Strategic Human Resource Management Report: Sainsbury's Case Study

This report provides a comprehensive analysis of strategic human resource management (SHRM) within Sainsbury's, a retail sector industry. It begins by explaining the crucial relationship between business strategy and HR strategy, emphasizing the importance of aligning HR practices with overall business objectives. The report then evaluates various theoretical bases and models of SHRM, including the Human Capital Theory and the Ulrich Model, and critically analyzes strategic perspectives such as Best Fit/Contingency, Best Practice/Universalist, and Resource-Based View (RBV). Specific HR practices, including performance management and reward systems, are critically evaluated, with recommendations for designing or redesigning a performance management system. The report also explores different perspectives on employment relations, the roles of actors in improving these relations, and the changing nature of employment. Finally, it discusses mechanisms for employee voice and participation, providing recommendations for Sainsbury's to enhance these aspects of its SHRM strategy. The analysis aims to provide insights into how Sainsbury's can optimize its HR practices to achieve its business goals effectively.

Strategic Human
Resources Management

Executive Summary
Strategic HRM is process of managing the workforce in the entity so that each of the
required task can be performed in desire manner for attaining the targets. Strategic human
resource management must prepare different strategies to motive their employees so that they
can perform their task in a systematic manner. The report is conducted upon Sainsbury which a
retail sector industry and it will be analyzed that how HR strategies are being used within the
entity. The major importance in the project has be given upon the employees that how they ca
work effectively by enhancing their efficiency.

Table of Contents
INTRODUCTION...........................................................................................................................................4
TASK 1..........................................................................................................................................................5
Explain the relationship between business strategy and the human resource strategy..........................5
Critically evaluate theoretical basis and models of SHRM.......................................................................6
Explain, critically analyse and inform strategic perspectives of Best fit/Contingency, Best
Practice/Universalist and Resource Based View, (RBV)...........................................................................6
Critically evaluate the specific HR practices of Performance Management and Reward.........................7
Make recommendations to propose how your client could design/re-design a performance
management system...............................................................................................................................8
TASK2..........................................................................................................................................................9
Different Perspectives of Employment relations.....................................................................................9
Roles of the actors in improving Employment Relationship..................................................................10
Changing nature of employment relations............................................................................................10
Mechanisms of employee voice & employee participation & Recommendations................................11
CONCLUSION.............................................................................................................................................12
REFERENCES..............................................................................................................................................13

INTRODUCTION
Strategic human resource management is explained as the process which is implied in the
entity for the purpose of developing healthy relation among the employees so that effective
results can be obtained. It is among the necessary process for entity because it always allows to
being innovative ideas and plans due to which employees can give their best at the time of
performing their duty. It is essential that management should be able to provide better
opportunity to each of the employees so that organisational goals can be accomplished easily.
Sainsbury is the chose entity for this project which is a multinational retail sector industry. The
main reason behind the success of the company is their way of dealing within customer to
provide each of the services in an effective manner. Firstly, relation between business strategy
and human resource strategy will be explained in detailed. There are different types of theories
which will be included within the project along with proper evaluation will be done upon HR
practices. In addition to this, some of the other topics such as employee relation, roles of actors
and number of other topics will be included within the project.

TASK 1
Explain the relationship between business strategy and the human resource strategy
Business Strategy can be explained as the process where different strategies are being
formed by management in order to accomplish their goals and target within the specified time
period. On the other side, human resource strategy is equally important as it helps to hire the
right candidate by forming proper strategy due to which entity seems to be capable of performing
any of the task in any of the situation. Discussing it in detail, business strategy and human
resource strategy has a huge importance as it describes that how any of the work needs to done
and enable to hire the right talent which can allow to accomplish the goals which company is
willing to accomplish. In context of Sainsbury, if their company will be able to create effective
linkage between business strategy and Human resource strategy then company can easily
accomplish goals their objectives (Decramer, Smolders and Vanderstraeten, 2013). If company
will be able to implement SHRM practices in an appropriate manner then manager of Sainsbury
will create higher opportunity for themselves. This opportunity will allow them to identify that
how they are needed to work and what types of candidate are required by the organization for
giving tough competition to rivalry firms. Both business strategy and human resource strategy
has an relation because human resource strategy are always formed after preparing the business
strategy which means company HR department can easily hire the type of talent which they want
for attaining their goals.
In addition, organization like Sainsbury can easily develop effective communication
platform within the entity if they have strong support form business strategy and HR strategy.
Even these types of strategy can easily allow to create the relation which an entity should have
for attaining their targets on specified time period. The relation between both of this department
is important because it allows to develop positive working environment which means trust
among the employees will be developed due to which employees can perform their task easily.
Also, sustain the employee is necessary and it can be easily done with these types of strategy.
Vertical alignment and Horizontal integration: Both, vertical alignment and
Horizontal integrations are the part of business strategy through which company like Sainsbury
can be highly benefitted. This type of strategy is also effective because it gives the idea that how
an entity can increase their market share within the short time period. Discussing it in detail,

vertical alignment is connected within acquisition process of other organization which are well
establish in the market in recent time period or before their incorporation process. On the other
side, horizontal integration allows the business entity to acquire the similar form of organization
which is found within the same industry (Keupp, Palmié and Gassmann, 2012). Looking at the
situation, it is necessary for the employees of Sainsbury that they should be able to manage the
employees who are capable of reducing the overall burden at the time of attaining the targets.
Critically evaluate theoretical basis and models of SHRM
It is essential to understand for any of the manager and entity to work in the manner due to which they
can attain their goals. For effective results, different types of theories as well as model of strategic human
resources can be easily considered by the company like Sainsbury. Some of the theories which can be
considered by the company are discussed below:
Human Capital Theory: Any of the entity which uses this type of theory focuses on
specific type of knowledge along with experience about the company which is essential for
company like Sainsbury. Also, for the employees because it will provide them the way to
develop a healthy relation among the workers through which goals can be attained easily.
Ulrich Model: It is also the model which can be easily considered by the entity like
Sainsbury as this model mainly focuses upon the aim of a company and how any of the work
needs to be performed. Also, day to day operational activity can be managed easily which can
the whole scenario for attaining the target.
In short, different models and theory can be effective for the business entity for attaining
the goals as it is effective in forming strategy for human resource management. The decision
according to these models are being taken on the basis of situation which is quite important in
current scenario.
Explain, critically analyse and inform strategic perspectives of Best fit/Contingency, Best
Practice/Universalist and Resource Based View, (RBV)
It is necessary for any of the entity to ensure that they are working only according to the
strategy which is suitable for them for attaining the goals. In context of Sainsbury, the best
strategy which can be beneficial for them is contingency approach whereas best form of practice
is universal approach (Jenkins and Williamson, 2015). Sainsbury should focus best suitable
approach since this strategy is effective for the organisation since this HR strategy is related to a

market climate. This further encourages the exploration of a relation among the organizational
strategy as well as its HR strategy which can easily ensure vertical integration into corporate
strategy & policies including HRM practises. Best practise may not be all that successful in
taking edge over competitors, since it stresses the implementation of any strategy that can lead to
improved corporate performance, higher output, reduced levels of absenteeism, etc.
Even farther, there is now a shift toward that resource-based approach wherein Hr
departments concentrate on personnel skills and individuality, because this can only can provide
business with a competitive edge. Through this, Sainsbury will create a pool of qualified human
capital that can improve overall organisational effectiveness.
Critically evaluate the specific HR practices of Performance Management and Reward
In any of the entity, it is essential to understand that employees plays the vital role in
accomplishing the goals and target. Looking at the situation, it is essential for the management
that they should be able to focus that how an performance of employees can be improved with
the support of HR practices. In context of Sainsbury, there are some of the practices which
company follows for the purpose of improving the overall performance of the company. Those
practices are:
Peer review- It is one of the approaches which is used by many of the entity for identifying
the performance level of employees (Zehir, Gurol, Karaboga and Kole, 2016). Under this
practice, organization like Sainsbury gives opportunity to co-worker where they can praise other
colleagues on the basis of their performance within the entity and in that particular manner,
performance can be further improved if necessary.
Frequent performance feedback- It is among the practice which can be the most effective
one as it is analyzed on a regular interval that whether employee is capable of attaining their
goals or not as per the requirement of a company. The approach of obtaining the feedback is also
effective because it certainly ensures that performance of each employees can be improved
whenever it is necessary. In addition, this also do not allow to increase the pressure upon
employees which is quite important in current scenario.

In present scenario, entity like Sainsbury uses number of HR practices for the purpose of
giving rewards to the employees so that they can be motivated. Some of those practice for
rewards are listed below:
 Performance based pay- In order to motivate the employees within the company,
Sainsbury focuses on performance-based pay. It means that employees will receive their
rewards on the basis of efforts given by them towards the organization (Pawlak, 2017).
 Reward for attaining new skill- It is essential for any of the entity that their employees
bring new skills on a daily basis so that company can easily attain their targets. Here,
management always rewards their employees whenever their skills can improve or they
are able to learn new skills as it gives more flexibility to the company.
Make recommendations to propose how your client could design/re-design a performance
management system
It is essential for any of the entity to focus upon the performance management system
because it is one of the effective way through which they can easily allow themselves to attain
the goals and target. This will allow Sainsbury to bring improvement within the skills and
capabilities of the employees. Below, resigned performance management system for Sainsbury
has been prepared:
 Firstly, it is essential to identify about the goals and the objective of the company.
 SMART objective must be prepared so that in accordance to that role and responsibility
can be delegated (Noe and et. al., 2017).
 There are different situation where problem arises and in order to resolve those problem,
it is necessary that entity must focus towards working upon feedback so that any of issues
can be solved out.
 At last, the past achievement must be analyzed for identifying the weaknesses so that
further improvement can be brought easily.

TASK2
Different Perspectives of Employment relations
In any of the entity, it is essential to understand that each of the work must be performed
in a system manner for the purpose of growth of the company. In order to attain effective relation
employment relation always plays the vital role for attaining the targets. Employment relations
can be explained as process which majorly focuses upon the relations which is developed
between employer and employee. It is always necessary to understand that if an employer and
employee has effective relations then company can easily attain their goals and target but on the
other side, if they do not have effective relation, then company will have to suffer because
effective coordination cannot be developed at any of the stage (Bailey, Mankin, Kelliher and
Garavan, 2018). In addition, if an entity has better employment relation then employees can learn
number of things on a daily basis which can be helpful at the time of performing any of the task.
Mainly, there are three different types of employment relationship which are discussed below in
detail:
Unitary: It is one of the most important aspects where it is analyzed that what are the
efforts of employee as well as of manager for accomplishing the target. Here, it is necessary for
the employees of Sainsbury, to identify about the problem or issues which they have been facing
while performing their task. It is the duty of manager to analyze the problem and according to
that proper solutions must be provided.
Pluralist: Talking about the business entity like Sainsbury, there are different types of
functional department within the company which has been working effective for attaining the
goals. Also, different types of problem may occur while performing any of the task which means
communication tool can be effective for discussing the issue being faced by the organization.
Here, it is necessary for management team to ensure about different activities which needed to be
performed and, in that accordance, team should be formed so that proper communication can be
done. Whereas Trade Union is also there where they need to resolve any of the dispute which
occurs between the employees or between employer and employee (Fahim, 2018).
Marxist: It is also among the important approach where it is essential to understand that
this mainly focuses upon the development of healthy relation in context of the society. In context

of Sainsbury, this approach provides help in dealing within different types of socio-economic
dimension. If in case, there is any sort of problem then through disputes are also resolved in a
systematic manner.
Roles of the actors in improving Employment Relationship
In an organization, employment relations has a huge role and looking at this particular
circumstances, it is essential to understand that how healthy relations can be developed. Overall,
there are three different parties which can easily contribute in the development process of
relation between employer and employee which has been discussed below:
Employer: In an entity, employer are the one who holds the supreme power where each
of the work must be done in accordance to attain the goals. Here, it is necessary for the business
entity like Sainsbury, that their employees must be able to provide proper facilities and working
environment to the employees (McClean and Collins, 2019). On a regular basis, rewards bonuses
should be given to the employees so that each of the work can be performed in a systematic
manner.
Employees: These are the person in an organization whose contribution in performing
any of the work plays the vital role. It is necessary for the employees that for the purpose of
maintaining healthy relation with the employer of Sainsbury, they must work in accordance to
the requirement of a company. This can easily allow to develop effective relations.
Government: Employment relations should be performed in a systematic manner where
it is necessary that each of the law formed by the government must be considered. Some of the
laws and regulations which must be considered by the government are related with Minimum
Wages Act, Discrimination act and many more.
Changing nature of employment relations
The trading environment would be which were different companies’ function, which is
quite diverse as well as fully evolving. The service employee has a variety of issues barriers to
the provision of the business operations. Where there are distinct historical backgrounds, it is
likely that a person can face difficulty in expressing and collaborating with one another.
Throughout the past, certain concerns also occurred as a result of plant and equipment, that have
led to numerous issues, including the ineffectiveness of interaction and the supervision of

company staff. Employment relations are also associated with changes in employee performance,
labour processing, appraisal systems and adjustments in the working culture of the business.
Mechanisms of employee voice & employee participation & Recommendations
Employee’s participation within the business activity always plays the vital role and it is
necessary their involvement within day to day operational activity is crucial. In present situation,
it has been found that company mainly tries to focus upon the business activity where they even
give opportunity to their workforce to show their involvement within the business decision. In
context of Sainsbury, there are number of situation where their leaders like to take the help from
employees that how they can perform effective so that effective results can be obtained. It is
essential for the company that employee (Storey, Ulrich and Wright, 2019). It is equally
important that obtaining timely feedback from the employees can allow the entity to enhance the
performance of each employees so that targets can be accomplished easily. Overall, it is
recommended, that company like Sainsbury, must provide proper working condition to their
employees and must provide them the opportunity that how they are needed to work in any of the
situation so that problem within the organization do not occur in any of the situation.

CONCLUSION
From the above discussion, it can be easily concluded that strategic human resource
management is quite essential for the entity because it can easily analyse about the process which
company needs to follow for attaining the targets. The relation between business strategy and
human resource strategy is huge as if both of them can work effectively then goals can be
obtained easily. The major focus of the human resource management should be based upon the
improvement of employee’s performance which is quite important in current scenario. There are
different actors within the organisation that can play the vital role in attaining the goals of a
company.