Page 3: Human Resource Management (HRM)
HRM is one of the four key functions of any organisation, the others being finance, operations and marketing. HRM involves consideration of:
- workforce planning
- recruitment and selection
- motivation and employee recognition.
At the heart of HRM is the need for effective workforce planning. This involves conducting audits to establish the organisation’s workforce requirements both now and in the future. This information allows the HR department to plan to ensure they recruit appropriate numbers of workers with the required skills. The diagram illustrates an overview of the main stages involved in recruitment and selection.
Asda is a growing company operating in highly competitive markets. The main reason for recruitment at Asda is due to expansion of the business and colleague turnover. Colleague turnover occurs for a variety of reasons, for example, retirement of existing colleagues and internal promotion which create gaps. As part of Asda’s HRM it seeks to retain as many colleagues as possible and aims to fill 70% of its leadership team vacancies through internal promotion. Last year it exceeded this target with over 80% of its vacancies being filled internally. A benefit of promoting from within is that existing colleagues already share Asda’s beliefs.
Asda’s comprehensive HR strategies engage colleagues and support the organisational culture. This includes Asda’s ‘Best Welcome’ induction programme, ‘Star programme’ to recognise excellent customer service, as well as Asda Academy’s framework for training and development and its ‘Colleague Steps’ for career progression. Asda offers its colleagues a wide range of opportunities for career development. This includes supporting and investing in its colleagues to gain qualifications that will enable them to become the next generation of leaders at Asda. For example Asda offers:
- the industry’s first 3-year BA Honours degree in retail and distribution
- George retail foundation degree
- an accredited apprenticeship scheme (3000 apprenticeships in 2012).
Asda’s family environment and focus on colleague engagement means that the company has high levels of colleague loyalty and retention. The Big Asda Anniversary event recognises colleagues with long services from 25–45 years. The last event saw 1749 colleagues celebrating milestone anniversaries with the company. Asda’s commitment to its colleagues has resulted in the company’s labour turnover decreasing in recent years.