Evaluation of Performance Management Theories and Models in H&M

Running head: EXECUTIVE REPORT
Executive Report
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1EXECUTIVE REPORT
Introduction
Established in the year 1947, Hennes and Mauritz is a Swedish company often
abbreviated as H&M. The retail company offers fashion as well as quality at the best price for
men, women, children and teenagers. In addition to this, the company has its own brand
accessories, footwear and cosmetics (About.hm.com, 2018). The purpose of this report is to
evaluate, select and apply relevant theories as well as models related to the diverse range of
business settings in H&M. It throws light on the increase in job ability of the company, which
will help in maximizing employee motivation. In addition to this, it also highlights the
performance management models, appraisal component and other factors in order to establish
the findings.
Findings
According to the annual report of the company, it can be stated that H&M is a flat
organization. However, the organization is evolving constantly and growing fast. This helps
in providing more and more opportunities to the existing employees. The employees are
mainly motivated by providing with new challenges in different departments, roles or
transferring them to another country. In addition to this, the company can adopt certain
performance management theories as well as models in order to increase their job abilities,
motivation, reward systems and employee retention and health safety legislations
(About.hm.com, 2018).
The company can adopt the job design theory which is the core function of the
human resource management. It is related to specification of the methods, relationship of jobs
and contents for satisfying the organizational as well as technological requirements, personal
and social requirements of the job. The job characteristics model is considered to the most

2EXECUTIVE REPORT
influential attempts of designing the jobs along with increased motivational properties. This
model was coined by Hackman and Oldham, who describes the five core dimensions of the
job leading to some critical psychological states. It results into job related outcomes
(Armstrong & Taylor, 2014).
The core characteristics of the job design theory are enhancing skills, task identity,
task significance, autonomy and feedback. This in turn leads to the psychological states of
meaningfulness, responsibilities and knowledge of the results. The outcomes are employee
motivation, improved performances, job satisfaction, less absenteeism and more beneficial
outcomes. In addition to this, H&M can apply certain reward management theories that
encompasses the policy statement, payment policies, compensation and incentive policies and
others. The reinforcement and expectancy theory is based upon the assumption of the
employee and the way he/she is motivated to gain the desirable outcomes (Bratton & Gold,
2017).
The equity theory refers to the uniformity of the pay structure of the employees’
remuneration. However, these are the typical reward management theories, which the
human resource management of H&M Company should apply in order to motivate the
workers for giving their best (Van Dooren, Bouckaert & Halligan, 2015). The development
component, appraisal component and disciplinary component falls under the responsibility of
human resource managers, who should monitor the performances of the employees. In
addition to this, as per the corporate governance and sustainability report, it can be said that
the company has relevant employment retention and health safety legislations
(About.hm.com, 2018).
According to the policies of H&M, it can be stated that the company has a number of
policies for the welfare of the employees. Their animal welfare policy ensures that no