Coles' Human Resources Management Report

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Coles’ Human Resource Management Evaluation Report

Abstract
This report illustrates two key HRM strategies used by Coles Supermarkets-Reward Management and Performance Management. The core competence and business goal of Coles are elaborated and the room for improvement have been identified, whereby Reward management and its implementation have been critically analysed to bridge the gap between their operational loss (weakness) and optimum performance (desired goal). Likewise, the method in which Performance Management is used by Coles to lead their employees to work both efficiently and effectively has been analysed. Performance Management is a useful tool to evaluate and ensure employee activities line up with the organisation’s strategic goals. First half of the report focuses on the Performance Management system and its implications in the business; the second half focuses on Reward Management System and its implementation.

1. Introducing Coles’ core business
Coles is a leading food, liquor and convenience retailer in Australia (Wesfarmers Ltd 2012). The business operates more than 2200 retail outlets across Coles, BiLo, First Choice Liquor, Liquorland, Vintage Cellars, Coles Express and Spirit Hotels (Wesfarmers Ltd 2012). The business employs more than 100,000 team members and handles more than 18 million customer transactions a week. The goal of Coles is “to give the people of Australia a shop they trust, delivering quality, service and value” (Wesfarmers Ltd 2012).

1.1 Core Competence and business model
In order to better understand how human resources management is integrated into the business of Coles Supermarkets, it is vital to grasp the bird's eye view of the core competence and business model of Coles. This provides an insight to when and where HRM can be best implemented in the business. Among many core competencies such as supplier relationships, logistics, market growth, the share of wallet was identified to be one of the major core competencies for Coles (Progressive Grocer 2011). Share of wallet signifies that consumers are walking into Coles supermarkets and spending their money there. Therefore, it is clear that Coles stores are major customer touch point where cash inflow for the business takes place. With over 749 stores across Australia, Coles supermarkets have been able to reach out to consumers and create a cash inflow to generate their revenue and ROI (Coles 2012).

1.2 Organisational structure at Coles stores and the importance of Managers. Moving forward to take a closer look at the organisational structure of the stores, the key employees running the daily functions were identified. Each Coles store has a Store Manager to manage the whole store. Then, the store manager has a second in-charge (2IC) to manage the store with them. Since Coles supermarkets sell dry goods, dairy, meat, bakery, general merchandise and fruit and vegetable products (Coles 2012), they have their own departments within the store and various Department Managers to run them. The store manager and department managers are responsible for running the day to day operations and functions of stores such as, ordering stock, minimising wastes, paying their staff and maintaining high customer service standards. However, one of their major tasks are to present the regional manager with weekly sales, waste and wage projections. Sales, waste and wage projections help the top level management team to make informed decisions when dealing with suppliers and vendors. They also use the projections to forecast their ROI and profits.It is understood that the role of store managers and department managers play in the whole business model of Coles and it is deemed to be one of the most important employees for the survival of the business.

2. Internal/ External factors affecting Coles’ HRM.

2.1 External factors
There are six external factors affecting Cole's HRM. The first one is Political. Industrial relations means...
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