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The main objective of this analysis is to critically evaluate the human resources strategies undertaken by the management of container store and its impact on their growth and customer service. It also helps in understanding various strategies that can help in the development of overall industry. This report will include a detailed analysis on the recruitment. This is a case analysis report prepared on the container store.Page |2 Introduction Employees are the greatest assets of any organization they help in the development and growth of the organization (Mathis & Jackson. this report includes detailed analysis about the employee management and business strategy of the container store. profits and strategies. customer and overall growth of the organization. Further. it will also include an analysis to evaluate that whether investing in employees can help the company in retaining both employees and customers. It will also include the actions taken by the management and their impact on the employees. development and employee management procedures. This case study helped in understanding the effectiveness of employee training and development. 2009). selection and training policies of the company. It includes information about the industry profits. . It includes information about its policy. About the case This case study includes an overview on the storage and organization retail sector industry of USA. it includes a brief discussion on the growth and development of this sector since 1978.
which leads to fast recruitment. employees’ recruitment involves high cost of advertisement. 2006).Page |3 Recruitment procedure at container store The container store follows a rigorous and strict recruitment policy. Further management also recruit from the customers. it also helps in motivating them and giving them the authority to search for the right candidate to work with them. so they can suggest the right candidate that can go fit with the organizational value system. The employees for the vacant positions are recruited through employee’s referrals (Cieri & Kramar. Otherwise. This method also helps in higher retention rates of the employees and increases the employee loyalty towards organization. it has been observed that many times involving a number of methods increases the total cost of recruitment to a large extent. It will also help in maintain a strong pool of talent in the organization. the company believes in waiting for a long time period for the right candidate instead of hiring a wrong one. 2003). the container store follows an employee referral program for recruiting employees. Instead if the bonus is provided to the employees for the organization for referring a good candidate. This recruitment policy . According to the given case. this shows the ongoing observation technique of recruitment that is being implemented in the organization. This is one method that also involves low cost. As employees understand the organization culture and requirements well. It helps in making employees feel responsible in the growth of the company. as it is done in container store then it will help in good recruitment as well as employee motivation (Armstrong. This procedure also helps in saving lots of time as it leads to less number of unnecessary applicants. it is a cost effective measure of hiring employees. agency hiring etc. existing employees might like this offer and also participate actively in recruitment of employees. This strategy also act as morale booster to the employees.
The selection procedure of the company involves a number of steps which has been discussed below. . This type of interview also helps in understanding the narrowing down the conversation and time saving method. The company follows a resource based recruitment policy. It helps in collecting additional information about the applicants and their interest. This stage helps in saving time and cost of the organization to a large extent. Selection procedure at container store The company follows a rigorous selection procedure to select the correct employee for the position. The above analysis shows that the recruitment method adopted by container store is much more reliable and helps the company in doing active and successful recruitment of talented employees. Telephonic screening This is a pre screen interviews. Group interview The next stage of the interview process is the group interview that helps in understanding the team spirit and interpersonal skills of the employee. which helps in developing the organization from within and available resources.Page |4 of container store also helps in achieving higher return on investment to the company. it helps in selecting few of the employees out of all the applicants. according to the company policy the management can wait for two months for selecting the right employee for the position.
different training programs are organized for new employees for better understanding and analysis. Company encourages its value system and culture and aims at recruiting candidates who understand the company demands clearly. The above analysis shows that container store gives enough time and labor to recruit the right candidate for the right position. It has been observed that majority of the organizations use to provide . The next step. Different training programs are organized by the management to help the employees to develop their skills and ability (Sumetzberger. this shows the seriousness of the management towards the development of the employees. Training procedure at container store Management of container store spends around 18 percent of the sales revenue on employee development.Page |5 The above two methods are the elimination rounds and helps in selecting few out of all. there inter personal skill and stress handling capability. Management encourages right selection of employees even if it cost high to the management. 2005). Company believes in growing with their employees. Further. Three different interviews The interviews undertaken helps in understanding the employee ability to understand the work. that is the personal interview round helps in understanding the candidate and selecting them for long run. which helped in increasing employee satisfaction and loyalty towards the organization. The training and development investment and labor given by container store is much higher than the general industry standard.
Management of container store has invested in the right place as employee satisfaction will lead to customer satisfaction. code of conduct and also tricks of selling. . the products. It also helps the employees in adjusting with the organization easily and fast. These types of training program also helps in increasing employees’ knowledge and gain their long term loyalty towards organization (Harzing & Ruysseveldt. This is done by the foundation week program. It helps in learning new things and get associated with their job in the best way. This concept of training goes well with the human capital theory which states that training helps in increasing the employee productivity by increasing their knowledge and skills. The management of container store actively investment in the development of their organizational resource. their employees. Under this training program employees are informed about the organization. which was specially designed to help the newly recruited employees to understand the organizational culture and value system. this also helped the company in gaining competitive advantage in the market by delivering excellent customer service. Besides providing adequate training to old employees. container store provides annual training for 235 hours. This will help in continuous development of their present resources. management ensured active development of new employees in the organization. services.Page |6 only 7 hours of training to their employees. whereas. Each department has a full time trainer which shows that container store management was highly dedicated towards employee development. 2005).
It also helps better organization of task. As the organizational structure is flat and employees are praised and prompted on the basis of work done. it also helped in avoiding any type of employee conflict in the company. fast decision making and higher authorities to employees. Team working and empowerment are great motivational tools. it was structured in such a way that it encourages higher employee satisfaction and loyalty. It helps in gaining higher employee satisfaction (Lauby. Further the team work and performance appraisal system in the organization also helps in motivating employees of the organization. Equal treatment of all the employees is also another important factor that helped in motivating the employees of the organization. This gives all the employees an encouragement to work better. it gives higher autonomy to employees to work for the organization. There was no gender discrimination in the organization. Flat organizational structure helps in easy delegation of duties. Management of container store provides both financial and non financial motivation tools to the employees. Further. this helps in motivating employees and also increases their confidence. There was high level of transparency in the system which helped the management in gaining employees trust in the management. the organizational structure of the company is also very motivating and supportive. Management gives credit and appreciation to all employees’ for their good work. 2005).Page |7 Motivational theories implemented at container store The overall organizational culture of container store was motivational. it helps in fulfilling different employees demand and gains their loyalty (Manzoor. . there were around 60 percent of women employees’ working in the organization and they were treated equally in the organization. All the part time and full time employees were treated equally in the organization.
It is very costly to hire new employees frequently. This approach of motivation helps in gaining employee commitment towards the work as they feel responsible and part of the organizational success (Simard. with the help of effective human resource strategy management gain higher commitment and loyalty from the employees. . Doucet. It also helps in increasing employee satisfaction from the work done by them (Noharia. & Eling Lee. Organization managed to increased its revenue by investing more on employees than on advertisement and other factors. financial support. The initiatives taken by container stores ensure continuous social learning among employees. The company ensured the overall development and support to the employees. Satisfied employees can help the company in earning a satisfied customer as well. It also helped in reducing the employee turnover rates and increasing organizational profitability. There are number of motivational techniques used by the company such as appreciation. this technique also helps in increasing team spirit among employees. This technique helps in development of employee knowledge through discussion and sharing. 2005). Groysberg. It also enhances group efforts and ensures effective productivity in the organization. discounts. The investment made by the management on its human resource helped in gaining competitive advantage over its competitor. and free classes. & Bernard. Conclusion The above analysis case helped in understanding how container store succeeded in the competitive market with the help of effective human resource strategies. It also helps in developing their skills and abilities to perform better.Page |8 2011). 2008). also this investment brought higher ROI to the company.
The company was following a totally different track from the industry and proved itself right by being so successful at their job. .Page |9 The management and strategies of container store helped in understanding the true value of employee management and satisfaction. This case study also helped in understanding the importance of developing the internal resources of the company to beat the external market conditions.
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