Human Resource Management Plan for Woolworths: Strategic Insights

This report presents a comprehensive Human Resource Management Plan (HRMP) for Woolworths, a major Australian supermarket. It begins with a strategic organizational analysis, including company background, vision, mission, values, and an examination of challenges faced by the company. The report then conducts PEST and SWOT analyses to assess the external and internal environments. Building on this, the report outlines the role of HRM in addressing business issues, followed by an identification and discussion of key HR functions such as recruitment, selection, and performance management. Challenges affecting the organization are also assessed. Finally, an HRM plan is formulated to address the prioritized challenges faced by Woolworths, providing a strategic framework for effective human resource management within the retail context. The report emphasizes the importance of HRM in fostering a healthy working environment, employee commitment, and organizational productivity within the competitive retail industry.

Running head: HUMAN RESOURCE MANAGEMENT PLAN
Human Resource Management plan
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Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................2
2.1. Strategic Organisational Analysis...................................................................................2
2.1.1. Company Background..............................................................................................2
2.1.2. Vision.......................................................................................................................3
2.1.3. Mission.....................................................................................................................3
2.1.4. Values.......................................................................................................................3
2.1.5. Challenges................................................................................................................3
2.1.6. PEST Analysis.........................................................................................................4
2.1.7. SWOT Analysis.......................................................................................................5
2.2. Role of HRM to achieve the business issues facing by the organisation........................6
2.3. HR functions within the organisation.............................................................................7
2.3.1. Recruitment process.................................................................................................7
2.3.2. Selection process......................................................................................................7
2.3.3. Performance management........................................................................................7
2.3.4. Management of HR functions in the organisation...................................................7
2.4. Challenges affecting the organisation.............................................................................8
2.5. HRM Plan........................................................................................................................9
4. Conclusion........................................................................................................................14
5. References:.......................................................................................................................15

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1. Introduction
Human Resource Management Plan (HRMP) sets out the strategies that are required
for practising HRM in an organisation. Its main purpose is to help the company in achieving
its objectives and mission by means of a systematic design and implementation of the HRM
strategies, programs and policies (Mayrhofer, Brewster & Morley. 2000). It is built upon a
thorough understanding of the vision, values, policies, mission, programs and challenges.
This report shall elaborate on developing an HRM plan for an organisation named
Woolworths, one of the major supermarket of Australia. Firstly, a strategic organisational
analysis shall be performed, examining the strategic and business plan including the mission,
vision, challenges and values facing the organisation and conducting a PEST and SWOT
analysis. Building on these results, the role necessary for the HRM to play for achieving the
business issues facing by the organisation will be assessed. Furthermore, a total of five HR
functions that are practised within the organisation will be identified and managed.
Thereafter, some HR techniques, processes and systems that challenge or affect the
organisation shall also be assessed. Finally, an HRM plan will be formulated for the
prioritised challenges faced by the organisation.
2. Discussion
2.1. Strategic Organisational Analysis
2.1.1. Company Background
Woolworths is one among the top Australian Supermarkets and is a leading company
within the retail industry. It was founded in the year 1924 along with Coles. It accounts for
about 80% of the total market share of Australia. It is headquartered in Bella Vista, New
South Wales, Australia (Wardle & Chang, 2015). At present, it has expanded itself to 995

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different locations world-wide and earns a revenue of about 56.726 billion dollars as per the
year 2018 (Sullivan & Gouldson, 2017). It is also to mention that Woolworths Supermarket is
a subsidiary of its parent company Woolworths Limited.
2.1.2. Vision
The vision of Woolworths is “being one of the most responsible retailers in the world”
by being committed towards doing good business for its customers, planet and people
(Nilssen, Bick & Abratt, 2019). It seeks to provide top quality products and services to all its
customers and it does so by means of implementing several price strategies, fresh food
strategies and the human resource strategies.
2.1.3. Mission
The mission of Woolworths is to provide its customers with the right shopping
experience and exceptional quality product every time they visit.
2.1.4. Values
The values of Woolworths inform and underpins the various different ways in which
the company conducts its business all over its Group. Right from the value based leadership
to the passionate brand advocacy, Woolworths always seek for embedding its values over all
the dimensions of the business. Its values demonstrate that the company is customer
obsessed, responsible, committed, inspirational and collaborative to the quality (Mokatse and
Van Wyk, 2017).
2.1.5. Challenges
Organisations like Woolworths face many challenges in terms of HRM. Both the
employer and the employees face difficulties in conducting smooth flowing business. These
issues should be solved as early as possible for ensuring that a healthy working environment

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is in place and the organisational productivity is not hampered at all (Ferro et al., 2019). It is
to note that in the retail industry, the employees are in direct contact with the customers. This
is why, the human resource departments need to build a workforce that is efficient and
motivated enough for shouldering the responsibilities that are pertaining to the job.
Furthermore, in the retail industry, the biggest workforce involves the people who
deal with the customers directly and adhere to all their needs and requirements. Therefore,
many of the times, the employees working in Woolworths are aware of their position and
they do not need briefing (Matthias et al., 2017). The significant issue that lies here is on the
fact that whether the human interface would prevail or not in the wake of online revolution.
At present, most of the retail industry sell their products online. This is killing the jobs and at
the same time, is decreasing the interaction and communication in between the customers and
the client significantly. This prevents huge number of people from not choosing for the jobs
present in the retail sector.
Moreover, the customers of Woolworths belong from different background and
ethnicity in this era of globalisation. Many of the times, these customers face lots of problems
in understanding the signs and reading the instructions printed on their goods. This further
negatively impact the sales of Woolworths by making it losing its customers. It at time go
very hard on its employees by levying longer working hours and providing low pay with no
holidays and growth opportunities. These situations discourage the employees working in
Woolworths and they do not give their best to their jobs.
2.1.6. PEST Analysis
Political- There is a very political pressure against the duopolistic nature of the Australian
retail industry and market (Richards, Kjaernes & Vik, 2016). While Woolworths has been
justifiably criticised for market dominance, there has been deficit in their scrutiny of

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regulatory, political failures and legislative that have allowed the supermarket duopoly to
take place.
Economical- There are easing regulations in the retail industry that is paving ways for the
new entrants (Tangires, 2019). With the same there are many lacklustre customers who spend
in Australia and this is affecting the retailers.
Socio-cultural- The relationship with the suppliers are poor and this is resulting in change in
the business culture. Woolworths have enjoyed a very dominant position within the retail
industry and has record of poor relationship with the suppliers (Pedersen, Gwozdz & Hvass,
2018). The duopolistic nature of the Australian market having the retailers treating arrogantly
to the suppliers has brought in some serious cultural issues like supplier gangling etc.
Technological- The implementation of the SAP based merchandising systems in Woolworths
for improving the efficiency is expected to bring in a positive momentum towards the growth
of sales for Woolworths (Norton, 2015). It has also rolled out of the cloud based SAP
SuccessFactors human capital management system which has biggest payroll implementation
in the Australia.
2.1.7. SWOT Analysis
Strengths Weaknesses
1. Have stores in more than 990 different
locations worldwide
2. Good brand image
3. One of the oldest, reliable and trusted
retail brands of Australia
4. Very strong commitment to
1. Late entry in the online retail
2. Very low international presence
3. Losing the competitive advantage
towards the present competition within
the industry.

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sustainability and environment
5. Huge range of products and services
6. Effective CSR programs
7. Good amalgamation of the online and
brick & Mortar based sales channel
Opportunities Threats
1. Could opt for better promotions for
winning back the customers.
2. A very promising growth of the retail
sector in the coming years
3. Huge retail markets in the emerging
economies
1. Very slow growth of the online retail
in Australia
2. The aggressive expansion of ALDI
3. Loss of customers in FY14
4. Having a discounting wars with
Coles.
2.2. Role of HRM to achieve the business issues facing by the organisation
Strong HRM helps the businesses in developing a competitive edge over their other
competitors in the market. At every levels of the organisations, both the managers and the HR
professionals work together for developing the skills of the employees and HRM in
particular, plays a great role in developing employee commitment, morale and satisfaction
level that ultimately helps the organisation to achieve its desired goals. In order to help
Woolworths in addressing the issues that it is facing in the recent years. HRM has a
significant role to play. For dealing with this issue in regard to job role, job analysis and job
design, it is very necessary for the HR department of Woolworths to develop capability
among its workers (Dekker et al., 2017). The career pathways are also required to be
modified for the Woolworths’ employees in order to ensure that they stay in the organisation
and does not look for any other options outside to work for. Rewarding attitudes from

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employers motivate the employees for working harder and improving their performances.
Under un-acknowledged and under-appreciated employees would be very less interested to
give their best to their job. It is the responsibility of the HRM to establish a strong culture that
recognised the hard work of the employees and its results into rewarding them for the same.
Many of the times, due to lack of motivation, incentives and growth, the employees leave
their organisation as they are dissatisfied with such things. For avoiding the distasteful
situation, the idea of commitment for valuing the needs is required to be established among
the employees of Woolworths and this can only be done through effective HRM practices.
Both the employer and the employees face difficulties in conducting smooth flowing business
These issues should be solved as early as possible for ensuring that a healthy working
environment is in place and the organisational productivity is not hampered at all (Ferro et
al., 2019).
2.3. HR functions within the organisation
2.3.1. Recruitment process
The recruitment process at Woolworth is based on the available jobs and positions
present within the organisation by means of examining the total availability of the candidates
for the very position (Rahman, 2016). The company dangle both the part time and full time
options for attracting candidate into the position. However, it is to note that it is only the store
managers who are kept as full time or permanent at Woolworths.
2.3.2. Selection process
The selection of the candidates is done on the basis of merit list and their expertise.
The company conducts an interview process after assessing the applications of the candidates
through various job portals where Woolworths provide its job positing. It is on the basis of
these postings that the company hire the potential candidates.

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2.3.3. Performance management
The organisations provide constant feedbacks to the employees on their work. It
conducts performance appraisals for the employees. On the basis of these performance
appraisals, it improves the designation of its employees, giving them the responsibility to
look after other higher departments.
2.3.4. Management of HR functions in the organisation
It is to note that there are a total of three main level at which the line managers and
the practitioners together or individually operate. They include- operational level, strategic
level and functional level. The practitioners along with the line managers develop the action
plans for meeting the present needs of labour in the organisation. On the other hand, at the
strategic level, the practitioners are involved in the corporate planning and human resource.
Lastly, the line managers are responsible for carrying out the several different activities at the
functional level that make sure that the employees are at the right time, in right place and at
right cost. In case of Woolworths, it is to note that it operates its HR functions at functional
and strategic level. It is due to the fact that the practitioners are involved in the HR planning
and the corporate planning at the strategic level. Whereas, at the functional level, the HR
department ensures that the employees are at right place at right time and are provided right
cost.
2.4. Challenges affecting the organisation
Woolworths has faced several challenges in terms of Strategic HR planning. Firstly, it
is to mention that when Woolworths moved for the greener pastures in the other business
enterprises, it undergone high rate of employee turnover. Also, many of the times, employees
at Woolworths quit their job on a regular basis of getting better opportunity in the other
organisations. The HR department looked for several different ways for reducing this.

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Secondly, the company face the biggest issue in attracting and managing the talent and skills
that are required for helping the company enable its strategy. Thirdly, very recently, the
company faced the challenge of culture adoption by the employees in its new invested nations
and locations. The customers of Woolworths belong from different background and ethnicity
in this era of globalisation (Piller, 2017). Many of the times, these customers face lots of
problems in understanding the signs and reading the instructions printed on their goods. This
further negatively impact the sales of Woolworths by making it losing its customers.
Fourthly, the employees at Woolworths remain in constant fear whether they would be ousted
from the job or not. It also enforce some additional pressure on the HRM department of
Woolworths as they need to work harder for motivating their employees that this is a mere
rumour and it is not necessarily true.
2.5. HRM Plan
HRM Plan
1. Employee Turnover
Objectives  To reduce the rate of employee turnover
in Woolworths by 20% within 6 months.
 Increased employee engagement
 To reduce the cost of turnover
Implementation Strategies The HR Manager to consider a number of
strategies to:
 Meeting the benefits Satisfaction of the
employees
 Providing growth opportunities
 Conducting regular meetings
 Assessing the rate of hiring process

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satisfaction
 Providing training
 Incentive plans
 Maintaining consistency and fair
treatment of all employees for all
positions
Responsibility  HR manager- Salary fixing,
compensation and benefits, employee
relations, training and development.
 CEO- Budget approvals, position
approvals, incentive plan approvals,
salary approvals
 Job Analyst- Salary fixation
Key Performance Indicators  Rate of employee productivity
 Return on Investment
 Ratio of Salary Competitiveness
 Percentage of the cost of workforce
 Rate of absenteeism
 Average tenure
 Voluntary termination rate
 Total number of full time employees
2. Recruitment and Selection
Objectives  To make sure top talents are recruited
and selected for the vacant position
 Successful in attracting suitable

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candidates
 Efficient use of time and resources for
the Recruitment and Selection process
Implementation strategies  Taking tests during interview
 Creating high performing employee
profile
 R&S flow chart development
 The expectations from the employees
should be clearly stated
 Using proper assessment methods for
the job applicants
Responsibility  HR manager- Salary fixing, training and
development, legal consultation
 CEO- Salary structure approvals,
position approvals
 Job Analyst- Salary fixation
 Line manager- Establishing the selection
criteria, duties and responsibilities
Key Performance Indicators  Observing government legislations
 Budget implications
 Establishing a realistic recruitment
and selection time frames
 Cost of human capital
 Increased productivity
 Return on the investment