Impact of HRM Practices on Employee Engagement and Retention: ASDA

This report analyzes the human resource management (HRM) practices and their impact on employee engagement and retention within the UK retail industry, using ASDA as a case study. The introduction provides an overview of the research, the company background, and research objectives. The literature review covers the basic understanding of HRM, employee engagement, and retention, along with practices used by ASDA and the benefits of engaging and retaining employees. The research methodology outlines the research philosophy, approach, strategy, and choice, including data collection methods. Research findings include data analysis and interpretation, while the conclusion summarizes the key findings and provides recommendations for ASDA. The report emphasizes the importance of HRM practices such as performance management, recruitment, training, and compensation in fostering employee engagement and retention, leading to increased productivity, improved customer experience, and reduced costs. The report highlights that engaged employees are more productive, and better customer experiences, and less time spent on hiring and training. The report concludes by emphasizing the importance of effective HRM strategies for sustained success in the competitive UK retail market.

To analyse the practices of
human resource management
and its impact on employee
engagement and retention
within the UK retail industry

Table of Contents
INTRODUCTION...........................................................................................................................3
Overview of the research............................................................................................................3
Background of the company.......................................................................................................3
Research aim, objectives and questions......................................................................................3
Research rationale.......................................................................................................................4
LITERATURE REVIEW................................................................................................................5
Basic understanding regarding the human resource management and employee engagement
and retention in context with the UK retail industry...................................................................5
Practices used by HRM for engaging and retaining employees within ASDA..........................5
Benefits that would be gained by ASDA while engaging and retaining employee for longer
time period..................................................................................................................................6
RESEARCH METHODOLOGY.....................................................................................................8
RESEARCH FINDINGS.................................................................................................................9
Data analysis...............................................................................................................................9
CONCLUSION AND RECOMMENDATIONS .........................................................................24
Conclusion.................................................................................................................................24
Recommendation.......................................................................................................................24
REFERENCES..............................................................................................................................26

INTRODUCTION
Overview of the research
Human resource management is defined as the practice of hiring, recruiting, managing
and deploying employees within an organisation. It is referred to as the strategic approach that
helps in managing the employees working within the company in an effective and efficient
manner in order to gain high competitive advantage over other competitor companies. It is
designed to increase performance of employees for achieving the predetermined goals and
objectives of the business (Macke and Genari, 2019). Human resources have the knowledge and
tools for creating the strategies that actually help in engaging employees and within organisation
so that they take part in the process of decision making. Human resource practices helps in
reducing the level of stress among employees so that they work in a more effective and
productive manner within an organisation. Highly engaged employees are more productive and
efficient in performing task of the business and also helps in achieving predefined aim and
objectives.
Background of the company
The chosen organisation in the current study is ASDA. ASDA is considered as a
supermarket chain in the British market which is headquartered in Leeds, England. The company
was founded in the year 1949 that focus on delivering quality goods to the customer in the highly
competitive business environment (Plaskoff, 2017). The main purpose of the business
organisation is to encourage every person to be honest and open about the product and service
that they deliver in the market for gaining high profitability. The company mainly focus on
working collaboratively and creatively with each other in order to gain sustained aim and
objectives of the business.
Research aim, objectives and questions
Research aim:
To analyse the practices of human resource management and its impact on employee
engagement and retention within the UK retail industry: A study on ASDA
Research objectives:
 To increase basic understanding regarding the human resource management
and employee engagement and retention in context with the UK retail industry

 To examine the practices used by HRM for engaging and retaining employees within
ASDA
 To determine the benefits that would be gained by ASDA while engaging and retaining
employee for longer time period
Research questions:
 To increase basic understanding regarding the human resource management
and employee engagement and retention in context with the UK retail industry?
 To examine the practices used by HRM for engaging and retaining employees within
ASDA?
 To determine the benefits that would be gained by ASDA while engaging and retaining
employee for longer time period?
Research rationale
The main purpose of carrying out the present research is to identify the basic
understanding about the concept of human resource management and employee engagement,
retention within the UK retail industry. Human resource management is the most effective
department within an organisation that handles all the important aspects of employees and has
different functions like human resource related planning (O’riordan, 2022). The researcher fulfils
dual objectives such as personal and professional. In terms of personal objectives, the researcher
will gain knowledge and skill related to the research topic and in gaining future growth as a
student. Whereas in terms of professional objective, the researcher will know about the concept
of human resource management and how it helps in managing the system of the organisation.

LITERATURE REVIEW
Basic understanding regarding the human resource management and employee engagement and
retention in context with the UK retail industry
As per the view of Kumah, (2022), human resource management is considered as the
function of an organisation that helps in managing all the business and employees related issues
in a more effective manner. That mainly includes providing compensation and rewards to
employees so that they work with high confidence and dedication for achieving the goals and
objectives of the business. Human resource management is also considered as a comprehensive
and strategic approach that helps in managing people and the culture of the workplace and
environment. It is mainly defined as the practice of managing and supporting employees by
every aspect related to their jobs, from hiring and recruitment to professional development of
employees and retirement benefits. Whereas employee engagement is defined as the level of
dedication and enthusiasm an employee feel towards their job role. Highly engaged employee is
more committed towards their work and also helps in achieving the predetermined objectives of
the business in an effective manner. It is important for the human resource management to retain
and engage employees working within an organisation by providing them better opportunities so
that they gain more growth and success in the business. Engaged employees are retained within
the business organisation because they are allowed to discuss their thoughts and perceptions at
the time of making decisions so that they work in an effective manner. Human resource
managers are responsible for hiring and recruiting talented employees within an organisation
because they help in attaining more number of customers in the business and also helps in
gaining more share in the market. It is the employees of the business that helps in creating a good
presence in the market and for gaining high profitability and productivity in the competitive UK
retail industry.
Practices used by HRM for engaging and retaining employees within ASDA
As per the view of Margherita and Bua, (2021), practices related to human resource
management helps in retaining and engaging employees for more period of time within the
business market. Employee retention matters within an organisation because it helps in reducing
the employee turnover and this results in gaining high profitability of the business. There are

different type of human resource management practices that help ASDA in retaining and
engaging their employees which are defined as under:
 Performance Management – Performance management is defined as a continuous
process of effective communication between an employee and a supervisor that works
throughout the year, in support of achieving the strategic goals of an organisation. It
mainly helps in ensuring the the activities of the business organisation so that they gain
goals and objectives.
 Recruitment and Selection – Recruitment and selection is the most important human
resource management practice that helps in brining talented employees within the
business organisation so that they achieve the predefined goals of the business in an
effective manner. Recruitment is defined as the process of finding the most suitable
candidate for the vacant job position within an organisation whereas selection is the
process of selecting the best employee from the pool of candidates for offering them the
particular job.
 Training and Development – Training and development helps in improving the
effectiveness of the company and the different number of persons and teams so that they
can work in an efficient manner. Training helps in increasing the knowledge and skills of
employees so that they achieve the goals and objectives of the business.
 Compensation & Rewards – Compensation and rewards is the most effective HRM
practice that helps in improving the morale and motivation of employees so that they can
work in a more efficient and productive manner.
Benefits that would be gained by ASDA while engaging and retaining employee for longer time
period
As per the view of Katou, (2017), there are different benefits that an organisation will
gain while retaining and engaging employees for longer period of time. It is important for the
business organisation to retain and engage employees within the business because it helps in
gaining high growth and profitability. The benefits gained by the business organisation are
defined as under:
 Increased productivity – When employees are engaged within the business, they tend to
more productive in achieving the predetermined goals and objectives of the business
market. Effective retention of employees helps the business in saving the organisation in

reducing the losses. Engaged employees of the business helps in improving the
relationship of customer and teams in order to remain productive and positive so that they
gain high growth in the business.
 Better experience of customers – Customers are considered as the most important part
of the company because they are the only factor for whom they make products and
services. When employees are more engaged within the business organisation they tend
to focus on customers in order to improve their customer experience in an effective
manner. It is the responsibility of employees to provide customer with best services so
that they retain within the business for more period of time.
 Less time spent in hiring and training – With the help of HRM, the time spent on
hiring and training is less as compared to the most preventive measures. With the help of
training the company can improve the skills and knowledge of employees in an effective
manner so they achieve high growth and success in the competitive retail industry. It is
the employees of the company that helps in developing employees morale and motivation
so that they gain high variability and reliability in the market.

RESEARCH METHODOLOGY
Research methodology is the most important part in the whole research because it helps
in gathering and analysing information about the topic in an effective manner. Research
methodology helps the researcher in maintaining the reliability and validity of the collected
information about the topic in an effective manner (Rinjit, 2020). The researcher has used
Saunders Onion framework in the present research and this helps in using various tools and
methods for gathering and interpreting data in order to achieve research aim and objective.
Research philosophy
Research philosophy can be divided into two different parts which are defined a positivism and
interpretivism. The investigator has selected positivism philosophy in carrying out the current
investigation so that better information can be acquired (Gupta and Gupta, 2022). The main
reason for selecting positivism philosophy in the present investigation is that it helps the
investigator in gathering and analysing quantitative information on the given research topic in an
appropriate manner.
Research approach
Research approach is an effective method of research methodology that helps the researcher in
gaining reliable information about the topic. Deductive and inductive are two different kinds of
research approaches. The researcher has selected deductive approach in carrying out the present
research in an effective manner (Patel and Pate, 2019). The main reason for selecting deductive
approach is that it helps in testing the theories in a more proper way so that they attain the
research objectives.
Research strategy
Research strategy is also considered as an important strategy of research methodology
that helps the researcher in gaining correct information from the respondents. Focus group, case
study, literature review, survey, interview and many more. The researcher has selected survey
research strategy in the current research (Cuervo‐Cazurra and et. al., 2017). The reason for
selecting survey method is that it helps gathering right and fair information from the respondents
about the selected topic.
Research choice
Research choice is considered as the selection of method which is used in order to carry
out the overall research. There are two types of research choice such as quantitative and

qualitative. For the current research the investigator has chosen quantitative research choice so
that to develop statistical results within the research.
Data collection
Data collection is considered as the process which is used by the researcher so that to
gather information related with the research topic. There are two types of data collection method
such as primary and secondary (Sileyew, 2019). For the current research the researcher has used
secondary sources of data collection. In this researcher has used books and journals in order to
acquire in-depth results and conducted a survey in which 100 participants were included. The
information collected using survey was used by the researcher as secondary source.
Data analysis
Data analysis is the method which is used by the researcher in order to analyse the
gathered information and to reach out to research results. There are two types of data analysis
such as frequency distribution table and thematic analysis. In terms of the current research the
researcher has used thematic analysis (Knottnerus and Tugwell, 2018). In this the researcher has
made theme out of collected data which is inclined with research results.
Time horizon
Time horizon is the time limit given to the researcher in order to complete the research
along with all the activities. There are two types of time horizon such as cross-sectional and
longitudinal. In the current research the researcher has used cross-sectional time horizon so that
to align all the research activities in the path to attain research objectives (Singh, 2022). The
major reason of selecting this time horizon is that this will cover different activity at a single
point of time.
RESEARCH FINDINGS
Data analysis
Performance management
Table 1: Targets and their due dates are clearly communicated to staff members
Q.1. Targets and their due dates are clearly communicated to staff
members?
Frequency
a) Strongly agree 45

b) Agree 24
c) Uncertain 12
d) Disagree 22
e) Strongly disagree 19
a) Strongly agree b) Agree c) Uncertain d) Disagree e) Strongly disagree
0
5
10
15
20
25
30
35
40
45
45
24
12
22
19
Illustration 1: Targets and their due dates are clearly communicated to staff members
Interpretation: From the above graph this can be summarised that out of 100 respondents, 45
have said that targets and due dates are clearly communicated to the employees so that no
confusion within exerting roles and responsibilities can be created among employees. Besides
this 24 have said that they are agreed with role delegation in their organisation so that role are
communicated to the employees in easy manner. On the contrary, 22 have said that they are
disagreed regarding role delegation in their organisation as its is not clearly communicated
among employees and 19 have answered that they are strongly disagree on communication
regarding due dates and communication in their organisation.
Table 2: The performance review focuses on evaluating my competencies and abilities

Q.2. The performance review focuses on evaluating my
competencies and abilities
Frequency
a) Strongly agree 19
b) Agree 18
c) Uncertain 12
d) Disagree 21
e) Strongly disagree 30
a) Strongly agree b) Agree c) Uncertain d) Disagree e) Strongly disagree
0
5
10
15
20
25
30
19 18
12
21
30
Illustration 2: The performance review focuses on evaluating my competencies and abilities
Interpretation: Above mentioned graph states that performance managerialist is related with
examining abilities and capabilities hold by the employees so that they can perform better and
deal with business activities. In this manner out of 100 respondents, 19 have answered that they
agree on the statement that performance management is focused over evaluating abilities and
capabilities within individuals. Whereas 21 are disagree on the above statement as for them
performance management is related with using employee skills in effective manner for attaining
business objectives.
Table 3: I receive good feedback on my performance appraisal

Q.3. I receive good feedback on my performance appraisal Frequency
a) Strongly agree 23
b) Agree 15
c) Uncertain 9
d) Disagree 20
e) Strongly disagree 33
a) Strongly agree b) Agree c) Uncertain d) Disagree e) Strongly disagree
0
5
10
15
20
25
30
35
23
15
9
20
33
Illustration 3: I receive good feedback on my performance appraisal
Interpretation: From the above graph this can be summarised that with the help of performance
appraisal employee retention can be increased and at the same time their capabilities can be used
in order to attain business objectives. In this manner out of 100 respondents, 23 have said that
they are strongly agree that they are receiving proper feedback over performance appraisal which
is effective for managing individual employee skills. Whereas, 33 are strongly disagree as they
do not feel that they are getting proper feedback for their performance appraisal.
Q.4. My performance appraisal is discussed with my supervisor Frequency
a) Strongly agree 23