HRM Practices, External Factors, and Competitive Advantage

This essay delves into the critical role of Human Resource Management (HRM) in achieving organizational goals and competitive advantage. It explores various HRM practices, including recruitment and selection, training and development, performance appraisal, compensation and rewards, and flexible working options, highlighting their significance in enhancing employee skills, motivation, and retention. The essay uses Marks and Spencer (M&S) as a case study to illustrate how training and development programs and reward systems contribute to its success. Furthermore, it examines the impact of both external and internal environmental factors on HRM policies and practices, emphasizing the need for HR managers to adapt to these influences. The essay underscores the importance of strategic HRM in navigating the complexities of the business environment and fostering a productive and engaged workforce.

Managing Human
Resources

Human resources is an essential and valuable part of every organisation whose efforts
and contributions can drive business to achieve its desired goals and objectives within limited
period of time. For this, HR management is held responsible to fulfil the requirements of skilled
and knowledgeable employees within an organisation and managing through adopting various
HR practices such as recruitment and selection, training and development programs, rewards and
compensation etc. The present essay includes roles of HR practices in assisting organisation to
achieve competitive advantage with an evidenced example. Along with this, impact of external
and external environmental factors on HRM policy and practices along with three evidences
examples are also discussed under the present essay.
Human resources are referred as the individuals who are worked for an organisation
using their specialised skills and knowledge with an objective of driving business to achieve its
desired goals and objectives within pre-determined time period. To increase their efforts and
contribution, HR manager is wholly liable to conduct several HR practices such as recruitment
and selection, training and development programs, rewards and incentives etc. HR managers
need to first forecast the future needs after analysing the working environment, mission and
objectives and accordingly make suitable HR strategies and policies in order to make their
workforce more capable to deal with various complexities of business environment and achieve
competitive advantage. Here are the some HR practices that can be used and implement by an
organisation for the betterment of human resources so as to achieve competitiveness among their
rivals exists in market (Agrawal, Khatri and Srinivasan, 2012).
Staffing is important for an organisation to attained skilled and knowledgeable
employees who can contribute more efforts in achieving desired goals and objectives. For this,
HR manager need to conduct recruitment programs where the required candidates will be invited
to apply for the vacant job position and after which selection has been done after confirming that
such candidate is eligible for vacant job position. Recruitment can be done within an
organisation as well through promoting high performer and experienced employees to a higher
position. It ensures organisation to attained high skilled and capable workers in working
environment.
Training and development is essential activity which must required to conduct for new
as well as existing workforce with the purpose of enhancing their capabilities and skills to
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perform allotted work more effectively and efficiently. The main objective of an organisation to
train, educate and develop the skills and knowledge of employees is to develop efficiency,
capabilities, and standard of performance which in results maximises their contribution towards
organisational goals and objectives. It motivates employees to create new and innovative ideas to
complete allotted work which drives an organisation to achieve competitive advantage in rivalry
market (Ahmed, 2013).
Performance appraisal is another effective and more reliable tool which develops the
performance level of human resources. It is the process of evaluation of employees performance
by comparing their current performance with pre-determined standards that are already
communicate with them. It is more helpful for company to identify the needs of training and
development programs through identifying high and low skilled employees. Under such HR
practice, high performer gets appreciation from their HR manager by receiving promotion,
additional pay hike etc. which brings motivation among low performer to work hard and
compete with their rivals in more effective and efficient manner. This will increases the
competition among employees which brings maximum advantages to company and drive them in
achieving competitive advantage (Bonache, Trullen and Sanchez, 2012)
Compensation and rewards is another HR practices which help in increasing working
behaviour and employee retention rate of an organisation. For this, HR manager is required to
analyse the performance level of each and every employees by comparing it with desired
performance and on the basis of which providing rewards and compensation to the eligible
employees. It increases work commitment and loyalty of employees with company for longer
period of time. Therefore, it help an organisation to retain experienced employees whose
contribution brings valuable outcome to company. With having skills and experienced
employees, an organisation definitely achieve competitive advantage in rivalry market.
Flexible working options mainly focuses on enhancing the productivity of employees
which can be done through allotting them working hours according to their requirements. As
some employees desired to work at morning shift where some staff are willing to work on
evening or night shift. Therefore, providing them suitable working hours increases satisfaction
level of employees which in results increasing their productivity as well.
In every organisation, employees union are established who consider the issues and
requirements at workplace and brings such issues towards the management to resolve as quickly
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as possible. Therefore, it is essential for HR manager to maintain healthy relation with them
through considering their issues and ensure them about resolving as soon as possible. This will
maximises the employee retention rate and establish a healthy environment at workplace which
makes positive impact on their contribution towards organisational goals and objectives (Carley
and Christie, 2017).
All above HRM practices will be more useful for every organisation irrespective of the
size whether small, medium or large in order to gain competitive advantage. It can be better
understood through examining the actual scenario of Marks and Spencer who mainly adopted
training and developments programs for their employees on regular basis (Chan, 2012).
Marks and Spencer (M&S) is a multinational retail organisation of United Kingdom
which is engaged in providing multiple number of luxurious products such a food items, home
and clothing products. It is operated in more than 57 nations with the help of 1463 stores and
websites across worldwide. The company has attained more than 81000 employees which are
engaged in serving more than 32 million customers. M&S has generates approx. 10.7 billion
pound as total revenue out of which 3.7 billion pound generates from clothing and home
products, 5.9 billion pound from food products and 1.1 billion pounds from international markets
(Marks & Spencer, 2018).
Due to attaining huge employees strength and revenue, the management of M&S always
tried to increase the figures which can be possible to adopt HR practices at workplace by HR
department. At present, HR manager of M&S mainly adopts training and development programs
as main HR practice among various in order to make their workforce more capable to perform
well and deal with challenges in business environment so that competitive advantage can be
gained in rivalry market. They conduct different range of training programs for their staff which
are discusses as under:
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Conducting On-the-job learning by Marks & Spencer providing various learning
opportunities to their workers which varies based on scheme. Company is using schemes such as
Learn while earns, shouldering real responsibilities, as the workers tackle the various issues of
dynamic nature in their day to day life. Company gives a certain role and responsibility or a
project to workers which is managed by the worker on their own. Through such training,
company is having a competitive edge over their competitors (Cowling and Mailer, 2013).
Corporate Learning Program conducted by Company in which continuous efforts for
enhancing the skills of the workforce such as cutting-edge workshops, skills foundation,
competency training and full-on project management are done. With such training, the workers
are improving their skills which provides a competitive advantage to the company.
Technical training conducted by M&S in which huge amount of money is invested in
technology for becoming the world's number 1 retail chain. Managers are spending time with
workers for ensuring that the workers are receiving technical training when needed. Through
such training, company is getting an upper edge over the competitors due to technically skilled
workforce (HR practices of Marks&Spencer, 2018).
Role-specific training given by M&S to support their employees by providing role based
training for achieving their personal goals effectively and efficiently. Through such training,
workers are ready to take any role assigned to them due to which the organisational goals are
achieved automatically. This is also beneficial for the company as from such workers, The
company is performing better than the competitors (Decker, Riley and Siemer, 2012). It supports
their staff to achieve competitive opportunities at workplace which indirectly assist them in
achieving personal as well as professional goals. Thinking for the development of employees
increases their morale and satisfaction level due to which they can contribute their best efforts
towards achievement of competitive advantage of M&S.
Marks and Spencer has adopted Rewards and Benefits as another HRM practice for the
betterment of its staff. The company feel it is important that their people are well rewarded due
to which they always tried to bring highly competitive total reward package that's proven to
attract, motivate and retain the best employees. For this, HR manager of M&S has conducted
various benefits schemes which includes:
Updating the salaries of employees against the other companies in order to make assure
that they are more competitive and keep updating with the changes in the market. They also offer
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additional monetary payments as well as extra performance rewards to recognised achievements
(Heraty, Michailova and Morley, 2016).
M&S offers 20% discount to all employees while purchasing at company's outlets. There
is no limit on the number of products purchased with the discounted prices. Along with this, the
company also offers discount to employees' relatives which is a benefit of staff.
M&S has provided minimum 28 days’ statutory holiday per year which reduces their
satisfaction level at workplace.
There are number of discretionary bonus schemes on offer that rewards their employees
for help company to achieve desired goals.
M&S took well-being of employees as main priority due to which they offer discounted
healthcare products and a well-being websites with top tips and health guides to keep fighting
fit (Huxham and Vangen, 2013).
There is no doubt in the above statement that, several factors are associated with the
business entity and influences the operational performance of the organisation also affects the
external management. The management pertains the Human resource department tries to reduce
the effects of these external and external factors and also helps the in minimization of these
influencing factors. For the achievement of the of business entities objectives, Human resource
performs the integral part in enhancing the strength and ability. HRM helps the entity to cope up
with the competitive edge and helps in facing the ordeals as well as the challenge of managing
Human resource the business entities necessitate effective HRM system. HRM practices refer to
activities comprises with recruitment, management and development of the human resource of
the organisation. The practising of HRM Involves the plan the human resources and also helps in
fulfilment of desired goals with the help of the Human resource. On the basis of several reports
and the articles given by the various HR managers on the basis of their experiences, it has been
observed that HRM practices influenced by environmental factors either directly or indirectly
(Ployhartand et. al., ,2014). Not only this, some environmental factors also influence the
variables like employee's behaviour, attitude towards working environment, productivity,
relations with other employee’s performance and employer's attitude, financial as well as the
operational performance of the business entity. Basically the environmental factors are classified
in two categories that are external factors and external factors.
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External factors can affect HR policies and practices are those influencers over which
the business entity cannot be controlled and changed accordance with the organisational needs.
For adapting in Human recourse management concept it is crucial for analysing the on external
factors as well as their affects over the HR practices and policies of the business entity. for
avoiding the occurrence of the external factors and their impacts it is crucial for the HR make
brief analysis of the external influencers that are associated to the HRM practising and with
entity (Renwick, Redman and Maguire, 2013). So effective strategies for human resources must
be taken into consideration of external factors minimising the effects of the external influencers
and also helpful in getting control over these external factors. Some kinds of factors are
Economic changes, Technological changes, Government regulations, competitors action and
union actions etc.
As in case of TESCO (UK) founded in 1919 by Jack Cohen. This organisation engages in
selling groceries from the stall of east end of London. The environmental factors affect the HRM
policy as well as the working of TESCO. The influencers affect the recruitment and selection
process, as the TESCO advertises through their website for recruitment of the applicants for the
vacancies in the entity. The high competition in UK' s market affects the recruitment process as
due to high competencies the other entities of same business stream offers smart annual packages
and facilities in comparison of the TESCO this affects the number of applicants for the vacant
job positions as it leads to preventing the entrance of more fresh talents in the organisation. This
external environmental factor affects the recruitment and selection policy of the TESCO.
As in another case of Thomas and Cook (UK), is the world's best known name among
travelling sectors organisations. It is an international travel company founded in 1841. there are
several factors that influences the performance of the HRM department of the Thomas and Cook
(UK) as it increases in number of the competitors and changes in competitor’s action influences
the practising of HRM. As the increase in number of competitors as well as increment in types of
tour offers affects the workings of HRM department. The different offers of tours at the low
packages in comparison of Thomas cook affects the number of customers and because of this it
becomes more difficult to perform the functioning like recruitment of guides and talented tour
operators or managers (Stone and Stone, 2013). It influences the policies as well as the practices
of HRM of Thomas and Cook. Economic condition as a valuable HRM practices that can affect
the business of Thomas cook.
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External factors are those influencers which influences the policies and practises of HRM
related to the events and variations takes place within the business entity. The external
influencers include change in ownership, changes in the external management structure, mergers,
acquisitions and significant downsizing or hiring trends. The external environment of
organizations gives drastic affects to HR policies and practices of the business entity as well as
also affects the management of HRM (Turner, Swart and Maylor, 2013). There are several
factors presents within the business entity some of the influencing factors are size of business
entity, entity's structure, top level management and interference of powers and politics.
As in case of Burberry (UK), is the international brands for outwears, mainly famous for
the high quality and designed coats for men and women. The external environmental factors such
as significant downsizing and hiring of trends affects the policies and practices of the HRM of
Burberry (UK). As the employer's sought Employers wanted to recruit fresh good talent from out
of the cities or from far areas with competitive salaries, easier commutes and lower cost of
living, thereby shrinking the talent pool in major cities. This in turn led to candidate shortages in
the Burberry(UK), the external factor affects the workings as well as the policies of the HRM of
within an organisation. There is various specific legislation those are associated with the various
HRM practices. Some of them are mentioned below:
Recruitment and selection are related with certain legislation such as Equality act 1970
and the sex discrimination act 1975 can help employees to protect them from any kind of
unethical behaviour towards the employees. Economic condition can be said as legal norms that
can affective the human resource practices because of new demand and requirement of the
company. Similarly, the other Workforce demographic can also be one of the HRM practices that
can generate older generation retries and a new enters the workforces that can controlled by the
HR department for attracting innovative candidates towards their business.
CONCLUSION
It has been concluded from the above project report that Human resources is an essential
part of an organisation who plays a significant role in assisting organisation to achieve
competitive advantage. For this, HR Management is held liable to implement various HRM
practices such as training and development, rewards and compensation, recruitment and selection
etc. in order to decrease employee retention and increases their work commitment with company
for longer period of time. It also required for HR manager to analyse external as well as external
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environmental factors in order to identify their impacts on HRM policy and practices within
United Kingdom. For this, PESTLE and SWOT analysis has been conducted which identifies the
negative as as well positive impact on HRM practices.
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REFERENCES
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Online
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<http://www.yourarticlelibrary.com/hrm/human-resource-management-functions-
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HR practices of Marks&Spencer. 2018. [Online]. Available through:
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