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Human resource management is a process which includes hiring employees and developing employees in a broad aspect.
An organizations success depends on effective management of human resource. The term is distinguished from personnel management.
In Unit 3 Organisation and Behaviour Assignment we are discussing about human resource aspects of Harrods by presenting the employee development issues. As Harrods believes that employees are the public face of company and company goal achievement depends on their satisfaction. So it is committed to implement the demands and claims of employees for its sake.
This assignment is mainly focused on the HRM models adopted by Harrods, flexibility practices in Harrods, employer and employee benefits during flexibility practices, application of managing diversity and equal opportunities on Harrods, performance measurement methods and forms of discriminations adopted by Harrods and other issues of HRM on the basis of Harrods review and case study.
Guest Model of HRM is completely commitment based which focusing individual needs of the employees and emphasizing on taking the positive application of human resource management. Harrods as a traditional company has the most experienced system of managing human resource and utilizing them the best way they can.
The Human resource management practice followed by Harrods is already consistent with the Guest model of HRM from some perspective. Let’s take a look at the combination of Guest model and Harrods:
Guest related strategic management to the human resource management where Harrods also intends to apply strategy to develop the skill and performance of the company at any cost through human resource management (Guest, 1987). For this, Harrods use many engagement methods in many ways like internal employee magazine publishing, morning briefing, intranet, quarterly employee forum etc.
Guest focuses on individual needs rather than collective workforce. In the case, Harrods use the term more effectively by introducing the term “engaging employees to workplace”. Engaged employees are committed and they are promised to reach the goal set by the organization. Besides, 91% of employees of Harrods are satisfied because of their successful engagement in the workplace.
Status and security
High quality & productivity
Low absence, turnover, & conflict.
Return on investment.
Source: Guest (1997);
Harrods continuously analyze the above six dimensions of the Guest’s model. Through the analyzing of HRM strategy Harrods focus on quality of the brand created over time. HRM practices motivate employees towards the organizational goals adopting training, rewards etc. at Harrods. Basically in Harrods human resource management approaches should be linked with high performance and commitment (Becker, 1997).
Organizational flexibility is defined as the adapting size organization changes, composition, responsiveness and all the peoples. The inputs and costs are required to attain the goals and objectives of company. Organizational flexibility should also be defined when a work is completed and the time and place of the completion (Cummings and Worley, 2014). Organizational flexibility is very essential for Harrods to create flexibility at the work place. It is also essential to managing the staff at work place.
Strategic HRM is used to define company’s plans and intentions on how their business objectives are to be achieved through peoples. It is based on three plans first is that human capital is considered as the source of competitive advantage; second that is the peoples who apply the strategic plan and the third is that a systematic plan should be accepted to define where the company needs to develop. Strategic integration is define as a process which includes the utilization of overextending plans to the improvement of HR strategies and which are vertically integrated with the business strategy of Harrods and horizontally with one another (Rothaermel, 2012). It focuses on activities which are distinguishing the company from its competitors.
Commitment is one of the real 4-Cs characterized in the important Harvard model of HRM. It is considered as an instant and the most crucial outcome of human resource strategy as commitment of employees is seen as the major factor in attaining performance of competitive (Johnson and Yang, 2010). It involves an improvement of persons and their skills.
Storey mainly demonstrates the main diversion of two terms like HRM and personnel and industrial relations.
Storey’s HRM practices reflecting Harrods:
John Storey has established a theoretical model based on his perception of how organizations have evolved from predominant personnel and IR practices to HRM practices (Becker, 1997). Four aspects of the Storey’s definition of HRM includes constellation of beliefs & assumption, inclusion of line managers, providing decision about people management, based on a set of levels to make a employment relationship.
Personnel management refers to the maintenance of fair terms and conditions of employment as well as managing the activities of the personnel effectively and efficiently. In personnel management personnel are regarded as the input to get the desired output. For making the employee satisfaction the personnel functions are done. It is a function which is performed on the routine& regular basis.
Industrial Relation (IR) practice refers to the relationship between actual work force and the management of the organization. Key components of the industrial relation are employee, employer, trade union and the government. The main objective of the industrial relation is to create a good & effective relationship between the employer and employees of an organization. Industrial relation is most commonly seen in the companies which have a manufacturing unit or a factory. The proper utilization of the human resource polices results in industrial relation.
Pacific software publishing
Harrods is reflecting on the HRM concept of Storey rather than personnel and IR
Pacific Software Publishing uses personnel management.
It follows the process of recruitment and selection, performance and development.
The company manages human resource management through the system of personnel management rather than HRM concept.
Here performance reflects the assessment of the employee works and Harrods provide enough training opportunities for employee improvement.
Pacific Software considers personnel management as an administrative operation.
Development reflects the employees’ career progression opportunities (Storey, 1992).
. It includes some steps like analyzing jobs, analyzing personnel needs, determining the job position and salaries, dispute settlement and employee development.
Line managers of an organization are responsible for the implementation of HRM through executing the HR policies. In many organizations the employer deploys a HR department for providing expert advice and support during undertaking various human resource policies. Line managers execute the day to day activities for implementing human resource policies. Line managers are responsible for the program impact of human resource decision.
During developing the human resource management line managers of Harrods play important role in the following aspects:
Line managers are specialized in performing the daily management of the personnel.
They have the capability to use their technical expertise where required.
They operate the HR functions effectively and efficiently.
They make sure of the proper utilization of the personnel.
They are responsible for monitoring and evaluating the work processes that result in higher quality.
Line managers directly deal with customers.
Line managers in Harrods measure the performance of the employees because they are directly related to the brand value of the company.
Main functions of line managers in Harrods are managing change, leading, performance management, developing internal personnel skill, managing time and customer needs.
Employees are key part of the HRM. High performing and innovative employees are considered as the basis for the higher productivity. The chief management of the Harrods declares the employees as the public face of the company (Ehrenberg, R G and Smith, R S, 1994). This company always tries to engage the employees through the different methods such as internal employee magazine, morning briefing, and intranet, quarterly employee forum. They do so to improve the human resource management of the Harrods. Some vital implications are:
Employees can improve their performance metrics through continuous improvement.
Help employees in innovation that expand productivity.
Increase in employee collaboration as a result of proper personnel management.
Employees become motivated to the better performance as a result of the effective reward systems such as promotion, security of the job, make decision etc.
Reduce in errors and depression among the employees because of the proper communication and feedback system with the chief management.
Employees are highly committed to the organization because of the proper set of the directions and business strategy by the leaders.
Harrods is the world’s one of the top organization maintaining successful human resource management. From top to bottom employees including top, middle and line managers are integral part of HRM at Harrods who are motivated by elders or motivating the younger’s.
During planning, retention and resourcing, a line manager plays vital role. A line manager must have information regarding many issues like how many staffs are working now, how many staffs need to be recruited, how what will be the process etc (Hueselid & Becker, 2011).
In need of recruitment and selection, the line managers must have information about the sources from which they are going to be recruited. Ensuring the right person for the right position is a challenging task for the line managers. Primary screening also done by the line managers so selecting primary candidates is a crucial issue for them.
Line managers are also responsible for which employee is improving and which is not getting proper training. Whether they are provided with training or not and which sector need to be improved must be analyzed by line managers. Are employees satisfied with the remuneration or the reward they get also evaluated by employees.(Budd & Bhave, 2010).
Line managers Harrods are responsible for above tasks because Harrods takes special care for these managers. Harrods tries its best to make the line managers skilled because they are the main basement of accomplishing goals or objectives set by top managers. So all kind of advantages and benefits are provided to get the best output and that’s why line managers plays vital role for achieving objectives of Harrods.
Flexibility in business refers to a firm’s ability to change its internal business operations that are required to respond effectively to the changes in the external environment as soon as possible.
The reason behind the flexibility is that the business operations are changing day by day as the customer demands and needs are not limited. Human resource management is one of the functions of the business through which quality products are produced and delivered to the end customers. Nowadays human resource management is playing an important role in the drive of competitiveness and firm performances (Ehrenberg, R G and Smith, R S, 1994). Various types of flexibility models are used in human resource management. Most commons are numerical flexibility, functional flexibility, wage flexibility and HR flexibility etc.
From the Harrods perspective, we can define flexibility on leadership issue of Harrods. Harrods use the leadership style in a flexible way whenever it needs depending on situation. They use both autocratic and democratic leadership style but depending on circumstances. This is a flexible situation for the employees who managers who are working in Harrods. Autocratic style is used when there exists crisis situation but in case of available timing, Harrods evaluates the comments of all employees to make its best (Kuvass & Dysvik, 2009).
Trust and respect is the main base on which employees are engaging them to that organization. Besides employees take advice and try to follow each other. Such kind of flexibility allows them to move on freely.
This situation of Harrods allows its managers to take right decisions at any situation of the country. As Harrods is giving the floor for all employees to take decisions on any crucial issues, employees can also assess the future condition and according to that they deliver comment. So this is a great platform to practice the flexibility for the employees of Harrods.
Sources: Made by Student
Handy’s Shamrock model of flexibility
Charles Handy describes the flexible model of the organization which describes the quickly changes in the external environment of the business. Handy’s Shamrock organization thinks that the peoples are the most essential resource in every organization. Handy suggested that business must place a greater importance on meeting the requirements of the employees (Zhang.et.al, 2014). Handy suggested that firms are does not involves just a core and periphery, as periphery should be subdivided and he calls this a shamrock organization.
Shamrock’s first leaf represents the multi-skilled core of managers and professional technicians which are significant for the stability of the business.
The second leaf of shamrock organization is called as the contractual fringe by Handy as non central actions are contracted out to companies which are specialising in actions of business like computing, marketing, research and communications.
The third leaf includes a flexible workforce which is made up of temporary, part-time and seasonal employees.
Numerical flexibility refers to a firm’s ability to change the number of employees. This may include the use of part-time, temporary and seasonal employees through short or fixed term agreement.
Functional flexibility focuses on the ability of a company to change the number and type of employees in order to accomplish a wide variety of tasks through which employees are moved from one task to another tasks.
Wage flexibility refers to a firm’s ability to changes in the wage policies in order to making more profit for the organization (Fowler, A 1990). Flexibility may be short and long in nature. Short run flexibility best meet with demand fluctuation. No flexibility only can make better performance in the organization.
Although different flexibility models are used by the Harrods, they need to make a mixture of them in order to get the better performance from the flexibility. For example, HH model defines high functional and high numerical flexibility whereas LH focuses low functional and high numerical flexibility and vice versa.
Functional flexibility in Harrods
Functional flexibility is consistent with the workload and HRM strategy of Harrods. Functional flexibility actually designed to improve the efficiency and reducing cost of the company. Multi tasking, dual skilling etc. among the occupational groups are also supported by functional flexibility (Lioyd, 2007). So Harrods can apply the flexibility strategy for its ultimate improvement.
Financial flexibility in Harrods
Such kind of flexibility related to financial motivation like pay and reward. Harrods can apply such kind of flexibility for its success and employee satisfaction. Employees are work for pay and if company is flexible in this matter with them, then it will be crucial factor for them.
Sources: Made By Student
Numerical flexibility in Harrods
Numerical flexibility is actually focuses on adjusting labour hours by fluctuating inputs. Such kind of flexibility can be used by Harrods for its employee engagement. As Harrods believes in workforce employment through motivation so such type of flexibility will increase the productivity of employees.
Temporal flexibility in Harrods
Harrods can adopt temporal flexibility for its convenience and can make better result with combination of leadership. If it can be flexible from the temporal aspect, it can make good outcome from employees and reflect in employee-employer relationship for the better working environment.
If Harrods apply the strategy of flexible working practices, then it will get benefitted from employer and employee perspective rather than getting disadvantages. So the organization can make the best use of its resources.
From employee perspective:
Flexible working allows the employees to show their latent talent by using them in different situations in different ways. Employees’ productivity, performance, working environment will be created for better output (Rothwell & Kazanas, 2003). Employees will be happy to work with such environment and decision making process will be easy and fruitful. Costs like travel, production, sales will be decreased. Employees can migrate shift as they require and can give their best for business of Harrods.
Training, developing and improvement opportunities for employees of Harrods
Employees are allowed to use the personal cultural aspects of their own
Using the spare time effectively and allowing freedom to employees
Special attention to family and doing great with special groups
Flexible environment also separates the employee relationship, continuity, and serial performance and lack effective time management.
Flexible workforce may not take any common cause before strong management and can maintain a cold situation
The work of HR and accounts department has been lessened due to flexibility of business of Harrods
Core workforce is highly influenced and motivated for increasing output and the main theme is taken care of.
From the employer perspective:
Employers will be no more tensed about the honesty and performance of employees due to flexible working conditions. Flexible working conditions save the employer time which they can use in other perspective. The employer-employee relationship will be increased and strengthened and it will result company to make better output for Harrods.
Drawback to promotion, downsizing salary, isolating employees, not evaluating employee performance are some disadvantages of flexibility Harrods may face if it apply the strategy (Standing, 1988).
Allows employers to be more focused on tasks by doing specific assignments
Using the working hour in an effective way
Decrease of absences as well as simply leaves
Better sense of balance involving provide as well as require associated with time push with particular extraordinary or perhaps unique qualities
Disadvantages from both employer and employee perspective:
Short term legal papers enhance fees – recruitment as well as teaching fees.
Minimal versatile legal papers: much less appealing as well as employees will be for something better as well as staff members t/over will increase.
Treatment associated with employees differently clashes using harmonization associated with disorders.
Flexibility may liberal the decision making process. It may result poor decision making which will take the company to a wrong way
More flexibility may increase the power of trade union in the organization and owner may turn into a negative role for them
Due to application of flexibility practices, Harrods may face a huge labour market change. Factors that change the labour market are mobility of labour which includes occupational & industrial mobility; the extent of labour migration that motivates the labour to migrate between countries; skills and trainings; ability to hire and fire; information; the amount of part time & temporary work that means if the labour get larger portion of part-time work in spite of having full time work, the market of labour becomes flexible.
Changing labour market has both positive and negative impact significantly on the economy as well as in the flexible working environment. Flexible working refers to the way with which a business changes its working practices to improve the way the business functions through developing productivity and motivation.
Advantages of the changing labour market include the developed occupational mobility of labour directs the less unemployment and increasing response to the external demand or supply quickly. Now Harrods labour market is restricted and no-restricted equally.
But if it apply functional flexibility then the employees who are skilled at production, they will choose production department and who are skilled at selling they will choose sales department though those employees will be recruited irrespective of department. As a result, labour market can be used effectively. So it will result ultimate a good output.
If numerical flexibility is adopted by Harrods, then the most significant change in labour hours where employees can work as they need. It results employee satisfaction but company daily target may not be gained. Again if employees work till their satisfaction in their chosen hours, then company can easily gain the target they mainly look for.
Adopting flexible working practices allows the labour market to cope with any fluctuating economy and increase or decrease in the demand of consumers. This flexibility also depends on some labour issues like location, wages, cross training, work hours and adaption of labour force and besides labour oriented regulations.
Harrods is a famous brand well known in the world. It has more than 4000 employees with a 3500 agency and concession employees. If the labour market changes Harrods may face a great crisis in retaining the employees. Because the employees may change the working environment of Harrods if they great better opportunity of flexible working.
On the other hand this company can attract more skilled and innovative employees into its flexible working through the flexible labour market (Blyton, P.1991).
Discrimination during promotion:
Promotional discrimination can be followed by Harrods. While promoting to new post, Harrods may make discrimination on the basis on seniority or experience. It may prefer seniority or experience but it have to. So this issue can be avoided by Harrods. For example while promoting Harrods the company have to know about the laws and regulations which are related to the discrimination in the work place during the promotion.
Discrimination during decision making:
Though Harrods claims it ensures employee satisfaction by creating workforce environment and motivating in many ways but while making decision in a crisis situation, it discriminate the employees opinion. Sometimes line managers can have good idea but it is ignored while top managers’ decision is taken in spite of having poor idea (Huselid & Becker, 2011). For example the decision making process in Harrods should not be conducted with all the employees of the company by which the taken decision is not appropriate for the company.
Discrimination during talent hunts:
All employees in the organization deserve some unique skills and that’s why they are now in Harrods. As Harrods is conducting the program named “talent hunts”, so it surely makes some discrimination among the employees. It seems Harrods only develop those who are talented. But Harrods should take steps regarding weak employees and special training program for those employees. For example the talent hunt program in Harrods increase the skill of the employees which is beneficial for the company to develop their business in the market place. For example talent hunt discrimination only allows that employees which are fully trained and experienced for the work of the company.
Discrimination in workplace occurs when an employer treats one employee favourably than others in the workplace. Discrimination is based on specific identifiable characteristics that make unequal treatment among the employees (Blyton, P.1991). There are major four type of employment discrimination happened in the workplace. They are given below:
Discrimination based on Race:The discrimination of Race occurs when an employer of an organization hire, terminate, promote, compensate, job training to an employee based on the race or color. For example it becomes discrimination when an employer only recruits white or light skinned people in lieu of black people.
Discrimination based on Age:The discrimination of the age occurs when an employer select, hire or recruit an employee based on a certain age without regarding the other factors (Skyrme, D.J. 1994). For example, discrimination happens when an employee of an organization only hire them whose age below the 25 years.
Discrimination based on Gender:Gender discrimination happens when the employer of an organization treats female employees more favourably than the male employees or vice-versa. For example, discrimination in gender occurs when employers pay or provide more facilities to the female employees rather than the male ones.
Discrimination based on Disability:In the disability discrimination an employer deals with an employee less favourably than other employees because of a reason that is related to his/her disability. For example, when an employer gives special or less attention to a wheel chaired person during hiring it creates disability discrimination.
Harrods is a worldwide recognized brand. Harrods is liable for the racial discrimination claim.
Direct discrimination:Direct discrimination in Harrods is treating an individual less favourably then other in the similar or same situation or separating them from others because they have illness or disability (Becker, 2010). Declining an employee who has the needed skills as they are def or suffering from a situation of discrimination.
Indirect discrimination:Indirect discrimination occurs in Harrods when there is a condition, standards or practices that equally applies to everyone but which has an unhelpful impact on a specific group and could not be justified (Custers.et.al, 2012). For example an unneeded physical or age requirement could discriminate against disabled peoples or women.
For implicating equal opportunities for the employees, Harrods make survey each year to find out employees are treated equally by fulfilling their job satisfaction. Some steps are:
By changing organizational structure:
Harrods change the structure of their organization to ensure equal opportunities by job enrichment. If the existing structure increases the responsibilities of employees, the senior managers think over it and change it to make equal responsibilities for all.
Harrods create environment where employees are motivated to take their decisions. Senior managers design the decision making process in way so that employees are able to practice more leadership responsibilities by engaging themselves. Harrods also practices democratic leadership style where anyone can provide opinion in case (Boselie, Dietz & Boon, 2005).
Sources: Made By student
For using the latent talent of employees, Harrods screen the talent of employees. They promote themselves according to their talent and use them in different perspective for the sake of the company. Equal evaluation of employees is highly practiced by the Harrods.
No evaluating as individual performance, Harrods believes in engaged workforce for achieving the goal. So in this case they provide opportunities for all groups of employees to show their best. Harrods find out the intrinsic needs of employees and they fulfil it irrespective of position for the sake of the company (Windolf, 1986).
Harrods provide central focus to its employees because they believe that employees are the public face of the company. This company always follows the equal opportunities legislation highly. For example, the new owner (Qatar Holdings) of the company did not truncate the previous employees who were employed by the Mohammad Al-Fayed. Besides the company promote their employees equally through providing same training, mentoring &coaching, support network (Skyrme, D.J. 1994). Although there is a claim about the Harrods regarding the racial discrimination, it is trying its best to cope up with it through recruiting and hiring best employees from anywhere in the world.
Changes in structure of organization are helpful for the employees as they feel that they are protected in the environment. Employer and employees is feeling protected in the new change environment. The changing work environment of the company makes the employees to feel protected in the organization (Skyrme, D.J. 1994). Harrods adopt various acts which are helpful for the employees and employer of the company.
Equal opportunities and managing diversity of Harrods are used in two different situations. Harrods ensures equal opportunities of employees by legislative regulations, justice, working environment, code of ethics, employee selection and promotion, remuneration, reward etc. while the managing diversity is related to business needs of Harrods. Full utilization of employee’s skill is related to managing diversity while improving effectiveness in competitive edge is the way to maintaining equal opportunities. Harrods provides equal opportunity to all the employees as they are fulfilling requirements of the business and also helpful to improve the effectiveness of the company.
Source: Made By Student
The objectives of two approaches are also differentiated in Harrods.
Main objective of equal opportunities of Harrods are providing equal benefits and advantages for all employees like participating in decision making process, maintaining equal proportion of remuneration, equal responsibilities are such kind of opportunities.
The objective of managing diversity of Harrods is to assess the individual employee needs, acknowledging them and assessing them according to company requirements by maintains employee satisfaction (Kuvass & Dysvik, 2009).
Harrods use managing diversity in the economic terms of organization but equal opportunity of Harrods is linked with ethnic case in society and status.
One of many centre variations between equal opportunities and managing diversity is usually linked to the drive intended for alter. Although external aids, like government regulations, interpersonal justness, moral in addition to human rights etc, tend to push equal chance, taking care of range is commonly driven by internal aids from the Harrods construction and is also promptly of the lower line.
Harrods adapts the issues related to the reducing discrimination from the organization for the managing equal opportunities. Human resource approaches of Harrods to manage the diversity are given below:
Diversity enlargement: Using this approach employees are recruited from diverse background.
Diversity sensitivity:The main goals of this approach are to remove obstacles and promote communication and collaboration.
Cultural audit:In this approach the company audits current practices using survey or focus group in order to identify lacking and address these lacking (Hochschild, A. 1997).
Strategy for achieving organizational outcomes:Using this approach management integrate diversity with human resource policy areas with other strategic areas.
Business of Harrods embraces equal opportunity and diversity which are benefited from a good public image. Prospect employees are generally wanted to work for companies that make a caring and friendly attitude. Harrods manages equal opportunity and diversity by managing their employees in the business (Kuvass & Dysvik, 2009). Management of diversity and equal opportunity in Harrods is an ethical and moral obligation for the business of company and it will potentially save the legal costing which resulting from its lawsuits.
Although specialists believe that 85% success of an organization depends on the skill of human engineering, the management of the human resource is not an easy task for an organization.
During managing human resources a human resource manager faces challenges from work cultures, ethics& values, balancing work and personnel life etc.
Human resource manager should provide close attention when they measure the performance of the employees in an organization. They should implement the various models of flexibility properly so that in increase productivity.
Managing human resource focuses on the functions that a manager performs for its employees. Without proper management of the human resource an organization cannot build an effective working environment which is the basis for increasing productivity of the organization.
Managing human resource helps an organization to perform a set of functions effectively such as recruiting and training employees, performance appraisal, managing disputes, developing public relation as well as maintains a healthy and safety working place for the employees.
Harrods actually tries to make an integrated workforce by mentoring, advising and providing financial and non financial help to its employees. Harrods certainly not like nepotism with regard to recruitment in addition to choice course of action that will assure the effectiveness in addition to productivity with regard to activities.
Through the track record regarding Harrods it's known that will, Harrods certainly not tried for you to by pass any kind of posts in addition to supply regarding manual work regulation in addition to manual work privileges with regard to cessation processes.
Harrods per se possesses legal advisory mother board that will always cope with the legal centred troubles and provides the sensible in addition to particular consultancy to take the steps needed.
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Boselie, P., Dietz, G., & Boon, C. (2005). Commonalities and Contradictions in HRM and Performance Research. Human Resource Management Journal, 15(3), 67-94.