Human Resource Management Practices at Harrods: A Case Study

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Human Resource Management
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Table of Contents
Introduction......................................................................................................................................3
Activity 1.........................................................................................................................................4
Activity 2.........................................................................................................................................9
Activity 3.......................................................................................................................................10
Conclusion.....................................................................................................................................16
Bibliography..................................................................................................................................17
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Introduction
HRM is a tactical approach used to improve employee performance and meet a firm’s strategic
objectives. It functions in areas of hiring new employees, providing training, and managing
employee behaviour. The key characteristic of HRM is the procurement and development of
personnel to maximise organisational value. The study on HRM will be based on practical
examples from Harrods, UK. The chosen retail company owns departmental stores in London. It
has around 330 departments, which deal with luxury and quality products (Harrods.com, 2019).
The study identifies key areas of HRM including functions appropriate for workforce planning,
benefits of selection process, employee legislation, and HRM practices.
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Activity 1
Functions of HRM
Harrods’s HR department operates in two areas including operational and managerial. Operative
functions, purposes and their role in business objectives are as explained below.
 Job analysis: It defines nature of job roles, and work experience, skill, and knowledge
demanded a position. It fulfils workforce-planning requirements by articulating actual
tasks and related duties (Noe et al., 2017). Harrods is able to bring suitable employees
through comprehensive job analysis.
 Recruitment: The approach used to attract potential applicants and determine right
ones is termed as recruitment. Prospective candidates chosen through a systematic
hiring process remain committed to realising Harrods’s goal of becoming a competitive
retail company. They employ skills and abilities to increase brand value and enhance
sales.
 Salary administration: Salary is the basic tool to motivate workforce for exploiting
their skills. HR department of Harrods prepares salary structure along with bonus,
benefits, and compensation for good performance. This prompts employees to struggle
for Harrods’s business and market goals.
 Performance Appraisal: It checks and analyses staff performance in regular interval to
ensure whether they are performing as per standard or not. This regular review tracks
employee growth and achievements so that Harrods can provide beneficial training to
them.
 Training and development: It makes employees stay prepared for challenging and
competitive goals by earning and developing knowledge (Farnham, 2015). Harrods
gives new employees with fresh management and operational training programs,
whereas existing employees get skill development, cross training, and others. This
transforms employees to experts in all areas and does work effectively.
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Figure 1: Functions of HRM
(Source: Price, 2015)
Managerial functions demonstrated by Harrods’s HR department include planning, managing,
and directing workforce. HR personnel collects information on present and future needs of
employees through internal and external research (Mathews, 2017). They allocate tasks in an
organised way to match employees’ knowledge. The principal focus of Harrods’ HR officers is
to direct employees through proper instruction, motivation, and policy formulation. The retail
organisation applies Soft HRM model to accept employees as aspects of competitive edges and
brand value. It believes investing on employees gives maximum return concerning large
customer segments, improved sales, and greater competitiveness.
Strengths and weaknesses of different approaches to recruitment and selection
Recruitment is a strategic decision-making process to find desires candidates. It has two common
approaches- internal and external.
Recruitment
Approaches
Meaning Sources Strengths Weakness
Internal The approach Transfer- The  It  It has no
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through which
employees are
informed and
motivated to
apply job
openings is
termed as
internal
recruitment
(Rahman,
2018).
organisation
deputes
employees in
other
departments with
similar or
different
positions.
Promotions- It
involves filling
vacant areas
through skilled
employees
(O'Meara and
Petzall, 2013).
maximises
employee
job
satisfaction
by giving
them
opportunity
for well-
paid and
renowned
positions.
 It reduces
Harrods’s
effort and
expenses.
 The firm
does not
require
giving
extensive
training, as
employees
are known
about
workplace
culture.
possibility
of getting
efficient
people.
 It may not
be suitable
always to
compete
with other
organisatio
ns.
 Existing
employees
are not
equipped
with
modern
skill and
technology,
which may
act as
competitive
disadvantag
es.
External The process of
dragging
candidates’
attention to
apply for
Advertisement-
Harrods uses
electronic or
print media to
advertise open
 It assists in
getting
right people
due to a
wider
 External
recruitment
involves
several
steps and
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different job
roles through
channels
including
campus
recruitment,
advertisements,
and job portals
is referred to as
external
recruitment
(O'Meara and
Petzall, 2013).
positions.
Company
websites-
Harrods allows
candidates to
apply for jobs in
its official
website.
Job Portals-
With an increase
in digital
technology,
some external
parties use their
platform to
publish vacant
positions on
behalf of
Harrods.
scope.
 Job portals
lessen
Harrods’s
effort in
finding
skilled and
equipped
staff.
 External
candidates
may modify
business
practices
through
new ideas.
takes a long
time to find
right
people.
 It involves
cost of
interview
and
advertiseme
nt, which
can be more
depending
on number
of
vacancies
(Holm and
Haahr,
2018).
Table 1: Approaches to selection
(Source: Created by the learner)
Selection Approaches Meaning Strengths Weakness
Panel Interview The selection
process consisting
of more than one-
panel member to
ask various
questions to
candidates is
known as panel
It has much value, as
one member asks
questions and others
observe candidates to
judge effectively
(Holm and Haahr,
2018).
Some skilled
candidates feel stressed
when they are asked
with cross-questions.
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interview.
Personality Test The method is
applicable to test
suitability of
candidates’
personality to
fulfil a position.
Most of the pre-
interview tests are
based on personality
that eliminates
candidates with poor
personality and this
saves cost coupled
with further interview
processes.
It is ineffective to test
potential and practical
knowledge applicants.
Group discussion A group of
applicants show
common interests
and demonstrate
views on specific
topics (Holm and
Haahr, 2018).
It is advantageous to
test perspectives of
applicants regarding
external world. It
tests communication
styles and ability of
participants.
It is time consuming
and it creates pressure
among participants.
Skill test This can be
different based on
job requirements.
Harrods use
customer-service
skill test to hire
people (O'Meara
and Petzall,
2013).
It adds value by
eliminating
candidates with
minimum or no skill
for desired position.
It is a time taking
activity.
Table 2: Approaches to recruitment
(Source: Created by the learner)
Approaches to both hiring and selection find potential figures through filtration of incapable
applicants. They achieve Harrods’s aim of strengthening internal capabilities and ensure
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competitiveness. The higher use of internal recruitment methods should be avoided to obtain
best, competent, and suitable candidates.
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Activity 2
Table of Contents
Introduction......................................................................................................................................2
Chapter 1: HRM practices and their benefits..................................................................................2
Chapter 2: Effectiveness of HR practices in terms of organisational productivity and profit.........4
Conclusion.......................................................................................................................................5
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Introduction
Harrods uses many HRM practices that are beneficial for employer and workforce. Some of the
practices are evaluated below. The effectiveness of each practice stating productivity and profit
will be mentioned.
Chapter 1: HRM practices and their benefits
Flexible working Practice
Flexible working practices include providing flexible daily hours, compressing workdays,
provision for holidays, and others.
Benefits for employees
Employees of Harrods experience many benefits from flexible working practices. They are
flexible to accomplish personal obligations, family needs, and other responsibilities outside the
workplace. They get relaxation from work pressure, which prompts them to start work with a
fresh mood every day. They get free time for personal skill development and search for
enhanced career opportunities. Employees acquire control over work environment and daily
working hour, which makes them manage time without any stress (Cooper and Baird, 2015).
They can work in hours match to their energy and level and this improves efficiency for difficult
tasks.
Benefits for Harrods
With introduction of flexible working practices, Harrods found that commitment, loyalty,
morale, and engagement of employees have increased. It means employees are enthusiastic to
align efforts with organisational goals to obtain maximum output. When employees get freedom
in the workplace, they do not absent and come late to office. This reduces cost of Harrods
associated with absenteeism. Flexible working practices are great ways to attract external
candidates with improved skill sets (Cooper and Baird, 2015). The organisation witnesses an
inclined employee turnover rate due to such practices, as employees prefer working with
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employers having freedom and flexibility in workplace. Employees establish a healthy
relationship with management as a symbol of showing gratitude.
Training and Development
Harrods use mentoring schemes, on-the-job training, and in-house training to train and develop
human resources.
Benefits for employees
Employees earn a higher degree of job satisfaction by attending training sessions. Satisfaction
felt by employees influence their outlook, motivation, loyalty, productivity and motivation
(Cohen, 2017). Employees show performance up to their highest potential when they are given
right training. Continuous training ensures that workforce is maintaining a consistency
concerning knowledge and skills. Employees have options to address weaknesses and build
confidence to get everything done with accuracy. They feel supported, involved, valued and
enabled with arrangement of regular training.
Benefits for Harrods
Employees receiving regular and necessary training perform well, as they understand
responsibilities properly. Their increased confidence supports the firm to enjoy better
performance and lead in the industry. New ideas are formed and executed because of proper
training and development sessions (Cohen, 2017). When Harrods invest for employee
development, staffs feel valuable and special of having advanced skill and expertise. They do not
leave job in short duration rather they continue long period and thereby the firm’s staff turnover
reduces over time. Having a successful training and development strategy assists in developing
Harrods’s brand value and enables it a prime consideration for a career. This makes the firm
more attractive and noticeable for prospective candidates to apply. Overall profile and reputation
of the organisation increases and develop through training practices.
Recruitment and selection
It refers to a proactive approach to identify candidates matched with specific positions.
Benefits for employees
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