Sainsbury's HR Strategies: External Environment and Resourcing Report

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This report provides a comprehensive analysis of Sainsbury's human resource practices, focusing on recruitment, training, and development strategies. It examines the company's response to changes in the external environment, including political, economic, social, technological, legal, and environmental factors, using the PESTLE analysis framework. The report also evaluates Sainsbury's resourcing strategies, emphasizing the importance of attracting and retaining skilled employees to achieve competitive advantages. It highlights how Sainsbury's adapts its HR practices to navigate challenges and opportunities within the UK retail market and globally, ensuring operational efficiency and customer satisfaction. The report underscores the critical role of human resources in achieving the company's goals and objectives, emphasizing the need for continuous adaptation and strategic alignment in a dynamic business environment.
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Human Resources and
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Table of Contents
INTRODUCTION.......................................................................................................................................3
Main Body...................................................................................................................................................3
CONCLUSION.........................................................................................................................................11
REFERNCES............................................................................................................................................12
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INTRODUCTION
Human resources are the employees who perform assigned task in an efficient manner so
that company can achieve its goals and objectives. There are a lot of resources such as financial
resources and other resources are used in business. In present time, human resources have also
become a crucial part of organization. They are considered as social elements that need to
motivate on regular basis for ensuring growth and success of business (DeCenzo, Robbins and
Verhulst, 2016). Now, there are a lot of changes are being introduced in the external environment
which also put a great impact over HR practices of company. The present report is based on
Sainsbury which is a renowned company working in retail industry. It is considered as one the
biggest supermarket chains within UK that deals in general items and groceries. It is stated that
company is adopting effective strategies of people management and resourcing which are going
to be discuss in the present report. It also comprises changes which are coming in external
environment along with the way in which organization responds these changes. Moreover,
human resource is a vital part of business that needs to manage with the help of appropriate
strategies.
Main Body
Overview of Company
Sainsbury is regarded as the second largest chain of supermarkets within UK. It was founded by
John James Sainsbury in the year of 1869 in London. The company is working within three
domains such as Bank, Supermarkets and Argos. They have huge brand portfolio such as habitat,
argo, groceries, financial services and more which is imperative for attracting more number of
customers. This diversity is helpful in attracting more number of customers. However,
organization was started in London but it has been expanded business overtime resulted has
nearly 2400 stores in different countries across the globe. Currently, Sainsbury is working within
70 countries at international level. In addition, it also serves customers via online
medium (Marchington and et. al., 2016). Here, Martin Scicluna is the chairman of company who
has extensive experience thus able to prepare crucial strategies for betterment of organization.
Apart from this, there are highly experiences persons are appointed by company at higher level
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of organizational hierarchy for running business in an efficient manner. Main Strategy of
Sainsbury is to bring operations efficiency within business for providing quality food & products
to customers in relatively lower price. For this, they try to reduce overall cost and make sure that
their brand portfolio supports their focus over food with an aim to deliver higher value to
stakeholders.
Vision and Mission of company:
Vision: “To become trustworthy retailer from where people like to shop and work for
earning huge sales and profit margin”.
Mission: “ To become the priority of customers for getting food, and products with
remarkable quality and great services at competitive pricing by working simpler, faster and
together”.
Human resource practices of Sainsbury:
It is analyzed that human resources are one of the key stakeholders of business as they
perform different business functions in such a manner that company can attain its predefined
goals & objectives. Without, human resources, it is not possible to complete functions of
organization. For this purpose, there are various practices adopted by HR managers of Sainsbury
which are discussed below:
Recruitment: It refers to getting the right people at right place. Recruitment is vital for
hiring potential candidate for performing different roles & responsibilities in an efficient manner.
In recruitment, managers create a pool of potential candidates and then select most suitable
individuals as per requirement of vacant position of organization. There are two important
sources of recruitment such as internal sources and external sources (John and Taylor, 2016). In
internal sources, candidates are selected within company for filling the vacant position. On other
side, in external sources, candidates are invited from outside environment. In external sources
organization can hire individuals from campus recruitment, walk ins and with the help of
employment agencies. In context of Sainsbury, they are working at large level thus require a lot
of individuals for handling different operations of entity. So, they use both sources of recruitment
internal as well as external for getting a right candidate onboard.
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Training and development: Under this, organization arranges appropriate training programs so
that employees can learn new skills. It is a vital practice of human resource management which
is often adopted by companies for train their staff members. Training is essential for further
growth of work force and also minimizes probabilities of mistakes at work place. It helps to
enhance overall efficiency & productivity of work force so that they can perform assigned task
effectively. For training, company arranges conferences, seminars and also takes help of
experience professional (Wilton, N., 2016). Sometimes, organizations also arrange on the job
training where staff members get an opportunity to earn while working. By this way, training not
only enhance efficiency of work force but also improve their morale. It is stated that Sainsbury
also provides appropriate training to their work force with an aim to improve their level of
productivity. Whenever, they introduce any kind of changes in current working practices then
they arrange training programs so that employees can cope up with changes in an efficient
manner. Further, they also provide training to work force so that they can meet with current
trends of market.
Analyze current and predicted changes in external environment
In present time, there are a lot of changes are coming in external environment so it is vital
to analyze as well as track these changes for making modifications in existing strategies of
company. These changes put great impact over business so it is the responsibility of managers to
keep an eye over external environment and prepare strategies accordingly. There are a lot of
factors included in external environment which cannot be controlled by business owners. These
elements are related to outside environment and change overtime. For this, there is a model
called PESTLE Analysis has been applied which is mentioned below:
Political Factors: These factors are related to change in political condition, legislations,
and government policies of a country. It is analyzed that Sainsbury is working in different
countries across the globe so highly affected with change in political environment of different
countries. Here, company is majorly operated within UK so it is affected with political
conditions of country (Banfield, Kay and Royles, 2018). Brexit put an adverse impact on overall
sales and profit margin of organization by reducing down purchasing capabilities of individuals.
Due to these changes, organization needs to modify its HR strategies accordingly. Changes in
political conditions might affect demand and supply of work force.
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Economical Factors: These factors are concern with inflation rate, disposable income,
demand, supply and more such elements. In present time, there is deep economic recession
prevailing within different countries. Due to this, individuals are not even able to buy necessary
commodities. Here, Sainsbury also examines negative impact over its sales and profit margin due
to current pandemic condition. These economic changes will also reduce down employment
opportunities for people (Chelladurai and Kerwin, 2018). Because of decrease in demand,
company is not going to hire new employees rather it face difficulty to pay existing employees.
So, these sudden changes in current economic condition are not favorable thus put negative
impact over human resource practices.
Social Factors: It is related with needs, demands, preferences, behavior and attitude of
customers. It is stated that customer behavior is not likely to same over the time. It is meant to be
change so companies also need to modify their existing practices to meet with requirements of
customers in an efficient manner. Now there is a shift has been examined in the behavior of
buyers as now they are more likely to buy products online. In present time, customers often
avoid to visiting outlets for purchasing products. In context of Sainsbury, they are also providing
online shopping option to customers. Due to increase in the use of online platform several
employees will lose their job. Therefore social factors are changing rapidly which also affect HR
practices of company.
Technological Factors: In present time, technology plays a crucial role in business.
Also, there are new techniques and advancements being introduced within business. These
techniques are vital for improving business performance. In addition to this, companies use
advance sofwares, tools for undertaking business functions in an effective manner. In reference
of Sainsbury, it uses advance tools and techniques for catering the needs & requirements of
customers (Tung, 2016). They use online platform to serve customers effectively. Here, use of
advance technologies and softwares reduce requirement of human resources in business. By this
way, technological factors put great impact over human resource practices of organization.
Legal Factors: It comprises different rules and regulations for ruing business in an
efficient manner. Here, legislations are prepared by higher authorities with an aim to run
business effectively. In context of Sainsbury, they need to abide different legislations such as
customer protection law, business law, employee protection act and more in order to running
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business in smooth manner. It is stated that government often make changes in employee
protection act, minimum wages act, payment of bonus act and more which affect HR practices
of organization. Also, due to changes in these laws organization also need to make modifications
in their existing HR strategies.
Environmental Factors: Now, environmental protection is crucial for business. Thus,
they adopt such practices which are also favorable for environment. By this way, companies
cannot only protect environment but also maintain positive image of company in market place.
In reference of Sainsbury, they ensure to adopt eco friendly approaches for protecting
environment (Analoui, 2017). Apart from this, government also formulates necessary laws which
need to follow by company in order to protect environment. It is the responsibility of each and
every employee to understand their responsibility towards environment and fulfill it an efficient
manner.
With above discussion, it is analyzed that external environment is unpredictable which
can be change anytime. These changes also affect business setting as due to this companies also
need to modify their existing strategies. Changes in external environment are related to political,
economical, technological & social and more which influence HR practices of company. It
affected demand and supply of human resources at market place. So, business managers are
required to analyze the changes and prepare appropriate strategies in order to deal with these
changes effectively.
Evaluate the way in which company respond to these changes of external environment within
resourcing strategies
It is stated that there are a lot of changes are coming in external environment which need
to address effectively for attaining predefined business objectives. These changes put impact
over human resource practices of company. For this, managers of Sainsbury prepare ample of
strategies which are given as under:
Resourcing strategy: This strategy is related to hiring as well as retaining right
employees efficiently. Main aim of resourcing strategy is to get skillful, potential and qualified
candidates for attaining predefined objectives. Here, company strives to get competent
candidates in order to achieve competitive edge for sustaining in market place for longer duration
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(Brewster, Mayrhofer and Farndale, 2018). In this strategy, organization also provides
appropriate rewards, acknowledgement to work force so that they stay with organization for
longer duration. This strategy is related to placing right candidate at right place which is essential
for betterment of business. It is analyzed that for working in change environment it is vital to get
right people onboard. Here, resourcing strategy is related to hire potential candidates so that
company can deal with change environment in an efficient manner. In context of Sainsbury, they
need to adopt appropriate resourcing strategy in order to get suitable candidates for performing
assigned task in best possible way. It is said that success of a company lies in its people so with
the support & assistance of competent individuals organization will be able to deal with changes
effectively.
Human resource planning: It refers to make anticipations about future needs and
requirements of human resources. Here, company makes plan that how many people they will be
required in future. Then, they adopt appropriate sources for getting human resources. So, human
resource planning is related with demand & supply of employees at a particular period of time. It
is really essential in changing environment to anticipate future requirements of employee and
make arrangements accordingly (Sparrow,Brewster and Chung, 2016). By this way, organization
is able to identify future deficit & surplus thus prepare appropriate action plan for ensuring future
growth of organization. In reference of Sainsbury, they prepare appropriate plans for meeting
with current and future requirements of human resources in an efficient manner.
Motivation: Motivation refers to a process under which an individual is inspired to do the
desired task in an efficient manner. For undertaking a task effectively, it is imperative to stay
motivated and inspired. It is analyzed that motivated employees tend to work effectively for
betterment of company. Therefore, companies adopt ample of strategies in order to encourage
employees in an efficient manner. In changing environment, it is crucial to motivate employees
so that they can coordinate with changes in an efficient manner. In context of Sainsbury,
manager also adopt effective strategies for motivating work force so that they can coordinate
with changes effectively. For this purpose, there is a model called Maslow’s motivation
hierarchy is given as under:
Psychological needs: It comprises fundamental requirements of an individual. These
needs are related to shelter, food, education and other requirements which are essential for
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survival. It is analyzed that Sainsbury make sure that its all employees are able to meet with
basic requirements.
Safety needs: These needs are related to stay safe and secure. Here, an individual also
wishes to get financial security for future. By keeping this factor in mind Sainsbury provides
secure work environment to work force (Kavanagh and Johnson, 2017).
Social needs: It is stated that Sainsbury also formulated informal groups so that they can
meet with social requirements.
Self Esteem: In this, Sainsbury recognizes efforts and contribution of employees by
providing them appropriate rewards and acknowledgement.
Self actualization: Here, Sainsbury also provides opportunities to work force to
maximize their potential at higher level.
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CONCLUSION
With above discussion, it is concluded that human resources play a crucial role in
business success and growth by performing assigned task effectively. For this, HR manager of
company undertakes a lot of approaches and strategies for managing human resources in an
efficient manner. Further, there are a lot of changes are coming in external environment which
also affect HR practices of business. So, discussion has been carried out regarding appropriate
strategies of people management and resourcing. These strategies will help in dealing with
external changes in an effective way. It is concluded that human resource are one the imperative
resources for company without which it is not possible to attain organizational goals and
objectives.
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REFERNCES
Books and Journals
Analoui, F. ed., 2017. The changing patterns of human resource management. Routledge.
Banfield, P., Kay, R. and Royles, D., 2018. Introduction to human resource management.
Oxford University Press.
Brewster, C., Mayrhofer, W. and Farndale, E. eds., 2018. Handbook of research on comparative
human resource management. Edward Elgar Publishing.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016. Fundamentals of human resource
management. John Wiley & Sons.
John, R. and Taylor, B., 2016. Human resource management.
Kavanagh, M.J. and Johnson, R.D. eds., 2017. Human resource information systems: Basics,
applications, and future directions. Sage Publications.
Marchington and et. al., 2016. Human resource management at work. Kogan Page Publishers.
Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge. Delery, J.E. and Roumpi, D., 2017. Strategic human resource management,
human capital and competitive advantage: is the field going in circles?. Human Resource
Management Journal, 27(1), pp.1-21.
Tung, R.L., 2016. New perspectives on human resource management in a global context. Journal
of World Business, 51(1), pp.142-152.
Wilton, N., 2016. An introduction to human resource management. Sage.
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