Introduction
In Simple words we can say that Multinational Enterprises are the firms which have their business in its parent countries as well as businesses in foreign countries. All the activities and decision are made in one country but there are also branches in foreign countries and businesses are done (Investopedia 2011).
Multinational enterprises are very rarely found now-a-days as it takes huge amount of funding and best management to make it a success. Multinational enterprises are always having a more chances of development as compared to other firms as they have a wide variety of resources and capital.
Overview
This essay is about ASDA Group Ltd , headquarter at Leeds, United Kingdom with a turnover of $21700 millions and having 1,22,000 employees (Data Monitor 2004). Asda Group is the UK's third largest food retailer with a network of around 255 stores. Asda sells a broad range of food and clothing, with concentrating on low prices. Asda specializes selling a range of both food and nonfood products. With an concentration on fresh food, while its non-food offerings cover clothing, birthday products, electrical goods, household items and even toiletries. (Data Monitor 2004).
Current Problem
In this highly competitive environment where there are lots of problems of skilled employees and proper trained employess, it is really difficult to carry out business in the quickest way and to retain them. Big Companies and competitors like Tesco , Sainsburry , Iceland are also not just trying to increase its sale but also trying to manage there workforce and are trying to capture talented staff.( Data Monitor 2009)
Possible Intervention
This essay will therefore discuss different reasons why employees are not staying properly at Asda and even what reason and ways can be implemented to have human satisfaction.
Main Discussion
History of Asda
Asda Stores Limited was founded as Associated Dairies & Farm Stores Limited in 1949 in Leeds (Data Monitor 2004). Asda is the UK's third largest food retailer, and a part of the world's biggest retailer, Wal-Mart. It’s a group of retail firms. It specializes in supermarket retail as well as they have their own range of apparel’s sold under the name of George. Asda even maintains an online shopping service.
Asda Group Ltd was first named as ASDA-MFI plc and then both the companies were merged. As there are lots of other competitors in the market it can be said that the competitive market is an Oligopoly market (Data Monitor 2003).
Problems faced by Asda
As more and more companies are becoming competitors of Asda there is always problems of retaining employees. The main disturbance in any business after the availability of stock are having the best qualified employees with talent. Now a days every company faces a big problem in sustaining employees and so do Asda. Asda puts in lots of efforts to satisfy their current employees but there are some other reasons which makes employees to leave the job (James Walker 1970).
Asda faces lots of human problems because an employee may get more chances at some places or other companies which leads to resigning from the current job. As a person might also be tired of doing same kind of work and have an expertise and a great experience there are employees who resign from Asda so as to start their own business or by sharing the business, by indulging into partnership business.(John Kotter 1970).
There are other companies who provides more financial benefits and other benefits like Education for children and even Health insurances which leads to employee’s resigning from Asda and joining the other company. Asda also strives to employee the youth of the nation as they are more advanced and enthusiastic on the work they are doing and they can grasp things quickly compared to other age groups so the companies work is done quickly without any interruption (William Haber 2002).
Few people who resign from Asda because they are unskilled and unsatisfied in the work they are doing and they are trying to grow more and more and always try to find new work possible (William Haber 2002).
Asda takes a personal care in the work of all employees and provides the best satisfaction and the best working environment possible. But still there are lots of people who resign from the current working position as they even don’t get habituated by the work they are doing which leads to frustration and they leave the work. Asda provides equal opportunites to all age groups and tries to appoint with work according to their qualification and age range (William Haber 2002).
Employees resign from Asda even due to small reasons like Unsuitability of timings, or internal problems with the management or may be with other employees or due to some conflict.
Asda should also carry out proper performance management process so that an employee can get recognition on the work he is doing and even find the changes required by him. Newcomers for job are not given proper attention and work is assigned to them so that they are not clear on what they are doing so to overcome that the company should formulate clear goals.(Rosemary Harrison 2000)
Solutions to problems
As every coin has two sides, there are also advantages which an employee of Asda enjoys. On the other hand there are people who always stick to Asda and work faithfully because when they buy products from Asda as they are staff they get discount on the products which leads to savings. An employee even works more n more and in the best possible manner because he is dedicated in his work and has trust in the work he is doing. Employee might be even motivated by the Money and the rewards which he receives . A person even gets Job Security when he works with Asda (Data Monitor 2004).
Asda always tries to employee skilled employees as they might know different techniques of work and even taking out work from other employees so that the work is distributed and done properly and so that there can be overcome. Employees of Asda are always internally motivated by Promotion or transfer which leads to even increase in the pay scale. (Food Market 2009).
All employees who have worked for years in Asda Group Ltd are very skilled in the particular work they are handling and they have a grip on the work they are doing so they prefer not the leave the firm and carry-on the same activities which they are doing because the employee might have to start it from first when they start doing any other job so by that way they try to stay in the firm. (Data Monitor 2004).
After working for Years at Asda with all its dedication it is really important and necessary that a person continues to work in that manner and doesn’t leave the firm because he is settled well and working well and knows the exact working pattern as competitive firms like Tesco also has the same pattern and style of working so Asda is benefitted by having such type of employees who strive and work hard for the firm. (Data Monitor 2005).
Training and Development helps an organization to meet its competitive challenges and environmental changes which can help for the betterment of the firm (Ekonomika Ir Vadyba 2008). Asda always keep its need from employees very reasonable so that there prevails proper working environment and there are less people resigning from the job. (Doug Arms 2010).
The quickiest way to motivate an employee is by increasing his financial status and by also giving him proper status and position in the firm so that he will keep on working and will strive to achieve the objectives with job satisfaction .(Abdul Hameed 2011). Job satisfaction is defined as a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experiences (Cited in Dr Susan Abraham ; Locke & Henne, 1986).
Necessary Changes Required by Asda
There are lots of changes which Asda is required to make. The changes includes changes in the working pattern , changes in the shift patterns, and even changes in the style of work. As the world is becoming a smaller place to live and as all the business and work is been globalized there are more chances to Asda to grow globally and increase its stores globally so that they may even try and resolve the proper of manpower.
Asda can acquire new machineries and skilled employed by which best discounted schemes can be made available for customer so as to compete with the competition. Asda always tries to involve vast varieties of products and a good product range to the customer. Asda is helpful and beneficial to all customers as it provides even online shopping and even a free delivery if the purchase is more than certain amount (David Groves 1990).
Employee satisfaction are the main concentrated things for Asda as it will allow more work and in the best and quickest possible manner. (Data Monitor 2004). Asda has a proper working environment where in all the work is done in team work and distribution of work is done so that work is carried out quickly. Team Asda provides proper feedback to all its employees and makes changes here ever necessary so that best output can be made by the employees. Employees training and appraisal programme is also going on so to cope up with the rapid changes in the firm. (Data Monitor 2004).
There are some occasions when the employees takes an initiative and tries to change any working pattern so that the work is done quickly as they are skilled and practiced in doing that particular job due to the personnel experience. As young people are considered an investment of the future and can help for the increasing skills and new ways of working, they should be hired to improve the work pattern. (Margaret Anne Rai et al 2004)
Asda also has entered the telecommunication sector and there are problems of finding skilled employees who are having an specialized knowledge in all communication and new technologies coming in the market. The problem can be overcome by motivating employees from other companies like Phones4u , Carphone Warehouse etc..(Asda Mobile 2011)
Before 1987, store wages budgets used to found out on the "What can we afford" principle and allocated to stores on the basis of prior year spending.( David Groves 1990). Asda always strive to appoint right people at right place on right time so that effective and efficient work is found out and the company can achieve its objectives.
An companies top manager often has an problem of finding out best role which suit the middle level management so that the internal work can be carried out quickly and the top manager can just focus more and more in the development of the firm (David Groves 1990).
When Asda tries to employ experienced employees with an experience of 10 to 20 years there are other problems which the company faces that includes the employees having their own set of ideas and the pattern of working , personnel philosophies etc so there are problems again in explaining the exact procedure of working and finding out the best method which is followed by Asda.(John Kotter 1980)
The main aim why employee’s remain stable in a particular company can be related to the reputation of the company as it gives a personal benefit and enhances the profile.(Hensen F 2004).There are several studies which has been implemented which can help in finding out the exact reputation and market position of the firm. As Asda is having thousand of different products with different prices and different design it is necessary to have proper manpower so that all handling of the store is done in a systematic way. Employees of Asda work with its full ability along in a fun-loving environment so there are time when people are motivated (Burmann et al 2007).
Asda is benefitted as the company does not have to spend money in Advertisement to recruit people as there are flow of entrance coming. There may even be a negative consequence if there are less applicants or less customers as then the company will not lead to proper profits. Employees engagement will have a positive result on the attitude held by the staff towards the company and the value (Robinson et al 2004).
In the mean time the competitive brand like Tesco , Sainsbury and Waitrose are striving very hard and are having fearce competition among each other and are trying to capture the market (David Groves 1990)..
Asda tries to retain all its new talents and tries to motivate them so that they are faithful in working at the firm and due to that all those procedures and money spent in recruitment is saved. Asda provides all types of Food products, household accessories, clothing and even telecommunication and has maintained a good employee relation and retention of skilled people so that the there is smooth working people in the organization. When an employee is not capable for the duties he is assigned, he is given a proper training and explained with the duties he has to perform. (William Haber 2002).
Asda still lacks lots of talented and desired employee and there is a recruitment team which tries to find new employee which best suits the role.
Conclusion
The ongoing process of Globalization where new products are introduced every day, every multi-national firm should take care on the human resource management. The war of having talented people and skilled people is increasing day by day and to overcome that attracting and developing is one of the most important factor in handling the employees. As the reputation of Asda has an great influence on the people so it will be easier to have future workforce.
All the employee should be given proper career and goals which they should fulfill so that they will enjoy the working environment and the pattern of working which is going on in the market. There should even be few more latest technologies involved in the working like proper computerized and quick payment section which is helpful to the employees as well to the customer which will lead to increase in sales.
So in a nutshell I would like to conclude that Asda faces lots of Human resource problems but the working pattern is also suitable in the current environment so the company cannot strive itself to be at it best in the environment.