Retaining the Existing Customers in the Business Enterprise

Question: Describe about the article for Retaining the Existing Customers in the Business Enterprise. Answer: Introduction: The minimum wage is a very important concern for an organization for retaining the workers. In this paper, the HR policies and practices within the organization would help in the proper staffing of the employees in Wal-Mart. The strategy of human resources management of Wal-Mart includes prioritizing the strategies that is best fit that links between the corporate strategy and human resources management strategy (Truss, Mankin Kelliher, 2012). This is seen that Wal-Mart has been criticised for using the strategy against the benefits of the employees and their fair pay. There is a need for a careful monitoring. The human resources management is a process where in the people working in the organization is managed. Personnel management is another concept that is used for human resources management. The important things that have been emphasized in the human resources model applicable to Wal-Mart are searching of the newer ways of working, importance of the manager to make changes in th e organization and management of the employees activities. In the current competitive business world where the retail firm Wal-Mart operates is always dynamic as they need to keep the pace of development same with the changes in the environment. The division of work is needed by the organization so that the work can be completed on time. The department that is important in the organization is the department of human resources. Many of the experts have said that success of the organization depends especially on the human resources department (Belcourt, Bohlander Snell, 2012). This department will help in instilling many values in the organization of Wal-Mart. The business objective of Wal-Mart will be achieved through the proper designing and rational approach to management work. In order to deal with the diversity of staff the human resources depart of Wal-Mart will help in playing a crucial role. Defining the organization: Products and services produced: The company Wal-Mart was established in the year 1945 and is based in Arkansas. The U.S segment of Wal-Mart is seen to offer meat, bakery, deli, floral, frozen food and dry grocery, beauty aids, health, household chemicals, pet supplies, paper goods, cameras, toys, electronics, photo processing services, cellular service plans (Walmart, 2016). There are also fabrics, books, automotive accessories, outdoor entertaining, sporting goods, seasonal merchandises, apparel, jewellery, pharmacy, shoes, optical services, small appliances, house ware, home furnishing and many more Occupational groups within the organization: There are four occupational groups present in Wal-Mart helps to achieve the objective of the organization. Management of the organization takes the primary decision of the company, the administrative body, manufacturing and technical division. The manufacturing division occupies 60 %, the management occupies 25%, the administrative division occupies 5% and the technical division occupies 10%. Together the occupational groups help in attaining the goals of the organization (Walmart, 2016). Mission of Wal-Mart: The company Wal-Mart to use the price leadership stated the mission of Save Money, Live Better. This is a statement by Sam Walton in the year 1962 and it is still relevant. It was indicated by the mission statement that in terms of external customers they are able to purchase the products in Wal-Mart because they are offered low price for the products, which would help the customers to save more money for those who require it (Walmart, 2016). Aims and Objectives of the organization: The aim of Wal-Mart is to capture the world retail market. The vision is to achieve a price leadership that would help in driving the global performances. The focus by the management is on the price leadership in every marketing strategy. The company can attract customers and perform through this direct approach. The company is targeting the customers with the modest income and those shoppers who are interested in the attractive prices by the company. The company has provided a strategic framework for three years that intends to strengthen the US business. The sales growth is ranged between 3% to 4% in a year over the next three years, which would translate 45 million dollars to 60 million dollars over a period. In order to achieve returns in shareholder there is a need for investment in technology and people. There will be capital investment of approximately 11 billion dollar in the year 2017 and this would remain constant in the year 2018 and 2019. This is below the revised estimate 2016 of approximately 12.4 billion dollars due to the moderate expansion of physical store. The investment in the digital initiative and e commerce is expected to be approximately 1.1 billion dollars in the fiscal year 2017 (Werner, Schuler Jackson 2012). The strategic management of Tesco PLC: The strategic direction of Tesco is discussed with the managers as well as the employees (tesco.com, 2016). This will help the individuals to understand their role in the organization. The following are the practices performed in Tesco for better management: Provision of a framework for decision making Supporting buy in and understanding Provision of organizational perspective Discuss potential advantages and disadvantages for implementing strategies of Tesco in Wal-Mart: Advantages: A framework is created where all the staffs can make their decisions regarding their daily operations and understanding those decisions will help the organization to move towards a single direction. The strategy will help in providing decision about the future, confirms the values and the purposes of the organization, clarifies the opportunities and threats, determining leverage strength (Wilton, 2013). In case of Tesco, the training to the workers will help in achieving the goal of customer satisfaction, which would result in the success of the organization. When there is allowance of staff participation and board in the strategic discussion then there will be better understanding of the direction, the reason for choosing the direction and the related benefits. The company Tesco has emerged as one of the number one supermarket in the UK as the people are supportive. There is organizational perspective when there is strategic management and it looks into the interrelationship and components so that there is development of a strategy which is optimal for not only a single component but for the entire organization. There is effective handling of operational issues by Tesco. Disadvantages: The disadvantage of the strategic management is that there is a need for anticipating the future environment so that plans can be developed. The prediction of the future is also not an easy task. The cost of hiring people to develop strategies can be quite expensive for the organization. The immediate crisis within the organization cannot be resolved through strategic management. The long-term development of the organization is ensured through strategic management process. When there is a strategic management process, there will be rejection of the opportunities (Bohlander Snell, 2013). The inability to choose can get quite frustrating. This is the reason why the strategic policy of Tesco did not provide the opportunity for diversification. Strategic Objectives of Wal-Mart: The American retail market is dominated by Wal-Mart because the business model is quite effective and the rivals are not able to recognise their weaknesses. The strategic objective is an attempt to continuously dominate the retail market and expand its growth in the United States and abroad. The customer satisfaction and widespread recognition of name would help in branching name in new sectors of retailing. There are mainly three generic strategies, which is continuously strived by Wal-Mart. The three generic strategies are cost leadership, differentiation strategy and focus strategy. The managers are making their efforts to make the organizations unique, distinctive and trying to understand the key success factors that will ensure the customers buy the products from the organization. The performance of the firm depends on the specific resources and capabilities of the firm. The other strategic goal of the organization is to expand rapidly and seriously Reasons for recommendation for best practices for the Wal-Mart: The practices of Tesco are recommended for the following reasons: Improving the business agility: There is a need for the organization Wal-Mart to make some modification for the organizations best practices so that it is related to the changing condition of the market (Banfield Kay 2012). There will be greater agility and control to change the work flows or using them as necessary Reduces cost and increases revenues: The application of the right business process will help the cost in the organization to drop while the business process is executed successfully. There would be positive results from the use of correct business strategy. There will be more products that is accessed by the customers within a very short time (Armstrong, 2012). The wastage of the resources will be minimised while the profitability will increase. Higher level of efficiency: When best practices applied in the business process, there would be efficiency in the business process. This will help in integrating the process from the start until the end. The process owners they would understand automatically every time the responsibility is hand out to the individual members (DeCenzo, Robbins Verhulst, 2013). This will help in the efficient monitoring of the delays and reallocating of the tasks among the members. The bottlenecks and the lead-time in the organization are reduced when there is application of business processes and implementation (Rothwell et al. 2012). Better visibility: The best practices when it is applied to the organization Wal-Mart then there would be automation of the process. The programs will help in keeping the track of the performance and see the functioning of the business process in real time (Dessler, 2013). HR policies and practices to be incorporated for staffing policies in the organization: The following are the HRM practices that the organization can implement to enhance the staffing of an organization. The HR recruitment and the process of selection depend on the mission of the organization and the work culture. The recruitment practices involve recruiting activities such as sponsoring in the career fairs, advertising job vacancies (Dowling, Festing Engle, 2013). The HR sees that there is flexibility in the work schedule for the employees so there is balance between work and life Conditions to utilise the approach: The best HRM practices are needed when there is lack of competitive advantage. The lack of adaptability and flexibility of the people towards the organization is the reason when there is a need for quality HRM practices (Devonshire-Ellis, Scott Woollard, 2012). Concerns regarding the use of approach as per strategic objective of the organization: The company Wal-Mart is concerned about proper staffing of employees and there is a need for a good human resources management practices so that the strategic objective of expansion globally is achieved. When there is proper coordination with the staffs the organization will be running smoothly and efficiently (Hill Jones, 2012). The HR manager must see that the employees of Wal-Mart are getting sufficient amount of pay so that they can avoid the attrition rate. Information on the effectiveness of the HRM practice on other organizations: It is important to consider the fact that effective reliable information by the marketing managers will help in bringing changes in a better way. It should involve the stakeholders because their money is invested in the business for smooth functioning of business enterprise. HR practices will help in providing ways by the managers with conduction of market research in the most appropriate way (Dessler, 2013). Every organization aims at profit maximization with minimal usage of resources for attaining future goals as well as objectives for the same. In this particular study, market-related and current trends information will guide ways in understanding the needs and perceptions of the customers. Innovation is a risk-oriented approach that organization challenges for attainment of goal statement in the near future (Renckly, 2012). It is noticed that retaining existing employees proves beneficial in comparison with appointment of new employees. Employees should be paid wages in accordan ce with their efforts made in the particular business organization (Ivancevich Konopaske, 2013). Employee reward system and recognition will help in bringing confidence among them. It will instil motivational aspects and bring coordination in the future course of business activities. It is important to consider the fact that retail sector faces stiff competition in the present global market (Joshi, Liao Martocchio, 2012). Therefore, it is necessary to remain updates with latest technology and product offering as per consumer tastes and preferences. The best practice on the overall compensation: The practices by the HR department of Wal-Mart that is needed: The establishing of an informed market structure and defined compensation philosophy When there is information about the market and a compensation philosophy then the employees is given the motivation that they are valued (Lasserre, 2012). An enhancement of the compensation structure will help the owner of the organization Wal-Mart to retain the talent of the employees. A compensation structure that is well communicated. The executive management established the compensation philosophy. The management team and the HR should communicate to employees of the population about the philosophy. There is a need for the employees to understand the overarching approach and strategy. This will help them to relate with the job and the manner in which it can get promoted higher up in the organization. The employees having enough experiences should be given reward packages (Lynch, 2012). The employees need to understand as to why they are paid and what their effort means for the organization. Recognition from the management There is a strong demand for the goods and the services and this involves faster delivery of products from the employees. There is sufficient amount of hard work and dedication involved. The superior quality of the goods requires the workers to work beyond their normal hours of timing or think in an extra ordinary manner (Mondy Mondy, 2012). The employers need to recognise their effort and provide rewards like free vacation, lunch cards, gift cards , spot awards. When the employees they are given recognition then they are devoted towards their work. Differences across occupational groups within the organization: The proposal tends to differ across the occupation groups in Wal-Mart as the management and administrative groups receive better compensation then that of the manufacturing group. The management is the section that helps in the correct implementation of the policies and helps in running the objective of the organization. The compensation best practices should be performed in all the levels of occupational groups as all the groups are closely linked to the goals of the organization (Mondy Mondy, 2014). Monitoring and evaluating effectiveness of compensation best practices post implementation in Walmart: There is a need for the monitoring and evaluation of the organization. The following are the ways through which it might be done: There is a need to take proper feedback from the employees time to time There is a need to provide rewards to the deserving candidates The demotivated employees need to be motivated by giving them sufficient amount of space to overcome their fear (Prescott Rothwell, 2012). The motivated candidates need to be provided with performance appraisals. Communication of the program to the employees: The employees need to be communicated of their compensation best practices through meetings with them. They must be encouraged so that they provide their efforts in the organization Wal-Mart and help the company to grow. The rewards and other benefits is a way to communicate the pros of the program to the employees Inappropriateness of the best practices in an organization: When there is rewards provided by the organization to the employees then there will be motivation for work but they would always look for rewards to perform a task. Too much of rewards by the organization Wal-Mart, would also result in losses to the organization. When there are rewards for some while no rewards for other then there will be discrimination within the organization. Monitoring and evaluation of the effectiveness of the program implementedspecific metrics/measures: The effectiveness of the program will be achieved by the organization Wal-Mart when there is motivation among all the workers. The payment structure must be such that it encourages the employees to stay with the company and work towards the goals of the organization. The minimum pay should ensure for effective implantation of the program. Conclusion: At the end of the study, it is concluded that Wal-Mart tries hard in accommodating needs as well as expectations of employees. They believe in minimum wage pattern for retaining the existing customers in the business enterprise. Proper emphasis is given on the HR policies and practices for bringing improvement in the staff members and checking on the attrition rate for the same. From the above study, it is easy to understand the fact that Wal-Mart operates in dynamic environment and ready for bringing changes for smooth functioning of business enterprise. Division of work or specialization helps in bringing best quality of an employees and making the use of it is in the business activities. This particular retail industry faces stiff competition from Tesco. Proper competitive analysis is conducted in the above study that involves strategic direction. The managers and employees for attainment of future goals and objectives should follow it. Future potential advantages are explained an d final implementation strategies of Tesco in Wal-Mart. Conceptual framework will give detailed investigation on the decision-making process of staff members for checking the daily operational activities in an overall manner. Transparency is an effective way that brings together ideas and opinions between staff members and top-level management. Employees are free to express their views and grievances to the management and contribute in bringing innovative ways for future developmental process. Employees grievance redressal helps in understanding their problems and bringing solution for the same. Proper training to the employees will guide them in understanding the innovative ways adopted by the particular organization. Continuous feedback by the employees will bring out the issues in a better way. It is important to understand the fact that employees are the real asset to the organization and it should be management efficiently as far as possible. References: Armstrong, M. (2012).Armstrong's handbook of human resource management practice. London: Kogan Page. Banfield, P., Kay, R. (2012).Introduction to human resource management. New York: Oxford University Press. Belcourt, M., Bohlander, G., Snell, S. (2012).Managing human resources. Toronto: Nelson Education. Bohlander, G., Snell, S. (2013).Principles of human resource management. Australia: South-Western/Cengage Learning. DeCenzo, D., Robbins, S., Verhulst, S. (2013).Fundamentals of human resource management. Hoboken, NJ: John Wiley Sons. Dessler, G. (2013).A framework for human resource management. Upper Saddle River, N.J.: Pearson Prentice Hall. Dessler, G. (2013).Human resource management. Boston: Prentice Hall. Devonshire-Ellis, C., Scott, A., Woollard, S. (2012).Human resources in China. Heidelberg: Springer. Dowling, P., Festing, M., Engle, A. (2013).International human resource management. Andover: Cengage Learning. Hill, C., Jones, G. (2012).Strategic management essentials. [Mason, Ohio]: South-Western. Ivancevich, J., Konopaske, R. (2013).Human resource management. New York, NY: McGraw-Hill Irwin. Joshi, A., Liao, H., Martocchio, J. (2012).Research in personnel and human resources management. Bingley, U.K.: Emerald. Lasserre, P. (2012).Global strategic management. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan. Lynch, R. (2012).Strategic management. Harlow, England: Pearson. Mondy, R., Mondy, J. (2012).Human resource management. Boston: Prentice Hall. Mondy, R., Mondy, J. (2014).Human resource management. Boston: Pearson. Prescott, R., Rothwell, W. (2012).The encyclopedia of human resource management. Hoboken: John Wiley Sons. Renckly, R. (2012).Human resources. Hauppauge, NY: Barron's Educational Series. Rothwell, W., Prescott, R., Lindholm, J., Yarrish, K., Zaballero, A., Benscoter, G. (2012).The encyclopedia of human resource management. San Francisco: Pfeiffer. Tesco | Online Groceries, Homeware, Electricals Clothing. (2016).Tesco.com. Retrieved 1 April 2016, from https://www.tesco.com/ Truss, C., Mankin, D., Kelliher, C. (2012).Strategic human resource management. Oxford: Oxford University Press. Walmart. (2016).Walmart.com. Retrieved 1 April 2016, from https://www.walmart.com/ Werner, S., Schuler, R., Jackson, S. (2012).Human resource management. Australia: South-Western Cengage Learning. Wilton, N. (2013).An introduction to human resource management. London: SAGE.