Strategic HRM Report: Workforce Management at Harrods Limited

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Harrods Limited. The report begins by defining HRM and its strategic importance in gaining a competitive advantage, emphasizing its role in employee motivation and organizational goal attainment. It then outlines the purpose and functions of HRM concerning workforce planning and resourcing, including staffing needs, performance appraisal, and compensation. The report further details the roles of HRM in recruitment and selection, along with maintaining good working conditions and providing training and development. It explores different recruitment approaches, such as internal and external recruitment, and selection approaches. Task 2 delves into the impact of HRM practices on both employers and employees, discussing training and development, employee relations, employee retention, and conflict resolution. The report highlights the benefits of effective HRM for organizational earnings, productivity, and employee well-being. The report also recommends the use of systematic processes for achieving organizational aims and objectives.

Human Resource
Management

INTRODUCTION
HRM defined as strategic approach for effectively managing of people in organisation in
order to gain competitive advantages. That is designed for increasing to enhance the motivation
level of employees so that they can give their best. Human Resource (HR) department is
responsible for various activities such as performance appraisal, recruitment, reward
management, training and development. functions of HRM department separated into
operational and managerial functions. It is very important for organisation to have effective
HRM in their business so that goal and objectives can be attained. The chosen organisation for
given assignment is Harrods Limited which was founded in 1849 at London, England, United
Kingdom. It is retail organisation providing luxury and quality goods to their consumers. There
are more than 15000 employees working with respective organisation to achieve goal and
objectives. The topics covered in report are purpose and intention of HRM practical to origin and
planning. There are strengths and weaknesses of different approaches to recruitment and
selection which are included in report. performance of HRM practices for leader and worker has
been discussed along with elevation organisational earnings and fecundity. Various component
that can impact judgment making of HRM along with employment legislation has described in
proper manner.
TASK 1
P1
HRM defined as procedure of developing and hiring worker for making them many
valuable to business (Brewster and Hegewisch, 2017). It includes job analyses, recruitment of
right person for job, training and development, communicating, incentives and others. Being the
part of selection process of Harrods, it is very crucial to acquire expert and talented worker for
fulfilment of business objectives. The purpose and functions of HRM applicable to workforce
planning and resourcing are described below:
Intention of HRM
There are various purposes of HRM applicable to workforce planning and resourcing are
described below:
Staffing Needs- HRM department of Harrods focus on staffing needs required in
business. It includes creation of position announcements that helps in identification of job duties

and determining skill level and position (Brewster, 2017). All the activities from job vacancy to
selection and training of employees is done by human resource of respective organisation. This
can helps in better achievement of score and subjective of business in an impelling and efficient
manner.
Performance Appraisal- HR department accountable for the Harrods to evaluate
employer performance in an effective and efficient manner. They are liable to conduct
performance appraisal process which is conduct annually. With this, they can know about their
employees strengths and weaknesses and conduct training and development accordingly to
achieve best outcomes in systematic manner. This is the important purpose of HRM which assist
in achieving functions of business.
Compensation- This is the responsibility of respective organisation to provide fair
compensation as per skill and knowledge of staff working in firm without any discrimination (5
Purposes of the Human Resources Department, 2019). HR has to evaluate and make changes in
pay structure of organisation in order to reach compensation trends for providing employees with
industry acceptable pay. All the legislation related with minimum wages, equal pay should be
followed by Harrods to get desirable outcomes.
Role of HRM
There are various role of HRM which are practical to workforce planning and resourcing.
It also helps in providing natural ability and power for fulfilment of business concern which are
described below:
Recruitment and Selection- Recruitment is defined as procedure of screening and
selecting capable nominee for specified job profile (5 Major Functions of Human Resource
Management, 2019). It is very crucial for Harrods to implement proper staffing plans and assess
required amount of worker for given job profile. Both recruitment and selection are essential for
respective organisation as it helps in cost reduction of business. It is the role of HRM to recruit
and select highly skilled and talented workforce for achievement of business objectives. As
employees are the person who are overall responsible for success and failure of business by
utilising skills and knowledge.
Maintaining Good Working Conditions- This is the responsibility of HRM to provide
healthy and good working environment to work force (Brewster, 2017). With this, they can
easily provide motivation to employees of respective organisation for achievement of business

objectives. HR has to provide both financial and non-financial benefits to staffs to encourage and
motivate them for higher performance. The maintenance of good working conditions leads
employees to be satisfied and happy with their job profile and organisation.
Training and Development- The T&D are regarded as important role of HRM. This is
an attempt for improving both current and upcoming show of staff by acceleration quality and
their skills and knowledge. With this, respective organisation can provide endowment and power
to their working force for fulfilment of business objectives in an effectual and efficient style. It
should be provided on regular basis in order to upgrade their staff's ability, skills and knowledge.
P2
Human resource manager of Harrods has to conduct recruitment and selection in order to
select right nominee for given profile for achievement of goals and objectives in an effective and
cost-effective way. The different approaches used by respective organisation for recruitment and
selection along with their capability and powerlessness are described below:
Recruitment Approach
There are various method acting of recruitment such as inner and outer which helps
organisation to determine and select right and suitable candidates for given profile or vacant
position in organisation (Recruitment: Internal v External Recruitment, 2018). They are
described below:
Internal Recruitment- It is defined as method where organisation fills their vacancy or
post with existing workforce within organisation. This is the easiest and simple methods which
can be adopted by Harrods for recruiting candidates required for different posts. They can use
transfers and promotion to recruit candidates. The strengths and weaknesses of internal
recruitment are described below:
Strengths Weaknesses
 Promotion and transfer are quicker and
cheaper way for recruiting employees.
 In internal recruitment process,
employees of the firm already had
appropriate knowledge about business
operational practices thus for them it
 The promotion and transfer limit
number of potential candidates for
given job profile.
 There is lack of ideas from outside
because of internal recruitments.

could be easy to handle further
positions.
External Recruitment- It is defined as method where organisation fill vacancy from
outside. This method required effective procedure in order to invite large number of candidates.
Harrods has adopted walk in interview and campus recruitment for external approach. This carry
both positive and negative points which are described below:
Strengths Weaknesses
 Walk in interview and campus
recruitment assist organisation in hiring
best and suitable candidates for
assigned post.
 This recruitment process helps
respective organisation in bringing
innovation and creativity within firm .
 External recruitment is expensive and
longer process in respect of
organisation and participants as well.
 The employees already working in
organisation feel demotivated and
unsatisfied because they does not get
opportunity to take promotions.
Selection Approach
It is defined as procedure of choosing suitable and right nominee for empty job place in
enterprise (What is Selection, 2019). This is also referred as procedure of interviewing candidates
and evaluating qualities and skills for particular job and choosing suitable among them. The
selection of right candidates helps in attainment of business objectives. There are different
methods which are used by respective organisation such as group discussion and face to face
interview. Out of these, most suitable methods is interview where interviewer easily judge
candidates and their skills and abilities required for business. The strengths and weaknesses of
selection approach are described below:
Strengths Weaknesses
 The interview method of selection
approach helps interviewer to know
about skills, capability and knowledge
 The selection process can contain
biased decision that can be partial for

of various candidates and selecting best
out of them.
 With Selection approach, organisation
can hire suitable and right candidates as
per requirement of business.
further candidates.
 This process takes a long duration of
decision making for HR in order to
choose a correct candidate for their
firm.
Therefore, both recruitment and selection are important for respective organisation. These
approaches are successful and achieve main goal and objectives through hiring of skilled and
capable employees required in business. It is recommended to respective organisation to apply
internal and external recruitment where internal includes transfer & promotions and external
includes campus recruitment & walk in interview. In this, use of systematic process helps in
achievement of organisation aims and objectives.
TASK 2
P3
HRM is a procedure that helps in managing organisational activities in effective manner
in order to retain talent in firm for a desired duration. It is obligation of a manager to handle all
functions of an organisation which helps them to protect interests of both employers and
employees. In context to Harrods, human resource managers identify different ways to cut labour
costs, provide training which helps in development of an organisation and manage employee
relations which is beneficial for employers. On the other hand, for employees it helps to protect
their rights and ensure working environment by implementing employment and labour law.
Various HRM activity and their welfare for employers and employees are mentioned below:
Training and Development- The primary responsibility of human resource managers is
to provide proper training and ensure appropriate working of employees (Chelladurai and
Kerwin, 2018). It is beneficial for employers of Harrods as by providing training to workers, this
will lead to improve sales of their luxury goods, customers relations and service skills.
Employers receive advance and efficient working procedures by grooming their employees for
new techniques.
For employees, regular training opportunities provided by Harrods enhance their
knowledge and develop their skills to produce trendy clothes and goods. This will provide them

better career opportunities and will also secure their position in respective company. Through
this, workers are able to achieve their individual targets as well as objectives of enterprise.
Employee Relation- It refers to manager's attempt to manage relationships between
employers and employees working in an organisation (Delery and Roumpi, 2017). According to
managers of Harrods, purpose of employee relations is to strengthen relationship of employer-
employee. This can be beneficial for employer as it helps to identify and resolve issues, assist
with legal matters and maintain harmony at workplace. This will lead to healthy and peaceful
working environment that assists in improving productivity.
For employees, maintaining employer-employee relationship will lead to compatibility
between them. In Harrods, employees with proper awareness of their rights and good relations
with superiors are encouraged to achieve their goals and maintain healthy relationships. This will
gain their motive level and interest to give top-grade at workplace.
Employee Retention- It means various plans and policies which let employees stick to a
company for a longer period of time. This is also necessary for Harrods because to hire
appropriate candidate for their organisation that assist them in attaining target objectives and
goals effectively. It's beneficial for employer to retain existing employees in respective company
as it costs high to recruit and arrange various training programmes for new employees. Employee
retention helps to maintain sound environment at working place because old workers are at the
stage to attain targets for Harrods more efficiently than new ones.
It is beneficial for employees to stick at one organisation due to maintain employee
retention scheme in organisation. For this managers needs to supply various payment to existing
worker. This will lead them to achieve their objectives and enhance their motivation to work
hard. To retain workers in company Harrods also provides several incentives, trainings and
flexible working environment to increase performance and productivity level.
Conflict resolution- This is defined as a way to find peaceful solution to a dispute or
disagreement between two or more parties (Guest, 2017). Harrods also take various actions to
maintain peace in company by resolving all kinds of issues either personal or professional. For
employers working in this firm its beneficial to maintain healthy environment without any
conflicts. This will increase working interests, productivity and profitability of respective
organisation.

It's beneficial for employees of Harrods to work in environment where conflicts are
resolved time-to-time by their managers, this will encourage their morale and working interests.
This will guide employees to build relationships with employers and generates their new insight
for a particular situation.
P4
HRM pattern sometimes works as functions of HRM which perform to reach goals and
objectives effectively. Effectiveness of different HRM practices helps to raise profitability ratio
as well as productivity of Harrods. This can be described as:
Employee retention- In Harrods, employee retention practice plays a vital role in
efficient working and achievement of targets. Strategies of employee retention requires to be
formed in a manner that could be beneficial for both employers and employees. This can reduce
costs and time involving in hiring process and training programmes organised to improve
efficiency of new employees. On the other side, reduction in costs leads towards increase in
profits of respective company. This helps employees to gain motivation and improve their
morale which ultimately results in increase of productivity and reducing turnover of this
organisation.
Conflict resolution- Manager's one of the major responsibility is to reduce
contraventions among employers and employees and solve conflicts by making effective
communication between them and understanding their individual point of view (Hecklau and et.
al., 2016). Conflict resolution in Harrods results in enhancement of ability to make better
decisions of business. This guides company to be an initiatory of various profitable events and
generates higher return on investment by pulling manpower in same direction. Conflict
resolution in an industry results in absenteeism reduction of employees which will increase
interaction between them. All these factors aids Harrods to attain high profit value by improving
productivity of organisation.
Training and development- For a business organisation, it is required to pay their
maximum attention towards the productivity enhancement practices that assist them in
developing business growth opportunities. Proper training to workers can increase their
motivation, morale to perform best and job satisfaction among employees. When employees of
this company are fully motivated, it results in grabbing opportunity of business development
effectively. This will ultimately encourage production of goods effectively to increase profits.

Employee relations- This mention to kinship between employers and employees of an
enterprise (Jabbour and de Sousa Jabbour, 2016). Blissful employees of business enterprise put
their best into work and are more productive. In context to Harrods, positive relationship of
employees with their superiors and peers depicts smarter and efficient work by them. This can
leads to higher productivity and performance in respective firm. Positive and sound environment
also results in high retention rates and less absenteeism. Relationship among superiors and
subordinates directly reflects upon working in the enterprise. It is requisite for HR administrator
of Harrods to maintain employee relations for higher productivity level and profitability ratio of
it.
Performance appraisal- Performance appraisal is important for employees as this is a
feedback from top level management to its workers in relation to their performance. This can
help employees to recognise their own importance in the organisation. Through this, they can
cognisance motivated and product with their full potential. This can put great impact on
production capacity of Harrods and attainment of high level profits.
Motivation- Employee motivation is most important for an organisation to perform at
their highest level. In context to Harrods, when worker are motivated towards their product they
will put their best efforts to achieve targets of this enterprise. There are many factors such as
employee satisfaction, efficiency, employee development and their communication skills can
increase proportionately with higher motivation level. This concludes that development of an
employee in the firm develops working environment positively and results in accomplishment of
objectives. Effective application of these factors raise organisational profits and fruitfulness.
TASK 3
P5
Employee dealings is defined as organisation's efforts in managing relationship among
employees and employers (What Is Employee Relations? - Definition & Concept, 2019). It is
very important for business to have good relation with their workforce for achievement of goal
and objectives in an impressive and efficient way. In case of respective organisation, great
employee relations leads to clean and equal direction to each and every staff so that they will be
attached to their jobs and remain loyal towards business. This assist in preventing and resolving
problems which are raised at work place. It focus on issues related with work life balance, pay &

profit and safe working conditions. The value of worker relations in respect to determiner HRM
decision making are described below:
Improves Profitability and Productivity- The strong employment relations helps in
creating positive atmosphere within organisation which assist in increasing employee motivation
(John and Taylor, 2016). Harrods focus on improving employee relation programs which aid in
increasing fruitfulness and profitability of commercial enterprise in effective manner. For
example, if there is good kinship among employer and worker then they focus on increasing
profitability and productivity of business which influence better decision making. Without strong
bonding they cannot achieve goal and objectives of business. Therefore, HR manager of firm
required to take appropriate decisions that aid in improving profitability and productivity of firm.
Increase Employee Loyalty- In an organisation employee relation practices play an
essential role that assist in enhancing employee loyalty. To create employee loyalty, management
of firm needed to implement different strategies through which they can engage them in different
business activities. Therefore, it is required for HR manager to motivate employee in order to
enhance their loyalty easily. They are the part of organisation and should be included in decision
making of business so that profits can be maximised. Therefore, in case of retail sector, need and
demand of consumers are changed on regular basis so organisation wants loyal and motivated
staff who can work for them which can be possible by providing pleasant work culture and
included in decision making.
Reduced Conflicts- The positive, friendly and healthy environment leads to reduce in
conflict at workplace (Kianto, Sáenz and Aramburu, 2017). Less conflict at organisation resulted
in more productive and effectiveness at business. If any issues arise in Harrods then HRM has to
deal with it in proper manner so that business does not get affected from it. It involves employees
in HRM decision making that helps in creating strong bonding, reducing conflicts and
misunderstanding. It is the duty of respective organisation to cut down battle among staffs and
employee by providing them all required facilities so that better results can be achieved in
effective and efficient manner. As it is said, happy workforce is productive workforce in
organisation. There should be strong employer and employee relationship for success and growth
of business.
Easy Delegation- The strong relationship among employee and employer helps in easy
delegation of task and work in organisation (Kim and Bae, 2017). The employees should be