Managing People: Recruitment and Motivational Theories at Harrods

This report delves into the critical aspects of managing people within an organization, emphasizing the importance of human resources in achieving company goals. It explores the processes of recruitment and selection, highlighting job analysis, sourcing of talent, and the screening and selection procedures. The report then examines various motivational theories, including Maslow's Hierarchy of Needs and Herzberg's Two-Factor Theory, and their practical application in fostering employee engagement and productivity. The report uses Harrods, a luxury retail company, as a case study to illustrate how these principles are implemented in a real-world business context, focusing on how Harrods addresses employee needs and implements motivational strategies to ensure customer satisfaction and business success. The analysis covers how Harrods utilizes recruitment strategies, internal and external sourcing, and employee motivation techniques such as rewards and recognition to maintain a high-performing workforce.

Managing People
MAR
27

Table of Contents
Managing People.........................................................................................................................1
INTRODUCTION.......................................................................................................................3
1. Recruitment and Selection .....................................................................................................3
2. Motivational Theories ............................................................................................................7
3. Factors influencing individual’s behavior in Harrods...........................................................11
CONCLUSION..............................................................................................................................16

INTRODUCTION
Managing people are essential for a company to make effective use of human resource.
Without people, no organisation can achieve their goals and objectives as they are fundamental
elements of any firm. For getting skilled and talented people, company have to focus on
recruiting desired people which can help organisation to achieve success in all fields. A manager
should to motivate, encourage, inspire their members so that they can perform well in their job
and produce higher results. Employees are crucial pillars of business success as they directly
interact with customers and are responsible for making profits out of them. Managers of
company should ensure that the employees which are employing in their organisation should be
satisfied with their jobs and other perks like salary, incentives, allowance. These things impact
positive effect on employees as they perform better in their tasks. These factors also effect their
productivity and outputs. Harrods is a private company which has well recognized fashion and
luxury stores. They are mainly leaders in luxury retail (Odaga, 2014). It is Situated in Brompton
Road in Knightsbridge, London. It has global reputation and prestige and running more than 320
different departments. Harrods essential values are – luxury, service, innovation and sensation. It
has huge work force of 4000 employees. Now, Qatar holidays has purchased Harrods and they
are fully committed towards employees of Harrods. This assignment will focus on recruitment
and selection followed in Harrods. Different motivation theories with their advantage and
disadvantage that are applicable to Harrod company are also given in this assignment.
1. Recruitment and Selection
The employees forms the pillars of foundation on which the success and growth of every
organization depends. Thus , it is most vital task for an employer to employee right person for
the right job (Al Ariss, Cascio and Paauwe, 2014). And thus, the recruitment and selection forms
the first and the foremost functions of any business organization to initiate their operations.
Recruitment is concerned with identifying the job requirements, attracting the candidates to
apply for vacancy, scrutiny the suitable applicants and then appointing the most appropriate
individual for the position whereas selection process involves taking interview of selected
candidates and evaluating their level of skills and proficiency through various aptitude tests to
capabilities to ensure that they are suitable for the vacant post. Being a key function of HRM, it
is vital for an enterprise to carefully evaluate and take every step of recruitment and selection

process with added importance as when the best person with requires proficiency level will be
selected at the right position it will definitely give productive outcome enhancing the
performance as well as productivity level of the firm. The process of recruitment and selection
varies depending upon the size, structure and number of roles that a business enterprise is
performing. However, the basic steps that every organization follows are mentioned below:
Conducting a job analysis:- Job analysis is the process of identifying and determining the roles
and responsibilities of a particular job and the requisite specifications that are essential for
performing a job. Job analysis includes a series of tasks to ensure that that the right person with
right capabilities are hired so that the firm doesn't suffer any loss caused by misfits. It includes
preparing a job description along with job/personal specification, setting the minimum
qualification criteria for the candidates in reference to the post and then defining the salary a
structure according to the vacant position (Bush and Middlewood, 2013).
Job description is a document which defines the specifications of the job position. It
includes information related to pay scale, functions, daily chores, affiliated work and obligations
of special designation. Its function is to convey data regarding orientation reports,
methodologies for HRM, specifications related to skills required by an individual and wages
criteria too. It serves as a support plan in deciding the performance evaluation and training and
development techniques to analyse and enhance the performance of the selected employee. Job
description along with job specification helps the company to select the most appropriate
candidate in terms of qualification, skills and knowledge which are required to fulfil the roles
and responsibilities of the job position .
Job specification also known as employee/personal specification. It is a document which
lays down the personal specification including educational qualifications, experience, specific
qualities, technical and communication skill and so on which are requisite for performing the job
related roles and responsibilities. It also includes a brief about the medical and health status of
the candidate, information related to aptitude and judgement capabilities, adaptability, flexibility
leadership skills,values and ethics, creativity and mannerism etc. It serves as judgement criteria
for organization as well as for candidates to evaluate their eligibility for the job opening
(Gassmann and Schweitzer, 2014).
Sourcing of talent :- After deciding the job description and outline for ideal candidate to be
chosen, the company start acquisition of talented candidate by using a variety of methods to

induce and attract them to apply for job. For this before advertising about the job opening, an
organization search out other sources from where they can possibly get the potential candidates.
There are broadly two sources that an enterprise used to source it candidates :-
Internal Sources:- It is a process of hiring of employee from inside the organisation
mainly through transfer, promotion, present employees, retired employees etc.
External sources :- Hiring through external sources includes selecting people from
outside the organization through press advertisements, campus interview, placement agencies,
employment exchange, walk in interviews etc.
Out of the various methods that a company used to advertise about its job vacancy the most two
common are-
Posting- Besides using company's official websites, the other methods opted in order to attract
the best possible talents from outside and within organization internal posting usually includes
announcing the info by displaying in bulletin boards and other areas within the premises of
business where as posting externally may be done of by distributing flyers (Kamoche and et. al.,
2015).
Print and media advertising – An enterprise looking for people to fill up job opening make the
announcement in the newspapers by providing the qualifications and the contact details where
potential applicants can apply.
Screening:- It includes testing and evaluating the skills, knowledge and personality of the
candidate by using the systematic process of preliminary screening where in out of many
applicants only the few best suited in terms of qualification and personal skills are selected for a
personal interview after which by testifying their aptitude and intelligence level they are
finalized for the final interview (Kamoche and Pinnington, 2012).
Selection- In this step all Hr representatives take a one on on interview with the chosen
candidates and discuss all the terms and conditions,salary structure and other company related
policies to the individual. In this step the final decision regarding hiring is taken.
Job Offer:- After selecting the most appropriate candidate according to the job profile, he is
given the job offer which includes handing over the job offer which has all the informative
related to the date, time and place of joining and other specification related to salary and T & D.

Harrods is one of the world's largest am famous retail departmental stores which is known for its
celebrity endorsed sales. Following the motto all things foe all people,everywhere the company
attracts more than 15 million customers every year. To fulfil the objective of providing customer
satisfaction Harrods pays special emphasis on the corn stones of the company -its employees.
Thus, to ensure that each job position has the best suitable person who specializes in his work,so
as to enhance customers shopping experience and attain consumer delight, the enterprise due
attention in its recruitment and selection process (Kitada and Ölçer, 2015).
Recruitment and Selection process in Harrods
Recruitment planning:- The initial planning about hiring the most suitable candidate is
conducted by reviewing the applicant’s resume which allows them to scrutiny those which are
having relevant skills accordance to available opening. This allows the HR managers to
determine whether the applicant posses the required proficiency according job description and
personal specification of the vacancy.
Sourcing :- Before advertising about the job opening Harrod first look upon its internal sources
to fill up the job vacancy. In case management could not find a suitable candidate from within
the firm to fill up the position, then the external sources are evaluated by the company. External
sources that are opted by the firm includes posting information about job opening on websites,
web portals and career boards , advertising through print media like newspapers and journals as
well as through electronic media including TV’s, FM radio etc.
Screening:- The CVs and resumes are screened by the Hr and few selected candidates that fulfil
the job criteria and personal specification mentioned in in job requirements. In this stage these
candidates are judged on their communication skills through group discussion. Out of which the
best suitable candidates are sent to the stores to carry out the job for two days where they are
assigned duties and are evaluated on their quality and performance level by the supervisors
(Nixon, Harrington and Parker, 2012).
Selection and job offer:- The manager then send the performance report back to the HR
department where they are again evaluated for their suitability in the organization in relation to
their work performance. They candidates are then called for the final interview with the HR
representatives where the best suited candidate are hired for the job in the organization
The the recruitment and selection process at Harrods is quiet fair and company doesn't
discriminate any of its employee on any basis (Pereira, 2015).

2. Motivational Theories
Motivation is defines as the willingness or desire of a person to do something. Employee
Motivation is determined as an essential part of organization's success as it influences and
induces an individual to give best of its efforts for achieving the goals and objectives of the
organization. In leadership motivation plays a vital role in affecting and influencing the behavior
of an employee. Thus, it is of critical importance for a manager to identify which motivational
theory is best suitable for employees to improve their moral and encourage them to work with
best of their abilities to attain the company's objectives resulting in reducing employee turnover,
retention of people and improvement in their work productivity. At Harrods an employee is
motivated to give its best performance by recognizing their efforts through giving then rewards.
Rewards that are given are of both monetary rewards i.e. hikes and bonuses and non monetary
rewards such as promotions, recognition, responsibilities and more. There are various
motivational theories which are applied by organizations for motivating their workforce.
Mentioned below are few of the famous motivational theories that are practiced in Harrot :-
Maslow Hierarchy of needs: This five-stage theory places the needs of the individual in different
categories according to their priority level are the physiological needs that includes food,shelter
and clothing, social needs that involves association with other people, safety and security needs
that includes physical protection, esteem needs (that includes recognition from people and self
actualization need that is the desire for achieving personal goals. Thus in business content
theories of job satisfaction revolve around the need's of employees’ needs and the factors that
satisfy them. Harrods apply this motivation theory to motivate its employees. The company by
working on the principal of equal and fair remuneration for each employees fulfill the
psychological needs of its employees. Hr of Harrods knows the until and unless the employee
doesn't feel secure they wont be able to perform well which will hamper the productivity level of
company (Pfeffer, 2014). By rewarding the employee for their work performance and efforts the
enterprise make sure to fulfill the the esteem need of the individual. In addition to these to fulfill
the social needs ans self actualization needs the employees should be allowed to forms some
informal groups or to organize formal get together and also they should be involved in decision
making process that will have positive impact on them and will make them confident and
proficient for taking big responsibilities (Podsiadlowski and et. al., 2013).

Advantages of Maslow Hierarchy of Needs Theory
Maslow’s theory of motivation enables a manager to gain an understanding of basic human
needs of friendship, job security and recognition. This helps the manager in creating an
environment which meets these needs which helps in motivating the employees to give their best
performance.
This theory of motivation is very simple and easily understandable and apply for the business
organization.
This theory is dynamic in nature as it portraits motivation as a force of bringing change in
employees behavior and performance (Renz and Herman, Eds., 2016).
.

Illustration 1: Maslow's Hierarchy of Needs Theory
(Source: Maslow's Theory of Needs, 2017)
Disadvantages of Maslow Hierarchy of Needs Theory
This theory proves to be difficult for a manger to apply as it is hard to identify which need level
employees are on.
The description of self-actualization and its experience mentioned in this theory was based on
writing and talking to selectively chosen people rather than exact sampling.

The hierarchy also fails to take into account individual differences. There is no evidence
indicating every human being experiences the needs in the order Maslow specific (Taylor,
Doherty and McGraw, 2015).
McGregor’s X and Y Theories:-
According to McGregor's X theory the average person dislike to wok and tends to avoid to take
responsibilities. The employer has to enforce control through rules and regulations and has to
implement certain punishments to get work done from them. On the contrary, Theory Y
perceives that people usually accept and try to seek responsibility and that they are responsible
people to accomplish the given tasks. And it is the responsibility of manger to provide them with
the opportunity to take responsibility and to recognize their efforts.
In Harrods the management follows the McGregor's Y theory, where the management provides
the opportunities to its employees to take higher responsibility so as to encourage to perform
their work with best of their abilities. For which Harrods arrange a communication session to
interact with its workforce . In these sessions the senior manager recognizes the efforts of
talented employees and the employees are also given chance to discuss their issue sand concerns
with management. Efforts are made by the management to involve employees in organisational
decision making process is also helpful for engaging the employees for the future prospects
(Zheng, 2013).
Advantages of McGregor’s X and Y Theories:-
The biggest advantage of McGregor's X and Y Theories is that it is easy to understand and apply
by the management.
It helps the management to focus on brain storm the ways in which an individual carry out it
work.
These theory serves as a helpful guide to develop motivational techniques by taking assumption
about the human behaviour.
The assumptions taken in these theories about the human behaviour are tends to be realistic .
Disadvantages of McGregor’s X and Y Theories:-

According to theory X a firms require an authoritarian manger to constantly control the
performance of every single employee which involves fair amount of threat.
The theory Y believes that the right if a person is provided with right motivation he will be a
responsible employee to complete his task. However , every individual differs from one another
and creating an environment which suits the requirements of all is not practically possible.
The assumptions taken in these theories might not apply in today's modern scenario as
workforce is changing and so their needs ,aspiration and things that motivates them.
Thus, Harrods must understand the level of needs of its employees as they are the key to success
for them. Although it is seen that the managers already much concerned about the development
of communication skills of its employees still major issue related to staff and customer
experience should be monitored and resolved. In addition to it recognition of requirements of
different departments is also needed to be ensured so that there is perfect alignment between the
goals and objectives of an employee with the company's objectives which will result in
minimizing employee turnover.
3. Factors influencing individual’s behaviour in Harrods
Human behavior is complex in nature and is not certain. It changes according to different
situations. Every individuals depicts different behavior and differentiate form each other.
Organization is full of different human beings and its a tough task for a manager to handle and
satisfy everybody. In ideal condition, responsibility of manager is to analyze different tasks, then
they determine suitable skills for that job and at last they constitute best team that complement
each other skills. But in real situation, they have to use existing resources for a given tasks and
they must have the ability to understand differences in individual behavior and use them properly
to increase the synergy. Every firm should understand that employees which are working for
them are valuable assets for their company and effective utilization of this precious resources
will enable them to achieve desired goals and objectives. It is necessary for managers to know
about behavior of employees, for that they can organize some activities which can help them in
knowing about different nature and behavior of individuals. Behavior is defined as a pattern of
how a person reacts to a stimuli (Bush and Middlewood, 2013). There are various factors which
influences behaviors of an individual and those are:

First is Personal Factors, in this there are two main factors influencing behavior are
Biographical and learned characteristics.
Biographical characteristics: These characters are those which are present in an
individual from the time of birth. They are genetic in nature and are inherited. These qualities of
individual cannot be changed. If managers find out these traits, then they can use their
organizational behavior more effectively. Biographical characters mainly consists of physical,
age, gender, religion, experience, intelligence and ability (Du and et al, 2013).
Physical characteristics are those which are related to height, skin, vision, complexion.
Shape, size, weight, etc. These factors greatly impacts on behavior of a person. Age is
determined by the date of birth. There is a relationship between job performance and age.
Psychologically, younger people tend to do more work and are energetic, innovative,
adventurous, ambitious and risk taking whereas older people are less adaptable to changes and
have conservative nature. Performance declines with increasing age as younger people change
jobs frequently in order to get best opportunities where as old people have less chance to quit
their recent job. Gender is another inherited character which is decided by birth. Men and
women, both are equal and tend to do equal number of jobs. Religion and culture play a specific
role in determining nature of a person (Thomson, 2012). It also determine attitude of an
individual towards their work. Work experience of a person indicates employee productivity.
More is the experience, more is better quality of work. It also affects turnover rates of an
organization. Intelligence of person is also considered as inherent characters. It is present at the
time of birth and cannot be changed but it can be enhanced over a period of time through several
efforts, hard work, proper motivation and healthy environment. If any person has a great
intelligence quotient (IQ), then he will perform good in his work whereas if any person has low
IQ, then he won't be able to perform good in his activities. So managers have to identify which
employees have more capabilities and skills and assign tasks according to their talents. Ability is
the capacity of a person to perform any task. It is mainly of two types that is intellectual ability
and physical ability.
Second is Learned Characteristics, which is defined as a permanent change in behaviour
in behaviour after interacting with external environment. Some of learned characteristics are
personality, perception, attitude, values.