Woolworths HRM System: Strategic Alignment and Recommendations

This report analyzes the Human Resource Management (HRM) system used by the Woolworths Group, a major Australian company, focusing on its use of PeopleSoft for managing organizational effectiveness, employee commitment, and customer service. The report provides an overview of the company's strategic objectives and undertakes a situational analysis of its HRM strategies, including a SWOT analysis. It evaluates the fit between Woolworths' HRM practices and its overall business strategy, highlighting strengths such as effective recruitment and weaknesses like the need for hardware updates. The report also identifies opportunities for workforce growth and threats related to technology adaptation. Finally, it offers recommendations for improving the HRM system to better align with Woolworths' strategic goals.

Running head: HUMAN RESOURCE MANAGEMENT
Human resource management
Name of the Student
Name of the University
Author’s Note

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Executive summary
1. Introduction
The paper mainly reflects on the human resource management system that is utilized
by the Woolworths group which is one of the major Australian company. According to (),
Woolworths uses PeopleSoft full offering of the human resource management system that
helps in managing the organizational effectiveness, commitment of the employees,
occupation safety as well as helps in providing proper customer service.
In this report, proper overview of the company is provided with strategic objectives.
The report also undertakes situational analysis on the human resource strategies by providing
proper justification. Moreover, the paper also provides proper discussion about the fit that
exists between the HRM and the strategy of the company. In addition to this, the paper also
provides several recommendations that reflects on the steps that helps in improving the
human resource management system.
2. Overview of the company
Woolworths group is one of the largest supermarket chains in Australia that was
founded in the year 1924. The company operates through 995 stores across Australia. The
organization works with various Australian growers as well as farmers for making sure that
the customers have best products. The organization is mainly specialized in selling various
types of groceries but they are also involved in selling magazines, beauty products, household
products as well as other types of stationary items. Presently, Woolworths is operating in
around 1000 stores across Australia in which 976 are supermarkets and the remaining 19 are
convenience stores that generally carries the same logo. As Woolworth is one of the most
innovative retailer of Australia they understand the ways of shopping and provides the
comfort of shopping from homes by using either computer or mobile phones. In addition to

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this, Woolworths app not only helps in online shopping but also helps in delivering the
groceries straight to the kitchen bench. The strategic objectives of the organization are listed
below:
 To build growth platforms for the future of the organization
 To create proper differentiation in the business of Woolworths
 Redesigning the E2 operating model of the organization
3. Human resource management
3.1 Situational analysis of the human resource management strategies
Situational analysis helps in collecting number of methods that are used by the
managers for analyzing the external as well as internal environment in order to understand the
capabilities of the organization. In order to analyze the human resource management
strategies of Woolworth group, SWOT analysis is mainly done. The SWOT analysis mainly
stands for strengths, Weaknesses, Opportunities and Threats.
Strengths: The strength of Woolworth’s group are considered as internal factors that
helps in enabling the HR strategy as well as functionality of the organization. The human
strategies that are utilized by the Woolworths helps in managing the operational side of the
human resource department. Moreover the HR department of the organization performs
functions like recruitment, selection, development, and retention as well as performance
management in an excellent way. Additionally, the HRM system helps in empowering
business decision making.
Weaknesses: There are a number of weaknesses of Human resource management
system that is used by Woolworths that is mainly created by the internal factors like budget
constraints. One of the major weakness of the HRM system of Woolworths is that they need
to update their recent hardware system for adapting to the technology.

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Opportunities: One of the most important external factor is that the human resource
management system helps in providing the opportunities for the growth of the workforce due
to the enhanced demand of the “Woolworths” products as well as services. Moreover, the
HRM system of the organization helps in making proper business decisions that further
enhances the opportunities of the organization.
Threats: Threats are considered as the external factors that helps in creating negative
impact on the company and on the HR department of the organization. It is found that as
Woolworths uses the PeopleSoft full offering of HRM system, the organization needs to
update their recent hardware system however in many cases the employees of the
organization faces problem in adapting to that technology and sometimes the traditional
method is found to be much more useful as well as efficient.
3.2 Evaluation and justification of the human resource strategies