Delivery in day(s): 5
Diploma in Business
Unit Number and Title
Unit 21 Human Resource Management – Harrods
One can describe HRM as an integral activity within any company that eventually has its focus on hiring, management and directing the employees.This Unit 21 human resource management assignment solution – Harrods primarily emphasizes over various aspects of human resource management practices of small scale organization considering Harrods Limited as a case study. It can be envisioned that all processes and programs that are related with the employees are considered as a key part of HR domain. Other than the HR Executives, the line managers also have the direct responsibility in keeping the employees engaged and ensuring their contributions and productivity in achieving the organizational goals. For having a better understanding about the concept of HRM and its importance in organizational success, this assignment is based on the case study of Harrods.Located in Brompton Road in Knightsbridge, London, Harrods is an upmarket departmental store. The brand’s fame and prestige internationally is established through its core values namely British, Luxury, Service, Innovation and Sensation.
HRM is an expanded version of PM, which further has recouped the position of PM in modern organizations. In the early era, recruitment and employees payments within organizations were executed by the personal management team as human resource management had yet not broadened its roots. With the needs of employee management slowly flourishing, HRM has emerged as a useful alternate of the conventional PM. (Jackson, Schuler and Jiang, 2014)
Differences between HRM and PM
Human Resource Management
HRM emphasizes on making an effective use of available work force as an entity for attaining the organizational goals at Harrods.
HRM pursues a modern approach
HRM plays a key role in routine management
Practicing HRM at Harrods has allowed the management in treating the employees as an invaluable asset.
In HRM, the employees are paid based on performance evaluation(Jackson, Schuler and Jiang, 2014)
The managerial function in HRM at Harrods is transformational
Labour is managed in HRM through contracts amid Harrods and one or more unions
HRM at Harrods has allowed the management in establishing a direct mode of communication
The initiatives undertaken in HRM are integrated
PM is viewed as management aspect and is linked with employees and their relations with small retail organizations. (Jackson, Schuler and Jiang, 2014)
PM pursues a traditional approach
PM plays a key role in strategic management
In small retail organizations practicing PM, the employees are treated as machines and tools.
In PM, the employees are paid based on job evaluation
The managerial function of PM in small retail organization is transactional
Labour is managed through individually signed contract amid employees and the employer
The mode of communication in PM practiced by small retail organizations is indirect(Jackson, Schuler and Jiang, 2014)
The initiatives undertaken in PM are piecemeal
In Harrods, the key objective behind adopting the functions of HRM is to align the employees’ personal goals with those organizational goals of brand Harrods. The HR department is responsible of preparing an adequate plan in order to align the employees’ career towards achieving the goals of the organization. Harrods aims in keeping its employees highly motivated for successfully attaining its organizational goals, as it firmly believes that motivated employees give better contributions in driving the store towards its desired growth. (Mello, 2014). In addition, Harrods HR department is also liable for appropriate human resource planning for offering the employees with better and equal opportunities at work thereby, allowing them in achieving promotions and grow professionally. The HR functions within Harrods are further helpful in assessing the employees’ needs and concurrently explore their training needs. Impart of various training programs has enabled the employees at Harrods in developing their skills according to the rapidly changing business needs and hence, managing their futuristic goals. Employees are been prepared for playing the future roles through gaining the expertise needed and knowledge that they gain from training events
It has been stated earlier that the roles and responsibilities of the line managers at Harrods is quite significant in achieving its desirable business goals. The line managers eventually administer the key functions of the HRM model practiced in Harrods and hence, it is essential for them to possess the qualities of sincerity, contentious, conversant and virtuous in nature. Harrods is constantly enjoying global prominence and advantageous market position because of its robust and specific management system. The specific roles and responsibilities of line managers is a notable factor behind Harrods achievements. Line managers are responsible of providing an adequate supervision to its subordinates and are accountable to offer them help whenever needed and solve their problems in everyday operations of the business. Harrods strong workplace culture has cultivated a health and social care amid the line managers and the employees further allowing them in being loyal towards the brand. (Sikora and Ferris, 2014)
The line managers at Harrods play a significant part in the implementation of company policies and practices thereby, helping the HRM team in brining efficiency in everyday operations. Moreover, the line managers are constantly given support by the HR department in execution of activities such as recruitment and selection, employee training, handling employee grievances and maintaining workplace discipline, performance appraisals, etc. At Harrods, the line managers are expected in planning business strategies that are regulated with the goals of the store thereby, encouraging the employees in giving their best performances. Employees sharing a healthyrelation with the line managers are more productive, devoted having higher job satisfaction level. (Sikora and Ferris, 2014)
From the early, start of the 21st century, companies and its business exercises are administered by a regulatory framework that is both specific and effective at the same time. Moreover, one can see the influence of the regulatory framework on Harrods overall business activities particularly in its HRM functions specifically in its international business performances. (Inc, 2016)The HRM guest model practiced in Harrods is sensitive and works deliberately for abolishing discrimination at workplace further in respect to the ethical and legal aspect of legal framework. Furthermore, Harrods HR department is highly motivated by the legal framework in terms of employee dispute, employee relations and their rights, remuneration, work atmosphere, etc. apart from providing equal employee opportunity. One can say that the regulatory frameworks has left a positive impact on Harrods as the management always works towards achieving the best through its commitment in fulfilling the rules and regulations by pursuing governmental law and ethics. It has been observed that the employment related legislation and legal frameworks has helped Harrods in establishing a peaceful relation amid the management and the employees. (Inc, 2016)
Harrods believes that half of its job is done through adequate HRP. It involves determining the exact need of human resources Harrods needs. Planning is significant for Harrods long-term success and in the absence of the same, any business activity cannot be performed in a perfect way. At Harrods, HRM functions are a key factor thereby, emphasizing on the planning of human resources. The prime reasons behind the human resource planning at Harrods involve its aim of establishing a link amid the organizational strategies to human resource planning. HRP has allowed Harrods just not to assess its existing need of human resources but simultaneously determine the labour demand, predict the future labour supply, finding the type of employees it need and eventually match the demand and supply of labour. With the help of human resource planning, Harrods can effectively and efficiently manage its human resources. Harrods needs an extensive human resource planning which includes hiring of skilled employees, supervising employee policies, payroll management and employee training programmes for its long-term growth in future. (Bennett and Ho, 2014)
Reasons for human resource planning at Harrods
Harrods has set certain standard stages for planning the human resource requirements. In order to gain competitive advantage in the area of its existing human resources Harrods ensures that its human resource strategies are adequate. Practicing HRP within Harrods has affirmed that the strength of its entire existing workforce is used at the fullest and the HR department achieves this by allocating a right role and job to a right employees.
Different stages of HRP
Recruitment and Selection process at Harrods
The hiring process at Harrods is designed in a way for being as thorough and comprehensive as possible and is aimed to provide the applicants with a great journey. The stages involved in the process help the HR team in better understanding the applicant and simultaneously providing them with a clear view of working life at Harrods. The HR specialist review all the CVs with an aim of fairly treating all applicants thereby, making the overall process transparent and efficient. The applicants are always informed and guided through every step of the hiring process. Applicants are encouraged to remain in touch with the Resourcing team by emailing at firstname.lastname@example.org or by tweeting on @ HarrodsCarrers with the #TheProcess. For applying online, the communication is done through a Harrods email account. The advertisements on the partner websites are genuine taking the applicant directly to the Harrods Careers website for completing the application through a Talent Management System that is powered by HRSmart and Monster. (Harrods, 2016)
The first stage involves the initial application and CV screening where the applicants are given ample time for completing the application process and submitting the form which is confirmed through a mail. For a sales profile, the candidates are asked for completing a Talent Screener questionnaire. Applicants with low scores are straightforwardly rejected and the ones who are successful are then invited for attending a telephonic or video interview. Applicants successful in this round are then required attending an assessment centre for a group interview. A one-to-one interview with recruiters is then fixed for the successful candidates and then with the line manager. For a technical role, the applicants are asked for completing a relevant task. Finally, the successful applicants are notified through mail. (Harrods, 2016)
John Lewis Recruitment and Selection process
The process of hiring and selection at John Lewis comprises of six stages in the first stage of online application process namely values based questionnaire, numerical test, verbal test, management judgement indicator test, scheme specific multiple-choice questions and application form. The application of the candidates qualifying these stages are further assessed and if found promising, are invited for 15 minutes video interview. If suitable then they are scheduled for an assessment centre, which includes an interview. The candidate successful in the assessment centre are called final round with the management and if suitable, the offer letter is provided. (JLP, 2016)
Harrods recruitment and selection technique is much more effective in comparison to John Lewis recruitment and selection process as equal opportunity is provided to all the candidates who apply for a position at Harrods. Keeping an aim of providing equal opportunity, the Harrods notifies the upcoming vacancies on its official website, partner websites and job portals thereby, increasing the easy access to more number of eligible candidates to apply for the vacancy. Harrods selection process is also comparatively effective than John Lewis as for choosing the best candidate, the HR department undertakes various stages such as telephonic interview, psychometric assessment, aptitude test and direct interview. It has been observed that Harrods can make its recruitment and selection process more effective and complete by introducing new HR planning policies and adopting the technique of job description and job specification at the stage of online application. (Townley, 2014)
Use of motivation theory has helped Harrods in successfully directing the employees towards the business objectives of the global store and eventually defining their workplace behaviours. Furthermore, motivational theories have acted as a framework for implementing an effective reward system at Harrods. Theories of motivation like Herzberg have assisted the management in planning the rewarding structure and design adequate strategies for motivating the employees towards the organizational culture and performance. Apart from Herzberg, Harrods also evaluates the employees’ requirements based on the motivational theory of Maslow in order to deliver more employee satisfaction at work further enabling them in giving improved performances and desirable outcome. McClelland’s Need Theory is practiced in the reward systems at Harrods for ensuring that the employees are motivated through power and achievements in the workplace. (Cerasoli, Nicklin and Ford, 2014)
Harrods reward system comprises of the practices and objectives that are further defined by motivational theories for achieving more effective and satisfactory employee behaviour at work. The reward system at Harrods emphasizes on rewarding the employees for the contributions in generating profits rather than just for adherence and trust. Harrods reward system is based on Taylor’s theory which eventually focuses on motivation that is based in the form of money. Harrods offers its employees with rewards for compensating with the needs and expectations of the employees. Moreover, Harrods also makes an efficient use of reward-personal goals relationship defined by Vroom for rewarding the employees when they meet their personal goals through fulfilling the organizational objectives. Harrods practices motivation theories that focus more on productivity rather than loyalty. Rewards at Harrods are backed by bonus and incentives as motivations, which parallel gives stress on productivity and inventive returns from employees. (Cerasoli, Nicklin and Ford, 2014)
The process of job evaluation is necessary for finding the employees contributions and simultaneously offering them with a transparent and right distribution of rewards for their outstanding achievements and efforts in driving Harrods in attaining its organizational goals. At Harrods, performance, quality and employee behaviour at work is considered for measuring the employees’ job performance. This approach adopted by the management has been helpful in driving the employees towards better job performance and establishing an improved work culture within Harrods. An employee’s performance is evaluated with the set organizational standards further defined as goals and targets. Employees’ job evaluation is based on their performance and work quality and not on their behaviour and management thereby, allowing the employees to be assumed as working units and not as assets. (Mawoli and Babandako, 2011)
At Harrods, employees pay is determined by providing them with a basic salary and setting hierarchical goals where incentives and others perks are offered in meeting the set targets. The pay scale of the employees at all levels is further dependent on the skills sets, experience and performance. Harrods adopts various options in determining the pay scale according to the ongoing business conditions. Harrods emphasizes more on performance and quality to maintain a difference in employees’ pay scale for further directing them towards the productive culture. (Mawoli and Babandako, 2011)
It has been observed that Harrods reward system is inclined towards the evolution of an organizational culture that is based on loyalty and the trustworthiness along with the business objectives and profits of the brand. Harrods strategy of treating the employees as an invaluable asset is the core value of the rewarding system further making it much more effective. (Cummings and Worley, 2014)
The reward system practiced at Harrods pursue the motivational theory practices and principles while implementing the rewarding strategies for compensating the employees skill needs thereby, allowing them to envision their personal and professional growth with the brand. Rewards that are provided in the form of promotions in the hierarchy according to their responsibilities and performances has helped Harrods in keeping the employees morale high and simultaneously meeting the brand’s standards. Harrods offers its employees with both intrinsic and extrinsic rewards. Distribution of intrinsic rewards has helped Harrods in attracting new and retaining the old employees whereas extrinsic rewards have helped in adding value to the employees’ performance and proficiency. The reward system at Harrods is not only effective but also provides money values to the employees. Moreover, employees’ performance and work quality is exalted through bonus and incentives and at times especially during festivities, through gifts. Harrods reward systems is effective because of its multiple branches in different locations. When the employees are provided with bonus or incentives, they can use it according to their need thereby enhancing their creativity at work, motivation and positive nature. (Cummings and Worley, 2014)
Harrods firmly believes that it is important to monitor the employees’ performance at work for determining whether or not the employees are been productive and fruitful and are worth the pay that the company provides them. By monitoring the employees’ performance, the floor managers can also easily guide them towards right directions thereby, enhancing their productivity at work and improvement in the customer services. Performance monitoring also provides the employees with various opportunities of improving their existing skills according to the changing business needs and market competition for meeting their own personal objective further mapped with rewards. (Spence, 2013). Employee performance at Harrods is monitored with the use of two tools:
Benchmarks: Harrods defines certain standards for the employees to meet them and be rewarded and earn other job beneficiaries at work such as lunch discount coupons or freebies etc. The management with the help of the HR Manager decides the optimum work amount and its quality that eventually defines the employees’ current performance and skill set. Employee performance at Harrods is measured with benchmark for setting the pay points for him/her. (Spence, 2013)
360-degree feedback: although it is interminable, the process accurately measures an employee’s contributions in the growing the business and includes various elements such as behaviour, performance, perceptions, responsiveness and culture participations and are rated by his/her colleagues and co-workers and sometimes by customers. This method has also helped Harrods in managing the organizational culture along with the better outcome of the organizational objectives. Harrods makes use of this tool for measuring the employees’ performance annually. (Spence, 2013)
The key reasons behind the cessation of employment are closure of the business, reducing the labour cost, practicing unethical activities at work, employee dispute etc. It has been observed that the cessation rate of employment at Harrods is very low. However, the reasons behind the cessation of employment in Harrods is mainly when employees are found involved in any kind of theft or remain absent continuously without prior information to the Floor Manager and in case the employee is not competent enough as expected. Other than these, Harrods also practices cessation of employment if an employee is consistently giving poor performance while dealing with customers or maintaining customer relationship despite of repetitive warnings and opportunities to improve. (Butler, Simpson, Brennan and Turner, 2010)
Employment exit procedure is the next immediate act of cessation of employment, which differs from one organization to another and country-to-country. However, Harrods ensures that the employees’ rights are not affected in this procedure and that the entire proceedings are specifically and fairly executed. Working under the compliance of the labour rights of the countries it operates Harrods is bound in practicing fair means of employment exit procedure. The exit procedure of Harrods is an example for others. At first, the employee in question is formally informed about the cessation of his/her employment. He/she is then provided a chance to place justified argument against the decision made in front of the HR Manager. If the employee fails in giving reasonable arguments, the HR Manager informs him/her finally and is made aware of the last day. Once the employment exit interview is done, the HR Manager notifies the accounts department to clear all the dues of the employee ahead of the final day. A cessation card is then officially sent at the employee’s residential address for the family to get prepared and emotionally support the employee. (Balcaen, Manigart and Ooghe, 2011). In comparison to Harrods employment exit procedure, the procedure practiced at Walmart varies only to a small extent in terms of providing information to the employee well in advance.
Compiling with regulatory framework during employment cessation is essential for Harrods to meet the standard it has set for itself in the market. It has been observed that Harrods employment cessation arrangement matches the requirements of legal frameworks and does not violates the terms and conditions it derives. In case, the employee feels that Harrods has adopted wrongful measures in terminating the employment then he/she can drag the global brand to the tribunal. It is essential that both the parties have enough evidence to justify their actions and claims. If Harrods is convicted, it not only will have to compensate the employee’s losses but it might negatively affect its image in the global market. However, if the employee’s claims are found to be wrong, he/she might loss the employment permanently and can face a lawsuit filed by Harrods for tarnishing its image. (Freedland and Kountouris, 2011)
At the end, we can conclude that HRM has a significant role to play behind the success of Harrods in the global platform and hence, is an issue that is practiced continuously further influencing the store’s overall performance. For gaining in the full benefits of HRM, it is needed that Harrods follows all its functions. With the help of this report various aspects of HRM and PM has been evaluated. How motivational theories have helped Harrods in enhancing its employees’ performances has also been discussed. HRP has empowered Harrods in hiring the employees with right skills and competencies needed for attaining the organisational goals
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