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Business Assessment: Gladwell Stores

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Introduction

It is evident from the scenario that Gladwell Grocery is not a small firm. One person playing the roles of the human resources manager and the operations manager is not an easy task. The person represents ten distant stores with an estimate of around four hundred and twenty employees. The key task performed by this manager is preparing payroll. Although spreadsheets are used, Gladwell could have adopted payroll software exclusively meant for preparing payrolls. The software simplifies the calculation of gross and net pay, taxes, and social security. In addition, it enables the subtraction of employee contributions such as union fees and health insurance from the paycheck (Mahajan, 2015). The software promotes recording and updating information, issuing deposits and checks. Some software indicates compensation package for the competitors’. The data ensures the firm does not under pay its employees. The other challenge is that the manager has to pay a visit to all locations on a weekly basis to perform the roles of hiring, recruiting, replying to questions, and scheduling. Unfortunately, more than half of the employees work on a part-time basis, a reflection that the manager is unlikely to meet all the employees during a store visit. Traveling is also costly due to increased fuel prices and not forgetting the time wasted during traveling. Moreover, it is tiresome visiting these locations regularly and manually performing similar tasks. The manager can ease the burden by adopting a Human Resource Information System (HRIS). The system is computerized and can assist in data management. Gladwell would have reduced hiring costs if it had implemented the system. A company can create a website which supports filling in the required information for a particular job vacancy. Job screening is performed online and if an interview is used to select the right job candidates then, the process can be conducted from one location, followed by posting the new hires to respective locations. Gomez-Mejia, Balkin & Cardy (2016) cited tracking and skills inventory programs as tools that can improve recruitment and selection. Tracking program store applicant’s information for access and analysis purposes, schedule interviews, update applicant’s status, and produces job offers. Skills inventory program aligns skill supply with demand. There is also a program for managing time. A database containing absence and leave records is prepared. The database assists in determining leave eligibility. The employees’ key in data for example, hours worked then, the manager confirms holiday requests and feeds it to payroll. The tool is also of help in monitoring attendance and punctuality. Coded cards are swiped during exit and entry. The respective times are logged in for analysis (Mahajan, 2015). Furthermore, data is stored in the system and can be accessed at any location and at any time, reducing the questions that require clarification.

Assessment

The retail sector is known for high labor turnover. There are costs involved in hiring, training and developing employees. Labor turnover also creates a bad impression from the customers’ perspective who meets new people daily. Low pay is the probable reason for the high rate of turnover. Krell (2013) confirmed that retail stores offer the lowest pay, unlike other sectors. As a result, the sector encounters difficulty in attracting workers. To solve the problem, firms should hire the right people; strengthen relations with employees; offer perks; and generous pays.

The other issue is adhering to regulatory laws. Wage rules differ from one state to another. Firms have to understand labor laws including the differences between full time versus part-time and exempt versus non-exempt. Healthcare reforms and constant wage increase is a challenge. The profits made by retail stores are low. Krell (2013) reported that the labor costs represented more than half of the expenses. To lower costs, firms opt for part-time workers. Grocery stores are at a disadvantage because they are bound by the minimum wage law. Most firms therefore, dismiss workers, minimize hiring, and hike prices to survive. Part-time workers are also employed to minimize health insurance costs.

The retail sector is also unique as customers interact directly with the workers. The customers value low prices and memorable experiences. Some customers may mobilize other customers to switch to a nearby store or purchase online if the prices are high or if irritated by a certain attendant which can upset the employees (Krell, 2013). Hence, training the workers on customer expectations is needed. It can motivate them to press on even when things are bad.

Employee diversity is another significant area. Diverse employees contribute ideas and solutions to problems, increasing productivity. However, diversity management is a challenge. Conflicts are likely to occur because employees come from different backgrounds. Conflicts pull down team spirit (Krell, 2013). The firm should educate on diversity, encourage the employees to share differences and appreciate one another.

The other problem is season fluctuation. The firm hires more workers during high season. The new hires may lack the needed skill and also clash with other workers. Several workers are dismissed during low season to cut back costs. In the recent finance crisis for example, the retail sector was greatly affected (Krell, 2013). It had to eliminate one million jobs. The firm can arrange for a meeting to enable the new hires to familiarize themselves with the regular workers and learn how work is done.

Identifiable issues

The key human resources functions recommended for Gladwell stores are:

• Planning

• Compensation and benefits

• Recruitment and selection

• Performance appraisal

• Training and development

• Employee and labor relations

• Employee safety and health

• Preparing payroll

The most essential function is recruitment and selection. A firm cannot run without employees. The employees are needed to perform work functions. In addition, it is costly recruiting and selecting people. Wrong people affect organization performance while high employee exit leads to work delays and missed opportunities. Absar (2012) argued that it is the most significant function. It consumed a large proportion of the human resources departments’ time. Hence, the recruiting personnel must be careful during recruitment and selection to hire people with the correct skills, knowledge, and abilities (Gomez-Mejia, Balkin & Cardy, 2016). Overall, the recruitment and selection process ensures that under qualified, unmotivated, and incompetent employees are sieved therefore, remaining with right people for right jobs.

Conclusion

Gladwell should implement HRIS. The data stored in the system is up-to-date and accurate. Such information ensures that people with the right skills are hired. Due to high labor turnover and the low profit recorded by grocery stores hence, unable to purely hire full-time workers, the firm can introduce the system because it lowers costs. The system integrates needed information. The information is accessible anywhere and by several people at any time. It streamlines tasks (Mahajan, 2015). Few people can maintain the database thus, reducing the required staff. Furthermore, it minimizes paper work because everything is automated. HRIS is fast, unlike recording the data manually. Lastly, it promotes rapid decision making and quickly answering questions (Jain, 2014). The manager for example, does not waste time searching for physical files. Data is accessed electronically and from one location. Message can be conveyed via emails, online chats, cell phones, or text messaging instead of travelling.

References

Absar, M. (2012). Recruitment & selection practices in manufacturing firms in Bangladesh. Indian Journal of Industrial Relations, 47(3), 436-449.

Gomez-Mejia, L., Balkin, D., & Cardy, R. (2016). Managing human resources. New York, N.Y.: Pearson Education.

Jain, A. (2014). Study on effectiveness of Human Resource Information System at Vistaar technologies (Mumbai). SIES Journal of Management, 10(2), 63-78.

Krell, E. (2013). Lessons from retail. HR Magazine, 58(9), 51-56.

Mahajan, J. (2015). Managing Human Resources. New Delhi, India: Vikas Publishing House.