Strategic HRM Report: Analyzing Primark's Employee Relations Issues

This report provides an executive summary and an in-depth analysis of Primark's strategic human resource management (SHRM). It examines the company's background, client profile, organizational structure, and key competitors within the fashion retail industry. The report identifies critical HR issues, particularly those related to employee-employer relations, including discrimination, partiality, and a lack of employee involvement in decision-making. It employs a methodology to address these issues and presents key findings that highlight the negative impact of poor employee relations on productivity and profitability. The report concludes with recommendations for Primark to improve employee engagement, foster a more transparent and equitable work environment, and encourage employee participation in decision-making processes to enhance overall organizational performance and achieve long-term business objectives. The report emphasizes the importance of SHRM in achieving business goals and the need for Primark to prioritize employee well-being and satisfaction.

Strategic HRM

EXECUTIVE SUMMARY
Strategic human resource management is the process of acquiring, training, appraising,
compensating employees and of attending their labour relation in order to accomplish long term
business objectives effectively and efficiently. So, it plays a crucial role in increasing high
productivity and profitability. Here in this report, it assessing the profile of company and its HR
issues which creates hamper the employee relation within workplace.

INTRODUCTION
Strategic HRM is a linking of human resource with strategic goals and objectives in order
to improve business performance and develop organisational culture that foster, flexibility and
competitive advantage (Katyal and Xaviour, 2015). In context to Primark, one of the famous
fashion retailer which is established in the year of 1969 and it is headquartered in Dublin,
Ireland. Primark face an issue of employee- employer relation which has great impact on its
profitability. This report covers overview of company, key HR issues of company and
recommend the solutions to overcome issues.
Background
In an organisation employee engagement is very beneficial to workplace in order to boost
productivity and enhance company culture. Today one of the biggest challenge within company
is employee relations with their employer which effect in accomplishing organisational goal. For
attaining the same, a better relationship between employee and employer is required which
enrich the satisfaction and there will less disputes within an organisation. Apart from this, it
reduces employee turnover and encourage the employees to put their full effort towards the pre
determined goal (Kaufman, 2015). In relation to Primark, employees faces discrimination in
providing opportunities and showing partiality in resolving decision making. This issue creates
various problems like conflict, dissatisfaction, employee turnover among employees which
hamper the work cycle of company.
Client Profile
Primark is an Irish clothing retailer which operates in Austria, Belgium, Germany, UK,
Ireland, Spain. Its main headquartered in Dublin, and it is commenced in the year of 1969 by
Arthur Ryan. Primark provides varies ranges of products in clothing for kids, women & men ,
home ware accessories, beauty products and confectionery which operates 350 stores in eleven
countries yet it mainly recognised by clothing services. Toady fashion and clothing became the
main trend in lifestyle of people which encouraged Primark to operate in this service and they
identified an enormous opportunity in expansion of company. It has a drive to enforce style,
price, quality which attracts more customers and enhance its productivity. Their main objective
is retrieves to always be the firs choice of consumer and make sure that they do not opt for
competitors product.

The Firm Today
The structure of an organisation is determine the manner in which it operates and its
performance , it allows the responsibilities for different functions and processes to be clearly
allocated to different departments and employees. In case of Primark, it follows tall structure i.e.
an organisation break down in well-defined hierarchy as they will have number of managers who
will be responsible for managing or controlling a portion of the organisation (Mishra, Boynton
and Mishra, 2014). This effective structure enable Primark to maintain a strong chain of
command from the top level to all the way down of the employees. In this employees under top
level of management understand or identify their roles and responsibility which increase their
productivity and profitability. Primark continued to be power sales and profits at fast fashion
chain which enlarge its profitability effectively. Moreover, its financial status among competitor
is strong and stable which enable them to expand their business across the globe efficiently.
The Competitor
In the current scenario, clothing industry is one of the booming and it contains huge
competitions among others competitors which involve trend, fashion, lifestyle etc. Succeeding in
fashion takes a lot of more than passion and creative, for Primark it mainly concerned with the
trend and be the first choice among customers (Zikic, 2015). Primark has three main competitors
are Zara, H&M, Mark & Spencer. Recently Zara and H&M introduced home décor products in
US which challenged Primark profitability as they provide their products in fair and affordable
price. It create lots of choices and confusions among customers regarding products which effect
its volume of sales and growth. But Primark maintained its competition and brand image as it
challenged Next Plc to become the UK second largest biggest clothing retailer. They offer low
price aviator jacket , children clothing and new make-up accessories which help them to
overcome their loss and an outstanding performer among rivalry (Stokes and et. al., 2016). In
UK stores its sales raise by 4% by keeping its price steady which challenged its competitors and
it creates opposition among competitors. However, Primark is flexible in nature as they always
seek for an opportunity to grow and enlarge its business operation at global level.
HR issues
One of the main challenge of Primark is employee – employer relation which hamper
them in accomplishing their organisational goal effectively and efficiently. Most of the
employees feels that their manager is being bias to them in recognising their effort, decisions

making, problem solving. They never ask their opinion or views in implementing a policies
within workplace and not provide proper information which increases dissatisfaction and
demotivate them to contribute towards pre determined goal (Tansel and Gazîoğlu, 2014).
Moreover, company is lacking in providing equal opportunities to subordinates which effect their
morale and company proficiency.
Methodology
In order to tackle with this issue Primark can be transparent in exchanging information
and take fair decision without harming employees morale and culture. While handling or
resolving business issues company should encourage employees to give their valuable opinion
which enable them to enrich its productivity and can gain competitive advantage. Therefore, they
motivates employees and identify their potentiality or shortcomings in order to increase
productivity and profit as well.
Key Findings
Every employees is an biggest assets for the growth of company and in attaining profit
maximisation effectively. On of the main findings from the HR issue is that employer employee
relationship is not so Healthy which effect business profitability (Townsend, Wilkinson and
Burgess, 2014). Thus, Primark can adapt sensible solution is that they involve their subordinates
in major business decisions and recognise their effort. By this employees feel encouraged and
put their full effort towards the attainment of pre determined goal.
Conclusions and Recommendation
From the above mentioned report it has been concluded that strategic human resources
management plays a vital role in the accomplishing long-term objectives. Instead of focusing on
internal human resource issues, the focus is on addressing and solving problems that effect
people management programmes in the long run and often globally. However, employees are the
main component for which company has to motivate and maintain better relationship between
them.
From the above discussed report it has been recommended that company must identify
the potentiality and interest of employees as well as boost them to contribute their best towards
the organisation long term objectives. Moreover, they should involve subordinates in problem
solving and decision making process which improves their morale and provide satisfaction.