MBA 5005 - Woolworth's Labor Dispute: A Human Capital Analysis

This report examines a case study involving Woolworth, an Australian supermarket chain, where workers went on strike due to concerns about pay and job security. The report highlights the negative consequences of this dispute, including increased employee turnover and a damaged reputation. It emphasizes the importance of competitive pay scales and job security, drawing upon Maslow's hierarchy of needs to illustrate the fundamental needs of employees. The analysis suggests that fulfilling these basic needs is crucial for organizational growth and stability. Furthermore, the report discusses crisis management planning and its role in mitigating the impact of such events, recommending that Woolworth prioritize employee satisfaction and implement effective human resource management practices to improve workplace productivity and overall organizational success. Desklib offers a range of resources, including past papers and solved assignments, to support students in their studies.

MBA 5005 Managing Human
Capital
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Table of Contents
Executive Summary.........................................................................................................................3
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................5
Topic 1.............................................................................................................................................5
Topic 2.............................................................................................................................................7
Topic 3.............................................................................................................................................8
Recommendation ............................................................................................................................9
CONCLUSION ............................................................................................................................10
REFERENCES .............................................................................................................................11
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Executive Summary
Human resource management is my defined as a strategic approach to efficiently and
actively managed individuals within organization. Human capital management mainly aim
towards enhancing the value and ROI of employee in an organization and create and manage the
system to encourage and motivate employees. In simple terms human capital management is
transforming the additional administrative function and undertake various process like recruiting,
training, compensation, payroll and performance management. Present report is conducted on
Woolworth which is an Australian chain of supermarket and grocery stores. Report identifies a
case study in which company workers went in a strike due to lack of pay and job security. This
issue cause series problems in company in which they face higher employee turnover and
negative response from industry. Report underlines the viewpoint of different path is about the
importance of pay scale and job security the practices that Woolworth is having for job security
and pay scale from the analysis of Maslow hierarchy theory. It has been identified that it is
essential for organization 2 fulfill basic level needs of employees which is inclusive of pay scale
and job security in order to assure higher growth in industry.
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INTRODUCTION
Human resource management is mainly defined as a strategic approach to efficiently and
effectively manage people within a company in order to enhance overall productivity and
profitability of organization and assure higher competitiveness industry. HRM department within
company is mainly designed to enhance overall performance of employees and further provide
them guidance motivation and lead them to fulfill organization goals in effective way. Human
resource management plays essential role such as recruitment and selection, performance
management, learning and development, succession planning, compensation and benefits, human
resource information system, HR data analytics and more. It is one of the most vital aspect
within an organization which engage in the process of encouraging employees retaining them
providing them motivation to enhance their performance to fulfill organization objectives
ineffective manner. In this modern business environment human resource management is facing
challenge in terms of facing competition from rivals within industry in which competitors in
business environment are taking use of attractive form of compensation benefits and competitive
pay to recruit skilled and talented employees (Gerhart and Feng, 2021). Along with this, this
department is also facing challenge to motivate employees in a competitive manner in order to
retain them within company for longer period of time. Human resource management is essential
and important for organization performance as it is also benefit them to retain talented employees
for longer period of time.
Present report conducted on Woolworth which is operating as an Australian chain of
supermarket and grocery stores in retail industry and headquartered in New South Wales,
Australia. Present report discuss the case study analysis of Woolworth and the problem company
is facing and certain recommendations through which they can overcome the issue in well
defined and effective manner.
MAIN BODY
Topic 1
Introduction of case study
Supermarket giant Woolworth faced widespread industrial strike with as many as 2000
workers went on strike due to pay and job security. This seriously caused major problem for
Woolworth in operating its roles and responsibilities in retail industry (Woolworths faces wave of
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warehouse strikes over pay and job security. 2017). The National Union of Workers applied to
the Fair Work Commission for the right to take industrial action at three distribution centres in
Victoria and another in NSW. This affected company in negative manner that also affected
consumer satisfaction level. The workers were demanding for much improved job security, full
time work, greater redundancy pay out and increase in wages.
The main purpose of this report is to identify the manner in which human resource
management within organization managed this issue along with this significant recommended
practices to organization is also being discussed in this report.
Pay scale and job security practices in Woolworth
In context with the perspective of human resource management pay scale and job security
is one of the most important element in order to manage employees and retain them for longer
period of time within company. It’s been evaluated that competitive pay and benefits have scope
of greater satisfaction among employees (Wright, 2021). Pay scale and job satisfaction among
the top 3 drivers which benefits organization to retain employees for longer period of time and
enhance overall growth and profitability of organization. It has been evaluated that it not only
impact upon the respectful treatment of organization towards workers but also reduce company
positive image in industry. Furthermore it has been underlined and job security and pay scale is
important for both employees and employees by providing stable jobs to workers help
organization to increase retention rate and attract top talent and create a workplace environment
that significantly helps in bringing best out of employees (Ployhart, 2021). With the help of
providing competitive pay scale and job security managers also have benefit of retain talent
employees for longer period of time and conduct business roles and responsibilities in more
competitive manner as compared to other rivals in industry. In context with Woolworth
according to the case study analysis it has been identifying that number of workers went on strike
due to low level of pay and jobs security in Woolworth many employees or facing the issue of
low pay scale as compared to other rivals industry and job security. In this, it is essential for
human resource management within organization to apply concepts such as competitive pay
scale undertake, research to analyse rivals job security techniques, take use of performance
assessment and offer recognition to employees in order to enhance their satisfaction level. Lack
of pay scale and job security among employees within Woolworth showcase ineffective human
resource management practices within organization. It is essential for any organization
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irrespective of its size and scope to undertake advantage of competitive pay scale method and
provide job securities to employees. This is one of the stage of Maslow hierarchy theory and
among the basic level need of an individual. Organization with the providing these basic benefits
to employees have tendency to face increase in employee turnover, bad image of company in a
market, higher level of employee turnover rate etc.
Furthermore, it has been underlined that job security offer organization significant
advantage to improve overall workplace productivity and assure success. With the help of
providing job securities to employees organization can not only reduce stress of employees but
also productivity. For example if an employee is having a security income then it will
significantly reduce stress (Ahmed, Nasir and Bakhtawar, 2021). It has been underline that a
stressed employee will be less productive which can forward lead towards causing lack of
productivity that directly affect organization growth. Job security also benefit organization to
assure low level of employee turnover that significantly benefit company to have low hiring
coast and fulfill their goals and objectives with more talented and skilled staff. In terms with
Woolworth, there is lack of job security and ineffective form of pay scale being provided to
employees which let them to go on strike. This negatively affected growth overall satisfaction
level of consumers that lead towards decrease in sales ratio. According to the perspective of
human resource management it is essential for Woolworth to make sure that employees have
secured jobs and they are having pay scale according to the industrial standards and as per their
job position within company. This is important human resource management within Woolworth
to identify the real cause of problem and further improvement strategies and practices overcome
them in a well define and effective manner. This will aid them to gain higher growth and
profitability in industry.
Topic 2
It has been identified that it is essential for an organization to emphasise upon providing
competitive pay scale and job securities to employees to make them stay for longer period of
time and enhance their hard work. In this Woolworth human resource manager with the help of
taking advantage of theories of motivation such as need face theory can fulfill various needs of
employees. In this human hierarchy of needs identify that employees is having wide range of
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human desires (Malik and Sanders, 2021) . It is essential for organization or employer to fulfill
workers need. As per Maslow theory is mainly inclusive of psychological need, which include
food and clothing safety needs, job security, social need, friendship, self esteem and self
actualization. It is essential for human resource manager make sure that all this forms of
employee needs are get fulfilled in effective manner terms with at the bottom of the pyramid
psychological which is also known as basic means In this company is required to make sure that
basic level of employee need such as food, water are fulfilled while. On the other hand in terms
with physical needs in this security is among as an employee need in which it is essential for
organization to provide personal security well being financial securities. Furthermore in terms
with social media is essential for organization to make sure that employees conducting their roles
and responsibilities in a positive workplace environment in which there are emotional
relationship between teams. In this company with the help of taking advantage of okay
professional activities can develop social connection. Along with this on the 4th level which is
esteem need in this company is required to make sure that people those who are suffering from
self esteem are being treated with recognition and reward. While in terms with Abu-Rumman,
2021 self equalization needs in this company human resource management is required to make
sure that employees are having advantage of personal growth and development in the way of self
confidence. With the help of taking advantage of this theory Woolworth can provide job security
to employees and can provide them their basic need which is pay scale. With the help of this
company can overcome the challenge in a well defined and effective manner which will also
assist organization to assure long term growth and sustainability in industry.
Topic 3
Crisis management planning helps the organisation to deal with sudden crisis in the
organisation. By following a certain plan and strategy. Crisis which incurs in the company is
unpredictable in every manner. On the other hand, when a crisis occurs in the organisation. It
gives a potential damage to the management and the organisation. However, a crisis management
goals helps the company to minimize the effect of the damage (Josan, 2020). There are two ways
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which include crisis and risk management. They are different from each other. Crisis
management includes figuring out the best plan to solve the problem. In risk management the
company looks for different ways to minimize the damage. There are certain stages of crisis
which include warning and risk assessment. The organisation needs to monitor their system
which help them to detect the early warning signs of an crisis. The warning signs could be
electronic because most of the companies nowadays use technological methods to solve different
problems. Effective pre- crisis planning involve the time and money of the stakeholders. Various
companies has formed the response teams which deals with all the problems. The teams include
certain representatives. For example Human resource manager, finance and operation staff. A
crisis which affect the affect the public health and safety in the market. In order to deal with this
scenario the management of the organisation has to publicly solve the queries of the customer.
The company has to appoint those individual in front of customers who has right knowledge and
experience. After the crisis the business returns to its normal state which helps the company to
evaluate all the progression and recoveries. Difficult problems and crisis also helps the
organisation to gain more experience. On the other hand, the management now work according
to their goals and objectives in a systematic manner. It is essential for an organisation to follow a
strategic plan to carry out their operations smoothly in the market. In context to Human resource
management.
The main responsibility of HR manager is to maintain a healthy working environment in
the company. HR manager has to establish a secure connection between the management and
employees in difficult situation. Experience plays an important role in terms of managing all the
situations in the company. Woolworth company human resource manager takes advantage of the
appropriate experience (Sinha, 2018). It helps the manager to coordinate with the manager in a
systematic manner. In difficult situation the human resource manager involve with the top
management to make a sustainable plan. HR Risk management main focus is on the employees.
Due to different difficult situation the employees productivity compromises in the organisation.
Crisis in the organisation also made a deep impact in the working environment. In today's world
all the major industries and corporation use different methods to deal with crisis management.
The strategies may different between different organisation. The most common method which a
company use is anticipate the crisis by seeing several reports and documents. It helps the
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organisation to deal with the situation in an effective and appropriate way. Different company
study the market well to deal with the future complications.
Recommendation
From the overall case study it has recommended that pay scale and job security is the
main responsibility of human resource management. On the other hand, it is important for an
organisation to fulfil this responsibility in a systematic manner. This will help the company to
generate more revenues in the market. Employees productivity could also been increased by
fulfilling these responsibilities (Collins, 2021). The HR manager has to work in a effective
manner to deal with all these situation. Woolworth company has an efficient growth in the
market due to their practices. But, there is a problem because the organisation has some
problems.
The company has to improve the practices of human resource department. The area on
which they should focus is make the working environment suitable for the employees. HR
manager gives more dedication towards their duties and responsibilities. The organisation has to
change their management system with right approach and strategies. Change management helps
the Woolworth company to deal with difficult situations in a systematic way. In future the
organisation could attain their goals and objectives in the market (Kucharčíková, Mičiak, and
Hitka, 2018). The HR manager has to take the responsibility to solve the pay scale problem in
the organisation. This effective approach helps the organisation to transform with the change in
an efficient way. On the other hand, the management has to build a healthy relationship with the
employees. The company could use the Maslow hierarchy theory to understand the needs of the
workers. Woolworth company has to establish a core team to deal with all the difficult problems
which arises in the upcoming future. The main duty of this team is to understand the dynamic
situations of the market and help the organisation to achieve more revenues in the market.
Organisational behaviour is the main factor behind the success and failure of the company. The
management system of the Woolworth company has to prepare themselves with the changing
trends of the market. The HR manager has to improve their management and communication
skills to deal with different scenarios.
With the usage of right management skills the HR manager could become more efficient
in the organisation. On the other hand, dealing with the employees in a right way could help
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organisation to gain a competitive edge over its competitors in the market. Crisis management
could create a deep impact on the company. Dealing with this issue should be the main priority
of the management (Igielski, 2019). The HR manager also has a duty to recruit the talented
employees in the company. Woolworth company image and reputation helps them to get suitable
and efficient candidates in the organisation. The management give benefits to the employees
with the promotion and recognition methods. This will help the employee to stay motivated in
the organisation. Thy could also develop their skills and knowledge in the organisation. They can
create a better path in the future. To minimize the damage of risk the Human resource has to
effectively work with the core team and understand the problem. The main focus is to find an
clear solution of the problem. These crisis could take a serious hit on the company's financial
structure. They could face huge losses in the upcoming future. Woolworth comp nay already
faced some problems in the past. Their management has to counter all the problems to keep the
future safe and secure in the market.
CONCLUSION
From the above, mentioned report it has been included that management of human capital
is an essential factor for all organization irrespective of its size and scope. It helps the
organisation to attain their future objectives and goals in a systemic manner. On the other hand,
with the help of taking advantage of theories like Maslow hierarchy needs company can fulfil all
the basic level needs of employees which is inclusive of job security and pay scale. The
employees will feel motivates and they could become more productive. Along with that, this
significantly benefit organization to retain skilled and talented workers for longer period of time
and assure long term growth and development within industry.
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REFERENCES
Books and Journals
Malik, A. and Sanders, K., 2021. Managing human resources during a global crisis: A multilevel
perspective. British Journal of Management, 10, pp.1467-8551.
Wright, P.M., 2021. Rediscovering the “Human” in strategic human capital. Human Resource
Management Review, 31(4), p.100781.
Ahmed, L., Nasir, A., Nasir, A. and Bakhtawar, A., 2021. The Influence of Green Human
Capital and Green Abilities on Employee Green Behavior with Moderating Role of
Green Knowledge Sharing: A Conceptual Study. South Asian Journal of Social Sciences
and Humanities, 2(2), pp.1-12.
Abu-Rumman, A., 2021. Transformational leadership and human capital within the disruptive
business environment of academia. World Journal on Educational Technology: Current
Issues, 13(2), pp.178-187.
Gerhart, B. and Feng, J., 2021. The resource-based view of the firm, human resources, and
human capital: Progress and prospects. Journal of Management, 47(7), pp.1796-1819.
Ployhart, R.E., 2021. Resources for what? Understanding performance in the resource-based
view and strategic human capital resource literatures. Journal of Management, 47(7),
pp.1771-1786.
Josan, L.I.J., 2020. Managing the employer brand to attract talents in the organization. Manager
(University of Bucharest, Faculty of Business & Administration), 31(1).
Kucharčíková, A., Mičiak, M. and Hitka, M., 2018. Evaluating the effectiveness of investment in
human capital in e-business enterprise in the context of sustainability. Sustainability,
10(9), p.3211.
Sinha, V., 2018. Role of Emotional Intelligence in managing interpersonal relations at workplace
in the IT Sector. International Journal of Human Capital and Information Technology
Professionals (IJHCITP), 9(4), pp.72-87.
Collins, C.J., 2021. Expanding the resource based view model of strategic human resource
management. The International Journal of Human Resource Management, 32(2),
pp.331-358.
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Igielski, M., 2019, November. Managing the competences of key employees in Modern
Enterprises. In ECMLG 2019 15th European Conference on Management, Leadership
and Governance (p. 177). Academic Conferences and publishing limited.
Online
Woolworths faces wave of warehouse strikes over pay and job security. 2017. [Online].
Available through<https://www.smh.com.au/business/workplace/woolworths-faces-wave-of-
warehouse-strikes-over-pay-and-job-security-20171021-gz5i05.html>
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