HRM Report: HRM Practices at Marks & Spencer and Employee Relations

This report provides a comprehensive overview of Human Resource Management (HRM) practices, focusing on their functionality and purpose within organizations. It explores the critical role of HRM in workforce planning, recruitment, selection, training, and employee relations, emphasizing their impact on achieving business goals. The report evaluates various recruitment and selection approaches, including personalized, systematic, and advertisement-based methods, assessing their strengths and weaknesses. A case study of Marks & Spencer (M&S) illustrates the practical application of HRM principles, analyzing how the company manages its human resources. The report also examines the importance of employee relations, the impact of employment legislation, and the overall effectiveness of HRM in driving organizational success. Recommendations and conclusions are provided to summarize the findings and offer insights into best practices.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Functionality and purpose of HRM.......................................................................................1
P2: Evaluation of Strength and weakness of various approaches used for recruitment and
selection for Marks & Spencer....................................................................................................4
Effectiveness and benefits of HRM Practices.............................................................................6
LO 3.................................................................................................................................................8
P5. Analysis of Employee relations............................................................................................8
P6. Impact of Employment legislation........................................................................................9
LO 4...............................................................................................................................................11
P7. Application of HRM practices............................................................................................11
RECOMMENDATIONS...............................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Human resources are defined as the personnels who are working within the organisations.
These assets are very crucial because the entire operational activities depends upon the efficiency
and skills of human resources. For ensuring the success of organisations it is critical that human
resource management (HRM) strategies are effectively integrated in company. The unskilled
employees can lead to difficulties in achieving business goals. The employment legislation is
also an important part of the HRM practices (Stone and Stone, 2013).
The report will discuss the purpose of implementing HRM in organisations. It will also
describe the functionality of HRM and role of recruitment and selection process in meeting the
business needs. The document will also explain the elements of HRM and their impact on
performance of organisation. It will discuss the case study of Marks & Spencer (M&S) that how
company apply these management practices in its functions. M&S is well known multinational
retailer which provides services in retail segment. The quality services and performance of
company has drawn the attention of different consumers as well as competitors of company. The
study will also evaluate the organisational and external factors which can affect the decisions and
practices of human resources.
TASK 1
P1 Functionality and purpose of HRM
The key objective and purpose of HRM is to organize and coordinate people so that they
can be effective to achieve the business goals of company. Apart from providing resources to
company for achieving goals HRM also aims at providing job satisfaction to its employees so
that skilled people can be retained as a part of the organisation (Arulrajah, Opatha and
Nawaratne, 2015). The HR professionals of M&S assume that relationship with the human assets
of company is essential for the growth of organisation.
Purpose of HRM: The purpose of human resource management practice is to fulfil the needs of
organisation and its employees by focusing on various technology, processes and people within
the internal environment of company. These practices aims at providing necessary organisational
resources so that human assets of the company can manage accomplish their business activities
effectively.
1

Functions of HRM: The key functions performed by the HR department of M&S for managing
its resources and workforce are as follows:
Functions related to workforce planning:
Human assets are the key components of any organisational structure. Without efficient
management of these resources the success of business is always at risk. Thus the HR department
of the organisation develop strategies and plans to prepare a workforce which is capable enough
to achieve business goals. If organisational workforce is not controlled or managed then there
will be increased risk of failure in business (5 Major functions of human resource management,
2017). For instance HRM of M&S follows strict recruitment criteria so that their skills can be
used for the benefits of company. Similarly for creating an excellent workforce HRM performs
several operations such as providing trainings and creating efficient work culture. These
functions are described in detailed as below:
Selection and recruitment: Human assets are integral part of the company. HR department of
the organisation aims at hiring talented employees so that they can effectively perform the
required business activities (Wang, Chiang and Tung, 2012). The lack of skills in employees can
be harmful for the performance and brand value of M&S. Thus, HRM ensures that during
recruitment process due care is maintained.
Organising training and development programs: The newly recruited employees are not aware
of the organisational culture of M&S. Hence, HRM conducts induction and training programs so
that employees can adjust themselves as per the requirements of company. If there is need of
skill development sessions which can enhance the growth and performance of company then
HRM can also organise such development and training sessions.
Management of good employee relations: The behaviour of the employees greatly affects the
success of company. For this purpose HRM of M&S assures that its human assets are always
comfortable and satisfy with the policies and procedures of company. It not only improves their
performance but also help organisation to retain skilled employees. HRM uses various
motivational techniques, compensatory benefits and advantages so that employees can build a
professional as well as emotional relation with the company (Kaner and et.al., 2013). The good
employee relations can deliver company high quality services and new levels of achievements.
2

Developing and maintaining the organisational culture: The brand value of company is also
evaluated by the factor organisational culture. The job satisfaction of the employees and
popularity of the company among job seekers also indicates the success of company. Thus, HRM
department of M&S always try to build an attractive working culture. The interactive culture,
high perks and all necessary facilities which can provide comfort to the employees are available
within M&S. The comfort and flexible culture helps company to retain its skilled workers and
employees can work with more accuracy and quality (Keep, 2014). To achieve the quality and
performance as per the desired standard HRM of M&S also formulate regulations so that there is
discipline and sincerity towards work. In the absence of this function of HRM human assets of
company may not take their responsibility seriously and company may suffer loss.
Functions related to resource management
In order to accomplish the tasks it is vital for the employees and employers to wisely
utilise the resources of company. For instance if there is lack of resources such as IT systems or
communication system then employees will not be able to perform their tasks with efficiency.
Thus HRM ensures that all required assets are available within organisation. Similarly the
resources of M&S are used in legal way without causing any damage to the organisational
property, it is also ensured by the HR department. Thus to assure that resources are available to
each individual and in proper manner HRM implements various regulations and system so that
resource management can be accomplished. The examples of this aspect are explained below:
Formulation of regulations and organisational structure: It is essential for the
organisation to follow the legal procedures especially legislations related to employment and
labour. The negligence to these laws can lead to the legal troubles for the company. Hence, to
assure that such problems are not encountered HRM implement and follow a strict guideline. For
instance it is one of the important function of the HRM that all employees are given wages
according to the law and safe working conditions are provided to employees. HRM unit of M&S
also confirms that there must be no discrimination within organisation and security of every
individual is guarantee (Kück and et.al., 2016). The legal compliance is also important function
of HRM because it M&S cannot perform its operational activities without following the legal
parameters.
3

Managing resources related to finance and performance appreciation: The several
benefits such as health security, health care benefits and payroll distribution are also the function
of HRM. The incentives and other attractive benefits related to work performance are also
provided by the HRM department. The HR team of M&S also develop strategies which can
improve the performance of employees. For example the yearly performance appraisals,
promotions, salary and other accommodations provided by company to its employees are
managed by the HRM. These improvement plans motivate every employee to perform well so
that they can get these benefits (Bridger, 2014). The regular improvement in the performance of
employees is beneficial for the growth of company.
P2: Evaluation of Strength and weakness of various approaches used for recruitment and
selection for Marks & Spencer
Recruitment and selection process of the talented human assets is vital for the success of
M&S. However, company must emphasis on suitable method of selection process so that
organisation can recruit the suitable candidate which can achieve the growth objectives of
company though there extreme skills and knowledge (Types of Recruitment & Selection, 2017.).
The strength and weakness of different approaches for the process are described below:
Personalised recruitment method: It is defined as the recruitment approach in which
candidates are analysed and shortlisted on the basis of their performance for recruiting them to
higher positions (Rosenberg, Heimler and Morote, 2012). This approach is usually preferred by
M&S to recruit for the positions of senior authorities and such job roles such as CEO or any
other higher levels.
Strength: With this approach it is possible for the company to recruit loyal employees
which are responsible job designations. Thus it is very effective and cost beneficial (Taylor and
et.al., 2017).
Weakness: It does not explore the new talent or skills. However this approach may not be
appreciated by other employees due to internal competition within M&S.
Systematic recruitment method: Systematic approach is known as the method in which
series of procedures such as job description, marketing, short listing and assessment process is
followed to recruit (Donate,Peña and Sanchez de Pablo, 2016).
4

Strength: In this approach recruitment process is not bias and only skilled and efficient
employees are selected. Thus there is transparency in selection process.
Weakness: It is considered as time consuming, costly and complex as compare to other
recruitment and selection approaches.
Advertisements approach for recruitment: This recruitment method is known as the approach in
which job vacancies are advertised on social media, press or advertising boards for the selection
process (Rosenberg, Heimler and Morote, 2012). It has following strengths and weakness.
Strength: Online advertising for the job availability can be less costly and can invite more
number of talented resources. Thus with digital advertisements quick response is obtained and
company can also search the background of candidate easily.
Weakness: The advertisements through boards can be costly and only a limited number of
candidates can know about it. Thus, organisation have limited choice of human resources for
selection (Mariappanadar and Kramar, 2014). Offline approaches are time consuming also so
M&S may not get quick results from this approach.
Recruitment agencies: It is one of the most common recruitment method which is used by the
organisations. Through this method M&S can hire the private agencies which provides
placements in M&S.
Strength: With this method candidates are pre scanned by the recruiting agency so only high
quality candidates are involved in selection process. Another benefit of it is that the job vacancy
are not disclosed to public so M&S can sustain its image that it has sufficient human resources.
Weakness: It is also possible that some talented candidates may not prefer to deal with
recruitment agencies. Secondly it is also considered expensive than other approaches.
Professional referral approach: Referral approach is defined as the process in which referrals
or recommendations are used for the selection process. With this process M&S can recruit
candidates by referrals from other employees of organisation (Farndale and Kelliher,2013). This
approach is usually followed for managerial positions.
Strength: The recruitment accomplished by this approach has higher retention rate. It is less
costly and enables to recruit more skilled candidates.
5

Weakness: Referral rejection may demotivate employees so it can have adverse effect on their
performance. Also it provides limited number of candidates for selection (Syed and Jamal,
2012).
Unsolicited applications: In this type of selection methods organisation can select candidates
from the job request letters received by the desired candidates. M&S is well known organisation
and thus it can receive number of request letters for recruitment from job seekers (Farndale and
Kelliher,2013). M&S can respond to these offers if it finds suitable candidate.
Strength: There is zero up-front expenses in this process. Brand of company is created so
company can evaluate its popularity by the number of applications received.
Weakness: It is challenging ascertaining the skills and quality of applied candidate. In this
method there is difficulty in managing records of such choices.
Apprenticeship: M&S can also provide apprenticeship to the desired candidates. It will help
company to evaluate the performance of employee before confirming their selection.
Strength: It minimizes recruitment cost and enhances loyalty and create a positive impact on
community.(Appelbaum, 2013). It can also build scarce skills within organisation.
Weakness: It is time consuming and does not guarantee suitable human resource as per the needs
of company.
Effectiveness and benefits of HRM Practices
HRM practices are for the welfare of organisation. They also have positive impact on the
employees as well. The effective practices of HRM can help M&S to improve the work
efficiency of its employees. It also provide an opportunity and ease for the employer to create a
workforce which is best suited for the organisational culture.
Benefits for employees:
The HRM practices helps employees to manage their functional tasks with the help of
best and necessary resources. They are also provided the training for new skills which can
enhance their functional efficiency and professional skills which is beneficial for their future as
well. The payroll activities and development of organisation culture improves the work
efficiency of the employees. The human resources of M&S can also enhance their skills by
training and development sessions conducted by HR department of the company. The regulations
6

implemented by HRM for the company enables employees to follow the guidelines so that work
is accomplished legally and effectively. The HR managing department also motivate employees
in terms of incentives and salary benefits so that human assets of company regularly bring
improvement in their performance.
The HRM policies also minimizes the issues such as discrimination, bullying or in-
disciplinary approach toward work (Oke, Walumbwa and Myers, 2012). In order to meet the
changing needs of competitive market it is important for M&S to develop skills in their human
assets which can help them to lead the other organisations. The training and orientation policies
of HR department meet these needs of organisation. The HR of M&S analyse these needs of
organisation and plans for suitable development sessions.
The flexible and interaction policies of human resource team of M&S makes it easy for
the employees to share their experience and concerns easily with the organisation. If their issues
are not resolved by the HR executives then, it may create job dissatisfaction among team
members. It directly affects the performance of employee. Thus, these management policies also
aims at sustaining the quality and performance of their human assets. One of the critical aspect of
this team is to monitor the market trends in recruitment process and wages so that M&S can
recruit the best employees at minimum expenses.
Benefits of effective HRM practices for employers:
The implementation of these practices ensures that all recruitment and human resources
activities are in compliance with legal regulations. The HRM practices also recruits the suitable
candidates for M&S so that company can have sufficient resources to manage its operational
activities (What is the role of human resource management in an organization?, 2018). From the
perspective of employees the HRM policies are for their benefits.
The another significant benefit of the HRM Practices is to evaluate the performance of its
employees. The performance of human resources can be evaluated by monitoring the
performance and by providing suitable rewards (Kück and et.al., 2016). HR department of M&S
use motivation techniques such as incentives, rewards and appreciation. It inspires employees to
make improvements in their performance. The HRM of M&S also conducts some cultural and
fun activities so that its employees find the organisational culture exciting and inspiring. Such
measures have significant effect on the performance of employees.
7

To improve the work quality of company its HRM also brings flexibility in regulations.
For instance the HRM has strict policies regarding arrival time and behaviour within company
but it also makes efforts to make company culture flexible. Like if employees require any
resources for their comfort or for performing any task then HRM ensures that all resources must
be available for the employees (Taylor and et.al., 2017).
LO 3
P5. Analysis of Employee relations
Employees' relationships are vital part of any organisation. They are the pillars of the
structured layout of an enterprise's especially for company like Marks and Spencer. This
establishment is mainly dependent on the orientation and behavioural accessibility to gain
insights about the working practices (Piening, Baluch and Ridder, 2014.). In regard to the same,
Human Resource Management must execute proper decision-making for handling their
workforce that affect the generation of revenues, sales and profits of M&S in direct terms. The
following are the criteria to maintain the employees' engagement-
Setting targets and goals: This is the best managerial step to make M&S employees' realise the
significance of the vision statement and employ it to reach the mission through sustainable
approaches. It is the foremost and the most important route for HRM practises to work
effectually.
Loyalty of employees' : This can be achieved through cyclic rotation of 360 degrees performance
review of each and every individual to know about the strengths and weaknesses. Along with
this, the HRM must execute a reward system to make them feel appreciated and interested while
doing their tasks in productive manner. The employees must be treated like asset for retaining
them on longer terms.
Delegation of responsibilities: This is an important element to understand the empowerment of
employees' by segregating the work, tasks, roles and responsibilities on the basis of merit. This
helps the HR managers to challenge their employees at M&S to work with acknowledging the
shortcomings prevailed at their workspace. It also accelerated the optimisation of the allocated
resources with providing the possibility of learning through teaching and educating their
assignments and roles from various departments.
8

Equality methodology: Employees favouritism must always be discouraged in terms of gender
or pay scale. HR of M&S have adopted a fair and just system for evaluation of employees'
performance that has created amiable environment at workplace. Although employees
expectations are also treated in same manner as the upper management officials, leaving a mark
of correct and appropriate reward system. It also supports in motivating them for giving their
best efforts to achieve the targeted objectives. Few statistics represented the breakdown of both
genders at M&S in the year 2018. In this regard, 28 percent consisted of number of working men
while 72 percent were female employees which is clearly demonstrating the equality of gender
and unbiased treatment of positions with respect to age or gender.
Effective communication channel: HRM must try to maintain the harmony by conducting
sessions and meetings at regular intervals of time, organise informal activities for improving the
connectivity and bridging the gap of cultural differences or ethical work practices (Farndale and
Kelliher,2013). Moreover, they should update about the policies, regulations and proceedings at
M&S to employees by being upfront and well informed so that they can offer help in solving
their dilemmas to make sound decisions.
Increased productivity by Conflict resolution: HRM of M&S has created strong inter-
relationships between their employees. However, this morale booster is due to the company's
investment programs for enhanced productivity that involve competitive salaries with respect to
their knowledge, competencies and skills. It will also assist in reduction of conflicts which
automatically would lead to better results at tasks in friendly and sound work surroundings.
Nonetheless, the management must try to maintain the employer-employee relations in proper
and formal order to come to the conclusion of happy workforce results in productive workforce.
P6. Impact of Employment legislation
There are various key elements of employment legislation that has an impact on the
human resource management of organisations in wide aspects. In addition to such key elemental
components, it has been important to know the ever changing modifications in the field of
employment legislation. Moreover, this legislative influence reflect upon the formalisation and
standardisation procedures in context of their expansion plans at both local and global levels.
Consequently, these professionals are well versed with all the legalities that must be
understandable for M&S's working environment and do not hamper their functionalities (Purce,
9

2014). Furthermore, there has been regular assessments of these regulations effects on the
procedures at production and other related departments to overcome the occurrence of causalities
to lever the attitudinal change from employer's perspectives.
In regard to the above, the areas on which HRM decision making gets affected due to the
employment legislations includes retention of employees', requirements of reimbursement,
checking and monitoring of employees' criminal records, labour relationships, special provisions
in terms occupation/profile, remuneration and wages, social security, insurance policies, health
and safety and the overall working conditions.
National Minimum Wages 1988: This act provides the staff, workers and employees an authority
that has been entitled tot hem on the basis of hourly wages. Here, the pay is calculated and
consists of the payroll, bonuses, incentives etc. and is relevant in context of the reference period.
Tax with contribution for social security: This has been used for tax deductions on the monthly
basis. It is structured in which the employer/owner gets a compensatory scheme where the rates
of total contribution is less (Wang, Caminada and Goudswaard, 2012). In this regard, the
different thresholds have been reviewed on the annual level which is effective from the month of
April every year.
Trade Union Act 2016: This became an act for stringent measurement in regard to the public
services for regulating the lawful action in the industrial sector. Along with this, these
regulations have been employed for specifying the services in well defined manner in context of
medical, firefighting, transportation and teaching services.
Health and Safety at workplace 1974: This is an act which has been redefined as per the
authority embedded by the Parliament to enforce and regulate the health and safety regulations in
appropriate mode. It gives the employees an insurance when they get injured, bruised or had any
accident. This has laid guidelines for the generation of particular provisions in all the companies
to establish a system of supervision for the welfare of communities on the whole.
Contract of employment: This is vital for an individual who is working for an organisation and
perform work in return of money. The Employment Rights Act 1966 has been outlined to
provide a specific degree of control in the business world. This part includes the terms and
conditions with respect to employee benefits, absence, clauses, non-disclosure agreements,
responsibilities and many more such related information.
10