RUNNING HEAD: Issues in Human Resources 1

Issues in Human Resources

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Issues in Human Resources 2

Contents
Introduction......................................................................................................................................3
Overview of Woolworths.................................................................................................................3
Equity, Diversity and Inclusion.......................................................................................................3
Equity...........................................................................................................................................3
Diversity.......................................................................................................................................5
Inclusion.......................................................................................................................................6
Mission Statement...........................................................................................................................6
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9
Issues in Human Resources 3

Introduction
The equity, diversity and inclusion program is being written for Woolworths retail supermarket
giant. As Keith, (2012) asserts, the retail giant has faced certain challenges from the way in
which it hires its employees, the manner in which it deals with suppliers to its responsibility to
the environment. There is, therefore, the need to come up with a proper equity, diversity and
inclusion mission statement to try and give the supermarket giant a facelift and regain its
dwindling glory. According to Knox, (2015), the entry of Aldi into the Australian supermarket
industry saw Woolworths and Coles lose a huge share of the market. Before the entry of Aldi,
the two supermarkets controlled over 80% of the market share. As Kobel, Kellezi & Kilpatrick
(2015) argue, the two mainly relied on price collusions to bar other entrants. The mission
statement will therefore grant Woolworths another chance of shining in the industry.

Overview of Woolworths
Woolworths is an Australian based firm that was found in 1924. The firm is run by country road
and Woolworths as subsidiaries. It operates with Woolworths Financial services under a joint
venture. The company is a market leader in all the markets in which it operates. It also boasts of
being the leading domestic online retailer in Australia (Hill & Jones, 2012). The companys
director, however, acknowledges that there has been a significant change in competition in the
industry and the behavior of customers in the market (Woolworths Limited, 2012). Woolworths
has a unique platform which enables it to attend to over 29 million buyers a week. The company
which is headquartered in Bella Vista controls over 70% of the market in Australia (Krafft &
Mantrala, 2010). Apart from groceries, the retail giant also sells other items like stationery and
grocery. In Australia, the retail giant operates 980 stores. Woolworth boasts of its ability to
closely work with farmers so as to get the best produce to the market. It buys about 96% of fresh
produce from farmers and 100% of fresh meat from farmers in Australia (Woolworths Limited,
2016).

Equity, Diversity, and Inclusion

Equity
Equity refers to fairness in treatment, opportunity, access, and advancement of all people
working in an organisation. Bell and Martin (2012) hold that standing for equity requires the
Issues in Human Resources 4

identification and the elimination of obstacles which prevent the full participation of groups and
individuals who historically have been underrepresented and underserved. Al-Zawahreh and Al-
Madi (2012) maintain that the achievement of equity requires an organisation to ensure that
everyone has the tools and access needed to ensure that his or her goals are accomplished.
According to Verbeek and Penninx (2009), individuals will perceive that they are being treated
fairly if the ratio of their inputs and outcomes are equal to those of the individuals around them.
Therefore, when everything else is equal, it would be acceptable to employees if a senior
colleague receives a higher compensation provide that his inputs and experience are higher. If
employees realise that their colleague is getting more rewards and recognitions, for the same
quality and amount of work as theirs, they would be persuaded to be dissatisfied. The
dissatisfaction could demotivate the employees and make them feel worthless (Esterhuizen &
Martins, 2008).

In her Equity theory, Stacy Adams categorised the benefits of employment and rewards into
outputs and inputs. Benefits and rewards denoted outputs and work efforts denoted inputs.
Example of benefits included the number of hours worked by a worker, work responsibilities of
an employee, the loyalty of an employee, an employees flexibility which would entail taking an
assignment at a very short notice and so on. Outputs included salaries, bonuses, prizes, work
promotions, pension, annual leave, the flexibility of employer, positive work appraisals and so on
(Bell & Martin (2012).

According to Adams, if an employee believed that their work inputs were not equal to their work
outputs, they would become demotivated. The theory takes into consideration the assertion that
an employee will try and compare their work input and output with those of their colleagues. The
employees will most likely compare their work inputs and outputs with other colleagues in
similar ranks (Bell & Martin (2012). According to equity theory, if the comparison results in the
feeling that the employee is being underpaid, the employee may be hostile towards the
organisation and co-workers resulting in diminished performance. The theory as Al-Zawahreh
and Al-Madi (2012) state, holds that individuals will become distressed when they realise that
they are in inequitable relationships. As Verbeek and Penninx (2009) argue, there is, therefore,
need for the management of an organisation to monitor the earnings of employees, have a
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discussion with their superiors, conduct an assessment of the employees efficacy and look for
ways of providing intangible rewards.

Diversity
Diversity in an organisation refers to the differences that exist between the people that work
within an organisation. According to Strachan, French, and Burgess (2010), diversity is wide and
entails gender, race, education, background, ethnic group, tenure, cognitive style, personality and
so on. As Lauring and Selmer (2012) state, it not only involves the perception that people have of
themselves within an organisation but also stretches to involve how they perceive others within
the organisation. Such kind of perceptions has a great effect on how people within an
organisation interact. As Lauring and Selmer (2012) advice, there is the need of the human
resource management to ensure that issues such as change, adaptation, and communication are
effectively dealt with within an organisation.

With populations getting more diverse, employers are coming to a realisation that employees,
vendors, and clients have differences and similarities which they must accept and appreciate.
Employers are realising that diversity extends past hiring employees from different diverse
ethnic backgrounds (Syed & zbilgin, 2009). Strachan, French, and Burgess (2010) argue that
diversity entails empowering and embracing all minorities. As Syed and zbilgin (2009) assert,
there is the need for employers to ensure that diversity practices are incorporated in their
organisations. Organisations are coming to the realisation that their success depends on their
ability to embrace diversity. Organisations should be willing to spend more of their resources in
managing diversity. Besides that, organisations that employ people from diverse backgrounds are
able to apply a greater variety of solutions to the allocation of resources, sourcing, servicing and
so on which gives them a competitive advantage over other players in the market. Employees
drawn from diverse backgrounds bring their individual experience and talent and suggest
powerful ideas which can be beneficial in dealing with the fluctuating markets and may be
instrumental in responding to the changing needs of customers (Syed and zbilgin (2009).

Working with employees drawn from diverse backgrounds enables an organisation to have
employees with diverse experience and skills. An organisation is able to put together a team of
employees who speak different languages and understand different cultures which may enable
global service provision (Davidson, Wood, & Griffin, 2009).
Issues in Human Resources 6

Inclusion
Inclusion entails bringing together the people drawn from diverse backgrounds (Petriwskyj,
2010). According to Shore, Randel, Chung, Dean, Holcombe Ehrhart and Singh (2011), inclusion
entails making use of the diverse talents and resources within an organisation. It puts the concept
of diversity into real practice through the creation of an environment where everyone is involved
and where everyone feels respected and connected. The ultimate goal of inclusion according to
Bleijenbergh, Peters, and Poutsma (2010) is to translate the different ideas, perspectives, and
backgrounds into value for an organisation. Inclusion increases the ability of an organisation to
achieve the desired business results by taking the inputs of people drawn from different
backgrounds into perspective through a consultative and participatory process of making
decisions.

Mission Statement
We are committed to being a diverse business entity that promotes equity, diversity, and inclusion
through a wide range of experiences and perspectives of all our stakeholders- The employees,
customers, suppliers and the general community.

How to Achieve the Mission Statement

The mission can be achieved at the organisation through fair representation in advertising which
as Porter and Richler (2011) argue will ensure that advertising campaigns demonstrate a fair
representation of diversity in print, in mobile, and web efforts of advertising. The technique as
Berry and Sam (2013) asserts, will ensure that the advertisement is open to all the people who
are interested in working at the organisation which promotes diversity in hiring. To ensure that
customers are fairly represented the organisation will ensure that there is no any form of
discrimination against customers who may have handicaps such as physical impairments,
learning disabilities by making sure that they are represented in the advertisements Sabharwal
(2014).

The organisation will also strive to recruit at minority events. As Allen, Dawson, Wheatley and
White (2007) advice, the organisation will target minority groups, businesses, organisations and
schools who host recruitment events and job fairs in a bid to help in filling positions that are
open and also encourage the minority groups to network so as to get employment positions
within the company. The organisation will strive to rent a both at such events and in some cases
will host its own events to try and attract minority. The language and images used on the signs of
Issues in Human Resources 7

the organisation for such events will be specifically designed to attract minority groups.
Woolworths will also try to make connections with minority organisations that may have
candidates with the desired skills and qualifications. The positions advertised by Woolworths
will then be posted on the blogs, job boards and the social networking sites of such organisations
as Porter and Richler (2011) maintain.

Diversity within the organisation as Berry and Sam (2013) hold, will also be encouraged through
a job rotation schedule. Employees will be introduced to other departments and other job
functions that exist within the organisation. The organisation will not limit diversity to gender or
race. Through job rotation, employees will be able to mix with their co-workers and learn what
they do and how their tasks contribute towards the success of the organisation. Through such
form of interactions as Berry and Sam (2013) posit, employees will be able to respect each other,
appreciate the diversity of the workplace and build strong and healthy relationships.

The organisation will also ensure that all the cultural holidays are celebrated as Sabharwal (2014)
advances. Cultural celebrations that represent different groups, countries or values will be held
monthly. The organisation will sponsor things such as the international potluck lunch and request
each employee to bring meals from their cultural backgrounds for sharing with their colleagues
within the organisation. Experts from different cultural backgrounds can also be encouraged to
visit the organisation and share their thoughts on diversity and how to work as a team.
Employees will be encouraged to wear attires that represent their traditional heritage or admired
heritage Berry and Sam (2013).

Employees will also be taught other languages. Indigenous employees hired within the
organisation will be taught the English language as Porter and Richler (2011) advice to ensure
that they interact properly with customers who visit the organisation. In case there are deaf
workers employed within the organisation, other employees will be taught how to communicate
using sign language to ensure that there is no breakdown in communication. Employees will also
be encouraged to learn other languages to enable them to learn about the importance of diversity
within the organisation.

The organisation will ensure that there is equity in all aspects of work within the organisation.
The human resource department will work hard to ensure that there is fair compensation across
all job levels within the organisation. The human resource department will conduct a job re-
Issues in Human Resources 8

evaluation as Sabharwal (2014) holds to ensure that there is a fair remuneration for all
employees. The organisation will conduct a mid and annual performance appraisal of all the
employees to ensure that any bonuses, salary increases or promotions are purely based on the
performance of all the employees within the organisation. Efforts advanced by Berry and Sam
(2013) will be put in place to ensure that all the managers are trained on how to handle and deal
with employee issues to ensure that there is equity in all aspects of their work and ensure that
there is no favor and discrimination which may demotivate other employees. Employees who are
committed to equity will be able to advocate for diversity and inclusion within the organisation.

The organisation will ensure that the principles of diversity, equity and inclusion are entrenched
in everything that is done for the employees, customers and even suppliers. Equal treatment of
suppliers as Allen, Dawson, Wheatley, and White (2007) hold will ensure that there is increased
supplier loyalty. Embracing diversity will ensure that there are no discrimination complaints
from the community in which Woolworths operates.

Conclusion
Equity, diversity, and inclusion are therefore important in all organisations to ensure that there is
increased productivity. From the words of Stacy Adams in her equity theory, employees will feel
demotivated if they have perceptions that other employees are being favoured despite their inputs
and outputs being the same. There is, therefore, the need to make sure that there are equal
treatment and remuneration of all employees based on their inputs and outputs within an
organisation. The human resource department can help by conducting a job re-evaluation to
ensure that there is equity in compensation given to all the employees based on their efforts and
outputs. Diversity and inclusion are essential for any organisation to ensure that employees learn
from each other and work in harmony. It also gives an organisation a representative outlook and
provides a rich ground for ideas and solutions drawn from different backgrounds which give an
organisation a competitive edge.
 Issues in Human Resources 9

Reference
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Al-Zawahreh, A., & Al-Madi, F. (2012). The utility of equity theory in enhancing organizational
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Armstrong, D. E., & McMahon, B. J. (2006). Inclusion in urban educational environments:

Addressing issues of diversity, equity, and social justice. IAP.

Bell, R. L., & Martin, J. S. (2012). The relevance of scientific management and equity theory in
everyday managerial communication situations.

Berry, J. W., & Sam, D. L. (2013). Accommodating cultural diversity and achieving equity.

Bleijenbergh, I., Peters, P., & Poutsma, E. (2010). Diversity management beyond the business
case. Equality, Diversity, and Inclusion: An International Journal, 29(5), 413-421.

Davidson, P., Wood, S., & Griffin, R. W. (2009). Management. John Wiley and Sons Australia.

Esterhuizen, W., & Martins, N. (2008). Organisational justice and employee responses to
employment equity. South African Journal of Labour Relations, 32(2), 66-85.

Hill, C. W. L., & Jones, G. R. (2012). Essentials of strategic management. Australia: South-
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Keith, S. (2012). Coles, Woolworths, and the Local. Locale: The Australasian-Pacific Journal of
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Knox, M. (2015). Supermarket monsters: The price of Coles and Woolworths' dominance

Kobel, P., Kellezi, P., & Kilpatrick, B. (2015). Antitrust in the groceries sector & liability issues
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Krafft, M., & Mantrala, M. K. (2010). Retailing in the 21st century: Current and future trends.
Heidelberg: Springer.
 Issues in Human Resources 10

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Woolworths Limited. (2012). Woolworthslimited.com.au. Retrieved 17 July 2017, from

http://www.woolworthslimited.com.au/page/Who_We_Are/The_Woolworths_Story/How
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Woolworths Limited. (2016). Woolworthslimited.com.au. Retrieved 17 July 2017, from

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