Harrods HRM: Decision-Making Factors and Employee Legislation Report

This report provides a comprehensive analysis of Human Resource Management (HRM) at Harrods, focusing on key functions such as acquisition, development, motivation, and maintenance of the workforce. It evaluates the effectiveness of HRM practices, including the application of the Guest Model, in enhancing Harrods' profitability and productivity. The report also examines internal and external factors, such as competition, compensation, legislation, and employee relations, that influence HRM decision-making within the organization. It further emphasizes the importance of employee legislation and its impact on HRM practices, highlighting the need for HR departments to stay informed and compliant to foster a positive and productive work environment. This document is available for students seeking HRM case studies and solved assignments on Desklib.

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HUMAN RESOURCE MANAGEMENT
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Executive Summary
Human resource management is an important managerial activity which is done and also
to perform end to end human resource groundwork or planning for the most important assets of
any institution. The main purpose of this work is to look into human resource function and
benefits for Harrods. It also exclusively explains in details the key elements of human resource
management as well as the effectiveness of HRM practices in the organization. Furthermore, the
paper seeks to find and explain the some of the factors that affect decision-making and
importance of employee and employee legislations.
Introduction
The people in an institution; be it employees or employers are the most significant asset;
more precious than the houses that host them, more important than the machines and more
valuable than the capital asset. Why are they valuable? Employees offer an asset that is unique in
the market regarding qualities, personality and decision making. These three features are what
make the variation in performance; originality results to the new exceptional product, tactical
decision making offers for opportunities that never in place and customer associations bring
about customer reliability. These characteristics cannot be obtained from homogeneous inputs
and therefore, HRM is a very critical element of an institution (BANFIELD, KAY & ROYLES,
2018). Through evaluation of case studies and techniques of human resources management, we
will comprehend this characteristic better.
When giving reference to Human Resources, there is little distinction between HR and
Personnel Management. This little distinction or difference is about their specific functions.
Managers at Harrods have diverse functions and obligations, to implement Harrods’s brand

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values within the business. For a large institution, for example, Harrods, need to adhere to the
laws to make sure that they perceive a positive image to their market.
Elements of Human Resource Management
HR experts work with an organization’s most valued assets is the employees. While
meeting the objectives, goals, and mission of the institution, HR must ensure qualified
individuals are in place to effectively perform the company’s tasks under the supervision of the
HR to meet the required standard of work. As these continue, various important practices make
operations of the HRM effective. These include staffing among much more as indicated in the
next paragraph.
HRM is a procedure which entails or engages around fundamental functions-acquisition,
growth, inspiration, and preservation of workforce (BRATTON & GOLD, 2012). These
fundamental components are the main catalysts for attaining organizational objective since such
actions are to be done within a specific constriction to complete the role.
Acquisition
This element is concerned with selection and recruitment of workforce requisite for a
business. Similarly, it also makes sure that the organization has the required number of staffs at
the right time when there is need to have them or acquire their services for a given task. This is
the initial stage of HRM function. The acquisition is responsible for making plan, staffing,
selection and socialization of staff. It picks and socializes the capable staffs who have taken on
the traditions of the company.
1. Development

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This stage commence after the socialization of the newly recruited staffs in an institution. It
is charged with a task of making sure that the newly recruited staffs are given the correct
knowledge and skills to perform the task given effectively. Furthermore, it is an endeavor to
enhance workers performance pace by giving them the knowledge, adjusting approaches and
expanding skills. It can be done through education, instruction, classroom lessons, assignments,
expert programs and much more. The vital goal of the employees’ development is to improve the
future performance of the organization by a well-organized staff. The growth of employees is not
for only recruits, it is also for the existing workers to improve them as per the transformation in
the interior and external atmosphere.
2. Motivation
In many cases, employers always tend to think that trainings only inspire employees. It is
important to note that for any organization to realize the maximum profit, the human resource
management must motivate the workers. Motivation in this situation means any event that
induces and inspires the employee. It can either be through sports or giving incentives for the
best performing employees. Motivation can also include job specification, reward and
punishment, performance assessment, compensation management work performance and much
more. High performance depends on both ability and motivation; therefore, motivation is
important to human resource management.
3. Maintenance
This is the last major element of human resource management that deals with the practices of
maintaining the workers who can do better for the business. This function contributes towards
maintaining the staffs that do extremely better for the business. It creates such a plain and a
favorable environment for those high performers and makes them remain in the same company

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for a longer period. This action requires that the institution should offer extra facilities, safe
working conditions, responsive work environment, and acceptable labor dealings. If these
activities are implemented or performed in the right way, then there shall be proficient and
capable staffs in the companies.
The effectiveness of HRM Practices in Terms of Raising Harrods Profit and Productivity
The world has become more competitive and shaky than days back; organizations are
trying to attain competitive improvement with all means and turning to more innovative sources
through HRM practices. HRM practices have explained in various features.
First and foremost, it is import to know what type of business models that are being applied at
Harrods for their effective of various Human Resource management practices. One these models
include Guest Model. Guest model categorizes the personal management from human resource
management. For this reason, human resource management is defined as the obligation focused
task, to a certain extent than conformity based work. As was explained in the introduction, it can
also be assumed that human resource is beyond the staffing and training of the workers (Mone &
London 2014). The procedure involves identifying the workers as tough outfits and strengths to
the institution and using them with other dissimilar management tactics. The process emphasizes
on the unique requirements rather than combined labor force.
Guest Model in Harold
This model was introduced by David Guest in 1989 and was established on the theory
that HRM is characteristically different from conventional workforce management and the model
was entrenched in premeditated management. The major rationale behind this argument was the
facts that other than incorporating human personnel into human resource management, the model

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seek behavioral dedication to managerial objectives, it functioned better in institutions with an
organic formation, and the viewpoint is unitary with emphasis on personal importance and focus
on complete and affirmative application of human resource. The model had six components of
analysis that include HRM strategy, outcomes, practices, performance outcomes and fiscal
outcomes (Project Management Institute, 2013). The HRM strategy incorporated practices such
as separation of products focus on quality and issues connected to cost. The HRM practices, on
the other hand, were concerned on issues pertaining selection, guidance, evaluation, rewards, job,
design and participation. This model is in cooperated with the practices for better results on
performance.
The model alone is not enough; several other good HRM practices can drive an
organization to greater heights. Managers must implement a more open, elastic and caring
approach in managing the employees. Such a style is reflected in various ways. These three are
the most common practices:
a) Managing people effectively for performance through an open Performance Management
System that will call for individual objectives tied department objectives, regular
coaching, developing staff on the job
b) Improving employees’ competencies to perform better through effectively training people
to achieve departmental objectives and results
c) Providing quality service through training and engaging employees in nurturing a service
culture in addition to business process re-engineering and work streamlining.
Generally, human resource management practices are expected to motivate and facilitates
a company’s innovation performance. Do these practices pay off? The success is determined by

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the implementation procedure used by the HRM department even as the practices change from
different stages of the HRM.
Internal and external factors that affect human resources management decision-making
including employment legislation
HRM departments play an integral function in employees planning, employee and work
relations, training and growth, legal compliance within their organizations. In executing all these
functions including decision-making and legislation, HRM department faces numerous
challenges, both internally and externally as part of its role (Henderson, 2014). In addition,
human resource complements the organization’s missions and objectives. Some of these factors
are not fixed; therefore, to take full advantage of recruitment and retention, and to reduce staff
issues, human resources managers ought to regularly supervise internal and external features to
amend human resource strategy appropriately. In order to do that, it is essential to know that
internal and external factors include:
a) Competition
The competition level in the industry affects the ability of the organization to recruit
qualified staffs. The giants in the industry find themselves being looked by the candidates. There
is no to set aside money for advertising posts in such cases since the candidates will always seek
for themselves or check on the company’s website. Other businesses do not have such a branding
force or reputation, even though they need to search for qualified applicants for several serious
positions actively (Nelson, 2015). In such incidents, a human resources subdivision will require
and lay emphasis on increasing recruitment equipment and attending trade fairs to promote the

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company and attract candidates. On the other hand, developing a program for incentives to retain
key employees is also suitable to counter competition.
b) Compensation
Supply of workforce compels the sum of reward an organization must provide to attract
qualified workers. In an overpopulated market, when lack of employment is on the rise, and
many more experienced and skilled individuals exist than the available jobs, the total of
compensation the company should offer is less than when the experts are few and the firm is in a
competition against other numerous businesses to hire the best workers (Freedland &
Kountouris, 2012). Human Resource department ought to regularly analyze the compensation
arrangement by performing an industry-and location definite salary survey to make sure that
wages remain aggressive enough to attract and maintain key employees but adequate to sustain
the business to remain financially strong and active. Human resource department, in this case,
must also make sure that the internal compensation formation is fair, for instance, veteran
workers with specific qualifications should be given a salary that is more than what is being
given to the freshly graduated candidates on same tasks.
c) Legislation
All human resource management activities are affected by the legislation. Government
legislation naturally dedicates the duration an industry must retain personal data and other
employee information, what to be kept, and how it is done. For instance, in the United States, the
Americans with Disabilities Act Genetic Information Nondiscrimination Act and Health
Insurance Portability and Accountability Act all put requirements to business owner to protect
the privacy of worker medical data and to ensure that business administrators work in restrictions

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of the rule (Indermun & Bayat, 2014). Human resource experts should have knowledge of the
legislation and educate managers on their functions.
d) Employee Relations
The internal guidelines can also influence human resource processes and plans. For instance,
if the organization is dedicated to endorsing from within, the human resource ought to ensure
that staffs are given suitable guidance and improvement to get ready for post promotion as soon
as the right time comes. Human resource must also check employees who are entitled to
retirement and make sure possible substitutes are trained to avoid the rapid disappearance of
business idea and knowledge (Cummings & Worley, 2016). In situations where the firm has
trade unionist, the human resource has to connect in collective bargaining with the union
officials on issues of representation. External effects such as political reasons and institutional
customs all manipulate the number of criticisms and grievances and the human resource
management must respond.
Importance of employee relations in Harrods with respect to influencing HRM decision
making
Employee relations management in Harrods is absolutely a component of the human
resource management functions. The worker's relations panel is an essential consistent part of the
HRM team of Harrods; the same team has an obligation to ensure that the welfare of the
employees is checked even at the decision-making situations (Boxall & Purcell, 2016). On the
other hand, the team also has a responsibility to ensure that particular matters like complaints,
plans, and procedure do not influence dedication and performance. From the information and
research from Harrods, the employee relations group also put into effect the pension scheme,

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which is relatively effective in extenuating the interests of the employees. From 1970, the
business has executed the pension plan where the pension scheme team functions as only a
section of the general benefits offerings of the organization (Goetsch & Davis, 2016). It also
works as a connection between human resources and the provider's department. From the
examination of Harrods information, it is quite clear that difference exists between employee
knowledge and customer. When it comes to decision making, the issue of employee relation is
given a priority especially when there is an intention to restructure some departments to increase
quality performance.
Key elements of employment legislation and the impact it has on HRM decision-making
Several employment legislations have direct on the human resource management
decision-making; however, the most area that affects many organizations is the legislation
connected to health and safety matters. This legislation has a significant implication on the
human resource performances not only At Harrods but in many businesses as well. Harrods is
responsible for abiding by the legislative structure not only to set up health and safety necessities
of the workers but for the public at large. This legislation may affect the budget and expenditure
of the organization and maybe even forced to increase the budget. For instance, Health and
Safety Act of 1974, requires that the workers should perform appropriate programs which decide
the tolerability of their health situation during the process of recruitment as well as during the
employment period (Balas, 2017). The Act gives the organization an obligation to take care of
the of the health worker while in the workplace.
On the other hand, the human resource managers must make sure that the requirements of
these legislations are submissive to the background of the organization and the workers.

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Consequently, it will, in addition, engage an additional cost to the business, as the business will
have to teach their staffs in the matter concerning the new legislation on health and safety. The
human resource management decision making is affected by this legislation as it plays an
essential task in the strategies. Therefore, the company or business is forced to make some rapid
changes within their structure to cope up with the legislation in place.
Recruitment of Employees
Recruitment of employees is a process that ensures efficiency in the workplace and also a
process for making sure that there is no shortage of workforce for the organization to carry out
its functions without any hitch. It involves several processes such as evaluating the need and
identifying the vacancy, creating a position description, forming a recruitment plan, selecting
search committee, posting the post and implementing the search plan, reviewing candidates and
developing a shortlist for the applicants, conducting interviews, select hire and finalize the
recruitment process (Arthur, 2012).
As explained the above paragraph, the first step of the recruitment process is to identify
the vacancy and analyze the need. Recruitment process offers the opportunity for every section
to line up for more staffs for the departmental growth and personal development (Andresen &
Nowak, 2015). This requires proper planning and appraisal of the need will result in getting the
right staff for the purpose of the team. At some point, the vacancy can emerge from a newly
created position, and this requires a clear understanding of the strategic goals of the department.
Quick analysis is always recommended for this purpose to see whether the newly created post is
of any importance to the organization. Following the adherence to the said processes, the

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candidates are expected to submit their CVs and academic credentials for perusal, and finally, the
committee shall come up with the best applicant as stated in the process above.
Application of HRM Practices in a work-related context
In order to understand this part, there several questions that helps in explaining the
application of human resource management practices in context related to work. First and
foremost, it is important to know the importance of work and individual specifications for
recruitment and selection process. The individual specification is effective since it enables a
person to define the kind of applicant needed for any post. The application of the person
specification not only helps human resource management but also individuals in various sectors
make the right decisions when issues concerning selections arise (Armstrong & Taylor, 2017).
Similarly, as it has been mentioned throughout the paper, human resource management plays an
important role in the success of the organization. Some practices were earlier mentioned; these
practices are also applicable in other fields. For example, giving out incentives and motivations
are common practices that almost every person that wants to get quality service out of a group or
an individual must apply. In most cases, teachers have always applied these simple practices to
encourage healthy competition among the students to get good grades.
Conclusion
HRM is the most important sector within the organization. Every company requires a
human resource management department to control and manage the workforce. Implementing
good HRM practices help the business prosper and when it is not done properly, that given

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organization has no future. Similarly, the human resource management professionals must also
understand their roles and fix the any arising issues before creating damage to the organization.
References

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