1 Introduction
1.1 Research background
In the era of "new retail", the market competition of supermarket industry isincreasingly fierce. As a new project of foreign supermarket in Guangzhou, Zcompany is facing severe problems of personnel efficiency and personnel cost. Thefundamental purpose of enterprise existence is to obtain profits. The profit is thebalance of the total turnover minus the total cost. Undoubtedly, the personnel costis an important part of the cost expenditure in the supermarket operation. In recentyears, due to the legal policies and market reasons, the labor cost of enterprises hasrisen continually instead of falling. Many enterprises are struggling for the highlabor cost. Reducing the cost of human resources and improving the efficiency ofhuman resources are the inevitable choice for the sustainable development ofenterprises.
"Cost reduction and efficiency increase" involves the effective control of the totalheadcount and labor cost of enterprises. It is necessary to return to the humanresource planning module and start from the "three determinations" strategy, theimportant basic work of human resource management. Through the appropriate planof determining work posts, determining headcount, and determining the man to theright job, the enterprise is able to allocate reasonable "tasks, work posts and people",and to realize "cost reduction and efficiency increase".
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1.2 Research purpose
In this thesis, Z company under the background of "new retail" is taken as thesubject of the study. By analyzing the current situation and problems of "threedeterminations" strategy in human resources of Z company, this thesis studies how tooptimize the "three determinations" strategy in human resources to form a suitableplan of determining work posts, determining headcount, and determining the man tothe right job, for the current situation of head office and store 1 of Z company. Inaddition, this study can help Z company to allocate reasonable "tasks, work posts andpeople", to reduce monthly personnel cost ratio by 10% and increase monthlypersonnel efficiency by 15%.
The "three determinations" strategy in human resources, which includes themanagement of determining work posts, determining headcount, and determining theman to the right job, is an important basic work of human resources management ofthe enterprises, and belongs to the content of human resources planning.Additionally, it is directly related to the effective control of total headcount and laborcost. In a certain period of time, through the proper "three determinations" strategyin human resources, the enterprise obtains the best combination among tasks, workposts and headcount by using limited capital investment, so as to improve "personnelefficiency".
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2 Literature review
2.1 Definition and basis of "three determinations" strategy in human resources
2.1.1 The definition of "three determinations" strategy
The "three determinations" strategy in human resources, that is, to determinework posts, to determine headcount, and to determine the man to the right job inhuman resource management. It refers to the reasonable working process ofdetermining work posts and headcount by using scientific methods based on a stableenterprise structure (Liu, X. P., 2014).
2.1.1.1 Determining work posts
Determining work posts is a process to design what posts are needed within thecompany. Under the condition that the organization structure of the enterprise isdetermined, the same or similar series of tasks of the particular department and thework processes are fixed to be completed by one or a group of people. The essenceof determining work posts is division of work. The work posts should be set byscientific methods, instead of set by people.
2.1.1.2 Determining headcount
After determining work posts, in order to ensure the normal operation ofproduction and operation activities, the headcount of employees is fixed in advanceaccording to certain requirements of labour allocation and workload. It is a processof deciding how many employees are needed to complete the tasks of the work posts.
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2.2 "Three determinations" strategy in human resources and its strategicsignificance
The strategic objective of an enterprise is one of the main factors that affectdetermining work posts and determining headcount. The developmental strategicgoal is in direct proportion to the demand of the post establishment. When theorganization's developmental strategic goal is determined, the requirements and thecorresponding post establishment will have a positive change, which means the postdemand will increase with the development of the strategic target. On the other hand,there is an inverse ratio between the competitive strategic goal and the demand of thepost establishment. When the strategic goal of the organization is determined, therequirements and the corresponding post establishment may change negatively, whichmeans the demand of the post decreases with the development of the strategic goal.However, there is no fixed model for determining work posts and determiningheadcount. Different methods can be used in different periods according to theactual situation of each organization (Lin, X.Q., 2017).
The "three determinations" strategy in human resources has a direct relationshipwith the development of an enterprise. Whether the headcount and competencies ofemployees matching to the work posts is scientific work, and is directly related to therealization of enterprise goals and the improvement of enterprise productionefficiency (Liu, X. P., 2014).
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3 Background...........................................12
3.1 Company introduction............................12
3.2 Organization structure.............................. 12
4 Case analysis.............................................. 20
4.1 The causes of "three determinations" strategy’s problems..............................20
4.2 The overall thought of optimization of “three determinations” strategy inhuman resources of Z company...............................21
5 Effectiveness analysis......................................44
5.1 Comparison of store 1 staff level personnel cost before and after optimization...............44
5.2 Comparison of store 1 personnel efficiency and personnel cost ratio beforeand after optimization...............................45
5 Effectiveness analysis
5.1 Comparison of store 1 staff level personnel cost before and afteroptimization
As it is mentioned before, store 1 had 40 staff level direct employees beforeoptimization, the original personnel cost for those 40 staffs in September, 2019 wasRMB241,797.88. According to the Table 4-21 Recruitment plan for the new workposts of store 1 and the Table 4-22 Division of direct employment and labor dispatchof store staffs, after optimization and in October, 2019, it had 16 staff level directemployees, and 26 staff level labor dispatch employees. The personnel cost ofstaff level direct employees of October was RMB99,609.56; while the personnel costof staff level labor dispatch of October was RMB121,550.00. Therefore, the totalpersonnel cost of the 42 employees of store 1 staff level in October wasRMB221,159.56. Even 2 labor dispatch employees of delivery were added in October, 2019, it decreased the store 1 staff level personnel cost by 8.54%(=221,159.56-241,797.88)/241,797.88, comparing that of September beforeoptimization of employment mode for store 1. Then, 2 more labor dispatchemployees of delivery were added in January, 2020. The personnel cost of the 44employees of store 1 staff level in January, 2020 was RMB230,509.56. It decreasedthe store 1 staff level personnel cost by 4.67% (=230,509.56-241,797.88)/241,797.88,comparing that of September before optimization of employment mode for store 1.It is found that by the optimization of employment mode in “three determinations”strategy of store 1, it can achieve the target of decreasing personnel cost.
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6 Conclusion
Driven by technological innovation and consumption upgrading, the supermarketindustry has developed from the traditional offline store operation mode to the "newretail" omni-channel operation mode integrating online and offline. Under "newretail" era, the market competition in supermarket industry is more and more fierce.And with the increase of personnel costs every year, "cost reduction and efficiencyincrease" is the primary problem for the supermarket enterprises to overcome. "Costreduction and efficiency increase" involves the effective control of the total headcountand personnel cost of the enterprise. It is necessary to return to the human resourceplanning module; and start from the "three determinations" strategy in humanresources, the important basic work of human resource management.
"New retail" is a new operation mode. In the previous academic researches, itseems there is relatively a lack of study on the "three determinations" strategy inhuman resources and its effectiveness under new retail era. This thesis selects Zcompany as the research object, which is a new founded foreign-funded enterprise inthe supermarket industry under "new retail" era. At the beginning of this thesis, therelevant literature about determining work posts, determining headcount, determiningthe man in the right job and personnel efficiency are summarized; the concepts andsignificance of the “three determinations” strategy in human resources and personnelefficiency are demonstrated.
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