Table of Content
1. Executive Summary
2. Introduction of Report
2.1 Purpose of Report
2.2 Background of Report
3. Research Methodology
4. Research Limitations
5. Findings and Analysis
5.1 Compensation Management
5.2 Industrial Relations
5.3 International Employment
6.1 Compensation Management
6.2 Industrial Relations
6.3 International Employment
7. Conclusion and Linkage of the three modules
1. Executive Summary
The purpose of the report is to understand the HR climate in 7-Eleven. This report covers Compensation Management, Industrial Relations and International Employment.
The franchising right of 7-Eleven belongs to Cold Storage and Cold Storage is a subsidiary of Dairy Farm International Holdings. 7-Eleven is a leading convenience store retailer provides convenience food and lifestyle needs such as EZ-Link card top-ups.
The research consists of primary and secondary research. The primary research is the interview conducted with 7-Eleven’s HR Manager, Ms Jean Kok. 70% of the findings and analysis is based on the interview. The remaining 30% stems from secondary research such as newspaper articles. This information allows us to compare the practices of 7-Eleven with the industry.
Confidentiality issues limits the amount of information that 7-Eleven is willing to divulge. Information on the industry practices are also difficult to find as companies would not divulge private and confidential information on the Internet. Therefore, a couple of issues were based on our own assumptions. This affects the accuracy of the report.
Findings have shown that 7-Eleven adopts a cost cutter strategy. As such, the company has a match pay policy that enables it to maintain external competitiveness. Also, the company tries to achieve internal equity by paying according to the worth of the job.
Apart from the base salary, 7-Eleven also offers lump sum bonuses and annual wage increment. Performance appraisals are used to determine the bonuses that employees are entitled to. Therefore, 7-Eleven has implemented certain measures to ensure there is procedural and distributive justice. Together, these three items for the flexible wage system implemented in 7-Eleven.
Due to budgetary constraints, 7-Eleven also adopts a match benefits program which is aligned to its cost cutter strategy. Therefore, the types of benefits given in 7-Eleven are practised by its competitors. It ensures fairness of their benefits program by providing the same benefits for all employees. 7-Eleven also uses relational returns to attract, retain and motivate employees. It has clear career development plans and good work life balance. Lastly, 7-Eleven also has a good communication strategy to ensure all their employees understand its practices.
The recognised union of 7-Eleven is the Food, Drinks and Allied Workers Union. Only rank and file employees are allowed to join the union but less than half its rank-and-file employees are part of the union. The union and management renew their Collective Agreement every 3 years. Item that are spelled out in the CA are salaries, annual increment, AWS, benefits and training opportunities.
The management and union has always been on good terms and never had any major disputes. This is because both parties are very co-operative and usually adopts mutual consultation when making decisions. However, they occasionally have disagreements while negotiating for the CA. The company is very supportive of the government policies and adopts fair employment practices as well as the re-employment policy even before the government made it mandatory.
Diary Farm has more than 2 000 employees in Singapore. Of which, 70% are made up of locals. The...
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