ASDA PLC Human Resource Management Case Study

Introduction

Management of human resources — or "people working in an organization" — is among the most pressing challenges that managers face today. It is widely recognized as a leading source of concern for nearly every organization. When the effects of organizational culture and structure, or the behavior of groups and individuals, are considered in light of organizational performance, such a study is referred to as organizational behavior. To this extent, such a study attempts to define the efficiency and performance factors of an organization. Two of the most important and closely correlated performance factors are organizational culture and organizational structure, both of which principally define the desirable form an organization should take in order to drive above-average performance. Essentially, job satisfaction and employee turnover are closely tied to the culture of an organization (Bolden, 2004).

When an organization cultivates a solid culture of high employee retention and internal mutual respect, this augurs well for the stability of the organization (Tracy, 2013). This paper strives to clearly delineate the association between organizational structure and organizational culture. To highlight this link and gain vivid insights, we take a general view of a reputable UK firm known as ASDA PLC (Prime Research & Consultancy, 2014). Through this case study, we endeavor to show how ASDA's selection and recruitment process, coupled with strategies of strong colleague engagement and effective leadership, combine to enable the firm to meet its mission and objectives.

For the purposes of this study, the culture of an organization is defined as a set of shared attitudes, values, and beliefs (Jones, 2007). Employees in an organization can take direction on how work is expected to be done by taking cognizance of these factors. At the same time, for the general success of the organization, it is imperative to pay attention to the culture, rituals, and internal environment within the organization. The rich organizational culture inherent in ASDA greatly contributes to its success because it is strongly rooted in the empowerment of employees throughout the entire organization, stipulating how employees relate to one another and how they should treat their customers. The company holds a strong conviction that business can be remarkably improved when the interests of all concerned are taken seriously into account. To this end, the major drive of the organization is to maintain exceptional customer relationship management, the provision of excellent and quality services, and to give customers an invaluable and unique experience (Prime Research & Consultancy, 2014).

Overview of ASDA PLC

The company now known as ASDA Stores Limited was established in Leeds as Associated Dairies & Farm Stores Limited in 1949. When the Asquith chain of three supermarkets and Associated Dairies merged in 1965, the name ASDA came into being. Often capitalized, the acronym ASDA stands for Asquith and Dairies. This is one of the most vibrant supermarket chains in Britain, specializing in financial services, general merchandise, toys, clothing, and food. With its head office located at ASDA House in Leeds, West Yorkshire, ASDA also operates a reputable mobile phone network. In 1999, the company was incorporated into Walmart, the American retail giant, and it is presently the third largest retail store by market share in the UK, behind Sainsbury's and Tesco. Its share of the UK grocery market stood at 16.4% as of October 2013 (ICM, 2014).

When ASDA joined Walmart in 1999, it became the beneficiary of the full range of expertise and experience that Walmart had to offer, while also enabling Walmart to gain a market foothold in the UK. This makes ASDA one of the largest employers in the UK, with a workforce totaling over 175,000 personnel engaged in various aspects of its diverse operations, while Walmart employs over 2 million individuals across 27 countries worldwide. While continuing to expand its UK operations, ASDA participates in a variety of product and service provision, including managing Superstores, distribution chains, Supermarkets, a Home Office, and ASDA and George Living. It recently acquired additional chains from Netto, greatly increasing the number of its local supermarkets (The Times 100, 2014).

In order to remain a trustworthy employer and a leading retailer, ASDA relies on training its personnel to the highest standards of excellent service provision. Its guiding philosophy holds that customers will enjoy shopping with you only if your employees are also satisfied and enjoy working for you. As a result, ASDA stresses the importance of ensuring that all workers treat their colleagues equally and that all personnel are passionate about helping one another in a family environment of mutual respect and trust. Among the many awards ASDA has received in recognition of its commitment to treating all personnel fairly are Stonewall Top 100 Employers 2012, The Times Top 100 Graduate Employers, and The Sunday Times Top Best Companies to Work For (The Times 100, 2014).

With a total of 150,000 personnel whom the firm refers to as "colleagues," ASDA also employs an additional 60,000 full-time and 90,000 part-time workers. The company has featured numerous times in various "Best Companies to Work For" lists, and in The Times newspaper list of 2005, it was ranked second.

One aspect that makes this chain popular is the 10% discount it offers to customers on many basic items, with the exception of lottery tickets, gift cards, tobacco-related items, and fuel stamps. In 2006, ASDA was fined £850,000 after persuading approximately 340 employees at a Dartford depot to drop their claims under a union collective bargaining agreement by offering them a pay rise. This situation was compounded by the organization's continued efforts to formulate new working practices and rights at another distribution outlet in Washington, Tyne and Wear. Fortunately, by June of that same year, an amicable compromise was reached between the GMB union and ASDA's management, with a five-day strike being called off. Since then, the relationship between ASDA's management and the GMB has greatly improved, particularly when both sides commemorated the death of a worker on Workers' Memorial Day in 2010.

Difficulties arose again in 2013, when hundreds of thousands of personnel across the UK faced serious tax anomalies due to an error in the organization's payroll system. Because ASDA employees are paid every four weeks, once every twenty years they receive their pay fourteen times in a year rather than thirteen. Although many organizations accommodate such a discrepancy without incident, ASDA's payroll system did not capture this properly, meaning many workers inadvertently underpaid their taxes for that year. As a result, some part-time and full-time employees received demands from HM Revenue & Customs ranging between £72 and £160 (ICM, 2014).

Present and Targeted HRM Strategy of ASDA

The structure of an organization encompasses its leadership, culture, and internal and external environment; every organization has some form of hierarchy, whether informal or formal. Patton and Higgs (2010) contend that organizational structure refers to the hierarchical layout and the existing chain of command. For this reason, large organizations such as British Airways and ASDA maintain a formal hierarchical structure, which gives them stricter regulations and rules and a more formalized organizational form. Due to its clear chain of control and line of command, ASDA's formal hierarchical structure means that many people are answerable to more than one individual across regimented stages of decision-making and multiple levels of command. This kind of formal hierarchy functions best in a large and diversified organization such as ASDA. One challenge ASDA faces is that, despite the order of seniority, personnel working together in the same section or department often do so on a broadly equal footing (Glassdoor, 2013). This dynamic also creates room for employees to pursue competitive pay based on competence and performance (Prime Research & Consultancy, 2014).

Alongside operations, logistics, finance, and marketing, human resource management is one of the four main pillars of any organization. It encompasses important aspects such as the selection and recruitment of personnel, workforce planning, appraisal and training, recognition of employees, and worker motivation. What forms the core of ASDA's success is its organizational culture, which has been developed over a long period and stipulates how employees ought to conduct themselves — covering how employees relate among themselves, how they treat customers, and how they engage with external stakeholders. All elements of ASDA's operations and service provision are regulated by a culture of trust, as this is an organization whose operations are guided by conscience and a commitment to doing the right thing for the community at large, its personnel, and its customers. Behind every decision an employee makes is a strong conviction rooted in ASDA's working etiquette, which in turn drives a culture of excellent customer service, commitment to maintaining excellence, working with integrity, and showing respect to all individuals regardless of their designation within the organization (The Times 100, 2014).

In order to understand what its customers thought about the organization, ASDA carried out a survey in 2009. From the findings, the organization was able to formulate its "customer promises," outlining what expectations customers should have of ASDA. Following the success of these promises, the company replicated the approach with "colleague promises," which were included in the annual employee survey of 2013, known as "Your Voice." This survey evaluated every member of personnel across the entire organization, from the Home Office and distribution channels right through to business stores. The four promises made to colleagues were a clear indication of the organization's commitment to providing its workforce with a conducive working environment, encompassing fair opportunity for everyone, justice at work, pride in ASDA, and respect for all (The Times 100, 2014).

The comprehensive HR strategies embedded in the organization enable ASDA to maintain its organizational culture and ensure adequate support for all colleagues. These include elements such as the "Star Promise" in recognition of best customer care, a best-in-class welcome and induction program, and the organization's training and development efforts through its academy, known as "Colleague Steps," for career advancement. ASDA provides all employees with ample opportunities for career progression, supporting them through investment in training so that they acquire the skills necessary to rise to managerial roles within the organization. For instance, ASDA offers learning opportunities such as the George Retail Foundation Degree, undergraduate BA (Hons) degrees in distribution and retail, and an accredited apprenticeship scheme that enrolled 3,000 apprentices in 2012.

ASDA's focus on engaging with its personnel and providing a family-like working environment enables the business to retain employees at a considerably higher rate while also commanding strong employee loyalty. Employees with long service records of between 25 and 45 years are recognized and awarded during the Big ASDA Anniversary events. The most recent anniversary event hosted by the company saw over 1,749 employees celebrating milestone anniversaries. The company's labor turnover has decreased significantly in recent times as a result of its commitment to its workforce (The Times 100, 2014).

Conclusion

The understanding and appreciation of group and individual behavior, and the efforts made to develop efficiency within any organizational structure, are the most important elements of success in any business setting. This can only be achieved by motivating personnel through directing them to accomplish their various tasks and by ensuring that they cooperate, share information, and work in an environment of utmost trust. Considering all the factors discussed above, it is fair to conclude that ASDA PLC is moving in the right direction, since the major goal of the organization is to maximize the advantages of sound organizational structures and a culture that contributes to employee satisfaction. It is for this reason that every effort is made to appreciate the culture of employees, understand their needs, and fulfill them in the best ways possible (Prime Research & Consultancy, 2014).

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