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ASDA Human Resource Management

Paper Type: Free Essay Subject: Commerce
Wordcount: 3688 words Published: 8th Jun 2017

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The objectives of this report are to stimulate the Human Resource Management, Human Resource Planning and Development, and Performance of ASDA. Furthermore, it explains the human resource management activities, models of human resource management, effectiveness of organisational objectives, performance monitoring of ASDA. Additionally, it also address, the importance of staffing, performance appraisals, compensation and benefits, training and development, employee and labour relations, safety and health, and human resource research. It discusses how the Human resource management works to ensure that employees are able to meet the organization’s goals.

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A brief introduction of ASDA:

ASDA group of company operates as one of the largest food retailers in the United Kingdom. The company’s stores sell a wide variety of merchandise including food and apparel, along with house wares, music videos, and books. ASDA has approximately 259 stores in its arsenal-each avenging nearly 42000 square feet with some as large as 100000 square feet. The company, once known as a dairy conglomerate, was acquired by Wal-Mart stores Inc. in 1999. TESCO has 31.1 per cent of the UK grocery market while ASDA’s share is 16.4 percent. My familiar organisation is ASDA and I will answer these tasks using ASDA.

Human Resource Management (HRM)

Human Resource Management activities:

HRM activities designed to enhance the effectiveness of an organisation’s work-force in achieving organisational goals. HRM consists of numerous activities, including:

  • Equal employment opportunity (EEO) compliance.
  • Employee recruitment, selection, motivation and orientation.
  • Performance evaluation and compensation.
  • Training and develop skills.
  • Development and evaluation.
  • Safety, health and wellness, etc.

Recruitment and selection:

The success of an organisation depends on having the right number of staff, with the right skills and abilities.”Recruitment involves the utilization of organizational practices to influence the number and types of individuals who are willing to apply for job vacancies (Rynes, 1991; Rynes & Cable, 2003).

ASDA has always tried to keep it as simple as possible but they’re a big company and want to be sure that application is seen by the right person. Step one: At First ASDA score submitted application. ASDA has a specific jobs advertisement on their website. Step two: The application process of online will usually include some verbal, numerical and personality tests, as well as an application form. Step three: ASDA’s employer may ask applicant to attend an interview.

Objectives Of recruitment and selection:

  • The objectives of the recruitment and selection process of human resource management are given below:
  • To acquire, retain and develop the best talent and skills.
  • Keep the expenditure of selection down.
  • Make certain that the applicant selected will desire the job and stick at ASDA.
  • To obtain the number and quality of employees that can be selected in order to help ASDA to achieve its goals and objectives.
  • To identify the most appropriate candidate to fill each post.

Achievement of recruitment and selection:

ASDA always look for a candidate with solid experience and new ideas and a fresh perspective. Applications may be completed online or visiting an ASDA store and getting an application form. ASDA is determining for present and future manpower requirements to coordinate with planning and job analysis activities.

Training and developing skills:

Training is a planned process to modify attitude, knowledge or skill behavior through learning experience to achieve effective performance. Training is to develop the abilities of the individuals and to satisfy the current and future needs of the organization. A company like ASDA if an employee lacks training is risky for fire, chemical and other health hazards.

Induction: ASDA have Award Winning ‘Best Welcome’ induction is the best way to get up to speed with their business and find to feet as quickly as possible. Store Appreciation Day: A new comer will have the opportunity to attend a store appreciation day after his Best Welcome induction to understand how their stores operate. Growing career: ASDA will work to help grow talent to build up career with them. The new training programme is divided into two parts – the first is the ‘service’ day, the second day is devoted to selling skills.

Objectives of training and developing skills:

The objectives of the training and develop skills of HRM are given below:

  • To staying competitive, training is the key to sustainability.
  • Reduce wastage and accident rates.
  • To keep staff motivated and up-to-date with industry trends and new technologies is essential to achieving that goal.
  • Increase job satisfaction and motivate workers.
  • Establish the most effective and efficient working methods.

Achievement of training and development:

ASDA follow an ideal step by step process to train and develop their human power. They hire attitude and train for skill and practical experience. ASDA have created some innovative and effective ways for staff’s to learn. Their training and development programs have been designed to reach a senior role within five years.

Benefits and rewards:

Benefit and Reward may cost a lot but it is important for further achievement. It promote employee to give high performance. Likewise, holyday payment, Colleague discount voucher, Pension etc influence people to give their 100% effort where they works. Colleague discount: After 12 weeks, ASDA provide Colleague Discount Card. Bonus: Their bonus scheme is designed to recognize and reward colleagues for their valued contribution. Flexible working: ASDA offers the opportunity to do everything from swapping a shift.Pension: ASDA Pension Plan is a great addition for retirement. Night Manager Allowance: Night Managers receive an extra allowance of either £3000 or £5000 per year depending on the responsibility of their role.Voluntary benefits: ASDA gives colleague benefits, like recognition, Long service awards etc.

[Source: http://www.asda.jobs/all-about/index.html]

Objectives of benefits and rewards:

The aims of benefits and rewards of HRM are to:

  • Achieve high performance from the staffs of an organisation.
  • Make better life and certain future for staffs to get total output.
  • Ensure workers concentrate 100% on their work.
  • Encourage employees to think and better plan for the success of the company.

Achievement of benefits and rewards:

To achieve organisational success, a company must have to maintain the benefit, reward and compensation scheme. In 2008, ASDA paid out nearly £38 million to 17,000 colleagues who planned to spend their cash on anything from horses, to shark dives to laser eye treatment! Voluntary benefits, Safety, Compensation, Wellness, Rewards, etc encourage employee to work or give 100% for the organization.

Theoretical models of human resource management:

Human Resource Management is generally performance or behaviour based. There are different types of theoretical Models of Human Resource Management. Among them two models are explained as below:

Guest’s model of HRM:

David Guest’s (1989, 1997) adapted the Harvard model to develop his model based upon four outcomes. These are: 1. Strategy integration, 2.Commitment, 3. Flexibility, 4.Quality. The guest model has 6 components:

  • HRM strategy
  • HRM practices
  • HRM outcomes
  • Behaviour outcomes
  • Performance outcomes
  • Financial outcomes

Following Guest model ASDA takes some HRM strategies and practices to achieve some outcomes. It also tries its best to encourage employees through different activities for obtaining behaviour outcomes. Along with Handy, there are four types of culture; Power, Role, Task and Person. ASDA culture combines two of these. Top management of ASDA reveals ‘power’ culture that makes the overall decisions. Other one is the ‘task’ culture. In ASDA the overall aim of the organisation is task orientated and focussing on team customs, and powerful message between all levels of staff. ASDA has integrated the contingency approach by considering the environment culture.

The Harvard model of HRM:

The Harvard model was produced by Beer, Spector, Lawrence, Mills, and Walton in 1984, which is consists of six components

1. Stakeholders interests

2. Situational factors

3. Human Resource Management policy

4. Human Resource outcomes

5. Long term consequences

6. A feedback loop through which the outputs flow directly into the organisation and to the stakeholders

The Harvard Model is emphasised as the ‘soft’ approach to HRM, employees like stakeholders of the company. In this model has discussed four areas such as, reward system, employee influences, human resource flow, and work systems, there are also included situational factors such as influence of trade unions, labour market, and laws. According to the Harvard theory, ”employees are an asset rather than a cost.” In ASDA, the line managers are in charge for people and store managers are in charge for the day to day running as a combination of both the hard and soft approach. In

Task-2: Human resource planning and development


Organizations must be highly selective in identifying talented employees and developing and enhancing their skills to reach their full potential. HR planning: identifying human resource needs, career building, succession planning, and the development and implementation of a career development program. “Human Resource Planning is systematic continuing process of analysing an organisation’s human resource needs under changing conditions and integrating this analysis with the development of HR policies appropriate to meet those needs”.

[Stephen P & Marjorie C, Peoples Resourcing Contemporary HRM in practice, Chapter 4, Page-90 (3rd edition)]

Human Resource Planning (HRP):

HRP is not just the production of ‘manpower plans’ and futuristic scenario planning, but needs to be seen as an important dimension of almost all aspects of HR. The planning of human resources becomes a search for those individuals who now and in the future will contribute most to the success of the organization. Employers have not only to acquire appropriate people to resource it, but they also need to train and develop them, for the following reasons as illustrated by Dressler, G (2003).

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Human Resource Development (HRD):

Human Resource Development (HRD) is about develop people to improving recruitment and retention, improving competitiveness, implementing competitiveness, implementing new technology, improving customer service for enhance the organisation’s ability to compete with globalisation or competitive business world effectively. For worker development, human resource development (HRD) is the structure. By which, workforce can develop their personal and organizational skills, knowledge, and abilities.

(Source: RDI DMS course material of HRM)

Three HR Planning and development models:

There are various human resources planning or development models. We look at three models which given below:

  1. Open new product line
  2. Open new Store and distribution system
  3. Develop staffing for new installation:
    • -production workers
    • -Supervisors
    • -Technical staff
    • -Other managers
  4. Recruit skilled workers
  5. Develop technical training programs
  6. Transfer managers from other facilities
  7. Recruiting and training programs feasible
  8. Transfers infeasible because of lack of managers with right skills

Basic Human resource planning model and its effectiveness in ASDA:

  • Too costly to hire from outside
  • Develop new objectives and plans
  • Recruit managers from outside

Human Resource models are made according to the organizational objectives and plan requirement for attaining human resource goals. Furthermore, human resource objectives are straight related to the organizational objective and planning. To open a new branch of any company, Human Resource department need to think about production staffs, line managers, business manager, technical staffs and etc. Workforces are valuable for implementing the new product line, factory, distribution system, and achieving organizational goads. HR department of ASDA recruit skilled workers, develop technical training programs, and transfer managers from other facilities with right skills. ASDA involves forecasting outcome of various HR programs for employee flowing into, all the way through and out a variety of job classifications. They develop training programs regularly and broadly which are reflected in their activities.

Attwood’s Human Resource planning model and its effectiveness in ASDA:

‘Human resource planning attempts to analyse likely influences on the supply of and demand for people, with a view to maximising the organization’s future performance,’ Attwood (1989)

Attwood decorated the planning for people in organizations that involves trying to obtain the right people, in the right numbers, with the right knowledge, skills and experience, in the right jobs, in the right place, at the right time, at the right cost. Following the Attwood’s Human Resource Planning model, ASDA tries to do actions of supplying and making demand for the people to maximizing its future performance. ASDA also makes projects of future availability of key staff. This model adjusts and matches between current staff and future plan for its staffing terms. Then it makes evaluation of substitute approaches of dealing with these. Then ASDA selects the best substitute to reach its better HR planning. Following the Attwood’s Human Resource Planning model, ASDA does analysing of current staff in organization and personal trends from personal records.

Workforce planning model and its effectiveness in ASDA:

Workforce planning is the system of analysing an organisation’s probable prospect needs for people in terms of data, skills and locations. This model allowed the company to diagram how those requirements can be met through recruitment and training. The main policy of this model is to make a right proportion of recruitment which is suitable for the organisation. It is very significant for a company like ASDA to plan ahead by following this model for better performance of workforce.

ASDA is applying a workers planning diagram to set up the possible require for new workforce. This one considers executive and non- executive positions. In 2009/2010, for instance, ASDA estimate that to maintain their trade development there will be a demand for approximately 1,800 new managers. So, ASDA can adjust employment levels and recruit where needed. ASDA is looking to fill many vacancies within the company following this model.

Task-3: Performance


Performance management is a process for sharing an understanding about needs to be achieved and then managing and developing people in a way that enables such shared objectives to be achieved. It is always important for managers and supervisors to get the best performance from their workforce in terms of levels of production and quality of output. Armstrong and Baron (2005) define performance management as a process which; “contributes to the effective management of individuals and terms in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure it is achieved”. The purpose of performance appraisal is to enable employees to gain a clear picture of how they are performing in the organisation and to identify areas where they need additional support and training. Performance management is the method of making a work environment or setting in which people are enabled to perform to the best of their abilities.

The five key elements of the performance appraisal are:

  • Measurement
  • Feedback
  • Positive reinforcement
  • Exchange of views and contract.

Monitored HR Performance in ASDA:

In ASDA, performance development reviews throughout the year and also formal appraisal interviews at regular intervals. ASDA can improve Benchmarking but they have to set standards and monitor the progress of themselves and competitors. For instance, setting goals, monitoring the employee’s accomplishment of those goads, contributing feedback with the employee’s, evaluating the employee’s performance, rewarding performance or firing the employee. ASDA is a huge organisation and they know that the secret to being successful and reliable is to provide good Customer Service. ASDA monitor the customer service progression via Benchmarking. This method in used by many organisations and is helped to show the performance of Customer service with other supermarket outlets. ASDA believe that the best approach to accomplish ‘value for money’ is to monitor the performance levels of staff and want to reduce wasteful actions.

Effectiveness of Performance in ASDA:

By monitoring improvement, departmental managers or business managers can assess the efficiency of employees and determine which ones are meeting the terms of their agreement and contributing to ASDA’s success. ASDA monitoring is the quality of work being produced that is one of the features and the efficiency levels within departments.

1. Assurance that the right people are in the right place at the right time.

2. The improvement in the short-term outcomes such as attracting applicants, maximizing performance, and minimizing dissatisfaction and stress is made in order to retain valued employees.

3. HR planning will serve as a thread that ties together all other human resource activities and integrates these with the rest of the organization.

4. Balancing present needs-of organizations and their employees for the future.

Balance score card (BSC):

The balanced scorecard (BSC) is the most widely applied performance management system today. The BSC was originally developed as a performance measurement system in 1992 by Dr. Robert Kaplan and Dr. David Norton at the Harvard Business School. Unlike earlier performance measurement systems, the BSC measures performance across a number of different perspectives-a financial perspective, a customer perspective, an internal business process perspective, and an innovation and learning perspective. Through the use of the various perspectives, the BSC captures both leading and lagging performance measures, thereby providing a more “balanced” view of company performance. Leading indicators include measures, such as customer satisfaction, new product development, on-time delivery, employee competency development, etc.

ASDA balanced Scorecard:

  • Total Management commitment
  • IT solutions for results reporting
  • SMART Target setting – how does this Work?
  • Linking reward and recognition to scorecard performance
  • Cascading the BSC throughout the business
  • Transferring ownership of the target & measures to individuals
  • Business planning the BSC way.

Suggest ways to make Improvements:

Sometimes, we see that poor performance lead to dismissal. Without checking, if wastefulness is allowed to continue, staff will lose interest, motivation will be concentrated and no encouragement to produce good quality products or services. Extra information on how to make improvement in the HR of ASDA is summarized as a suggestion as follows:

1) Choose the composition of the audit team: There has to be a representative from the HR function and from among senior line managers.

2) Recognize the function’s main customers: The key decision is to clarify who makes the final decision to buy the services provided by the function.

3) Reconsider the HR function’s mission statement: This statement describes the reason for the HR function’s existence.

4) Reconsider the HR function’s role in developing relevant HR policies and practices

5) Make internal comparisons to establish ‘best’ practice: The organization need to build and constantly update a unique database of HR practices that gives an overview.


They should to do constant reviewing of their Human Resource Development, and make adjustment are necessary. They should do demonstrate a model implementation of HRP. They should improve their HR sector to reach an ultimate goal.

Suggested improvements: ASDA should-

  • reduce employee turn over
  • give confidence to long-term employment
  • support training allowing employees progression to superior job opportunities
  • increase their employee’s wages
  • make recruitment strategy efficient
  • let the employee enjoy more wealth of benefit
  • include bonus
  • keep continue environmental improvement


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