Analyzing Sainsbury’s Approach To Rewarding People And Employee Relations

Identification and Analysis of Approach of Sainsbury to Reward Employees at Work

The report helps in the analysis of approach of the respective company Sainsbury wherein the approach of the company towards the rewarding employees in the organization or at work. Furthermore, the analysis is done in order to understand the approach towards the employee relations which is required to be conducted in an effective manner.

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Sainsbury is the second largest chain of the supermarkets in the United Kingdom with more than 16.9% of the supermarket share in the entire sector. The Sainsbury is the public limited company wherein the company is serving in different countries with more than 1415 stores around the world (Sainsburys.co.uk, 2018).

There are different approaches which can be adopted by Sainsbury in managing and regarding the different employees in the organization. Furthermore, this has been seen that the employees are being rewarded with application of different methods such as:

  • Pay- Cash Payment (Osituyo, Marnetand Dawson, 2017)
  • Wages- Paid in cash to the different employees on a weekly basis
  • Salary- Yearly Salary which can be provided to the employees in a weekly manner

It was seen and analysed that the reward plays an essential role in the motivation provided to the different employees in the organization. In Sainsbury, it has been analysed that the performance-based incentives can be awarded to the different employees which will motivate and enhance the tasks which are done by them in the organization.

Sainsbury needs to improve the reward system which is provided by them to the different employees who are working in the respective organization. With the help of Maslow’s hierarchy theory, this can be analysed that the needs of the employees are taken into consideration as this will help in managing the different kinds of issues which are faced by them and sort them effectively. The main five needs are as follows:

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Physiological Needs: The different psychological needs include the different kinds of needs to eat, drink along with providing them with the different needs as this will increase the morale of the employees. The basic needs of the individuals or the employees include the salary or the yearly incentives or bonus which helps in motivating the individuals who are working in the organization (Jamali et al. 2015).

Belonging Needs: Proper cooperation for the job is essential in nature which is required to be done effectively with the different individuals as this will help the employees in managing their work and this positively influences the tasks performed by the organization (Reesand Smith 2017).

Self-Esteem Needs: With proper identification of the different job requirements, this can be seen that the organization needs to create a positive self image along with providing recognition to the employees who are working in the organization (Garavan et al. 2016).

Self-Realisation Needs- The organization Sainsbury needs to provide with different kinds of personal self-fulfilment and the need to grow and develop is essential in nature as this helps in managing the different tasks which are performed by the employees in the organization (Reesand Smith 2017).

Security Needs: Proper benefits are required to be provided by the different officials such as providing them with health and safety benefits along with equal and no discrimination among the employees is required to be done which helps the employees in managing the tasks in an effective manner (Sungand Choi 2014).

Application of Motivational Theories

There are different kinds of reward system which can be adopted by Sainsbury which will help the company in managing the different issues and motivate the employees effectually as well. The total reward system can be adopted by the organization which can help the company in bringing with different investments of the company (Dhar 2015).

Sainsbury can reward the employees wherein the direct cash can be provided to the employees such as providing bonuses, incentives and salary hike to the employees who are performing well and they are providing proper productivity to the organization as well. Furthermore, there are indirect benefits as well such as insurance or holidays along with assistance provided to the employees in the organization (Elnagaand Imran 2013).

On the other hand, the non-financial rewards can be provided to the employees such as providing the employees with interesting work as this will help the company in improving the organizational productivity. The fair treatment among the employees along with good and safe working environment will help in rewarding the employees effectively as well (Reynolds 2017).

                             

 It is essential that Sainsbury needs to improve the different kinds of rewards both financial and non-financial in nature as this helps in managing the morale of the employees and try to increase the productivity of the overall organization as well.

The total reward system can be linked with the motivational theories in such a manner that this focuses mainly on both financial and non-financial rewards and this focused mainly on improving the productivity of the organization effectively. This can be seen that the Herzberg’s motivation and hygiene theory mainly focuses on the different kinds of hygiene needs which will assist in managing the different kinds of needs of the employees both financially and non-financially.

Richey and Klein (2014) has stated that there is strong relation between motivational theory and reward and this has been seen that motivational theory is the entire process through which the behavior of the individual is influenced by the different persons. According to Maslow, this has been seen that the employees will be prepared to work when there is fulfillment of the five level of needs (Sankey and Machin 2014).

The performance related pay will help Sainsbury in managing the different kinds of goals and achieving them effectively. The managers of Sainsbury will be able to understand the performance of the employees with the different performance appraisal method which will assist them in understanding the poor or accurate performance of the employees. The healthy kind of performance-based culture can be developed by Sainsbury in managing the different kinds of ways to improve the performance of the employees in the organization (Nguyen et al. 2014).

Employee Relation is defined as efforts of the company to manage the relationships between the employees and employer. The organization with good employee relations program will provide fair and consistent kind of treatment to the employees which will help in analysing the commitment of the employees towards their job and loyalty towards the company as well (Noe et al. 2014).

Total Reward System

The industrial relation is the multidisciplinary kind of field that helps in studying the employment relationship. The industrial relation is increasingly called employment relations as the employees are being involved in the process of decision making and collective bargaining process is included in this respective field (McCleskey 2014).

The psychological contract is the set of written expectations of the employment relationship and this helps in analysing the employee and employer relationship in the entire organization. The psychological contract is required to be adopted by Sainsbury as this will help the officials in mitigating the uncertainty and this provides proper understanding of the situation in the organization towards the employees. Furthermore, in the HR department of Sainsbury, this helps in explaining the reason why the different recruits leave during the initial training period and the turnover raised as well (Sungand Choi 2014).

The psychological contract helps the company in being consistent with the time and this assist in making the employee relation stronger in nature which will help the company in gaining knowledge on the different kinds of issues which are arising in the organization to reduce such issues in the organizations in the future (Mahoney 2015).

Proper contract is required to be maintained by Sainsbury which helps the company along with the employers of the company in understanding the different kinds of contract terms which are being made by the company for the different employees. Furthermore, while recruiting the candidate, Sainsbury can provide the options to the employees who wants to join as there are different types of options such as freelancing and full-time work which can be helpful in managing the employees effectively (Northhouse 2013).

There will be huge flexibility in organization as there can be different kinds of opportunities which can be offered to the employees working in the organization. In the contract employment, the employees will be getting opportunity to choose by themselves by working on the particular project in which they are interested and this adds different other perks for the employees in the organization as well (Kyndt et al. 2014).

There are employment legislations which are required to be adopted by Sainsbury which will assist them in managing the different demands of the employees effectively.

Maternity and Paternity Leave Rights is the other legislation which can be adopted by Sainsbury as this will provide the employees with different equality rights and there will be no such discrimination. The maternity leave helps in improving the development and this helps the would-be mothers who are working in the organization to receive different benefits such as payment done to them for the six weeks till the time of post-delivery as well (Mahoney 2015).

Similarly, paternity leaves can be adopted by Sainsbury as well which will assist them in providing equal opportunity to both the parents in an efficient manner as this helps them in retaining the equality among the employees in the organization. Furthermore, this has been noticed that there are different rights and benefits which are provided to them and this has affected the morale of the employees in a positive manner as well (Mankin 2009).

Linkage of Total Reward System with Motivational Theories

There are different employment patterns which are required to be adopted by Sainsbury which helps the company along with the different employees in the organization to change the patterns which will help them in working in an efficient manner (Field 2017). It has been seen that in the present scenario, there are more number of women who are working in the organization which will help in managing the different demands of the employees effectively. The flexible working hours should be adopted by Sainsbury as this will help in offering the employees with such freedom as this will gain more productivity in the organization along with increasing the morale of the employees as well (Gall, Gall and Borg 2014).

Employee Involvement is defined as the participation of the different staffs which helps the organization in fulfilling the mission and meet the different objectives by applying the own ideas along with expertise towards the solving of problem and making efficient decisions as well (Garavan et al. 2016). Sainsbury is adopting the respective employee involvement strategy in such a manner wherein this has been seen that the company has tried to divide the different departments which help them in including the employees in the respective zone in which they are efficient and this will benefit the organization effectively as well. Sainsbury can try to include and provide all the employees in the process which will assist the company in gaining competitive advantage in comparison to the other companies. The employee involvement will help the company in increasing the productivity of the organization and this will improve the team participation as well (Edwards, Sieminskiand Zeldin 2014).

This is the process in which the different employees are involved in the process of decision making and this is the part of empowerment in the workplace as well. The employees who are working in Sainsbury needs to analyse and understand the different kinds of saying of the employees which will help the organization in receiving useful feedback which will efficient in nature and this can help in improving the overall productivity of the organization as well (Susomrith and Coetzer 2015).

The employees are the assets of the organization and they should be treated as the useful resource of the organization as well. Furthermore, the reward management has to be adopted by the organization which will assist in providing motivation to the employees to improve their morale and this will help the organization to gain more competitive advantage in the organization as well (Elnagaand Imran 2013).

Sainsbury has implemented the strategic change in which it has been seen that there is huge advancement of the technology which has helped them in managing the different approaches of the HRM. Previously, this was seen and analyzed that Sainsbury did not focus much on the needs of the employees as they followed the traditional reward system approach (Armstrong and Taylor 2014). However, in the current scenario, this has been noticed that the company is trying to focus mainly on the different kinds of requirements of the employees which will help them in managing the different issues effectively. The strategy of employee relations and rewarding the employees at work which has helped and assisted them in managing their work culture efficiently and appropriately as well (Banfield, Kay and Royles 2018).

Performance Related Pay

The Human Resource Management is the management of the workforce of the organization or the human resources. The HRM is responsible for recruiting and selecting the candidates who will help in maintaining the compliances in an efficient manner. The evolution of the HRM includes the two major steps such as:

Period of industrial relation- In which this has been seen that the worker’s wage and salaries are provided to them in an appropriate manner. This has been seen that the employees are being treated as the assets of the organization and this has led to the welfare towards the different employees in the organization as well (Deal and Kennedy 2008). In the present scenario, this has been seen that the employees are being valued and they are recruited and based on their performance, the performance related salaries and appraisal are being conducted with the different techniques of performance appraisal methods as well.

This is referred to as the framework or the tool which is used by the marketers as this assist them in analyzing and monitoring the micro environmental factors which can create a huge impact on the organization as well (Schein 2010). The result of the PESTEL analysis is to identify the weaknesses and threats which are used in the SWOT analysis of the company Sainsbury. With the help of PESTEL analysis, this helps Sainsbury in managing the different kinds of factors which can be opportunity for the company in an effective manner.

  • The political relations of United Kingdom with Qatar impact Sainsbury
  • The Brexit can have significant implications for the businesses (Carberry 2012)
  • There will be steep decline after the Brexit to impact the earnings (Mankin 2009)
  • There is rising demand for the organic food which can create different kinds of opportunities for Sainsbury
  • There are different sustainable kind of business practices which are gained by Sainsbury to garner the experience of the customers (Handy 2004)
  • There is proper usage of the data driven analytics which helps in deriving retail the insights of the consumers
  • There are different regulatory approvals wherein there is delay in decision making and growth in the business
  • There is reduction of the recycling and operational waste
  • There is reduction of the carbon emissions
  • There is strategic sustainability plan which can help Sainsbury in managing the decisions of the firm (Brewster, Chung and Sparrow 2016)

The SWOT analysis is performed in an effective manner which will help in understanding the different strengths, weaknesses, opportunities along with threats which are assisted by the organization in an ineffective manner.

  • There is diversified business with the strong share of market
  • There is strong kind of balance sheet with consistent type of profitability
  • The differentiated kind of proposition of food with excellent quality
  • Best place to work at with the diversity of the employees (Gilmore2013)
  • This is single kind of operating market
  • There is low margin for the food business
  • There can be global market expansion
  • The technology analytics can help in receiving the insights of the customers
  • Online groceries and convenience stores can help Sainsbury in gaining more profitability in the future
  • Impact of the Brexit on the different pricing (Mello 2011)
  • There is intense in the retail and grocery segment

The Porter’s Strategic options is essential in nature which helps in managing the different kinds of strategies which can be adopted by Sainsbury in managing the different kinds of issues in an effective manner. There are generally three strategic advantage which are available to the organization as to gain competitive advantage in comparison to the other competitors in the entire market.

This is the first strategic option which can be adopted by the organization Sainsbury which will help them in becoming more competitive than the other competitors in the market. The cost leadership strategy will help in minimizing the turnover of the staffs and this will help Sainsbury in achieving the maximum productivity from the staffs in the organization as well. This cost leadership strategy will help in ensuring that the staffs are properly selected which will assist the company in becoming more competitive.

The differentiation strategy will be adopted by Sainsbury in which this has been seen that the company is good ethical leader and the company needs to ensure that the employees in the organization are being able to deliver consistent standard of performance which will be beneficial for the company in an effective manner. This differentiation technique will help the company in delivering the best quality products and services and gain more competitive advantage as well.

Workforce Planning is essential in nature for Sainsbury as this will help Sainsbury in establishing the required size and shape of the future workforce. Furthermore, the workforce planning will help in ensuring that the organization Sainsbury has adequate supply of qualified individuals with the required skills, experience and knowledge which will help in achieving the strategic objectives both efficiently and effectively as well for short and long term as well.

Analysis of the Approach of Sainsbury in Relation to Employee Relation

Conclusion

Therefore, this can be concluded that the HRM practices play an essential role in the organization as this helps in managing the different kinds of issues faced by the employees and this affects the entire productivity of the organization as well.

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