H&M UK's Recruitment and Selection Process: Impact on Objectives

This report analyzes how H&M UK's recruitment and selection processes support its organizational objectives. It explores the significance of these processes, the challenges H&M UK faces in human resource management, and the strategies employed to enhance employee productivity. The study uses a literature review methodology, drawing from existing theories like the resource-based view (RBV) and human capital theory (HCT) to provide a theoretical framework. Findings highlight the importance of effective recruitment and selection in achieving organizational success, addressing challenges like talent acquisition and retention, and aligning HR practices with H&M's goals of fairness, equity, and sustainability. The report concludes with recommendations for improving H&M's recruitment and selection strategies to better support its organizational objectives.

How do the recruitment and selection process support organizational objectives of H&M, UK

Table of Contents
1. Introduction..................................................................................................................................3
1.1 Research Background and Motivation...................................................................................3
1.2 Problem Statement.................................................................................................................4
1.3 Research Significances..........................................................................................................5
1.4 Research Aim and Objectives................................................................................................6
1.5 Research Questions................................................................................................................6
1.6 Research Outline....................................................................................................................6
2. Literature Review........................................................................................................................8
2.1 Introduction............................................................................................................................8
2.2 Mind Map and Theoretical Framework.................................................................................8
2.2.1 Mind Map.......................................................................................................................8
2.2.2 Theoretical Framework...................................................................................................9
2.3 Literature Gap......................................................................................................................10
2.4 Significance of Recruitment and Selection procedure.........................................................11
2.5 Selection and Recruitment process of H&M.......................................................................12
2.6 Impact of the Selection and Recruitment process of H&M on its organizational
performance and objectives.......................................................................................................15
2.7 Challenges facing H&M UK in its human resource management......................................17
2.8 Recruitment and selection strategies are taken by H&M UK to enhance employee
productivity................................................................................................................................19
2.9 Conclusion...........................................................................................................................21
3. Methodology..............................................................................................................................22
3.1 Research Philosophy............................................................................................................22
3.2 Research approach...............................................................................................................23

3.3 Research Design..................................................................................................................23
3.4 Research Method.................................................................................................................24
3.5 Data Collection Method.......................................................................................................24
3.5.1 Literature Search...........................................................................................................25
3.5.2 Inclusion and exclusion Criteria...................................................................................26
3.6 Data Analysis Technique.....................................................................................................26
3.7 Ethical Consideration...........................................................................................................27
4. Findings.....................................................................................................................................28
4.1 Significance of Procedures..................................................................................................28
4.2 Processes of H&M...............................................................................................................29
4.3 Impacts of Processes of H&M.............................................................................................30
4.4 Challenges Facing by H&M UK.........................................................................................32
4.5 Recruitment and Selection Strategies..................................................................................33
4.6 Discussion............................................................................................................................36
5. Conclusion.................................................................................................................................42
5.1 Future Research...................................................................................................................46
5. 2 Recommendations...............................................................................................................46
References......................................................................................................................................47

1. Introduction
1.1 Research Background and Motivation
The prominence given to human resources is one of the most important recent developments in
the world of organizations. Humans are important to companies because they contribute their
viewpoints, values, and unique features to the workplace. If handled well, these traits can also be
very advantageous to the firm. Djabatey (2012) contended that this scenario supports putting
more emphasis on the human side of organizational wealth because improving employee abilities
and organizational procedures as a whole is a top priority in human resource management.Gomes
(2017) also argued that the company's ability to find and hire employees of high quality at all
levels is crucial to its continued growth. Gopinath and NS (2014), on the other hand, stated that
selection begins when the right candidates are found, whereasrecruitment refers to the method of
identifying and enticing potential employees from within as well as outside of a company prior
to interviewing them.However, subjective judgment is used in the majority of recruitment and
selection procedures. In contrast, Ekwoaba et al. (2015) articulated that, regardless of whether an
applicant is hired, it is more likely that the organization will leave them with a favorable
impression of how it has dealt with them.
Experience has also demonstrated that while a successful appointment may have positive effects
on a number of organizational context factors, an unsuccessful appointment can have detrimental
effects that transcend well beyond the organization in which it is made. Yet, Djabatey (2012)
asserts that the recruitment and selection of staff also gives the business a chance to present a
favourable image. Existing research indicates a direct relationship between an organization's
employees' performance and its success. Failures at work might also result in
underachievement.Because it may be expensive to recruit the unsuitable individuals or to fail to
foresee changes in hiring needs, human resource planning is crucial (Ekwoaba et al., 2015).
Furthermore, it has been asserted that effective staffing is necessary for the business to create and
preserve a competitive advantage (Elrehail et al., 2019). Recruitment and selection are now
crucial in firms because workers must be employed swiftly, in sufficient numbers, and with the
appropriate credentials. Hence, this study aims to look at how performance is impacted by
recruiting and selection criteria using H&M UK as the population of interest.
The recruiting and selection procedures are both included in human resource management for
any type of firm. The efficiency of these two roles radically influences the calibre of the

organization's human resources (Gamage, 2014). Due to the high costs associated with hiring and
selecting inadequate individuals, businesses cannot afford to do so. In order to fulfil its strategic
goals at the lowest possible cost, the organization's ultimate goal for recruiting and selection,
according to Ofori and Aryeetey (2011), is to hire the fewest number and highest calibre of
people feasible.
Gambage (2014) discovered a strong and favourable link between hiring and selection practices
and an organization's success. In contrast, Abbasi et al. (2022) found a positive correlation
between selection and recruitment procedures and overall productivity. Executing a strong
recruiting and selection process is unquestionably linked with business performance, according
to other studies like Syed and Jamal's (2012) findings. Otoo (2019) asserts that there is a positive
relationship between profitability of the companyand the volume of hiring, the validity of
selection tests, and the usage of formal methods of selection. Similar to this, Ofori and Aryeetey
(2011) found that effective hiring and selection practices are positively connected with an
organization's performance.
Because each country is unique and the people who work there have different capabilities and
ideas, H&M, as an international company, must deal with a number of challenges when
operating internationally, especially when it comes to its human resources. As a consequence of
this, it is absolutely necessary for the Board of Directors of H&M to comprehend the viewpoint
that the company's capacity to achieve the desired competitive advantage will be dependent on
the competency of its workforce. Therefore, the company's workforce's productivity suffers if it
does not make investments in efficient recruitment and selection. Therefore, the primary goal of
this research is to demonstrate how H&M manages its international workforce and the
connections between them. In addition, the absence of previous research on H&M UK in the
literature served as an additional impetus for this study.
1.2 Problem Statement
The H&M UK recruitment and selection process is one of the most striking aspects of the
company's organizational structure. Internal recruitment and job rotation, which H&M claims
boost employee motivation, have been the focus of its efforts (H&M, 2022b). According to a
report from 2022, the average number of employees has steadily grown over time, indicating
their importance in achieving organizational goals (Statista, 2022).

Additionally, the retail giant places a significant emphasis on workplace diversity and inclusion.
It has been accounted for that in 2021, around 71 percent of the jobs of significant obligations in
the association had been held by females (H&M, 2022a).
However, effective human resource management relies heavily on recruitment and selection
procedures, which have an impact on an organization's performance and objectives. Despite this,
businesses like H&M UK are up against a lot of competition during the hiring and selection
process. H&M UK must overcome one of the most significant obstacles: a lack of qualified and
trained applicants for jobs. Finding and keeping top employees may be difficult for H&M UK
due to the fierce competition in the industry. This errand is made considerably more troublesome
by the high turnover rate in the retail business, which is described by occupations that are
habitually low-paying and have little opportunities for headway and development.
As a result, the research's problem statement is figuring out how H&M manages its human
resources explicitly in context of recruitment and selection procedure and why it does so in the
way it does.
1.3 Research Significances
Fairness and equity in human resource management, as well as climate sustainability, are the
foundations upon which H&M UK's organizational goals are built (Yansen, 2022). In light of
this, the objectives of the research have been focused to learn more about H&M UK's
recruitment and selection processes, which help the company achieve its organizational goals.
Based on a real-world case study, this study focuses primarily on the chosen organization's actual
situation. Consequently, the study is extremely significant as the study's coverage of H&M UK's
recruitment and selection procedures, in particular, was one of its most significant contributions.
This study uses information from H&M UK to gain an understanding of the real-world business
environment. In addition, the HR department of H&M UK and its employees will benefit from
this study's reflections on H&M UK's human resources policies and ways to enhance them. The
company may benefit from some of the suggestions made in this study in order to improve its
effectiveness and eliminate its shortcomings.

1.4 Research Aim and Objectives
The study intends to discuss the role of recruitment and selection process and how its support
organizational objectives of H&M, UK.
Following objectives were the main focus of this study:
● To assess the impact of recruitment and selection processes on the organisational success
● To study the influence of the selection and recruitment procedure followed by H&M UK
on achieving the organisational objectives
● To identify the challenges facing H&M UK in its human resource management
● To determine the strategies taken by H&M UK to enhance the employee productivity.
1.5 Research Questions
To effectively accomplish the goal, the study responds to the subsequent research questions:
● What impact do recruitment and selection processes have on organisational growth and
sustainability?
● How does the recruitment and selection process at H&M UK support its organisational
objectives?
● What challenges does H&M UK face whilst managing its human resources?
● What strategies are devised by H&M UK to enhance the quality of human resource
management?
1.6 Research Outline
There are six parts to the present study. In the introductory chapter, the researcher presents why
research was done on how H&M fosters its recruitment and selection procedure explicitly in UK.
The theoretical framework, which includes a mind map, relevant theories, and a wealth of
literature on the recruitment and selection process, with a focus on H&M UK, is established in
the literature review chapter. The researcher begins a methodological discussion and describes
the data collection procedure in the Methodology section. With the support of previous studies,
the researcher presents the empirical findings regarding H&M's selection and recruitment
process and its impact on the company's organizational goals in the findings and discussion
section. Plus, a critical analysis brushing the theories and the findings will likewise be the piece
of this part. In the final chapter, a summary of how H&M develops its recruitment and selection

process, specifically in the United Kingdom, will be provided, as will some suggestions for
enhancing its recruitment and selection criteria to effectively achieve its organizational goals.

2. Literature Review
2.1 Introduction
The purpose of this section of the study is to provide a comprehensive analysis of the research on
how H&M, UK's recruitment and selection procedures support organizational goals. This
comprehensive evaluation enables familiarization with and comprehension of the current study
in a particular subject before its analysis. Also, the assessment of the writing should empower the
researcher to research what is known and what has been led in earlier examinations. It is helpful
to identify the gaps in the literature and evaluate previous studies in order to further investigate
the patterns that have not been included in the research. The subsections are further subdivided
according to the current study's specific objectives in order to achieve the research aim
appropriately.
2.2 Mind Map and Theoretical Framework
2.2.1 Mind Map
According to Figure 1, the mind map developed for the particular research is based on the
exploration of the strategies employed by H&M UK in its recruitment and selection process
which in turn helps in the effective achievement of the business objectives. The research
objectives will be backed up by the theories- the “RBV theory and HCT theory” for the practical
implementation of the case scenario of H&M. Furthermore, the mind map has also explored the
existing literature from the perspectives of the impact of effective recruitment and selection
policies on the organizational success which is well evidenced from the practical business
scenarios at H&M UK.

Figure 1: The mind map of the research (Source: Self-developed)
2.2.2 Theoretical Framework
“Human capital theory” and “resource-based view theory” are the foundations of this study.
2.2.2.1 The resource-based view theory
As per Assensoh-Kodua (2019), the resource-based view (RBV) theory highlights sustainability
in an organization in terms of competitiveness in the industry. The theory is based on
strengthening the human resources and the related assets of an organization in order to maximize
growth and sustainability. According to the resource-based perspective, businesses should
constantly evaluate their workforce to make sure they have the best people with the right skills in
the right positions to ensure continuous competitive advantage (Ekwoaba et al., 2015) and when
this is not true, firms ought to compensate for the shortage by utilizing suitable selection and
recruitment criteria. The notion contends that a company's success or failure is primarily
dependent upon the calibre of its workers' interpersonal interactions. In contrast, Tien et al.
(2021) aimed to demonstrate that businesses can generate human capital advantage by recruiting
and retaining exceptional employees.

Thus, the purpose of using this theory is to fulfill the research objectives of evaluating the
recruitment and selection process at H&M as well as understanding the impact of these processes
on organizational success.
2.2.2.2 The human capital theory (HCT)
According to Ekwoaba et al. (2015), Adam Smith (1723-1790) claimed that the central idea of
the human capital theory is that people are fixed capitals like machines because they have skills
and useful abilities that have real costs and yield profits. This premise in HCT is based on
identifying the broad spectrum of competencies and skills present in the human resources of an
organization as well as the applicants in order to capitalize on them to ensure better performance
(Winterton and Cafferkey, 2019). H&M UK largely focuses on maintaining diversity and
inclusivity in the workforce which in turn would provide the organization with a plethora of
industry-based knowledge from candidates from various backgrounds. Therefore, this theory will
help in understanding the strategies employed by H&M and the related challenges it faces in
leveraging the human capital asset whilst recruiting and selecting them.
2.3 Literature Gap
The countries select candidates in a variety of ways. Examining the UK context and the
exogenous factors, such as the organization's size, cost of recruiting, and growth, among other
things, impacts the strategy for recruitment candidates. On the other hand, recruiters place an
emphasis on job analysis, environment analysis, and personality traits of the potential candidate
in relation to the global environment. By adding an extension to the process, they look at
expatriate factors like stress in the family, culture, inflexibility, emotional immaturity, physical
breakdown, a lot of responsibility, and so on. Because they are not given the utmost importance,
these aspects are ignored in the UK context. In order to fill this gap in the literature, the
researcher has conducted a comprehensive secondary study of recruitment and selection process
with particular focus on H&M fashion retailer of the UK.
Because the owners and managers of H&M UK do not yet fully comprehend the crucial role that
incorporating a recruitment and selection process plays in continuously improving the
organization's performance and achieving sustainability, additional research is also required.
Therefore, the purpose of this study was primarily to demonstrate the various mediators of the

relationship between H&M UK's organizational objective, business performance, and the
recruitment and selection process, as well as the impact that the recruitment and selection
process has on H&M's organizational objective, in order to fill this gap in the literature.
2.4 Significance of Recruitment and Selection procedure
As per Costen (2012), for any kind of business, human resource management includes both the
recruitment and selection processes. The method involved with drawing in and choosing
possibility for work is alluded to by these terms. The quality of the company's human resources
is significantly influenced by the effectiveness of these two functions (Gamage, 2014). However,
hiring and selecting incompetent candidates has a significant negative cost that businesses cannot
afford. According to Ofori and Aryeetey (2011), the overarching purpose of H&M UK's
recruiting and selection processes is to hire the fewest number and highest-caliber workers
necessary to help the business accomplish its strategic goals for the least amount of money.
In contrast, Saddam and Mansor (2015) claim that recruitment and selection play a significant
role in the overall resourcing strategies of an organization. These strategies identify and secure
individuals who are necessary for the organization's short- to medium-term success and survival.
In essence, the main goal of the recruitment process is to build a pool of candidates who meet the
necessary qualifications to facilitate the selection of the best candidates for the organization,
while the main goal of the selection procedure is to choose the ideal candidate to fill the
numerous roles within the company (Gamage, 2014).
In addition, as per Otoo (2019), an effective recruitment and selection process leads to the
selection of the right employee for the right roles which in turn enhances the employees’
productivity. The proper selection process is one of the cornerstones to boosting the morale of
the employees which helps in improving the organizational performance. An increase in
productivity and symbiosis among the employees and better overall performance of the
organization paves way for the achievement of the organizational objectives effectively.
Furthermore, it has been supported by Rasool et al. (2019), who stated that there is a
considerable decrease in the cost associated with the training and development of new employees
when the selection process turns out employees that fit the roles. However, it has been argued by
Dukoski et al (2021), stating that recruitment and selection do not always guarantee the selection