strategic human resource management - global edulink

Strategic Human Resource Management

The Sainsbury PLC


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Table of Contents

Introduction ........................................................................................................................................ 3

Part 01 ................................................................................................................................................ 4

1.1Importance of Strategic Human Resource Management ........................................................... 4

1.2Purpose of SHRM Process ........................................................................................................ 5

1.3 Contribution of HRM process to Organisational Objectives ................................................... 6

Part 02 ................................................................................................................................................ 7

2.1 Factors for Human Resource Planning ..................................................................................... 7

2.2 Identify the Human Resource Requirement ............................................................................. 8

2.3 Human Resource Planning Process .......................................................................................... 9

2.4 How HR Plan Assist to Meet the Organisational Objectives ................................................. 11

Part 03 .............................................................................................................................................. 12

3.1 Purpose of HRM Policy of the Organisation.......................................................................... 12

3.2 Impact of Legal Framework of the Organization ................................................................... 13

Part 04 .............................................................................................................................................. 14

4.1 Impact of Organisational Structure on HRM ......................................................................... 14

4.2 Impact of Organisational Culture on HRM ............................................................................ 15

4.3 Measure the Effectiveness of HRM process .......................................................................... 17

4.4 Recommendation for Better HRM Process in the Organisation ............................................ 19

Conclusion........................................................................................................................................ 20

Reference .......................................................................................................................................... 21


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Introduction

Human Resource Management (HRM) is the process of effective and efficiency utilization

of employees to gain the competitive advantages on the organisation. The traditional HRM

perspective was continuing the HRM function to do the day-today organisational

functions. However, today’s it takes the strategic view which links the HRM strategies

with overall business strategies of the organisation. According to the Strategic Human

Resource Management (SHRM), organizations utilize their employees to gain the

competitive advantages on organization. The assignment explains the SHRM perspective

of Sainsbury PLC which is the third largest supermarket chain in UK. The first part of the

assignment describes that importance of SHRM and purpose of the SHRM process of the

organisation. Second part explains the strategic human resource planning process of the

organisation and third part discuss about the human resource policy and legal framework

within the organisation. Last part of the assignment explains that impact of the

organisational structure and culture on human resource management of the organisation.


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Part 01

1.1 Importance of Strategic Human Resource Management

According to the Katzenbach and Douglas (2005) Human Resource Management means

the effective and efficiency utilization of the employees towards the organisational

objectives. The traditional view of the personal management considers employees as just

works of the organisation. However, HRM describes the employees as most important

resource for the organisation to gain the competitive advantages for the organization more

than its competitors.

According to the Kim and Ryu (2011) Strategic Human Resource Management is advance

concept more than HRM which means the core-relation between human resource

management and overall organisational objectives. According to the SHRM process, the

employees are utilizing their talents and skills to attract the customers for the organisation

in order to gain the competitive advantages. SHRM give the direction to organisation on

how to build the foundation for strategic advantages by creating an effective organizational

structure and design, culture, employee value proposition, systems thinking, an appropriate

communication strategy and preparing an organization for a changing landscape, which

includes downturns and mergers & acquisitions (Kar, 2012). Therefore, SHRM is not

separate process and it directs the employees to win the market. Following importance can

be seen through the SHRM process for organisational development;

SHRM process emphasizing the organisational codes of ethics, managing the

societal impact of business decisions

Enhancing the solidifying business performance through personal performance of

the employees

Developing the employer branding for the organisation it generating the easy

recruitment, long term retention of the employees and employees’ satisfaction

Reduce the cost for employees in term of reducing the cost for recruitment,

selection, training and development and compensation (Greer, 2001)

To build the linkage between HRM strategies and overall organisational strategies

in order to gain the sustainable market share through customers


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1.2 Purpose of SHRM Process

Kar (2012) explain Strategic Human Resource management is boarder concept within the

organisation. The basic objective/ purpose of SHRM are gaining the competitive

advantages through effective utilization of the employees’ capabilities. As the importance

of SHRM process, it is generating the benefits for organization. Therefore, it is need to

identify the basic purpose of SHRM for the organisation. The Sainsbury PLC is a leading

organisation in UK (www.telegraph.co.uk, 2015). Sainsbury's is the third largest chain of

supermarkets in the United Kingdom with a share of the UK supermarket sector of 16.9%.

Therefore, Effective SHRM process is need to Sainsbury to reach for their objectives.

According the following figure there can be able to identify four basic purposes of SHRM

process in Sainsbury PLC (www.j-sainsbury.co.uk, 2015).

[Figure 01: Purpose of Strategic HRM in Sainsbury PLC]

Source: Designed by author

First purpose of SHRM process is maintaining the employees within the organisation in

order to support for the organisational preserve. The Sainsbury PLC apply some HRM

functions for better maintaining of employees such as recruitment, section, performance

http://www.telegraph.co.uk/

http://www.j-sainsbury.co.uk/


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appraisal, compensation management, disciplinary management and fulfill the legal

formwork of the organisation (Kim and Ryu, 2011). Second purpose is Development of the

employees in order to develop the overall organisation. As the importance of personal

development, they are encouraging the employees’ development and learning. The

development means the periodical enhancement of employees’ knowledge, skills and

talents (Jamesand David, 2000). Third purpose is employees’ motivation. Motivated

employees’ pool is valuable resource for the organisation. Therefore, Sainsbury PLC

applies different methods to motivate the employees for their job responsibilities. Last

purpose is employees’ retention. Employees’ retention is reducing the organisational cost

while increasing the sustainability. Therefore, Sainsbury PLC encourages the lone term

retention within the organisation and they identify retention as the one purpose of SHRM

process.

1.3 Contribution of HRM process to Organisational Objectives

According to the Lawlerand Mohrman (2000) simply HRM is the supportive service for

the organisation which assists to continue the basic business performance of the

organisation. Therefore, HRM functions should support to organisational basic business

objective by providing effective and efficiency employees pool. Therefore, employees can

be able to identify the need of organisation and develop the strategies to gain the

competitive advantages. Greer (2001) say Human resource management should provide

the capable employees for all the business performance continuing by the organization.

The Sainsbury continue basic HRM functions to attract the employees retain the

employees and develop the employees’ skills and knowledge. As the importance of HRM,

the overall success of the organisation is depending on the contribution of human resource

process of the organisation. Because of that, it is need to provide outstanding contribution

to continue the business performance (Katzenbach and Douglas, 2005).

The HRM process of Sainsbury PLC is offer the decision making authority for their

employees in team level and obtain the employees’ ideas to developing strategic decision

for the organisation (www.j-sainsbury.co.uk, 2015). Therefore, Sainsbury develop the

people’s capacity through learning at all levels, with encouragement of self-management

and team capabilities to enable and support performance improvement and organisational

potentials. The Sainsbury encourage the high performance management practices such as

team working, team innovation, employees’ participation and employees’ engagement in



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their performance level. These high performance management practices motivate the

employees towards the organisational goals and objectives (Kar, 2012). The HRM process

of Sainsbury continues the periodical performance evaluation process and identifies the

employees’ performance and makes the arrangement to developing employees’

performance. The training and development process of the organisation generate more

critical contribution on HRM process in order to overall organisational objectives through

outstanding employees’ performance (www.telegraph.co.uk, 2015).

Part 02

2.1 Factors for Human Resource Planning

Kim and Ryu (2011) say Human Resource Planning (HRP) is important HRM function

with the organization which develops the future planning for human resource need of the

organsation.

HRP process identifies the gap between current capacity of the employees and expected

capacity of the human resource in order to develop the strategies for balancing these two

situations (Katzenbach and Douglas, 2005).

Greer (2001) defines Human resource planning as the organisational HRM process is

important to continue the business without excesses or surpluses of the employees. For the

certain time period, the organisation is continuing the HRP process and determines the

need for human in future. The results of HRP is using for successful maintaining of other

HRM functions such as recruitment, selection, compensation, performance evaluation and

training and development.

The Sainsbury PLC continues the HRP process to determine current staff need for the

organisation for specific time period (www.j-sainsbury.co.uk, 2015). The organisation

fulfills their HR need through internal methods as well as external methods. However, the

organisation identifies three types of factors which effect on the organisational HRM

planning process (Rogg et al, 2001).




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Organisational factors

The organisational policies, legal requirement and procedures

Organisational culture and structure

Job designing process

Available vacancies of the organisation

Current salary scale of the organisation

Training and development methods

Job description

Job responsibilities and task, duties

Personal factors

Personal qualities of internal or external candidates

Knowledge, skill and abilities

Willingness to work

Motivational level

Positive attitudes

Salary expectation

External factors

Jobs in similar organizations in job market

Competitors’ recruitment strategies

Compensation of other organisation

Legal and regulatory framework of government and job industry

2.2 Identify the Human Resource Requirement

Rogg et al (2001) define the main purpose of the human resource planning process is

determined the human resource/ employees requirement in given situation. It is essential to

identify the HR need for specific time period, if not it is unable to continue business

process usefully.


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Therefore, Sainsbury PLC conducts the “HR Audit” for specific time period to determine

the employees’ need for the organisation. Sainsbury get the support from all the

department heads to identify HRM need for each department (www.j-sainsbury.co.uk,

2015). As the example, Sainsbury conduct the formal meeting with department heads to

identify their human resource need for the specific time period, normally for one year.

After that, it is developing the “succession plan” and “manning table” which hare to formal

documents which describe the internal HRM needs. The succession plan provide the idea

that who can be promoted for higher position with their experience two match the gap of

human need. These documents are providing the clear idea regarding how many vacancies

are in there in the organisation and which methods can be used to fill those vacancies

(Greer, 2001).

The Organisation transfer employees from their one factors/supermarket to another as the

method of filling the vacancies (Lawler and Mohrman, 2000). The formal HR audit

reduces the cost of recruitment because it avoided the immediate recruitment and errors

which make with immediate recruitments. It can be able to analysis the relative importance

of each job of organisation and develop the job description for better working process as

well as employees’ satisfaction. As well as ensure the organisational responsibility are the

job maker for external parties through identification of the human resource requirement for

the organisation (Kar, 2012).

2.3 Human Resource Planning Process

As the importance of human resource planning process, the Sainsbury PLC has been

developed HR plan for the organisation to determine the HR need for coming year.



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[Figure 02: HR planning process of the organisation]

Source: http://www.whatishumanresource.com/hrp-process

Above diagram present the HR planning process of Sainsbury PLC which consists with

three basic steps.

1-Step

According to this step, Sainsbury is forecasting the human resource requirement by using

two views such as employees’ demand and employees’ supply. The demand means the

internal employees need for coming year (Jamesand David, 2000). Sainsbury apply

different methods for this.

Discuss with team leaders and department heads

Use the succession plan and manning table

Consider the turnover rate

Supply forecasting is determining the external labour supply for the organisation.

Following methods can be used for it;

Employees’ need for competitors

Compensation expectation

Legal framework

http://www.whatishumanresource.com/hrp-process


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Recruitment agencies

Educational institutes

2 -Step

Compare the employee need and supply level is second step of organisational HRP

process. Here, Sainsbury compare the need and supply. If demand is high than external

supply, they are using following methods (Desseler, 2007);

Continue the recruitment process and immediate recruitment

Get the support of recruitment agencies

Outsources the employees

Attract candidates through high compensation and high benefits

As well as there can be seen, more employees in the organization than its need. Within this

situation, Sainsbury apply following strategies;

Encouraging the voluntary retirement

Pay compensation and dismiss the employees from organisation

Stop the recruitment

Transfer for other branches

3- Step

The final stage is matching the HRP strategies with organisational HRM process. Here,

Sainsbury PLC encourages the employees to continue learning as the method of train them

for future employment needs. As well as continue the HR audit to determine the current

employees’ level within the organisation.

2.4 How HR Plan Assist to Meet the Organisational Objectives

According to the Rogg et al (2001) Human Resource Planning process as the main HRM

function of the organization is using to continue appropriate employees’ level within the

organisation. If there is more or less employees in organisation, it directly effect on the

organizational performance. When developing proper HR plan, the Sainsbury PLC expect

to gain following benefits for the organisation.


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1. Employees attracting and retaining strategies

2. Employees’ development

3. Link HRM strategies with overall organisational objectives

Therefore, this HR plan provides effective contribution on organisational HRM purposes.

Firstly HR planning process determine suitable strategies to personal and professional

development of the existing employees of Sainsbury because HR plan identify the future

HR need and the organisation encourage promotion for current staff to fill future vacancies

(Desseler, 2007). Therefore, HR planning process and training and development process

working together to enhance the employees’ skill and knowledge for future organisational

needs.

Secondly, the HRM plan encourages the outstanding performance of current staff members

because the organisation applies strategies to gain more contribution from existing

employees without recruitment more employees (Lawlerand Mohrman, 2000). As well as

it link with effective compensation management process when provide fair compensation

for employees’ performance. The HR plan of the organisation directly effect on the

recruitment and selection process. As the most important organisational HRM functions,

the recruitment and selection processes have been modifying through HR plan and provide

the information for recruitment (eg: numbers of new recruitment). HR planning makes the

link between organisations with external job market as well as society through the

recruitment and other HRM functions. The organisation has developed the relationship

with candidates, legal authorities, competitors, government and recruitment agencies when

recruiting the employees (Jamesand David, 2000).

Part 03

3.1 Purpose of HRM Policy of the Organisation

According to the Jamesand David (2000) Human Resource Policies means the clearly

mentioned statements regarding the organisational HRM procedures.

HRM policies can be identified as the set of organisational statement which shows the

clear path for employees and employer to make the effective solution in Employee related

matters (Rogg et al, 2001).


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HRM policies are vital for organisational are serious about resolving personal and

professional issues within the organisational context. The Sainsbury PLC is intending that

these HRM policies are help maximize the effectiveness of organisational HRM functions.

There can be seen three basic characteristics of Sainsbury HRM policies as follows;

HRM policy organization has consistent, well-written & legal policies and

procedures

HRM polices should prove HR advice for the organization needing help with HR

related issues of the organisation

Individual and organisation should serious about serious about the HRM

procedures through HR polices

There can be seen three basic purposes of HRM policies of Sainsbury PLC;

1. HR polices keep the fair organisational condition for all the employees in their

business performance within the organisation. HR policies and procedures support

equal employment opportunity in giving fair treatment to applicants and employees

throughout the hiring process and the employment experience. As the example, the

personal prejudice has been avoided in recruitment and selection process and gives

the opportunity for candidates’ knowledge and skills.

2. HRM polices implement the strategic view for HR practice in organisation. HRM

functions link with the overall organisational strategies and leads the employees

with self-motivation (Lawler and Mohrman, 2000)

3. Continue the legal and regulatory framework of the organization as well as industry

or government through the HRM polices. Therefore, HRM polices establish the

accurate organisational structure

3.2 Impact of Legal Framework of the Organization

The Sainsbury PLC has to face legal and regulatory context when they are continuing the

business within the industry. These regulatory frameworks protect the employees and

society from different unethical behaviour of the organisation as well as provide the fair

treatments for the organisations (Desseler, 2007). There can be seen different legal

conditions which should applicable for Sainsbury PLC.

Race Relation Act


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Disability Discrimination Act (DDA)

Data protection Act - 1995

Equality Act

Sex Discrimination Act- 1975

It is essential to continue these rules and regulation within the organisation because it is

compulsory to all the organisations as their industry. If, the organisation is unable to apply

these for the organisation, it may be the reason for punishment from UK government. The

application of these rules and regulation can be cost to the organisation because it is need

to fulfill the documentation needs, cost for lawyers and have to do necessary payment for

the organisation on behalf the of organisation. As well as Sainsbury has to get the support

of external parties such as lawyers and legal institutes when they are continue the

regulatory framework (Kramar et al, 2005). The other impact of these legal conditions is

Sainsbury has accountability for their internal and external stakeholders such as

employees, owners, customers and society.

However, there can be seen some of positive impact of the legal framework of the

organization. When the Sainsbury continue all the necessary rules and regulation it can be

able to enhance their reputation for their transparency of business performance. This

reputation can be use as the one indicator for employer branding process of the

organisation (www.telegraph.co.uk, 2015).

Part 04

4.1 Impact of Organisational Structure on HRM

According to the Armstrong (2012) the organisational structure is the typically hierarchical

arrangement of lines of authority, communication, decision making ability, duties and

responsibilities of the organisation. It provides clear understanding about roles, power and

authority each level of the organisation.

The Sainsbury says that, their organisational structure is depending on the organisational

objectives, strategy and managerial perspective. According to the organisation their

decision making authority is decentralized towards the team leaders as the usage of

strategic HRM within the organisation. As the HRM is main organisation function, it has

been impact by the organisational structure of Sainsbury PLC. The usage of the



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organisational structure and its performance view impact on all the HRM functions within

the organisation in order to employees of the organisation (www.telegraph.co.uk, 2015).

The organisational structure makes the impact on communication process within the

organisation. The Sainsbury use the decentralized organisational structure and it

encourages the employees to participation for the decision-making process of the

organisation. The communication process takes the employees’ ideas and information on

decision making process. As well as business strategy continue the fair organisational

administration activity such as documentation process and basic employees’ management

activities such as compensation and benefits management. In other hand, the organisational

structure is encouraging the employees for self-motivation when they are participating to

the decision-making process within the organisation (Kramar et al, 2005).

The organisational structure of Sainsbury continues fair relationship between employees

and the employer. As the importance of employees’ relation process, the Sainsbury

provide the opportunity for Trade Unions (TU) in order to encourage the negotiation in

employees’ related matters (www.j-sainsbury.co.uk, 2015).

4.2 Impact of Organisational Culture on HRM

Organisational culture is the system of shared assumptions, values and benefits which

manage the employees/ human of the organisation (Desseler, 2007). The share values

direct to employees that their dress, act, performance, behaviour and responsibilities in the

organisation.

According to Sainsbury PLC, they are identifying the organisational culture as the set of

belief which make the impact on employees to regarding the shared values, beliefs and

code of conducts. According to Sainsbury, they are encouraging the “people based” culture

which developing personal skills towards the organisational objectives. There can be seen

seven characteristics of Sainsbury PLC;

1. Innovation

2. Attention to details

3. Emphasis on outcome

4. Emphasis on peoples

5. Teamwork

6. Aggressiveness




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7. Stability

The people base culture of the organisation encouraging professional relation between

employees and the employer. Therefore, Sainsbury make the strategies to encourage the

management to continue fair relationship with employees and apply strategies. As well as

Sainsbury encourage the personal learning/self-managed learning process within the

organisation as they values people based culture within the organization(Armstrong,

2012).Therefore, following impacts can be seen on the organisational HRM process

through organisational culture;

Decision making process has been decentralized and encourage the employees’

participation for the decision making process

Give freedom to employees to continue their job responsibilities successfully

Frankness on the communication and participation of all level of employees to the

communication process

Encourage the personal leadership of the team leaders and team decision on

strategic direction of the organisation

Continue the self-managed learning process and provide the facilities for

employees for it (internet, researching facilities, training, leadership camps, library)

Identify individual differences and respect to each other’s for peaceful

organizational culture


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4.3 Measure the Effectiveness of HRM process

As the importance of human resource management process to gain the competitive

advantages

on organisation, it is essential to active participation of all employees and management

people towards the better HRM process (Armstrong, 2012). Therefore, it is essential to

measure the effectiveness of HRM process on within specific time period. When

organisation makes the strategies to measure HRM process, it can be able to identify the

successful factors as well as failure factors on HRM process. Therefore, it is easy to

develop the strategies for future organisational direction. Sainsbury PLC has been applying

for indicators to measure the effectiveness of organisational HRM process as following

figure.

[Figure 03: Factors to measure the HRM process]

Source: http://www.nicheconsulting.co.nz/hrm_recruitment/hr_consulting.htm

Recruitment

http://www.nicheconsulting.co.nz/hrm_recruitment/hr_consulting.htm


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The successful recruitment process is one indicator for measuring the success of

organisational HRM process. Recruitment as the HRM function is linking with selection,

compensation and retention of the employees. The successful recruitment process can

provide the appropriate employees for organisational vacancies who can capable to reach

to organisational objectives while accepting the challenges from external environment.

Performance management

Following indicators can be used to cover this criterion;

Current employees’ performance

The gap between the expected performance and actual performance (when gap is

low it is mark for the effective performance conditions)

Employees’ willingness to increase the personal performance

Retention

Employees’ retention is one main criterion to measure the success of organisational HRM

functions. When employees are retain long term, it means that HRM process is so good for

the employees in Sainsbury (www.j-sainsbury.co.uk, 2015);

Numbers of employees’ retain in the organisation more than 5 year

Compensation and other benefits for the employees

Level of employees’ loyalty

Training and development

Organisational Training and development programs for the employees

Measure the personal training need of each employee

Opportunity for Self-managed learning

Opportunity for career development



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4.4 Recommendation for Better HRM Process in the Organisation

When analysis the HRM process of Sainsbury PLC, it can be present the following

recommendation for organisation to gain more advantages through the employees/human

resources of the organisation (Armstrong, 2012);

Give the responsibility for all the managers to participating to the HRM process

within their departments as they are managing certain kind of employees’ pool in

their department

Encourage the communication process and employees’ participation for the

communication process. Give the training for communication

Continue the self-managed learning process as the main methods of providing the

learning for the employees can be given necessary facilities to employees such as

internet, workshops, library facility and research facilities

Employees’ participation for the decision-making process and encourage the team

decision and innovation

Continue proper performance evaluation system and use the performance

evaluation system to modify the existing working process and performance

Establish the self-disciplinary process within the organisation


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Conclusion

Strategic Human Resource Management is advance concept more than HRM which means

the core-relation between human resource management and overall organisational

objectives. There can be seen four basic purposes of SHRM process of the organisation

such as human maintaining, Developing, motivation and retaining in the organisation for

long term. These high performance management practices motivate the employees

towards the organisational goals and objectives. When they are determining the HR plan

for the organisation, it is considering the internal factors and external factors as well as

personal factors of the candidates. HRM policies are vital for organisational are serious

about resolving personal and professional issues within the organisational context. The

Sainsbury PLC has to face legal and regulatory context when they are continuing the

business within the industry. As the importance of learning culture to gain the competitive

advantages, the Sainsbury PLC encouraging the employees’ learning process within the

organisation with self-managed learning process.


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Web Reference

Sainsbury Company website (2014), Sainsbury PLC, [Online], Available from:

http://www.j-sainsbury.co.uk/home/ [Accessed on 21/02/2015]

The Telegraph News (2015), Sainsbury Latest News, [Online], Available from:

http://www.telegraph.co.uk/finance/newsbysector/epic/sbry/ [Accessed on 05/03/2015]

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