1. Question 1
Discuss how Edcon has managed to align their HR function to a strategic level.
Edcon has managed to align their HR function to a strategic level through numerous strategies that focuses on The Business; Human Resource Priorities; Salaries, Benefits and Work Environment; Black Economic Empowerment; Corporate Social Investment; International Stance, The Future; The People; Company Culture and Style. In order to be successful, the group has explored its physical, organizational, information and human resources to afford it a competitive advantage.
New stores have been opened to increase average trading space and gain market share from its competitors. Financial services have been established to provide credit facilities and financial services products.
1.52 Human Resources Priorities
The group works long hours to gain reputation and it pays employees less than financial services and professional careers. Edcon fires underperforming employees and recruitment and HR development are therefore considered critical to ensure that goals and objectives are met. Future retailing executives will be black and will have degrees to sustain success and elevate the level of retail management. Moreover, Edcon provides customised and generalist training of employees to move them from one brand to another. A 3-year MBA in retail management is offered at Scotlandâ€™s sterling University and training facilities of Technikon SA was acquired as a resource centre for all learning initiatives. The group offers more than 280 learning programmes with an average learning intervention of 2.9 programs per employee.
Well-defined competency profiles are set for all positions which guide the implementation of all management initiatives. On the other hand, the group has launched a comprehensive employee branding and marketing campaign which includes participation in job fairs, branded advertisement and university visits. A campaign to recruit international talent was also been launched to create awareness of Edcon as a global employer. Edcon will increase the number of disabled employees particularly in the groupâ€™s call centre and provide mobility and promotional opportunities to fulfill the human capacity requirements. There is a good relationship between the unions to avoid industrial actions.
1.53 Salaries, Benefits and Work Environment
Edconâ€™s remuneration is based on differentiating between individuals based on performance and competencies, securing employee commitment through numerous financial and non-financial rewards thus attracting talent. Remuneration packages are benchmarked internally and externally. The company pays employees in the top-quartile and short-term incentives are offered if certain profits are met. Retention bonuses are used to retain top talent.
Edcon offers funeral benefits in the event of death of a permanent employee or a member of his or her family and financial assistance to employees for studies at a variety of tertiary institutions. Bursary scheme for tertiary study for the children of employees is also offered by the group. An Edcon Care Centre provides staff with access to lawyers, medical practitioners, psychologists and financial advisor, telephonically at no costs. However, the group has a fully paid maternity leave for four months as well as paternity leave. Employees who live the Edcon values are recognized through Golden Hearts Awards, Long Service Awards and Exceptional Team Performance.
1.54 Black Economic Empowerment (BEE)
Edcon addresses the inequalities...