ASOS Organizational Culture and People Practices Case Study

Introduction: How ASOS Drives Success Through HR Strategies

In the dynamic business arena, organizational culture has a high level of impact on how workers communicate and work together. It includes a collection of ideals, traditions, and symbolism that have an impact on how a company functions and its employees behave. This study explores the crucial impact that ASOS' staff practices play inside the leading international clothing online shopping company. It investigates the way these procedures, which span the worker lifecycle, relate to different organizational elements and encourage more comprehensive plans. To connect human resources services with ASOS's changing company culture. The research also examines the relevance of speaking with and involving internal clients to comprehend their particular demands. The vital link between people practices as well as the efficacy of organizations in the quick-paced fashion business is clarified by this analysis.

Main Body

1. Key Insights into ASOS's Organizational Strategy and External Influences

AC 1.1 Evaluating the advantages and disadvantages of the organization structure

The organizational structure of ASOS has benefits and drawbacks. Positively, the flat structure encourages quick decisions and creativity, allowing the business to quickly adjust to rapidly evolving fashion patterns. A digital-oriented design also supports their online shopping strategy, which lowers overhead prices related to traditional storefronts. However, this organization could result in muddled roles and duties, which might make workers confused (Otley, 2019). Restricted personal contact can also make it difficult for teams to communicate and work cohesively. Additionally, keeping this system in place could prove difficult as the business expands, demanding perhaps an additional hierarchical organization. ASOS's flat hierarchy allows for flexibility but may also compromise its potential to scale.

The more conventional hierarchy that characterizes Burberry's business structure offers a distinct set of benefits and drawbacks. Positively, a system of hierarchy enables different levels of authority as well as duties that are lucid, which can improve integrity and effectiveness. Additionally, it encourages efficient management and coaching of workers, promoting skill advancement and career advancement. However, because there are several levels of management, this system could result in delayed decisions. Also, restricting autonomy for workers might inhibit creativity and ingenuity. Coordination and communication across different tiers may grow challenging as Burberry grows internationally. Although the hierarchical framework offers transparency and control, it can also stifle creativity and adaptability.

Due to the ever-evolving nature of online shopping, ASOS’s flat organizational structure is largely influenced by its digital-centric company approach. In the rapid-moving fashion sector, swift decisions and innovative thinking are crucial. The lack of real estate also brings down overhead expenses (Al-Swidi, 2021). As it expands, though, it can lack a clear definition of roles and obstruct direct interaction. Conversely, Burberry's conventional hierarchical organization underscores the requirement for obvious power and duty for an increasingly recognized fashion company. This organizational structure aids in staff growth and monitoring but may impede innovation and making choices. Additionally, it supports Burberry's international reach, although as the business grows, interaction and collaboration may become more difficult.

AC 1.2 Analyze connections between an organization’s strategy and its products or services and customers

The organizational strategy of ASOS Fashion is closely related to its offerings and customer-focused philosophy.

• A client-focused approach- Providing a consumer-centric shopping experience is at the heart of ASOS's fundamental strategy, which recognizes the importance of comprehending client tastes, involving rapidly evolving fashion developments and the desire for ease. This strategy has a significant impact on the products and services they offer. With a wide range of items to suit all interests, budgets, as well as sizes; ASOS encourages inclusion for all people, regardless of age or gender. Their dedication to rapid fashion guarantees that their stock is quickly updated to reflect the newest trends. Utilizing technology, ASOS uses AI and information analytics to customize product suggestions, enhancing the client's shopping experience as a whole.
• Online Store Approach- The core of ASOS's plan is its status as a clean-play internet retailer, which has a significant impact on its offerings in both goods and services. This online company plan puts a focus on availability for everyone, eliminating geographical restrictions and allowing clients the option to purchase whenever and wherever they choose. To offer low prices and a wide range of items, ASOS avoids opening physical locations, which reduces overhead expenses (Sabuhari, et.al, 2020). They also accept sustainability inside this approach, providing green alternatives and promoting ethical fashion decisions in line with changing client values, therefore fusing their online identity with environmental awareness.
• Consumer involvement and input- This is prioritized by ASOS, which shapes its goods and services. By using input from customers, they improve the design as well as the quality. Client input helps to enhance delivery, refunds, and support services. This strategy demonstrates ASOS's dedication to changing and adapting to the various demands and tastes of its customers.
• International Expansion- A crucial component of ASOS's tactical goal, worldwide growth has a big impact on the company's consumer base and item reach (Stark, 2022). As a means of achieving this objective, ASOS invests in item localization, adjusting its selection to reflect regional fashion developments and cultural habits. By taking this tack, they may appeal to a wider range of foreign audiences. As ASOS expands into other areas, it comes across an extensive variety of client demographics, allowing it to customize its goods and services to suit unique likes and requirements, further solidifying its standing as an internationally important and customer-oriented internet retailer.

AC 1.3 Analyze three external factors or trends currently impacting the concerned organization

There are presently three key variables affecting ASOS Fashion described below:

• Economical factor: Economic issues like inflation, the downturn and changes in customer purchasing patterns have an immediate effect on ASOS. Customer’s preferences towards fashion trends and buying behaviour are declining due to slumps in the economy. To overcome these obstacles, ASOS can put a priority on preserving price parity by possibly providing more affordable product selections. Also, improving inventory administration may assist in lowering overhead expenses. Making sure the business is robust amid economic volatility and continues to offer quality to clients who are price-aware.
• Environmental factor: Customers' increasing environmental awareness has an important influence on ASOS (Christodoulou, 2019). The company needs to tackle sustainability issues in its supplier network, manufacturing procedures, and item offerings in order to match the need for environmentally friendly fashion. Putting green initiatives, like using green goods, cutting waste and openly informing clients about these endeavors are crucial. Along with this, better aligning ASOS with this popular trend, adopting cyclical fashion models. Further, ethical sourcing procedures may help the company project a more environmentally and ethically conscious company image.
• Legal factor: Laws that are changing can affect ASOS's international activities and handling of consumer data, involving data protection laws and import and export limitations. Regulation compliance needs to be prioritized by ASOS to overcome these issues. This entails making substantial investments in data security safeguards, consulting legal professionals, and modifying logistical tactics to successfully manage shifting trade-linked restrictions. By doing this, ASOS can protect its company activities and client information while maintaining legal compliance in the ever-evolving regulatory environment.

Outside forces have a variety of effects, some of which may be favourable (such as sustainability). Some of whom might be neutral (such as regulatory modifications). In addition to this, some of them can be adverse such as economic patterns. ASOS may prosper in the quickly evolving apparel business by proactively tackling these issues.

AC 1.4 Assess the scale of technology within organizations and how it impacts work

ASOS, a well-known online retailer of clothing, depends significantly on technologies to run its business and provide a positive consumer experience. The use of tech is widespread at ASOS and has a significant influence on many types of work done there. Automation has played an essential part in the world of supply chains and logistics. To streamline selecting and packaging procedures, increase productivity, and lower the possibility of mistakes, ASOS utilizes robotic machines and moving parts in its warehousing (Gazzola, et.al, 2020). Also, powered by AI algorithm improves dispersion, demand estimation, and inventory administration. By allowing ASOS to retain a varied product variety while effectively controlling stock ranks, decreasing the incidence of excess and shortages of stocks. The use of technology dramatically improves the client encounter. To increase sales as well as retention of clients, ASOS uses AI to offer customized product suggestions that cater to each client's interests and shopping history. Additionally, chatbots that are automated manage consumer inquiries, providing prompt replies and help, and enhancing client service effectiveness total.

The procedure for making choices at ASOS heavily relies on analyzing information. Large volumes of data from consumer contacts, sales, and market dynamics are gathered and analyzed by them. This based-on-data methodology supports strategic choices and helps with choosing items, price plans, and focused marketing initiatives. Choosing clothing products that are inclined to be in need, driven by AI analytical tools also helps with trend forecasting, lowering the risks involved with inventory administration (Helo, 2022). A key part of ASOS's electronic commerce approach is its Smartphone application and webpage layout. Although the web page's user interface is continually adjusted for smooth and attractive navigation, boosting participation and sales, the Smartphone app extends the buying experience with capabilities including AR for realistic try-ons. In conclusion, ASOS's tactical use of technological advances in these fields places them in an advantageous position within the competitive field of online clothing stores.

Although ASOS advantages greatly from technology, there are drawbacks as well. Workers must constantly upgrade their skills and change due to the quick speed of technological progress. Efforts to reskill workers are required as a result of issues raised by automation over the possible loss of employment. Managing the confidentiality and safety of data is essential in the world of online retail. Collecting enormous amounts of consumer data necessitates extensive security techniques to defend against information theft and cyber-attacks.

2. Organizational Culture, Behavior, Change Management, and Wellbeing

AC 2.1 Explain Edgar Schein’s model of organizational culture and explain one theory or model which examines human behavior

The 3 hierarchical corporate culture levels identified by Edgar Schein's corporate culture pyramid are Artifacts, Espoused Values and Underlying Assumptions. The importance of these levels in determining a company's genuine culture varies.

• Artefacts- The apparent and physical components of a business, including its attire, workplace design, logos, and customs, are included in this exterior level of culture (Edgar Schein: Organisational Culture Model, 2023). These are readily discernible characteristics of the culture of a company, although they might not always be indicative of its deeper fundamental beliefs and presumptions.
• Espoused Values- The declared principles, beliefs, and conventions that a company proclaims make up the next layer. This covers the stated aims, policies in writing, and formal declaration of purpose. Through multiple mediums including business literature and methods of communication, these principles are frequently presented to workers and other stakeholders.
• Underlying Assumption- The foundation of corporate culture can be found in the deepest stratum. They are the hidden, sometimes unwitting, presumptions and ideas that direct conduct inside the company (Schein, et.al 2021). Workers often overlook them for granted and cannot be fully conscious of their effect since they are so deeply embedded. These presumptions influence how workers view and react to different circumstances and choices.

The concepts that underlie at the most fundamental level, according to this paradigm, have the greatest influence on organizational actions and choices. It takes a difficult and prolonged procedure to tackle these core beliefs in order to change company culture.

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Human behavior theory

Considering fundamental physiological demands at the bottom of an order of five levels and greater-level requirements arising when lower-ranking ones are met, Maslow's hierarchy of needs classifies human requirements. In the context of ASOS, this idea provides an understanding of human drive and conduct.

• Physiological Needs- The most fundamental desires are food, drink, home, and rest. Before going on to wants of a greater kind, individuals try to satiate their desires.
• Safety Needs- Following the satisfaction of their physiological demands, people look for security and protection, which could entail a job, good health, and private safety.
• Belongingness- People look for social ties, affection, and a feeling of belonging after security. Connections, close bonds, and family are all included in this (Braddock, 2019).
• Esteem Needs- Acquiring respect, admiration, and self-worth from oneself as well as from others is necessary to satisfy a person's esteem demands. Achievements, prestige, and acknowledgement can help with this.
• Self-Actualization- Self-realization, which occupies the highest position in the hierarchy, stands for the achievement of all one's abilities, self-fulfilment, and individual development.

This theory holds that when entry-level wants are satisfied, people get inspired to go after more advanced needs, providing an understanding of why people desire personal development and self-actualization.

AC 2.2 Assess how people practices in your organization impact both organizational culture and behaviour

The company's People practices are crucial in determining the culture and actions of the company. The following are some significant ways that these actions affect ASOS:

• Inclusive culture- By assisting those who are under-represented, the company's Employee Resource Groups (ERGs) encourages inclusiveness and diversity (Bratton, et.al, 2021). By drawing together many opinions and thoughts, promotes a welcoming environment, values staff, and encourages cooperation and creativity.
• Employee empowerment- Through programs such as “Ownership Weeks” the brand gives its staff members more freedom and responsibility. This encourages risk-taking and involvement in the expansion of the business, fostering an environment of initiative and creativity.
• Learning and development- ASOS places a high priority on staff growth by offering extensive mentoring, training, and professional advancement opportunities. This dedication fosters an ethic of lifelong growth and education. Workers are encouraged to further their education, which leads to improved efficiency and flexibility, which eventually advantages both the person and the firm.
• Work-life interface- By providing working hours that are flexible and happiness initiatives, ASOS places a high priority on balancing work and life (Kassem, et.al, 2019). This strategy develops an environment in which workers concentrate attention on their physical wellness and overall happiness, contributing to lower stress and exhaustion levels. Accordingly, an equal staff is more involved and effective, which benefits both the firm and its people.
• Recognition and rewards- Through its honorary initiatives, ASOS acknowledges and rewards exceptional achievement. This procedure encourages staff members to do their jobs to the highest level by reinforcing desired actions. It pushes people to continually go beyond what is expected, enhancing the business's achievement and creating a climate in the workplace where strong effort and devotion are valued.

AC 2.3 Explain two different models or theories for managing change

Two distinct change management models or ideas are described below:

ADKAR Model

This emphasizes personal transformation and how individuals navigate it. It represents:

• Awareness- The necessity of the adjustment should be explained to the staff. Workers must comprehend the way a novel inventory control system can increase productivity and client happiness, for instance, if ASOS is introducing it.
• Desire- Workers must be motivated or have the willingness to embrace the transformation. By highlighting how the modification is consistent with both its and the company's objectives, ASOS may support this.
• Knowledge- It is essential to provide staff with the information and abilities needed for the transformation (Using the ADKAR change management model, 2023). To make sure that staff is competent in utilizing the updated system, ASOS may provide training sessions.
• Ability- Workers must be able to successfully execute the modification. To guarantee that staff can fulfill their responsibilities with the latest system, ASOS may offer tools, materials, and continuing assistance.
• Reinforcement- For the shift to truly become an aspect of the corporate culture, it needs to be supported. Workers, who effectively acclimate to the novel system, may be recognized and rewarded by ASOS, encouraging the desirable habits.

Kotter's 8-step Model of Change

The entire procedure of transformation inside a company is the main emphasis of Kotter's paradigm. It involves the subsequent actions:

• Create Urgency- When announcing a novel sustainability project, ASOS might employ this step. Workers are inspired to encourage the shift by emphasizing how urgent it is to solve ecological issues.
• Form a Powerful Coalition- When entering novel foreign markets, ASOS might put together a team of capable leaders to direct its growth plan.
• Create a Vision for Change- This move might be made by ASOS upon rebranding. The business would make particular moves to realize its concept of the ideal brand image.
• Communicate the Vision- Workers may be involved in the transformation process with ASOS (The 8 Steps for Leading Change, 2023). For instance, they could push staff members to take an interest in the creation and implementation of an all-new client service policy.
• Remove Obstacles- ASOS can spot and get rid of roadblocks like unneeded steps or interaction barriers while optimizing internal operations to increase productivity.
• Create Short-Term Wins- ASOS may celebrate accomplishments along the way, like hitting a particular sales goal after implementing a novel strategy for advertising.
• Maintain Acceleration- ASOS must make certain that its drive for creativity is maintained over a long period while developing an environment for it.
• Institute Change- The improvements would then be incorporated into ASOS's customs; rules, and procedures.

AC 2.4 Discuss one model that explains how change is experienced

Derived from the phases of mourning, the Kübler Ross Change Curve is a paradigm for comprehending mental and emotional responses throughout periods of transition and transformation.

The 5 phases of the Kübler Ross Change Curve are as follows:

• Denial- In the beginning, people frequently refuse to accept the modification. They can think that nothing will alter or wish for the transformation to be short-lived. There can be astonishment and incredulity at this stage.
• Anger- People may become angry and frustrated when the fact of the shift settles in. They could lash out at the agents of transformation or the company as a whole. Opposition and violent emotions define this period.
• Bargaining- During the negotiating phase, people make an effort to come to terms with the circumstances (The Kübler Ross Change Curve in the Workplace, 2023). They could look for accommodations or approaches to lessen the effects of the transition. Making agreements or commitments during this phase might help to avert the shift.
• Depression- It's possible for people to feel depressed or despairing as the transition approaches. Often, during this stage of the transformation process, people are struggling to accept the truth of the scenario and the setbacks it entails.
• Acceptance- People start embracing the shift and adjust to the novel scenario in the last phase. They could adopt a more upbeat mindset and begin to react to the shifts in a good way.

The phases of this change curve might not progress sequentially or for everybody, with people advancing through each phase at different rates. Knowing it helps companies anticipate and empathize with the psychological reactions that staff members have when things shift. This knowledge enables leaders to customize conversation and assistance, enabling easier integration and enhancing the efficacy of change execution.

AC 2.5 Assessing the importance of wellbeing at work and factors which impact wellbeing

Wellness at work improves staff wellness and happiness, boosts involvement, and lowers absenteeism due to supportive settings and well-being initiatives. Another important benefit of placing a high priority on wellness is increased output. Workers who are in excellent mental as well as physical condition are more likely to be concentrated, make fewer mistakes, be able to innovate and be more imaginative, all of which have a favourable effect on company efficiency (Liao, 2020). Businesses that place a high priority on staff welfare not only draw the best talent but are successful in keeping their valued personnel, lowering expenses associated with recruiting and attrition in the process. The management and workers benefit from a workplace atmosphere that emphasizes wellness by developing trust, good connections, and a feeling of community. This promotes a positive working environment where workers feel appreciated and endorsed, which furthers the achievement and efficiency of the company as a whole.

The happiness of the workplace is impacted by multiple factors. It is vital to regulate burdens and maintain a healthy balance between work and life since a lot of work and job expectations can cause stress. The welfare of employees is greatly influenced by supportive and respectful professional connections (Giebels, 2020). Worker satisfaction and general wellness are also influenced by the physical environment, involving ergonomic concerns, lighting, as well as noise pollution. To treat mental health issues, having a link to services like counseling and stress reduction techniques is crucial. The environment for wellness is established by managers and leaders, and teams that have supportive supervisors perform better as a whole. Staff health is made better through providing wellness initiatives and scheduling flexibility, as well as through praising and rewarding staff members.

3. Connecting the Employee Lifecycle, People Practice Roles, and Organizational Strategy

AC 3.1 According to the CIPD Profession Map, Discuss the links between the employee lifecycle and different people practice roles.

The CIPD profession map emphasizes that people's practices include procedures and methods utilized during a worker's lifetime. The numerous functions that people play and the various phases of this lifespan are related as follows:

• Hiring and Onboarding- To ensure applicants match the business's ethos and job needs, hiring managers are essential to ASOS's talent attraction strategy (Bögel, et.al, 2019). To assist ASOS's international development, for example, they have been instrumental in employing diverse people, placing a strong emphasis on diversity and fashion-forward thought in their choices.
• Learning and development- To improve worker growth and productivity, ASOS's educational and development supervisors create training courses and pinpoint skill shortages. By the firm's dedication to providing clients with trendy items, they, for example, place a high priority on regular education for fashion consumers to keep them informed of today's fashion and company advancements.
• Performance administration- At ASOS, human resources business partners help leaders in implementing appraisal procedures by providing advice and assistance. They collaborate collaboratively with department managers to set performance standards and carry out frequent evaluations, promoting an organizational culture of responsibility and ongoing progress.
• Awards and Recognition- the compensation and perks experts are in charge of ensuring that workers are paid fairly at ASOS (Gladka, 2022). To successfully motivate excellent performance and recognize the work of staff members, the brand provides competitive bundles that include incentives based on achievement and fashionable item rebates.

These individuals do jobs at ASOS that are closely related to the employment lifecycle. These positions play a part in creating a supportive workplace culture and the total achievement of the firm by luring in as well as onboarding top people and helping them improve their abilities, manage performance, and provide fair incentives. The dedication of the firm to match its personnel policies with the worker lifespan contributes to the upkeep of an inspired and involved staff.

AC 3.2 Analyze how people practice connects with other areas of an organization and supports wider people and organizational strategies.

At ASOS, people practices play a crucial role in bridging divisions and advancing more general human resources and organizational initiatives. As well as assisting the business's broad organizational and personnel initiatives, ASOS's personnel procedures are crucial in tying together diverse parts of the business. It is clear from looking at such connections how various components of ASOS' HR structure reinforce and support the company's larger tactical goals. The initial point is that ASOS hires people who are in line with its company goals and ethos due to successful recruiting, which is overseen by HR professionals (Viale, 2020). Because these people are responsible for ASOS's online and fashion-ahead goals, is crucial for advancing the business's expansion and innovative plan. Learning and development, overseen by L&D leaders, gives staff members the knowledge and abilities necessary for ASOS to take on the fashion sector and support its online transition with flawless e-commerce experiences. Performance administration is a joint effort between leaders and HR executives that aims to match workers with tactical goals such as market growth. Programs from benefits and wages professionals help to retain personnel for long-term success.

Specialists in worker relations address issues at work and promote a healthy working culture, encouraging cooperation and innovation key components of ASOS's larger business strategy. Also, in keeping with ASOS's efficiency and worker involvement initiatives, wellness coordinators help maintain a positive and efficient staff by encouraging both physical and emotional wellness among workers (Gladka, 2022). Finally, corporate development experts support ASOS's plan to remain flexible in a rapidly evolving sector by enhancing organizational performance and culture, encouraging creativity, and promoting adaptation. The business makes certain that everyone who works there is actively contributing to accomplishing its goals and objectives by tying those practices into other aspects of ASOS as well as backing more extensive organizational tactics. This improves the business's ability to change, develop, and keep its place as an innovator in the cutthroat online fashion market.

AC 3.3 Discuss processes you have or could use, for consulting and engaging with internal customers of the people function to understand their needs

To connect HR procedures with company goals and satisfy the unique requirements of workers, the people department must talk to and engage with internal clients. At ASOS, an extensive plan incorporating several methods and tactics is essential to ensuring efficient HR delivery of services and consistently improving HR procedures. The fundamental instruments that enable frequent involvement with staff members to gather their thoughts, ideas, and worries are polls and feedback methods. Particularly private polls encourage candid input, and careful examination of the data identifies patterns and suggests areas for development.

Focus groups, which bring together participants from various groups and divisions, provide additional information (Upadhyay, 2020). These discussions foster candid conversations about particular HR-related issues or problems, producing insightful analyses and suggestions for improving HR services. Interviewing important stakeholders personally, including managers of departments or elevated-potential workers, allows for an in-depth examination of particular problems and expectations, which helps to create specialized initiatives. Appointed to certain company divisions or departments, HR collaboration partners build strong working connections with executives and workers, building an ongoing feedback cycle that makes certain HR offerings tailored to the particular requirements of each unit.

HR questions and complaints are facilitated via freely available contact channels. The interaction between HR and the workforce is strengthened by utilizing technological tools and assuring quick, precise replies. Staff knowledge and input are gathered through classes and seminars on HR-related subjects. These discussion boards offer a venue for exchanging knowledge and queries (Baloch, et.al, 2022). The topics of personnel management and training requirements are covered in frequent periodic check-ins with departmental or team captains. Finally, developing Key performance indicators (KPIs) for human resources services and communicating these measurements with internal clients shows the effects of HR efforts and points out areas for development. The achievement of ASOS as a whole is facilitated by this all-encompassing strategy, which assures that HR offerings are not just reactive to present demands but also flexible enough to address emerging issues.

Conclusion

In this research, many facets of ASOS's personnel practices and their importance in advancing the company's strategy and objectives have been examined. The importance of People practices throughout the employment lifecycle was covered in this article. It emphasizes their impact on hiring, training, efficiency, and overall wellness. It made clear how crucial it is to have efficient internal client interaction and consultation procedures to match hiring services with the company's needs. The dedication of ASOS to building an environment that is positive and promoting the development and wellness of its workers. It emphasized the significance of People practices in attaining long-term achievement in the rapidly evolving industry of fashion online sales. People practices at the company represent a pillar of its sustained development and business leadership as it strives to change and adjust to new conditions.

References

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