Evaluating HRM: Practices, Benefits, and Effectiveness at Harrods

This report provides a comprehensive analysis of Human Resources Management (HRM) practices at Harrods, a luxury retailer. It explores the purpose and function of HRM in workforce planning and resourcing, evaluates different recruitment and selection approaches, and examines the benefits and effectiveness of various HRM practices for both the employer and employees. The report also delves into the importance of employee relations and the impact of employment legislation on HRM decision-making. Furthermore, it includes practical examples such as job specifications, CVs, interview documentation, and a job offer, illustrating the application of HRM practices in a work-related context. The analysis incorporates information from a case study and external research to provide a thorough understanding of HRM at Harrods, highlighting the importance of strategic HRM in enhancing organizational performance and productivity. This document is available on Desklib, a platform providing study tools and resources for students.

HUMAN RESOURCES MANAGEMENT

Table of Contents
Introduction..................................................................................................................................3
Task-1...........................................................................................................................................4
P1 Explain the purpose and function of HRM applicable to workforce planning and resourcing
in Harrods.....................................................................................................................................4
P2 Explain the strengths and weaknesses of different approaches of recruitment and selection
used by Harrods...........................................................................................................................5
Task 2...........................................................................................................................................6
Introduction..................................................................................................................................6
Explain the benefits of different HRM practices within Harrods for both the employer and
employee......................................................................................................................................7
Evaluate the effectiveness of different HRM practices in terms of raising Harrods profit and
productivity..................................................................................................................................9
Explore different methods used in HRM practices in the context of Harrods and evaluate them,
providing examples based information given in the case study as well as through your own
research......................................................................................................................................11
Conclusion.................................................................................................................................11
Task 3.........................................................................................................................................11
P5. Importance of Employee relations and its importance in Harrods with respect to
influencing the HRM decision-making......................................................................................11
P6. Elements of employment legislation and their impact upon HRM decision-making..........12
Task 4.........................................................................................................................................13
P7 Illustrate the application of HRM practices in a work related context, using specific
examples.....................................................................................................................................13
1. The design of a job specification for one of a number of given positions in the organization
....................................................................................................................................................13

2. CV for each student, tailored to apply for one of the positions advertised by another team. 14
3. Documentation of preparatory notes for interviews, interview notes based on selection
criteria and a justified decision of the candidate selected..........................................................17
4. A job offer to the selected candidate......................................................................................17
5. An evaluation of the process and the rationale for conducting appropriate HR practices (M5)
....................................................................................................................................................18
Conclusion.................................................................................................................................19
Reference list..............................................................................................................................20

Introduction
The HRM practices in their administrative, operational and liaising outfit play a pivotal role in
organizational performance and productivity. The following assignment discusses the different
roles and responsibilities of the Human Resource professionals, including workforce planning
and other work-related practices that cover the sphere of required activities through the prism of
Harrods, a luxury Private Limited company based in UK. The company was incorporated in
1824 and hails an establishment of almost two centuries. Harrods deal in a wide range of
products and services that include a variety of sectors and departments and this dynamicity
demands efficient management of distant locations and process domains. Globally it employs
12,000 people and the company’s annual revenue returns stands at £769 million registered in
2015 (Harrod, 2018.). Headquartered in Brompton Road, Knightsbridge, London, the company
has recently been overtaken by the state of Qatar. The assignment makes scope to look into
employment legislations and factors that influence the decision-making process in succession
with examples of job analysis and person specification, added curriculum vitae and offer letters
to inform the framework of the study.

Task-1
P1 Explain the purpose and function of HRM applicable to workforce planning and resourcing in
Harrods
HRM can be defined as a department that manages, control and coordinates employees in any
business organisation. It is a formal approach that identifies the particular needs of any job and
compliments it with employees that suits the best. At Harrod, HRM department recruits staffs
skilled in fashion technology and fabrications (Harrod, 2018). Since, Harrod is clothing and
styling brand, management needs staffs prone to creative urge.
HRM in Harrod serve the purpose of increasing the company production by amplifying
competence of the employees (HARROD, 2018). The roles and functions of HRM in Harrod in
the context of workforce planning and resourcing are as follows:
Recruiting skilled workforce: In order to stay competitive in the market, it is imperative to design
apparels that are eye catching, in fashion and comfortable to wear (Barrick
et al., 2015). While
designing apparels, staffs need to adhere to all these facets. The department also needs to select
employees on the basis of their knowledge regarding current trends and has the ability to create
trend in order to make difference from the other brands.
Retaining labour: Particular attention towards employee satisfaction is paid by HRM at Harrod.
Designing and developing apparels and accessories needs consistent effort and innovative brains
(de Zubielqui
et al., 2014). Such skills can hardly be achieved under framed syllabus and text
books. As such it becomes crucial for Harrod to retain the killed staffs of the organisation.

Figure: 1.1
(Source: de Zubielqui
et al., 2014)
Implementation and monitoring of strategic plans: HRM department at Harrod at the very first
hand chalks out an annual work plan. It then analyses if the current working plan can be covered
by the existing work force in the organisation, or needs more supply of man power. In
accordance to the situation, the company implements strategies to combat with the charted work.
In many cases, the work plan needs alteration.
Another important task served by the HRM is monitoring the implemented plans. That is the
HRM department keeps a check if the entire process is aligned to the designed plan and time
frame (Denicolai
et al., 2016). In many cases, if the department notices slag on part of the
employees to fulfil any project within the desired time frame, it calls in for employee training
and development to boost up the process. It helps the organisation in not only completing tasks
within time, but also endows the company with skilled labours.
Analysing future needs: Workforce planning and recruitment analyses the need of future talents
(Goetsch and Davis, 2014). For example, the HRM department before laying out designs for
expansion and extension of the company examines the actual workforce that is needed and starts
the process of recruitment and selection. The employees are then provided with training and

development programs. Such efforts are taken to enhance the skills of the workers and raise
performance in the new infrastructure provided.
P2 Explain the strengths and weaknesses of different approaches of recruitment and selection
used by Harrods.
In order to meet the business goals and objectives, Harrod makes fine scrutiny over the
recruitment and selection process. The majorly followed recruitment process with its
corresponding advantages and disadvantages are as follows:
Internal sourcing: Harrod at times recruits staffs that already exist within the organisation. That
is, the company intakes staffs working within the organisation in similar, or other departments.
Advantages: Harrod undergoes a cost effective process as the expenses of advertising are helped.
Disadvantages: The selected employee at the same time leaves a position vanacnt that again
needs to be refilled (Hao and Warkentien, 2016).
External Sourcing: A through recruitment and selection process is carried on to fill in the vacant
positions in the company. Harrod advertises vaccines in newspapers, media, online portals etc.
Employees are selected according to the frame designed by the HRM at Harrod.
Advantages: Harrod get hold of fresh new minds, innovative thought process and brand new
talents. The new employees selected are boosted with an acute urge to create incredible products
and thus facilitate the company with innovative products (Rahmouni
et al., 2016).
Disadvantages: The main disadvantage of external sourcing is its expense. Harrod spends a
substantial amount to advertise its vacancies.
It is also a time taking process grade and marks are not sufficient to detect the right kind of
employees needed. The recruitment process in Harrod undergoes practical demonstration.
Third party sourcing: During urgency, Harrod recruits staffs from external agencies and
consultancy firms. Harrod provides the requirement criteria to the external agencies to get
supplies with work force.

Advantages: At the time of need, the company is immediately supplied with staffs (Richardson,
2016).
The process is quite faster compared to other approaches.
Disadvantages: Harrod cannot completely rely on the external agencies about the exact skills and
characteristics that the company requires. Agencies may supply staffs for the sake of meeting
targets and hence, perfection is questionable.
Task 2
Introduction
The report highlights the various models and theories o HRM practices that benefit Harrods in
regulating organizational performance and business productivity. The role of the HRM
organically reflect the value of human capital in a business, which is considered by leading
schools of business scholars as a company’s most important asset. The sphere within which the
HRM of Harrods functions reaps maximum benefit ensuring the expectations in both ends
linking the employees and the employer are effectively met.
Explain the benefits of different HRM practices within Harrods for both the employer and
employee
The HRM of Harrods technically adheres to the Best Fit Model that naturally makes scope for
application and exercise of practices contingent to the demand of the situation (Shields
et al.,
2015). This is manifest in some of their key duties that benefit both the employee and the
employer in a number of ways tabulated below:
Harrods
practice
Details Benefits for employees Benefits for
employersRecruitment
& selection
The process of recruitment
and selection adopted by
Harrods follow the pattern of
both external and internal
recruitment, occasionally
delegating the hiring to
The benefit of referral
recruitment is twofold.
On one hand the working
environment benefits of
upbeat and higher
bonding scopes for
The recruitment and
selection procedure
employed by the
HRM of Harrod can
be listed below:
 In case of

reputed recruiting agencies
and HR consultancy firms.
Additionally the HRM
launches seasonal referral
programmes for the
employees.
taskforce.
Another aspect for the
employee’s profit is
transactional and is
expressed in the referral
bonus he/she receives as
an appendage with the
monthly salary.
external
recruitment, the
painstaking
preparation
ensures the
selection of best
minds and
matching
portfolios to fulfil
job recruitment
that is evident in
competency
mapping.
 Internal
recruitment
ensures enhanced
productivity
through
recognition of
talent within the
internal pool of
merit and is thus
very cheap for
the organization.
 The referral
programme is a
cheap and
efficient process
and secures high
grounds in time-
cost graph since

the probability of
skills remain high
and preparation
for the same costs
a fractionLearning,
development
and training
TNA analysis is performed
by the HRM of Harrods to
identify the organizational
skills and arrange training
and skills development
programmes accordingly.
They also employ succession
planning to encourage
employees to learn acquire
and practice leadership and
team building skills. In
addition employees of select
levels are audited and
prescribed PDP(Personal
Development plans)
It opens pithy career and
future growth
opportunities for
employees helping them
accustom better to the
corporate environment
and work in
organizational context
The employers
benefit hugely with
masterfully planned
training and
induction
programmes and the
investment reflects in
better productivity,
quality and volume,
efficient and
undisruptive flow of
processes and daily
operations.
Job and
workplace
design
Job and workplace design
enables free and flexible
environment and cohesive
task description, a duty
fulfilled by the HRM of
Harrods.
Efficient job and
workplace design helps
regulate flexible working
environment allowing
them to enjoy the benefits
of a healthy work-life
balance that reflects in
enhanced productivity.
This practice
integrates all the
above practices
together providing
the employees with
motivation and
morale that mirrors
in optimal employee
commitment and
engagement. This
strengthens and

fortifies the
employee-employer
relationship (Liao
et
al., 2016)
Evaluate the effectiveness of different HRM practices in terms of raising Harrods profit and
productivity
Type of costs Costs Cost incurred (GBP)
Recruitment cost Job advertising
3000Arranging recruitment,
selection and screening
processes
Training cost Performing training need
analyses
1000
Arranging training materials,
including slides, whiteboards,
digital projectors, other
equipments
2000
Appointing supervisors 5000
Facilities Salary structure and wages 4000
Drafting Health Insurance 3000
Total 18000
Nature of profit/ productivity Profits/ productivity Amount of profit/ productivity
Labour saving Reduced reinvention and
duplication of effort
6000
Productivity enhancement Enhanced style and techniques 10000

of operations
Other Cost Savings Fewer run on errors 6000
Fewer disruptions on
workflow and activities
Other sources of income Referral recruits suggesting
new pilot launches that proved
immensely successful
7000
Total 31000
ROI percentage of the various operational costs of Harrods
% ROI = (benefits / costs) x 100 = 29000/23000 = 1.72
Therefore, ROI= 1.72%
The above table justifies the cash inflow exceeds the operational cost incursions by the various
practices of the HRM exercise at Harrods, thus marking the bright success and functional
efficiency of the human resource department of the company.
Explore different methods used in HRM practices in the context of Harrods and evaluate them,
providing examples based information given in the case study as well as through your own
research
The different methods explored by the HRM of Harrods in terms of raising organizational
efficiency are illustrated below:
Best Fit Model adopted by the HRM at Harrods focuses on approach and practices in context to
the state and condition of the organization. This implies leadership and management styles in
controlling, regulating, organizing and planning resources and raw materials and equipments
involved in maintaining the operational health of the company.
The Best Fit approach helps extract maximum engagement from the employees through
participative leadership styles of path-goal approach and achievement oriented styles to seize
maximum productivity and brand affinity in the market.