performance. Employees in an organization understand organizational objectives and several
perspectives that need to be achieved in the given timeframe. A vital role is played in the
organization while designing improved performance strategies that will increase organizational
performance and individual performance. Performance management provides feedback on
employee and organizational performance to eliminate several workplace challenges and HRM
approaches.
The link between HRM and organizational performance
According to Hassan (2016), a link is addressed between HR and performance factor in an
organization. Several factors are involved in the success of the organization. Mainly high
performance is the basis of organization success which is largely influenced by internal and
external factors. From a survey, it is addressed that HRM practices play an important role in
organizational performance. According to Pratoom (2010), Around 70% of employee
performance leads to the organizational performance, which means that organizations such as
Nike, Infosys, and IBM have addressed a connection between HRM practices and organizational
development. With specialized training programs provided to employees, organizations tend to
perform on a higher level than expected. An impact of HRM considers several variables that lead
to financial and business outcomes. Several theories address the HRM connection with an
organizational performance which is largely based on three main propositions. Motivation,
commitment and employee engagement are the factors that impact organizational performance.
Financial performance is improved while driving the business with HRM practices. Quality,
productivity and customer satisfaction are achieved with organizational performance. These are
specifically the benefits that an organization derives while working as an intermediate in the
business. The financial performance is largely affected due to HRM practices. As such, there is a
direct impact between organizational performance and HRM. People performance is the basis of
HRM practices as it is well-crafted in an organization with its powerful means of addressing the
organizational vision and fulfilling organizational goals.

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As suggested by Kaufman (2011), Attracting candidates, retaining a candidate is an HR practice
that impacts business performance. The activity helps in achieving operational needs and
performing in the best manner that can deliver superior performance at the workplace.
Productivity increases and thereby the culture acceptance increases when there are satisfactory
results in an organization. All this is due to the improved recruitment process that the
organization has adopted for change in the business tactics. Talent management is another such
HR practice area that ensures motivated talent to meet the future goals of an organization. In this
way, the organizational objective is achieved. Managing knowledge in an organization focuses
on individual learning while providing the best opportunity for the employee to share the
information in a very systematic manner. The flow of knowledge increases with learning
organization while retaining employees. High-performance management is an HR practice area
in which a manager tends to develop a culture that encourages employees while considers an
increase in productivity and customer service. There is a discretionary behavior that is largely
connected with business performance and individual choice. Increasing engagement and
motivation is an HR practice that helps to encourage individuals to achieve a specific goal.
According to Saeed, Lodhi & Iqbal (2013), Psychological contract tends to develop a balanced
psychological contract that provides continuous harmony between individuals and organization.
The relationship between employee, employer, and organization is well maintained when there is
a psychological contract that ensures organizational performance. Reward management tends to
develop job engagement and motivates people in considering a greater contribution to an
organization. With the help of job engagement, a responsibility is attached that an employee
focuses to achieve rewards from an organization while fulfilling organizational objectives. The
working environment of an organization is critically the important aspect of the HR practice area
in which the core values, work-life, leadership, secure employment, and diversity are included.
This is an important and critical aspect that impacts the business and develops big ideas and
values in the organization. An organization then becomes a good place to work on as integrated
values tend to improve organizational performance.
Productivity
With HR practices, high performance is achieved. Higher the performance, higher is the
productivity. Organizations consider significant levels of improvement while it addresses the

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control strategy that is important to focus on achieving the goals of the organization. Productivity
is the organizational outcome that is expected while performing HR practices. As per Malaolu &
Ogbuabor (2013), Firms that have a commitment strategy tend to ensure quality and productivity
with a control strategy. Productivity is thereby largely influenced by financial performance and
organizational structure. With a higher level performance and value, productivity increases in a
higher stream. HR practices contribute 18% productivity with significant improvement in the
development and acquisition of organizational goals. Responsibility and job design are the core
HR practices that are significant. HPWS high-performance work systems help to build strong
and positive effects on productivity. With greater use of workforce practices, higher-level
employee commitment is addressed with quality services. There are productive discretionary
efforts that are addressed in the organization while HR practices tend to ensure positive
organizational performance and productivity. In a survey, HR practices are addressed to ensure a
positive relationship between employee and organization while achieving increased productivity.
Behavior with employers is improved and productivity increases while fulfilling business goals.
With higher performance HR practices, organizational productivity and organizational
performance are achieved. Creativity and innovation are the basis of HR practices with core
employee retention and other practices that ensure higher performance rate.
According to Tan & Nasurdin (2010), there is a positive relationship that is observed between
organizational performance and employee development. It is important to ensure that
organizational output increases with the learning organizations and the learning opportunities for
the organization. For better employee performance, the analysis is largely based activities that
help to increase the motivation of employees. Employee participation, employee engagement and
employee voluntary are the concepts that help to ensure employee development programs. The
overall impact is towards the performance of an organization which matters in organization
behavior. There are relevant categories of HR activities that are planned by the organization forth
the implementation process. As such there is a positive relationship that is obtained while
researching the basic literature and considering a methodology to the research. There is a
positive influence in ensuring the variables such as compensation management, employee
development programs and organizational citizenship. Organizational effectiveness is achieved
while addressing the distinct feature of HR in the business. Policies and regulations are the new
trends that focus with substantial impact in the business. Organizational capability increases with

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effective results. HRM demonstrates the management of activities which helps to justify the
business growth and development. The financial indicators improve with business growth and
thereby competitive advantage is felt. High commitment of workforce ensures productivity and
quality of work that controls the business strategy. There is significant variation in productivity
and HRM activities that affects the organization success criteria.
Chapter 3 Methodology
Descriptive research will be conducted to address the impact of HR that effects performance and
productivity. The research will be based on circulating 100 questionnaires to the employees of
Sainsbury while finding the real image of the company. The main basic questions that will be
included consists of HR that impact the organizational performance and productivity of the
organization. The research is based on primary and secondary data collection sources. The data
will thereby be carried out with stratified random sampling method (Creswell 2013). The
primary data that will be used is the distribution of questionnaires in the form of feedback. An
interview will also be conducted for HR and HRM managers that will help to address the HRM
practices that are very well used to increase organizational performance and productivity. The
secondary data collection method will be through the articles that are published or not published.
This even includes magazines, internet, journals, publications and website of the company. There
is a standard form of an interview that will be conducted among 25 HR managers and HR in the
organization. Apart from the interview, 100 respondents are selected to fill the questionnaire that
is prepared by the organization. There is a higher response rate that is expected by the
organization as the questionnaires are very well focused on closed-ended questions that keenly
introduce the company affairs and productivity rates.
3.0 Research design
The data that will be collected from the research will be distributed in two groups such as an
independent and dependent variable. The independent variables include motivational approaches,
career management system, result-oriented appraisal, awards and rewards, and organizational
culture. These are the independent variables that are relevant in the study as these are HR
practices that are the key parameters to address organizational performance and productivity.
The dependent variable is organizational performance and productivity.

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Regression analysis will be performed to focus on the research study and ensure HR effects on
organizational performance. The connection between the dependent variables and the
independent variable will be largely illustrated to achieve a correlation between the variables.
The four HR practices will influence the performance factor and productivity at Sainsbury, UK.
This shows that there will be a formalized career plan that will be prepared to achieve the best
performance that is highly based on promotion and motivating factors. There is no such
correlation that is observed which seems to have a higher degree of correlation and manifold
effect. The patter of results will be illustrated in a table form with the results of regression
analysis that increases performance rate.
The goal of the research is to present the findings that fills the gap of the research while
providing the best HR practices that an organization adopts to increase organizational
performance and productivity. The HR practices will ensure performance outcome and analyze
the study in terms of statistical results in a significantly positive manner. This will suggest that
the HRM practices that are adopted in the organization will clearly illustrate the competency of
HR managers and HR in the organization. HR managers have sufficient role in considering the
positive aspects of career management, recruitment, selection, training, development, motivation,
compensation, etc. These are the HR practices that will be analyzed in the business while
achieving a higher contribution towards the business while improving the implementation of HR
practices will help to increase productivity and organizational performance. There is always a
reason for achieving major importance in the workplace while considering the aspects of the
business that address change in the business. The research will ensure the benefits of
implementing HRM practices in the business and consider a major response rate towards
organizational performance and productivity. HR practices will be important as it ensures the
organizational goal (Miah 2012). The organizational productivity and organizational
performance increase with shared business expectations and feedback provided by the
employees, HR and HR manager. The employee survey that will be undertaken will provide an
awareness of business strategy that very well links between the work goals and job performance.
The result tends to be the basis of knowledge between HR practices and organizational
performance.

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The research will focus on HR practices that are used in the organization and positively affect the
organization. There are challenging areas that the research will cover in terms of strategic
linkage between HR practices and performance indicators in the organization. organizational
objectives are addressed in this case while providing the benefits of HR practices such as
recruitment, selection, training, compensation, motivation, career management system, etc. The
questionnaire is prepared while taking in view the qualitative research technique.
3.1 Data collection
Primary and secondary data collection will help to improve the basis of problem-solving
technique in which both the primary data that while distributing questionnaire and interview
method. There will be a common understanding of comparing the primary and secondary data
and then realizing the results of the research. The research addresses identifiable HR practices
that ensure the responsibility of employees to work and achieve organizational goals. A
motivated workforce is efficient and will provide an effective result (Pearce & Robinson 2012).
Employees who are capable and have skills to focus on organizational demands tend to improve
efficiency and consider maximizing the performance of the business to focus on learning
organization requirement. HRM practices will be discussed after analyzing the results and
representing the core competence of the business. There will be distinctive HR practices that
represent the sustainability and survival of an individual while gaining organizational
performance and productivity.
Chapter 4 Timeline
To carry on the research, it is important that a Gantt chart is to be prepared that includes several
activities to be performed in a given timeframe. The activities are largely discussed and are
carried out while focusing on the research. This will be like a visual view of the activities and
performance of the activities in the research. It is considered a useful chart in which the work
schedule is properly addressed in a given format to start the activity, the start date and the end
date of a particular activity is already provided in the timeline. Whereas the Gantt chart includes
start data, project task, resources, finish date, total duration and feedback of the project prepared.
While working on a research proposal, a timeline is prepared in which the activities of the
research such as preparing an introduction, research objectives, research questions, significance
of research, preparing structure of research, methodology used, applying the methodology,

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preparing questionnaires, taking interviews, analyzing the results and discussing the research
topic are the main activities that need to be included in given timeline. HR activities will ensure
performance of the company, thereby it is important that an organization should consider each
perspective of HR into the Gantt chart to address its benefits on performance of the organization
and output. The timeline addresses vital steps to be taken for considering the research on the
basis of each activities that need to be performed on a specific date and finish the task on the date
mentioned. This will help to save time and money.
4.0 Gantt chart
Activities Start date End date Duration
Conducting meeting 1-09-2019 3-09-2019 3
Introducing the
research proposal to
managers
4-09-2019 6-09-2019 3
Preparing research
objectives, research
questions, research
aims, etc.
7-09-2019 10-09-2019 4
Analyzing the
requirement of
techniques to be
introduced in the
research
11-09-2019 13-09-2019 3
Preparing and sending
questionnaire and
undertaking
interviews
14-09-2019 20-09-2019 7
Analyzing the
information with the
help of primary and
secondary data
21-09-2019 26-09-2019 6

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collection
Evaluating and
presenting the results
27-09-2019 30-09-2019 4
The Gantt chart represents several activities to be undertaken at Sainsbury to determine the
effects of HR activities on company performance and output.
4.1 Conclusion
The research proposal prepared is to be undertaken at Sainsbury, a retail outlet in the UK. The
major prospects that are included in the research proposal are the impact of HRM practices that
address the change in the organizational performance and consider a higher level productivity
rate. A timeline is prepared to work according to the schedule of the activities to be performed on
regular basis as per the timeline.
Research questions
Which HRM practices are implemented in the organization?
Does the HRM practices impact the organizational performance?
Does the HRM practice impact the productivity?
Why is important to motivate employees and provide employees the best compensation benefits?
Which are the core competence HR practices in the organization?

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