Human Resources

Wal-Mart was the biggest company in the world. With sales at a quarter of a trillion and over 1. 3 million employees, it was the biggest retailing success ever. A lot of Wal-Mart’s success was attributed to the strong and pervasive culture at the company, which was developed and nurtured by founder Sam Walton. In over four decades of operation, Wal-Mart managed to retain most of the elements of culture it had when it first started out, as well as the entrepreneurial spirit which often drives startup companies to success.

Wal-Mart’s culture was characterized by an orientation towards customer service and providing the best value at the lowest prices. This is achieved by proper employee care. Employee well being was also given lot of importance and the company tried to project an image of a socially responsible entity, and is known for its strength and persuasive culture. Walton believed that happy and satisfied employees performed well and were responsible for happy customers. Walton believed that employees play a vital role in the success of a retail business and gave considerable importance to them.

To instill a spirit of equality and oneness among employees, the company adopted the practice of terming employees “”associates “” thus creating in them a sense of belonging and involvement in Wal-Mart’s activities and success. Walton believed that if he took care of the employees, they would take care of the customers in the same manner. He tried to create a positive and cheerful atmosphere in company. Wal-Mart was one of he first companies to introduce profit sharing and stock option plans for its employees. After going public it started Profit sharing plan.

The plan offered an opportunity to its employees to improve their income depending on the profitability of the store. Employees were offered stock options and store discounts. This was to motivate them to take active interest in the working of the company. A system of performance linked compensation and bonus also ensured that employees contributed their best to the organization. One of the unique features of Wal-Mart’s human resource policy was that the company did not authorize overtime work, it did not allow store managers to overburden employees with work.

The company also was committed to improving the career prospects of its employees. It also had a system of recruiting 70% of its personnel in managerial positions from the rank of hourly workers in stores. In spite of having so much systems favoring employees , Wal-Mart still have been criticized for certain aspects of its culture. Though Wal-Mart had a strict policy on overtime and company’s rule to forbade it, it was observed that, at most of the stores , employees worked between 5 and 15 hours overtime per week. Since company was very strict about not allowing overtime, it was usually done on unofficial basis.

‘Establish the theoretical and practical relevance of HRM to a retail organization operating in Leeds incorporating a critical evaluation of relevant retail management literature’ The management of Human Resources consists of the man management of individuals and groups whose performances contribute to an organization serving a particular purpose (Schermerhorn, Hunt and Osborn, 1994), including recruitment, training, processes and operations, requiring key decisions making and continuation of a viable workforce.

In this essay I aim to discuss and evaluate how the management team at Wyevale Garden Centre in York motivate their staff, in relation to various motivational theories, and to discuss the effectiveness of the different management styles used by all 3 store managers at the York branch, and how these aspects function in the day to day running of the store.

Though there are many areas and approaches to Human Resource Management, I will focus mainly on these areas of motivation and management styles and approaches, as the effectiveness to these two aspects can be clearly identified and discussed through evidence gathered on the organization itself. Wyevale Garden Centres consists of a chain of 114 stores in the UK, employing up to 260 people, and specializing in garden retail, including plants and furniture, as well as giftware and food. Wyevale turned private in 2006, after it was taken over by West Coast Capital, led by Sir Tom Hunter, and bought for i??

311 million. During the last trading year before going private (2005), Wyevale suffered a deterioration in profits after suffering a 6. 3% fall in pre-tax profit to i?? 20. 7million for 2005, and sales were down 14. 6% from the previous year during the first 15 weeks of 2006. Turnover was also down to i?? 187. 6 million from i?? 192. 5 million the previous year. Since the takeover and Wyevale becoming a private limited company in April 2006, it no longer has an obligation to publish turnover and profitability figures to the public upon request, and therefore I cannot comment on figures up to November 2006.

I have chosen to look the HRM of Wyevale, York because I am employed there as a Casual/Part-Time worker, and have been for two and a half years, and therefore I believe I can provide valuable insight to staff feelings on motivation and management techniques applied in the general running and operation throughout the store, and also how the managers manage their staff on one to one basis, and how these aspects have changed over the time I have worked there.

Firstly, I will look at various theories on motivation in the workplace, and see how these theories, if at all, are relevant to staff at Wyevale and are use practically in the workplace. I will look at these academic theories because they help me understand why and how the practical motivation approaches I observe in my work are carried out, as well as helping me to understand the relationship between theoretical approaches to management had how these have been adapted to suit the particular managers in question, and their attitudes and personalities.

Although all theories may not apply to Wyevale, I will still evaluate and discuss them to see if they will have any relevance to specific scenarios, or even in the future under the new board of directors. Here I will look at motivational theorists Maslow and McGregor and see how their theories apply to Wyevale, York at the present time. “Abraham Maslow’s Hierarchy of needs theory (shown below) identifies high-order needs (self-actualization and esteem) and low-order needs (social, safety and physiological requirements)” (Schermerhorn, Hunt and Osborn, 1994, p. 169).

The concept of attitude, although variously defined, is most commonly employed to designate inferred dispositions, attributed to an individual, according to which his thought, feeling, and perhaps action tendencies are organized with respect to a psychological object. Attitudes have three main components: cognitive, affective, and behavioral. The cognitive component concerns one’s beliefs; the affective component involves feelings and evaluations; and the behavioral component consists of ways of acting toward the attitude object.

The cognitive aspects of attitude are generally measured by surveys, interviews, and other reporting methods, while the affective components are more easily assessed by monitoring physiological signs such as heart rate. Behavior, on the other hand, may be assessed by direct observation. Not much more than a hundred years ago the term ‘attitude’ was used exclusively with reference to a person’s posture. To describe someone as adopting a threatening attitude or defiant attitude was to refer to his physical mien. True, the word can still be used in this manner.

But nowadays attitude increasingly connotes the psychological rather than the immediately physical orientation of a person, his mental state rather than his bodily stance (Fleming, 1967). Few, in any, organizational scientists disagree that attitudes play a central role in the discipline. Mere mention of the attitude concept evokes in the minds of most the study of job satisfaction. Often accompanying this cognitive representation of research on attitudes in the organizational sciences is a yawn or some other behavior manifestation of boredom. This less than enthusiastic reaction is understandable (Arthur, 1998).

The purpose of this essay is to examine the importance of the attitude within an organisation as well as to describe how attitude influence an organisation. The importance of attitude Employee work attitudes are a function of actual human resource programs, mediated by perceptions of organizational commitment to human resource efforts. Attitudes toward company values and job satisfaction are best predicted by this model, whereas attitudes toward general supervision, pride in working for the company, communication from the human resources department, and self-rated motivation are predicted very well.

Human resource activities have the increased benefit of having a positive impact on employee attitudes. Although this is a valuable outcome, this increased benefit may be evaluated in terms of its secondary impact on the financial performance of the organization, to the extent that improved attitudes positively affect job performance and other work-related outcomes (Cascio, 1982). Moreover, there are some reasons why the relationship between generalized employee attitudes and perceptions of the organization’s commitment to human resources is of interest.

First, employee attitudes are a widely researched topic. Employee attitudes, of which job satisfaction is just one, are an important component in the current personnel psychology and management literatures. Information regarding significant correlates of satisfaction and other employee attitudes thus will help academicians and practitioners gain a more complete understanding of the work situation. Second, employee attitudes are one component of organizational effectiveness (Kanter ; Brinkerhoff, 1981).

Although organizational effectiveness has been operationalised in numerous ways, employee attitudes play a key role in many conceptualizations of effectiveness. It thus is important to determine whether employee attitudes are related to perceptions about a company’s commitment to human resources. If they are, then the human resource department becomes of strategic importance to organizations in their plans to develop a more effective work force.

Employees’ commitment to an organization is a function of the extent to which an organization is committed to them. A third, but by no means separate issue, concerns the financial impact of human resource activities on the organization. Utility analysis provides a perspective within which the potential financial value of human resource activities can be determined. Employee attitudes are a probable contributor to the financial impact of a particular intervention.

A single employee attitude, job satisfaction, is again used for purposes of illustration. Job satisfaction has been shown to have a combined effect of significantly reducing turnover (Cotton ; Tuttle, 1986) and pro-union voting (Heneman ; Sandver, 1983), in addition to slightly affecting absenteeism (Hackett ; Guion, 1985) and job performance (laffaldano ; Muchinsky, 1985), and is therefore a reasonable variable to account for in utility analysis.

Our specific focus is on the perceptions that employees have concerning the commitment the organization has to its human resources program. If these perceptions are positively related to job satisfaction, then by extension, the overall perceived organizational commitment to human resources should have measurable utility. We are not arguing that the impact of the personnel function on the organization is only through the medium of employee attitudes, but merely that this is one component (Courter, 1979). The effects of attitude

Employees’ perceptions of their organization’s culture for success consistently showed positive relationships with organizational performance measures. Interestingly, employee satisfaction with pay and benefits consistently showed negative relationships with organizational performance indicators, suggesting that these elements of job satisfaction were less reflective of management practices that deal with organizational success. Employee perceptions of an organization’s “culture for success” showed substantial relationships to customer satisfaction.

Culture for success was measured by such items as: “adequate resources are provided for developing the technology of my business unit’s future products”, “My business unit plans future product and service offerings based on customer needs”, and “My business unit’s products and services are competitive in the marketplace”. Another employee attitude dimension highly related to measures of customer satisfaction was personal responsibility, which included such items as “Commitment to helping my business unit succeed” and “I protect the company’s property and business information as if it were my own”.

Customer satisfaction ratings were strongly and positively related to employees’ descriptions of key aspects of their working environment, especially working conditions, minimum obstacles to accomplishing their work, and a strong sense that supervisors and co-workers stress customer service. A number of employee attitude dimensions were related to customer satisfaction. One such employee attitudinal dimension was effective communication, which included items such as “my work group is told about upcoming changes in time to prepare for them” and “I get enough information about how well my work group is meeting its goals”.

Another attitudinal dimension was supervisory practices, which included items such as “My supervisor/manager makes it clear what I am expected to do”. In addition, there are several reasons why employee behaviors may influence organizational performance. Aggregate citizenship behaviors would improve group performance because they help people work together (Organ, 1988; Podsakoff, Ahearne, & MacKensie, 1997). Employees who help each other would not have to go to supervisors for help, leaving the supervisors free to do more important things.

Organizational citizenship behavior would also help coordinate activities among team members and across groups (Podsakoff et al. , 1997). On the other hand, employee attitudes cannot influence organizational effectiveness on their own; employees must also behave appropriately. Two employee behaviors that are important to many managers are job performance and retention. Conclusion In conclusion, it can therefore be seen that attitude is an important factor for an organisation.

The performance, customer satisfaction and also the finance of the organisation could be influenced by employee attitude. But, Organizational performance is not simply a sum of individuals’ performances; therefore it may be influenced by factors other than that affecting individual-level performance. One of these factors may be “shared values. ” If a unit’s employees share positive attitudes, they should have norms of cooperation and collaboration, which in turn enhance unit productivity.

An important assumption in management is that employee attitudes and reactions to organizational change are associated with departmental performance. In a service business, customer satisfaction is a critical performance indicator along with measures of unit productivity and administrative effectiveness.

References

Fleming, D. (1967), “Attitude: the history of a concept”, Perspectives in American History, Vol. , 1, Harvard College. Arthur, P. (1998), Attitudes in and around organizations, SAGE Publications. Dunnette, M. D. (1966), Fads, fashion, and folderol in psychology. Cascio, U. (1982), Costing human resources: the financial impact of behavior in organizations. Boston: Kent. Kanter, R. & Brinkerhoff, D. (1981), “Organizational performance: Recent developments in measurement”, Annual Review of Sociology, Vol. , 7, pp321-349. Cotton, I. & Tuttle, J. (1986), “Employee turnover: A mata-analysis and review with implications for research”, Academy of Management Review, Vol. , 11, pp55-70.

Globalisation is a reality that promises to become all pervading in the days to come. No organisation will be able to avoid it fully. The International Monetary Fund observes that countries that have been able to integrate alien cultures have seen faster growth and reduce poverty. This has resulted in some of the poorest nations in the world transforming into formidable economic powers. As the awareness of this fact increases, more and more nations and organisations will adopt international operations.

This report considers the implications of cross-cultural issues for such an organisation. Such issues are likely to be most prominent in areas of management that concern people most. While admittedly every area of management involves people in some role or the other, the two areas where people, and therefore culture, play the most important role are Marketing and Human Resources Management. A research by Sparrow, Brewster & Harris (2004, p. 62) revealed that global HR Management is likely to be influenced by information systems and marketing or corporate communications.

Considering these facts, the areas of Marketing and Human Resources management have been selected for the purpose of examining the likely impact of cross-cultural issues in an organisation that operates in several countries. In particular the implications of such issues on two diverse countries, namely the US and china are examined in the business of car hiring. These countries are from two different continents representing very different cultures and values. Moreover, they have been accustomed to different political ideologies and ways of operating. Marketing According to Kotler (2000), Marketing is concerned with stimulating demand.

This requires understanding the needs of the people and communicating to them what the company has to offer and how it would help meeting that need. The process of understanding customers’ needs and fulfilling them through a company’s products takes place through a number of steps, some of which are shown below.  Market Research: This involves the collection of relevant information about consumer preferences. Collection of information about diverse and complex markets becomes critical to the success of the marketing operations (Hollensen 2004, p135) At the same time this process is made more difficult because of cultural differences.

Product Strategy and Decisions

Product strategy includes a number of factors all of which have to be considered while deciding the strategy in a multi-cultural environment. First of all come the physical characteristics of the product such as colour, design, size, weight, and packaging. Each of these may have its own cultural implications. For example the colour black is unacceptable in Muslim countries, where it is associated with the modesty of women, whereas it is the standard colour for senior management furniture in Germany. (Interactive Global News 1996)..

Branding

A brand is “A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers. ” (American Marketing Association n. d. ). According to Kotler (2002, p. 187) Branding is a major part of long-term product strategy that involves a large investment of money. One of the important aspects of multi-national marketing is the segmentation of the markets based on similarities of culture. (Ekwulugo 2003, p. 95) A study into Chinese consumer behaviour by Hiu, Siu, Wang, and Chang revealed that the Chinese consumer belonged to one of three categories:

Trendy, perfectionist consumers? Traditional, pragmatic, consumers? Confused by over choice consumers of these only the trendy consumer was brand conscious, whereas the other two groups were not. The branding decision while marketing in China would have to consider this.

Pricing

The Pricing strategy is determined by the culture to which the organisation belongs. For example, Muslim countries prefer a strategy that ensures a reasonable profit rather than work on a price-maximising strategy. American companies have traditionally believed in price-skimming whereas Japanese multinationals have preferred price-penetration.

However, increasing globalisation has meant that all companies are veering around to using a combination of these strategies reflecting the cultures of the target markets (Callow ; Lerman 2003, p. 120)

Distribution

Distribution strategy could be very sensitive to cultural factors. One example that illustrates this rather dramatically is the example of detergent marketing in rural Colombia. Marketing personnel of a well-known detergent brand found that the people in the rural areas of Colombia had just not heard of their brand, and the marketing efforts had no effect on them.

The company adopted word of mouth publicity and use of the company’s own distribution channel to increase sales.

Promotion

Marketing communication is at the heart of promotion, and is highly influenced by cultural factors. Perhaps the highest number of examples of the complexities of cross-cultural marketing is available in this area. Human Resources Management “Human Resources Management is the way an organisation manages its staff and helps them to develop”. The important parts of HR management include the following: Human Resources PlanningHuman resources management concerns the recruitment and placement of people in various positions. It requires understanding of the capabilities and attitudes of people (prospective employees) and communicating to them the requirements of the job. Once the person is recruited and placed in the job, continuous communication needs to be maintained to ensure that he or she is able to perform the job satisfactorily.

At every stage of a person’s employment in an organisation a continuous process of communication takes place between the employee and the management represented by the employee’s immediate superiors as well as the Human Resources department. Variations in values between nations are likely to affect motivation, appraisal, reward systems, selection methods and criteria, Training and Development, and employee relations. Thus HR management in a multi-cultural environment has special issues to address.

Cultural factors

The international market is not one homogeneous entity that can be addressed in the same manner everywhere. It has to be segmented based on other influencing factors such as language, beliefs and inter-personal relationships to make it meaningful for most companies. (Stone ; McCall 2004, p. 18) Value systems and underlying beliefs affect the way cultural groupings behave, resulting in some groups being more comfortable with a more hierarchical and collectivist way of operation. (Sparrow, Brewster ; Harris 2004, p. 31)

When we speak of the values of a society we mean the mean values, with individual values varying from this mean within a society. Values have both intensity and direction, but usually only one of them is measured. (Hofstede 1998, p. 16) Two of the most important and oft-quoted work have been done by Hall and Hofstede. According to Hall, cultures can be classified as high-context and low-context. High-context cultures are characterised by higher involvement between people, greater distinction between insider and outsider, and long-standing cultural patterns that are difficult to change. (Bradley 2002, p. 103; Doole ; Lowe, 1999, p. 98) Generally, Asian cultures are believed to be high-context cultures and western countries low-context ones. The problem arises when two cultures that are differently oriented are trying to communicate. “The greater the contextual difference between those trying to communicate, the greater the difficulty firms will have in achieving accurate communication. ” (Doole ; Lowe 1999, p. 99) Hofstede proposed four dimensions of culture, namely, individualism, power distance, uncertainty avoidance, and masculinity. Individualism defines the extent to which people are independent in their actions.

In cultures where this is high, people look after their own interests, while in cultures where this is low; a person is expected to look after the interests of the group. Power distance measures the extent to which power in the society is influenced by an individual’s personal capabilities. Uncertainty avoidance reflects the willingness or otherwise to take risks. Masculinity measures the extent to which money and other supposedly masculine factors are important in the society as opposed to “feminine” qualities like concern for people. Chinese Work Values

While considering Chinese work values, the following facts need to be kept in mind:

Employment Practices

Chinese employment practices have undergone major changes since the policy of liberalisation. The earlier policy of providing ‘permanent’ employment has now given way to contractual employment. (Warner 1998, p. 86) ? Effect of Socialism: Apart from the values native to Chinese society and culture, China has been subject to the influence of a long tenure of socialistic form of government and society. For example, some studies have indicated low importance of factors such as pay, benefit and working hours in China.

These same factors, however were rated highly in Taiwan, showing that the value has its origin in the socialistic pattern of society to which it was long exposed rather than to any fundamental values of Chinese culture itself (Jackson 2002, p. 170)

Changing Values

Recent changes in China have resulted in changes in Chinese perspectives and value systems, so that what was once regarded as important or significant may now be regarded as unimportant or even undesirable. Although Hofstede’s original study did not include China, many of the dimensions that he has suggested are both applicable and perceivable in China. These are briefly discussed below.

Individualism

Like in most other Asian cultures, collectivism is high in China. In China this could be the result of Confucianism and the ancient land system. Both these influences are waning now.

Power Distance

This is high in China at higher levels and less marked at middle levels. Respect for authority and power is natural to the Chinese with age being regarded as a natural source of higher authority. Uncertainty avoidance: There are conflicting results from studies in this area.

However, more recent work seems to suggest that the Chinese are moving towards uncertainty avoidance. ? Masculinity: Available studies suggest that this is medium in China.

Long-term perspective

In general Chinese society seems to work towards long-term rather than short-term goals, with values such as thrift and perseverance characterising their actions (Jackson 2002, pp. 169-170) Each of these has its implications for Marketing and Human Resources Management functions. For example, the emphasis on long-term goals makes the linking of short-term goals with rewards less appropriate.

Recognition of group work may be more in line with the thinking of the people rather than emphasising individual achievements.

American Work Values The American way of thinking is characterised by the following

• Individualism: Americans are more prone to highlight individual achievements rather than emphasize their place and obligations in a group. This strong individualistic approach has implications in both Human Resources management and marketing. For example, recruitment of individuals may depend more on an assessment of personal achievement rather than on references. (Jackson 2002, p. 63)
• Power Distance: In America the power distance is not too high, and subordinates feel free to work independently of their superiors. ? Uncertainty Avoidance: Americans are not averse to risk-taking (Jackson 2002, p. 62) The effect of these two (Power distance and Uncertainty avoidance) together is that in the work situation both the subordinate and the superior are comfortable with independent working and taking the responsibility for the results. This could affect reward systems, performance management and also the selection and recruitment process. In marketing this could give more room to the person in the field to negotiate terms.
• Masculinity: Again this is high in the American context allowing people to work independently and assume responsibility for the consequences. A comparison of operations of a car hire company in two different countries Taking the case of the US and China as the two countries concerned, here are a few considerations for a car rental company for its marketing and Human Resources functions. Marketing First of all, the basic service itself will be different in the two countries with car hire on the basis of an individual self-driving a hired car being a common and well accepted practice in the US, whereas in China the concept is still new.

This involves a number of auxiliary considerations such as damage to the car, theft and dependability of the transaction. Collection of the car in one centre and payment for it in another location might be well accepted and feasible in the US, whereas it would be less so in China.

Some of the implications for other marketing functions are briefly discussed below

• Sales Promotion: May have to dwell more on the concept itself, and possibly be more circumspect in China. As discussed earlier, the symbols, language and colour will have to consider local sensibilities.
• Distribution: The distribution and franchisee arrangements would be influenced by, in addition to the legal framework, the cultural aspects such as uncertainty avoidance and individualism. The framing of contracts and their execution, for example, will have to take cultural factors into account. ? Pricing: An international company is likely to have a more or less uniform pricing policy across countries, but this may have to be reviewed and fine-tuned to the culture. For example, the basis for billing, the effect of late returns, and the price itself will depend on the penetration level and the local practices.
• Brand: Presuming that the brand is more well established in the US, since car hiring as a concept is comparatively new in China, the brand may be better known in the US, and therefore the advantages may be more readily available. Whereas in China the brand itself may have to be promoted and established. Human Resources Management As discussed in detail above, the system of recruitment and selection, performance management, pay management and training and development will vary substantially between the two countries. In China, personal references may have to be relied upon more than claims of performance.

The selection process will also consider the cultural variations. For example, direct questions on personal matters may be less resented in the US than in China. Performance management may have to be oriented to longer term goals in China and the organisation may have to exhibit greater patience in expecting results or coming to conclusions. The type of people recruited also will vary because the customers or prospective customers will require different approaches. In China personal relationship and personal touch may play a more important part in promoting and sustaining business, and hence might become more important than technical skills.

The nature and periodicity of training will also vary between the two countries. Conclusion Cultural factors play an important role in the functioning of an organisation in different countries. Taking the example of a car rental company that operates in several countries, and their approach to a few important functions in the US and China, it can be seen that the approach for various aspects of these functions in the two countries may have to vary substantially for producing effective results.

References

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