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Case Study – ASDA’s Effective recruitment

Summer 2020

HRM410: Techniques of Employee Selection & Recruitment
Coverage: Chapter 6


University ID No.

Refer to Chapter 6, read the Case Study and answer the questions.

Case Study – ASDA’s Effective recruitment

Asda is the UK’s second largest supermarket. It was founded in 1949 under the name of Associated Dairies and Farm Group but shortened this to Asda in 1965. It is a retailer focused on selling food, clothing, electronics, toys, home furnishings and general merchandise. Asda also offers a range of additional services such as ‘Asda Money’ financial services.

In 1999 Asda became a subsidiary of Walmart, the largest supermarket chain in the world. This enabled Walmart to enter the UK market but also gave Asda access to the full range of expertise of the Walmart company. Walmart currently employs over 2 million colleagues worldwide in 27 countries. In the UK, Asda is one of the largest employers with over 175,000 colleagues working across its many formats. These include a variety of roles in its Superstores, Supermarkets, Home Office, Distribution, George and Asda Living. Asda continues to expand its operations in the UK and recently acquired a number of stores from Netto to increase the number of local Asda Supermarkets.

Asda wants to be a trusted employer. Its success as a leading retailer is dependent on its trained and engaged colleagues providing excellent customer service. Asda is a growing company operating in highly competitive markets. The main reason for recruitment at Asda is due to expansion of the business and colleague turnover. Colleague turnover occurs for a variety of reasons, for example, retirement of existing colleagues and internal promotion which create gaps. As part of Asda’s HRM it seeks to retain as many colleagues as possible and aims to fill 70% of its leadership team vacancies through internal promotion. Last year it exceeded this target with over 80% of its vacancies being filled internally. A benefit of promoting from within is that existing colleagues already share Asda’s beliefs.

Asda’s comprehensive HR strategies engage colleagues and support the organisational culture. This includes Asda’s ‘Best Welcome’ induction programme, ‘Star programme’ to recognise excellent customer service, as well as Asda Academy’s framework for training and development and its ‘Colleague Steps’ for career progression. Asda offers its colleagues a wide range of opportunities for career development. This includes supporting and investing in its colleagues to gain qualifications that will enable them to become the next generation of leaders at Asda. For example, Asda offers:

· the industry’s first 3-year BA Honours degree in retail and distribution

· George retail foundation degree

· an accredited apprenticeship scheme (3000 apprenticeships in 2012).

Asda’s family environment and focus on colleague engagement means that the company has high levels of colleague loyalty and retention. The Big Asda Anniversary event recognises colleagues with long services from 25-45 years. The last event saw 1749 colleagues celebrating milestone anniversaries with the company.


commitment to its colleagues has resulted in the

company’s labour turnover decreasing in recent


As one of the UK’s largest employers Asda offers a wide scope of

opportunities. From students seeking work

experience to

apprenticeship and graduate training in a variety of areas. Living

Asda’s colleague


means that everyone is treated fairly and

given the opportunity to progress their career. Regardless of what

point of entry a candidate chooses, Asda has the same goal for

recruitment, to recruit colleagues who share

the same beliefs and

outlook as the company. What makes Asda stand out is its ability

to offer a wide variety

of roles due to its many business formats.

These range from roles in Asda’s Superstores and Supermark


such as Shift Leaders and Department Managers to logistics roles

within Distribution. In addition, Asda offers

roles within its Asda

Living, George and Home Office including key functions such as

supply chain, marketing

and HR. The Walmart family prov


Asda colleagues with global careers possibilities.

Ellen Rogan began her career as a Checkout Operator and from there

has undertaken roles as Customer

Service Manager, People Manager,

Asda Living Store Manager, Supermarket Store Manager and most


tly into her current General Store Manager. Ellen states:

‘For me, moving around very different roles


service, people

and trading


has really helped in what I’m doing now

because I’ve seen the business from

so many angles.’


Analyse the pros and cons to Asda of aiming to recruit


% of its leaders internally.

Discuss your








Evaluate the extent to which a commitment to training

and development

is effective in helping


colleague retention.







mobility path


Hierarchical or Alternative)



use for Ellen Rogan


Justify your






Techniques of Employee Selection & Recruitment

Chapter 6: Internal Recruitment

Muhammet Sait Dinc Muhammet.Dinc@aum.edu.kw


Heneman, Herbert Judge, Timothy A. and Kammeyer- Muller, John (8th Edition – 2014). Staffing

Organizations, McGraw-Hill Irwin. ISBN 13: 978-007- 108647-9.

Organization Strategy HR and Staffing Strategy

Staffing Policies and Programs

Staffing System and Retention Management

Support Activities

Legal compliance


Job analysis

Core Staffing Activities

Recruitment: External, internal

Selection: Measurement, external, internal

Employment: Decision making, final match



Goals and Objectives

Staffing Organizations Model


Chapter Outline

• Recruitment Planning • Organizational Issues • Administrative Issues • Timing

• Strategy Development • Closed, Open, and Hybrid Recruitment • Recruitment Sources • Recruitment Metrics

• Communication Message and Medium • Communication Message • Communication Medium

• Applicant Reactions


Learning Objectives for This Chapter

• Be able to engage in effective internal recruitment planning activities

• Apply concepts of closed, open, and hybrid recruitment to the internal recruiting process

• Recognize which recruitment sources are available for internal candidates

• Evaluate internal recruiting based on established metrics

• Be able to evaluate communication messages for internal selection

• Recognize how applicant reactions influence the effectiveness of a recruiting plan

• Understand how affirmative action plans are implemented for internal recruiting


Ex. 6.1: Hierarchical Mobility Paths


Exh. 6.2: Alternative Mobility Paths


Examples: Ways to Make Work Meaningful

• When upward mobility is limited by alternative mobility paths, special steps need to be taken to ensure that work remains meaningful • Alternative reward systems

• Team building

• Counseling

• Alternative employment


Characteristics of a Mobility Path Policy

• Intent of policy is clearly communicated

• Policy is consistent with philosophy and values of top management

• Scope of policy is clearly articulated

• Employees’ responsibilities and opportunities for development are clearly defined

• Supervisors’ responsibilities for employee development are clearly stated

• Procedures are clearly described

• Rules regarding compensation and advancement are included

• Rules regarding benefits and benefit changes are included


Discussion question

• Traditional career paths emphasize strict upward mobility within an organization. How does mobility differ in organizations with alternative career paths? List three alternative career paths discussed in this chapter, describing how mobility occurs in each.


Recruitment Planning: Administrative Issues

• Requisitions

• Coordination between internal and external efforts • Establish internal staffing specialist positions (placement/classification

professionals) to ensure consideration of internal candidates • Create policies specifying number and types of candidates sought both

internally and externally

• Budget

• Recruitment Guide • Ex. 6.3: Internal Recruitment Guide


Strategy Development: Closed Recruitment

• Definition • Employees are not informed of

job vacancies

• Advantages

• Disadvantages


Strategy Development: Open Recruitment

• Definition • Employees are made aware of

job vacancies

• Job posting and bidding system

• Advantages

• Disadvantages


Exhibit 6.6 Choosing Among Open, Closed, and Hybrid Internal Recruiting


Discussion questions

• A sound policy regarding promotion is important. List the characteristics necessary for an effective promotion policy

• Compare and contrast a closed internal recruitment system with an open internal recruitment system


Strategy Development: Recruitment Sources

• Job posting

• Intranet and intraplacement

• Talent management system

• Nominations

• In-house temporary pools

• Replacement and succession plans

• Career development centers


Talent Management System

• Comprehensive method for monitoring and tracking employee skills and abilities • Identify the KSAOs required for all jobs

• The complete set of KSAOs is compiled into a master list.

• The current workforce will need to be assessed for its competence in this set of KSAOs

• When positions come open, managers make a query to the talent management system to determine which employees are ready to come into open positions.

• Often coupled with specific human resources information systems (HRIS) to facilitate tracking KSAOs in the workforce


Career Development Centers

• Provide employees with opportunities to take interest inventories, assess their personal career goals, and interview with representatives across the organization

• Can be an effective retention tool for employees who desire a change, but the cost is often very high so ROI should be assessed regularly


Metrics for Evaluating Recruiting Methods

• Quantity

• Quality

• Cost

• Impact on HR Outcomes • Employee satisfaction

• Job performance

• Diversity

• Retention

• Ex. 6.7 Potential Recruiting Metrics for Different Sources


Searching: Communication Message

• Realistic • Different for internal applicants

• May be needed for unknown or newly created jobs

• Targeted • Focus on job rewards matrix


Searching: Communication Medium

• Job posting

• Other written documents • Brochures

• Videocassettes

• Diskettes

• Potential supervisors and peers

• Informal systems


Applicant Reactions

• Minimal research regarding reactions of applicants to internal recruitment process

• Perceived fairness • Distributive justice – Perceived fairness of

actual decision

• Procedural justice – Perceived fairness of process (policies and procedures)

Discussion Question

• What information should be included in the targeted internal communication message?



Transition to Selection

• Involves making applicants aware of • Next steps in hiring process

• Selection methods used and instructions

• Expectations and requirements


Legal Issues: Glass Ceiling – Overcoming Barriers

• Ex. 6.9: Ways to Improve Advancement for Women and Minorities • Examine the organizational culture

• Drive change through management commitment

• Foster inclusion

• Educate and support women in career development

• Measure for change


Ethical Issues

• Issue 1 • Let’s say a company called MDN Inc. is considering two employees for the job of senior

manager. An internal candidate, Julie, has been with MDN for 12 years and received very good performance evaluations. The other candidate, Raoul, works for a competitor, and has valuable experience in the product market into which MDN wishes to expand. Do you think MDN has an obligation to hire Julie? Why or why not?

• Issue 2 • Do organizations have an ethical obligation to have a succession plan in place? If no, why not?

If so, what is the ethical obligation and to whom is it owed?

Thank you

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