International Human Resource Management

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Table of Contents
1. Introduction............................................................................................................................3

2. Importance of HR Practices to the Business Strategy of Sainsbury UK................................4

3. Critical Evaluation of HRM Practices & their Contributions in Strategic Management

and Achieving Organizational Goals of Sainsbury................................................................6

3.1 Recruitment & Selection..................................................................................................6

3.2 Training & Development.................................................................................................7

3.3 Performance Appraisal.....................................................................................................7

3.4 Compensation System......................................................................................................8

4. Conclusion..............................................................................................................................9

References................................................................................................................................10

Table of Figures
Figure 1: Importance of HR Activities.......................................................................................5
Figure 2: HR Practices of Sainsbury..........................................................................................6

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1. Introduction
Management of the human resources within an organization is inevitable for business
operating their business in the national or international level. The significance of effective
human resources management is more crucial in for the international market because of a
diversified workplace (Bae and Lawler, 2010). The main concern of human resource
management within an organization is to optimize organizational performance through
managing employee satisfaction. Managing an organization strategically and achieving
organizational goals mostly depends on the attitude, performance of employees. Effective HR
practices can facilitate an organization to perform better in the national and international level
(Tullar, 2011). Sainsbury, PLC is one of the largest chains of supermarket based on the
market of the United Kingdom. Effective HR practices within the organization are one of the
most significant factors in the success of Sainsbury. The purpose of this paper is to analyses
the contribution of HR practices to strategic management and achieving organizational goals
in local and international levels.

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2. Importance of HR Practices to the Business Strategy of
Sainsbury UK
To a globalized or international business organization like Sainsbury PLC, managing the
resources is the most vital activity of the management. As most of the workforce of
international business organization are diversified, the core objectives of a human resources
department are to focus on the development and satisfaction of the employees (Bae and
Lawler, 2010). Human resources are the most important to a firm’s total resources, that why
the management of these resources need to be aligned with the business strategy of a firm.
The management of human resources facilitates Sainsbury in the local market by facilitating
employee performance, reducing employee turnover and increasing overall employee
satisfaction. These HR activities at the local level help to adapt the employees within the
strategy of the business more effectively which help to provide consistent service or product
to the customers in the local market.

On the other hand, Sainsbury needs an effective human resources department to reduce the
cultural barriers and manage workplace diversity within an international market. Effective
management of human resources in the international market help to gain competitive
advantage by hiring skilled employees and developing them to productive and efficient
(Mitchell, Obeidat and Bray, 2013). Though, in order to have the best outcome of the human
resources, the HR department should take different activities such as staffing, training,
developing, compensating employees etc. The goal of an international organization like
Sainsbury is to fulfil the need of the customers in the international market, which will result
in positioning itself as a market leader. This can only be achieved by effective utilization of
human resources. Effective HR activities help Sainsbury to know the needs of the market,
competing in the market and overcoming different obstacles by creating a scope through the
effective management of human resources. There are different significant importance’s of
effective management of human resources including employee productivity and increased
profit.

The primary function of an HR department within an organization is to hire or produce

employees who are more appropriate and adaptable with the culture or business strategy of an
organization. employees adaptable to change are the most appropriate for international
business organizations like Sainsbury PLC (Bae et al., 2013). Significant importance of HR

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department of Sainsbury is to hire and train their employees to become more adaptable to
organizational changes. The HR department is also important in fulfilling the demand of
human resources within the organization. As Sainsbury is expanding its business, the demand
for human resources is also increasing. The HR department supplies the demanded
employees of human resources to the workforce.

H iring em ployees w ho are adaptive to change

M atching dem and and supply of organizations hum an resources

To reduce em ployee retention by m otivating them

To recognize em ployee perform ance

C reating feeling of belongingness

To sustain business in the m arket

R educing conflict betw een em ployees

Figure 1: Importance of HR Activities

(Source: Bae et al., 2013)

HR activities help to utilize the human resources to their fullest and motivating them to stay
within the organization for a longer time. Sustaining employees within the organization is one
of the most significant success factors within a business strategy. Sainsbury also uses HR
activities to recognize the performance and contribution of the employees. It helps them to
develop an effective training program for the organization (Hogler, 2016). HR activities help
to measure employee performance and compensate them according to their performance
which eventually. HR activities focus on adapting the employees with the business strategy
effectively. Creating a sense of belongings in the most effective way of adapting employees
with business culture and strategy which is another significant activity of the HR department.
Effective HR activities reduce conflicts between employees within the organization. as
Sainsbury PLC is operating in the different international market, the workforce is diversified.
The main problem within a diversified workplace is the conflict between employees

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regarding tradition, beliefs, values etc. The HR department of Sainsbury PLC develops a
culture of communication between the employees which reduces the conflict between
employees and help the business to sustain in the local and international market.

3. Critical Evaluation of HRM Practices & their Contributions in Strategic

Management and Achieving Organizational Goals of Sainsbury
One of the most important success factors of Sainsbury in becoming one of the largest retail
organization in the market of the United Kingdom and as well as in the international market
is the effective management of its human resources. Though there is a significant difference
between the human resources of the local and international market, different unified practices
have significant contributions in both the national and international market (Becker and
Gerhart, 2016). There are for the main significance of HR practices that help Sainsbury to
operate effectively with a comparative advantage in the local and international market.

Recruitment and
Selection

Compensation Training &

HR Practices
System Development

Performance
Appraisal

Figure 2: HR Practices of Sainsbury

(Source: Becker and Gerhart, 2016)

3.1 Recruitment & Selection

A major importance of human resource management of Sainsbury is the recruitment or
staffing of employees in the international or local market. Recruitment practice of Sainsbury
helps to identify a number of potential participants who can potentially meet the recruitments

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needed by the organization. The process of this HR activity includes selecting appropriate
applicants and then recruit the most appropriate employee for the organization by going
through different recruitment and selection stage (Baird and Meshoulam, 2018). It helps
Sainsbury to recruit skilled and effective human resources for the organization. The
importance of going through this process and managing employment relationship helps to
generate value to the firm. It helps Sainsbury to achieve goals regarding recruiting skilled and
productive employees.

3.2 Training & Development

Training is the most vital factor in the achievement of organizational objectives. Sainsbury
PLC delegates the responsibilities of individual employees within the workplace. As a result,
the individual plays a more active role in achieving his own objectives (Wang and Shyu,
2018). These individuals are facilitated and motivated by effective training and development
programs. The focus of Sainsbury’s HR department is to train their employees by a
continuous training program which focuses on developing the human resources who can tap
internal and external information to turn them into useful organizational knowledge. The
continuous training program by Sainsbury creates a competitive advantage in the market as
the employees become capable of add new thing to the services or products of Sainsbury and
ensure the improvement of the quality of services. Effective training and development
program of employees also increases the workforce satisfaction within Sainsbury PLC.

3.3 Performance Appraisal

Appraisal of the performance of employees is a critical factor in motivating the employees
(Tullar, 2011). Sainsbury measure the performance of their employees which allows
Sainsbury to provide rewards or compensation to the deserving employees. This motivates
the employees to perform better within the organization. The measurement of performance
can be conducted by analyzing certain attributes such as competency, teamwork, initiative,
soft skills, ethics etc. This measurement of performance to appraise the employees also
facilitate Sainsbury to modify or changing the training or selection practices by Sainsbury.
The effectiveness of skilled employees will be limited if they are not motivated according to
their performances (Wang and Shyu, 2018). Performance appraisal system guides Sainsbury
to develop a strategic approach in recruiting staff and developing the employees by proper
training programs when needed.

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3.4 Compensation System
Compensation or rewards is one of the most effective ways to motivate employees within the
organization (Hogler, 2016). Incentive-based motivation or compensation system has the
most significant impact on the performance of employees within the workplace. Sainsbury
provides a performance-based reward system for achieving specific goals or objectives for
the organization. As a result, the employees are more motivated in working productively
which a result increases the profit for the organization (Mitchell, Obeidat and Bray, 2013).
An effective compensation system helps to manage the human resources strategically and
motivate the employees in achieving specific business objectives.

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4. Conclusion
The practice of human resource activities must be focused on the overall strategic goals of a
business organization. the core objective of a business organization usually positioning a
business in the market, achieving competitive advantages and sustaining in the market.
Sainsbury PLC, as one of the leading multinational corporation primarily, focuses on their
human resources to achieve these objectives in both the local and international market. The
practice of HRM needs to integrate with the overall business strategies to ensure effective
management and use of people or employees within an organization. it will provide better
returns to the organization both in the international or domestic market.

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References
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Resource Management, 14(8), pp.1308–1332.

Bae, J. and Lawler, J. (2010). Organizational and HRM Strategies in Korea: Impact on Firm
Performance in an Emerging Economy. Academy of Management Journal, 43(3), pp.502–
517.

Baird, L. and Meshoulam, I. (2018). Managing Two Fits of Strategic Human Resource
Management. The Academy of Management Review, 13(1), p.116.

Becker, B. and Gerhart, B. (2016). The Impact of Human Resource Management on

Organizational Performance: Progress and Prospects. Academy of Management Journal,
39(4), pp.779–801.

Hogler, R. (2016). Transforming employment relationships: Implications for human resource

management. Human Resource Management Review, 6(1), pp.75–88.

Mitchell, R., Obeidat, S. and Bray, M. (2013). The Effect of Strategic Human Resource
Management on Organizational Performance: The Mediating Role of High-Performance
Human Resource Practices. Human Resource Management, 52(6), pp.899–921.

Tullar, W. (2011). Theory development in human resource management. Human Resource

Management Review, 1(4), pp.317–323.

Wang, D. and Shyu, C. (2018). Will the strategic fit between business and HRM strategy
influence HRM effectiveness and organizational performance? International Journal of
Manpower, 29(2), pp.92–110.

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