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Diploma in Business
Unit Number and Title
Unit 18 Human Resources Management
According to Storey (1995), HRM is a focused approach to manage employee, employer and company related issues. IT also can be a source of gaining competitive advantage through the strategic combination the various human resource policies which would bring in highly competitive and capable employees to work for the company.
Human resources management consists of multiple functions: makes sure that leaders use an ideal form of leadership style, for creating a healthy work environment, for recruiting and selection, for remuneration, for training and development, for employee involvement in the organizational success etc.
This assignment is based on Harrods Case study. The company Harrods is around 160 years old with approximate total employee strength of 4000. Harrods store is located in Knightsbridge, London (Laurent, 1986). The company is committed to optimal employee engagement and development which is a main factor of attaining success by any company.
Definition given by J. Shields (2006) "reward may be anything tangible or intangible that an organization provide to its employee either intentionally or unintentionally in exchange of employee’s potential or actual work contribution, and to which employees as individuals attach a positive value as a satisfier of certain self-defined needs".
According to Herzberg motivation theory, people come from various cultures and have different values and rules. His motivating factors involve learning, rewards, development and growth. Ultimately, the organization must determine its requirements and evaluate its employees’ abilities to meet objectives (Pinnington et al., 2000).
According to Harrods Case study, it is very important to find the right candidate for permanent vacancy. Employees have to be capable to deal with challenges at Harrods. Harrods have adopted efficient strategy to keep employees motivated to their job.
First of all, Harrods offer training courses that help to improve communication skills and understand the job competencies. Besides, skilled employees help the Harrods to be cost efficient and to reduce turnovers.
Strategy to enrich work business environment and to sustain employees’ motivation consist of facilities, high income, bonuses, flexible working hours and commissions. The employees who perform at their best are rewarded at different levels. Also they praise at various stages. For example, the employees at Harrods were given the tome off their families thus helping them to equilibrate their work life.
All these motivation and reward methods help to increase employee loyalty and performance.
According to T. Deb (2006), "job evaluation is a dynamic tool for driving forward changes in organization reward structures". The main activities involved in the process of job evaluation and factors in determining salary at Harrods are:
Other factors which are used at Harrods are as follows:
Armstrong (2010), reword system is related to pay for performance, contribution, competency and skill; or pay related to service.
The rewards methods and various perks systems are practically designed to satisfy the needs of four major components: recognition, compensation, appreciation, and benefits.
The effectiveness of rewards methods and various perks systems at Harrods has been discussed below:
First of all, in order to have the best employees working at Harrods, the company has Academic Courses which support and help employees in achieving their future aims. The managers at Harrods ensure that they have cordial relationship with their subordinates as the understanding between the boss and the team member helps in maintaining a healthy work relationship.
Moreover, the recognition of those who have succeeded in delivering world-class service. For example, Harrods has Awards for Excellence for nominated individuals and teams. Besides, the biannual Long Service Award for the employees who have served a duty to Harrods from 5 years to over 50. It helps to get loyalty from employees because they feel respect on themselves. [www.harrodscareers.com]
It is not only awards ceremonies that Harrods uses to admit its employees. They can get bonus awards. Besides, the employees at Harrods were given the time off to spend with their families thereby helping them to balance their work life.
So, the rewards system at Harrods was such that incentives were passed on to employees for performance and employees were encouraged and motivated towards performing well by incentivizing their execution. This whole compensation scheme is effective since it recognizes the best performers which help the company to get the loyalty of its employees. Being fair and just while rewarding employees is very important so that the employees have faith in the compensation scheme and understand the fact that only the high performance is valued over everything else.
According to Caldwell (2000) Performance management is nothing but a motivated relationship between the management and the employees so that both parties can work towards the same goals, mission and vision of the company.
Harrods’ aims and objectives can be achieved if people put in their best efforts. Performance appraisal is a significant tool in monitoring employees.
For example, the methods adopted by Harrods can be examined by asking the following three questions about the methods. They are:
However at Harrods, one can easily find out that the company is always proactive in to engage the employees in decision making process or in job enrichment etc. this is a testimonial of Harrods being very particular about giving a meaning to the appraisals which they make.
Different methods that can be used for managing the performance of employees at Harrods which are discussed in detail below:
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The various causes for cessation of employment are mentioned below. Cessation can be due to the employer or the employee.
According to Torrington et al (2008), the main reason for termination of employment can be:
Lack of capability or qualifications / opportunities for promotion: Harrods support and help employees in achieving their future career. In my opinion, due to this reason employees will not leave an organization.
Desire for a change in career: Sometimes employees might not be able to realize their full potential in current workplace. Because of this reason, employees can leave Harrods too.
Poor performance: this reason can be if the performance of the employee at Harrods falls below organization’s expectation, so he or she can be terminated. The reason of this can be any medical problems or lacking the skills for the job. On the side to this if employees are misbehaving and not carry out the job effectively, truancy and negligence in the work etc., the management can take this stringent action and terminate the employees (Guest, 2003).
Redundancy: The job could cease to exist as a result of job no more work to be done as the job is complete (redundancy seasonal workers etc.). Strategic changes at Harrods when a specific position has been declared redundant.
Misconduct: if the information given at the time of an interview were wrong, the Harrods management can cancel an employment contract.
There more causes to terminate employment: mandatory retirement, personals reasons, resignation, substantial reason, statutory bar etc.
After the cessation of the employment, the next step which follows is the employee exit formalities. These procedures differ from country to country and from organization to organization. It is mentioned that once the employee has asked for cessation of employment, the company cannot harass the employee. The company has to be considerate and should ensure that fair means and methods are being used.
At Harrods, it is believed that the employee who is going out has served the company for a time period and hence his exit should be smooth. The companies exit policies are exemplary. They first inform the employee formally about the cessation. The next step is to give time to the employee to think about the matter and put his arguments and views in front of the company regarding cessation. Then after the discussion, the company fulfils all the requirements which are due. If one compares this process with that of Wal-Mart, it is different in the sense that the sequence of steps are different. Moreover, Wal-Mart does not inform the employee about the cessation and it comes as a surprise for the employee. Also, the company thinks that their verdict is final and hence never discusses the same with the employee. The drawback of not following this process is that the employee and the employer do not part at a good note and hence they might never be willing to work together again in any other organization as well.
The legal and regulatory framework can affect employment cessation arrangements. So, it is very important that employees have a written contract with the employer.
According to CPD (2013), a contract of employment is a legal and a formal binding agreement between an employer and employee. The terms and conditions are defined by the Employment Right Act 1996.
Aside from this there is other legal legislation which rules the cessation of employees. These procedures are practically for the benefit of employer and employee (Huselid, 1995).
Following are the number of benefits offered by Harrods:
In this assignment has discussed all the aspects of the human resource roles and has addressed all the issue cohered to it. Human resource management plays a vital role in any organization. One can easily understand different facets of human resource management through the Harrods case study. The case study talked about impact of rewards, recognition, legal framework, quality of supervisors, relationship of employer and employee at work etc. Also the main issues related to cessation.
The Harrods Case study showed that human resources management is important to Harrods success.
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