HRM Trends vs Business Strategy: Workforce Planning at Asda Retailer

This report examines the HRM trends and their impact on business, using Asda as a case study. It highlights current HR practices like workforce planning, technology-driven recruitment, and training. The report identifies retention as a key challenge for Asda, exacerbated by pandemic-related layoffs, leading to decreased employee loyalty and increased hiring costs. The analysis delves into workforce planning, covering supply and demand analysis, gap analysis, and solution analysis, suggesting the use of strategic maps, 9-box grids, HR dashboards, and compensation analysis. It also explores the Human Capital Theory and Dynamic Capabilities Theory to improve workforce management. Ethical considerations in recruitment and selection are addressed, emphasizing transparency and fairness. Recommendations include promoting work-life balance, leadership development, and adapting to changing environments to improve employee retention and gain a competitive advantage. Desklib offers similar solved assignments for students.

HRM Trends
vs
Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Workforce planning.....................................................................................................................4
Workforce Planning Theories:.....................................................................................................6
Ethical Consideration for recruitment and selection process:......................................................6
Recommendation.........................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
The aim of assessment is to show the HRM trends followed in organizations and how it
impact the businesses. Asda is a UK based retailer services provider. It has 145000 employees
with net sales of £22,899.2million(Asda Group Limited publishes annual Statutory Accounts,
2019). It has headquartered in Leeds. The vision of company is to be a retailer that performs
better than expectation of customers regarding product pricing. The report covers the current
HRM trends present in market. The problems business face and how to resolve them. Workforce
planning, recruitment and selection policy of company with suggestion that can be made to
sustain in market.
MAIN BODY
The current HR trend Asda follow is workforce planning, finding ways how to recruit
and select appropriate candidate. After selection employees are given training and development
by using modules related to policies and practices that performed in organization. Currently,
Asda is using technology to recruit applicants and conducting video sessions for giving detail
about job role and policies to be practised to survive in organization. Asda train current
employees using technology to upgrade their skills. The company performs team building
activities online by connecting team members on one group and giving task accordingly. Asda
also track the work done by employees by using online tools like virtual attendance sheets and
virtual performance.
Problem
Currently business is facing retention problem. Retention means stopping employees
from leaving the organization. Due to pandemic, countries have announced lock-down which
have led Asda to lay-off some workers. This has led to less retention for Asda. This also reduced
the employee loyalty as they now have the fear of being lay off in the future. And employees are
loosing motivation to accomplish organization goal.
Impacts
This increases the hiring cost of company for new employee as they have to spend on
recruitment process by making a new job description. They have to spend on new recruited once
for on boarding process. Training and development process will again be a expense. This breaks
the current teams and organization have the fear that competitor will take the old employee. If so

company's information can be leaked. To stop this Asda should motivate employees by giving
non monetary compensation in form of recognition or flexibility in working hours. This will
encourage them to work harder as old times.
Workforce planning
Workforce planning is the process use to analysis current workforce and prepare the
strategies to meet future staffing needs. HRM is required to ensure an appropriate workforce mix
is available to accomplish organization objective. Asda conducts an assessment to find the
content and composition of workforce and determine what strategies to be made to meet future
needs (Ayandibu and Kaseeram, 2020).
Issues:
 Composition and content of required workforce to strategically positioning organization
to deal future and objective of Asda.
 The gaps between existing and future organization related to special skills that is required
in the future.
 Up-gradation of recruiting process and training modules to fill the gap.
 Sources that are needed to deal the gap whether it is available inside or business have to
outsource.
Steps of workforce planning process
Supply Analysis:
Business use this analysis to find out current availability of employees, skills present in
company. Asda use this analysis to find out future needs of employees ad skills required to meet
business objective. The model also analysis the attrition rate of organization. The attrition can be
in form of retirements, transfers or promotions.
Demand Analysis:
Business uses this analysis to find out the future workforce composition. This analysis is
considered on the basis of business issues related to new product line, competitors factors,
expansion or demolition of marketplaces with geographical boundaries. The analysis will show
the necessary steps to be taken to meet business goal, Skill and knowledge required to meet

future need, will the Asda be able to attract a prospective employees and what to do for retention
and attraction of employees.
Gap Analysis:
Next step organization has to do is to compare the demand and supply analysis to find out
the gap between the workforce mix of present and future needs. Using this analysis planner
should identify the skills or talents required in future to meet the objective of Asda.
Solution Analysis:
HRM has to forecast the strategies required to fulfil these gaps. By finding the
approaches required to meet the future demands in form of retention, recruitment, construction to
meet workforce or outsourcing.
Workforce planning will help HR by giving a sharpened eye for identifying future needs
and risk of shortages. Helps in making recruitment strategies based on real time-frames and cost.
The tools HR can use for long term purpose:
Strategic Map:
The map focuses on how workforce planning activities are aligned with organization
strategies. It shows the starting point of plan and help to determine where the organization wants
to go in next 4 to 5 years.
9-Box grid:
9 box grid is a matrix which shows different combination of employees performance and
its potential to do work. It starts from low performance and low potential and ends to high
performance and high potential. This tool easily assess talent and how to manage it.
HR Dash-boarding:
HR use dashboard to find out information of employees performance by using payroll
systems, tracking systems and HR systems. Based on data metrics is calculated to find the
current status and creation of strategies to meet future.
Compensation & Benefit Analysis:
HR uses performance based pay technique to find employees belonging to overpaid or
underpaid categories according to their performance. This information will help Asda to
determine which employees are to be retained.

Workforce Planning Theories:
Workforce planning helps to find the appropriate candidate and manage enough staff who
have right skills, values and experience to provide high quality care and achieve objective in the
future. The problem of company is to find the right candidate with right skills. Thus, the
management of company is striving hard to grab the best employees to workplace. They provide
them with flexibilities in working hour. But not able to stop them to leave the jobs. They are high
stress of work which creates conflicts among employees which lead to less attraction of
applicants towards company. To solve this problem HRM has to do workforce planning by
keeping in mind 2 theories:
Human Capital Theory:
This theory states that human capital is a key determinant of success of any business. It is
the combination of attributes, habit, knowledge and creativity in doing performance for
contribution in economic value. It states that company should give training to employees to
upgrade their skills and knowledge. So that they can perform their task more efficiently, and they
will feel an important part of organization. This will employees from leaving the organization so
frequently and will attract new people to join as well. The company can include the employees
for decision-making process and encouraging them to present creative ideas.
Dynamic Capabilities theory:
It is the theory of getting competitive advantage to sustain the changing environment. It
can be defined as the inherent capabilities of organization to optimally adapt the resources. The
theory focuses on company's ability to build and integrate the internal and external competencies
to match and face the changing market environment. This creates a goal in mind of company to
increase the recruiting of high talent workers and retaining the experienced ones. This will help
in gaining the competitive advantage by gaining quality and talented people which will result in
sustaining in market.
Ethical Consideration for recruitment and selection process:
Recruitment is the process of finding the job and analysing the skills and talent require
for performing the job and attracting candidates to apply for job. Selection is the process of
selecting the right candidate with right skills from pool of students by screening, taking
assessments and interviews.

HR has to make the following consideration for ethical practise of recruitment and
selection process in organization:
Finding talent availability:
Sometime firms do post a job ad for position that does not really exist to find out talent
available in market for a new location or just to foster the idea that company is growing and
stable. This will create bad reputation of company in minds of applicants, employees and clients.
Asda can find unemployment rates, education level or cost of living information by talking to
local business group or agencies. Asda can also collect information by reading local publications.
Transparent of roles and responsibilities:
When a position is difficult to fill companies hire overqualified or underqualified person
by promising more autonomy or authority to position. This can lead to unhappy hiring and cost
to business when the hire person quickly leaves. To avoid, Asda should be completely
transparent with applicant about roles and responsibility they have to perform in job (Pande
Deshpande, 2020.).
Referral Practices
To fill a job companies use referral practices in filling the post faster with less cost.
Sometimes a high level employee make refer a candidate is hired irrespective of merit. People do
this for some interest or favour. This can lead to conflicts between employees. Asda should
consider proper procedure even for referral hiring making equality in company.
Recruiting using social media
Sometimes businesses create fake profile to gain access to applicant profiles to know
private information about them and their friends. This private information is not required in job
and information should not be use against them. To collect information Asda should take proper
interview to ensure proper match and treat all applicants equally and collect information that are
related to job only (Koch, and et.al., 2018).

Recommendation
It is recommended that organization should help employees to maintain work-life
balance. If employees are busy at their work and not be able to maintain work-life balance, they
more likely to leave job. Like in airlines industry, due to pandemic there are not enough pilots so
the remaining pilots have to do all work which will make them tired, and won't be able to do
other activities. Gradually work pressure will make employees leave the job. Company has to
give training and upgrading their skills on how to work more in emergency conditions. This will
make them to do more work in same time. (Kinyili, 2019).
It is recommended that company should provide leaders to employees as source of
training. As leaders are those who inspire employees to work while bosses will order employees
to work irrespective of their low morale. Leaders will give training and show the correct path
towards success. They will inspire employees to gain new knowledge and brush their skills. This
will help employees to feel the part of organization which stop them from leaving the company.
This will maintain the human capital in organization and more candidates will attract toward
company. (Tian, and et.al., 2020).
It is recommended that Asda should prepare employees according to changing
environment. Many a time employee leave because they do not feel much connected to
organization. It will increase the conflicts between employees which increase distraction and lose
of morale. Employer need to increase morale of employees to accomplish organization objective.
HR should provide learning opportunities and select workers who can sustain the rapid changing
environment. This will make employees to feel more connected as company is spending on their
ups-killing. Manager should provide career advancement opportunity by providing promotions
or some professional development. Asda should provide a feedback to employees containing the
recognition for good work and improvement for not up to the mark ones. This will help
employees to work on their dynamic capabilities and company will have a competitive advantage
in the market. (Bhat and Bharel, 2018).
CONCLUSION
It can be concluded that there are many HR trends available in market. Asda a retailing
company faces the problem of retention. Due to pandemic companies has moved to technology
for conducting HR practices. To meet future requirement organisation has to perform workforce

planning. The planning contains 4 steps to deal the gap between present and future. Many
theories are made to be utilized by businesses. Asda have to consider ethical practices to
recruiting candidate by dealing all applicants fairly and equally and using proper channels for
collecting information. To stop employees from leaving Asda should make employee
engagement, providing leaders and not bosses and give career growth opportunities.

REFERENCES
Books and journals
Ayandibu, A.O. and Kaseeram, I., 2020. The Future of Workforce Planning. In Human Capital
Formation for the Fourth Industrial Revolution (pp. 127-156). IGI Global.
Bhat, I.A. and Bharel, S.K., 2018. Driving performance and retention through employee
engagement. ZENITH International Journal of Multidisciplinary Research. 8(1). pp.10-
20.
Henao, C.A., Muñoz, J.C. and Ferrer, J.C., 2019. Multiskilled workforce management by
utilizing closed chains under uncertain demand: A retail industry case. Computers &
Industrial Engineering. 127. pp.74-88.
Horne, M.S., Williamson Jr, T.S. and Herman, A., 2018. The contingent workforce: Business and
legal strategies. Law Journal Press.
Kinyili, J.M., 2019. Work-life balance practices and staff retention: A case of public health
institution in Machakos County, Kenya. International Journal of Advanced Research in
Management and Social Sciences. 8(1). pp.1-19.
Koch, T., and et.al., 2018. The impact of social media on recruitment: Are you LinkedIn?. SA
Journal of Human Resource Management. 16(1). pp.1-14.
Lewis, L.F. and Wescott, H.D., 2017. Multi-generational workforce: Four generations united in
lean. Journal of Business Studies Quarterly. 8(3). p.1.
Pande, M.A. and Deshpande, A., 2020. Recruitment and Staff Retention as a key role of Human
Resource Management. Solid State Technology. 63(5). pp.6282-6286.
Tian, H., and et.al., 2020. The impact of transformational leadership on employee retention:
mediation and moderation through organizational citizenship behavior and
communication. Frontiers in Psychology. 11. p.314.
Online references
Asda Group Limited publishes annual Statutory Accounts, 2019. [Online]. Available through
<https://corporate.asda.com/newsroom/2020/12/11/asda-group-limited-publishes-annual-
statutory-accounts>
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