Examining The Capacity Of Human Resources Department To Drive Organizational Change

Project and Seminar Material for Human Resource Management (HRM)

Examining The Capacity Of Human Resources Department To Drive Organizational Change


Abstract


This research examined the capacity of human resources department to drive organizational change. The research examined the capacity of the human resource department to drive organizational change in Asda retail store, examined the contribution of human resource department on organizational performance in Asda retail store and examined the contribution of human resource department on employee commitment in Asda retail store. The study used the descriptive survey research method. And the population of the study constituted the staff of ASDA retail stores. The findings of the study showed thatthe the capacity of the human resource department to drive organizational change in Asda retail store include, by initiating and leading change, it transforms the company’s culture, helps in hiring the right candidates and boosts overall organisational achievement. Also, the findings of the research showed that the contributions of human resource department on organizational performance in Asda retail store include they create the right problem solving groups, ensures compliance to management’s instructions, improves organizational performance and ensures periodic learning and development. Based on these findings, it’s concluded that both monetary and non-monetary rewards have significant effects to the staff performance in this public institution. Furthermore, that there is a significant relationship between human resource department (HRD) and employee commitment (EC) in Asda retail store. It was recommended that a well-articulated blue-print on employees reward and motivation be designed whereby the management would identify the types of incentive scheme, provision of basic infrastructure and improve funding of the institution.


Chapter One


Introduction

1.1 Background to the Study

All over the world, every organizationusually have resources at their disposal which they deploy to realizing their goals andobjectives. These resources are: Capital, Land, Labor (Human) and Technology. Humansare an organization’s greatest assets; humans and the potential they possess drive anorganization change (Jahn, 2007). Today’s organizations are continuously changing.Organizational change impacts not only the business but also its employees. In order tomaximize organizational effectiveness occasioned by the change, human resources—individuals’ capabilities, time,and talents—must be managed. To ensure that change is efficiently driven by the human resources of an organization has necessitated the creation of a special section, the human resource department. Hence, human resource management is the responsibility of human resource department.

Human resource management therefore can be said to bethe strategic and coherent approach to the management of an organization’s most valuedassets – the people working there who individually and collectively contribute to theachievement of the objectives of the business. The terms “human resource management”and “human resources” (HR) have largely replaced the term “personnel management” asa description of the processes involved in managing people in organizations. In simplewords, human resource management means employing people, developing their capacities, utilizing, maintainingand compensating their services in tune with the job and organizational requirement.

Human resource departments and units in organizations typically undertake a number of activities, including employee benefits design, employee recruitment, “training and development”, performance appraisal, and rewarding (e.g., managing pay and benefit systems) (Pauuwe & Boon, 2009). Human resource department also concerns itself with organizational change and industrial relations, that is, the balancing of organizational practices with requirements arising from collective bargaining and from governmental laws (Klerck, 2009). According to Buettner (2015), activities of the human resource department includes job design and analysis, workforce planning, recruitment and selection, training and development, performance management, compensation (remuneration), and legal issues. Human resource department started as a result of the human relations movement of the early 20th century, when researchers began documenting ways of creating business value through the strategic management of the workforce. The function was initially dominated by transactional work, such as payroll and benefits administration, but due to globalization, company consolidation, technological advances, and further research, Human resource department as of 2015 focuses on strategic initiatives like mergers and acquisitions, talent management, succession planning, industrial and labor relations, and diversity and inclusion.

Human Resources department of any organization always focuses on maximizing employee productivity. Human Resources department manage the human capital of an organization and focus on implementing policies and processes. They also focus in on recruiting, training, employee relations or benefits. Recruiting specialists are in charge of finding and hiring top talent. Human resource department also ensure that employees are trained and have continuous development. This is done through training programs, performance evaluations and reward programs. Employee relations deal with concerns of employees when policies are broken, such as harassment or discrimination. Someone in benefits develops compensation structures, family leave programs, discounts and other benefits that employees can get. However, this study is examining the capacity of human resource department to drive organizational change in ASDA, one of the biggest retail stores in UK.

Asda Stores Limited is an American-owned, British-founded supermarket retailer, headquartered in Leeds, West Yorkshire. The company became a subsidiary of the American retail corporate giant Walmart after a £6.7 billion takeover in July 1999, and was the second-largest supermarket chain in Britain between 2003 and 2014, by market share.

Besides its core supermarket retail format, the company also offers a number of other products, including financial services and a mobile phone company using the existing network of EE. Asda’s marketing promotions are usually based solely on price, and like its parent company, Walmart, Asda promotes itself under the slogan “Save Money. Live Better”.


1.2 Statement of the Problem

Businesses are moving globally and forming more diverse teams. It is the role of human resources department to make sure that organizations can function and people are able to communicate cross culturally and across borders. Human resource departments strive to offer benefits that will appeal to workers, thus reducing the risk of losing corporate knowledge. Hence, if these duties of human resource is done effectively, the needed change will be well driven in the organization.

However, the researcher is curious of determining the capacity of human resource department to drive organizational change considering how difficult it is to manage the human and its talents, which the most important asset of an organization that can guarantee the sustainability of the organizational change in Asda retail store.


1.3 Objectives of the Study

The following are the objectives of this study:

  1. To examine the capacity of the human resource department to drive organizational change in Asda retail store.
  2. To examine the contribution of human resource department on organizational performance in Asda retail store.
  3. To examine the contribution of human resource department on employee commitment in Asda retail store.

1.4 Research Questions

  1. What is the capacity of the human resource department to drive organizational change in Asda retail store?
  2. What are the contributions of human resource department on organizational performance in Asda retail store?
  3. What are the contributions of human resource department on employee commitment in Asda retail store?

1.5 Hypothesis

Hypothesis one
  • HO: Human resource department does not have the capability of driving organizational change in Asda retail store
  • HA: Human resource department does have the capability of driving organizational change in Asda retail store
Hypothesis two
  • HO: There is no significant relationship between human resource department and organizational performance in Asda retail store.
  • HA: There is significant relationship between human resource department and organizational performance in Asda retail store
Hypothesis three
  • HO: There is no significant relationship between human resource department and employee commitment in Asda retail store.
  • HA: There is significant relationship between human resource department and employee commitment in Asda retail store

1.6 Significance of the Study

The following are the significance of this study:

The results from this study will be a useful guide for management of business organizations including retail stores all over the world on basic facts about how the human resource department can be used as a tool for driving and sustaining organizational change.

This research will be a contribution to the body of literature in the area of the examination of the capacity of human resource department to drive organizational change, thereby constituting the empirical literature for future research in the subject area.


1.7 Scope / Limitations of the Study

This study will be limited to Asda retail stores, UK. It will also cover the scope of practice of the company’s human resource department its capacity to effect organizational change.

Limitation Of Study
Financial constraint

Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint

The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.


Chapter Five


Summary Conclusion and Recommendation

5.1 Summary

This chapter of the study is set aside to determine summarized the descriptive analysis done in the precious chapters. It also gives the conclusion and makes some recommendation.

In the summary, the purpose of this study was to examining the capacity of human resources department to drive organizational change. Specifically the study focused on examining the capacity of the human resource department to drive organizational change in Asda retail store, examining the contribution of human resource department on organizational performance in Asda retail store and, examining the contribution of human resource department on employee commitment in Asda retail store.

In order to carry out this study research questions formulated to guard the investigation.A total of77 selected staff of ASDA retail stores, United Kingdomwere randomly selected as enrolled participants for the survey.The study was anchored on two-factor theory of motivation by Herbeg Two-factor Theory, Resource Based View Theory and Human Capital Theory.


5.2 Conclusion

In the conclusion the study is beyond doubt and abundantly clear thatsmall scale enterprises is essential for all economies both established and growing. From results obtained and analyzed, the study reveals that:

  1. That the capacity of the human resource department to drive organizational change in Asda retail store include:
    • By initiating and leading change
    • It transforms the company’s culture
    • Helps in hiring the right candidates and
    • Boosts overall organisational achievement
  2. The contributions of human resource department on organizational performance in Asda retail store include:
    • They create the right problem solving groups
    • Ensures compliance to management’s instructions
    • Improves organizational performance and
    • Ensures periodic learning and development

5.3 Recommendation

Recommendation on the basis of findings. The researcher made the following recommendation with the belief that when studied and applied, would help to increase the performance of small scale enterprises. The researcher recommends that:

  1. Monetary reward and non-monetary reward give a significance effect to the employees’ performance in organizations. In this study, only seven variables were employed to examine the role of reward management on organizational performances. There are other variables that are not included in this study but these other variables may be able to give a better effect to the employee performance in organizations. It is recommended for further or future research to include these other variables especially for the variable that are not included in this study..
  2. They should provide facilities to enable the employees in order to enhance their employees motivation, job abilities. Management must intensify the salary scheme of employees.
  3. Proper training and promotion also to be given to the staff of this organisation in order to make them satisfaction with their job.

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