Corporate Strategy and Governance

Employee motivation is generally a process of keeping employees dedicated toward the for action they are required to perform in business. It is energy level, creativity and commitment which company workers bring at jobs. It is very important for entity to provide motivation to their work so that both organisation as well as individual goal and objectives can be achieved. Company usually performs number of action in order to keep its employees motivated and aligned toward the goals of organisation. It is because a happy and motivated employee is more productive then a worker who doesn't have an inner urge to work. So, in order to keep employees motivated, company must provide some reward over their performance like salary hike, incentives promotion and many more (Muchlinski, 2012). These actions support an employee to achieve their targets in order to get appreciation and appraisal from senior management. This in turn will help company in achieving their goals as well as competitive advantage at marketplace.

1.2 Overview and background of organisation

ASDA is a well known British Supermarket which offers a variety product related to grocery items and is consider as a second largest supermarket in Britain. It serve its customers through its number of store and online services that includes superstores, super-centre, supermarket, petrol filling stations and depots across UK boundaries. In addition to these core supermarket services, company also provide a number of other services such as mobile phone and financial services. Its marketing promotions is generally based upon its pricing strategy as it provide product or services at relatively lower price with a tag-line that says “Save Money. Live Better”. ASDA is operating its business in retail industry from year 1949 and has a great history of customer satisfaction as well as quality services. But apart from this, company is facing an issue related to its employees i.e. the women workers working in ASDA has filed case against organisation where they was discrimination among pay between male and female. The male employees working in same position got high pay as compared to female(Bell, Filatotchev and Aguilera, 2014). So in order to identify the solution to problem this research is conducted which support in determining several areas where improvement can be made in order to resolve this issues. As the major concern in this problem is that employees are demotivated toward their work which is required to remove in order to retain and maintain the employees within the organisation for longer period of time. These issues can be rectified using Corporate strategy which help ASDA in setting up certain rules and regulations to guide actions taken by company. This further support company in performing their operations in a planned and more reliable manner which in turn will provide it an opportunity to achieve desired result.

1.3 Rationale of research

Corporate strategy is very essential for a company as it support in solving the issues that are usually faced by company. Current research is conducted to determine the role of corporate strategy in improving the functionality of an organisation and removing the issues faced by an organisation. Main reason behind performing this investigation over corporate strategy is to determine benefit of this concept for an organisation and what impact does a company have when it implement business model of corporate strategies. This research is focused over ASDA and issues which are faced by company. As the female employees of ASDA has assumed that their pay is below the male worker and because of which they also filed a case against company to remove this culture of differentiation on the bases of gender. This has affect the reputation as well as performance of company for a large extent. By conducting this research, investigator will be able to determine the ways to overcome this issues and methods through which ASDA can regain its goodwill at marketplace (Sethi, 2012). In addition to this, it will also help in determining the role of Corporate Strategy in motivating employees and keeping them satisfied. This research is based on primary investigation that is conducted through collecting fresh data and because of which this research contains a relevant information. Research focuses on developing an understanding related with the ways in which Corporate Strategy support a company in formulating their objectives and improving operations for achieving success. As per the view point of researcher the equal pay law is one of the most crucial factor that must be consider by a company while paying off its employees. But in case of ASDA, company is paying its employees on the bases of differences in the term & condition on which employees are working. While conducting this investigation, research found several issues like time provided for investigation is very limited and it is not possible to investigate properly in such a short span of time-period.

1.4 Research aims & objectives

Research Aim:

“To ascertain the issues related to gender gap and its impact on employee motivation within workplace. A study on ASDA.”

Research objectives:

• To identify the issues related to raise gender gap within ASDA
• To ascertain the impact of equal pay legislation on organisational policies and employees of ASDA
• To evaluate factors that need to be considered by ASDA while developing corporate strategy to motivate its female workers
• To determine unique corporate strategy which helps ASDA in resolving its issue

1.5 Research questions

Research Questions:

• What are the main issues which raise gender gap within ASDA?
• How equal pay legislation impact on organisational policies and employees of ASDA?
• Which factors need to be considered by ASDA while developing corporate strategy to motivate its female workers?

CHAPTER 2: Literature Review

A literature review is also called narrative review which includes knowledge from substantive findings and theoretical as well as methodological contributions of particular topic.

2.1 Issues which raise gender gap within ASDA

As per BBC report given by Kamal Ahmed, it has evaluated that there were issue arise in ASDA related to gender gap. More than 1000 women claimed that they did not get same pay as male are getting being their job is of same value and position. There was difference in pay as women worker could be compensated six years of back pay. ASDA mentioned that they follow policies for equal pay and treating all staff equally(Van den Berghe, 2012). They are demanding from the company to implement “equivalent value” and majority of women get affected by this action. But it has been assumed that some male employees are working in stores also taking part in this process with an aim to get higher price. As according to them they would also get a pay rise when the actions are taken on behalf of women under Equal Pay Act. After fighting against it also there was 19.7% gap between male and female earning if measured in terms of hourly (Asda faces mass legal action over equal pay for women, 2019). Apart from this company stated that it pay off its employees on the bases of work which they performed and not the bases of gender or other discriminatory factors. Further ASDA said that they follow different sort of pay scale criteria on the bases of work performed by each department as it is impossible to maintain a single pay structure for employees when they all are working over different objectives as well as conditions.

As per the views point of Butler Sarah (2017), ASDA presented the report against this claim and said that there is no comparison between these two worker group. Because there are number of departments which operates the distribution channel as well as store differently and hence follow different methods to pay its employees. ASDA is now seeking for the permission to take this case to court of appeal. In case when ruling continues to hold then the retailers could be forced to adjust amount being paid to its shop floor employees which is around 100000 plus. But the GMB union is currently seeking that management of ASDA will answer about the solution of this issue. Apart from this they are also waiting that ASDA provide a sensible negotiated action that will present that female staff of ASDA will be paid and valued equally as male employees. But ASDA has claimed that the pay which is being provided to employees are on the bases of their departments as well as kind of job they perform within the organisation. In addition to this management stated that at ASDA hourly paid employees who are working over same job and location are paid with same amount. Men and women that are doing same job and at similar distribution centre have equal pay(Rao and Tilt, 2016). But the pay rate that are provided in store is different from the amount which is paid within distribution centre that is because of legitimate reasons i.e. different market rate for different job and sector.

2.2 Impact of equal pay legislation on organisational policies and employees of ASDA

According to business advice report (2019), it has said EU law was placed which ensure principle of equal pay between male and female workers when equal value is applied. It is effective in UK in which it can relied on employee against public and private sector. But a case of ASDA regarding Gender inequality pay becoming more frequent. But management said that ASDA is owned by WalMart which employ distribution worker which are generally male and they work at different site and wage because of which they have different mean of calculating pay. But the women claimed that they get discriminated on the bases of gender and doen't get equal pay (Amran, Lee and Devi, 2014). If the female employees of ASDA get succeed in this case then company has to change its plan and policies and restructure its payment system. Apart from this, company is claiming that pay which employees get are because of difference in the working terms. If it is so then this may also create more issues among employees regarding pay system which company operates. But despite of this, if the current pay system of ASDA is gender bias then the success of claimed case will help in satisfying the employees from their job. This helps in increasing productivity of organisation in smooth manner (What implications does the Asda equal pay ruling have for business, 2019).

As per the view point of Khan, Muttakin and Siddiqui (2013), The Equality Act 2010 work over the principle that men as well as women must be paid equally when they are working over same position. This become very crucial part of each organisation to follow this law in order to survive in marketplace. Recently, case regarding equal pay has been aroused in front of ASDA where female employees filed case against company and demanding for equal salary. This equal pay case against ASDA has been sued in year 2014 when the law firm named as Leigh Day asked the workers of ASDA retailer about the past and present. This has been done to influence employees if they are discriminated by the company then they come in front and join the claim for equal pay. They contacted large number of employees and then proceed to speak in employment tribunal on behalf of many of them. When the ASDA employees get succeed in their claimed case then company is required to pay £100 million for compensation and this will be raise in future. Apart from this employees will be able to compare warehouse and retail workers after wining the key legal argument. This may have potential implication for employees of retail sector who follow similar kind arrangements in their own workforce. On the other hand ASDA have to face increasing risk of equal pay claim(Tang, Hull and Rothenberg, 2012). They have to publish gender pay gap report on regular bases and then analyse the result and try to solve them if major issues find from this. Apart from this they have to conduct equal pay audit and improve their business policies on the basis of this analysis.

2.3 Factors that need to be considered for developing corporate strategy to motivate its female workers

According to Roy Saunderson (2019), there are number of factor that have a capability to motivate and influence the employees at workplace. So, in order to keep its female employees motivated toward their work, these factors must be considered by ASDA for developing corporate strategy. Following points describe about these factors:

• Reward Equally and fairly:- It is very important factors that need to be considered. Here, deserving worker should be awarded, increase in pay and providing benefits to motivate them. ASDA can consider such factors for increasing efficiency of workers and organisation (Fernando, 2012). They can establish qualitative criteria in order to evaluate awards and performance. Apart from this they can also set some reward system over particular range of targets where employees get rewarded in term of appreciation or monetary benefit in case when they able to achieve set targets.
• Respect and Courtesy:- Each and every women working in an organisation need to be respected and treated in better manner. This support in keeping female employees happy and satisfied with their job as well as workplace environment. This in turn will helps corporate in achieving their set goal and objectives by retaining their high skilled employees for longer period of time. ASDA need to consider such factors for motivating their staffs and workers so that employees feel respected to work in organisation (Top 10 ways to motivate women in your workforce, 2019).

On the other hand as per the view point of (..), the motivation of employees depend upon the various factors that are present within the working environment of the company as well as ways in which an organisation operates its business. Apart from this motivation of employees also get influenced by the behaviour which is present by employer to its employees and value that being provided to worker while they perform operations at job. Factor which affect the mindset and motivation of employees are given as under:

• Guidance to employees:- There must be a leader which regularly guide its employees during their work and support them to develop their skills at workplace. This has an great influence over mind set of worker as they feel valued and important for the organisation which motivate them to work effectively. ASDA must its women worker an opportunity to align themselves with corporate leaders so that they can get guidance from professional coach. This will represent a culture that company is very serious about the situation when it comes to the growth and success of females at workplace.
• Reward up-gradation:- It is one of the most crucial factor that must be consider by a company while planning for motivating its employees as cash reward not always work toward motivating employees. When any female employee truly goes beyond or above the work expected from her then ASDA must reward that employees in order to boost up their confidence and push them to work harder for getting appreciated. But cash benefit not always work well so company must identify new ways to appreciate their work like gift them family trip tickets, promotion etc.

CHAPTER 3 : Research Methodology

Methodology refers to theoretical and systematic analysis of methods, which is applied to conduct a study on specific topic. It provides description of different modes of data collection, which helps in gathering, analysing and interpreting the information, in research work. It includes primary and secondary resources which are used to collect specific information on chosen topic. Therefore, both methods give opportunity to researchers to conduct their research work in more precise and specific manner. They can obtain effective outcomes for addressing objectives of selected topic and give recommendation for further improvement as well.

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3.1 Primary Data Collection

When data is collected for first time by researcher then it is called primary data collection. It is specific and original work of research. Under this method, researchers are used to conduct survey in own manner by choosing a sample from total population. There are different methods for primary collection available such as interview, focus group, questionnaire, survey. Concept of these methods can be described in following manner:-

• Interview: It is conducted through telephone, mail or personally. In personal interview, there is face to face interaction where interviewer asks various questions. They get more reliable information through personal meeting. As it is time consuming and expensive where sample is taken from geographical area. Here, information is taken in depth and there is no misinterpretation. Sometimes, respondent can give wrong information to interviewer. In telephonic interview, interviewer collect information by contacting individual on telephone and ask questions orally. The main advantage of telephonic interviews are cheaper, less time consuming, flexible and no requirement of staffs.
• Questionnaires: In this type of method, questionnaire is sent to respondents who can read, reply and understand. The questions are printed on definite order and format which has to be filled by concerned person. The questionnaire should be short, simple, logical sequence and avoidance of technical terms. The advantage of such type of questionnaires are free from bias, adequate time to give answers, easily approachable to respondents. It also carry some disadvantages such as time consuming, chances of errors, inflexible and low rate of return.

As per this regard, project-makers use questionnaire method of primary research, to gather information about case study of ASDA.

3.2 Secondary Data Collection

When data are collected by other than user taken from published or unpublished sources is called secondary data collection (Wright and Brown, 2013). It includes publication of government, public records, journals, report of banks, magazines. For conducting secondary research, project-makers can obtain data from internal and external sources. Here, sales report; financial statements; customer details; feedback from retailers, distributors and more, are some internal sources which provided specific knowledge about company. Similarly, Governmental reports like population census and tax records; business journals; internet access etc. consider as external source for obtaining secondary information. Both of these sources help in gathering specific and reliable information on a particular topic.

It can be concluded that researcher use both technique for data collection in research for achieving their aim and objectives. Under this process, project-managers of ASDA have formulated a questionnaire related to employee motivation and reduce gender gap within business. This format has further fill up by 20 respondents who are selected randomly from total population (stakeholders).

CHAPTER 4 : Critical Review Of Results

4.1 Critical review on the basis of secondary research

The information which is gathered under secondary research are analysed through perception of various researchers, under this part. As in present research, issues related to female staff turnover are evaluated in ASDA, therefore, critical review of articles chosen for the same, can be analysed as beneath:-

Issues which raise gender gap within ASDA:

From the view point of (..), it has been evaluated that the ASDA follow different pay structure in order to provide salary to its employees. This includes payment on the bases of operations performed by each department as well as terms and conditions on which employees are working. For instance the worker that are working within retail department have a totally different pay as compare to the salary which warehouse department get. The retail department mainly hire male employees and by comparing their pay women worker filed a case against ASDA regarding equal pay. Around 1000 female employees are demanding to get equal pay as they want to remove the gender bias from company.

Impact of equal pay legislation on organisational policies and employees of ASDA:

As per the view point of …, it can be determine that Equal Pay Act work toward promoting the two employees working over same job profile must have be equally and should not be biased in term of their gender, age and disability. So, the case filed against ASDA regarding equal pay among males and females have an huge impact over organisational policies as well as employees working within the company. If the female employees get succeed in this case then ASDA have to give extra pay to shop floor employees that are around 100000 plus. This lead company to change its salary payment structure. Apart from this after increasing this pay employees of other department will also claim to increase their pay scale. Hence this issue may have negative impact over the working as well as performance of employees and also leads to increase in conflicts among employees at workplace.

Factors that need to be considered for developing corporate strategy to motivate its female workers:

As per the view point of (…), there are number of factors that are present in environment of workplace which affect the mindset of employees by motivating them toward achievement of their targets. These includes reward equally to all the employees which further influence them for working in the direction to achieve their targets with an aim to achieve the reward. Apart from this respect over workplace as well as regular guidance also support in inspiring female employees to work effectively. But in addition to this it is very essential for ASDA to improve its reward system as monetary benefit not always work well for appreciation. Hence it is very essential for company to show some creativity over their reward system in order to keep its female employees motivated toward their work.

4.2 Critical review on the basis of primary research

Under this part of research, critical evaluation has done on the basis of reviews and feedback of respondents. These respondents have been chosen randomly from a sample of total population. They have given their viewpoint on chosen topic which would organisation to take effective decision for resolving issues. Therefore, in context of present research, analysis of data which has gathered through primary research can be described in following manner:-

Theme 1: Gender gap can arise discrimination at workplace

Interpretation: In an organisation, any type of inequality on the basis of salary, wages, race, caste-ism and more, create discrimination at workplace. According to survey on 20 respondents, as mentioned in above graph, 18 users are agreed on this statement. They have stated that if a company runs unequal policies related to pay scale, gender and more, would create feeling of discrimination under workers. It will also negatively impact on performance of them which affect profitability and growth of business as well. While, remaining 2 respondents are agreed with same argument. As they believe that discrimination usually arise when a firm doesn't concern on developing relationship among workers, belongs to different background.

Theme 2: Gender gap affects organisational culture

Interpretation: Gender gap refers to an issue which arise when a company give employment to male staff more as compare to female workers. So, it creates discrimination under employees especially when female staff got less salary rather than of male. Therefore, it creates conflicts among workers and impact on their performance in negative manner. In addition to this, it also create negativity at workplace which affect organisational culture and policies too. As per this mentioned graphical representation, it has interpreted that out of 20 respondents, 17 are in favour of this statement. They also thought that any type of discrimination at workplace will definitely affect organisational culture. It would impact on individual behaviour also which affect their performance and productivity too. While rest of 3 respondents don't think the same. They have believed that discrimination could not affect culture in vast manner.

Theme 3: Issues can affect entire policies

Interpretation: Issues related to unequal treat employees on the basis of gender can affect entire business. As in case of ASDA, it has faced problems related to female staff turnover, which have occurred due to unequal payment. In this regard, some female workers have raised their voice on such discrimination against the respective company. Therefore, it affects perception of other staff also and create negative publicity of business also. This would also create difficulties in front of management to attract new recruiters to work with ASDA. It has interpreted from this given graph that out of 20 respondents, 8 are in favour with concept of influencing perception of other staff. They have stated that remaining workers think negatively about company and will not to work more for longer period. While, 5 users have stated that rumours about discrimination under workplace of a company, may create difficulties for HR administration. As they will face issues related to introduce talented workers within business. In addition to this, remaining 7 respondents are thought that it will affect reputation of company by creating negative publicity at marketplace.

Theme 4: Reason behind female staff turnover

Interpretation: As ASDA faces issues related to female staff turnover therefore, researchers have analysed that there are various reasons behind the same. It includes unequal pay scale, unfair treatment with workers, ineffective organisational policies etc. These factors arise discrimination among workers of ASDA on the basis of their gender as well as create job dissatisfaction among them also. So, it increases high-staff turnover rate within respective company, which impact negatively on performance and productivity of ASDA also. As per review of 7 respondents out of 20, it has evaluated that unequal pay scale of this company is the main reason behind female staff turnover. As it impact negative on job satisfaction of workers while working within its workplace. Other than this, 6 respondents have believed that treating unequally the workers and discriminate them on the basis of gender, will be main cause behind same. While, rest 7 respondents have stated that due to ineffective policies related to employment, human resource allocation, reward and compensation etc. increases staff turnover rate within ASDA.

Theme 5: Legislations help workers in raising their voice against discrimination

Interpretation: In order to improve conditions of workers within an organisation and prevent them from discrimination, Government of UK has made various laws. It includes Equal Pay Act 1970, Equality act 2010, Sex Discrimination Act 1984 and more. All these laws give opportunity to workers to get equality at workplace. In context with ASDA, it has interpreted from perception of 9 respondents out of 20, that Equal Pay Act aid its female workers to raise their voice against discrimination. As this law has amended all organisations which are run in territorial boundary of UK to give equal wages to staff as per their role. While other 6 respondents have stated that Equality Pay Act affects minds of people more. They gain rights to demand equal treatment from management if any type of partiality happens with them. Other than this, remaining 5 respondents are in favour with Sex Discriminate Act. As it prevents them from activities which create discrimination on the basis of sex.

Theme 6: Ways to motivate workers

Interpretation: In order to reduce staff turnover rate, it is essential for ASDA to motivate workers by concerning on various factors. It includes provide reward and compensation to employees on the basis of their performance and contribution in growth of business. Along with this, by showing consistent respect and courtesy to female workers and highlight such leaders by giving them a proper title. This would help in boosting morale of workers and motivating them to give best performance. It has interpreted from above graph that out of 20 respondents, 8 are believed that show respect and courtesy to female staff for their outstanding performance, will motivate them to work hard. It will also provide job satisfaction and arise feeling of equality in them also. In addition to this, 5 respondents have stated that by recognising workers and giving them rewards will retain them for longer period. Other than this, remaining 7 respondents believed that highlighting female leaders and giving them specific position will help in reducing staff turnover rate.

Theme 7: Factors which help in formulating effective corporate-strategy

Interpretation: As corporate strategy plays major role in increasing productivity of workers and improving policies of business. Therefore, in order to resolve issues related to discrimination among workers on the basis of gender, management of ASDA needs to concern on various factors. It includes reducing discrimination, women empowerment and reduce gender gap. All these factors assist management of ASDA to formulate effective corporate strategy. It will help in turning negative image of business into positive one and reduce staff turnover rate also. As per feedback of 5 respondents out of 20, they have states to reduce discrimination for retaining workers. While 8 users are in favour with women empowerment by which it can boost morale of female workers to give outstanding performance. It will also help in attracting people to work with this company. Apart from this, rest 7 respondents state that management of ASDA requires to concern on reducing gender gap among workers. This would help in promoting effective organisational culture and retaining workers for longer period.

Theme 8: Corporate strategies helps in retaining workers

Interpretation: Form the above mention graph it can be analysis that ASDA must take some decision or changes, so that they able to reduce the employees turnover ratio in appropriate manner. The researcher of respective company conduct research on 20 respondent and form that 17 respondent think that they must design new strategies. By it help ASDA able to retain their talented employees, especially female staff. According to this they can make policies, rules, programmes to reduce female employees turnover. On the other hand 3 respondent out of 20 think that they didn't need to design any new strategies to retain employees especially female workers.

CHAPTER 5 : RECOMMENDATION AND ACTION PLAN

5.1 Recommendation

In order to eliminate discrimination which has arisen due to ineffective employment policies, it is recommended to ASDA to build effective corporate strategies. This strategic plan will clearly define goal and ways for achieving strategic management. In this regard, it is important for organisation to implement and make strategy which are beneficial for both stakeholder and shareholder. ASDA has faced issue related to unequal pay between male and female because of ineffective policies related to salary. Due to issue, female staff workers have filed case against ASDA to provide them equal pay and treat equally. So, it arise many negative rumours about company and increase staff turnover rate as well. Therefore, in order to solve such issue, it is recommended to managers of ASDA to use Porter Value Chain Model as corporate strategy. This model will describe activities through which respective company can resolve its issue and gain high competitive advantage as well. As per this model which is given by Michael Porter, it has analysed that major activities of business can be described into two main aspects as given below:-

(Source: Value chain model, 2018)

Primary Activities

It is related with physical creation, maintenance, sale and support product and service. It consists of inbound logistics, outbound logistics, marketing and sales, operations, service. Such elements are very important for ASDA in order run different activities in organisation. It improve corporate performance of entity effectively and efficiently.

Support Activities

These activities support primary functions of organisation. For example, procurement helps in operations activities of organisation and also supports marketing, sales etc. It consists of purchasing, technological development, human resource development and infrastructure. Such elements are important for ASDA to be considered while implementing corporate strategy. This improves internal as well as external implications of entity.

Value chain model refers to an effective tool which helps an organisation in increasing its overall value of business. In context with ASDA, this model will create a link among key value adding activities, supporting activities and interface, which enhance total business' value. As behind unequal payment of workers, the main purpose of ASDA is to raise shop-floor wages. Therefore, it would negatively on human resource management which impact on entire primary activities of this company. By cutting wages of female workers, organisational culture has affected in vast manner. It arise negativity in perception of other staff which impact on their performance also. Therefore, this would affect entire primary activities that are inbound and outbound logistics, operations, marketing & sales, services more adversely. In this regard, it is recommended to management of ASDA to concern on modifying firm infrastructure. If this company wants to reduce its costs then instead of bringing new technologies, it must modify existing system. Developing infrastructure will improve performance of business as well as it will not also impact on primary activities.

5.2 Action Plan

Under this part of project, actions which are taken for completing a project is described by framing in proper duration. As in present context issues related to unequal pay scale among workers at ASDA has analysed. Therefore, some activities which are required to be performed for analysing the mentioned problem and resolving the same are described in following manner:-

Conclusion

From the above given report it can be concluded that corporate strategy plays an essential role in providing the direction to organisation for achieving their set targets. Corporate strategy work toward analysing the current situation and future risk then formulating the objective over which organisation work to achieve their set targets.

This corporate strategy support an organisation to determine the ways to keep employees motivated and happy with their work in organisation. It support company to enhance the productivity of its employee which further contribute toward achieving the competitive advantage at workplace. Apart from this corporate strategy also support company in dealing with several issues that may be faced by company due to external forces as corporate strategy consider all the factors that may affect the operations performed by company.

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