HRM Report: Business Strategy and Employment Relations at Sainsbury

This report delves into the intricacies of Human Resource Management (HRM) by examining the case of Sainsbury. It begins by elucidating the crucial relationship between business strategy and HR strategy, comparing and contrasting Strategic HRM (SHRM) approaches like 'best fit' and 'best practice'. The report then evaluates performance management techniques, including the 360-degree feedback and ranking methods. Furthermore, it explores the nature of employment relations, detailing the roles of actors involved and the evolving dynamics of these relationships. Recommendations are provided for enhancing performance management systems and fostering employee participation. The report concludes with a summary of the findings, supported by references to relevant literature and online resources.

HUMAN RESOURCE
MANAGEMENT

EXECUTIVE SUMMARY
The report has begun with explanation of relationship between business strategy and
human resource strategy. SHRM approches like best fit and best approaches etc. has been
compared and contrasted in the report. Performance management has evaluated in the report and
approaches like 360 degree approach and ranking method describes. Employment relationships
have also explained in the report where roles of actors and nature explained. Changing nature of
employment relationship has also explained in the present study. Some recommendation related
to performance management and employment relationship has been also presented in the report.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Relationship between business strategy and human resource strategy........................................1
Vertical alignment and horizontal integration.............................................................................1
Compare and contrast Strategic HRM.........................................................................................2
HR practices of Performance Management and Reward.............................................................3
Recommendations for designing of performance management system......................................3
TASK 2............................................................................................................................................4
Nature of employment relations...................................................................................................4
Roles of actors within employment relations...............................................................................4
Changing nature of employment relations...................................................................................4
Recommendations for employee participation and employee voice...........................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Human resource management is an approach of effective management in a business
which helps a business in attainment of competitive advantage and maximizes employees
performance (Albrecht and et.al., 2015). In this report Sainsbury is taken for better
understanding. Sainsbury is the largest supermarket chain of UK. There are many subsidiaries of
Sainsbury like Argos, Home retail group etc. This report will lay emphasis on relationship
between business strategy and HR strategy. Vertical and horizontal alignments will also be
explained in the report. SHRM's compare and contrast will also be discussed. HR practices of
performance management and reward will be discussed along with recommendations.
Employment relation will also be covered in the report. The nature and roles of actors will be
discussed. Also, changing employment relation will also be discussed and recommendations for
increase in employment participation will be covered in the report.
TASK 1
Relationship between business strategy and human resource strategy
Human resource strategy affects decision making of the firm because practices of human
resource is aligned closely with strategies of business as a whole. This also helps in developing
superior outcomes of performance by the companies who execute coordination between policies
of human resource and business strategy. Human resource department by adopting special
strategies helps achievement of organizational goals in efficient manner which is useful for
business because they make their strategies in accordance with accomplishment of goals and
objectives. Human resource strategies motivates workforce of the company for working in order
to attain success in business strategies. Therefore, the relationship between strategies of business
and human resource practice helps in attaining organisation efficient performance and
competitive advantage (Analoui, 2017). Like in Sainsbury, the company manages their business
strategy along with human resource strategy that helps them in attaining competitive advantage
and growth of organization which lead them as largest supermarket chain in UK.
Vertical alignment and horizontal integration
The horizontal integration includes increase in diversify product offerings and size. Also,
this integration is helpful in reduction of competition. This integration is able to produce more
profitability as compared to when they dealt individually. This aid the companies in cutting cost
as they are sharing technologies, research and development, production, marketing, distribution,
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etc. For example, in Sainsbury takeovers Argos have benefited the company in reducing
competition. Also, they able to capture new market of groceries (Bailey, and et.al., 2018).
Vertical alignment is the strategies which are related with organizations vision, mission
and values. In this company acquires other company with same industry. This is done for the
sake of reduction in cost of production and to strengthen chain of supply. Like, Asda and
Sainsbury merger is a vertical alignment which helps Sainsbury in reducing production cost.
Compare and contrast Strategic HRM
Best practice approach includes providing security of employment to employees,
selecting and hiring the right person for the right job and provide training in different skills.
Also, the employees working in such organizations are self managed and manages effective
teams as well in achieving organizational goals. The Sainsbury follow this approach by
providing compensation to their employees according to their performance whereas best fit
focuses on best approach that fits the organization. These approaches are chosen that fall with the
trait's behavior of employees to attain competitive strategy. Like in Sainsbury, competitive
strategy is provider of low cost for which employees behavior is mainly concerned with quality,
lower risk taking activity and high degree of comfort and stability. For this the company
formulated the HR policy with performance appraisal, training and development campaigns and
clear job description allot to employees to avoid ambiguity (Brewster, 2017). Also, Resource
based view (RBV) is an approach which is reliable on resources and they see resources as a key
to superior performance of the firm. These resources provide aid to organizations in sustaining
and gaining competitive advantage. All assets of the business whether it is tangible, intangible or
heterogeneous are selected and used in efficient manner. Businesses like Sainsbury who needs
large number of workforce focuses more towards human resource policies and formulate their
business strategy accordingly.
The Best practice approach is the best approach to be followed by the company Sainsbury
because it attains competitive advantage and goals of organizations in flexible working
conditions as well by satisfying their workforce with appraisal and recognition. This motivation
help them to stay focus towards their goal achievement. While Best fit approach is not able to
tackle difficult challenges because department of HR not able to adjust frequently. Also, the
resource bases view is not very focus towards human behavior. They take consideration of all the
assets of business including employees of the business which can not be treated as any other
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resource. As the human resource is an essential resource which should be taken care by the
company for their successful goal achievement. This approach is less concerned for capabilities
of employees which affects their performance.
HR practices of Performance Management and Reward
360 degree performance appraisal
This is an approach which is based on feedback and knowledge of employees which can
improve performance of employees as well as teams. It improves employees engagement in their
organization. Also, develops different opportunities for employees by contributing various ideas
and suggestions by them in decision making of the company. This method has some limitations
too. This method is time consuming and also hurt employees feelings which depletes their
performance.
Ranking method
In this employees are ranked according to their capabilities and skills applied in
accomplishing their task. By this method, company got best employees that suit their designated
task. This motivates employees of higher rank accomplish task effectively and efficiently. Also,
the employees at lower rank work with efficiency in order to attain higher rank. On the other
hand, this method has some disadvantages too that the employees employer relationship get
worst and conflict may increase by this method. Also, there is lack of coordination in company
as they criticize other employees which causes conflicts in the company (Hollenbeck, and
Jamieson, 2015).
The company Sainsbury follow this approach of 360 degree feedback of performance
appraisal as it enables them to attain growth and gain competitive advantage. Also, the company
by following this approach builds strong relationship with their employees and engagement
towards their company increases by their contribution of ideas and suggestions.
Recommendations for designing of performance management system
 Employees engagement can be increase by performance management system as the
employees contribute their suggestion and ideas for the company which will help them in
decision making.
 Feedback for advancement can be taken on monthly basis by this employees turnover
ratio in the company Sainsbury will decrease.
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 Also, the company can opt for regular training and development campaigns which will
develop their skills and performance of the company will increase with the contribution
of employees effective performance (Taylor, Doherty, and McGraw, 2015).
TASK 2
Nature of employment relations
Employment relation is employer and employee agreement. For better employment
relationship company offers competitive salary to employees. Also, they offer benefits like
incentives and perks to enhance and recognize their contribution towards the company. The
companies like Sainsbury also offers vacations and holiday benefit to build strong relationship
with their employees. This will implement collaborative and productive relationship between
them by use of these benefits in their organization. Also, by this they enhance workplace culture
by giving flexibility in working and compensation. Therefore, employment relationship promotes
the company towards growth and success. The company will also be able to gain competitive
advantage by strong employee-employer relationship.
Roles of actors within employment relations Employees-The roles of employees is to improve terms and conditions of employment.
They share their ideas and suggestions with management and raise their voice for
grievance handling. They share suggestion which are helpful in management in making
decisions.
 Employer – The roles of employers to hire the right person and fired the wrong ones. The
employer have rights to close, relocate and merger their company. Also, they can
introduce relevant technological advancement in their company. Like in Sainsbury, the
company own these rights in order to successful accomplishment of the goals.
Changing nature of employment relations
The employment relationship changes with changes occur in organization. As the
company Sainsbury offers flexible working environment in their company which improves their
relationship with the company. The company's flexibility attracting employees to retain with
them and this decline employees turnover ratio (Taylor, Doherty, and McGraw, 2015). But on
the other hand, technological advancement in the company increases disputes in the company.
As the company uses machines instead of workers by which their relationship becomes worst
and employees get demotivated by executing these kind of technologies in their company.
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Recommendations for employee participation and employee voice
 Sainsbury can increase employee participation by taking consideration of their ideas and
suggestion. Also, provide recognition to them for their contribution (Collings, Wood,
and Szamosi, 2018).
 The company shall prefer two way communication in their supermarket stores through
which employees participation can be easily reached to the management.
 Also, the grievance of the company shall be addressed properly and immediately by the
management team of Sainsbury.
CONCLUSION
The report concluded about relationship between business strategy and human resource
strategy. Performance management was evaluated in the report along with approaches and
recommendations. Also, Stretegic HRM was compared and contrasted in the report. Then comes
employment relation where roles of actors and nature were explained. After that changing nature
of employment relationship were discussed. At last, report was ended with some
recommendations in order to enhance employee participation and voice of employees.
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REFERENCES
Books and Journals
Books and Journals
Albrecht, S. L. and et.al., 2015. Employee engagement, human resource management practices
and competitive advantage: An integrated approach. Journal of Organizational
Effectiveness: People and Performance. 2(1). pp.7-35.
Analoui, F., 2017. The changing patterns of human resource management. Routledge.
Bailey, C. and et.al., 2018. Strategic human resource management. Oxford University Press.
Brewster, C., 2017. The integration of human resource management and corporate strategy. In
Policy and practice in European human resource management (pp. 22-35). Routledge.
Collings, D. G., Wood, G. T. and Szamosi, L. T., 2018. Human resource management: A critical
approach. In Human Resource Management (pp. 1-23). Routledge.
Hollenbeck, J. R. and Jamieson, B. B., 2015. Human capital, social capital, and social network
analysis: Implications for strategic human resource management. Academy of
Management Perspectives.29(3). pp.370-385.
Taylor, T., Doherty, A. and McGraw, P., 2015. Managing people in sport organizations: A
strategic human resource management perspective. Routledge.
Online
Best Fit Approach. 2014. [ONLINE]. Available through:
<https://nscpolteksby.ac.id/ebook/files/Ebook/Business%20Administration/
ARMSTRONGS%20HANDBOOK%20OF%20HUMAN%20RESOURCE
%20MANAGEMENT%20PRACTICE/2%20-%20Strategic%20Human%20Resource
%20Management.pdf>.
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