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The Importance of HR Department in Asda's Business Strategy

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RESOURCE
MANAGEMENT

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ACTIVITY 1: HRM........................................................................................................................1
1.1...........................................................................................................................................1
1.2...........................................................................................................................................2
2.1...........................................................................................................................................2
2.2...........................................................................................................................................3
2.3...........................................................................................................................................3
2.4...........................................................................................................................................4
1.3...........................................................................................................................................4
ACTIVITY 2: PHYSICAL RESOURCE MANAGEMENT..........................................................5
3.1...........................................................................................................................................5
3.2 & 3.3.................................................................................................................................6
ACTIVITY 3: MARKETING..........................................................................................................6
4.1...........................................................................................................................................6
4.2...........................................................................................................................................7
4.3...........................................................................................................................................7
TASK 4: INFORMATION SYSTEM MANAGEMENT (ISM)....................................................7
5.1 & 5.2.................................................................................................................................7
5.3...........................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
In order to get success in this competitive world, management of firms requires
maintaining a strong relationship with their human resources. In this context, it is essential for
business entities to focus on strategic human resource management while making HR policies
and performing practices related to employees. Strategic Human Resource Management (SHRM)
includes several policies, processes and methods that a company can use while making strategy
for managing and retaining their employees (Wright, Guest and Paauwe, 2015). SHRM helps in
identifying the current and future needs of human resources within organization so that desired
requirements can be fulfilled. In the current report, Asda Store Limited has been chosen which is
a British supermarket retailer chain and its headquarters in West Yorkshire, England. Besides
this, company also offers wide range of products and services such as finance, mobile phone etc.
Here, different activities are involved such as human resource management, physical resource
management, and marketing & information system. However, all these activities assist
organization to maintain effective relationship with workforce and thus develop business strategy
in order to attain organizational goals (Banfield and Kay, 2012).
ACTIVITY 1: HRM
1.1
Main objective undertaken by Asda in relation to maintain effective relationship with
human resources is to attain organizational goals. However, there are wide ranges of competitors
prevailing in the retail market; therefore Asda faces various challenges in respect of running the
operations worldwide. Hence, company aims to retain its skilled and talented employees so that
the best products and services can be delivered to consumers. Business entity also aims to
improve its sales and profitability in relation to overcome competitors. Thus, employees of
business move towards the vision of firm in order to attain desired targets (Gavino, Wayne and
Erdogan, 2012). Moreover, HRM plays a main role in contributing to the achievement of
organizational goals such as improving sales and profitability. Human resource management also
assists business to utilize skilled and talented employees in regard to develop strategic plan for
Asda. Also, it is essential for firm to determine the needs of every employee so that effective
working environment can be provided to them in order to attain satisfaction. Human resource
management effectively contributes in managing human resources so that resources can be
utilized effectively in order to attain organization targets.
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1.2
According to the view of Bamberger, Biron and Meshoulam (2014), HR professionals
and managers are crucial part of business as they helps in organizing people to carry out their
respective activities in an effective manner. In regard to this, it is essential for Asda to view the
human resources as assets and not costs to business. However, at all levels business is required to
develop coordination and collaboration in regard to develop skills and capabilities of employees.
HR team plays a major role in recruiting. Coordinating and hiring employees within firm so that
overall objectives can be attained. HR manager of Asda is required to provide effective training
to its employees so that they are able to provide effective products information and service
delivery to consumers so that satisfaction can be attained (Bamberger, Biron and Meshoulam,
2014). In other aspect, it can be said that HRM team assists management of the company to treat
individuals as essential resources of business so that employees can feel the sense of importance.
This, in turn helps Asda to fulfill its organizational goals and objectives. HRM includes various
processes such as recruitment, selection, training and development so that skilled and
experienced staff members can be retained and managed for long term.
2.1
Recruitment and retention are the best strategies that need to be adopted by the HR
professionals of business. With the help of recruitment, organization is required to select skilled
candidates within business and thus attain desired targets. While, undertaking retention tactics by
the HR managers helps firm to employ effectual techniques such as providing effective working
environment, rewards and awards so that employees can be satisfied and retained for long term.
Recruitment strategies include selection process for skilled candidates among the pool of
applicants so that best individual can be hired for the job (Dries, 2013). On the other hand,
retention strategies involve training and orientation program, simulation games, career oriented
seminars, workshops on customer satisfaction etc, so that best workers can be retained within
firm.
Furthermore, recruitment strategy is the process to attract skillful individuals with the
help of selection process and thus business analyzes their skills and talents through undergoing
different mental tests and hires them within organization. However, sometimes such strategy
seems to be ineffective as HR professional hire unskilled candidates who are not able to achieve
desired targets. Therefore, it is essential for HR manager to pay proper attention at the time of
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hiring people who are skilled and efficient. While, Asda also adopts employee engagement tactic
as it helps management to engage workers within firm and hold them from switching over to
other competitors (Wilton, 2013). Business introduces different stress releasing exercises,
handling workload pressure and health & safety measures for employees to satisfy their needs.
2.2
As per the view of Hong and et.al (2013), it is essential for businesses to adopt effective
techniques in order to improve the performance of employees so that individual as well as
organizational goals can be attained. In regard to enhance performance of employees, business
provides proper training and development programs to employees and helps them to remain loyal
to the enterprise. There are different employee development activities that help in improving the
skills and capabilities of individual so that workerā€™s contribution towards growth and
development of firm can be enhanced (Hong and et.al., 2013). Following are the different
techniques that are used by Asda in order to improve employee performance are as follows-
ļ‚· Coaching- Within such techniques, manager and employee creates an effective
performance plan that is focused upon one or two performance areas so that knowledge
can be enhanced effectively. However, Asda adopts this method in order to provide
proper coaching to workers so that they can perform better and plan to reach towards
organizational goals (Collings, 2014).
ļ‚· Incentives- In order to improve performance of employees, management of Asda
provides financial rewards, bonuses and awards so that it builds employee confidence.
For instance, rewards and recognition are the best techniques that help in developing
employee performance so that they are highly motivated in order to provide best services
to consumers (Ugheoke, Isa and Noor, 2015).
ļ‚· Job rotation- Further, job rotation helps employees to teach them regarding performing
different job tasks over a period of time. It helps individual in developing their
performance through rotating within the organization and carrying out diversified tasks
unrelated to his/her actual work (Kim, 2012).
2.3
The above assessed techniques of employee development help in engaging individuals
towards attaining the organizational goals. Therefore, it is essential for Asda to adopt effective
employee engagement methods so that workers are satisfied by contributing their efforts to
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achieve customer satisfaction. It is the method that helps employees to feel passionate regarding
their job profile and put efforts into their work so that business success can be attained. In regard
to this, Asda also plans to organize training and development program for their employees so that
their skills can be improved in order to attain desired targets (Shaw, Park and Kim, 2013).
Performance appraisal system also helps in contributing towards employee engagement
technique as it helps management to evaluate individual's performance and review them so that
they can improve it in order to attain business goals. Through implementing job rotation
technique, it also assists business in engaging employees with each other so that they can obtain
knowledge of every department and thus perform other job role effectively. Thus, all these
techniques ensure workers engagement and attain business objectives.
2.4
HR department is required to carry out proper analysis by implementing effective
strategies so that business success can be attained. Asda human resource professionals determine
the needs and demands of individual workers within firm so that it can be fulfilled accordingly
and enhance their skills and capabilities so that best results can be attained. However, in order to
achieve business strategy, HR department of Asda encourages individual to improve their
performance so that customer satisfaction can be attained (Marler and Parry, 2015). Moreover,
business also provides effective training and development program to its employees so that HRM
department helps in developing skills and supporting management to attain organizational
strategy. Thus, human resources are the key to achieve business success. Through, applying all
these strategies, management of firm is required to effectively support at the time of achieving
business strategy.
1.3
Human resource planning requirement is crucial as it helps in attaining success within
firm. It can be assessed that Asda undertakes effectual Human Resource Planning (HRP) process
so that it helps in determining the actual requirement of skilled individuals in business. With the
help of such technique, organization is able to attain equilibrium position for human resources.
Following is the human resource planning process for Asda-
ļ‚· Assessing need of workforce- It is essential for HR department of Asda to determine the
needs of human resources and thus analyzes the requirement of skilled workers so that
goals can be attained (Tyson, 2014).
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ļ‚· Demand forecasting- Here, management forecasts the demand of human resources
within business so that required number of skilled candidates can be selected to fulfill the
current situation of human resource requirement (Aswathappa, 2013).
ļ‚· Forecasting supply- In this, human resource department estimates regarding the supply
of workforce within firm so that needs can be fulfilled. It uses different ways such as
internal and external sources of recruitment.
ļ‚· Matching demand and supply- HR manager of Asda determines the demand and supply
of human resources within organization so that equilibrium position can be attained. With
the help of this, firm is able to overcome the condition of employee shortages and over
staffing (Schuler and Jackson, 2013).
ACTIVITY 2: PHYSICAL RESOURCE MANAGEMENT
3.1
Machine, material, building and equipment are the different resources that are required by
the management of Asda to achieve desired objectives. These are as follows-
Objectives Physical
resources
Resource management implications
Asda's main aim is to enhance
customer satisfaction by minimizing
the customers waiting time
(Giannakis and Harker, 2014).
Machine It can be overcome through adopting
innovative techniques such as cash counting
machine, enhancing number of bill counters
etc. so that individual is required to wait for
lesser time after shopping at Asda (Good,
2014).
In such competitive era, business is
required to provide quality products
at cheap prices in order to fulfill the
needs.
Material Asda determines the requirements of
customers by providing them the best quality
of products and services as compared to
rivals so that they can sustain consumers for
long time and enhance the sales and
profitability (Hill, Jones and Schilling, 2014).
It helps in developing values and Equipment Business undertakes innovative tools and
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beliefs of customers through using
proper tools and equipments
(Hornsby, Kuratko and Naffizger,
2015).
equipments so that store cleanliness, portable
chair for disabled customers helps in
attracting people to visit Asda (Caliskan,
2010).
3.2 & 3.3
According to the opinion of Lussier and Hendon (2015), business is required to build its
physical resources such as material, equipment and machine so that set goals can be attained.
However, all these physical resources assist management of firm to maintain crucial relationship
among employees and consumers which helps in attaining desired satisfaction. With the help of
physical resources such as machine, Asda implements innovative technology within firm so that
convenience can be delivered to consumers (Lussier and Hendon, 2015). For instance, cash
counter can be increased or cash counting machine can be fixed that helps in minimizing
customer waiting time so that sales can be enhanced. Also, business is required to follow a
proper physical resource plan in order to maintain the demand and supply of resources so that
competitors can be overcome. Asda is also required to locate its building at convenient place so
that customers can easily reach the store that helps in enhancing the sales and productivity.
ACTIVITY 3: MARKETING
4.1
Asda is required to adopt effectual marketing activities like promotion and targeting so
that set goals can be attained. For example, business aims to execute effectual marketing
campaign in order to raise awareness regarding the products and services delivered by business.
It uses online medium of promotion so that target segment can be attracted in order to reach the
store and purchase products (Mello, 2014). With the help of promotional techniques, business
introduces unique features of its products to customers so that they can be satisfied with the
efficiency of product quality and thus improves sales and profitability of firm in marketplace.
Thus, effective promotional strategy helps Asda to contribute towards attaining organizational
objectives.
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4.2
According to the opinion of Smith (2014), it can be stated that marketing operations
within Asda should be clear, transparent and accountable so that it does not provide inaccurate
information to consumers. However, main aim of marketing operations within business is to
improve the efficiency of firm in market and achieve desired targets. Further, business focuses
upon bringing certain changes within marketing operations and thus includes planning and
budgeting options so that it helps them to enlarge their activities in global marketplace. However,
developing proper marketing operations helps management to improve the efficiency and
productivity as compared to competitors (Smith, 2014).
4.3
It is essential for business to adopt effective market development process so that growth
and development can be attained within firm. However, in order to develop the market of Asda,
business provides new products and services to existing as well as new customers so that sales
can be enhanced. Market development strategy is used by the management of Asda to fulfill its
goals and objectives that are associated with identifying target market and increasing its revenue
as well as profitability. In this strategy, business focuses upon effective communication methods
that can help it to maintain better relationship with customers in order to target existing market
effectively (Storey, 2014). Through doing this business will be able to understand the current
need and demand of market so that better modification can be done accordingly.
TASK 4: INFORMATION SYSTEM MANAGEMENT (ISM)
5.1 & 5.2
ISM is a type of system that helps in managing the data and information within
workplace which can be related to the stakeholders of company. In case of Asda, this system is
used to record information of all the products that are available at store. This information
includes price, features, quality standards, description etc. about the product. Implementing this
system will help business to attain competitive advantage by maintaining the balance between
the demand and supply of products as this system helps in considering inventory management.
ISM technology also helps in recording the information of every department so that it can be
used in future (Walk, Schinnenburg and Handy, 2014). For instance, maintaining records of past
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year sales figures and opening and closing balance of inventory helps management to take proper
action in order to determine the future needs of customers.
5.3
It is essential for Asda to effectively plan the requirement of information system within
enterprise so that competitive advantage can be attained in marketplace. Business uses such
systems to maintain proper record of each and every sales, customer information etc. so that it
can be used at the time of promoting new product. However, implementing ISM in business
helps manager of Asda to monitor the growth and development of firm as compared to other
businesses operating in similar industry so that proper planning can be done to launch new and
innovative products in market and attract consumers towards firm (Lee, 2013).
CONCLUSION
From the above study, it can be articulated that HR department is required to manage the
human resources by providing them proper training and development which helps in enhancing
their skills and knowledge. Further, Asda aims to focus upon implementing the effective physical
resource management such as building, equipment and machines so that customer satisfaction
can be attained.
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REFERENCES
Books and Journals
Aswathappa, K., 2013. Human resource management: Text and cases. Tata McGraw-Hill
Education.
Bamberger, P. A., Biron, M. and Meshoulam, I., 2014. Human resource strategy: Formulation,
implementation, and impact. Routledge.
Banfield, P. and Kay, R., 2012. Introduction to human resource management. Oxford University
Press.
Collings, D. G., 2014. Integrating global mobility and global talent management: Exploring the
challenges and strategic opportunities. Journal of World Business. 49(2). pp.253-261.
Dries, N., 2013. The psychology of talent management: A review and research agenda. Human
Resource Management Review. 23(4). pp.272-285.
Gavino, M. C., Wayne, S. J. and Erdogan, B., 2012. Discretionary and transactional human
resource practices and employee outcomes: The role of perceived organizational support.
Human Resource Management. 51(5). pp.665-686.
Giannakis, D. and Harker, M. J., 2014. Strategic alignment between relationship marketing and
human resource management in financial services organizations. Journal of Strategic
Marketing. 22(5). pp.396-419.
Good, D. C., 2014. Building a Strategic Human Resource Management System: An Experiential
Approach. Developments in Business Simulation and Experiential Learning. pp. 41.
Hill, C., Jones, G. and Schilling, M., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Hong, Y. and et.al., 2013. Missing link in the service profit chain: A meta-analytic review of the
antecedents, consequences, and moderators of service climate. Journal of Applied
Psychology. 98(2). pp.237.
Hornsby, J. S., Kuratko, D. F. and Naffizger, D. W., 2015. Flexible Benefits as a Strategic Tool:
Supporting the Use of Human Resources as a Distinctive Competency. Journal of Small
Business Strategy. 4(2). pp.31-40.
Kim, S., 2012. The impact of human resource management on state government IT employee
turnover intentions. Public Personnel Management. 41(2). pp.257-279.
Lussier, R. N. and Hendon, J. R., 2015. Human Resource Management: Functions, Applications,
and Skill Development. Sage Publications.
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Marler, J. H. and Parry, E., 2015. Human resource management, strategic involvement and e-
HRM technology. The International Journal of Human Resource Management. pp.1-21.
Mello, J., 2014. Strategic human resource management. Cengage Learning.
Schuler, R. S. and Jackson, S. E., 2013. Strategic Human Resource Issues in International.
Strategic Management: A European Approach. pp.243.
Shaw, J. D., Park, T. Y. and Kim, E., 2013. A resourceā€based perspective on human capital
losses, HRM investments, and organizational performance. Strategic Management
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Smith, L. G., 2014. Impact assessment and sustainable resource management. Routledge.
Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.
Tyson, S., 2014. Essentials of human resource management. Routledge.
Ugheoke, S. O., Isa, M. F. M. and Noor, W. M., 2015. Antecedents of Strategic Human
Resource Management Practices on Intangible Firm Performance: Analytical
Investigation of SMEs. Asian Social Science. 11(13). p.33.
Walk, M., Schinnenburg, H. and Handy, F., 2014. Missing in action: Strategic human resource
management in German nonprofits. Voluntas: International Journal of Voluntary and
Nonprofit Organizations. 25(4). pp.991-1021.
Wilton, N., 2013. An introduction to human resource management. Sage.
Wright, P. M., Guest, D. and Paauwe, J., 2015. Off the Mark: Response to Kaufman's Evolution
of Strategic HRM. Human Resource Management. 54(3). pp.409-415.
Online
Caliskan, N. E., 2010. The impact of strategic human resource management on organizational
performance. [PDF]. Available through:
<http://www.dho.edu.tr/sayfalar/02_Akademik/Egitim_Programlari/Deniz_Bilimleri_Ens
titusu/Dergi/066_Esra_Nemli1.pdf>. [Accessed on 24th February, 2016].
Lee, C., 2013. Strategic human resources is key to organizational success. [Online]. Available
through: <http://www.halogensoftware.com/blog/strategic-human-resources-is-key-to-
organizational-success>. [Accessed on 24th February, 2016].
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