Professional Documents
Culture Documents
Assignment 02 - HRM Final
Assignment 02 - HRM Final
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Executive Summary
The aim of the report is to develop complete human resource management strategies for the new
business unit of Mercadona in Ireland that is going to launch in 2019. In this regard, the report
includes – introduction of the case study and the report, background of the company, complete
recruitment and selection plan along with job descriptions of Director of Human Resource
Management, Marketing, Operations, Distribution and IT as well. Along with this, staff
handbook has been developed, organizational structures have been discussed and lastly, the
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Table of Contents
1. Introduction ............................................................................................................................. 5
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6.3. Safety and Work-Health Policy...................................................................................... 16
9. Conclusion ............................................................................................................................ 25
References ..................................................................................................................................... 26
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1. Introduction
This report is based on the given case of Mercadona, one of the leading family owned companies
of Spain in the supermarket retail industry. The company aims to introduce business operations
in Ireland by 2019, therefore CEO Mr. Juan Roig has approved to hire staff members of 150
employees. Therefore, the report includes the core functions of human resource management
(HRM) that include – recruitment and selection, development of job descriptions, staff handbook
has been developed, organizational structures have been discussed and lastly, control systems
have been explained. In the end of the report a brief conclusion has been included.
Mercadona is a supermarket company, which has been functioning since many years now, thus
fulfilling its mission to become one-stop solution for people. This mart, since 1977, is fully
engaged in facilitating their customers regarding food and drinks, cleaning and health, as well as,
essential facilities of pets. It was the vision of Cárnicas Roig Group, that the supermarket has
been able to establish its name and establish its strong trust amongst the mart’s loyal customers.
It is the customer service provided by the supermart, which has enabled it to expand from one
store to 1,625 stores, thus making Mercadona, a market leader when it comes to supermarkets
(Mercadano, 2018).
According to Bakker, Demerouti and Verbeke (2004), recruitment is defined as a process to get
potential applicants or candidates pool with required skills, experience and knowledge for a
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particular employment opportunity within the organization as per the job descriptions and
specifications. The key purpose of this process is to gather wide range of talented candidates that
could add value in the organization functions and organization selected best applicant among all.
The research shows that acquisition of the best application can take the organizations towards
attainment of competitive edge. The selection process commences after the recruitment process
to select the most suitable candidate for the job position. The main purpose of selection is to
ensure that best candidate has been appointed for the desired job position (Armstrong, 2006).
The recruitment selection plan provides guidance to select the “right candidate for the right
position at the right time”. The purpose of this plan is to attract and select the best candidate for
the position. In order to fill the vacant position, a documented recruitment plan requires to take
approval by the management. An effective recruitment and selection plan develops efficient
strategies for the staffing and hiring of best candidates and ensures equality in terms of gender,
and other groups as well. The plan shall also include advertising strategies and channels to attract
The recruitment and selection plan and campaign have been developed for Mercadona to attain
the primary objectives of the retail supermarkets open by the end of 2019. The existing job
vacancies at Mercadona Ireland units include – 150 numbers of staff members. In the recruitment
and selection of these job positions mainly social media networking sites will be used such as
LinkedIn, online job portals and other websites. This is because, business model of Mercadona is
based on cost-cutting initiatives and company conducts marketing campaigns through online
platforms. Therefore, following will be the key steps of recruitment and selection plan:
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4.1. Step one: External Recruitment
The vacant positions of 150 staff members will be shared on online marketing platforms such as
LinkedIn, career portals, career center and others (Wright and Boswell, 2002).
Before the screening of the candidates and interviews schedules, the job descriptions and
specifications will be prepared of all the vacant positions. Along with this, interview material
will be prepared such as interview questions and forms will be filled by the candidate. In
addition to that, evaluation form will also be prepared (Wright and Boswell, 2002; Dowling,
2008).
All the applications will be reviewed by the Employee selection committee. The management
will review the curriculum vitae as per the job description and the requirements will be matched
After the screening of employees, the dates and timings will be set with the support of
management and interviews will be scheduled with the candidates. On the interview day, two
way communication will be provided as to exchange ideas between management and the
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As per the interview evaluation by the management of the applicants, the candidates will be
selected with best suitable expertise, knowledge and competencies. The decision will be made by
After the selection of the candidate, employee will be provided with appointment letter that will
contain joining date. On the day of joining, orientation process will start in order to provide
information about the company (Wright and Boswell, 2002; Dowling, 2008).
5. Job Descriptions
HR directors are entrusted to ensure that the Human Resource department functions smoothly,
thus, playing an important role in facilitating the management of the company. Moreover, an HR
director also holds responsibility of ensuring not only the productivity of the employees but also
their compliance with the firm’s mission. Furthermore, HR is often involved in the planning and
implementation of activities that would boost their employees’ productivity level (Armstrong,
that would be aligned with the overall mission of the organization itself.
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Liable to look after activities like recruiting, training and if need be one-to-one
To achieve project results by detecting and analysing the issues, as well as, if need be,
offer solutions.
To provide consultation to the management regarding the employees and their efficiency
level.
To support the management in drafting new policies and methods, while keeping the
To study government’s legal conditions that may affect the company in some way.
To be able to engage in continuous learning and for that very purpose, should participate
Should have a pro-active approach when it comes to setting new goals and challenging
The Director of Marketing is in-charge of all the promotional and marketing related activities
which might benefit the organization and boost up their sales. Moreover, the person is also liable
to remain up-to-date with all the current marketing and business knowledge (Armstrong, 2006;
Dowling, 2008).
To enhance the marketing department by not only introducing better strategies but also to
identify issues, long term as well as short term, which might affect the organization.
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To enable the organization to own larger portion of the market share by introducing
business models and marketing plans, that would prove highly profitable for the
organization.
To create a long-term bond with the customers by arranging customer related workshops
and programs and take their input regarding the organization’s service.
To analyze and interpret market research reports and thus establish both forecasts, long
term and short term. Moreover, to give advices regarding the organization’s current as
To maintain a database where the data regarding market trends and marketing strategies
would be stored.
In-charge of assigning tasks to the marketing team, as well as, in order to enhance the
team’s efficiency, the director is also responsible to organize training sessions. Moreover,
To play an active role in preparing financial statements and also rectify any action that
To provide the team with educational opportunities thus giving the team the exposure to
grow.
The Director of Operations, who is part of the top management, is responsible to ensure that the
organization is running all the activities smoothly, that is without any obstacles or major
struggles. Therefore, for this reason, the director’s most of the time is consumed in monitoring
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and analyzing the company’s activities and the processes involved in it, no matter how big or
To play an active role in ensuring productivity of the organization. Therefore, for this
very purpose, is also responsible to brainstorm and document the organization’s strategic
To maintain a team who would be involved in ensuring that all projects are, efficiently
To not only collaborate with other departments such as marketing and finance, in order to
carry out the Operation department’s work easily. But also, maintain stable relations with
To enhance the team’s productivity by carrying out training sessions and providing the
To identify the areas of improvement for the organization, thus serving the purpose of
boosting the organization’s sales and enabling the company to experience growth.
To provide data to the Managing Director, with well-maintained reports analyzing the
To maintain long-term relations with the clients as well as, with all the stakeholders of
In order to analyze the organization’s policy and procedure, as well as, to keep a check on the
inventory and storage, the role of Director of Distribution comes in. The monitoring is carried
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out by using a system which keeps a track of the present inventory of the company, as well as,
operations carried out at the warehouse and during shipping (Armstrong, 2006; Dowling, 2008).
To effectively lead and manage all the tasks pertaining distribution as well as logistics, in
To have considerable knowledge about supply chain, inventory, logistics, including cold-
chain transportation.
To make sure that all activities and tasks are aligned with the company’s objectives as
To ensure cost effectiveness and therefore, carrying out tasks and designing such
To be able to collaborate with other teams, such as, logistics that would enable the
company to carry to work as team and together achieve the company’s mission and
objectives.
To instill the value of taking responsibility in all employees, thus, enabling the team to
To be able to lead a team that is set towards uplifting not only their performance but also
is able to enhance the overall company’s efficiency. The director should be able to
efficiently communicate the goals and expectations from the team, and remain open to
5.5. Director of IT
The Director of IT is entrusted to effectively manage and look after the IT department, such, that
the department enables the overall company to function smoothly. Thus, the Director of IT is
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responsible to work with different stakeholders within the organization, that is, the senior
management, the employees who use the IT system, alongside, working with the IT department’s
staff so that together the department is able to provide solutions to any IT related issues, as well
as, introduce better strategies for smooth execution (Armstrong, 2006; Dowling, 2008).
To lead the whole department of Information Technology, alongside, the tools and IT
framework as well.
To collaborate with all the departments of the company, in order to understand each
department’s needs and provide any IT related solutions, in order to avoid any hindrance
To understand and manage all project related stages, especially the new ones, such as,
project initiation, development, execution and closure. Moreover, keeping a check on the
programs that are already in execution phase, thus ensuring that all the requirements are
met.
To be able to manage time and delivery schedule effectively, thus avoiding any last
minute delays.
To ensure that there is no security threat to the IT system, which could otherwise cause
To be able to satisfy the customer and create long-term bond, through technological tools
and applications. Alongside, be able to ensure that all the customer related issues are
6. Staff Handbooks
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The conduct and the process followed by the staff sets with the “Staff-Guidebooks”. The
procedures and policies written in the “Staff Guidebook” must be followed by the employees.
The “staff manual” amends by different time phases. If there is a contradiction between the Staff
Guidebook and a worker’s letter of employment, the letter of selection prevails to the extent of
a. Yearly leave
The employee can get 4 weeks of paid yearly leave. This accumulates from year to year and
accrues according to the worker’s routine fixed work hours. Employees with an extra-ordinary
achievements only cash-out annual leave according to the achievements. Extra annual leave must
be taken according to the related award. The employee with no extra ordinary award may take
leave according to the “Fair Work Act 2009” (Briscoe, Tarique and Schuler, 2012).
According to the “Fair Work Act 2009”, some workers are authorized to demand flexible
are a child of school or elder, a parent, or have duty for the care of a child;
are a caretaker;
are suffering violence from a family member, or support or provide care of their close
family member or domestic work because the member is suffering from such violence.
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All the requests for flexibility in working hours and the reason for such request must be in a
written form. The authority will consider the worker’s request with 21 days after the request is
Each worker’s performance, conduct and capacity will reviewed formally on the annual basis.
An employee is encouraged to raise a concern or any query before the annual review. The
officials will take the terms and conditions of an employee into the consideration in an annually
review. The increase in salary and benefits provided to the employee will be decided in this
All the workers must be familiar with the policy and follow the rules and regulations. The
The policy is made to ensure that all employee have the equal opportunity and have the
liberty to make their choices and decisions about their career in accordance with the
merit.
The individual employee can be responsible of acting conflicting to the principles listed
in the policy, both the individual and the official employees can be accountable for acts
of harassment and discrimination against fellow employees, prospective and the clients.
The main aim of the policy is to provide equal opportunity for the employees. The fundamental
principle of equal opportunity is the concept of merit. It is on this basis that the company take on
to make promotions and appointments. The policy has the main aim to ensure that the current
employee are not facing any negative treatment on the basis of irrelevant characteristics or
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attributes. The policy is committed to ensure that the environment of the company is free from
The company has an obligation to ensure the safety and health of its employees according to the
Federal and state codes, rules and regulation, legislation and standard. The workers of the
company also have the responsibilities to take care of their own safety and health and of their
colleagues. Each one of the worker is individually liable for functioning according to the safe
manners and collaborating with each other to guarantee work safety and health. The team work
of all workers to observe safety rule and regulation and to adhere safe work at all times is vital
for the victory of the company’s commitment to safety and health (Armstrong, 2006).
The Policy is sets out the procedures for the proper use of its computer systems, internet and e-
mail means as trails. Because of the chance of misuse these internet resources, the Policy
considers that it is essential to set down some basic rule and regulations. It is each worker’s duty
to ensure that the computer and internet systems and email services are used sensibly and in
according to the policy (Briscoe, Tarique and Schuler, 2012). The activities listed following are
prohibited strictly:
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Or consuming the company’s internet resource for unauthorised personal or commercial
This policy does not have any concern about the personal information of the clients of the
company. It is just concerned with the personal information of employee, clerical staff,
contractor and volunteers of the company. The company manage the personal information of its
staff according to “The Privacy Act 1988”, “The Australian Privacy Principles” and in
accordance with the registered privacy codes. The “privacy” policy of the company is established
in accordance with those Privacy Principles and explains how we use, collect, handle and
For this purpose, the policy concern about the grievances of the employees related to the work. A
complaint can be about the situation, act or decision by the co-worker’s act which disrespect the
other worker considers being an inappropriate, unfair or unreasonable (Briscoe, Tarique and
Schuler, 2012).
All workers must read the following policy and agrees to obey the laws enacted by federal and
state, rules and regulation and the company’s work safety and health policy (Armstrong, 2006):
1991
Fair Work Relations- 2009
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Occupational Safety, health & South Australia’s Equal Opportunity
Discrimination
7. Organizational Structure
There are different types of organization structures that are mainly organized to attain different
business goals and objectives. The structure mainly assists towards accomplishment of goals,
however, sometimes it resists mainly due to the complexities and criticality issues in the
organizational structures and hierarchies. The size of the organization such as small or large are
the main components to attain increasing sales and profits through an efficient alignment of
organizations needs with structures. Following are three main organizational structures
(Armstrong, 2006):
One of the key structures is the functional in which organization is grouped as per the
departments or functions. For instance, division of the organization mainly occurs as human
resource department, sales and marketing departments, research and development departments
and many others. However, this type of structure mainly suitable for the small scale businesses
as departments can share resources in the form of knowledge and human capital to achieve
organizational goals. On the other hand, there is drawback of this function structure that is
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creates boundaries between departments for communication and mostly, departments work
separately. This has been shown in the organizational chart as below (Boxall and Purcell, 2011):
The second organizational structure is the divisional structure that is mainly use in the large
organizations. This is because, giant corporations possess wide geographic units and areas and
all different groups and business areas work under to attain mutual organizational goals and
objectives. This has been illustrated in the organizational chart as below (Boxall and Purcell,
2011):
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Figure 02: Divisional Organizational Structure
On the other hand, the last structure is the hybrid or matrix structure. This is based on
combination of different functions and divisions. It mainly applied in large organizations due to
enormous benefits such as different divisions and functions can work together under a single
organization. However, the drawback of this structure is the power creation struggles. This is
because, organization can have functional management and the division manager they work
together at the same level and hence, can enter in each others’ managerial territory.
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Figure 03: Hybrid Organizational Structure
On the other hand, this structure has been used by the organizations that confront with
functional and divisional expertise effectively. The multinational corporations adopt this
organizational structure. The factors comprised of international factors and commitment for this
organizational structure. In this type, the multinational firms can operate business units and
divisions in international markets efficiently and the different divisions directly report to Chief
Executive Officer (CEO) of the company at headquarter. The international divisions are grouped
in different regions such as Asia, USA, or others and the divisions further categorized into
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As per the above analysis and assessment, the proposed or recommended organization structure
to Mercadona is hybrid or matrix. This is because, Mercedona Ireland will be a business division
operating international market and the directors of this division will directly report to the CEO of
the company. The organizational functions will be further divided into specific departments such
as human resource management, marketing, finance, product and development and many others.
However, the key benefit of this structure will the decision decentralized decision making
authority, strong communication and coordination among the entire division as a single unit,
flexibility and many others. This type of structure can respond to the environmental changes
instantly. Though, the unit may confront with dual authority issues (Dowling, 2008).
8. Control Systems
According to Laursen and Foss (2003), the organizational effectiveness can be ensured through
the use of Michael T. Hannan and John Freeman. This theory suggests that organization can
efficiently attain the goals through measurement of performance. However, for this purpose
organizations needs to evaluate internal and external environmental factors in which organization
operates. This is because, organization operating in a challenging environment can lead towards
better performance as compared to organizations that confront zero challenges. Along with this,
another theory is compensation and performance based theory. This theory focuses on the
performance of employees and on the basis of performance employees’ are evaluated and
process in which the information is acquired and used for assisting the controlling decisions of
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organizations following the coordination of planning to improve the mutual decisions within an
organization. MCS follows the process of using business management for characterizing the
controls, covering performance capacity and systems of reward by attaining the predetermined
levels. There are various levels of spontaneity, formalization and financial emphasis in
managerial control, these levels vary according to the prevailing system that depends upon the
individual attributes of their managers, attributes of the organization and characteristics of the
organizational and social context. There have been different ways to define the MCS, the goals
of an organization can be achieved by a process in which the attainment and efficient use of
MCS comprises of informal and formal processes and mechanisms that the organizations use for
monitoring, measuring and managing their performance by implementing strategies for the
achievement of their goals. The effectiveness of MCS can be ensured by having specific
managers for taking decisions, using effective strategic guidelines and motivation for achieving
the desired targets and aligning with the policies and objectives of the organization (Guest,
2011).
The management of the organizations have a key issue posed with the measurement of
performance of organizational goals. Organizations are unable to deal with the uncertainties in
the environment effectively and efficiently without these systems of measurement. This leads
towards the terrible use of resources and consequently increases the possibility of failure
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8.1.2. Information Flows
Performance measurement has an important role of providing information for making decisions
which contributes to the formation of value. The system influences the decision making by
supporting the mechanisms of planning and control. Furthermore, it influences the behaviours to
ensure its compatibility with the organizational goals. The integration of ethical standards in
MCS can provide benefits to the companies (Brewster, 2017). Another significant role of
organization directs the employees about the importance of strategic aspects by selecting the key
performance measurements. It signals the stakeholders, in the external frontline, who are a part
The recommended control system for the performance evaluation and measurement is the
Mercadona can get success in the new target market (Batt, 2002). An effective performance
management system shall be introduced within the company that will measure the performance
of employees. This is useful for employees and organizations as well. This is because, it helps in
clearly defining the roles and responsibilities of each employee, clear goals and objectives
(Collins and Smith, 2006). The key performance indicators (KPIs) will be developed in order to
assess the performance by the end of the year. An annual performance appraisal process will be
conducted to evaluate the performance and then rewards and compensations will be provided
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9. Conclusion
It is evident from the above research and analysis that HRM is one of the critical functions of an
organization. Further, each function of HRM possesses wide importance and contributes in the
busyness strategic roles of the organization. The functions of HRM that include – recruitment
and selection, staffing and performance management system are useful to attain overall business
objectives and organizational goals at holistic level. Therefore, the entire functions have been
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