Human Resource Development at Wellread Books

Wellread Books was established as a single bookshop in Hyde Park, Gauteng, in $2005.$ It has since grown rapidly and has

expanded to $46$ bookshops which are located in malls across South Africa. Up until $2015,$ Wellread served only the book

market, but following the appointment of a new chief executive, the company increasingly diversified into a number of

$$related$$ areas such as gifts and stationery. These areas have grown to represent a substantial part of each store.

Furthermore, larger Wellread stores now have caf$$s where customers are encouraged to browse books before they buy.

Up until $2020,$ Wellread experienced strong growth and increasing market share in the book retailing sector. Since then,

however, growth has slowed considerably, even when accounting for a decrease in consumer spending during the recent

economic downturn. More worryingly, its market share has begun to recede and Wellread is losing out to its competitors $-$

larger retailers who sell bestsellers at marked$-$down prices and online book sellers. To understand the deeper reasons for

this decline, Wellread commissioned market research to explore consumers$$ perceptions of their stores and what shoppers

wanted from a book retailer. The results were mixed. The research found that Wellread rated highly on the following criteria:

friendly staff and welcoming atmosphere. Moreover, the annual customer surveys show that customer service was rated

highly among regular shoppers at Wellread, many reporting that they know staff by name and often drop by for coffee and to

browse the books. The market research also found, however, that Wellread was rated worse than its competitors on staff

knowledge $($particularly in the areas of gifts and stationery$)$ and speed of service. Of particular concern to the company is

the fact that the high levels of $$footfall$$ at Wellread stores appear to translate into comparatively low sales volumes.

The company also recently conducted its first ever employee attitude survey which asked for employee opinion on a wide

range of issues, including the company itself, their jobs, why they chose to work for Wellread and what they felt they brought

to the company. The survey showed that a core of employees in each store had been with Wellread for a number of years,

albeit alongside a quite substantial transient workforce. These long$-$term employees appeared to be knowledgeable and

passionate about books, were committed and often highly qualified. Many were concerned, however, about developmental

opportunities within the company. Morale among staff appeared to be high, although this was largely explained by an

apparent loyalty to their colleagues and to their store manager. One respondent commented: $$I don$$t really see myself as a

Wellread employee, just an employee of this particular store$.$

In keeping with the relaxed atmosphere that the company seeks to develop within its stores, it advocates a paternalist

approach to employee management. Commensurately, the company allows a fair degree of autonomy to store managers in

how staff are managed at a local level, and whilst it promotes regular performance appraisals it is aware that some

managers take this process less seriously than others. Where they are conducted, they are generally informal meetings

used for employees to raise concerns or to make suggestions. Typically, no formal records are kept regarding appraisals.

Wellread has always recognised that business success relies on good customer service and the focus of employee

induction has been to instil in employees the importance of creating an accessible shopping environment which runs

counter to the popular perception of bookshops as $$stuffy$$ places and booksellers as $$snobby and condescending$.$ New

employee induction is$,$ however, typically brief and conducted by the store manager, often involving little more than a chat

as they $$walk the shop$.$ The only demarcation of staff on the shopfloor is between caf$$ and store workers. Store workers

typically work wherever needed in response to demand. Following induction, training activity for customer service advisors

is limited$.$ All shop staff are trained in the use of the point$-$of$-$sale technology and given a brief tutorial in the shelving

system. Staff are trained as and when necessary if new technology is introduced into the store. Caf$$ staff are given training

in using the coffee machine and in basic health and safety.

Drawing on all the information gathered in the review process, Wellread has devised a five$-$year growth strategy focused on

increasing sales and efficiency, improving customer perception and awareness of the brand and differentiating itself in the

marketplace.

QUESTION $1(25$ Marks$)$

$$Needs assessment forms the foundation and starting point for any HRD effort in an organisation.$($Krishnaveni$,2008)$

Critically discuss how Wellread Books should go about conducting a needs assessment within the organisation.