Managing People: Hennes & Mauritz

Running head: MANAGING PEOPLE
Managing People: Hennes & Mauritz
Name of the Student
Name of the University
Author’s Note:

1
MANAGING PEOPLE
Table of Contents
1. Introduction............................................................................................................................2
2. Purpose of the Report.............................................................................................................3
3. Discussion..............................................................................................................................3
A) Evaluation, Selection and Application of Relevant Theories and Models for H&M.......3
Job Ability..........................................................................................................................4
Motivation..........................................................................................................................6
Reward Systems.................................................................................................................8
Relevant Employment Relations and Health and Safety Legislations...............................9
B) Demonstration and Application of Specialist Knowledge of Performance Management
Models in H&M...................................................................................................................10
Development Component.................................................................................................11
Appraisal Component.......................................................................................................12
Discipline Component......................................................................................................12
Relevant Employment Relation and Health and Safety Legislations..............................13
4. Findings................................................................................................................................13
5. Recommendations................................................................................................................15
6. Conclusion............................................................................................................................15
References................................................................................................................................17

2
MANAGING PEOPLE
1. Introduction
HRM or human resource management is one of the most important strategic approach
to an effective people management within any organization, for the purpose of helping the
business to obtain several competitive advantages (Bratton & Gold, 2017). The employee
performance is maximized with the help of human resource management for fulfilling the
strategic objectives of an employer. The human resources majorly concerns with the people
management in companies after subsequently focusing on the systems and policies. This
human resource department is solely responsible to oversee the employee recruitment,
performance appraisal, employee benefits design, rewarding and training as well as
development. The organizational change or industrial relations are managed with this type of
management and hence the various organizational practices are being balanced with every
requirement that is arising from respective governmental laws and collective bargaining
(Brewster & Hegewisch, 2017). The major purpose of the human resource management is
ensuring that the specific organization has the core capability of achieving success through
people.
Reward programs, performance evaluations and training programs are the core
methodologies of training in the company. When the policies are broken like discriminations
or harassments, the human resource management deals with employee relations. The labour
relations representatives work with these professionals of human resources for fulfilling their
demands and requirements (Bailey et al., 2018). The business values are easily created with
the help of this strategic management in the company. The several transactional works like
benefit administration and payroll are considered by human resource management. Moreover,
the succession planning, mergers as well as acquisitions, inclusion, diversity, labour relations
and industrial relations are checked with such management.
H&M or Hennes & Mauritz is a Swedish multinational clothing retail organization
that has become popular for their fast fashion clothing for children, teenagers, men and
women. This organization as well as its associated companies are eventually operating in 64
countries (Annual Report. 2016). The total number of stores of this particular company of
H&M is more than 4351 and as per the annual report of 2016, the total number of employees
is over 161000 people. H&M is considered as the second largest retailer of global clothing
after Zara. Another important and significant feature of this particular organization is that
they have provided features of online shopping to their customers in almost 35 countries. The

3
MANAGING PEOPLE
major factor for success of Hennes & Mauritz organization is that they have followed
subsequent strategies of human resource management (Sustainability Report. 2016). This
report will be providing a brief overview of the entire HR strategies after proper application
and evaluation of suitable models and theories of human resources that could be related to job
ability, motivation, health and safety legislations and rewards systems of the employees. The
performance management models are also included here with appraisal, development and
disciplinary components.
2. Purpose of the Report
The aims or objectives of this report for Hennes & Mauritz organizational case study
are as follows:
i) To understand the case study of H&M with having a clear overview of the
corporate governance report, annual report and sustainability report for the year of 2016.
ii) To evaluate, select as well as apply suitable models and theories of HRM relating
to reward systems, motivation and job ability within diversified range of business settings in
H&M.
iii) To demonstrate and apply proper understanding of performance management
models like development, appraisal as well as disciplinary components for H&M.
iv) To demonstrate and apply proper understanding of suitable legislations related to
health, safety and employee relation in H&M.
3. Discussion
A) Evaluation, Selection and Application of Relevant Theories and Models for H&M
Hennes & Mauritz, being one of the most popular and significant organization in
respect to the perspective of strategic human resource management. The major strategy of
this particular organization of H&M is to offer quality and fashion at the best price
(Corporate Governance Report. 2016). As per the annual report of this company, they mainly
emphasizes on the quality of the products. They have involved digital presence in their
business for having a significant globalized store network. They are being driven by the
desire to create the products for their customers in a sustainable method. The sales of this
company has raised eventually and they are using more sustainable cotton. In the year 2012,
the use of sustainable cotton was only 13%; however, in 2016, it has raised to 43% (Annual
Report. 2016). For the maintenance of sustainability in everything, they wanted to contribute

4
MANAGING PEOPLE
positive development within the society. As per their annual report of 2016, 86% of the total
electricity of their organization is renewable. Being the largest users of organic cotton, lyocell
and recycled polyester, H&M has become extremely popular and important in the fashion
industry.
Job Ability
Job ability can be defined as the natural or acquired talent or capacity, which enables
any person to perform a specific task or job successfully. This type of ability is highly
required for fulfilling the KRA or key responsibilities area for any job. The job abilities are
used for determining, who is eligible for applying to the job position. Hennes & Mauritz
thinks that success and changes could be brought by the employees and hence they term these
employees as change makers. This specific organization wants to be 100% fair and equal to
their employees and this is done by providing jobs to the individuals. H&M has provided
scope to their employees (Chelladurai & Kerwin, 2017). As per the sustainability report 2016
of this company, more than 161000 people are working in the stores of 64 countries. The
employees get a major motivation if they get the chance of working in an environment, where
they get values for their work.
The employees should eventually comprise of the few of specified abilities that are
required to perform the tasks that are being given to them (Bounfour, 2015). Hennes &
Mauritz has substantially checked for 10 important facets for producing job ability for their
employees and staffs, which are communication, decision making, creativity, team work,
adaptability, leadership, conflict resolution, ability to work under pressure and time
management. Moreover, as per H&M, job ability involves the major skills that the employee
consists of (Alfes et al., 2013). There could be several issues related to job ability; however
most of the key factors like stress and pressure are checked by the human resource
department of this organization.
The fair jobs of this organization are majorly linked to the human rights of the
workers. As per their sustainability report 2016, the organization’s single greatest opportunity
for contributing to the people part of the sustainable development, eventually lies in the
advancement of respect for the human rights of communities and workers affected by the
business. They want to make their workers satisfied with their work by providing them equal
rights and rewards (Budhwar & Debrah, 2013). Moreover, they identify the abilities of their
employees by proper screening, training and development. The suitable models and theories

5
MANAGING PEOPLE
of human resources management for analysing the major abilities of the employees in Hennes
& Mauritz are as follows:
i) Parsons Theory: The first and the foremost theory that is suitable for the case study
of Hennes & Mauritz to analyse the ability of job of their employees is Parson’s theory. As
per this theory, the structural and voluntaristic aspects of micro and macro factors help in
maintaining positivism within employees. Parson states that the occupational decision
making could only occur when these employees have eventually achieved the accurate
understanding of several individual traits like personal abilities and interests and even the
knowledge of jobs as well as labour markets (Renwick, Redman & Maguire, 2013).
Moreover, the employees should also have achieved objective and rational judgment
regarding the proper connection within labour market and individual traits. This Parson’s
theory also states that self-analysis is required for understanding the job ability properly. For
this organization of H&M, the self-analysis and structural or voluntaristic aspects of micro
and macro factors would be extremely helpful for them to identify the job abilities of their
employees.
ii) Dispositional Approach: The second approach or model of Hennes & Mauritz is
dispositional approach. It solely suggests that the individuals subsequently vary in the
significant tendency that is to be satisfied with the jobs and job satisfaction to some extent of
the individual traits (Brewster, Chung & Sparrow, 2016). Self-efficacy and self-esteem of the
individuals are determined by the disposition for job satisfaction.
iii) Performance Measurement Theory: Another important and significant theory of
human resource management that is extremely effective for the proper analysis of job
abilities in H&M is the respective performance measurement theory. As per this theory, the
performance of the existing employees could be measured by simply collecting, analysing
and then reporting to the organizational management (Marchington et al., 2016). The HR
department of the respective company is responsible for this type of measurement with the
help of few tools and techniques.
iv) Equity Theory: The next significant and noteworthy theory of human resource
management for analysing job ability and satisfaction for the employees of H&M is equity
theory. This particular theory shows that how any person is viewing fairness in respect to the
social relationships with the employer. The employee recognizes the amount of inputs from
any relationship that is being compared to the outputs for producing the distinct ratio of input