Analysis of HR Policies and Practices in Primark and Mothercare Plc

INDIVIDUAL ASSIGNMENT
STUDENTS NAME: Dmitri Maximenko
STUDENTS ID: 13009

Table of Contents
1.0 INTRODUCTION............................................................................................................................................... 3
2.0 THEORETICAL CONCEPTS.......................................................................................................................... 4
2.1 HIGH COMMITMENT HRM AND PERFORMANCE.........................................................................4
2.1.1 EMPLOYMENT SECURITY AND INTERNAL LABOUR MARKETS....................................4
2.1.2 SELF-MANAGED TEAMS/ TEAMWORKING............................................................................5
2.1.3 EMPLOYEE INVOLVEMENT, INFORMATION SHARING AND WORKER VOICE........5
2.1.4 EXTENSIVE TRAINING, LEARNING AND DEVELOPMENT................................................6
2.2 HARD HRM AND SOFT HRM.................................................................................................................. 7
2.2.1 HARD HRM............................................................................................................................................ 7
2.2.2 SOFT HRM............................................................................................................................................. 7
3.0 EXTERNAL FORCES AND EFFECT ON HR STRATEGIC DECISIONS............................................8
4.0 ANALYSIS OF HR FUNCTION AND HR POLICIES AND PRACTICES..........................................10
5.0 CONCLUSION.................................................................................................................................................. 12
6.0 REFERENCES.................................................................................................................................................. 13
2

1.0 INTRODUCTION
The concept of human resource management (HRM) has emerged many organizations with
the purpose of achieving success through the people. With the help of the Human resource
management, the organizations are able to obtain and retain the skilled, well-motivated
workforce and committed people. HRM can, however, enhance and develop the inherent
capacities of the people. It can be integrated that the HRM is a strategic and coherent
approach through which the organization can employ, develop and associate people for
their well-being.
Primark is a subsidiary Irish retail organization which provides clothing and accessories of
AB Foods to the people. The HRM functions of the Primark are general in terms as they
follow the strategic aspects of the organization like- planning, designing and
communication and information. The leading clothing retail brand in the UK covers the
major areas of Ireland which possess value for money clothing brand in maximizing its
profit. There are 160 stores in the UK and Ireland which helps the organization to deploy
their services (Jimenez-Jimenez and Sanz-Valle, 2012).
On the other hand, a public company named Mothercare Plc is a British retail organization
which specializes in the products that are essential for the expectant mothers. They also
provide general merchandise for children up to 6 years old. The study provides an analysis
of the HR policies and practices within the organizations.
3

2.0 THEORETICAL CONCEPTS
Human Resource Management refers to policies and practices which are carried out within
the management of the organization. This includes screening, recruiting, rewarding,
appraising and training. Primark offers the best value for money products and services.
They continuously improve their range of services and treat their customer in the better
way. It can also strive on environmental, health and safety (Ashleigh, et al. 2012). The
impact of IT on HRM can help in online recruitment, electronic resume and work culture,
security system and employee orientation.
2.1 HIGH COMMITMENT HRM AND PERFORMANCE
There has been a notion of the best practice in Human resource management through
which high performance work systems are encountered. The substantial growth of the
business can provide the principal differences between the studies through which the
nature of the HR practice are examined. There are different component on which the
Primark organization depends for regulating their best practices. They are:
2.1.1 EMPLOYMENT SECURITY AND INTERNAL LABOUR MARKETS
Organizational Culture has been quite active in raising awareness on the child labor issues.
The roles of the suppliers are equally important in the Primark Ltd. It has more training
programs for the suppliers along with the staff members (Brewster, et al. 2012). The
security of the employment ratio is the fundamental underpinning prospect of the HR
practices. It helps to gain the psychological aspects of the employee to whom hard work,
ideas and future concerns are performed. The Mothercare is providing their products
through online or on the High street that configures on the high number of the staff.
4

Figure: Concept of High Commitment HRM and Performance
Source: Brewster, et al. 2012
The internal labor market of Mothercare Plc provides the rights issue at 125p per share.
The workplace safety is also one of the key factor for setting the priority in the business.
Due to the High Commitment HRM practices, safeguarding the employment and internal
labor market of the organizations like Primark has increased their worker’s trust and job
satisfaction and commitment towards their work (Brewster, et al. 2012). It has also
foreseen that for Mothercare Plc this concept has substantially impact on the financial
performance and productivity of the organization.
2.1.2 SELF-MANAGED TEAMS/ TEAMWORKING
The practice has become more prevalent can improve work processes in response to the
competition. The key attribute of the employers can help the organization to attain their
goals. Teamwork can provide typical leading position to gain better decision-making. The
organizations like Primark and Mothercare Plc can range access with the team working.
2.1.3 EMPLOYEE INVOLVEMENT, INFORMATION SHARING AND WORKER VOICE
There are number of the reasons through which the essential component of the high
commitment paradigm through which open communication and financial performance can
be attained (Albrecht, et al. 2015). The information sharing or EI can help in including
5

downward communications, project teams and upward problem-solving groups. Primark
provide the precise mix of EI techniques depends on the circumstances and flexible
definition of involvement at the level of the decision-making.
2.1.4 EXTENSIVE TRAINING, LEARNING AND DEVELOPMENT
The recruitment and selection process of the Primark can provide an equal opportunity to
the employee. The recruitment process can transparent and easier to access with the
registration form through online questions. One of the most widely quoted an important
element of the high commitment HRM can help the employers to willingly facilitate
employee development. It can also provide specific training to cover short-term crises
(Kaufman, 2010). The full-fledged learning companies can provide different measures of
the time and effort with the interpersonal skills and training programs. The number of the
days that are referred can outset the budget of the training and helps the organization to
achieve their goals within time.
The field of the HRM in the organization such as Primark and Mothercare are extensively
carried on the basis of the competition and involvement of the HRM strategy in the
business. The dependency on the Strategic human resource planning models is crafted by
the Primark and Mothercare Plc. The strategic actions that are recorded for the
organization are based on the measurable ROI on the human capital.
High commitment HRM practices are one of the best ways to manage human resources in
improving the business performance. The High commitment model is acceptable in all
organization as it brings about the notion of bundles of HRM practices along with
integrating different sets of services (Jimenez-Jimenez and Sanz-Valle, 2012). The strategy
can business aspects can be critically evaluated with the help of managing the links
between HRM and performance.
Mother care bought the early learning centre for providing guidance to the parents and
mothers for their pregnancy stage. On the other hand, Primark has joined the Ethical
Trading Initiative, a collaboration organization which discusses about the labor rights
issues in their supply chains.
6

2.2 HARD HRM AND SOFT HRM
The strategies that are applied to the Mothercare are based on providing retail materials to
the parents and young children. To manage their business several challenges and
unseasonal weather aspects were mixed in the performance of the International business
of the organization. Similarly, HR strategy of the Primark is based on the organizational
plan which clear and precise with the business as the effect of the changing environment is
highly relatable to the significant practices of level of rewards (Gong, et al. 2010). The need
of the organization to co-operate with each other to gain maximum benefit is further
recorded.
2.2.1 HARD HRM
The Hard HRM practices in the organization are efficiently used to meet the organizational
objectives. It is the best possible way to assess on the cheap and sparingly unitarist model.
The needs of the stakeholders in the Primark were completely ignored which gave rise to
many conflicts. Thus, the future challenges are being focused with the practices. The
potential concern can help in delineating the corporate culture, using branding to promote
culture and Understanding the workforce within the time. Primark recruit the employees
through an easy way i.e. invited for interview and job offer. There are varieties of the
benefits that are discussed during the interview which involves the salaries competitive
and subjective annual review (Farndale, et al. 2011). The other benefits includes-
structured training and development, contributory pension scheme, promotional
opportunities for everyone and childcare voucher scheme.
2.2.2 SOFT HRM
Soft HRM is the way to through which the employees, managers and other personnel
management and HRM. This can gain commitment and loyalty towards the employees
which provide the performance and existence in the business. The use of the soft stand
relies on the person-centered approach by the organization. The Primark directs the
employee with the help of the rewards and incentives.
7

Figure: Different HRM practices
Source: Farndale, et al. 2011
3.0 EXTERNAL FORCES AND EFFECT ON HR STRATEGIC DECISIONS
The external forces that impact the HR strategic decisions of the organizations like Primark
and Mothercare are- recession, immigration, globalization, suppliers and raw materials,
ethical practices, media, competition and labour market. The ethical practices followed
with the experiences of the workplace and their workforces in an economic recession.
The financial budget of HR promotes the standard HR revenue for adults which should by
around 5.93£/hr for the Primark. The staff works during the night shifts also enjoys the
15£ of extra income on every work (Festing, 2012). The economic conditions of the
Primark and Mothercare are considered under the external forces as it can shape the
8

economic turmoil of the organization. The bad economy is generated due to the uncertain
climatic conditions. The financial conditions of the organizations are badly influenced by
this factor. As for Mothercare Plc, the climatic condition plays a major role as they promote
the sale of the services through the street sale. However, retail business of Primark is also
affected while transporting the products from one place to another.
The role of the technology advancement also provide the external influence on the HR
department as the organization use this means to minimize their expenditure measures.
The way to Mothercare promotes their products online through offering 15% discount on
buying the products are ensured with the revolutionized change of doing business with the
internal cost-saving way.
The demographic conditions are managed as the Workforce can help in retrieving the
conditions with the entire workforce (Buller and McEvoy, 2012). The human department is
responsible to look towards the candidates that are setting the new trends in the business.
The influence of the compensation packages to attract the younger generation and
contusive working environment can help in managing the business performance of the
organization. The hiring and retention is the important factor through which the external
influences are properly measured. It also follows the lawsuits and sanctions of the business
through paying close attention to the jobs. The level of the competition in the business is
the most influential factor through which the ability to recruit the right candidate for the
certain post has been configured by the people. The need of the business requires no spend
money advertising and receiving the scenario which requires the need to focus on the
recruitment measures in the organization. The HR must develop the programs through
which incentives and retaining the key employees are measured.
The labor supply drives the amount of the compensation in the business. It helps the
organization to attract the employees in an oversaturated market conditions also
(Farndale, et al. 2011). The amount of compensation and shortage of the candidates in the
organizations exist as the competing organizations can provide them multiple option and
specific salary for particular work. This helps in ensuring the employees that the wages
that are provided to them remain competitive measure for the business.
9

4.0 ANALYSIS OF HR FUNCTION AND HR POLICIES AND PRACTICES
To manage the HR competitiveness in the business of the retail industries like Primark and
Mothercare plc. Ulrich model helps in providing the better functioning properties. The
Ulrich Model provides the human resources functions for the large-scale business. The
functions are compartmentalized into four segments. The role of the Creative HRM is a
website fully devoted to the modern and agile HR management such as employee relations
and HR development are all configured under this model. The change in the HR agenda is
measured with the help of the HR model (Albrecht, et al. 2015). It also enacts the decision-
making and measuring roles and responsibility of the business. The role of the manager in
managing the delivery of the services in the organization is practiced with the help of the
high performance culture.
Figure: David Ulrich Model
Source: Ashleigh, et al. 2012
The role of HR services can enable the Organization to achieve its goals and its
responsibilities. This helps in providing legal and other employment obligations i.e. health
10

and safety and employment code. The manager can also advise on the employment
relations issues that can help in coordination and communication between the cooperative
working climates (Kaufman, 2010). They can carry out willingly the workload, pressure
and organizational support.
11

5.0 CONCLUSION
The role of the Managers plays a vital role while performing the HR functions and
operations of the organization. The Primark and Mothercare work on the different
principles of the HR management. The analysis of the policies and external forces on the
organization are discussed in the study.
12

6.0 REFERENCES
Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. and Saks, A.M., 2015. Employee
engagement, human resource management practices and competitive advantage: An
integrated approach. Journal of Organizational Effectiveness: People and Performance,
2(1), pp.7-35.
Ashleigh, M.J., Higgs, M. and Dulewicz, V., 2012. A new propensity to trust scale and its
relationship with individual well being: implications for HRM policies and practices.‐
Human Resource Management Journal, 22(4), pp.360-376.
Brewster, C., Mayrhofer, W. and Farndale, E. eds., 2012. Handbook of research on
comparative human resource management. Edward Elgar Publishing.
Buller, P.F. and McEvoy, G.M., 2012. Strategy, human resource management and
performance: Sharpening line of sight. Human resource management review, 22(1), pp.43-
56.
Farndale, E., Hope-Hailey, V. and Kelliher, C., 2011. High commitment performance
management: the roles of justice and trust. Personnel Review, 40(1), pp.5-23.
Festing, M., 2012. Strategic human resource management in Germany: Evidence of
convergence to the US model, the European model, or a distinctive national model?. The
Academy of Management Perspectives, 26(2), pp.37-54.
Gong, Y., Chang, S. and Cheung, S.Y., 2010. High-performance work system and collective
OCB: A collective social exchange perspective. Human Resource Management Journal,
20(2), pp.119-137.
Jimenez-Jimenez, D. and Sanz-Valle, R., 2012. Studying the effect of HRM practices on the
knowledge management process. Personnel Review, 42(1), pp.28-49.
Kaufman, B.E., 2010. A theory of the firm's demand for HRM practices. The International
Journal of Human Resource Management, 21(5), pp.615-636.
13