1 Project Title : Importance of Diverse Work Force in retail industry; a case study on Tesco, Plc Objectives. Objectives can be used to analyse and evaluate the literature research, on the usefulness and the effectiveness of HRM practices which manage the diverse work force in retail industry. Its main objectives can be given as follows. To analyse the current HRM approaches used by the organisation for managing the diverse work force. To analyse the importance of diverse work force in retail industry. To analyse the advantages and disadvantages of diverse work forces in retail industry. To recognize the factors needed for attaining the competitive advantage through diverse work force in retail industry.
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Importance of Diverse Work Force in Retail Industry; A Case Study on Tesco, Plc
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Project Title:
Importance of Diverse Work Force in retail industry; a case
study on Tesco, Plc
Objectives.
Objectives can be used to analyse and evaluate the literature research, on the
usefulness and the effectiveness of HRM practices which manage the diverse
work force in retail industry. Its main objectives can be given as follows.
To analyse the current HRM approaches used by the organisation for
managing the diverse work force.
To analyse the importance of diverse work force in retail industry.
To analyse the advantages and disadvantages of diverse work forces in
retail industry.
To recognize the factors needed for attaining the competitive advantage
through diverse work force in retail industry.
In order to carry out the above objectives the following analysis are necessary.
1. What are the parameters that affect the relationship at work among
employees of different cultures?
2. What are the different HRM approaches taken by the organisation for
managing diverse work force?
3. How the organisation can gain competitive advantages through diverse
work force?
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Introduction
As the organisations are becoming more international that increased the level of
competitions in the business world. That caused new challenges in the global
markets and so the retail organisations are trying to develop new strategies for
reducing those issues. Thus they recognize the importance of diverse work force and
develop new strategies for managing them because the diverse work force is the
success factor of an organization. So the effective management of them brings
competitive advantages to the organization. That increases their importance and
they try to implement new strategies for managing the people having different ethnic
and socio economic back grounds. They keep different types of relations as per their
cultures. So this need to be materialized and must observe best practices to
manage them effectively (Albrecht 2000). So the organisations must consider the
local state federal laws, local country profile, the country culture etc for the effective
management of this diverse work force.
Research Background
This research proposal is intended to research and find out some real facts about
the diverse work force in retail industries. The topic of the research is “the
importance of diverse workforce in retail industry, a case study on Tesco”. The
human resources are very essential for an organization because they are doing
all the important functions of the organisations. As a retail industry is
considered, there are work force from different countries, regions etc. So it is
the duty of the management to handle and manage this diverse workforce
effectively. As a valuable and important resource, they must be given important
care because all the functions of the organisations are taking place with the help
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of these people. For that researcher can use the related primary or secondary
data for collecting information about their importance in retail industry.
Retail business is a booming industry of the current age. It is a vibrant industry
with lots of fastest changes. The word retail is taken from word retailer, means
cut into piece. They sell products and the services to customers for family as
well as individual use. The retail industry can be divided into different types
based on their size, the shape, the products and their services, the charging price
etc. They may be chain stores, supermarkets, speciality stores, factory outlets,
the franchises, discount stores etc. As the dynamic field, they offer employment
opportunities for diverse work forces. They offer about two million jobs around
the world (web, ref. 5)
Here the selected organization Tesco, as a retail industry, recruiting workforce
from different countries and they give excellent services to the customers. The
diverse workforce from different countries has different practices and culture.
Hence this research aims at evaluating the importance of diverse workforce in
Tesco for measuring its effectiveness and thus find out the pitfalls and
recommend the right corrective action.
Literature Review.
Introduction
The present era of globalization, enforce the world to mingle with diverse work force
from different backgrounds, cultures, believes etc. New developments in the social,
economical, political and demographical environment changed the countries to the
multicultural societies. In the present competitive environment it is essential for the
retail organizations to take effective strategies to gain competitive advantages in the
field. According to Green and his friends, the competitions arising from all continents
and diverse work force are the part of this world economy (Green et al, 2002).
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Diverse work force are the main axis that runs the retail industry, so the success
and the failures mainly based on the attitude of the diverse work force because of
the relevance and interdependency of one country with all other countries (Gupta et
al 2001). So the importance of diverse work force is a main factor for the retail
organizations and the managers have to decide upon the importance of these factors
and move with it.
The human resources are very essential for retail industry because they are doing all
the important functions of the organisations. As a retail industry is considered, there
are diverse work force from different countries, regions etc. So it is the duty of the
management to handle and manage this diverse workforce effectively. As a valuable
and important resource, they must be given important care because all the functions
of the organisations are taking place with the help of this diverse work force. For that
researcher can use the related primary or secondary data for collecting information
about their importance in retail industry.
Managing the diverse work force is an important factor for the retail industry. For
Tesco, an international retailer, having operations in about 14 countries, have lots of
diverse work force. It manages this diverse work force worldwide and that brings
some challenges also. So to manage the situation effectively they need to adopt
some approaches. The dissertation focuses on the importance of diverse work force
in retail industry and tries to analyze the strategies that help to manage this diverse
work force in their organizations.
Retail Industry
Retail business is a booming industry of the current age. It is a vibrant industry with
lots of fastest changes. The word retail is taken from word retailer, means cut into
piece. They sell products and the services to customers for family as well as
individual use. The retail industry can be divided into different types based on their
size, the shape, the products and their services, the charging price etc. They may be
chain stores, supermarkets, specialty stores, factory outlets, the franchises, discount
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stores etc. As the dynamic field, they offer employment opportunities for diverse
work forces. They offer about two million jobs around the world (web, ref. 5)
There are about three million people are working in the retail industry (data collected
March 08). That is equal to the 11% of total UK employees. (UK Retail Futures
2011: Sector Summary, Data monitor). For about the 8% of gross domestic product,
GDP, of UK is produced by retail sector. (Web reference 2). The retail sale in UK
was about £265 billion in the 2007 that is more than combined economies of the
countries like Portugal and Denmark (UK Retail Futures 2011: Sector Summary,
Data monitor). The jobs in retail industry are related to the economics and the
consumer trends.
The retail market in UK may increase 15% in size in the coming 5 years with a value
of £312bn (UK Retail Futures 2011: Sector Summary, Data monitor) even though it
slows down the annual growth and may faces challenges. British retail consortium,
the BRC, the trade association of the retailers is selling the wide range of products in
all centers and stores. It helps to get the right information about the retail business.
(www.brc.org.uk). in retail industry, the surviving sector is the electrical section and
with a growth of 24% (UK Retail Futures 2011: Sector Summary, Data monitor). The
retailers of home sector may face the tough period because of the falling prices of
houses and the people are more cautious on moving homes.
The changing concepts of diverse work force.
In this era of changing perspectives, there are many challenges in the business
world because of the changes in the views of diverse work force and the retail
organisation’s perspectives. The retail organisations try to attract very dedicated and
talented diverse work force by offering them high salaries and retain the successful
work force (Reference: web.04). The retail organisations are searching for the team
leaders, the creative thinkers, and the consensus builders. Also the diverse work
force is interested to work with the companies which offer them chances for the
growth and the opportunities. The diverse work force gets these opportunities via
cross functional teams, the lateral move and through different training programmes
(Reference: web.04).
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Employee.
An employee is an individual, borrowed by the employers for doing certain jobs and
there must be a strong relationship between the employee and the retail
organisation. (Reference: web.02). An employee is a labour that works as the tool
and her or his behaviour is manipulated for the profit of retail organisation and can
be replaced when that is dilapidated (Aswathappa 2008). They are the resources of
an organisation because they are being used for organisation’s benefit and also for
the benefit of the society and the employee (Aswathappa 2008). The diverse work
force consists of employees of different backgrounds.
In this age of globalization, the distance from one continent to other has decreased
and it shows the importance of the interdependency of one country with all other
countries (Gupta et al 2001). This is a hot topic to be discussed and still there are
controversy on globalization and it existence (Unger 1997). The controversy is also
on that globalization supersedes the nation and its pros and con (Strange 1996,
Wade 1996). But the accepted fact is it bring tremendous revolution and growth in
the field of business and helped retail organizations to make their operations
efficient, feasible and reliable (Gupta et al 2001). As a result of this globalization, the
retail organizations became more international and this brought new challenges in
this retail organization. This increased competitions so the retail organizations
changed their planning and strategies with the help of effective diverse work force.
The diverse work force is the success factor of an organization and the effective
workforce will bring success and competitive advantage over others. This helps the
retail organization to adopt new human resource management strategies (HRM) and
techniques for the success in future.
The diversity helps for employee developments. The changes in the society also
make changes in the retail organization (EfH 2003). If the business is extended
around the world it needed diverse work force of different places and countries.
Thus these heterogeneous diverse work forces are capable of satisfying the
diversified markets and the customers (Cunningham and Green 2007). It helps to
know the new opportunities and gain competitive advantages. So retail
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organizations encourage diverse work force of different cultures for making its
operation more effectively (Dwivedi, 2001). Retail organizations consider diverse
work force as most important asset. So the diverse work force are expected to know
the business functions, solve the problems, develop proper future plans and develop
the organization to run (web reference.2). The diverse work force is the human
resources for an organization and that is used for benefit of organization, society and
the diverse work force itself. (Aswathappa 2008).
The HRM concepts.
HRM is applicable to all sections of the management like in selection, manpower
planning, salary administration, performance appraisal, training and the management
developments (Mishra 2001). As per Mishra, HRM has three main concepts they are.
The diverse work force working for retail organization is a valuable source and
so it is essential to put effort and time for the development (Mishra 2001).
The human resources have own characteristics so it can’t treated as material
resource and this adds human values in organization (Mishra 2001).
The human resources are not only considering like individuals but also must
know the social realities, the units, the process etc of the organization (Mishra
2001).
The human resource management comes from personal management and the
behavioral science. It is a highly extensive and multidisciplinary approach from
beginning till end. This helps the diverse work force to develop competency for doing
the present and the future role in organization. These required the review of the
management processes for developing new approaches in organization (Niskala M
2004). As per the nature of the workplace the managers have to understand the
best practices using the very best strategies. As a result diverse work force can
achieve their needs and the organizational goals at the same time (Stredwick 2005).
The HRM is the management of the diverse work force and work of an organization.
The personal management is the non strategic, separate business, the reactive, the
short termed, and constrained. But HRM has wide concepts and that includes the
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development of the competencies of diverse work force and involves in the strategic
management also. It is art than a science. That is it is an art with pitfalls, the
judgment call, and it helps to learn from the past mistake (Mishra 2001).
Different types of diversity in workplace.
There are different types of diversity exists in work place. They may be of ethnicity,