Strategic HRM Report: Analyzing Woolworths Supermarket's HR Issues

This report provides a comprehensive analysis of the strategic human resource management (HRM) practices at Woolworths Supermarket, focusing on key issues and potential solutions. It begins by identifying critical HR challenges, including employee retention, recruitment difficulties, productivity concerns, and deficiencies in training and development programs. The report then proposes strategic changes, such as implementing a value chain model to enhance the effectiveness of the HR department. A detailed plan for the development and improvement of strategic HRM is presented, including specific actions, timeframes, and measures of success. Furthermore, the report addresses key issues related to strategic international HRM (IHRM) and differentiates between home and international HRM practices. Finally, the report offers recommendations on the top three identified issues, particularly if the company aims to expand its market. The analysis underscores the importance of aligning HRM strategies with business objectives to improve employee satisfaction, retention, and overall organizational performance.

STRATEGIC HUMAN
RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Analysis the key human resource issues............................................................................1
2. Strategies changes the organisation should implement :....................................................2
3. A detailed plan for the development or improvement of strategic HRM in priority order
with action time frames and measures of success..................................................................4
4. Key issues related to strategic IHRM.................................................................................6
5. Difference between home and international HRM.............................................................7
6. Recommendations on the top three identified issues if the company expand their market10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
International Human resource Management means a group of operational activities of human
resource management at international level. In this the human resource management of the
company aims to achieve all the objectives of the company as well as the competitive advantages
over the rival firms at both nationals and international level. Woolworths supermarket is among
the biggest companies of the Australia. The company was founded On 22 September 1924. The
company practice their business in retail sector. The company have their retail stores in Australia
and New Zealand. Woolworths Supermarket has generate revenue of 55.669 Australian dollars.
The company has about 1000 stores in different location of the countries. The company has
around 11500 employees working for them. The supermarket company has more that 37% of the
market share. This file will discuss about the the HR issues of Woolworths supermarket
internationally as well as the changes that should be made to solve the HR related problems. This
will also highlight about the plan for development of HRM strategies and the key issues in
strategic International Human Resource Management. The report will also discuss about the key
difference between domestic HRM. Lastly the report will highlight the recommendations on the
identified issues.
MAIN BODY
1. Analysis the key human resource issues
The main problems Woolworths supermarket is facing because of Human Resource
Management are as follows :
Retention : Employee retention means the capacity of a company to to retain their employees
for a long time. The employee retention is based on the environment of the company, policies of
the company, and the salary and incentives of the employees. The Human resource department of
the company has provide the proper fusion of these three to satisfy the employees. The employee
turnover ratio of Woolworths supermarket is very high. The company has to hire new employees
in very short period of time. The low retention rate of the company decrease their profitability as
there is huge cost involve in recruitment and selection program of the employees. The company
has to organise training and development programs for the new employees to train them
according to their work standard and policies(Farndale and Brewster, 2019).
Recruitment : The recruitment means finding talents with proper combination of skills,
motivation and personality. The human resource department have to select few best candidates
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out of many candidates applying for job. The recruitment of employees can be done internally or
externally. The recruitment process should be done in a proper and effective manner because it
consumer lot of time of the company as well as lot of money. The HR department need to review
every application and CV. The Human resource department of Woolworths have to organise
recruitment program in very short period because of their high employee turnover ratio. The HR
department need go through every CV to short list some selected candidates. Just by short-listing
candidates through CV leads to loss of potentials candidates suitable for job(Elkoussa and
Williams, 2019).
Productivity : The human resource management should have a proper knowledge about the
productivity of the employees this which help the HR department to ensure that the company is
operating efficiently. If the productivity of the employees is low the HR department need to
identify the problem behind the poor performance. After identifying the problems the department
need to come up with a solution. The human resource department of Woolworths is not hiring
the candidates in effective way the company is focusing more on cost cutting rather than hiring a
right person at right place. The improper hiring of the Woolworths supermarket had decrease the
productivity of the company
Training and development : Training and development programs are the most essential factor
that helps the company to increase the efficiency of the employees. The HR department need to
do lot of research before demanding for a training programs. The things department need to
consider are innovation, market situations, employees knowledge regarding the field and many
more. This consumer a lot of time of the company. After going through all the factors the HR
department need to make sure that everyone who is sent to the training programs have gain
knowledge about the subject. The HR department of Woolworths have to organise a lot of
training programs as the hire a lot of candidates in a short period of time. After recruitment and
selection process of the candidates. The candidates are sent to attend training programs and gain
knowledge and improve their skills about a particular subject. Organising a lot of training
program for new employees decrease the profit margin of the company(Suder and et.al., 2019).
2. Strategies changes the organisation should implement :
The Woolworths Supermarket should apply Value chain model to increase the effectiveness of
Human Resource department.
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Value chain model :
The Value chain model in human resource is among the most famous method to increase the
effectiveness of Human Resource department of the company. According to the value chain
model, every activity of Human resource management is measured and divided into two parts,
which are HRM activities and HRM outcomes(Sparrow, 2018).
HRM activities : HRM activities are those activities which are regularly perform by the HR
team of the company such as Recruitment, training, compensation. All these HR activities are
measured by the HR metrics. HR metrics determines the cost and time take of hiring and training
process.
HRM outcomes : The HRM outcome includes all the goals of the company is trying to achieve
with HR activities. The company provide employment to achieve certain outcomes which
include the satisfaction of the employees, retention, motivation and many more.
If the company is just focusing on the HRM activities to decrease the costs but if the
company started focusing on HRM outcomes it will help the company to decease their HRM
problems and effectively achieve their goals. The HR department of the company can spend
more time in decision making regarding the hiring of candidates. The department should focus
more on getting the right person at right place. The main focus of the Department should be
measuring the success of the outcomes not the activities. When outcomes of the HRM are good it
will lead increase the performance of activities too. When the result of both activities and
outcomes is good. It will increase the performance of the company, which means the HR
department had hired a right person at right place and organise right training program for the
employees(Prikshat and Kumar, 2018).
Woolworths should use value chain method to increase the effectiveness of their HR
department. The company is currently focusing on the cost cutting in recruitment and selection
process, as well as cost cutting on their training and development programs, this poor selection
of candidates and not providing them proper training and development programs lead to increase
in employee turnover of the company. If the company start focusing on the increase the job
satisfaction of the employees, retention and motivation and many more, this will increase the
effectiveness of human resource management of Woolworths Supermarket. This will help the
company solve all the major issues the company is facing due to poor human resource
management in the company. If the company practice the human resource management activities
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properly it will ultimately to increase in the productivity of the employees as well as the
profitability of the company(Farndale and Brewster, 2019.
3. A detailed plan for the development or improvement of strategic HRM in priority order with
action time frames and measures of success
Strategic Human Resource Management plan
Function Actions Time frame Measurement
Reduced Turnover The company should
focus more on provide
satisfaction to the
employees.
1 year Employee retention
will be tracked with
number of or
percentage of
employees who are
retained after
recruitment over a
specified period of
time. This will be
dividing the current
number of employed
individuals by number
of employees at start
of measurement period
multiplied by 100
The company should
provide proper training
and development
programs to their
employees as the need of
company, this will
increase the retention rate
of the company.
The company should
increase the incentives
programs as well as
create some policies
which are favourable for
the employees,
Growth in market
share
The company should
bring innovation in the
product or modify the
existing product.
3 – 4 months Market share of the
company will be
measure by the total
percentage of existing
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companies sales in the
whole market with the
total percentage of
sales of the company
in the whole market
after implementation
of the strategies.
The company should
increase the interaction
and engagement with
their customers
The company should
implement more effective
promotions and
distribution strategies
Improve employee
motivation
The company should
introduces reward which
are more realistic and
achievable.
5 - 6 months To measure the
motivation of the
employees the
company need to
consider factors like
performance of the
employee, turnover
ratio of the company
as well as the effects
that employees are
putting to achieve the
target.
The managers and senior
employees should guide
and help the junior
workers in the company.
The company should
praise the employees in
front of other employees
that motivates all the
employees who had
achieve the target and the
one who failed to
achieve.
Growth in
profitability
The company can
purchase the raw material
and other machine and
stuff in more efficient and
effective manner.
5 – 6 months These impact of these
actions will be
measure by comparing
the existing profit
margin per product
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with the profit margin
per product after
taking these actions.
The company should also
focus on expansion of
their market this
The company should
improve their production
machines and boost the
productivity of their
employees.
4. Key issues related to strategic IHRM
In international HRM strategy the Woolworth company faces many challenges to expand
in the business in U.S. The measure key issues that HR is facing are management of performance
of wool-worths employees, training and development of the employees, planning the
workforce,etc. In relation to expand the business in USA market.
 Labour laws in USA changes due to the labour tax imposed on company which tends to
increase regularly by the government it impact on the company aspects to change the
strategies according to the labour law in USA.
 The company faces the issues related to the training and development as the company
needs to invest more for the development of skills in the employees to get efficiency in
the work.
 In international HRM the measure key issues are related to innovation that company
needs to adopt due to this the technological changes are consistently happening which
challenges the employees to understand the operating functions in the technology.
 Political issues are the major issues faced by the company, the stability of political party
causes less effects on the company to change its strategic planning and vice versa.
 Trade union in USA works to resolve the issues regarding the labour welfare hence the
company needs to work according to the labour union demands without harming the
company rules and regulations.
 Visa policies affects the company strategies as the country follows strict rules which
makes the tough for migrant to enter in market of USA.
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 Cultural issues that HR faces are to create effectiveness in the workplace, flexible rules
and regulations, and help everyone to understand the work culture as the trends in the
market changes rapidly which directly impact on the company strategic aspects.
 Municipal law affects the company strategic aspects by taking special care towards the
management of its waste material by Woolworth supermarket, taking responsibility and
improving the market. (Collings and Isichei, 2018).
There are many challenges which are associated with IHRM like that of labour laws,
municipal law, cultural issues, trade unions, political issues and visa issues.
Labour laws- This includes change into labour law which impact IHRM and is termed to as
challenge for company.
Municipal law- Municipal law includes payment of tax and rents by company to municipal
offices that if increase is regarded to as challenge for company.
Cultural issues- Variety of cultural within workplace will also be regarded to as challenge for
them.
Recommendation
ISSUES OVERCOME ISSUES
Labour laws Woolworths can follow labour laws by
providing adequate wages to labour according
to the law of US.
Political issues HR of Woolsworth can overcome the political
issues by maintaining the relation with political
leaders so that they can help the company to
grow in future.
Visa policies By consulting the US embassy the company
can get special job visa for its employees.
5. Difference between home and international HRM.
BASIS Australia USA
TRAINING PRACTICES  In Australia company
management of
 In USA HRM the
company manages the
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employees are within
the country level. The
training increases the
job experience and
promote the real
learning within the
employees of the
company. The
reflection faced by the
company is that it
needs to put more
efforts on providing
training to its
employees with effect
the expenses of the
company will also
increase.
employee of the home
country, host country
and the employee of
third party. Some of
the issues are cyber
breach, violence at the
work place, handling
issue related to
employee mental
health and well being.
The reflection
Woolworth faces in
difficulty in the
management and
typical management
system with lots of
hectic management
operations which
reduces the
productivity of
company.
RECRUITMENT  In Australia the
recruitment techniques
are different from USA
as it uses the limited
human resources with
in the country. The
company mainly
attracts candidates
through internal
recruitment less uses
 management basis are
high-level. The
management activities
on high level puts
pressure on the HR
increases. Reflection
on the company is that
it migrant candidate
from different
countries which helps
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social media and print
advancement
techniques.
the company to skill
employee for the
company.
COMPLICATIONS  Presence of
complication in the
home country are less.
Reflection for the
company is to smooth
functioning of the
company on the
Australia
level(Prikshat and
Kumar, 2018).
 Complication in the
IHRM are
competitively higher
then the Australia
country. the reflection
for Woolworth in
IHRM is to understand
arising of
complications and try
to reduce them at some
extent.
RETENTION OF
POLICIES
 Australia HRM less
influences retention of
policies then US
HRM. The reflection to
the company is that it
will data retention
according to the act
followed in the
Australia.
 In IHRM the retention
of policies influence
more on the
operational
management at US
level. The data
retention are
describing the
company policies and
it is controversial at
higher level then
Australia.
According to the hofstede's model individualisms is more as they are more dependent on
the society as the employee are more self reliant and they display initiative. Masculinity are is to
motivate employees by hiring and giving promotions at the work place. The issues related to
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conflicts are resolved by individuals. Power distance is less as both the employees and
management consult and share information frequently.
In Australia the best practices is training and development in which the best fit practice is
learning program which helps to initiate the key significance for the wool-worths. The best
practise in USA is recruitment as it migrants candidate from outside its country. The best fit
practice used is used as social media recruitment attracts higher candidates.
6. Recommendations on the top three identified issues if the company expand their market
Woolworths supermarket is facing many problems and will face many problems in expanding
their business USA market. The top three problem of Woolworths in expanding their market are
Recruitment, training and development and employee legislation. These are some strategies
which can help the company to overcome their problems(Sparrow, 2018).
The company can recruit their employees which has already worked in the similar sector or
which are having a deep knowledge about the field, it will reduce the cost of the training as well
as increase the performance of the company. The company can need to hire some legal adviser
that help the company to develop the policies of the company which are following all the laws of
the country as well as it is not violating any acts like Health and Safety act, employment act and
many more. The company need to provide training program according to the market situations of
the United States of America which will be difficult for the company so the Woolworths can hire
other company to provide training and development program to their employees according to the
need of market. The company can also tie-up with recruitment firm which will help the company
to easily recruitment the potentials candidates(Suder and et.al., 2019).
CONCLUSION
From the above report is has been summaries that Human resource management plays and
important role in growth and development of the business. This report has highlighted about the
key human resource issues faced by Woolworths Supermarket which include retention,
recruitment, performance and training as well as the strategies changes the organisation should
implement. The report has also discuss about the detailed plan for the development or
improvement of strategic HRM and key issues related to strategic IHRM of Woolworths. This
report will discuss about the Difference between domestic and international HRM. Lastly the
report has highlighted about the recommendations on the top three identified issues if the
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company expand their market which are recruitment, training and development and employee
legislation
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REFERENCES
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talent management, alternative forms of international assignments and non-employees
into the discussion. The International Journal of Human Resource Management.29(1).
pp.165-187.
Cooke, FL & et.al 2019. How far has international HRM travelled? A systematic review of
literature on multinational corporations (2000–2014).Human Resource Management
Review. 29(1). pp.59-75.
Davila, A & Elvira, MM 2018. 21. Revisiting the Latin American HRM model. Handbook of
Research on Comparative Human Resource Management, p.393.
Elkoussa, H & Williams, J 2019. Managing Small Business Human Resources: An International
ApproacSacchetto, D., Cretu, O. and Morrison, C., 2018. International migration,
labour mobility and HRM.
Farndale, E & Brewster, C 2019. Comparative HRM. The SAGE Handbook of Human Resource
Management. p.99.
Prikshat, V & Kumar, S 2018. The roles, competencies and skills of hrm professionals in indian
organisations. Equality, diversity and inclusion: an international journal.37(4).
Sparrow, P 2018. The psychological contract within the international and comparative HRM
literature. In Handbook of Research on Comparative Human Resource Management.
Edward Elgar Publishing.
Suder, G & et.al., 2019. Mind the gap: the role of HRM in creating, capturing and leveraging
rare knowledge in hostile environments. The International Journal of Human Resource
Management.30(11). pp.1794-1821.
ONLINE
IHRM verses domestic HRM. 2019. [online]. available
through<https://www.tutorialspoint.com/human_resource_management/human_resource_manag
ement_international>
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