Strategic Approaches of HR in Sainsbury

STRATEGIC
MANAGEMENT HUMAN
RESOURCES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1...............................................................................................................................................3
Task 2...............................................................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management is primarily the process of planning, monitoring, assessment as
well as analysis of various activities which are necessary for meeting the organizational goals ans
well as objectives. Sainsbury is basically the renowned retail organization being established in
1869 by John James Sainsbury and headquartered in London, U.K. It currently operates in more
than 20 countries and have its presence in large markets. The main aim of this report is to
understand the strategic approaches of HR in Sainsbury and to study the importance of employee
relation.
This report gives a overview of linkage between business strategy as well as HR strategy,
vertical alignment as well as horizontal integration, models of SHRM, HR practices for
performance management, recommendation, theories in employment relation, actor's role in
employment relation, changing nature of employment relation and employee participation in
improving employee relations.
MAIN BODY
Task 1
Overview of linkage between business strategy as well as HR strategy
Business strategy is basically the mixture of various decisions which are being taken as
well as the actions which are performed by the organizations for accomplishing their business
goals and securing competitive position. Human resource strategy on the other is primarily the
creation of long-term plan by organist ion for managing the human capital and align it with the
various business activities. Business strategy and human resource strategy has a defined relation
and thus both in cooperation imposes a profound impact on Sainsbury. Developing the human
capital is highly essential for the longevity of business and thus forms an important part of
business strategy of Sainsbury (Noe and et.al.,2017). The major function that comprises the HR
strategy of the company is recruiting the right kind of staff and thus building the great workforce.
When organization have the right employees who have capability to achieve organizational goals
then it leads to the success of organization which is paramount part in business strategy. Thus,
HR strategy forms the vital part of Sainsbury which helps to achieve business strategy. On the
other hand, HR strategies also have a great impact on business strategy. When the HR
department of Sainsbury have talented and skilled workforce then they endeavors to create a
well-structured and defined business strategy which will help organization to attain competitive

advantage. Hence, these both the strategies are linked to each other and provide an effective
strategic view to organization. Along with this, the HR strategy consist of providing an effective
training to the employees to incorporate effective skills and knowledge in the in handling
customers and the primary objective of business strategy is to attract the customers. Thus, when
HR will provide effective training to employees then they will be able to attract and serve
customers better and this will fulfill business strategy.
Vertical alignment as well as horizontal integration
Horizontal integration as well as vertical alignment are predominately the two strategies
which are used by organizations within similar industry and production process. Talking of the
horizontal integration, it occurs when organization takes over the another company which
operates at similar level in value chain within industry. On the other hand, vertical integration is
when organizations acquires business operations at similar production level. Sainsbury has
shown both horizontal integration as well as vertical alignment. The most common example of
horizontal integration is Sainsbury acquisition to Asda which is another retail organization and
thus. Sainsbury took over this organization in the year 2005 and the main aim here was to
increase the size and diversify their services across the world along with reducing competition.
Apart from this, in the year 2008 Sainsbury acquired Booker group which produces food items
and various dairy items (Brewster, 2017). Although, this does is not exactly similar to the
operations of Sainsbury but operates in the same industry. The main reason behind this vertical
integration of Sainsbury was to strengthen the supply chain and capturing the downstream profit.
Besides this, this vertical integration helped Sainsbury to access different distribution channel.
The outcome of the horizontal integration is the increased revenue ratio together in comparison
to operating isolated. Apart from this, the major outcome of vertical alignment having new and
different distribution channel which are spread across the world and reduced production cost.
Models of SHRM