Strategic Human Resource Planning for Woolworths Group, Australia

This report provides a comprehensive analysis of the strategic human resource planning practices of the Woolworths Group of Australia. It begins with an introduction to the company and its industry, followed by an examination of the factors influencing workforce planning, including organizational structure, growth cycles, environmental uncertainties, and the labor market. The report details the strategic workforce planning process employed by Woolworths, encompassing environmental analysis, manpower demand identification, supply analysis, and the matching of demand with supply. It also explores relevant theories and models, such as the resource-based theory and organizational life cycle theory, and their impact on Woolworths' HR planning. The report highlights the company's employee numbers from 2017 to 2019, concluding with recommendations for enhancing strategic workforce planning within the organization. This report aims to provide a thorough understanding of the strategic workforce planning approach of the Woolworths Group and provides recommendations for future improvements.

9/24/2019
Strategic Human Resource Planning
With reference to Woolworth Group of Australia

STRATEGIC HUMAN RESOURCE PLANNING
Contents
Introduction................................................................................................................................2
Factors Affecting Strategic Workforce Planning in Woolworths..............................................4
Process of Strategic Workforce Planning in Woolworths..........................................................5
Theories and Models of Strategic Workforce Planning affecting Woolworths.........................7
Conclusion and Recommendations for Strategic Workforce Planning for Woolworths...........8
Bibliography.............................................................................................................................10
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STRATEGIC HUMAN RESOURCE PLANNING
Introduction
Human resources are the core assets of any company as they have the capacity to deal with
other assets of the company. The objective of human resources in an organization is to
provide the best manpower to the organization as well as managing them in most productive
manner. In the proper management of manpower, the first step is their strategic planning.
Every organization needed to plan from before only how much employees for each division
and unit they needed and of what qualities and qualification (M. RAVI BABU & ASGHAR
EIMANI, 2014). Human resource planning is a whole process that accumulates various steps.
It starts from searching of internal environment of the organization, identification of demand
of human resources in the company then identifying internal as well as external ways of
employee supply. At the final stage the required employees are placed on the respective jobs
by following the process of recruitment. In this assignment an attempt is made to describe
and demonstrate the strategic human resource planning of Woolworths Group of Australia
(Zidan, 2011).
Woolworths Group Limited is a significant Australian corporation with significant retail
interest across Australia and New Zealand. Percy Christmas and many others established the
organization in 1924 (Woolworths Group, 2019). It is located in Australia's New South Wales
as well as listed as an ASX business. It serves Australia and New Zealand predominantly. It
is Australia's second biggest revenue-based corporation and New Zealand's second
biggest. Furthermore, Woolworths Group is Australia's biggest takeaway liquor retailer,
Australia's largest hotel and gaming poker machine operator, and was the world's 19th
biggest retailer. In 2018, the business has about 205,000 staff. The strategic human resource
scheduling in Woolworth Group is evaluated in this task as they have a big amount of staff
who are continuously working to improve their organization.
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STRATEGIC HUMAN RESOURCE PLANNING
Source: The Team of Woolworth Group of Australia (Annual Report)
The company’s need a proper planning program when they are looking forward to be
competitive in the market for the long run (Sunghoon Kim, et al., 2018). The employee is
considered backbone of the company and they have to be efficient in order to provide strong
base to various operations of the company. in this assignment in order to analyze the strategic
plan of Woolworths Group of Australia, an attempt is made by analyzing factors affecting
planning mechanism, identifying and analyzing the process of planning, analyzing various
models and theories strategic work force planning and ultimately providing conclusion and
recommendations for effective strategic human resources of the Woolworths Group of
Australia.
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STRATEGIC HUMAN RESOURCE PLANNING
Factors Affecting Strategic Workforce Planning in Woolworths
Human resource managing a tool that defines the current and future human capital needs of
an organization in order to achieve its goals. HR planning should cater as a link
among human resource control and the overall strategic gateway of a company. The aging
workforce in some Western countries, as well as increasing requirements for skilled
employees in developing economies, have highlighted the importance of effective human
resource management. It's the method to ensure that an organization's human resource
demands are recognized and plans are created to meet those demands (Shih Yung Chou &
Charles Ramser, 2019). The technique includes setting up a management brand absence
management strategy, retention strategy, flexibility plan, talent planning strategy,
recruitment, and selection plan.
The most carefully designed human resource strategies can be affected by internal and
external modifications every moment, so forecasting, as well as flexibility, are critical to
effective planning as well as adaptation as required. To do this, Australia's Woolworths
group's HR executives need to be conscious of what's happening within the business, the
sector, and the wider market in relation to the variables that affect change (Woolworths
Group, 2019). There are many variables that need to be considered by the manager of human
resources and the management of Australia's Woolworths Group to effectively and efficiently
manage their human resources (Herman Aguinis, et al., 2012). Many variables influence
human resource planning (HRP). The most significant of these are organizational form and
strategy, environmental uncertainties, cycles and planning of organizational development,
time horizons, labor market, sort and quality of data predicted, etc. The following lines
describe these factors:
a) Type and Strategy of Organization
Each moment, internal as well as external changes can affect the carefully designed human
resource plans, so forecasting with flexibility is critical to efficient planning as well as
adoption as necessary. For other retail organizations, the Woolworths group of Australia
organizational structure is more complicated in this regard as it is a very large organization.
Human resource scheduling can require many contingencies, reflecting different
circumstances, making the plan flexible and adaptable (Karen Becker, et al., 2011).
b) Organizational Growth Cycles and Planning
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STRATEGIC HUMAN RESOURCE PLANNING
The part of development of an organization may have a major effect on human
resource management. Small organizations may not have staff planning at the embryonic
stage. The necessity for planning is sensed when the organization enters the development
stage. HR forecasting becomes crucial in the Woolworths group in Australia. Internal
growth of people is also beginning to receive attention to maintain with growth (Mary Elector
Odukah, 2016).
c) Environmental Uncertainties
HR managers rarely have the opportunity of work in a stable as well as predictable
environment. Political, economic and social changes affect all organizations. Personnel
planners cope with environmental uncertainties by closely formulating strategies and
programs for Woolworths Group Australia's recruitment, placement, and training and growth.
d) Time Horizons
Another important factor affecting personnel planning is the time factor. On a time, factor, as
the functioning environment itself can be related to factors, a strategy never be too long. On
the one hand, the Woolworth Group has short-term schemes that cover 6 months to a year.
On the other hand, there are long-term schedules that spread around three to twenty years.
The exact time span, though, depends on the intensity of uncertainty which prevails in an
organization's environment (M. RAVI BABU & ASGHAR EIMANI, 2014).
e) Labor Market
The labor market includes individuals with skills and abilities that can be exploited whenever
and when the need arises. Increasing awareness of properly qualified human resources in the
fields of education, professional and technical institutions is always accessible on the market.
This factor enables Australia's Woolworths group to effectively acquire fresh and productive
staff (Larry F. Moore & P. Devereaux Jennings, 2017).
It is advised to Woolworths Group of Australia to consider all of the above-mentioned factors
while planning and organization their human resources and efficient manner.
Process of Strategic Workforce Planning in Woolworths
Human resources are an organization's most significant asset. The significant organizational
role is human resource planning. It ensures that the right type of people is trained and
motivated to do the right kind of work at the right time, in the right number, at the right time
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STRATEGIC HUMAN RESOURCE PLANNING
and place, there is generally a shortage of suitable people. Australia's Woolworths group can
assess its demands for manpower and then find out all the sources where the needs will be
met using a fixed HR scheduling procedure (Greenberg, J., 2012). If there is no necessary
manpower, the job will suffer. The process of strategic human resource planning of
Woolworths group of Australia is described in following lines:
a) Environmental Analysis
It includes the analysis of internal and external environment of Woolworths Group in order to
identify the requirement of manpower needed by each unit and division of the organization.
The analysis of internal environment is the major factor in this as various job of the
organization can be analysed within this step.
b) Identifying the Manpower Demand
In this step after analysing the environment of the Woolworth organization the next step is to
identify various jobs in which manpower is needed. The human resource planning team of
Woolworth must identify various jobs which needed employees and of what qualification or
specifications (Jamie A.Gruman & Alan M.Saks, 2011).
c) Analysing the Manpower Supply
the demand of manpower in the Woolworth organization is identified by HR teams in
previous step. In this step the team search methods of supply of manpower, means the ways
from which required employees can be haired. The means include internal and external
suppling of manpower. In internal means the employees are just transferred to required
placed or promoted. In external means required employees are appointed from external
means.
d) Matching the Demand with Supply of Manpower
The HR planning team of Woolworth Group analysed the environment, identified the
employee demand and supply source, now the step comes is to managing the gap which is
identified by analysis of demand and supply of manpower of the organization (Houghton,
J.D., Wu, J., Godwin, J.L., Neck, C.P. a, 2012).
e) Appointment
Once the HR managers of the Woolworth Group identify the right number of employees
needed by them in particular place with right knowledge and skills, the final appointment
process of manpower take places in the organization. According to the annual report of the
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STRATEGIC HUMAN RESOURCE PLANNING
Woolworth Group of Australia in 2017, 2018 and 2019, the total number of employees after
specific appointments are given bellow:
Year Total Employees
(Approximately)
2017 202,000
2018 201,522
2019 196,000
Year 2017 Year 2018 Year 2019
193000
194000
195000
196000
197000
198000
199000
200000
201000
202000
203000
Total Employee (Approximately)
Total Employee (Approximately)
The table and chart are showing the number of employees decreased from 2017 to 2019 in the
company, the reason can be ineffective manpower planning of the Woolworth Group as well
as less employee empowerment opportunities.
Theories and Models of Strategic Workforce Planning affecting Woolworths
The lack in the manpower or the reduction in the manpower of Woolworth organization is a
major factor that must be considered by the company. It is already stated that the human
resources are the core assets of any company they needed to be monitored and managed in an
effective manner (Gareth Edwards, et al., 2015). The theories and various models of human
resource planning can help Woolworth organization in retaining their employees for a long
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STRATEGIC HUMAN RESOURCE PLANNING
run as well as adopting strategic human resource planning process in their organization.
There are many theories which can affect the HR planning process of any organization such
as resource-based theory, institutional theory, organizational life cycle theory, strategic
contingency theory, etc. these theories are not directly linked to HR planning process in an
organization, however affected by them indirectly (Cheri Ostroff & David E. Bowen, 2015).
The most favored theory of HR planning in the Woolworth organization is the resource-based
theory, in which the concentration lies on the resources of the organization. The company
take various measures in enhancing and managing the productive resources of the company.
In the similar way with the help of resource-based theory Woolworth organization can take
corrective measures to bring efficiency in their HR planning and managing program. The
company can take some measures to rectify their current situation. The theory was developed
by Porter in 1980 and is famous since then. It has been used by many companies in managing
their resources especially human resources. The Woolworth company currently is using this
theory to rectify their situation of less employee engagement.
There is another theory named organizational life cycle theory. It also affects the HR
planning of Woolworth Organization as the life cycle of the organization directly related to
the number of employees working in it. the more effectively and efficiently employees work
the life of the organization can be more and can survive in the long run. The effectiveness of
the employees can be decided with the help of proper HR planning and management
operations. The company can take corrective action and necessary actions within time by
proper planning of their human resources (OsnatBouskila-Yam & Avraham N.Kluger, 2011).
Human resource theories assist clarify behaviors and structures in leadership that can affect
staff conduct positively or negatively. By getting a fundamental knowledge of organizational
behavior and theories of HR and acting on it, HR managers of Woolworth Organization can
maximize employee productivity and creativity and minimize employee turnover in their
organization.
Conclusion and Recommendations for Strategic Workforce Planning for Woolworths
Human resource planning is the ongoing method of forward systematic planning to maximize
the use of the most precious asset quality staff of an organization. HR planning ensures the
top fit between employees and jobs while avoiding employee shortages or surpluses. It allows
companies to be a major investment for various business as it allows companies to remain
both productive as well as profitable. The difficulties facing Woolworth's HR planning
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STRATEGIC HUMAN RESOURCE PLANNING
incorporate powers that are continually changing, for example, becoming ill, getting enlisted
or going on vacation. Human asset polices ensures the best fit among workers and work in
the group of representatives, maintaining a strategic distance from deficiencies and surpluses.
HR planning's Woolworth organization’s objective is to have the optimum number of
employees to make the most of the company's cash. HRP is a frequent occurrence because the
company's objectives and strategies change over time.
In order to meet the goals of the Woolworth Organization, HR executives must plan to do the
following:
 Identify and attract qualified workers
 Promote or let go of staff
 Manage absences and disputes
 Select, train and reward the best applicants
One of the hugest decisions that a business can make is putting resources into Human
resource planning. All things considered, a business is similarly as extraordinary as its staff
(Simon L Albrecht , et al., 2015). Human resource planning is what a business approach uses
to keep a continuous stream of qualified employees while avoiding shortages or surpluses of
staff. If Woolworth organisation has in place the highest staff and best practices, this can
impose the distinction among effectiveness and productivity as well as can contribute to
profitability.
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STRATEGIC HUMAN RESOURCE PLANNING
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