Harvard Case - Aster Retail UAE (A): Connecting Employees, Customers and Business Results
"Aster Retail UAE (A): Connecting Employees, Customers and Business Results" Harvard business case study is written by Biju Varkkey, Bhumi Mahesh Trivedi. It deals with the challenges in the field of Human Resource Management. The case study is 34 page(s) long and it was first published on : Jan 3, 2022
At Fern Fort University, we recommend Aster Retail UAE (A) implement a comprehensive human capital strategy focused on talent management, leadership development, and organizational culture transformation. This strategy should be underpinned by a strong foundation of diversity and inclusion, employee engagement, and strategic HR planning. By fostering a culture of self-motivation, innovation, and collaboration, Aster Retail UAE (A) can attract, retain, and develop top talent, ultimately driving improved customer experience and business results.
2. Background
Aster Retail UAE (A), a rapidly growing retail chain, faces challenges in attracting and retaining talent amidst a competitive market. The company's current organizational culture is characterized by a hierarchical structure and limited employee empowerment, leading to low employee morale and engagement. This situation impacts customer service quality and hinders the company's ability to achieve its strategic goals.
The case study highlights the following key protagonists:
- Mr. Ali, the CEO of Aster Retail UAE (A), recognizes the need for change and seeks to improve employee engagement and performance.
- Ms. Fatima, the HR Manager, is tasked with developing and implementing a new human capital strategy.
- Employees are the primary stakeholders affected by the current organizational culture and lack of opportunities for career advancement.
3. Analysis of the Case Study
This case study can be analyzed through the lens of Organizational Behavior, Human Resource Management, and Strategic Management.
Organizational Behavior:
- Organizational Culture: The current hierarchical culture fosters a lack of employee autonomy and initiative, leading to low morale and engagement.
- Leadership Styles: The case suggests a top-down leadership approach, lacking in employee empowerment and feedback mechanisms.
- Employee Motivation: The lack of opportunities for career advancement and limited recognition contribute to low employee motivation.
Human Resource Management:
- Talent Management: Aster Retail UAE (A) faces challenges in attracting and retaining talent due to limited career development opportunities and lack of a strong employer brand.
- Employee Retention: High employee turnover is a significant concern, indicating a need for improved employee engagement and retention strategies.
- Compensation and Benefits: The case suggests that compensation and benefits are competitive but may not be sufficient to attract and retain top talent.
Strategic Management:
- Strategic HR Planning: The company lacks a clear HR strategy aligned with its overall business objectives, leading to inconsistencies in talent management and development initiatives.
- Performance Indicators: The case does not mention specific performance indicators for measuring employee engagement and performance, hindering effective evaluation and improvement.
- Corporate Social Responsibility: The case suggests a lack of focus on CSR initiatives, which can impact employee engagement and attract talent.
4. Recommendations
To address the challenges outlined above, Aster Retail UAE (A) should implement the following recommendations:
1. Transformational Leadership Development:
- Leadership Training: Develop a comprehensive leadership development program that focuses on empowering managers to adopt a more participative and coaching style.
- Mentorship Program: Implement a mentorship program where senior leaders mentor junior employees, fostering knowledge sharing and career development.
- Leadership Assessment: Conduct regular leadership assessments to identify areas for improvement and provide targeted training.
2. Employee Engagement and Empowerment:
- Employee Surveys: Conduct regular employee surveys to gauge employee satisfaction, identify areas for improvement, and understand employee needs.
- Feedback Mechanisms: Establish effective feedback mechanisms, both formal and informal, to encourage open communication and employee voice.
- Employee Recognition Programs: Implement robust employee recognition programs to acknowledge and reward employee contributions, fostering a culture of appreciation.
3. Talent Management and Development:
- Career Development Plans: Develop personalized career development plans for each employee, providing clear pathways for growth and advancement.
- Training and Development Programs: Invest in comprehensive training and development programs that enhance employee skills and knowledge, preparing them for future roles.
- Succession Planning: Implement a robust succession planning process to identify and develop future leaders within the organization.
4. Diversity and Inclusion:
- Diversity Hiring: Implement proactive hiring strategies to attract and recruit a diverse workforce, reflecting the company's commitment to inclusion.
- Diversity Training: Provide training to all employees on diversity and inclusion, promoting a culture of respect and understanding.
- Employee Resource Groups: Establish employee resource groups for different demographics to foster a sense of belonging and support.
5. Strategic HR Planning:
- HR Strategy Alignment: Develop a clear HR strategy that is aligned with the company's overall business objectives and strategic goals.
- Performance Indicators: Define and track key performance indicators (KPIs) related to employee engagement, retention, and performance.
- HR Analytics: Utilize HR analytics to gain insights into employee data, identify trends, and inform HR decision-making.
6. Corporate Social Responsibility:
- CSR Initiatives: Implement meaningful CSR initiatives that align with the company's values and resonate with employees.
- Employee Volunteerism: Encourage employee volunteerism and participation in community outreach programs.
- Sustainability Practices: Adopt sustainable practices throughout the organization, demonstrating a commitment to environmental responsibility.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations are designed to enhance Aster Retail UAE (A)'s core competencies in customer service and operational efficiency by fostering a highly engaged and motivated workforce.
- External customers and internal clients: The recommendations prioritize the needs of both external customers and internal clients (employees) by creating a positive and supportive work environment.
- Competitors: The recommendations consider the competitive landscape in the retail industry and aim to attract and retain top talent by offering a compelling employee value proposition.
- Attractiveness ' quantitative measures if applicable: The recommendations are expected to yield positive returns on investment by improving employee engagement, reducing turnover, and enhancing customer satisfaction.
6. Conclusion
By implementing these recommendations, Aster Retail UAE (A) can transform its organizational culture, foster a high-performing workforce, and achieve its strategic goals. This comprehensive approach to human capital management will enable the company to attract and retain top talent, improve employee engagement, and ultimately deliver exceptional customer experiences.
7. Discussion
Other Alternatives:
- Outsourcing HR Functions: This could be a cost-effective option for specific HR tasks, but it may lead to a lack of control and understanding of the company's unique needs.
- Mergers and Acquisitions: Acquiring a competitor with a strong HR culture could provide a shortcut to achieving desired results, but it comes with risks and challenges in integrating different cultures.
Risks and Key Assumptions:
- Resistance to Change: Employees may resist change, especially if they are accustomed to the current hierarchical structure.
- Time and Resources: Implementing these recommendations requires significant time and resources, which may need to be carefully allocated.
- Cultural Fit: Ensuring that the new culture aligns with the company's values and mission is crucial for success.
8. Next Steps
- Form a Steering Committee: Establish a steering committee comprising senior leaders and HR representatives to oversee the implementation of the recommendations.
- Develop a Timeline and Milestones: Create a detailed timeline with specific milestones for each recommendation, ensuring accountability and progress tracking.
- Communicate and Engage Employees: Communicate the vision and benefits of the new human capital strategy to employees, seeking their input and feedback throughout the process.
- Monitor and Evaluate: Regularly monitor the progress of the implementation and evaluate the effectiveness of the recommendations using relevant KPIs.
By taking these steps, Aster Retail UAE (A) can successfully implement a transformational human capital strategy that will drive business results and position the company for continued growth and success.
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Case Description
Aster Retail (AR) is the retail pharmacy division of Aster Dr Moopen's Healthcare (ADMH) Group. The group delivers healthcare services across the Middle East, India and the Far East with a portfolio of hospitals, clinics, diagnostic centres and retail pharmacies. AR, under the leadership of Chief Executive Officer (CEO), Jobilal Vavachan, is well known for its people-centric approach, unique culture and innovative human resource (HR) practices. AR has won multiple awards for HR practices, service quality and business performance. In a recent corporate restructuring, "Aster Primary Care" was carved out, combining the group's Clinics and Retail businesses. The case discusses the evolution of ARs' HR journey and the challenge to integrate culturally diverse businesses, without compromising ADMH values and promise, "We'll Treat You Well."
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