Case Study index
Strategic HRM in ASDA

 

Introduction

Based on the case study on ASDA, this report was separated into two main parts. In the first part (i.e., Part I), the focus is about a critical evaluation on the extent to which training and development is effective in helping Asda’s staff retention. Then, in the second part (Part II), the report will consider about the influence of issues such as management processes, the employee value proposition and employer brand towards the company. To support the discussion, only ideas or findings from peer-reviewed journals will be employed.

Part I: Impacts of Training and Development

Training and development are processes that are essential in equipping employees with the necessary education, skills, and competencies or even to shape relevant employee behaviours to contribute to the achievement of organisation goals (Garavan, 1997; Sloman & Philpott, 2006). For the case of ASDA, it can be noted that training and development programmes within ASDA had indeed contributed to delivery of better customer services by employees, engage the employees, enable employees to have a more holistic views on the organization (i.e., have relevant knowledge in a variety of areas), support ASDA towards the position as a leading employer with an excellent reputation in the wide range of markets it serves, as well as had enhanced the loyalty among the employees.

One interesting question is about if the training and development programme is effective in contributing positively to staff retention within ASDA. This issue will be critically evaluated, of which if training and development is effective in helping ASDA’s staff retention will be examined.

First of all, there are many evidences from scholarly research that found training and development can enhance the performance of a company strategically, such as in: Arms (2012), Liu (2011), Brown (2010) and Voronov (2008). The literature on how training and development may influence staff retention however is more limited. However, these limited literatures will be reviewed, and analysed in conjunction with the case study on ASDA herein.

First of all, Oladapo (2014), it is found that effective talent management programme (which includes the effective delivery of training and development programme) can affect staff retention positively. This is particularly true when the training and development programme able to provide the opportunity for advancement to the staffs. A review of the case study of ASDA also found that there is some sort of talent management programme in the company, and that staffs in ASDA indeed have great opportunities for advancement. Given so, while it is not explicitly mentioned that training and development in ASDA can contribute to staff retention, it is however reasonable to believe that there can be at least some indirect but positive effects from training and development programmes towards staff retention in ASDA.

Then, research conducted by Armstrong & Stassen (2013) also found that availability of training and development practices targeted to older nurses was positively associated with their intention to remain with the organization (and their satisfaction level). Apparently, training and development can affect satisfaction of employees, while that in turn affect staff retention. Such relationships can also be observed in the case of ASDA, because it can be noted that ASDA does have very advanced training and development programme for the growth of its employees, and that it can also be noted that employees in ASDA were highly satisfied (with low employee turnover rate). That overall indicates that there is likely some influences from excellent training and development programmes available within ASDA, that promote growth for the employees, which also resulted in greater employee satisfaction as well as excellent staff retention rate.

Gaffney (2005) had also found that career development programmes are useful in keeping valued employees, given that individuals tend to stay longer where they are experiencing personal and professional growth. Such notion is obvious in ASDA, because the personal and professional growth is something being emphasised by management of ASDA.

Other than that, it is noted that training and development in ASDA had seemingly enhance employee loyalty, and had been exerting positive effects on employee commitment (with some hints that the staffs in the company had identified themselves with ASDA, and love the family-like-culture in the company). Then, it is widely acknowledged that loyalty and commitment is related significantly and positively to retention. Some scholarly research that prove how employee loyalty and commitment lead to employee retention include: Yücel (2012), Mustapha & Daud (2012) and Joarder, Sharif & Ahmmed (2011). From there, it can be again deduce that training and development can exert at least indirect contribution to staff retention.

To conclude: For the case of ASDA, it is reasonable to believe that its extensive and comprehensive training and development had contributed to staff retention. This is because some of the evidences had revealed on how training and development may contribute to staff retention, and there are many indications that criteria on how training and development can enhance staff retention as found in scholarly journals are happening in the company. Therefore, it is valid to argue that “training and development is effective in helping ASDA’s staff retention” is true.

Part II (a): Influence of Management Processes

There are many management processes that can be identified within ASDA, on how such process had contributed to the performance of the company (as well as the performance or outcomes of the staffs). The discussion on how some of the important management processes may influence other management issues or outcomes will be presented accordingly.

Management process 1: Being committed to and value about employee well-beings and satisfaction. One of the key Asda’s philosophies is that if the employees enjoy working with ASDA, the customers will enjoy shopping with ASDA. This philosophy is implemented through being committed to four ‘colleague pledges’, as follow: fairness at work; opportunity for all; respect for each other; and pride in ASDA. Then, there is also Big Asda Anniversary event to recognise staffs with long services from 25-45 years. In other words, there is a management process available to take care of the well-beings and satisfaction of employees, as well as officially recognising and appreciating the efforts from employees. That is also often named as the ‘internal marketing’ efforts, as through employee satisfaction, the customer satisfaction (and hence company performance) is enhanced – and such process or strategy often enable to contribute to excellent customer services and hence competitive edge for a firm (Aburoub, Hersh & Aladwan, 2011; Yang & Coates, 2010). For the case of ASDA, this is also observed, i.e., the customers of ASDA are often satisfied with the services provided by the staffs, and that contribute to strategic positioning of ASDA within the very competitive retailing industry. However, that is not only the positive impacts to ASDA. Some of the other outcomes of paying attention to employees’ well-being and satisfaction include the following: (i) low employee turnover, (ii) employees are more committed towards ASDA, (iii) the employees feel more valued, more fulfilled, more supported and more motivated to deliver the customer pledges, as well as (iv) the cultivation of an internal environment that promotes trust and supports career progression.

Management process 2: a focus on career progression and development for employees. One of the essential management process that contribute to excellent human resources management in ASDA is that the management place great importance on employee development, and that include the supporting and investing in its colleagues to gain qualifications that will enable them to become the next generation of leaders at ASDA. Such process has several positive implication, of which that include: more satisfied and fulfilled employees, employee having a sense of growth and hence more motivated to work, as well as employees become more loyal and identified with ASDA.

Management process 3: development of a strong culture. Many of the management process, i.e., managing the small and tiny things that matters, contribute to the formation or cultivation of a strong culture within ASDA. In other words, there is a conscious decision to shape strong culture within ASDA; cultivated by the decision to uphold these: to provide excellent service to the customers; to show respect for the individual; to strive for excellence; and to act with integrity. Given that, some of the influences from the formation of ASDA culture include the following: family-like corporate climate (a climate of trust, respect and supportive), strong engagement of employees, high levels of colleague loyalty and retention, as well as better corporate performance (both financially and non-financially).

Management process 4: act with integrity and conscience. One of the crucial management process that often overlook by many other companies in modern days, that is pursued by ASDA is concerning to make decision as well as to act with a conscience, dedicated to doing the right thing for its customers, colleagues and communities. In a way, such management process contributes to the enhancement of trustworthiness of ASDA, not to mention the strengthening of effective leadership process (that able to better lead and engage the employees). Other than that, to act with integrity and with a conscience had also contributed to the employer brand, which will be further discussed in the subsequent section below.

Management process 5: listen to others attentively. It is also noted from the case study that ASDA does engage in collecting feedback from important stakeholders, such as from the customers (in 2009), and even from the employees (in 2013). Such a process is critical to the continuous adaptation and improvement of ASDA in the competitive business environment. Through better understanding about the customers, it is then only possible for ASDA to align its other business process to meeting customers’ needs (Hughes, 2007). Then, through listening attentively to employees, it is possible to know employees better, and to deliver more personalised human resources management strategies and techniques to engage the individual employees.

Management process 6: effective workforce planning. ASDA is known for conducting audits to establish the organisation’s workforce requirements both now and in the future. Such management process contributes to the ability to provide the necessary human capital to support the growth of ASDA, as well as to ensure better successions planning.

Overall, it is valid to conclude that there are many management processes that were put in place by ASDA to effectively manage its workforce, and that these management processes indeed influence the other aspects of management, especially on the outcomes of the employees as well as the organisation. These management processes that are effective in contributing to the competitive edge of ASDA deserve serious attentions and learning from any manager, whom want to manage a business or human resources for success.

Part II (b): Influence of Employee Value Proposition

From a review of the literature, it can be noted that the concept of ‘employee value proposition’ (“EVP”) is quite a new concept, which is receiving more and more attentions from scholars. However, given that the concept is still relatively new, the definition of EVP will be provided below.

According to Hvisdos (2014), employee value proposition (EVP) is the policy or document that defines what an organization values and expects from its employees and what the organization provides in return to the employees. Yet, according to O’Regan (2012), it is however explained that EVP is about what employees can expect from the company and what the company expects from employees. Other than that, it is also common to note that EVP is also sometimes referred to as “employment deal” (Veal, 2011).

The key objective of EVP is to assign a value for an employee working for an employer, so that allow employee to think whether it is better to stay put or look for other employment (Cohen, 2004). It is widely believed or agreed that EVP can contribute to better human resources management process or employees outcomes (such as the behaviours or the attitudes of the employees). Among the influence of an excellent or effective EVP include the following: improved employee engagement, morale and productivity (Hvisdos, 2014; Zhang, Avery, Bergsteiner & More, 2014), better employer image, more efficient recruitment and improved job satisfaction (Heilmann, Saarenketo & Liikkanen, 2013), facilitate communicate and understandings between employees and employers (Veal, 2011; Hathi, 2011), useful in facilitating career development and ‘teaming environment’ within an organisation (Ee, 2011), more effective talent management outcomes (Bell, 2005; Ruebusch, 2002), enhanced staff retention as well as better corporate performance (Heger, 2007).

The theories or ideas gained from literature review, as presented above seems to stay true in the case for ASDA, whereby the company had leverage on its EVP for better performance, For example, ASDA do expect that the employee work effectively and efficiently to meet the needs and preferences of the customers (i.e., to ensure the satisfaction and loyalty of the customers), but will in return take proactive action in ensuring the satisfaction and loyalty of the employees. In that way, it is possible for the company to engage the employees to better serve the customers, which in the long run, would benefit both the employees as well as the employers. Overall, it can be concluded that EVP of ASDA had contributed to engaged, loyal, motivated and cooperative employees, which support the company to achieve its intended vision and mission.

Part II (c): Influence of Employer Brand

One greatest intangible assets owned by ASDA is about its respectable employer brand, which can be seen from the company ability to won numerous “Good Employer” awards. There are many influences from such intangible asset, and that will be discussed in this section.

From the review of literature, good employer brand can bring many benefits, such as: enhance attractiveness of a company to the job seekers (Christiaans & Buettgen, 2014; Baloch & Awan, 2012), talent retentions (Näppä, Farshid & Foster, 2014; Bonaiuto, De Dominicis, Illia, Rodríguez & Lizzani, 2013), enhance trustworthiness of an employer (Linn & Kenning, 2014), better employee satisfaction and commitment (Ito, Brotheridge & McFarland, 2013), and even on employees identification, engagement and loyalty on a firm (Bodderas, Cachelin, Maas & Schlager, 2011).

For the case of ASDA, it can be see that the positive influences on ASDA are many. Indeed, many of the benefits from excellent employer branding discussed earlier (from the review of scholarly literature) do happens for ASDA, such as: ASDA become trusted, ASDA able to maintain its position as a leading employer with an excellent reputation, ease of recruiting talents, ease of attracting and retaining human capital, better employees satisfaction, engagement as well as ability to service customers better.

Conclusion

Overall, this report had successfully discuss about several issues pertaining to human resources management in ASDA, that enable the company to eventually able to leverage on the employees for better performance (or in achieving its mission or business objectives). It is discussed that there are good indication that training and development is effective in helping Asda’s staff retention. Then, it is also learnt that many different management processes, when being implemented successfully, had contributed to the better corporate and employee outcomes (such as employees’ attitudes and behaviours). One important point is that EVP had seen to play crucial role in facilitating the people management process in the company, which eventually enable both the employers and employees to engage in win-win relationships in the long run. That many effective management processes, coupled with the useful EVP available to ASDA, had also contributed to superior employer brand for ASDA, which in turn again had further strengthen corporate competitive edge for ASDA.

 

References

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