HRM for Competitive Advantage: A Study of Harrods

The case study highlights the issue of high employee turnover at Harrods, where employees are leaving the firm within a year. To address this issue, it is suggested that Maslow's theory of motivation be adopted, providing both monetary and non-monetary benefits to employees. The organization should also ensure that employee needs are fulfilled at every stage to increase commitment. Additionally, the importance of upward communication structure in Harrods is emphasized, as it assists employees in understanding their roles and responsibilities.

MANAGING HUMAN RESOURCES

TABLE OF CONTENTS
Introduction..........................................................................................................................................4
Task 1 Understand the different perspectives of human resource management...................................4
1.1 Guest model of HRM.................................................................................................................4
1.2 Compare the different between storey’s definition of HRM, Personnel and IR practices in
context to the given case..................................................................................................................5
1.3 Implications for line managers as well as employees for developing strategic approach in
Harrods.............................................................................................................................................5
Task 2 Understand ways to develop flexibility within workplace........................................................6
2.1 Explain how model of flexibility can be applied in practice.....................................................6
2.2 Various types of flexibility which can be adopted by business enterprise.................................6
2.3 Asses the use of flexible working practices from the point of view of employee and employer
in the perspective of business enterprise..........................................................................................7
2.4 Discuss the impact of change in labor market that had on flexible working practices at
business enterprise...........................................................................................................................7
Task 3 Understand the impact of opportunities within the workplace ................................................8
3.1 Explain the forms of discrimination that can be take place in the workplace...........................8
3.2 Discuss the practical implications of equal opportunities legislation practiced in Harrods......8
3.3 Compare the approaches which are adopted for managing equal opportunities and managing
diversity...........................................................................................................................................9
Task 4 Understand the approaches to human resource management for Harrods ...............................9
4.1 Compare and comment on different methods of performance management adopted by
organization......................................................................................................................................9
4.2 Assess the approaches to the practice of managing employee welfare in Harrods..................10
4.3 Discuss the implications of health and safety legislation on human resource practice...........10
4.4 Evaluate the impact of issues related to human resource practices reflected in the present case
study and additional research.........................................................................................................11
Conclusion .........................................................................................................................................11
References .........................................................................................................................................12

ILLUSTRATION INDEX

INTRODUCTION
Managing human resource in an organization is a critical task as it aids in comprehending
different aspects related to existing workforces. HRM policies and strategies aids the organization
to get the contribution of employees in different work processes and along with that, it also
increases organizational productivity (Ristow and et.al., 2009). The present research study has been
made on Harrods which is one of the renowned retail organizations in London. The retail store has
employed more than 5000 employees from different countries which helps the organization to
deliver prominent services to the customers. Harrods has been finding employees who have the
potential to augment success aspects of the business and who can bring long term sustainability
respectively. The subsequent study has been showcasing different perspective of human resource
management along with the difference between traditional HRM and Personnel management. It has
been observed that HRM is useful concept since it adds value to the business and afterwards it aids
in achieving the strategic goals of Harrods.
TASK 1 UNDERSTAND THE DIFFERENT PERSPECTIVES OF HUMAN RESOURCE
MANAGEMENT
1.1 Guest model of HRM
The main facet lies under Guest model specifies that HRM of an organization is accountable
to manage all types of facets. The model also showcases vast difference between traditional
approach of HRM and personnel management. As per the model, Harrods develops suitable policies
and strategies for the employees so that they can be involved in all processes of the firm (Regis,
2008). It has also been observed that in terms of outcomes, Guest model assists the subsequent
business entity to enhance the opportunities of growth and success by acquiring greater
commitment from workforce. The model represents the value of personnel management in an
organization by highlighting its purpose and success facets.
The model also aids in managing the value of financial dimensions by retaining the
workforce from indifferent strategies. According to the case study, it is being explored that
performance of business is hampered due to financial and cost aspects and along with that, it has a
significant impact on turnover (Haines and Bandt, 2002). At Harrods, employees are leaving the job
roles even after completing one year period. Execution of Guest model aids in mapping out the
activities which further helps in deriving appropriate outcomes for the business entity. However, on
the other hand the model does not focuses on people management since it is a challenging aspect.

1.2 Compare the different between storey’s definition of HRM, Personnel and IR practices in
context to the given case
According to Storey, HRM can be defined as the strategic and coherent approach to the
management of an organization’s most valued assets i.e., are human being working within the firm
who are individually and collectively contributing towards the achievement of company’s corporate
objectives. While on the other hand, author sees personnel management as the management of the
workforce or employees to comply with different rules and regulations as required by the owners of
the business. However, personal management is more concerned towards the recruitment process,
pay rolls and employment laws (Fleetwood and Hesketh, 2010). According to Storey, it is important
for the companies to follow or abide the industrial relations practices so that relationship between
human resource and management can maintained as well as developed strong for the better
execution of business activities.
There exists range of differences between personnel management and HRM where in human
resource management assists in managing human capacity and commitment through emphasizing
on all practices of organization. Personnel management chiefly focuses on developing better
industrial relations for the purpose of enhancing the opportunities of growth and success at higher
extent (Fauske and Raybould, 2005). It has been observed that Harrods is emphasized towards
HRM practices where NHS is focused towards the concept of personnel management.
Furthermore, considering the same aspect, John Storey has defined that HRM includes set of
interrelated policies with an ideological and philosophical viewpoint which underpins the practices
of management and this concept has been followed at Harrods. The other important framework of
HRM is “Harvard Framework” which is based on the belief that the problems of historical
personnel management can be solved if proper directions have been determined by the
management of Harrods to all the employees (Fox, 2008). As per the views of Boxall, the model is
important because it incorporates recognition of a range of stakeholder interests and along with the
same, it is also vital since it widens the context of HRM to include employee influence and
according to that Harrods can integrate the practices with different supervisory style.
The model highlights the perspective of human capital which consists of numerous people
who work for organization's success. Hence, according to the model, human resources are regarded
as the prime asset of Harrods and the business is required to invest in that asset so as to ensure their
survival and growth (Freeman and Ceriello, 2011). Knowledge management, reward management
and employee relation management are the major dimensions that lie under this framework and all
such aspects aims to enhance motivation, job engagement and commitment by introducing policies
and processes which ensures that people of Harrods are valued and rewarded for what they at all the

organizational levels.
1.3 Implications for line managers as well as employees for developing strategic approach in
Harrods
Human Resource Strategies of Harrods are the integrated version of all developed strategies
which are also executed in the business entity. In order to implement HR strategies, Harrods is no
longer required to develop clear directions as HR strategies are executed in the business for varied
purposes.
 Adopting strategic approach for HRM leads the line managers to identify different terms and
modes through which personnels can be encouraged to produce better outcomes (Managing
employment relations, n.d).
 The approach also aids line managers to derive support from all the employees in all actions
which further results in involving them all in processes of the business. Line managers are
also required to communicate directly with the employees for the purpose of acquiring their
contribution in decision making processes.
 Strategic goals of Harrods should be accurately communicated within the line managers so
that they can delegate duties and authorities to the employees in proper manner (DeSimone
and Werner, 2009). From the case analysis, it has been observed that the dimensions of
HRM helps the line managers to augment the performance standards; however this is not
suffice for acquiring competitive advantage.
 Hence, from the discussion it is clear that line managers are accountable to execute HR
strategies in the business actions; however most of the line managers of Harrods find it
difficult to practice HRM. This has a great impact on efficiency of such managers.
TASK 2 UNDERSTAND WAYS TO DEVELOP FLEXIBILITY WITHIN WORKPLACE
2.1 Explain how model of flexibility can be applied in practice
In service industry, employees have the authority to demand for flexibility at workplace if
they have completed more than 25 weeks of service. Employees who have the idea of their rights
and obligations can demand for alteration in working hours, job roles and place of work. Employers
of Harrods are allowed to facilitate changes in the work patterns once in a year and afterwards
accepting the change, employers can alter specified terms and conditions of employment (Chuang,
Church and Zikic, 004). Only employee of Harrods has the right to demand for flexibility at
workplace.
For instance – an employee of Harrods can claim for flexibility if in case he is unable to
manage work life balance. Here, a model of flexibility has been stated which Harrods could execute
in the business actions. Shamrock organization model of flexibility can be adopted where in

employees of Harrods should be considered the only sources that facilitate changes. The model
basically works on three diverse facets where by the first leaflet represents the core staff members
of Harrods. They are highly trained since they have to manage crucial business processes
(Brockbank and Ulrich, 2005). The second leaf consists of contractual fringe who supply services to
the business. They add value to the business by providing appropriate amount of resources to
Harrods. The third leaflet is comprised of professional and experienced employees who shows
greater commitment to the business by maintaining standard performance. They are more loyal to
the business and are involved in every organizational processes.
2.2 Various types of flexibility which can be adopted by business enterprise Functional approach: The approach helps the employees to change their roles and
responsibilities; however for that they need to develop multiple skills. The standard form of
employment is different since this is designed to improve efficiency and it also aids Harrods
to reduce operational costs. This is a core area of traditional conflict because that involves
division of skilled labor and non skilled labor (Bridle, 2010). Hence, this refers to a firm's
ability to adjust and deploy the skills of its employees to match competitive scenario. Numerical approach: This refers to Harrod's ability in terms of adjusting the level of labor
inputs to meet fluctuations in outputs. In this phase, part time and temporary workers are
required who can perform different work processes of Harrods. The main purpose of
adopting such flexibility is to increases the mixture of non standard employment forms in
cheaper and efficient manner. Core permanent workforce and peripheral non permanent
employees are different to each other and both are employed for diversified purposes.
 Financial approach: This refers to the achievement of flexibility through the pay and
reward structure. Hence, in order to adopt the subsequent flexibility aspect, it is vital for
Harrods to recruit people as per the availability of supply and demand facets (Boxhall and
Purcell, 2008).
2.3 Asses the use of flexible working practices from the point of view of employee and employer in
the perspective of business enterprise
A range of benefits can be acquired by adopting the model of flexibility at Harrods as that
not only saves time but also it saves cost which increases resource capability of the business entity.
With the help of flexible work practices, tasks and projects can be completed within appropriate
time limit and alongside that also increases quality of work processes (Managing people for
success, 2000). Flexible work practices can help the firm to acquire success only when they are
executed in adequate way. For that right sort of strategies should be used both by the employer and
employee. From the case study, it is analyzed that Harrods has provided authority to the employees

where in they can change their roles and responsibilities and they can also switch to different
practices which subsequently matches their skills and abilities. Such efforts towards flexibility
assists Harrods to derive employee support and appreciation at different stages of business
management. Having flexible working hours increases the interest and faith of employees towards
the business and this also aids them to develop different skills as per the job roles.
2.4 Discuss the impact of change in labor market that had on flexible working practices at business
enterprise
Harrods and its work practices are highly affected from the changes in labor market as that
generates range of other employment opportunities for workforce of Harrods. Labor market keeps
on changing frequently and due to that, human resource strategies of Harrods also changes. While
developing human resource policies, Harrods needs to consider aspects of labor market since that
could only balance supply and demand. Huge demand in labor market for the employees increases
the requirement of flexibility at Harrods so as to meet the needs of customers. Thus, it can be said
that changes in labor market affects supply and demand aspects and as a result, that directly changes
the ratio of employee attrition at Harrods (Bohlander and Snell, 2012). It is requisite for Harrods to
satiate all the employees so that while appearing any changes in labor market, employees of
Harrods may not switch to other organizations. And this is possible apparently through adopting
flexible work practices. In respect for such concerns, Harrods have paid more concern towards
employee engagement which also improves organizational environment. Besides that, the
subsequent business entity has developed better relations with the employees.
TASK 3 UNDERSTAND THE IMPACT OF OPPORTUNITIES WITHIN THE WORKPLACE
3.1 Explain the forms of discrimination that can be take place in the workplace
Discrimination can take place in any of the form where in cultural, social and religious
discrimination prevails the most. Employees of Harrods do not have any issues related to
discrimination because the management considers equality and diversity aspects on higher grounds.
These are the basic forms of employee discrimination: Direct discrimination: In this form of discrimination, employers gives special preference to
similar background employee. Here in this case, discrimination also prevails where in
handicapped and disable employees are not provided with any rights and duties
(Bhattacharyya, 2009). Employees are also discriminated on the basis of skills and other
capabilities.
 Social abuse and harassment: Social harassment is a kind of exploitation in which people
are discriminated on the basis of religion, caste, race and minority. Such type of
discrimination also prevails in organizations which greatly impacts the mindset and

mentality of employees.
Summing up the discussion, it can be stated that discriminating employees on any ground
also disrespects rights of employees and that further affects effectiveness of organization. Harrods
in such respect has been contributing to equality and diversity management where in all the
employees are provided equal opportunities (Benevene, 2010).
3.2 Discuss the practical implications of equal opportunities legislation practiced in Harrods
Harrods has been managing legal practices in all business actions where in the major focus
should be given on equal opportunities to the employees so that the value of organization can be
augmented. There are certain acts that have been maintained at Harrods in response to equal
opportunities for the employees:
 Sex Discrimination Act 1975: As per the subsequent act, Harrods and the managers are not
allowed to discriminate the employees on the basis of race, gender and marital status. Equal
roles and responsibilities should be provided to all the employees (HR Policies &
Employment Legislation, n.d).
 Race Relation Act 1976: Furthermore, employees should not be exploited through race,
color, nationality and ethnic groups. Application of the act says that it is the duty of public
authority to undertake positive actions so as to promote good industrial relations.
 Disability Discrimination Act 2003: Employees who are disable and handicapped should
also be provided same authorities so as to spread a sense of responsiveness.
 Equal Pay Act 1970: There should be equal and adequate pay for both male and female as
per the work done by them (Barbeito, 2004).
3.3 Compare the approaches which are adopted for managing equal opportunities and managing
diversity
The above mentioned section of the research has specified the approaches that have been
taken at Harrods for the purpose of managing equality and diversity management. At the same
time, the employees are provided with equal rights and responsibilities which helps Harrods to
undertake better decisions for the business. The organization is fair enough in managing all the
practices where the leaders are authorized to involve all the groups for developing better
coordination level (Armstrong and Taylor, 2014). Managing equality and diversity ensures Harrods
to protect the employees from exploitation and discrimination and this also assists the business
entity to facilitate innovation and creativity in business. Therefore, for such aspect, line managers
are required to engage all the employees in organization's processes. On the contrary, employees of

Harrods are provided with rewards and monetary benefits which encourages their morale and as a
result, helps the subsequent organization to get employee contribution in growth and success.
Hence, application of all such aspects aids in augmenting the value of employment practices at
Harrods.
TASK 4 UNDERSTAND THE APPROACHES TO HUMAN RESOURCE MANAGEMENT FOR
HARRODS
4.1 Compare and comment on different methods of performance management adopted by
organization
Performance management system is a practice that is undertaken at Harrods for the motive
of identifying the level of effectiveness among employee performance. There are number of tools
that could be executed at Harrods to improve the performance of business consistently. The
performance management system of Harrods measures different aspects in employee performance
so as to find out the best talent among all the workforces. In such context, peer advice is taken into
account where in leaders and supervisors are also authorized to present their views in performance
management process (Dhar, 2008). Employee whose performance reaches to extra ordinary scale
get the highest reward and pay. This is yet another source of motivation for them and employee
even gives the best in goal achievement process. Harrods has a proper performance appraisal
system where in performance of employees are analyzed on yearly basis and afterwards, they get
recognition from the top executives. Similarly, the level of learning is also measured while
evaluating the efficacy of performance. They are also rewarded on the basis of their contribution in
goal achievement process.
4.2 Assess the approaches to the practice of managing employee welfare in Harrods
Harrods has been managing the concept of employee welfare where in all the workforce are
provided with proper remuneration as per the work done by them. At all stages, Harrods ensure that
there is no discrimination among employees. Employee welfare scheme is the top priority of
Harrods where in the mentioned aspects are considered respectively:
 Availability of health, safety and security measures (Ristow and et.al., 2009)
 Proper food amenities (including canteens, cafeteria and drinking water)
 The employer make sure that the premises is clean and clear so that it may not hamper the
health of any employee.
 On the other hand, flexible timings are arranged for the employees where in workforce can
make their own schedules as per the job roles.
 Employee harassment policy is also formulated at Harrods which protects the rights and

obligations of employees.
 Females are provided with maternity leave benefits which they can avail in particular
circumstances (Bhattacharyya, 2009).
4.3 Discuss the implications of health and safety legislation on human resource practice
At Harrods, employers have given major concern towards health and safety aspects of the
employees so that they can work in an environment which is healthy and suitable for them. This
also avoids the chances of accidents and mis happenings. From organizational analysis, it has been
observed that Harrods has maintained “Food Safety Team” where in the quality of food (which is
served to the employees) is reviewed twice so that they can be protected from all sorts of harms and
hazards (Regis, 2008). The firm never compromises with the health of employees as they are the
only source that manages entire business functions. Accident and Emergency services are also
arranged for the employees in the same way.
4.4 Evaluate the impact of issues related to human resource practices reflected in the present case
study and additional research
The issue related to employee turnover has been increasing at Harrods where in employees
are leaving the firm within a year; thus for such aspect, it is vital for Harrods to undertake
appropriate action. Employees are engaged in all processes at higher extent which maximizes the
encouragement level and up to some extent, it results in achievement of goals and objectives.
Upward communication structure has been followed at Harrods and this assists the employees to get
adequate idea about their roles and responsibilities (Fauske, and Raybould, 2005). Thus, as per the
prevailing issue, Maslow’s theory of Motivation can be adopted where in employees should be
provided with monetary and non monetary both the benefits. At every stage, employee needs should
be fulfilled so that they can show greater commitment to Harrods.
CONCLUSION
Concluding the above research study, it can be articulated that every organization faces a
number of issues related to human resource management due to involvement of different aspects in
the concept. The government of UK has developed several policies and regulations for protecting
the interest of employees in business entities. Summing up the dimensions of HRM, it can be stated
that it aids all the employees of Harrods to participate in all processes which increases the degree of
employee involvement. At the same time, employees are also allowed to claim for their rights and
responsibilities related to health safety and other facets.

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