Coles Supermarket in Australia - Case Study Example

Running Head: COLES SUPERMARKETS IN AUSTRALIA Title: Coles Supermarket in Australia Name Grade Tutor’s Name Date TABLE OF CONTENTS EEXCUTIVE SUMMARY……………………………………………………………………...3 INTRODUCTION ………………………………………………………………………………4 1. Internal structure………………………………………………………………………….4 COLES GROUP...………………………………………………………………………………..5 1. Suppliers…………………………………………………………………………………..5 2. Careers…………………………………………………………………………………….5 3. INTERNAL ENVIRONMENT & ITS IMPLICATIONS….…………………………….6 (a) Remuneration policy and principles…………………………………………………..6 (b) Market competitiveness remuneration policy………………………………………...6 (c) Performance-linked compensation……………………………………………………7 4. Job analysis………………………………………………………………………………..7 5. Recruitment and selection…………………………………………………………………7 6. Compensation……………………………………………………………………………..9 7. Performance Appraisals………………………………………………………………….10 8. EXTERNAL ENVIRONMENT & ITS IMPLICATIONS………………………………11 REFERENCE LIST.......……………………………………………………………………..13 Executive Summary This report summarizes the main features and attributes related to human resource organization and job design of Coles Supermarkets in Australia. The report begins by exploring the history and geography of the prestigious retail supermarket chain in Australia. Organizational structure of the Coles group of retail stores is further studied in terms of its products, suppliers and careers available to prospective employees. Analysis of the pertinent factors in the internal environment and discussion of the implications follows. A thorough job analysis is carried in order to establish the premise for a proper understanding of the organizational structure from a human resource perspective. Employees are the life-blood of any business organization. The role of talented workers in achieving organizational objectives cannot be over-emphasized. Coles Supermarkets has a structure in place for hiring university graduates as management trainees in different disciplines. This is done based on the findings of a comprehensive job analysis which guides the process of job description. A work group approach is identified as a perfect model for organizing employees in the supermarket chain of stores in order to meet the ever-increasing customer demand (Williams, 1998). Cost-cutting measures recently undertaken by the management of Coles Supermarkets requires further synthesis in order to determine its pros and cons on the quality of service rendered to the huge customer base which has been loyal to the company for decades. Finally, the report recommends the harmonization of compensation packages in order to eliminate the gaps currently in existent between managerial and casual workers. Coles Supermarket in Australia Internal structure Cole’s supermarket chain in Australia is owned by West farmers Limited. According to Applied Business Solutions (2010), Coles Supermarkets is a large service industry which transacts business online as well as serves its huge customer base satisfactorily. West farmers Limited was established as a farmers’ cooperative society in Western Australia. Its business prospects improved to cover “Cole supermarkets, department stores, home and office supplies, coal mining, insurance, chemicals, fertilizers, industrial and safety products”( Mills, 2002). The main objective of Wesfarmers was to provide its shareholders majorly famers a proper return for their investment. Cole’s supermarket chains expanded its business both quantitatively and qualitatively. The Coles Variety Stores were actually regarded as the best retailers in providing value to its customers throughout Australia. By 1973, Coles Supermarket achieved its dream of putting shop in every Australian capital city. Currently, Coles Supermarkets are a leader in food retailing business in Australia made up of one hundred thousand employees and a spectacular customer base of above eleven million transactions in a week (Mills, 2002). COLES Group The Coles division transformed its organizational structure through acquisition with another leading retail organization, BI-LO to form Coles and BI-LO supermarkets. This new entity was formed in November, 2007 and operates “first Choice Liquor Superstores, Liquor land, Vintage Cellars and Coles Express” (Humphrey, 2008). Coles refers to the supermarket retail stores which total up to 750 including 65 BI-LO stores. Coles is full service retail supermarket having presence in the entire Australia with a workforce of more than 92, 000 people. Coles online refers the online supermarket which allows customers to login and order groceries at any time of the day. Online drivers deliver the online orders in “temperature-controlled vans” within scheduled timeframes to different regions in Queensland, New South Wales, Victoria and Western Australia (Humphrey, 2008). Coles Liquor deals in liquor and hotel retail business. It operates more than 860 liquor stores and 95 hotels. Cole Express is an exclusive alliance with shell for retailing fuel in a participating store. Suppliers Coles is proud of reliable relationships with valuable suppliers who ensure that customers are provided with the best products and quality services at all times. Coles’ operational teams depend on the support of reliable suppliers in order to honor their obligations to customers. Since customer demand is always high on products which are perishable in nature, suppliers are in constant communication with various operational teams in order to fulfill customer requirements on time. Direct online orders are also completed through coordination of store team managers and their subordinates (Nestle, 2002). Operational team managers ensure that products are properly packaged and distributed in the various stores accordingly in order to make appropriate completion of orders in different locations. Careers The human resource department carries out recruitment, training and job analysis. Employees are recruited based on a criterion that evaluates candidates’ credentials, personality and character. Employees who exhibit confidence and friendliness are shortlisted to work in the service industry which requires a warm and welcoming attitude. Coles’ human resource department provides its workforce in administrator and stores departments an opportunity to develop their careers in a supportive environment. Team building and group collaborations are the most salient features of the working relationship that exists between employees in different departments of the famous retail supermarket. A graduate recruitment program is an additional feature for employee selection and recruitment. This helps human resource professionals to select fresh graduates from colleges and universities for professional and technical training depending on available jobs and career options at the company (Lawrence& Burch, 2007). Internal environment & its implications Remuneration policy and principles Cole’s supermarket applies a remuneration strategy which seeks to “attract, retain and motivate a talented pool of employees” (Mills, 2002). Due to the diversified nature of the retail business, remuneration is equally designed to reflect the complex nature of the business and the different cadres of management. Top executives are rewarded according to their performance at both group and individual level. A remuneration committee reviews compensation packages for different employees as well as makes recommendations to the board of directors. Market competitive remuneration policy The remuneration policy fixes a fixed salary with additional incentives which ensure the overall compensation is market competitive. The competitive aspect of the remuneration strategy is understood to promote superior performance among senior executives which is subsequently applied to junior workforce. Performance-linked Top executives are compensated depending on their performance record. Job Analysis Job analysis entails procedures and methods used by organizations to design professional description to specific tasks and responsibilities to a career opportunity. The human resource department assigns roles and responsibilities to a job in accordance with professional guidelines. Information provided by job analysis ensures that duplications and contradictions do not arise during recruitment and selection. It is particularly important for designing appropriate compensation systems and performance appraisals at workplace (Gold& Bratton, 2001). Job analysis categorizes different organizational departments with qualified employees to execute the underlying responsibilities. The process ensures that organizational objectives and goals are strategically aligned with appropriate tasks. Job analysis also informs the human resource professionals with cutting edge ideas, concepts and principles that match with different departments of organizations. Specializations of labor and talent management demand that useful skills are developed for their purposeful application. Job analysis facilitates organizations in defining roles and responsibilities for their various professional employees (Gold& Bratton, 2001). Essentially, job analysis creates the border lines through which different departments in an organization operate. Job description and specialization of labor is achieved through guidelines obtained from the job analysis. Recruitment and selection Recruitment refers to the process of selecting the right individuals for particular jobs. Job analysis therefore provides proper descriptions and roles to different tasks at workplace which help human resource professionals in recruitment. The information acts as a parameter for matching applicant’s qualifications with the skills required during selection and recruitment. It is against the findings of a job analysis that job applicants are shortlisted for interviews. As such, job analysis provides the criterion for recruitment and selection processes (Gold& Bratton, 2001). Individuals possessing skills and competencies in question are thereby shortlisted for interviews. The interviews provide an opportunity for recruiters to verify the degree to which applicants have complied with the criterion for the job taking into account the relevant job description. The selection criterion is based on results of the job analysis. During interviews, recruiter cross-check applicants’ academic qualifications, skills and competencies from evidence of their testimonials, resume and certificates. Information obtained from the job analysis therefore acts as the guideline for the verification of applicants’ credentials during the selection and recruitment process. Applicants who do not meet the minimum criteria for the selection process are subsequently declined an opportunity for interview. Applicants whose credentials meet the minimum criteria for the selection process are thereby shortlisted for interviews. The interviews provide applicants with an opportunity to defend their credentials as recruiters verify the details of their testimonials and academic certificates against information in the job analysis (Gold& Bratton, 2001). Apart from verifying the legitimacy of presented academic certificates, an applicant is expected to demonstrate skills and attributes that match with prior analysis done on the job being interviewed. Suitable recruits are intensively screened during the interviewing sessions in order to isolate individuals with the required talent, competencies and passion for the particular jobs they have applied for and the organizations they are interested in. Compensation Job analysis provides organizations with relevant information for designing appropriate compensation systems. Employees are compensated based on the roles and responsibilities within their job description. Technical and managerial jobs attract different pay packages and reward systems. Remuneration is the compensation that employees receive for professional services rendered which includes the time spent performing different tasks at work. Reward systems are designed in a manner to reflect organizational goals and individual effort. Rewards include appropriate wages, bonuses, promotions, performance appraisals and career scholarships First and foremost, employees are recruited and trained to work for an organization in order to ensure that organizational goals and objectives are realized within available frameworks. Organizations therefore invest in their employees’ career development and training that boosts the achievement of its underlying objectives. Training empowers employees with appropriate organizational and competencies that enable them perform their duties and responsibilities at work. Career development is also enhanced as employees are trained to apply knowledge and skills acquired during their formal and professional education in organizational assignments (Gold& Bratton, 2001). Rewards are designed to promote hard work, increased efficiency and profitability in organizational behavior. An organizational culture that recognizes individual effort and exemplary performance is established to promote cohesiveness and teamwork. Individual employees capable of accomplishing assigned tasks in line with established standards and scheduled timeframes are appropriately rewarded. Employee motivation techniques are therefore strategies that aim at stimulating team spirit and individual talent among workers. Organizations strive to achieve their objectives through initiatives which ensure that employees are motivated enough to exercise innovation and excellence at workplace (Gold& Bratton, 2001). Through appropriate reward systems, employees are inspired to perform their duties using their talents and expertise. Promotions ensure that talented employees rise through the corporate ladder effectively. Management trainees are provided with the right work environment to advance in their careers. Opportunities at workplace provide employees with professional experiences that promote effective specialization of labor and career development. Exemplary individual effort is publicly recognized through performance appraisals. Performance appraisals Job analysis provides information that creates opportunities for division of labor and specialization. Employees are hired for jobs they are qualified and competent enough to perform. Key performance indicators provide the basis for assessing the output of workers in an organization. Employees who exhibit outstanding performance and professional discipline are publicly recognized and rewarded. Performance appraisals and reward systems enable organizations direct employee efforts towards achieving organizational objectives. Recognition of exemplary performance serves to promote healthy competition among employees as well as it promotes team spirit. Performance appraisals enhance the development of individual and group behavior which stimulates innovation at workplace (Hunt& Morgan, 1995). Talent is equally developed and careers achieved as work-related experience is hitherto harnessed. Job analysis therefore provides human resource professionals with reliable guidelines on how to recognize, appreciate and reward employees for their outstanding performance. The analysis enables for designing structures, systems and policies for human resource management (Gold& Bratton, 2001). Jobs are therefore properly defined and descriptions attached to different schemes of work in organizations. Analysis information facilitates the process of job description and implementation strategies for established organizational goals. The extent to which organizational objectives are effectively achieved depends on the information obtained from job analysis (Griffith, 2000). External Environment & its implications Due to the global financial crisis and the economic crunch, the management of Cole’s supermarket decided to lay off some of its workers as part of cost-cutting measures. Casual employees were the main causalities leaving the busy retail chain of supermarkets understaffed. There are incidences where two employees were left to attend to the many clients in addition to cleaning the shelves. This extended their duties beyond the normal eight-hour working day. Due to the overwhelming tasks, cleaning was poorly done leaving the environment in a pathetic condition. According to Hackman and Oldman job characteristics model, “job design entails a proper appreciation of skill variety, task identity, autonomy, task significance and feedback” in human resource processes (Humphrey, 2008). Quality and valuable service in such a world-class food industry cannot be overemphasized. Cost-cutting measures not only frustrate the livelihood of retrenched workers’ families, they risk undermining the quality of service provided by Cole’s supermarkets. According to the work group model of job design, employee involvement in such a diversified supermarket chain is important for the satisfaction of the bottom lines and the realization of organizational goals (Mills, 2002). The job involvement approach provides opportunities for individual job enhancement. The work group acts as the central unit for delegated decision making processes which reinforce managerial outcomes. The advantage of work group enhancement lies in consolidation of expertise and professionalism of individual workers. The broader organizational objectives should be integrated with personal goals of individual workers in order to realize greater motivation among junior employees. Conclusion Job analysis involves all those processes and procedures meant to define roles and responsibilities that fall into a docket of organizational structure. Information obtained from the analysis forms the basis through which job description, recruitment/ selection and performance appraisals are done (Gold& Bratton, 2001). The information is unique for each department of a functional organizational since it conforms to stipulated guidelines and professional competencies expected for defined tasks to be accomplished. Employees are hired to perform specific tasks congruent to their job description and underlying responsibilities. Recommendations There are significant disparities between salaries of senior managers and that of subordinates at Cole supermarkets. Incentives should therefore be extended to subordinate workers in order to harmonize and motivate them for their hard labor. According to Department of Justice and Attorney-General, Queensland Government (2010), the Queensland government referred all matters pertaining to private industrial relations to the Commonwealth. Trading hours extended working durations, wages, holidays and other labor relations are no longer directed by the government. Private employers and employees work out conditions of their contracts independently. Cole supermarkets should therefore provide leadership in the private industry through effective human resource programs and reward systems. Reference list Applied Business Solutions, 2010, ‘Email Solutions for your Business’ (Updated 1st August, 2010), Available at: http://abs.com.au/default.htm (Accessed 12th August, 2010). Department of Justice and Attorney-General, Queensland Government, 2010, ‘Wages, awards and agreements’ (Updated 1st July, 2010), Available at: http://www.wageline.qld.gov.au/ (Accessed 12th August, 2010). Gold, J. & Bratton, J 2001, Human Resource Management: Theory and Practice, Rout ledge, London. Griffith, G.R 2000, ‘Competition in the food marketing chain’, Australian Journal o f Agricultural and Resource Economics 44(3), 333-367. Humphrey, K 2008, Shelf life: supermarkets and the changing cultures of consumption, Cambridge University Press, London. Hunt, S.D. and Morgan, R.M 1995, ‘He comparative advantage theory of competition’, Journal of Marketing 59:1-15. Lawrence, G. & Burch, D, 2007, Supermarkets and Agro-food supply chains: transformations in the production and consumption of foods, Edward Elgar Publishing, New York. Mills, G 2002, Retail pricing strategies and market power, Melbourne University Publishing, Melbourne. Nestle, M 2002, Food politics; how the food industry influences nutrition and health, University of California Press, Berkeley, CA. Williams, P 1998, ‘Health claims and functional foods: time for regulating change’, Australian Journal of Nutrition and Dietetics, 55, 87–90. Read More