Strategic HRM Analysis: Issues and Recommendations for Sainsbury's

This report undertakes a comprehensive analysis of strategic Human Resource Management (HRM) issues faced by Sainsbury's, a leading retail company in the UK. The study identifies key challenges, including employee motivation, workplace conflicts, legal issues, and employee relationship problems. It delves into the impact of these issues on Sainsbury's operations, such as poor leadership structures, lack of challenging work, and disciplinary actions. Furthermore, the report provides actionable recommendations to address these challenges, such as implementing better employee selection processes, providing training and development programs, establishing clear workplace behavior guidelines, and addressing legal and wage-related concerns. It also suggests implementing motivational theories and setting clear goals to boost employee morale and productivity. The report aims to offer strategic HRM solutions to enhance Sainsbury's overall performance and achieve its long-term objectives.

STRATEGIC HRM

Table of Contents
INTRODUCTION...........................................................................................................................1
ISSUES FACED BY SAINSBURY................................................................................................1
How employees relationship can be better..................................................................................6
How employees efficiency and performance can be enhanced so as to provide better customer
satisfaction...................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
.......................................................................................................................................................10

INTRODUCTION
Strategic HRM within the organisation tend to coordinate and integrate all the activities
performed by various functional areas of businesses so as to attain long term benefits and
objectives (Strategic HRM, 2018). In an organisation there are many issues which can be faced
and with the help of strategic HRM, proper planning are done so that problems can be
eliminated. Sainsbury is the organisation which is taken in this assignment which is one of the
leading company in United Kingdom and they are dealing in retail sector constitutes 16.9 percent
of market share. With the help of this report researcher will get to know about the issues that can
be faced. Furthermore, company can use planning and management tool strategically so as to
resolve the problems. As this includes way of thinking, a mental framework etc., Thus, this
assignment will be a consultancy project in which along with the issue solutions and
recommendations will be provided so that company can be resolve all the problem effectively.
ISSUES FACED BY SAINSBURY
Strategy is said to be a step-by-step planning of action that are to be performed so that
company can achieve set targets and objectives can be achieved. Thus, a proper planning will aid
firm in attaining a better position at market area. Therefore, in relation with Strategic Human
Resource Management, they utilize human capital and manages all the activities so that set
targets and goals can be achieved in a speculated time frame. Hence, it can be said that whatever
activities are performed by Strategic Human Resource management are done in order to attain
organisation's overall objectives (Minbaeva, 2013). Henceforth, in order to implement strategies
successfully it is crucial that number of things are taken into consideration. There are many
issues and problems such as low cost of production, time management, employees turnover,pay
for performance promotion and many more. Some of the issues which can be faced by the
Strategic HRM are mentioned below for better understanding:
Employees motivation Issues: Workers are considered as valuable assets for an
organisation as keeping them motivated can boost their morale for performing the task in an
effective manner. Along with this, it will assist company in reducing turnover which will
ultimately increase profitability of the company. Different people can have different motivation
factor but along with this, there can be some demotivating practices that can put negative impact
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on business operations. Thus, it becomes prime responsibility of manager to identify all the
issues so that effective solution can be made (Paauwe and Boon, 2018).
Its effect on Sainsbury: Company comes under second largest chain of Supermarket in
United Kingdom and was founded in the year around 1869, by John James Sainsbury in London.
Currently, firm is operating in approximately 1,415 shops with having employees around
186,900 who are working in the organisation for providing better results. Company is facing with
employees motivation issues and reason behind this are stated below: Poor Leadership Structure: As company is one of the renowned organisation and so their
structure can be quite confusing because of which there might be a possibility that
employees may not get appropriate direction for performing their task (Beer, 2015).
Thus, workers can get demotivated as their objectives are unclear. This may includes
other factors as well such as disorganised directives, inappropriate goals and objectives
and no clear chain of command. Lack of Challenging Work: According to the current market environment, employees are
more challenging towards their work, workers can be easily demotivated if they are not
provided task according to their skills and knowledge acquired (Schalk, Timmerman,
and van den Heuvel, 2013). This can be because of inappropriate selection of candidates,
not utilisation the skills and knowledge of employees and lack of professional
development opportunities provided by the Sainsbury.
 Workplace Conflict: This is one of the common issue which is faced by every company
as it is not confined with only one organisation. Main reason behind this is because of
numerous employees from different backgrounds whose concept related to a topic or
behaviour can vary. Therefore, this can be demotivating or can make employees
unproductive in nature which can be harmful for the organisation and can hamper the
profitability and sales of the company. Some of the signs that can show workplace
conflicts and these are constant compliant to the human resource, Gossip and clique
formation etc. This can hamper the motivation among the employees of Sainsbury so that
the working performance of the employees also gets down. This is a common issue which
always needs to be eradicate from the employees in order to increase their motivation.
Solutions and Recommendation: Sainsbury can resolve all the issues related to lack of
challenging work in different steps such as managers can select employees from the interviewing
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stage by considering the qualification an individual have. This will assist company in hiring
candidates who are best fit for the job (Sparrow, 2013). Other than this, HR department by
identifying the current requirement can provide proper training and development programmes so
that needs of the job can be fulfilled. In relation with workplace conflict, this issue can be
resolved by setting clear directives regarding types of behaviour that are not acceptable within
the organisation. Proper conduction of meeting on a regular basis so that differences can be
minimised and a sense of mutual understanding can be developed.
Employee Relationship Issue: Maintaining effective relation with employees is very
crucial in order to run business successfully. Employee relationship includes different aspects
majorly relationship with employer. Therefore, in order to do the same it is important that
manager and supervisor maintains a better relationship by applying appropriate policies and so as
to improve performance level of the company (Zikic, 2015). Some of the issues that can give
raise to this are mentioned below:
Its effect on Sainsbury: Legal Issues: This is the main issue from where other problems are raised because labour
law can favour some individual and to some they may not. Legal issues may includes
factors such as workplace harassment, discrimination and equal opportunity amongst
workers. It has been said by Sainsbury that they are investing £110m in a pay rise for
93% of its 130,000 shop staff member, taking pay from £8 to £9.20 per hour or £9.80 in
London, to give an average pay rise of 9.3% (Sainsbury's to cut pay by £400 a year on
average for 9,000 staff, 2019). However, paid breaks removal like annual bonus, Sunday
and bank holiday pay means 7% of Sainsbury’s staff which is approx. 9,000 people will
go through average pay cut of £400 per year. Thus, it result in difference within the
earning of staff members for 18 months as well as pledged to review its policy in March
2020. Conflict Management: In an organisation conflict are very common and reason can be
direct disagreement which can occur frequently at any situation and circumstances. Thus,
managers and superiors plays a crucial role in resolving all the issues and conflicts by
maintaining a better relationship and listening all the problems faced by employees so
that better solution can be evaluated which can assist Sainsbury in maintaining a better
relationship amongst employees and employer (Veld, 2012).
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 Disciplinary Action: While working in an organisation there are certain norms, rules and
regulations that should be followed so that better environment can be maintained. In
Sainsbury, disciplinary action is designed in order to avoid poor performance and
inappropriate behaviour.
 Hour and wages Issues: Working in a company has set working and hours and on the
basis of this salaries and wages are being provided. Thus, if employees are not provided
with appropriate salaries and than it can create tensions between employees and
employer. Wages of employees has been increase and their basic pay is £9.20 an hour
which is more than government legal minimum of £7.50 for over-25s and £7.05 for 21- to
24-year-olds (Sainsbury's increases staff pay – but axes paid breaks and bonuses, 2019)
Solutions and Recommendation: Legal issues can be resolved if Sainsbury can
implement laws and legislations which are implemented by regulatory bodies. Such as they can
incorporate Equality Act, Discrimination Act, Minimum wages act etc., In order to resolve
conflict issues company can develop documents on which all the laws and legislations should be
mentioned so that employees can be aware of do's and don't. With regards to disciplinary action,
Sainsbury, has developed in order to maintained positive environment as if workers doesn't
follow the same than managers can give verbal warning and if it further continues than it can be
converted into written warning (Beer, 2015). Unlike other companies, Sainsbury must set
working hours which is standardised and set by the regulatory bodies. As a result, it will assist
company in developing a environment friendly workplace where every individual can enjoy their
working and better outcomes can be gained in return.
Motivation Issues: This is an important factor that are to be considered by firm so that
morale of employees can be developed. According to the current market scenario, there are
different motivation methods which can be implemented by companies so as to get effective
results. There might be some situation when motivation methods that are used are not
appropriate which can create chaos in the working environment. Therefore, with the help of
some of the factors some of the elements that must be looked after by the company for having
proper working environment are mentioned below for better understanding. Thus, there are
several motivational tools using by organisations for motivating their staff members such as
annual bonus scheme, pensions, holidays, employees assistance program and so on (Benefits,
2019).
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Its effect on Sainsbury:
Motivated employees can work as a boon for the company as it can encourage workers in
performing their task in an effective manner. This will ultimately increase better customer
experience which will further aid firm in increasing its sales and profitability in a speculated time
frame. On the other hand if employees needs and wants are not fulfilled than it can demoralise
them and in return performance of workers may not be appropriate. Therefore, there are some
areas that are to be considered by Sainsbury such as focus: manager of the company should
make sure that employees while performing the task should be focused so that workers can
provide positive customer experience. Communication: In order to get better outcomes it is
crucial that superiors uses better communication so that entire message can be conveyed in an
appropriate manner (Collin, Van der Heijden and Lewis, 2012). Thus, if this is not done properly
than it can create a chaos within the workplace. Visibility: From the time of employees hired for
the organisation they should be guided what task they have to perform in order to deliver best
exceptional customer experience. Therefore, it can be said that if employees are not encouraged
on a regular basis than it can have a negative impact on the performance level of the
organisation.
Solutions and Recommendation: In terms of solution Sainsbury can adopt different
motivational theory such as Maslow Hierarchical theory and Herzberg motivational theory in
order to encourage employees who are working within the organisation. Other than this, by
creating a positive working environment managers and superiors can motivate its workers. Apart
from this, setting goals and objectives is the best sources for encouraging employees because
reasonable goals and objectives can hit workers in pushing their limits so that notable milestones
can be achieved (Uysal, 2014).
Employees Productivity: This is an important factor that has to be consider because
workers are the prime assets who perform their activities in order to provide benefits to the
organisation. Productivity of employees can be increased by providing better training and
development programmes on a regular basis after considering needs and requirements of market
environment.
Its effect on Sainsbury:
While working in an organisation there can be many distractions which can be faced by
employees and has to be managed by superiors so that workers can remained focus in order to
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perform the task in an effective manner. For instance: Workers of Sainsbury is not provided with
appropriate guidance then its impact can be seen on the performance of the company as there can
be delay in delivering effective services and facilities because of which customers relationship
can gets hampered. For example: if human resource department of the Sainsbury are not hiring
eligible candidates that this can decrease the productivity level of the firm because of which sales
and productivity of the company can be lowered down (Lepak and et. al., 2012).
Solutions and Recommendation: In relation with this, it can be resolved by making a
proper understand of the difference between efficiency and productivity because if superiors
have efficient human capital than their productivity will ultimately get increased. Furthermore, in
order to increase productivity Sainsbury can give incentives according to the skills and
knowledge acquired. Other than this, if appropriate employee opportunities are provided so that
they can show their best while performing their activities. In addition to this, company should
follow appropriate pay which can satisfied the needs and wants of customers and create a sense
of belongingness towards the organisation.
How employees relationship can be better
Employees relation is important to be maintained so that strong organisation can be
developed within the company because the better relationship with the management the effective
the work would be. Therefore, Sainsbury can adopt various effective methods in order to
improve employees relationship and these are explained below for better understand:
Open Communication: This is an effective process that helps an individual in transferring
information from one person to another. Thus, in relation with Sainsbury, it is important that
effective tools are being used so as to maintain a harmonious employees relationship between
employees (Hopp and Zenk, 2012). For example: an effective strategies are developed by the
managers of the company in order to improve its sales and profitability but the same is not
communicated in an effective manner than it can create problem in achieving goals and
objectives in a speculated time frame. Furthermore, Sainsbury should have a separate column in
the organisation where employees can put their problems so as to get effective solutions of the
same.
Encourage Cooperation: Working in stress can sometimes act as a negative element
because it can create problem in achieving common goals and objectives in a limited time frame.
Thus, it is important that with the help of effective strategies employees are encouraged on a
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regular basis. This will ultimately boost the morale of employees and encourage them in
achieving the set targets properly. But if required than there should be a healthy competition
which will not only give better results but instead it can give effective results from the same.
Other than this, company must focus on implementing new things by eliminating the old one so
that company can work according to the current market scenario. In addition to this, Sainsbury
can introduce new activities such as once in a week firm can conduct activity like scavenger hunt
this will light the mood of employees and will fill them with full of enthusiasm.
Reviews and Feedbacks on a regular basis: This is a crucial factor that which are
considered by the firm as asking feedbacks related to the work can develop a sense of
belongingness towards the company (Sani, 2012). On the basis of reviews and feedbacks
company can know about the needs and wants of employees like through what process workers
morale can be boosted. In order to do the same managers and superiors of the company can send
mails or a formal letter through which they can get to know about the same. Moreover, company
can have a different forum for this who can look after the same because reviews and feedbacks
will not only improve the performance of company but it can also enhance the skills and
knowledge.
Reward system: This is one of the effective system through which company can easily
motivates its employees because they can happily perform their activities if they are encourage
or inspired for the same. For example: if a worker is doing well in its business than they can be
awarded in the form of compensation or bonuses. On the other hand if they are not doing so than
employees has to face repercussion of the same like punishment, demotion etc.,
Including employees in different activities: Company can get effective results, if every
employees are treated equally and they are included in different activities. Vision of the company
should not be kept secret because they are the one who perform their activities in order to
provide better results and outcomes. Other than this, superiors must take viewpoint of its
employees regarding the vision so that proper decision can be taken in order to achieve set goals
and targets in a speculated time frame (Cooke and Saini, 2015).
Therefore, with the help of above mentioned points Sainbury can improve its employees
relation which can work as a positive factor for the company. As a result, it can increase the sales
and profitability in a speculated time frame. Therefore, it will assist firm in improving and
providing better customer experience.
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How employees efficiency and performance can be enhanced so as to provide better
customer satisfaction
Every company establish its business in order to get into a better position in the market
area. For this it is important that employees' performance is better because they can moreover
provide better customer satisfaction to the customers. Therefore, Sainsbury had to look after
certain factors so that customer satisfaction can be improved or enhance the productivity level of
the organisation. Thus, some of the activities that can incorporate by company in order to
provide improved customer satisfaction are given below:
Latest tools and technologies: In this advanced working environment there are various
tools and technologies that can help company in maintaining a better services and facilities to its
customers (DuBois and Dubois, 2012).
Flexible in nature: Company should include flexible policies and they must listen to
customers feedback so that better services can be provided. As a result, it will aid them in
maintaining a better customer satisfaction in a speculated time frame.
CONCLUSION
From the above report it can be evaluated that strategic HRM plays a crucial role in an
organisation as they assist company in implementing all the resources and facilities in an
effective manner. They consider the needs and requirements of workers so that they can act
accordingly and provide company with benefits. With an effective strategic HRM company can
increase the performance of the company. Through this assignment, company can get to know
about the issues that are to be focussed so that company can think upon this and better solutions
can be gained in order to cope up with the problem and issue.
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REFERENCES
Books and Journals
DuBois, C. L. and Dubois, D. A., 2012. Strategic HRM as social design for environmental
sustainability in organization. Human Resource Management. 51(6). pp.799-826.
Minbaeva, D. B., 2013. Strategic HRM in building micro-foundations of organizational
knowledge-based performance. Human Resource Management Review. 23(4). pp.378-
390.
Paauwe, J. and Boon, C., 2018. Strategic HRM: A critical review. In Human Resource
Management (pp. 49-73). Routledge.
Schalk, R., Timmerman, V. and van den Heuvel, S., 2013. How strategic considerations
influence decision making on e-HRM applications. Human Resource Management
Review. 23(1). pp.84-92.
Sparrow, P., 2013. Strategic HRM and employee engagement. In Employee engagement in
theory and practice (pp. 113-129). Routledge.
Zikic, J., 2015. Skilled migrants' career capital as a source of competitive advantage:
Implications for strategic HRM. The International Journal of Human Resource
Management. 26(10). pp.1360-1381.
Veld, M., 2012. HRM, Strategic Climate and Employee Outcomes in Hospitals: HRM Care for
Cure?.
Beer, M., 2015. HRM at a crossroads: Comments on “Evolution of strategic HRM through two
founding books: A 30th anniversary perspective on development of the field”. Human
Resource Management. 54(3). pp.417-421.
Collin, K., Van der Heijden, B. and Lewis, P., 2012. Continuing professional
development. International journal of training and development. 16(3). pp.155-163.
Uysal, G., 2014. Taylor, HRM, strategic HRM with jobs, employee performance, business
performance relationship: HR governance through 100 years.
Lepak and et. al., 2012. Strategic HRM moving forward: What can we learn from micro
perspectives. International review of industrial and organizational psychology. 27.
pp.231-258.
Hopp, C. and Zenk, L., 2012. Collaborative team networks and implications for strategic
HRM. The International Journal of Human Resource Management, 23(14). pp.2975-
2994.
Sani, A. D., 2012. Strategic human resource management and organizational performance in the
Nigerian insurance industry: The impact of organizational climate. Business Intelligence
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Cooke, F. L. and Saini, D. S., 2015. From legalism to strategic HRM in India? Grievance
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Online
Strategic HRM. 2018. [Online]. Available Through:
<https://www.younghrmanager.com/strategic-issues-in-human-resource-management>.
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Sainsbury's increases staff pay – but axes paid breaks and bonuses, 2019.[Online]. Available
Through:<https://www.theguardian.com/business/2018/mar/06/sainsburys-increases-
staff-pay-aldi-lidl>
Sainsbury's to cut pay by £400 a year on average for 9,000 staff, 2019.[Online]. Available
Through:<https://www.theguardian.com/business/2018/may/24/sainsburys-presses-
ahead-with-pay-cuts-averaging-400-a-year>
Benefits, 2019.[Online]. Available
Through:<https://sainsburys.jobs/working-at-sainsburys/benefits/>
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