Organisational Success: HR's Value and Contribution - Report Analysis

This report delves into the crucial role of Human Resources (HR) and its contribution to organizational success, using Sainsbury's as a case study. It begins by examining the importance of organizational design theory, particularly the hierarchical structure adopted by Sainsbury's, and how it facilitates effective resource management across various business segments. The report then analyzes various approaches and techniques used by organizations to attract, maintain, develop, and reward human resources, including the PRIDE approach and its five key steps. It further researches emerging HR developments, such as training, professional development, and global recruitment trends. The report also evaluates how organizational design must adapt to change management and the relationship between the two, concluding with a synthesis of the complex interplay between organizational design and change. The report emphasizes the critical role of HR in driving business success through effective strategies.

HR:Value and Contribution to
Organisational Success

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 : Importance of organisation design theory for sustainable performance.........................3
P1 Importance of organisational design theory in the Sainsbury's organisational structure. 3
P2 Analysing various approaches and techniques used for attracting, maintaining, developing
and rewarding human resources.............................................................................................5
M1 Organisation design importance ....................................................................................7
M2 Different approach and techniques of motivation ...........................................................7
D1 Improve the level of performance ...................................................................................7
P3 Research on the emerging HR developments...................................................................7
M3 Human resources' development in future ......................................................................10
D2 Knowledge and information in research.........................................................................10
P4 Evaluation of the way organisational design needs to respond and adapt the change
management and the relationship among the two. ..............................................................10
M4 Changes can affect organisation working environment ................................................12
D3 Complex relationship between organisation design and changes .................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
Books and Journals...............................................................................................................14

INTRODUCTION
Beyond the producing, advertising and selling the products or services every organisation
or company has an important role to be performed which refers to the management of the human
resource that is responsible for all the operations of a business. This assessment will describe the
importance and approaches used by the Sainsbury to manage the human resource management
within their organisational. The Sainsbury uses various techniques and tools to create and
develop their human management structure. Furthermore, the study determines the relationship
between the change management and organisational structure.
TASK 1: Importance of organisation design theory for sustainable
performance.
P1 Importance of organisational design theory in the Sainsbury's organisational structure.
The organisational design or structure developed by the Sainsbury is hierarchical. The
Hierarchical theory of organisational design focuses on developing a chain of various levels of
employees and the level above needs to control each level. Each and every level is a
responsibility of the higher level. For example, managers at a senior or top level are controlling
the line managers and those line managers are responsible for the sales employees (Bondarouk
and Ruël, 2013). The Sainsbury has various business segments and diversified products as well
as services. In order to organise and manage the different departments the brand needs to adopt
the hierarchical theory of organisational design which helps them to effectively operate the
various business operation with proper utilisation of the human resources within the
organisation. Due to the effective and smooth flow of the business activities the Sainsbury has
achieved a great success in the UK and the brand is growing rapidly. The Organisation has
various organisational teams to perform different business operations, the strategies used by the
company are introduced to these teams for performing their roles to fulfil that strategy. This
leads to an effective contribution of each and every department in implementation of the
organisational strategy.
Importance of Organisational design in full-fulling organisational strategy
Organisational design refers to the overall structure of a business or firm, it is responsible
for allocation of roles and responsibilities to each and every employee in a company. The design
of a business may assist in effective implementation of its strategies as every employees knows
his or her duties as well as all the departments can perform their functions in better way.

Organizational purpose: Structure is helpful enough to provide guidance to workers and this is
done by laying out official reporting relationships which are governed by workflow of company.
Significance of formal structure: When a company has proper structure, then it becomes
helpful enough for the workers to reduce the rate of confusion. Problems arise when employees
are not sure to whom to communicate.
All these are effective for the companies like Sainsbury to develop strategies so that they
are able to attain their set of goals and objectives in appropriate manner. Each and every
employees have their own set of skills which contribute towards growth of the organization.
When there are appropriate structure developed, then it make the firm to divide their roles and
responsibilities. For example, Sainsbury has different departments that work together to raise
their sales and profitability. More specifically, it includes departments like marketing, human
resource, finance, etc. that work together and employees are able to coordinate efficiently as they
are able to determine their subordinates. Thus, the rate of confusion if reduced. Another example
can be Qbic hotel which does not have a proper structure due to the lack of employee retention,
this affected their performance and profitability negatively.
The various segments within the Sainsbury's organisation structure are as follows -
 Sainsbury's Stores – The brand focus on grabbing each and every opportunity in the
market which can help them to develop and expand. In the years 2011 and 2012, the
Sainsbury launched 19 new supermarket stores, 73 convenience stores, 28 extensions
which added up to 1.4 million sq, ft of space to their organisation.
 Sainsbury's energy – The company introduced Sainsbury's energy in the year 2011 as the
latest new brand within the market. They offered competitive and value propositions with
an effective team of experts, who focuses on making the energy tariffs simple and giving
energy efficiency suggestions to the customers. The Sainsbury also introduced a call
centre for resolving customer queries and providing effective services to them(Ogunyomi
and Bruning,2016)
 Sainsbury's online – The brand also provides online product's delivery to their customer.
The customers are satisfied with their click and pick services. The Sainsbury is rapidly
growing the sales of grocery and non food products due to the popularity among the
customers.

 Sainsbury's Finance – The Sainsbury was the first British market to launch their own
bank. The brand provides various products like credit cards, insurance, loans etc. This
enables the customer to choose Sainsbury for getting benefits and rewards. The brand
provides special discount to their customers while finance and shopping from their
organisation.
Therefore, the organisation hierarchical theory helps the Sainsbury in organising and managing
their business operations as well the human resources effectively and efficiently.
P2 Analysing various approaches and techniques used for attracting, maintaining, developing
and rewarding human resources.
For every organisation it is important to attract, keep and motivate their employees in
order to develop a strong, effective and dedicated workforce within the organisation. The
employees or the human resources is the most essential factor for the achievement of
organisation goals and objectives. The business operations are completely based on the
employees or the workforces of that business. In the modern scenario, it is not at all easy to
attract or keep the employees due to the increase in needs and desires. The employees are not
only attracted by the monetary benefits now days they have many other needs that affect their
employment and organisation behaviour. The Organisations or employers faces many issues and
problems in hiring skilled individuals and managing the existing ones(Ulrich,2014).
The organisations like Sainsbury, identify various strategies and techniques for example
conducting leaders program, developing trainings for the managers and improving the employee
acknowledgement programs. Due to these techniques the companies started attracting skilled
people and significantly retained their most effective employees. Business organisation can
develop an ability to attract, maintain and motivate the human resources by applying the five step
PRIDE approach or process -
P – Provides a positive business environment
R – Recognise, Reward and reinforce the right behaviour
I – Involve and engage
D – Develops skills and potential
E – Evaluate and measure
 Step 1 : Provide a positive business environment – An organisation needs to develop a
positive or healthy work environment in-order to maintain the human resource

management effectively. The employees working within a company gets affected by the
way they are treated by the managers and the seniors within a workplace. The managers
need to be aware of their actions and behaviour with the employees or subordinates. To
maintain as well attract the human resources the business environment of an organisation
must be positive(Kramar and Parry,2014).
 Step 2 : Reward, Recognize and reinforce the right behaviour – As the people are
attracted by the monetary benefits to enter into an organisation, they need some benefits
to stay in the firm. Each and every individual have a basic need to be fulfilled which
helps them to feel proud of their work. The incentive programs and rewards can help the
employees to feel important and valuable within an organisation. Special rewards and
benefits have a positive impact on the employee's behaviour and dedication towards the
work.
 Step 3 : Involve and Engage – In order to make employees feel valuable and important,
an organisation should involve them in the decision making and planning process. The
management or higher authority must interact or communicate with the employees at
different levels to provide ideas and views on a specific situation. This helps the
employees to get committed and show engagement in the business operations and
activities. The employees feel a sense of ownership when they are asked to provide some
ideas or suggestions regarding the business strategies or operations.
 Step 4 : Develop skills and potential – The organisation must conduct various
development programs for the employees in order to improve their skills and abilities.
Every employee has specific skills and knowledge which he needs to improve or
enhance. The training and development programs can help him or her to develop or
improve his own skills which leads to motivation. Every individual wants to enhance his
performance and productivity, if he or she gets proper training and guidance they can
achieve their development goals effectively. This leads to a formation of a strong
workforce(Mohamed and Yeo,2014).
 Step 5 : Evaluate and measure – The last step to develop and improve the human resource
management of an organisation is to regularly evaluate and measure the performance of
the employees. It can be done by conducting employee satisfaction survey, improving the
recruitment process, measuring the cost turnover etc.

Therefore, It is important for each and every organisation to focus on the essential needs of an
employee to attract them, various benefits to keep or maintain them in the organisation and
identify the development needs to enable the growth of the employees.
M1 Organisation design importance
In order to organise and manage the different departments the brand needs to adopt the
hierarchical theory of organisational design which helps them to effectively operate the various
business operation with proper utilisation of the human resources within the organisation(Wang
and et.al, 2017).
M2 Different approach and techniques of motivation
In the modern scenario, it is not at all easy to attract or keep the employees due to the
increase in needs and desires. The employees are not only attracted by the monetary benefits now
days they have many other needs that affect their employment and organisation behaviour.
Examples I think to effectively approach life, sometimes you must start with more of an intrinsic
approach(Alvarez and et.al, 2017).
D1 Improve the level of performance
In this way organisation is help to improve the level of performance and increase the
growth rate in market. Some types of techniques and other theories is help to improve the level
of carrying into action in market(Prati and et.al, 2018).
P3 Research on the emerging HR developments.
In the modern scenario, The business are developing and adopting changes according to
the business environment. The organisations are connecting across geographic as well as cultural
boundaries. The various trends in human resource management are affecting the HR functions
within the various businesses both small and large. The different development or trends in
Human resource management are described below -
 Training and Professional development – The most emerging change or trends in human
resource management is the training and transversal professional development. This
element of Human resource consists various kinds of learning opportunities as well as the
further eduction programs which is provided to the employees within an organisation.
The organisation conducts various conferences, meeting and training programs for the
development of the employees.

 Global Recruitment – Business organisations are now practising global hiring without
focusing only on the local people. The organisations search for talented employees across
the globe. Global recruitment increases the HR functions as they need to enhance their
activities and hiring process. Human resource management of an organisation enables the
people across the globe to work beyond the boundaries of their country(Armstrong,2016).
 Cross border legal agreement – The impact of global recruitment on the human resource
has developed the significance of the cross border legal regulations and agreements.
Organisation in today's world has a power to sell their services and products in various
markets across the globe through online trading. The HR functions have become more
critical as the global trading requires various permits and the employees working
overseas have to follow various laws and regulations imposed by the
government(Stredwick,2013)_.
 Benefits and compensation – The government has developed laws to authorized a specific
number of paid leave and sick days for the employees working in an organisation. This
had a great effect the function of HR as they need to plan and maintain the records of the
employees for creating the monthly pay, The Human resource management needs to get
informed about the employees who will be on a leave. The benefits to the employees is
positively affecting the business environment but is an essential element to be considered
by the Human resource management of an organisation.
Due to these emerging changes and trends the development of Human resources has affected the
Human resource management of the Sainsbury is many ways. There are different parts of the
brand which is covered by the Human resource management. For example – Recruitment,
planning, development and training program, health and safety problems many more. The
Sainsbury identified that the human resource or the people working within their organisation are
playing the most important role in the achievement of their goals and objectives. The Human
resource is responsible for the growth of the company, The productivity, profitability and the
quality as well. Without a strong or effective human resource no organisation can leads to the
goals or objectives. Thus, the company started on focusing on the important factors such as
attracting the right candidates in an effective way. Providing the right benefits to the right
employee in the right way that can help in keeping the most talented employees with themselves.

The Sainsbury also determined the need of development and training program for the employees
to help them in improving their skills and knowledge(Sanders and Yang,2016).
The various changes in human resource development clearly affected the HR management roles
and functions by involving various laws, regulation, employee right, globalisation in the
recruitment process etc. It can be seen in the new human resource strategies of various
organisations such as the Sainsbury. The company developed its technologies and started using it
effectively with the support of effective employees. The change in technology made the
employees task much easy. The firm has also started using the informations and knowledge
gained from the performance assessment to perform the hiring and selection of new employees
with more talent and skills. The Sainsbury has also made a great change in their recruitment
structure, they started hiring talented people across the globe to grow their existence and
popularity in various areas of the different countries. The various trends and development in the
Human resource have completely changed the functions and roles of the HR management within
an organisation.
M3 Human resources' development in future
The Human resource is responsible for the growth of the company, The productivity,
profitability and the quality as well. Without a strong or effective human resource no
organisation can leads to the goals or objectives. Thus, the company started on focusing on the
important factors such as attracting the right candidates in effective way(Querol and et.al, 2018).
D2 Knowledge and information in research
The business are developing and adopting changes according to the business
environment. The organisations are connecting across geographic as well as cultural
boundaries.The government has developed laws to authorized a specific number of paid leave
and sick days for the employees working in an organisation(Barros-Gomes and et.al, 2017).
P4 Evaluation of the way organisational design needs to respond and adapt the change
management and the relationship among the two.
Change management helps in providing a formulation to support the employees as well
as the whole organisation to adapt the various changes within the business environment. There
are many global, technological, economical and political changes that are influencing an
organisation 's structure or design. The Change management is important for each and every
organisation to be adapted. It helps an organisation to make the best and effective use of the

changes in the business environment. Many changes can result in positive way for the business if
are adapted in the right manner but if they are not managed properly, it will create a loss or
negative impact on the organisation's performance(Whittington and et.al,2017) Every
organisation has a specific structure or design that is developed to perform the various business
operations and achieve the organisational objectives. The organisation structure needs to make a
strategic change in three major stages -
 Determining that the ongoing or current strategies are no longer important or suitable for
the present situation of the organisation
 Developing a plan or vision for the future direction of the organisation
 Imposing or implementing the changes and creating new or modified system for the
business operations.
Resisting the change
The managers within an organisational structure or design tries to implement various changes
small as well as big, faces some obstacles within the organisation. They need to motivate the
employees in a company in-order to adapt the changes within a business environment. The
organisational structure needs to be modified and develop in such a way that the changes in the
environment can not affect the organisation in a negatively. The Employees should be informed
regarding the nature of the changes and the way they can improve the business operations of the
organisation.
Relationship between organisation design and change management in the
Transformational change within the Sainsbury.
The Sainsbury in the year 2017, find out various areas of there organisational structure which
needs to be considered and modified in-order to bring growth and development in there business.
These areas were – Great food at reasonable price, Growth and development of non-food
products, Attracting more customers through various channels and mediums, Expansion of the
supermarket space by introducing new stores and development of the organisation. The change
management decided to implement these changes in-order to achieve the desired goals and
objectives this resulted in the modification of the organisational structure or design of the
company. The Sainsbury made a great change in their organisational structure by developing a
plan of introducing 750 headquarters staff as well as recruitment of more than 3000 shop floor
staff to increase the quality of the services and overcome the issue of stock unavailability. The

new structure's objective was to enhance the profit by £2.5bn by the end of the fiscal year. The
organisational structure or design completely acts and react on the strategies of the change
management to adapt the changes that are required for the benefit of the organisation and
business(Amalou and Süß,2014).
Therefore, it is proved that no matter how effective an organisation's structure is it have to adapt
the change management in-order to meet the changes in the business environment. The
Organisation has to respond to the change management in an effective manner to ensure that the
changes do not affect the business in the negative way. As the changes in the management and
the business environment have a direct impact on the organisation structure. The Sainsbury in
order to adapt the change management enhanced the structure of the organisation. The structure
needs to be developed to reach the requirement of the organisation which was to increase the
productivity and number of employees in the organisation. The change management successfully
assisted the organisation to adapt the new structure of the organisation and achieve the desired
goal.
M4 Changes can affect organisation working environment
These areas were – Great food at reasonable price, Growth and development of non-food
products, Attracting more customers through various channels and mediums, Expansion of the
supermarket space by introducing new stores and development of the organisation(Reilly and
et.al, 2017).
D3 Complex relationship between organisation design and changes
In this context Organisation has to respond to the change management in effective
manner to ensure that the occurrence do not affect the business in the negative way. As the
changes in the management and the business environment have a direct impact on the
organisation structure(Shreelatha and et.al, 2018).
CONCLUSION
The above report concluded that the Sainsbury by using the hierarchical theory of organisational
design or structure performs their business operation to achieve the goals and objectives. The
organisation needs to focus on the human resource of the organisation to develop the strong
workforce which is responsible for the smooth flow of organisational activities. The Human
resource is the main area of an organisation which needs to be considered for the effective
growth and development of the business organisation. The study includes the various techniques

and tools to attract, keep and develop the human resource of an organisation to create an
effective workforce. The report also includes research on emerging HR developments . The
Sainsbury needs to focus on the human resource in order to reach new levels of success in its
business, as well as the organisation needs to ensure the various changes in the business
environment.