Analysis of HRM Functions and Strategies at Harrods Department Store

Desklib provides past papers and solved assignments for students. This report analyzes Harrods' HRM practices.

Human Resource Management
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Executive summary
Human resource management plays an essential role in an organisation because they recruit
employees for organizations. To gain more profound knowledge about HRM, the individual has
chosen an organisation known as Harrods. Initially, in the study, the company overview of the
organisation has been discussed. Further, the function of HRM has also been discussed. On the
contrary advantages and disadvantages of HRM, approaches have also been critically analyzed.
Additionally, the strength and weakness of HRM have also been presented in the study. Lastly,
employment legislation has also been put forward.
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Table of Contents
Introduction..................................................................................................................................4
LO1..............................................................................................................................................5
LO2..............................................................................................................................................7
LO3..............................................................................................................................................9
Conclusion.................................................................................................................................10
Reference List............................................................................................................................11
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Introduction
Human resource management is considered as the backbone of the organisations because they
recruit employees for them. In addition to that, they also train the employees so that their level of
skills can be enhanced. Presently the Human resource management of the organisations faces
challenges at the time of recruiting the employees due to intense market competition. Human
resource management provides incentives, increments and appraisals to the employees so that
they can get motivated. Generally, an organisation follows two types of recruitment procedures,
i.e. Internal and external recruitment. In the present study, the functions of Human resource
management have been discussed. In addition to that strategies and roles of HRM department
have also been considered here. Moreover, the effectiveness of HRM practices on an
organisation has also been critically analysed here. Thus, to explain the present role of HRM
Harrods has been selected.
Company overview
Harrods is considered one of the leading departmental stores of UK. The primary motive of the
organisation is to provide quality products to the customers so that the profit margin can get
enhanced. To expand the business activities of the organisation, the management has launched
330 departmental stores within the market of UK. The organisation provides quality and luxury
goods so that the profit margin can be increased. The Human resource management of the
organisation has recruited 12,000 employees (harrods.com, 2019). The mission of the
organisation is to produce quality and luxurious brand to the customers.
Moreover, this vision of the organisation is to communicate with the stakeholders so that a useful
relation can be maintained with them. In the financial year 2018, the organisation has earned
233.2 Million profit. Lastly, it has been noted that the main aim of Human resource management
of Harrods is to train the employees so that their level of skills can get enhanced.
Figure 1: Company Logo
(Source: harrods.com, 2019)
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LO1
1. Purpose and functions of HRM
As per the literary underpinnings of Daneshgari and Moore (2016), Human resource
management of the organisations looks after the demand and supply of workforce within an
organisation so that overall output of the organisation can be enhanced. The primary motive of
the HRM department is to select the right employees for the organisations so that its competitive
position can be enhanced. For instance, the purpose of HRM-related to Harrods is to train the
employees adequately so that their level of skills can be improved. Harrod has a unique learning
and talent team so that training can be provided as per the requirement of the employees. They
have recently launched a training school for the newly recruited employees. To increase the
profit rate of the organisation, the HRM department of Harrods divides the job responsibilities as
per the skills of the employees so that they can get motivated. The management of the
organisation conducts the practical test for the employees every week so that they can analyse
the effectiveness of the training sessions. The HR department of Harrods holds weekly induction
for new employees so that they can get accustomed to the working structure of the organisations
(harrods.com, 2019). The other functions of the Human resource department of an organisation
have been discussed below:
Training the employees
As per the viewpoint of Scott (2016), the human resource management needs to modify their
functions so that the employees can achieve the objectives of the organisations. The
administration needs to training the employees so that their knowledge can get enhanced. For
instance, the control of Harrods conducts coaching classes for the employees every week so that
the employees can understand the working pattern of the organisation. In addition to that
induction, classes have also been conducted by the employees so that they can follow their job
roles effectively.
Motivating the employees
As asserted by Scott (2016), Human resource management motivates the employees so that
employee retention rate can be increased. For instance, the control of Harrods has launched a
feedback system within the organisation so that issues of the employees can be timely addressed.
Feedback system has also strengthened the internal communication level within the organisation.
They have also launched medical insurance of the employees so that they can live a healthy life.
Based on the performance of the employees' management of Harrods also provide incentives and
appraisals to them so that they can get motivated.
2. Strength and weakness of different approaches of HRM
As per the comment of Katou (2015), the management of the organizations needs to select the
right talent so that the competitive advantage of the organisation can be enhanced in the market.
On the contrary, has mentioned that due to excessive competition in the market, the management
faces challenges to choose the right talent. The different approaches related to recruitment and
selection has been discussed below:
Job Description
As per the comment of Van (2016), the human resource management needs to explain the job
roles to the employees at the time of induction so that they can have a clear idea about the
working atmosphere of the organisation. At the time of installation, the management of the
organisation explains the job role to the employees so that they can get a clear idea about their
roles and functions within the organisation. As per the comment of Van (2016), the job
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description is beneficial for large organisations so that works can be done effectively. However,
in small companies job description is not valid because one employee is bound to perform
multiple activities
Job posting strategy
The management of the organisation posts the job vacancy on their website so that it reaches to
the targeted candidates. In addition to that, they also publish the jobs on social media platforms
like Facebook and Linkedin to get the right talent for the organisation. On the contrary job
posting strategy also enhances the recruitment cost of the organisation because the organisation
needs to invest significant capital while providing advertisement.
Multi recruitment process
As per the viewpoint of Bourke (2015), there are two types of recruitment process internal
recruitment and external recruitment. In internal recruitment, the existing employees get a chance
to get promoted to a higher position. On the other hand in external recruitment fresh talents get a
chance to get included within the organisation. Internal recruitment is beneficial for the
organisations because recruitment expenditure can be minimized. However, it limits the scope
for different recruitment. As per the comment of Van et al. (2016), externals recruitment is
beneficial for the organisations because fresh talents can be recruited. However, it increases the
overall expenditure of the organisation.
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LO2
1. Benefits of different HRM practices
Benefits of HRM practices have been discussed below:
The skill of the employees
As optioned by Bourke (2015), the capabilities of the employees can be enhanced if the
management of the organisations provides effective training to the employees. For instance, the
control of Harrods has launched a training school of the employees so that their efficiency level
can be enhanced. In addition to that coaching is also provided to the employees so that they can
understand their job role in an effective manner. In Harrods, jobs are assigned to the employees
as per their efficiency level so that the quality and quantity of output can be enhanced.
Employee retention rate
The management of Harrods generally recruits 5000 employees from 86 nationalities so that
diversity can be maintained. In addition to that, they provide incentives to the employees from
their performance. Further, it has been noted that special discounts are also offered to the
employees so that they can purchase products. The management also provides regular hike to the
employees to motivate them. Opportunities like sales bonus and team bonus are also offered to
the employees so that they are retained. The management of Harrods also provides 30 days leave
to the employees in a year so that they can maintain work-life balance. Further, it has been noted
that employee turnover rate has been reduced from 51.4% to 25% in the previous financial year
(harrods.com, 2019).
Figure 2: Employee turnover rate
(Source: harrods.com, 2019)
2. The effectiveness of different practices of HRM
As per the comment of Aklamanu et al. (2016), HRM practices include training the employees,
motivating the employees, retaining the employees and maintaining the discipline of the
organisation. Moreover, the management of the organisation needs to provide adequate training
to the employees so that the rate of profit margin can be enhanced. As per Hardy's Flexibility
model, the profitability of the organisation can be improved if all the employees are equally
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trained by the HRM Department (Bossle, 2016). Therefore, it is suggested that Harrods need to
provide equal training to the employees so that efficiency level among the employees can be
equalized. The model has also stated that the management of the organisations needs to divide
the job role as the efficiency level of the employees so that the competitive advantage of the
organisation can be improved. The model has also stated that to increase the profitability of the
organisation the management needs to create a flexible working environment (Alvehus et al.
2018). The administration can use Hardy's flexible model to increase the effectiveness of HRM
within the organisation.
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LO3
1. Analyze the importance of employee relations concerning influencing HRM decision-
making
As per the comment of Son (2018), employees need to be included at the time of taking decisions
so that they get motivated adequately. For instance, the management of concerned organisation
conducts group and individual meeting at regular intervals so that an effective relationship
between the administration and employees can be maintained. On the contrary, at times the
profitability of the organisation gets affected due to lack of knowledge among the employees. As
opined by Son (2018), the management of the need to include the employees in decision making
so that their importance level within the organisation can be enhanced. The command of the
organisation assigns teamwork to the employees so that interrelation between the employees can
be improved (Abdelnour, 2016). The employee retention rate of the concerned organisation has
been increased by 2% because the management includes the employees at the time of taking any
decision.
2. Identify the essential elements of employment legislation and the impact it has on HRM
decision-making
The law that affects the HRM decision making has been discussed below:
Minimum Wage Act
National Minimum Wage Act, 1998 has mentioned that all the employees of the organisations
may be treated adequately so that they can get motivated. The act has further said that hourly
wage of the employees depends upon the age and efficiency level of the employees. The
minimum wage for an apprentice under 19 years is 3.70 pounds. On the contrary, the employees
above 25 years need to be paid 7.83 pounds (gov.uk, 2018) additionally; the act has mentioned
that the minimum wage needs to be revised every year to increase employee retention rate. The
concerned action determines the decision making of HRM because they need to prepare the wage
rate as per the notification of the government.
Employment Equality Act 2010
As per the equality Act, 2010, all the employees of the organisations need to be provided with
equal opportunities so that working condition can be maintained adequately. The concerned act
has made the HRM department of the organisations unbiased towards all the employees (gov.uk,
2018).
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Conclusion
Thus, in the present study, the importance of the Human resource department has been discussed.
After completing the survey, it has been deduced that the main aim of HRM is to recruit, train
and motivate employees so that the competitive advantage of the organisation can be enhanced.
Further, the approaches of HRM have also been discussed in the study. On the other hand, it has
been mentioned that the management of the organisation needs to include the employees at the
time of taking decisions so that the relation between the employees and control can be improved.
Further, it has been noted that employee turnover rate has been reduced to 25% from 54.1%
because power provides a salary hike, incentives and appraisals to the employees to motivate
them. The organisation can also use Hardy's flexible model to maintain the flexibility of the
work environment.
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Reference List
Abdelnour, C., Rodríguez-Gómez, O., Alegret, M., Valero, S., Moreno-Grau, S., Sanabria, Á.,
Hernández, I., Rosende-Roca, M., Vargas, L., Mauleón, A. and Sánchez, D., 2017. Impact of
recruitment methods in subjective cognitive decline. Journal of Alzheimer's Disease, 57(2),
pp.625-632.
Akamaru, A., Degbey, W.Y. and Tarba, S.Y., 2016. The role of HRM and social capital
configuration for knowledge sharing in post-M&A integration: A framework for future empirical
investigation. The International Journal of Human Resource Management, 27(22), pp.2790-
2822.
Alvehus, J., 2018. Conflicting logics? The role of HRM in a professional service firm. Human
Resource Management Journal, 28(1), pp.31-44.
Bossler, M. and Grunau, P., 2016. Asymmetric information in external versus internal
promotions 22(7). 55-56.
Bourke, J. and Crowley, F., 2015. The role of HRM and ICT complementarities in firm
innovation: Evidence from transition economies. International Journal of Innovation
Management, 19(05), p.1550054.
Daneshgari, P. and Moore, H., 2016. Organisational transformation through improved employee
engagement–"How to use effective methodologies to improve business productivity and expand
market share". Strategic HR Review, 15(2), pp.57-64.
Gov.uk 2018 Legislation Viewed on 28 August 2018 <https://www.gov.uk/national-minimum-
wage>
harrods.com 2018 About Us Viewed on 28 August 2018
<https://www.harrods.com/en-gb/harrods-group?icid=footer_about-us_harrods-group>
Katou, A.A. and Budhwar, P., 2015. Human resource management and organisational
productivity: a systems approach based on empirical analysis. Journal of Organizational
Effectiveness: People and Performance, 2(3), pp.244-266.
Scott, L., 2016. Four ways HR can improve business productivity: Practical advice for HR
professionals. Strategic HR Review, 15(6), pp.273-274.
Son, J., Park, O., Bae, J. and Ok, C., 2018. Double-edged effect of talent management on
organisational performance: the moderating role of HRM investments. The International Journal
of Human Resource Management, pp.1-29.
Van De Voorde, K., Veld, M. and Van Veldhoven, M., 2016. Connecting empowerment‐focused
HRM and labour productivity to work engagement: the mediating role of job demands and
resources. Human Resource Management Journal, 26(2), pp.192-210.
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