Analysis of HRM Challenges and Recommendations for Coles Recruitment

This report provides an in-depth analysis of the human resource management challenges encountered by Coles, a major Australian retail company. The report identifies key issues in recruitment and selection, such as competition from other firms, inefficient labor force, high expectations from applicants, low benefits, communication gaps, and demographic issues. It also discusses the impact of the organization's image, compensation and remuneration, and the supply of labor. The report offers several recommendations and strategies to address these challenges, including performance management, reward management, cross-cultural training, and employer branding. The goal is to help Coles improve its recruitment processes, enhance employee satisfaction, and maintain its competitive edge in the market.

Running Head: Human Resource Management
Human Resource Management

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Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................2
Key challenges in recruitment of labor force in Coles.................................................................................2
Recommendations and strategies to solve the challenges faced by Coles..................................................6
Conclusion...................................................................................................................................................8
Reference....................................................................................................................................................9

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Executive Summary
The report analyses the key human resource recruitment and selection challenges faced by the
company Coles. Recruitment and selection of human resource is a crucial task in the business
management, inefficient human resource can degrade the growth of the company. Thus, the
report analyses the issue and measures and strategies that shall be taken by the management to
secure its position in the market.

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Introduction
The report analyses the importance of the Human Resource Management. The company Coles
has been selected to evaluate the key aspects of the case study. Further the report also analyses
the key challenges relating to recruitment and selection faced by the organization. The report
also suggests ways of the company with the aid of which the company can overcome a strong
position in the market.
Coles group limited is Australian public company which deals in providing consumer and retail
products and services. The company is the second largest retail chain store holding its functions
in Australia. Coles was initially acquired by Wesfarmers in the year 2007 with the process of
transfer of ownership. The company is headquartered in Hawthorn East, Victoria Australia.
Because of having retail chain stores Coles has a vast personnel of 165,000 employees working
with them. With the scope of expansion the company is expanding its base to London stock
exchange, New Zealand stock exchange as well. Further the report discusses the human resource
issues and measures taken to solve the problem (Armstrong, & Taylor, 2014).
Key challenges in recruitment of labor force in Coles
It is the responsibility of the organization to provide all thee adequate facilities to the new
recruits appearing in the workplace. But Coles being a diversified company faces many
recruitment challenges in their organizational culture which are discussed below:
Effective employment schemes offered by competitors prevailing in the market:
although it is seen that Coles is one of the biggest company prevailing in Australia but
along with that the company face a huge degree of competition in the market. Looking

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the industry conditions of Australian market, the retail business fits the environmental
condition of the country, due to which many companies like Woolworths, Aldi etc. exits
in the market. Thus, there is a tough competition between these firms also the new
candidates’ gets an opportunity to opt for the company which is giving them maximum
benefits (Bardoel, et. al., 2014).
Inefficiency of labor force: it is one of the biggest issues in such big companies that the
firm is unable to hire efficient workforce which can actually help the company to
complete their future objectives. Due to which the efficiency of the company to perform
tasks decreases.
High expectation and low benefits: the applicants coming to the company perceive it to
be the best and produce high expectation from the working of the company. But the
opposite happens as the Coles management is unable to fulfill the expectations of the new
joiners. Thus, it is considered as a significant challenge that Coles is unable to show up to
the expectation of the new candidates (Peters, et. al., 2014).
Applicants more, joiners few: this can be regarded as an issue which is attracted by all
companies now days. At the time of recruitment process, many are been selected by the
company but very few of them actually joins the company. The offer letter is being issues
by the side of company but no approval is being received on other end (Sheehan, 2014).
Payment and wages: satisfaction of employees in terms of their salaries is the most
important aspect which shall be overlooked by the manager. Apart from that it is very
important for the company to satisfy the employees from the salary which they provide so
that better degree of efficiency is received to them. But the company faces this as they are

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unable to satisfy the requirements of their workers of the organization. Thus, due to this
effect the brand image of Coles is negative reflected (Collings, 2014).
Communication gap: communication is very important part of a good organizational
process. If there is lack of communication then the employees will feel shy to discuss
their issues with the higher authority due to which dissatisfaction will occur in the part of
employees and management as well. Talking about the company Coles, the employees
faces the problem of communication gap in the organizational culture, due to which their
efficiency is reduced. This process also demotivates the employees and leading them to
leave the job (Stone, et. al., 2015).
Image of the Organization: image of the organization the prior aspect by looking at
which different job seekers applies in Coles for job. And the image of the organization
depends upon the response of employee which they provide to the external environment.
Both the terms are interrelated, thus if the brand image is not good then the new
candidates will not come in the organization and existing candidates will also leave the
job.
Compensation and remuneration: this process also affects the operations of the
business and its activities in a bad manner. According to the past results of Coles, the fact
came into existence is that the company do not believe in providing high remuneration to
the employees of the organization (Zoogah, 2011). thus, resulting to which the company
faces issues in the process of recruitment and selection due to such image of the
company prospective candidates do not come for the interview in the company which is a
loss for them.

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Supply of labor: supply of labor is one of the most important key challenges in the
management of human resource activities. The company focuses on optimizing the best
labor force from the international market in their organization. But, many times Coles are
unable to align the job description and person description with the candidates coming for
the interview, due to which the human resource which is actually required by the
organization is, does not come to them (Renwick, Redman, & Maguire, 2013).
Demographic issue: there are many aspects in the demographics of an organization such
as education, sex, district and culture etc. The concern which gains the attention of Coles
is the problem of poverty and health care. The demographic issues related to company are
aging workforce, diversity in cultures etc. Although diversity in the organizational culture
shall be looked as a positive aspect but in case of Coles this aspect is degrading the
growth of the organization. The company is unable to manage people with such diversity
and fulfill their expectations as well. Thus due to this process, the recruitment and
selection process becomes a difficult task for the management to perform.
The generation also plays an important role is every organization. The company is unable
to make effect use of the new generation by providing them better opportunities. The new
generation is more innovative an energetic, so they can help the company reach to the
heights where they want, but due to inefficient managerial skill the company is unable to
make full use of the new human resources available with them (Collings, 2014).
Cross-cultural training: training of cross-culture practices is essential for company who
has recruits from different countries. This process helps the expatriate to mix up with the
organizational culture and feel comfortable. But, the company lacks in this case, as they
do not conduct training session for such employees.

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Thus, the following personnel challenges are faced in the management of the company which
detracts the growth of Coles in global market.
Recommendations and strategies to solve the challenges faced by Coles
Looking at various researches, it shall be taken into accounts that the firm should control various
recruitment issues and challenges so as to gain sustainability and long term benefits for the
organization. Thus, the following approaches shall be implemented in the management of Coles
to address and solve the problems faced by Coles in the managing the human resources of the
organization.
Mostly, the company Coles is using two HRM strategies to redress and the problems faced by
the company. These strategies are performance management and reward management. Reward
management refers to the policy of the organization provide incentives and various financial as
well as non-financial benefits to the employees so that their interest is aligned with the working
of the organization, whereas performance management refers to the policy of the organization to
reward the employees benefits over and above their basic pay according to their performance of
the previous period (Cook, 2016).
Talking about the demographic issue of the organization, the problem signifies the inefficiency
of the organization to fully make use of the man power available to them. Thus, in order to gain
the competitive edge in the target market the company shall adequately take initiatives to make
use of the new generation of the society. They shall communicate to them and seek for their
advices. They shall initiate a system in which the lower management shall assist the top
management regarding the new and innovative change which the company shall adopt to gain
efficiency (Furnham, 2017).

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As it is known that Coles operates its business on large scale, due to which many candidates
aspire to work in the company. Thus, because of having diversity in human resource the
management of the company is unable to manage the huge personnel together due to which
problem. Thus, to resolve the issue the company shall adopt cross cultural training programs and
ask their existing employees to support and communicate with them so that a health environment
is maintained in the organization (Kang, Shen, & Benson, 2017).
If the company uses the performance management techniques then the employee would
automatically motivate themselves to work better, to earn more. This will solve the problem of
compensation and remuneration, apart from that it will also satisfy the employee in financial
terms. Better performance of employee will result in achievement of assumed goal by the
organization, resulting to which the company will also grow in the global business world. Due to
this purpose, the brand image of the organization will also change in a positive manner, as the
employee will get satisfied then they will circulate the same in the external environment due to
which the goodwill of the company will increase in the eyes of prospective candidates
(Kaufman, 2015).
Lastly the company Coles should use the employer branding strategy so as to reduce various
problems faced by the company regarding recruitment and selection process. The brand refers to
the identity of the company which gives them an opportunity to grow and expand themselves in
the target market. With the aid of employer branding strategy, the company easily appoints
potential and talented people in their company. The strategy focuses on both internal and
external environment of the business. It initiates to change the brand positively and initiate
adequate communication strategies. Along with this, it also focuses of employee recognition and
brand advocacy. The strategy focuses on all people connected with the working of the business.

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Thus the company shall use this strategy so that all the personnel problems are resolved from
Coles (Hoque, 2013).
Conclusion
Thus, in the limelight of above mentioned events the fact that shall be noticed is that, although
Coles is efficiently working in the target market still there are some human resource issues faced
by the company. Thus to resolve the same management tem of Coles shall take corrective
strategies actions so that Coles regains it position in the market.

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