Explore the importance of HRM practices at Harrods, including recruitment, selection, employee relations, and employment legislation. Understand the impact on profit and productivity, with a focus on effective decision-making.
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Human Resource Management
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1 Table of Contents Introduction................................................................................................................................2 Task 1.........................................................................................................................................2 Explain the importance and the function of HRM applicable to workforce planning and resourcing in Harrods(P1, M2).................................................................................................2 The strengths and weaknesses of different approaches of recruitment and selection used by H&M (P2, M2, D1)....................................................................................................................3 Task 2.........................................................................................................................................5 Benefits of different HRM practices within Harrods for both the employer and employee (P3, M3).............................................................................................................................................5 Effectiveness of different HRM practices in terms of raising Harrod’s profit and productivity (P4, D2)......................................................................................................................................8 Effectiveness of different HRM practices can be evaluated by the strengths of each practice..8 Task-3.........................................................................................................................................9 P5. Importanceof Employeerelationsand itsimportancein Harrodswith respect to influencing the HRM decision making......................................................................................9 P6. Elements of employment legislation and their impact upon HRM decision-making........10 Task 4.......................................................................................................................................11 Job Specification and role play to stimulate the interview......................................................11 Offer letter................................................................................................................................17 Interview Selection Criteria.....................................................................................................17 Evaluation of the process and the rationale for conducting appropriate HR practices............18 Conclusion................................................................................................................................19 References................................................................................................................................20
2 Introduction In the recent era of globalization, business is the key term to establish the relationship between the countries which will increase the revenue rate of the country. This report is based on the importance of HRM in order to run an organization (Cascio, 2018). Here, the learner states an organization namely Harrods. Harrods is a renowned departmental store in London, UK. The store is standing on a 5-acre land with about 330 departments of retail space. The different departments provide with a vast range of products such as clothing for kids, men and women, electronic gadgets, jewellery, toys, foods and drinks, cosmetics, furniture and appliances. There is also a section with 32 restaurants ranging from tea to haute cuisine. Nearly, 300,000 customers mainly from non-English speaking regions of the world, visit Harrods at least once in a week (harrods.com, 2018). Thus the assignment focuses on the Human Resource management of Harrods. Task 1 Explain the importance and the function of HRM applicable to workforce planning and resourcing in Harrods(P1, M2) Human Resource Management is a term in the business which is responsible for the process of recruiting, hiring, managing the employees of Harrods. Each and every organization, require a HR to develop the strategies on the behalf of employee retention which helps the organization economically, socially and legally (Banfieldet al.,2018). The purpose and functions of HRM which are stated as follows: Recruitment and selection- HRM of Harrods is responsible for hiring competent, qualified and talented candidate for the organization which will minimize the cost of recruiting the incompetent, discouraged candidates. HRM should proceed with the appropriate recruiting process and block the process of hiring candidates. The purpose of recruitment and selection is to provide the organization with the work force and meet the targets of the organization (Coller, 2018). Management: HRM functioning is centred around four terms such as planning, organizing, directing, and controlling. Planning means to set the goals and objectives of the organization that are needed to meet. Organizing refers to integrate the tasks
3 among the competent, qualified employees. Thereafter HRM at Harrods directs the allotted employees to the work by providing incentives. HRM at Harrods then checks and compare with the actual plan so that it does not gets deviated in a wrong path. These four steps are followed by HRM to have an analysis of the organizational goals and objectives. Employee relations- HRM at Harrods maintains the relation between the employees and management and also among employees. HRM also held responsible to maintain the attitude towards the labours in order to respect them. It also maintains the working environment to get the job satisfaction. Administration- HRM determines the wages, incentives for the employees of the organization so that they get motivated by the organization in order to meet the target. The strengths and weaknesses of different approaches of recruitment and selection used by H&M (P2, M2, D1) Internal process: Recruitment and selection are the key terms used in HRM. There are two types of approaches such as internal and external approach of recruitment and selection by HRM at Harrods. Internal approach Internal recruitment and selection is meant to hire the candidates from the organization itself. It is attributed for the promotion and transfer of the existing employees and the job advertisements are circulated within the organization (Ozcelik, 2015). Strengths: 1) It is a cost-efficient and faster process of recruitment and selection. 2)As it is an internal process, employees are already familiar with the organization and the strategies of Harrods. 3) Internal recruitment and selection provides the opportunities for the promotion and transfer within Harrods. Weakness: 1) There will be a limited number of competent, talented candidates in the organization.
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4 2) There is a relatively low chance for the new and innovative ideas from outside. 3) Vacancy is created for the internal recruitment which is required to be filled. 4) The organization becomes aware of the strengths and weakness of the newly recruited candidates. External approach Externalapproachmeansrecruitingcandidatesfromoutsidetheorganization.The recruitmentismainlydone throughthe jobadvertisements,recruitmentagencies,and personal references (Hossain, 2016). Strengths: 1) Implementation of fresh, new ideas to work which will enhance the organization. 2) There is no internal politics prevailing in the process of recruitment. 3) Some ideas will be presented by the recruited candidates from other industries. Weakness: 1) It is an expensive process as it is concerned in hiring fresh candidates from outside 2) The newly recruited candidates cannot mix with the environment of the company. 3) The external recruitment consumes a lot of time.
5 Task 2 BenefitsofdifferentHRMpracticeswithinHarrodsforboththeemployerand employee (P3, M3) Difference HRM practices in the management of Harrods have different benefits both for the employers and the employees. the benefits of the HRM practices in the management of Harrods are discussed as follows: Harrods practice DetailsBenefits for employeesBenefitsfor employers Recruitment & selection The recruitment and selection processattheHRM department consists of both theinternalrecruitment approachandtheexternal approach.Theinternal recruitment process is for the highermanagementlevels and the external recruitment process is for the employees ofjuniorlevel(Harrodet al.,2016).Whenthereisa vacancy for the managerial level in Harrods, the HRM Departmentfollowsthe processofpromotingthe existing skilled staffs. For the recruitmentofjuniorlevel staffs,likestore-keeper, Junior Accountant, Inventory Assistantetc.theHRM DepartmentofHarrods follows the external process Therecruitmentand selectionprocess,both internal and external are beneficialtothe employees as this process givescopetothe employeestoenhance theirskillsand competency.Asthe internal processes ensure theretentionofthe employeesinHarrods through providing better opportunitiestothe employeesfortheir growth it is beneficial for theinternalemployees. The external recruitment processesbringnew talent and skills from the outsidemarketthrough interview. Theemployersof Harrods enjoy benefits fromtheinternal recruitmentprocesses as they can retain the internal employees in acost-effective manner(Allanet al.,2015). On the other hand,theexternal selectionprocess bringsinnovationin Harrodsfromthe outside market.
6 for recruitment. The selection in the HRM Department of Harrodsisdonethrough interview,skilltests,group discussion etc. Both Harrods andtheemployeesof Harrodsarebenefittedby theseselectionand recruitment processes. Learning, development and training The selection and recruitment processhasbrought knowledge,learningculture withinHarrodsthrough continuousdevelopmentof trainingprograms.Inthe HRMDepartmentof Harrods, the staffs are trained withskillsandknowledge resultingincontinuous developmentofskillsand knowledge.Thisselection process also teaches both the employers and employees of Harrodsnewchangesand give chance to prosper. The HRM department of Harrods processestrainingprograms in which both the employers andemployeescanhave continuousknowledgeand skillstodeveloptheir competency.Thusthese processes provide benefits for Theseprocessesare beneficialtothe employeesofHarrods becausetheyprovide opportunitiesthrough continuouslearningand theemployeescangain better opportunities in the organizationtodevelop themselvesinreturnof better salary and facilities (Nkhataetal.,2016). Theycandevelop themselvesforthejob market. Fromtheaspectof employers,theycan beconfidentof organizational success.Harrods, throughthese processes,cantrain theexisting employeesthrough changingsituations andtheemployers alsoget trained(Bradley, 2015).
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7 boththeemployeesand employers. Joband workplace design TheHRMDepartmentof Harrods,throughthese processescanmaintaina goodworkcultureinthe work place and allocate the specificjobstothe employees.Specific allocationofjobsare processed to the employees andsotheemployeesof Harrodsgetexpertintheir job roles. Through these processes, variousHRMpolicies andtheirbenefitsare notified to the employees of Harrods so that they may be able to participate inthemanagement decisionandtake decision when necessary. Thusthechancesof misconductarereduced (Jakopovic, 2017). Theemployersof Harrots are benefitted bygainingagood workforceinthe companythroughan organizational culture. Flexible organization Asalotofstructural flexibilitiescomeinthe organization,theHRM DepartmentofHarrodsis benefitted by getting such a flexibleorganization(Bide, 2017). Aflexibleorganization likeHarrodsisalways beneficialtoits employeesasitcan upgrade the HR policies intheorganization according to the demand of employment and as the employees can get higher salary package, attractive benefitsandother compensation(Kunkel, 2018). Fromtheaspectof employers of Harrods, theyfeelpridefor Harrodsbeinga choiceofthe employees.The employersneverfail toacquirethebest talents in the industry. Payment and reward system Formaintainingproper payment and reward system inHRMDepartment, different paying methods for different grades of employees are developed and thus the The payment structure of Harrodsgetsdeveloped andhencethesalary structure,andother facilitystructuregets developed.The Theemployersof Harrods get benefitted as they can retain the skilledandefficient employeesinthe organization.
8 payment structure of Harrods get developed (Puaschunder, 2016). employeesaresatisfied withtheirsalaryand facilitiesandtheir behavioralapproachis developed. Performance management TheHRMDepartmentof Harrodsundertakes evaluationandappraisal programs for the employees and thus the management of Harrodscanevaluatetheir employees(Saintet al.,2015). Theemployeesof Harrods get benefitted as theycanbecomeaware oftheirareasof improvements. Theemployersof Harrods get benefitted astheycanidentify the skilled employees withinthe organization and from outside market . Source: Created by author Effectiveness of different HRM practices in terms of raising Harrod’s profit and productivity (P4, D2) Effectiveness of different HRM practices can be evaluated by the strengths of each practice. The internal and external recruitment process in Harrods have a number of strengths like saving of time, cost-effectiveness, employee retention etc. Type of costsCostsNumber of costs Cost of design and development internal design days and development2 costs of external designers and developers Promotional costsinternal days of promotional activity2 other costs of promotion Administration costshours of administration required per candidate2 direct administration costs per candidate Faculty costsfaculty expenses1 Materialscost per employee of training materials1 Facilitiestraining room expenses2
9 equipment used for training Total8 Typeofprofit/ productivity Profits/ productivityNumberof profit/ productivity Labour savingsReduction of duplication of effort3 less time spent in correcting mistakes faster access of information Productivity increases improved methodologies that reduce the effects3 higher levels of skill leading for faster work higher levels of motivation for the increase of effort Othercost savings fewer cases of machine breakdowns, resulting in lower maintenance costs 3 lowerstaffturnover,effectedinlowerrecruitmentand training costs Bad debts reduced Otherincome generation a higher success rate for winning competitive pitches, that leads to increased sales 3 sales referrals made by non-sales staffs newideasofproductsleadingtosuccessfulproduct launches Total12 Calculation of ROI percentage % of ROI percentage % of ROI= (benefit/costs) X100 =12/8 =1.5 Therefore the ROI is 1.3%
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10 Here the ROI percentage is positive for 1.5% and from this it can be decided that the training method applied for Harrods is effective and it is evident that there are more benefits in the cost incurred in such training program. Task-3 P5. Importance of Employee relations and its importance in Harrods with respect to influencing the HRM decision making Employee relation is an important term used in HRM which is indirectly or directly used to enhance the organizational goals and objectives. Strong employee relation is essential for better productivity and increase of profit margin for the said organization. Employees mainly deal with issues that may arise in the workplace, which they need to avoid and resolve in order to maintain a favourable working environment. The importance of employee relation with respect to HRM decision making are: There are numerous issues on which a person cannot take decision aloneso in such cases, every person requires proper guidance and advice of others as well. Occasionally, before introducing any plan each employee needs to express personal opinions without any restraint. If a good relation is not maintained between the employees and the employer then it will affect the entire work process. Work becomes easier when ahealthy relation is maintained among the workers and it results in good productivity. Since, a single worker cannot do every task on his own so, each and every task along with the responsibilities must be divided among the other fellow workers in order to complete the assigned tasks within the given time period. If a healthy relation is maintained among the co-workers then it is easier to share and complete the entire task. An organization becomes a favourable workplace; if the employees working in the same environment together form a bond like family.But it is usually seen that a person tends to lose concentration if the mind gets filled with tensions and stress. It has been also observed that when employees discuss and share their individual problems then all such issues get deleted automatically. A single worker generally spends about 8-9 hours per day at the workplace and it is never possible for the same worker to carry on the work without a single break during the entire working hours (Anitha, 2014). It is important to
11 respect one another within the workplace because being a retailorganization, the employees of Harrods has to deal customers directly. It is highly important for employees to work with ease and maintaining proper relation between co-workers that ultimately helps to focus and concentrate into the work with less number of conflicts. P6. Elements of employment legislation and their impact upon HRM decision-making Employment legislation is one of the key factors that are designed keeping in mind the welfare of the operational employees. The laws are mainly designed for protecting the rights of the employees from every kind of odd behaviours of the employer or any other staff associated with the said organization. It also plays a major role in order to make the employees feel comfortable to work within the organization. The several employment legislations with respect to Human Resource management are: Discrimination Act- According to the Civil Rights Act of 1964, discrimination against the employees on the basis of race, colour, religion, sex and nationality is strictly prohibited (Soutphommasane, 2015). These regulations are functional for the organization where more than 15 employees are working on direct payroll. The organization cannot deny any hiring of an employee under any sort of discrimination. The age discrimination mentioned in Employment Act extends the prohibition of hiring for the allotted employees of age more than 40. Federal Family and Leave Act- According to the Federal Family and Leave Act, employees can take a leave upto 12 weeks in a 12 month period for a variety of conditions such as the severe health problems, bonding with new home coming baby or qualifying to active military service. The employees of the organization like Harrods are entitled to job protection during their absence. They remain at working status even though an employee quits the job without any appropriate reasons or without informing the management of Harrods. The HR department of the said organization holds the right to take strict legal action against the employee and it may even lead termination (Arleo,et al., 2015). Equality Act-
12 The Equality Act 2010 suggests that every employee of an organization must be given equal importance irrespective to its sex, religion, caste, etc. Every individual within the same organization have a right to equal pay which means every worker must be paid in terms of the work doneby the sameemployee(Foster,2015). Thisparticularactmainlyensures consistency related to matters that both organization as well as the employees needs to do in order to improve the workplace environment as guided by the law. Task 4 Job Specification and role play to stimulate the interview Curriculum Vitae of the Interested Candidates Curriculum Vitae HR Assistant HANNAHRILEY CONTACT: 077 2589 0615/0256 95 GUILD STREET,LONDON-NW7 1HS. E-MAIL ID: rileyhannah78@gmail.com CAREER VISION: To work in an organization that will give me a platform to utilize my skills and enrich my knowledge which in the process will help in the growth of the organization.At present, I would like to work for an enthusiastic company that is looking for a HR Assistant who can reflect their values of excellence and quality. EDUCATIONAL CREDENTIALS: Completed MBA in Human Resource Development fromBrown University, St.Province withGPAof3.7/4.0
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13 Examination/ Degree Stream/ Discipline Board/ Council Nameofthe School/Colleg e Yearof completio n Division / Grade/ Class (with % of marks) Post-GraduationMBABrown Universit y Brown University 2017 GraduationElectronic s (B.Eng) Universit y College London University College London 201567% A-LevelsScienceCCEAMoriah JewishDay School 201173.25% O-LevelsGCSEWhitefriars Community School 200974% KEY SKILL SETS: Resolve characteristics and common hiring issues. Negotiation with candidate and related third parties. Initiating procedures, policies & standards for recruitment process. Managing contracts, that includes terms and conditions. ACHIEVEMENTS: OtherCertificate of meritsandmedalswon at various competitions at school level (includingAthletic MeetsandIntra-Schoolcompetitions). EXTRA CURRICULAR ACTIVITIES:
14 Active Participant of various Creative, Sports and Cultural activities from childhood. Active in Volunteering jobs both in residential area as well as for organizing fests in college. INTERPERSONAL SKILLS: Positive Attitude. Sincere. Adaptability. Fast-learner. Hardworking. Teamwork and Collaboration. PERSONAL DETAILS: Hobbies:Writing stories, Swimming, Playing Chess & Cricket. Date of birth:01/07/1980. Languages known:English, Spanish, French Guardian’s Name:Mr. David Riley Nationality:British. Sex:Female. Material Status:Unmarried. Blood Group:AB+ DECLARATION: I do hereby declare that the information furnished above is true to the best of my knowledge and belief.
15 Curriculum Vitae HR Assistant JOHNJOHNSON CONTACT:07778892315/7956 15 PERKING STREET,LONDON-NW7 1HS. E-MAIL ID: johnsonjohn78@gmail.com CAREER VISION: To work in an organization that will give me a platform to utilize my skills and enrich my knowledge which in the process will help in the growth of the organization.At present, I would like to work for an enthusiastic company that is looking for a HR Assistant who can reflect their values of excellence and quality. EDUCATIONAL CREDENTIALS: Completed MBA in Human Resource Development fromBrown University, St.Province withGPAof3.5/4.0 Examination/DegreeStream/ Discipline Board/ Council Nameofthe School/College Yearof completion Division/ Grade/ Class (with% of marks) Post-GraduationMBABrown University Brown University 201780% GraduationElectrical (B.Eng) University College London University College London 201571% A-LevelsScienceCCEAWhitefriars Community School 201169.25% O-LevelsGCSEWhitefriars200971%
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16 Community School KEY SKILL SETS: Quick in resolving disputes between various parties. Capable of handling confidential information in a professional manner. Expert in managing HR software and automated systems. Having ability to interact with people over phone as well as face to face. ACHIEVEMENTS: Winner in National College Meet debate competition in the year 2012. INTERPERSONAL SKILLS: Smart worker. Adaptable Fast-learner Good listener Teamwork and Collaboration PERSONAL DETAILS: Hobbies:Reading, Skating and Playing Cricket. Date of birth:05/11/1980. Languages known:English, Spanish, Dutch Guardian’s Name:Mr. Rudi Johnson Nationality:British. Sex:Male. Material Status:Unmarried. Blood Group:A+ DECLARATION: I do hereby declare that the information furnished above is true to the best of my knowledge and belief.
17 Offer letter 31.01.2018 XYZ 87-135 Brompton Rd, Knightsbridge, London SW1X 7XL, UK. Subject: Appointment for Junior HR Dear Mr. XYZ, We are pleased to offer you the position of Junior HR with Harrods on the following terms and conditions: Your employment will be effective, as of 1st February, 2018. Your job title will be Junior HR and you will report to Mr. YSA, centre head of Harrods. Your annual CTC is 3.5 lacs per annum and you will be provided with the pick and drop facility. You will get the posting at London, UK. You may be needed to work at any location of business where the organization has its branches. You will work five days a week starting from Monday to Friday. It is mandatory to work for 9 hours for the proper discharge of the duties of the company. You need to reach office by 9.30 am in the morning and if it is required you will have to work for additional hours. You will be provided two casual leaves per month and 2 medical leaves per financial year. Thanking you, Mr. SAD CEO, Horrads,UK
18 Interview Selection Criteria The ideal and skilled candidate should process a wide range of skills and software skill along with relevant experience in the field of Human Resource job. Interview notes and preparation The interview was successful and each candidate in the interview has shown a range of skills and experience in handling the computer with the experience of the human resource job. The following notes have been made on the basis of the interview processed for each of the employees. Hannah Riley Excellent speaking skills Eligible to adapt. Displays future managerial skills John Jonshon Excellent communication skills Capable to answer smartly The candidate has a good leadership skill Management skills In the above interview process, John Jonshon has been selected as the right candidate for the present job. He has appropriate experience in language, answer smartly, good leadership power and management of people also. All these skills are necessary for the HR executive job of Harrods. Evaluation of the process and the rationale for conducting appropriate HR practices The selection process was conducted to identify the strengths and weaknesses of the process. Strengths:Themainstrengthof thisprocessisthatthroughthisprocessthedirect communication with the candidates is linked and thus their communication skills and body language can be evaluated. Secondly the HRM Department of the company has been able to evaluate its process of interview and it can modify its process as necessary. Weaknesses:The interview-room is very little for taking the skill tests.
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19 Rationale:Conducting the HRM practice is necessary for the HR Management of Harrods which has a huge workforce in it. When the workforce is huge in an organization it is very difficult to keep a track for each of the employees and his performance. Keeping good practices of HR Management of Harrods, it is possible to manage huge workforce and also to maintain the culture of the employees in the organization.
20 Conclusion On a concluding note it can be stated that the assignment has successfully covered almost all the aspects associated with the human resource management practices of Harrods. The first part of the assignment has focused on the purpose and functions of Human Resource management where it has been observed that the successful operability of an organization rests on the shoulders of the people within the organization, and hence it can be stated that the more effective the human resource management department is the more successful will be the organization. on the other hand, the strengths and weaknesses of the different approaches of recruitment and selection has also been discussed. The benefits of HRM practices in the context of the given organization have been discussed in the light of the relevant literature. furthermore, in the next sections importance and significance of the employee relations has been enlightened where it has been observed that the better relationship among the employees help the organization to establish a healthy work environment. finally, in the last section job description, job specification and the curriculum vitae of two students have been provided.
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