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Introduction Of HRM Practices Of ASDA And Its Impact To The Organizational Success. In This Report, The Organizational Structure And Background Is Mentioned Assignment
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HR practices guide improving performance management through training on boarding along with reinforcing the values of the business. Human resources play a great impact on the development, reinforcement as well as changing of the culture or value of the organization. The principal aim of this study is to find out the HRM practices of ASDA along with how organization values contributed to the success of the organization. The basic role of these practices guides managing all the payment options to provide benefits to the organisation. Effective HRM practices guide improving organizational value along with the operational strategy. In this report, the HRM practices of ASDA will be discussed along with the organization's background and structure. In this study, the critical analysis of the existing HRM practices of the company will be discussed.
Organizational background
ASDA is one of the leading supermarket chains in the global \retain industry. Noel Stockdale set up this organization on 19th Feb 1949 with the help of Peter as well as Fred Asquith. Headquarter of this organization is located in Leeds, UK. The organisation mainly serves all types of grocery and common merchandise along with some financial services all over the world (asda, 2022). This organisation is now performing this business with more than 145,000 people across the world.
Salesforce of ASDA across the world from 2014 to 2021
(Source: statista, 2022)
The annual revenue of this organization is more than £22.90 billion and it operates with £584.2 million in the current situation. According to this figure, the sales force of this organization is very fluctuating as from 2017-2017 the organisation did not earn profit but after this season the organisation gained some profit and secure a sustainable place (Mousa and Othman, 2020). During the pandemic situation, the organization faced a huge business loss but in the post-pandemic situation, ASDA became one of the leading business organizations all over the world.
Organisational Structure
The structure of an organisation reflects upon the flow of work and basic principles being followed by an organisation in its course of task flow. Asda as an organisation maintains a hierarchical structure in its workflow (asda, 2022). This aspect prevails because of the wide network of workplaces and a large number of employees working in Asda. A piece of specific information or a decision is required to pass through several divisions to reach the designated departments.
For example, an employee is required to report to the supervisor, the supervisor reports to the assistant manager and the assistant manager reports to the store manager (Mertens and Recker, 2020). There are several levels in the course of the hierarchy. Each of the levels is controlled by a designated individual. This kind of structure is followed by big companies like Asda.
Impact of organisation structure on organisational sustainability
Impact of organisational structure on operations
A company structure is always important for the management of the workforce involved with an organisation. The workforce of an organization is a crucial pillar for its associative success. Henceforth, proper organisational structure follows up are required to be amended in an organization to provide the employees with healthy working conditions and derive high productivity (Malik et al. 2020). The “store appreciation day” is followed by Asda to express gratitude to the employees. In these events, the contributions of employees are acknowledged and they are thanked for their contribution (corporate.asda, 2022). These attributes go a long way in maintaining the sustenance of the organisation and is an effective strategy for employee retention.
Impact on HRM practices
Maslow’s hierarchy of needs
(Source: thoughtco, 2022)
In the hierarchical workflow of Asda, Maslow’s hierarchy of needs has been followed by the hierarchy to satisfy employee needs. This aspect ensures that the workforce involved in this organization is provided with essential benefits and assistance that satisfy their basic need and provides them with a safe professional space (thoughtco, 2022). Asda as an organisation has followed this aspect to derive the best of the results of the output by fulfilling the needs of the workforce involved.
Asda as a company hires people with a substantial amount of experience along with the freshers that can contribute fresh ideas required for the progress of the organisation. Inclusivity is another important aspect that Asda follows to bring in fresh ideas and enhance the diversity in the organization. Around 2,777 managers have taken inclusivity taken as of 2021 (asda,2022). The contribution of the fresher and the experienced employees alike are valued in Asda.
Impact of structure on business sustainability
The management of Asda has been highly active in retaining its stature in the business model during and after the events of the COVID-19 pandemic.
Asda sales growth 2014-2021
(Source: statista, 2022)
Asda like many other organisations witnessed a devastating dip in course of business flow during the events of COVID -19. The management took active decisions and enhanced the market flow by 1.9% in the initial days of 2021 itself (statista, 2022). Overall, Asda has taken steps to ensure a sustainable environment for the employees and they have invested in the skill development for Asda employees surveys have been taken to resonate with the valuable opinion of the employees, which has significantly contributed to the overall growth of the organisation.
Externally, the management has taken decisions that have enhanced the brand value of the organisation. The higher authorities in the hierarchy of Asda have addressed the rising concern of environmental values and hence have taken various necessary measures. The organisation currently, the management has undertaken steps to ensure zero waste policies in their productive units. Asda has been working actively to reduce the amount of carbon footprint being released by the organisation been reduced by 35% since 2015 and they are continuing to aim to reduce 50% of carbon emissions by 2025 (corporate. asda, 2022). Asda is also working on the utilisation of resources; the management has taken steps to reduce the usage of the energy and water resources by 30% (asdasupplier, 2022). These steps have enhanced the value of the organisation.
All these steps are curricula for the progress of the organisation as a whole and sustain through the competitive market in the UK environment. In addition, the strategies undertaken have established recognition on the global stage.
Critical analysis of HRM approaches
ASDA is one of the leading business organizations in the global retail business market and this organisation serves their services in more than 150 countries all over the world. The development of this organization mainly developed because of HRM practices of this organization are highly developed (Amrutha and Geetha, 2020). The HRM strategies of this organization are mainly guides to improve the relationship with the employees, maintaining gradual development through the training process. The recruitment process of ASDA is very organised and transparent so that the employees satisfy and trustworthy to the organization (Boon et al. 2019). All the rules and regulations along with the mission, vision and goals of the organization are informed so that the employee can provide their best performances.
HRM practices of ADSA
(Source: Boon et al. 2019)
The recruitment process of ASDA is very transparent and the HR manager first shortlisted the resume and select those who will be perfect for the organization. According to Hamouche (2021), the organization always focuses on the experience rather than the fresh candidates so that their business performance is developed. Apart from that, the recruiters arrange a training season after the recruitment and then start their job. Allocation and management of resources of this organization are well organised and that is why the relationship and satisfaction level of the organization is also very high (Hamouche, 2021). The HR manager of this organization also focuses on the goal harmony of in the organization along with the training administration process.
This is the reason the organizational efficiency is very high so that employees make out their job roles perfectly. As per the point of view of Strohmeier (2020), the HRM of ASDA performs as a medium between the employees and objectives of objectives. The methods of HRM practices of this organization strictly maintain some practices like punctuality, performance quality, and individual habit or attitude within the workplace and this organisation strictly review the presentation of an individual.
Emerging HRM practices for Adaptation
In recent days, recent trends have emerged in the UK business scenario that is to be incorporated to bring success to the organisation in order to derive a successful flow for an organisation. Recently there has been a rising concern about the working culture in the workplace.
Job-to-job resignation in the UK (2001-2022)
(Source: statista, 2022)
It has been noticed a rising trend of resignation among employees since the events of the pandemic. In the second quarter of 2022 noticed around 442,200 job resignations across the UK from various sectors (statista, 2022). Henceforth, Asda can take essential strategies and effective workplace counselling methods to establish healthy communication among the employees and address their concerns. In the post-pandemic period, employees have been habituated to the “work-from-home” culture hence the incorporation of a hybrid working model can be quite helpful for the employees and management alike. The utilisation of social media is quite important these days hence recruitment through social media platforms is quite essential.
In the UK and on the global stage, there has been a rising trend to incorporate sustainable approaches in association with environmental concerns. The inclusion of HRM policies like the “green HRM policies” can be quite beneficial in attracting fresh and diverse talent with new ideas to enhance substance (Peerzadah et al. 2018). These strategies can be undertaken by the HR department to propagate and stimulate the idea of utilisation of resources while preserving the natural environment.
These sectors of development can be addressed by Asda to promote sustenance in the modern business market and address the sentiments of people. These strategies will in turn act as a social responsibility toward humans as well as natural resources available.
Recommendations
ASDA maintains a well-organised HRM practice in its business process but sometimes the HRM of this organization failed to manage the workforce management. Therefore, it is suggested that the manager of the HR department of ASDA can build a strong cultural vision among the employees so that they can focus on their performances and increase organizational efficiency.
It is also suggested that the manager can provide feedback to the employees regularly so that they can realize their faults and update their performances (Strohmeier, 2020). There is numerous technological developments in the business industry that can be helpful in the improvement of workforce strength as well as enhance the sustainability of the organization.
Recommendations for improving HRM practices of ASDA
(Source: Pak et al. 2019)
It is recommended that the HR manager of ASDA can implement innovative technologies and advanced techniques into the HRM practices. It guides to improve employee efficiency can enhance which leads to the development of business productivity.
Another suggestion for this organization is to take great advantage of market data of the current situation so that they can evaluate the current position of the business market, which provides a great competitive advantage to the organization.
An effective training programme can be arranged for the improvement of employee performance frequently. In the training session, the new strategies taken by the organization can be delivered (Ngoc et al. 2021). This guides to improving the transparency among the employees that develop the inner communication level along with organisational structure.
Conclusions
Taking into consideration the above study it can be concluded that ASDA has great HRM practices that effectively guide the organization's success as well as sustainability. The organization has maintained organised HRM practices but some practices can be implemented in the HRM practices for enhancing the business sustainability. In this study, the organizational background maintains a hierarchical structure in their organization. Different approaches to HRM practices of the organization are mentioned and some effective emerging organization is suggested for the improvement of the organization. The useful recommendation is also discussed for the development of the HRM practices of ASDA.
References
Journals
Amrutha, V.N. and Geetha, S.N., 2020. A systematic review on green human resource management: Implications for social sustainability. Journal of Cleaner Production, 247, p.119131.
Boon, C., Den Hartog, D.N. and Lepak, D.P., 2019. A systematic review of human resource management systems and their measurement. Journal of management, 45(6), pp.2498-2537.
Hamouche, S., 2021. Human resource management and the COVID-19 crisis: Implications, challenges, opportunities, and future organizational directions. Journal of Management & Organization, 1, pp.1-16.
Malik, S.Y., Yukun, C. and Khan, N., 2020. The effects of sustainable human resource management practices on employee performance: The moderating role of organizational commitment. Gomal University Journal of Research, 36(1), pp.1-14.
Mertens, W. and Recker, J., 2020. How store managers can empower their teams to engage in constructive deviance: Theory development through a multiple case study. Journal of Retailing and Consumer Services, 52, p.101937.
Mousa, S.K. and Othman, M., 2020. The impact of green human resource management practices on sustainable performance in healthcare organisations: A conceptual framework. Journal of Cleaner Production, 243, p.118595.
Ngoc Su, D., Luc Tra, D., Thi Huynh, H.M., Nguyen, H.H.T. and O’Mahony, B., 2021. Enhancing resilience in the Covid-19 crisis: lessons from human resource management practices in Vietnam. Current Issues in Tourism, 24(22), pp.3189-3205.
Pak, K., Kooij, D.T., De Lange, A.H. and Van Veldhoven, M.J., 2019. Human Resource Management and the ability, motivation and opportunity to continue working: A review of quantitative studies. Human Resource Management Review, 29(3), pp.336-352. (Pak et al. 2019)
Peerzadah, S.A., Mufti, S. and Nazir, N.A., 2018. Green human resource management: a review. International Journal of Enhanced Research in Management & Computer Applications, 7(3), pp.790-795.
Strohmeier, S., 2020. Digital human resource management: A conceptual clarification. German Journal of Human Resource Management, 34(3), pp.345-365.
Websites
asda, (2022), About the company, Available at: https://www.asda.com/ [Accessed on 16th September, 2022]
asdasupplier, (2022), sustainability commitments, Available at: https://asdasupplier.com/responsibility/our-sustainability-commitments#:~:text=At%20Asda%2C%20our%20approach%20to,the%20suppliers%20that%20make%20them. [Accessed on: 16th September, 2022]
corporate.asda, (2022), ESG report ASDA, Available at: https://corporate.asda.com/newsroom/2022/08/04/asda-publishes-new-esg-report [Accessed on: 16th September, 2022]
statista, (2022), Asda sales growth year-on-year in Great Britain 2014-2021, Available at:https://www.statista.com/statistics/386700/asda-sales-percentage-change-great-britain-uk/ [Accessed on: 16th September, 2022]
statista, (2022), Asda sales growth year-on-year, Available at: https://www.statista.com/statistics/386700/asda-sales-percentage-change-great-britain-uk/ [Accessed on 16th September, 2022]
Statista, (2022), UK job resignations, Available at: https://www.statista.com/statistics/1283657/uk-job-to-job-resignations/#:~:text=In%20most%20years%2C%20there%20is,COVID%2D19%20pandemic%20in%202020. [Accessed on: 16th September, 2022]
