Strategic HRM at Zara: Cultural Impact, Models, and Recommendations

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Zara. It begins with an introduction to HRM and the selection of Zara as a case study, highlighting the company's founding and key aspects. The main body of the report examines how Zara creates value through its HR strategies, emphasizing strategic HRM concepts such as rewards, talent acquisition, and performance management. It then analyzes the impact of regional and national culture on Zara's HRM practices, considering factors like recruitment, selection, and training. The report also explores the application of employment models within Zara, specifically focusing on the standard casual model and its organizational levers. A comparison between HRM and personnel management using Storey's 27 points of difference is provided. The importance of local culture and its significance in international subsidiaries is considered, along with differences in employment laws. Corporate examples of good HR practices are used to support the analysis, and recommendations are provided to employers to ensure high company performance. The report concludes with a summary of the findings and a list of references.

Human Resource
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
A. Examine how values was created by the firm by using HR strategies. Use of concepts of
strategic HRM should be evident ?........................................................................................3
B. Analyse the impact of regional and national culture on the practice of HRM in the chosen
country ?.................................................................................................................................4
C. Use appropriate organisation’s model of employment and state the organisational levers
used by the firm to create value?............................................................................................5
D. Using Storey's 27 points of difference between HRM and personnel management as a
benchmark?.............................................................................................................................6
E) Consider the importance and significance of local culture and HRM practices needs to be
undertaken in international-subsidiary?.................................................................................6
F) Examine the differences in terms of employment laws when international HRM changes
local business systems............................................................................................................7
G. Use corporate example of firm using good HR practices and literature to justify your
stand ?.....................................................................................................................................8
H. Give Recommendation to employer in context to HRM practices so that to ensure that
performance of company is high?..........................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Human resource management is the strategic approach to the effective management of
people in an organisation such that it helps the company to gain competitive advantage. It tends
to be design in such a manner so that it can easily maximise the performance of employees in
service of an employer 's strategic objectives(Allen, 2021)The organisation that was selected in
this project is Zara. Rosalia Mera, Amancio ortega is the founder of such company. It was
incorporated in the year 1974. The topics that were discuss in this project are explain how value
was developed by organisation with the help of implementing HR strategies, the impact of
national and regional culture on HRM practices in the selected country are also be analyse under
the report. Model of employment as well as organisational lever that are applicable in the firm to
create value are also discuss in it. Difference between HRM and personnel management as a
bench mark are also cover under the respective assignment, differences on the basis of
employment law in the situation when international HRM changes local system of business and
Through implementing HR practices use corporate examples of firm are done in this report. At
the suggestions and recommendations are given in term to HR practices .
MAIN BODY
A. Examine how values was created by the firm by using HR strategies. Use of concepts of
strategic HRM should be evident ?
The responsibility of HR (Boella, 2019). manager is to get their employees motivate so
that they can easily achieve the targets on time . To increase morale of staff member they tends
to provide better culture in the working place which leads to provide satisfaction to employees.
The main role HR is to enhance better values within the persuading working and for that there is
need to give proper training and development. By adopting various different methods HR of Zara
tends to create more values. Few examples are discuss in detail as follows:
Providing Rewards- HR of the company “ Zara ” motivate their employees at every
point of time which results to increase the performance level. For their excellence performance
employees get different type of rewards. This concept of appraisal tends to create tough
competition in the organisation so it is better understand by workforce that to survive in the
firm , there is need to perform well.

Talent retention and acquisition- This is the most common strategy followed by HR.
IN this the most suitable candidate are appointed on the basis of their capabilities, skills,
experience, abilities, qualification and power of adaptability so that they can easily understand
their job role and perform operational activity suitably without facing any difficulty. In the
organisation role of HR is very significant as they perform various activities related to
recruitment, selection, training & development, motivation, performance appraisal, rewarding
etc. so that business can run smoothly without any interruption. Interviewing, arrangement of
induction programme, calculation of salary and compensation are the job perform by HR. By
providing all the necessary facility related to health and safety measures, good working
environment , timely payment of salaries, HR of Zara can provide satisfaction to their workers as
these measures help to retain human resource for long term (Bratton, 2020)
People as well as performance : As success rate is controlled by HRM of Zara with the
help of this high level of performance are tends to be receive as this is used with the intention to
promote financial performance as well as to gain long term success. Effective decision making is
done by HR to make effectual collaboration in between the items which are offer to customers as
it provide satisfaction. Proper training are provided to the staff so that to gain most productive
results which leads to increase promotional benefit in terms to allowances, perquisites ,
compensation as these help to gain maximum output (Daft, 2021)
B. Analyse the impact of regional and national culture on the practice of HRM in the chosen
country ?
In different factors HR practices of organisation Zara depends. These factors are related
to safety & security to employees , effective team work , prominent hiring, training, easy
accessibility of information etc. It is important for every business to understand the culture so
that ability to work satisfactorily are tends to be increase. There fore it is the duty of HR to
maintain healthy environment as well as develop and follow good culture in the working place
by effectively communicating to each other. It tends to avoid confusion and conflicts. In this
regional as well as national culture are tends to make impact directly on various different
practices of HRM as these are discuss in detail as follows-
 To hire more new staff , recruitment policy are adopted and followed by HR team of
Zara. They have uses ethnocentrism where one culture is most superior to other , also
poly centrism is the culture where manager are appointed by organisation with the

intention to understand foreign behaviour and culture. In the situation geo – centrism
individuals are tends to apply from any place of the World (Dewi, 2019)
 Different nation has different selection policy Like in Asian company extensive selection
method are follow but in the US organisation adopt short selection process. But in both
the situation the main moto of HR is to understand more regarding the attributes and
culture. On the other hand it is not easy to understand and adapt different food habits,
language, lifestyle, dressing etc. Additionally it is duty of HR to select a candidate who
have great experience and better skills but for that in advance the culture are tends to be
understand and it is most challenging task for HR.
 It is the duty of HR to frame different strategy and policies in terms to training and
development so that it become possible for recruiter to understand working condition
and different norms that are set in Zara. People from different religion , culture, having
differ language are involved in the organisation so it is big challenge for HR to give
them training. As US audience try to maintain distance of 6 inch when they get interact
to someone but in the Asian countries public like to do face to face closely conversation.
Accent , gesture, way of expressing their ideas and views are differ from person to
person of different place so it is not easy task for HR to provide training to them and to
get satisfied all of them (Hel, 2021)
C. Use appropriate organisation’s model of employment and state the organisational levers used
by the firm to create value?
HR roles and their different functions are perform by HR in systematic manner in
employment model. Standard casual model are followed by Zara as these are discuss as follows
 Standard casual model of HRM: This model is based on chain process. Various strategies
related to business are initiated in it and in the end operational and financial performance
are tends to be analyse (Machlis, 2019)
This model is implemented by HR of the company such as Zara in which strategies are
aligned in adequate manner so that standardized performance can achieve through balanced
modification. Different type of strategies are developed along with their alternatives so
productive changes are tends to be induced in the most effective way. As procedures related to
compensation, training, hiring, appraisals, are involve in Zara so that to gain better quality. These

can improve both external as well as internal performance in terms to profitability and
productiveness . Various other strategies are plan by HR of Zara so that ending result must be
productive . In this strong interrelation is create among different individuals so they work with
great corporation and coordination which helps to attain effective results. Various strategies are
develop by HR and according to the situation choose the most appropriate one for better
outcomes. At the end within a business , profit standard is acknowledge from the financial
conditions as well as improve, which it is needed useful model of employment. This is use by
business and their management with aim of gaining accurate outcome (Manzo, 2020)
D. Using Storey's 27 points of difference between HRM and personnel management as a
benchmark?
Difference between Personal management and HRM as a bench mark
basis Personal management HRM
Contract It provide clarity with in the
working standards and also
discuss nuances that tends to
be follow for specific period of
time.
This department unit of Zara
perform the activity with the
objectives to maintain clarity
as well as to standardised the
working across the contract
and also its implication are
tends to be address with in the
business
Management task Zara personal management
monitor and control ,
moderately all the task and
also trying to make better
implication so has to achieve
productiveness in most
sustainable mode.
HRM helps to nurture all the
activity as they are more
dependent to skilled and
potential workers and the task
is assigned to those , whose
have better skills, knowledge
and skills so that it can be
completed on time in efficient
manner.
Rules To control importance of rule HRM of Zara must have idea

personal management is used
in Zara. In that situation task
are clear to workforce as they
better in advance what to
perform and how.
regarding all the consequences
which is implemented in the
organisation as its tends to
improve the patience level also
which support to address
moderate change in the
effective manner.
E) Consider the importance and significance of local culture and HRM practices needs to be
undertaken in international-subsidiary?
HRM practices are necessary in business it helps to achieve the goals on time. To
enhance performance of market and also to solve many problems HRM practices are used
continuously by Zara (Narayanan, 2019). In the modern business not to concentrate only on local
human resource but also focus on global one. For new recruitment or exist , HR concentrate on
hiring and firing so as to create sustainability. It shows sustainable development and growth by
which long term success are tends to be achieve on continuous basis. To appoint individual of
local culture having significance as it is discuss in the below mentioned paragraphs-
 As local people better understand the culture and they can navigate the issues and
reasons behind it easily. Due to that higher productivity outcomes are tends to be
generated with the reason of decrement in the financial losses.
 For effective communication there is need to fluency in the language so that
management can processed with flexibility. In Zara HR hung up with those who is
familiar with the language as it tends to reduce communication barrier. Like if Zara
choose person from different location for UK based business as they are not flexible
with culture and language that it trends to create difficulty for them to manage the work.
It tends to create confusions and complexity .
 It induces lesser cost as compared to the expected one as by hiring an individual of local
culture cut down three time cost. It actually includes costing as like relocation, cultural
and language training and it is not only bear by the company but with the family as well.
On the other hand in candidate is from similar culture than there is no need to provide
these kind of training so that higher costing is managed (Prasad, 2020)

F) Examine the differences in terms of employment laws when international HRM changes local
business systems.
If business run in domestic country only than on internal factors HRM is depends
completely but if company operate business globally than both the factors such as internal or
external are tends to be considered. Generally it is depends on effective involvement of personal
management which shows their concern regarding local & national culture. As international
HRM tends to change the concept of business systems with regards to management of
workforce with in various nations like parent, host and third country. In terms to employment
differences are explain in context to domestic business and international HRM as these are
explain as follows-
 Host country national: It involve those workers of Zara that are engaged in foreign
subsidiary.
 Parent country nationals: This is such country which is not to be consider as origin of
business as it is called expatriate. If these workforce engaged for the time of 4 to 5 years
that a risk of “de facto ” and in this country's standard labour laws are tends to be
attracted by organisation, Zara
 third country nationals: It include local employees who are working in different country
and in the place where Zara has its headquarters (Riebsame, 2019)
Zara and their HRM tends to sampled the global employment which is connected to
government initiative . In the organisation employer and employees are bind to employment
contracts so if any complications are present than it can be tackle easily. Various different laws
such as employment right act which involves unfair dismissal , family leave etc. are manage by
Zara in United Kingdom. In the organisation payment of salary and wages are done as per the
minimum wage act. This tends to provide security to employees as well as it also improve the
standard of workforce. In the Asian countries many acts related to factory, gratuity, bonus,
ESIC, workmen compensation, maternity, child labour , contract labour, trade union and many
other are followed in the schedule employments.
G. Use corporate example of firm using good HR practices and literature to justify your stand ?
According to Jane Courtnell, 2019 , HR are leads to control and management all the
activities effective with great perfection. As employees are the precious asset for any business as
with the suppose of them only it become possible for organisation to achieve the objectives as

well as to gain competitive advantage. There fore it is important to retain their experienced and
skilled employees for long term. For that motivation are provided to employees by HR so that
mission and vision are clear to them and they can easily achieve them on time with great
perfection. Overall business functions are segmented by HR like For proactive planning strategic
management are adopted so that they become capable to satisfy future requirement. The
employment as well as workforce planning are tends to be manage as in it various functions
related to selection, recruitment, orientation are leads to be control with great suitability. On the
basis of productivity and performance rewards are given to employees by HR which tends to
improve motivation level of them. The relationship between staff are control and manage so that
to gain productive outcomes, for this various strategies are prepare By HR team of Zara but on
the basis of demand these are developed through which effective working condition is promoted.
For appropriate management , risk tends to be control and manage so the profitability tends to be
controlled most successfully. As Zara operate their business in different Asian country and in
UK so there is need to perform, some supplementary alteration so their staff feel comfortable to
work and positive working environment are leads to be promoted. By solving the problems of
employees and by giving as well as managing the security control are done. By circulating
important information among workforce they tends to create clarity to employees so that they
properly known in advance what they have to conceive to perform the task (Stewart, 2019)
H. Give Recommendation to employer in context to HRM practices so that to ensure that
performance of company is high?
Few recommendations are tends to be explain as follows -
 The higher performance are controlled by HR to bring consistency so it helps to attain
profitable competitive advantage. In this knowledge as well as skills of employees are
tends to be increase through which motivation is promoted in most suitable and effective
manner. As better alternative are tends to be provide so that to attain flexibility with in
the business practices.
 In working prospect , employer tends to create efficiency as it also involve substantial
investment to increase employee capital. Balance decision making are also taken by HR
which leads to bring security among employee involvement. As workforce of Zara adopt
every changes and increase their accessibility to gain maximum profit (Williams, 2019)

CONCLUSION
On the basis of deep discussion it is conclude that HRM plays most significant role in
business as effective working can become possible with the implementation of these HRM
practices. Various HR strategies are leads to control strategic approach with the help of these
moderate changes are tends to be implemented in operations of business. It puts better affect on
both national and regional culture. Also it tends to be considered most at the time of making
comparison between HRM and personal management. Additionally laws related to employment
are also consider at the time of making control over international and local business. It provide
surety to business that their performance are tends to be increase.

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