Buyit is a supermarket chain consisting of over 500 stores throughout the UK. It aspires to open a new store monthly. There are three management teams which oversee the opening and then operations of the stores. Of the three teams, first one identifies the location for the store. A second one oversees the development and the third which runs the store.
Buyit will be opening a new supermarket in a residential area near London. In this report, that store will be analysed. It will identify how it should recruit a preparing and then operating teamWhat procedures will be in place and how reward will be managedAnd lastly it will point out key items that should be included in a management handbook for the store.
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1. How should Buyit determine the number of staff to recruit, and what approach should it take to the recruitment process?
Buyit requires two set of teams to prepare the store for opening and then operating the store. It should use Human resource planning to determine the required human resources to attain its strategic goals. This consists of demand forecasting, which is the forecasting of people needs, supply forecasting which is forecasting of the people availability and planning to matching supply with demand (Armstrong 2006). It needs to consider what kind of work is being done, what skills can be needed and these forecasts should be based upon annual budgets, organisational aims and business plans (Jackson, Mathis 2008). There are various forecasting methods that can be used for human resource planning such as expert judgement, ratio trend analysis, work study techniques and supply & demand forecasting (Armstrong 2006). In the case of Buyit, the mentioned three techniques will be most effective. This is due to the reason that it already has over 500 running stores in the UK. For the new branch opening around London area, it can learn from existing human resource planning such as past ratio trends and management forecasting for skills and competencies from these existing 500 stores. Through this Buyit can assess the requirement of people with skills and competencies based on these forecasts. If the availability is short then it must identify skill gaps and progress towards filling them. Furthermore, Buyit can also invest in Human Resource Information Systems (HRIS). These systems use advanced computer technology based on statistics analysis to determine the human resource supply and demand and assist in reliable forecasting. (Armstrong 2006).
After determining the number of staff that needs to be recruited, Buyit must create a recruitment plan based on its analysis and forecasting results. The recruitment plan can begin by creating role profiles and advertising them. Buyit can then use various recruitment techniques such as internal resourcing, external resourcing and flexible working as explained below to attract candidates.
Internal resourcing methods use internal communication methods within organisations to circulate job postings and attract candidates. An ideal example of this would be listings on a company’s intranet for vacancies. This is very beneficial as applicants through this route will already be aware of organisational structure, culture and procedures. Furthermore, it is very cost effective as company does not need to pay elsewhere for job postings (Armstrong 2006).
External resourcing methods use resources not directly available to organisation to advertise vacancies. Examples of these methods could be job listings on notice boards in store or on store website, vacancies through local jobcentre plus. Furthermore, Specific jobs such as pharmacists, chefs etc can be advertised on online job listing websites such as monster.com etc and magazines or newspapers.
Flexible work is where organisations offer flexibility of duties as well as work patterns. This kind of work mostly attracts parents, students and part-timers. Examples of flexible work include part-time work, shift base or work from home opportunities. These vacancies are highly desirable and attract candidates from across the spectrum as they allow individuals to multi task and work around their existing schedules. (Gia 2009)
2. How should reward be determinedHow would you address the two issues that are identified in the case studyWhat are the problems and benefits of the approach you recommend?
The rewards that any organisation offers to its employees significantly contribute to their performance and motivation (Drummond 2000). Rewards systems provide guidelines and outline policies and procedures that manage fairly how reward is allocated to employees. Reward management systems will effectively provide reward to those employees that aim towards achieving organisational and personal goals while contributing to its organisational culture and norms. Various methods for determining rewards include basic, performance based or overtime pay. Furthermore, although wages are what attract employees the most, they don’t always value monetary reward but are more interested in their work experience, professional development and other benefits such as pension plans, insurance covers, etc.
These rewards can be managed by having a performance based appraisal in place through performance agreement between the employers and employees. (Jackson & Mathis 2008) These performance agreements can outline what is expected of the staff, what behaviour will be appraised, the achievement of personal and organisational goals as well as teamwork etc. Moreover, assessments based rewards can be awarded based on the quality of work and customer care etc. This will not only help to determine reward allocation but also aid in setting the organisational direction and planning and altering of strategic goals (Armstrong 2006)
In the case of Buyit, their reward management system faces few challenges in determining rewards for its staff at this new particular store. First issue stems from the fact Buyit has a national reward policy where all employees are rewarded equally, this policy is not effective for the new store as living expenses in area surrounding London are very high compared to the rest of the country, due to this a national reward policy is not that beneficial to employees in this particular store as their living expenses are much higher as compared to employees at other store locations. Secondly the other issue it faces is that there are already existing competitors in this area that offer better wages to employees.
To overcome these issues and not violate its overall reward strategy of fairness and equity, Buyit should offer the same wages as it does to all other national branches. Although there is a discrepancy in the living costs between the new store area and the rest of the country, Buyit can compensate its employees by providing better workplace environment and benefits. Currently competitors in the area offer higher basic wages but lower benefits. Buyit can use that to its competitive advantage and offer its employees a better work experience which keeps its staff satisfied, they can offer then total reward which is a beneficial combination of both financial and non financial rewards (Drummond 2000). It can do so by creating a better working environment, introducing competitive and motivational strategies and improving benefits while keeping its wages the same.
Better Workplace: By offering a better workplace, with modern facilities such as better lunch and amenities, coffee breaks, clean and organised workspace, modern efficient technology etc Buyit can attract more employees and also employees from competitors as all these factors contribute to a workplace that is stress free and promotes healthy work relations (Gia 2009).
Competitive and motivational strategies: Buyit can use competitive and motivational strategies in the store to increase efficiency of its employees and promote teamwork (Armstrong 2006). It can reward them based on their performance as both individuals towards achieving personal and organisational goals. This can be done by introducing monthly schemes such as offering employee of the month or team of the month award. Furthermore, Buyit can introduce performance based rewards in not only monetary form but also in the form of promotions, improved pension or insurance plans that other competitors lack in the area. (Drummond 2000)
By doing all this, Buyit will attract employees that are more interested in their work experience rather than those who are in only for the money since employees that are concentrated on personal development and feel like part of an organisation tend to perform better and benefit the organisation more so.
3. What are five most important things that you would include in the management handbookJustify why you have selected these issues.
A management handbook is a collection of set of guidelines that must be adhered to and considered in the workplace. When creating a management workbook for Buyit the following sections must be included in its management handbook ensure that human resources of Buyit work efficiently and adequately to achieve the overall organisational goals. The five most important topics that must be included in their management handbook would be company policies, appraisal and benefits, customer care, company procedures and health and safety.
1) Company Policies
This section should be included in the management handbook as it outlines policies regarding issues that can arise and need to be considered in the workplace. Examples of these policies are absence policy, which will dictate what Buyit’s stand is on attendance and days off. Personal appearance, which will dictate if any uniforms must be worn or if a dress code is implemented. Tolerance drugs, violence or alcohol. Holiday policy which will cover annual, maternity & parental leaves. Harassment and discrimination policy which must outline Buyit’s tolerance against harassment or discrimination of any kind.
i. This topic is important and should be added into the management handbook because these company policies outline what behaviour is accepted in the workplace. Moreover it helps to shape the culture and norms of an organisation.
2) Appraisal & Benefits
This section should also be included as it allows for management to understand how their performance is appraised and will be rewarded. By ensuring this is understood, employees will be motivated to work more efficiently to achieve appraisal and benefits. Buyit encourages its branches to approach motivation based on its workforce, therefore a mix of both needs based and performance based system would be beneficial to motivate the workforce. This is because it will provide them with not just tangible reward but also job satisfaction, which will lead to better motivated and efficient human resources. Examples of topics covered under this section can be increased productivity and performance. Having low customer complaint levels and the related rewards.
i. Appraisal & benefits is an important topic because it provides clear guidelines to the management regarding what they need to do and what behaviour will be rewarded and praised. In addition, it allows for performance and development management opportunities.
3) Customer Care
Customer care section should also be included in the management handbook as it will explain clearly how customers are to be treated at Buyit. This is something that needs to be clarified amongst all human resources because customers are an organisation’s most important need and therefore they must be satisfied. This section should outline how customers are to be cared for, how to deal with their complaints and what the consequences for mistreatment of customer could be.
i. Customer care should be covered because it helps to set standards for the treatment of one of the company’s biggest assets, its customers. Furthermore, it clearly informs the staff of consequences towards mistreatment of customers.
4) Company Procedures
This section is also very important because it outlines practices that need to be held fast to. These procedures help the management to perform better as they set guidelines and provide instructions for how things must be done within the workplace. Examples of these procedures include how Buyit will stock shelves, how the pharmacy or bakery section will run etc.
i. Adding a company procedures section in management handbook allows employees to be aware of how their organisation functions and what practices are undertaken. This supports the smooth functioning of Buyit stores.
5) Health & Safety
Lastly a health and safety portion must be added to every organisation’s management handbooks. This section is of the utmost importance as it advises employees on how to act to prevent accidents and what to do in case of emergencies. The Health and Safety at Work Act must also be part of this portion. Furthermore, for the purposes of Buyit, it must include instructions to carrying heavy loads and lifting items properly while stocking and moving around the store to prevent any injuries from occurring. Moreover, this section can also be used to explain about emergency procedures, fire escape plans and any accident reporting.
i. Health & safety is a must because it provides instructions as to how workplace accidents can be prevented.
Armstrong, M. (2006) A Handbook of Human Resource Management Practice, 10th edition.
Drummond, H. (2000) Introduction to Organizational Behaviour
Jackson, J.H. Mathis, R.L (2008) Human Resource Management, 12th edition
Gia,K. (2009) Talent Management: Recruitment Methodologies – an Overview
Hoffman, R (2001) When is it time to hire more employees?, [online] Available : http://www.inc.com/articles/2001/10/23559.html Accessed 26th April, 2011
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