Strategic HRM at Harrods: Guest Model, Flexibility and Legislation

This report provides a comprehensive analysis of human resource management (HRM) practices at Harrods, a renowned UK-based retail company. It begins by explaining the Guest model of HRM adopted by Harrods, focusing on its strategic approach to enhance employee engagement and its impact on various aspects like HRM practices, results, and financial outcomes. The report then compares Storey's definition of HRM, personnel, and Industrial Relations (IR) practices, reflecting on their application within Harrods. It further explores the implications of developing a strategic approach to HRM for line managers and employees. The report delves into the application of flexibility models within Harrods, detailing different types of flexibility, including flexible working methods, hours, and locations, and examines these from both employer and employee viewpoints. It addresses the impact of flexible working practices on the labor market. The report also examines different forms of discrimination and the practical implications of equal opportunities legislation within Harrods. Finally, it compares various performance management methods, approaches to employee welfare, and the implications of health and safety legislation on HR practices, concluding with a discussion on the impact of human resource issues. The report aims to provide insights into the strategic HRM practices and their practical implications within a major retail organization.

MANAGING
HUMAN RESOURCE
1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Explaining guest model of HRM adopted at Harrods ...........................................................3
1.2 Comparing the difference between Storey's definition of HRM, Personnel and IR practices
by reflecting HRM practices at Harrods......................................................................................5
1.3 Implications for Line managers and employees of developing a strategic approach to
HRM at Harrods...........................................................................................................................6
TASK 2............................................................................................................................................6
2.1Explaining how a model of flexibility can be applied within Harrods ..................................6
2.2 Types of flexibility that can be developed by the Harrods ...................................................7
2.3 Use of flexible working practices from both the employer and employee view points of
Harrods ........................................................................................................................................8
2.4 The impact of changes in the labor market due to flexible working practices at Harrods....8
TASK 3............................................................................................................................................9
3.1 Different form of discrimination within Harrods .................................................................9
3.2 Practical implications of equal opportunities legislation practiced in Harrods.....................9
TASK 4..........................................................................................................................................11
4.1 Comparing different methods of performance management...............................................11
4.2 Approaches for managing the practice of employee welfare..............................................11
4.3 Implication of health and safety legislation on human resources practices ........................12
4.4 Impact of human resources issues ......................................................................................12
Conclusion.....................................................................................................................................13
REFERENCES..............................................................................................................................14
2

INTRODUCTION
Managing human resource is a key function designed for the administration of
individuals working within an entity to attain long term objectives and goals. It further considers
various policies, systems and procedures to manage employees. The main aim of overseeing
human resource within organization is to maximize the performance of individual in order to
attain the strategic goals of company smoothly (Baum, 2012). This further involves various
processes like recruitment and selection of employees, orientation of new recruited individual,
training and development etc. It further considers the follow up of various regulations and
policies lay by the government for the benefit of human resources of the organization. In this
report, different aspects of human resource management in context of the Harrods will be
studied.
Harrods is the UK based private company which is renowned for its retail services. It is
also known for its Knightsbridge store which has over 1 million square feet of commercial space
with more than 330 various departments. The strong brand value of company is focused on five
factors; British, Innovation, Luxury, Service and Sensation. Harrods has major strength in terms
of 4,000 number of manpower with an addition 3,500 agencies and concession employees. In
this report, the implications of guest model of HRM that is adopted at Harrods will be described.
In addition to this, various types of flexibility that can be developed by brand will be explained.
Further, the implications of health and safety legislation on HR practices of company will be
described. The approaches to the practice of managing employee welfare in Harrods will be
identified and assessed.
TASK 1
1.1 Explaining guest model of HRM adopted at Harrods
Guest Model of HRM focused on the strategic management practices within company
(Nigam and et.al., 2011). As per this model, HRM is characteristically different from
conventional personnel management. It is further concentrated on six key dimensions of analysis
which are as follows:
 HRM strategy: It regards to the strategy employed at Harrods to enhance the employee
engagement that would assure prosperity and growth of business in diverse market. For
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this aspect, it focuses on increasing employee engagement as it has been identified by the
management that engaged employee is more productive as compared to others (Tomé,
2011).
 HRM practices: It refers to recruitment, selection, training and development etc adopted
by company. In this respect, recruitment and selection practices help business to attract
potential candidates to apply for the vacant job post. With the aid of training and
development program, the skills of individual are enhanced to match the industry
requirement. The main aim of HRM practices within Harrods is to enhance the career
opportunities for employees so that it benefits both employees as well as company.
 HRM results: HRM practices lead to various advantages for business like enhanced
loyalty and quality which is further gained with the help of employee engagement
strategy (Mathis, Jackson and Valentine, 2013). However, it is important for company to
convey the strategic objectives, vision and mission of company so they know what is
expected from them.
 Behaviour results: Through proper implementation of key HR practices, various
behaviour results can be obtained in terms of employees like commitment, strong
motivation, cooperation, employee engagement etc. With this aspect, company is able
to retain its employees for long run within company.
 Performance results: With the assistance of best HR practices and strategy employed
by Harrods, the business will attain performance results in terms of improved quality,
work quantity, enhanced productivity and innovation.
 Financial results: Company will also get economic returns with the help of its present
HR practices and strategies like enhanced earnings and high return on investments
(Cowling and Mailer, 2013). This will help in improving the economic position of
Harrods in market.
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1.2 Comparing the difference between Storey's definition of HRM, Personnel and IR practices by
reflecting HRM practices at Harrods
According to the Storey's definition of HRM, IR practices and personnel there are large
number of variation between these terms. The difference between these approaches can be
understood in the context of Harrods. As per the Storey definition, HRM model is founded on the
27 elements which further help in making HRM practices distinct from that of traditional
personnel management approach (Becker and Huselid, 2006). Thereafter, it also distinguished
the HRM practices from that of Industrial relation practices (IR) based on various elements.
Furthermore, the Storey classified the 27 elements within the four key aspects like, Beliefs and
assumptions, strategic concept, line management and key levers. Further , as per this model
personnel management is distinct part from that of HRM of the entity. On the contrast, HRM
model by Guest states that personnel management is important component of the entire HRM of
the organization. However, Harrods is presently using Storey's model due to its easy practical
applicability. Further, it makes convenient to analyze the HR practices and conducting a
investigation on management of human resources within the organization (Collins and Smith,
2006). On he contrast, Sainsbury is also using Storey model like Hr which further help it in
5
Illustration 1: Guest Model
(Source: Akgün and et. al., 2007)

performing better in the department. Further, both Harrods and Sainsbury ensure they consider
personnel management as an important approach for the operational management.
1.3 Implications for Line managers and employees of developing a strategic approach to HRM
at Harrods
Since, its inception that engaged employees perform better and is more productive than
that of others therefore, strategic approach of HRM employed within cited company is focused
on attaining superior level of employee engagement. In this respect, needs and expectations of
employees are identified that can be fulfilled by management for enhancing their level of
satisfaction. Line manager act as a bridge between employees, management and other resources
(Goldman and et. al., 2006). Line managers help in increasing the employee engagement within
Harrods by inculcating strong interpersonal relationship between management and human
resources within company. Further, line mangers have direct link with employees so they
identify their issues and resolve them on time to prevent dissatisfaction among them. It is the
sole responsibility of line manager to build sound communication with the employees and
thereby enhance their engagement with company. The line managers further help in
implementing viable changes within business and avoiding the issues of change resistance
(Hallberg and Schaufeli, 2006). With this aspect, they also support the strategic approach of
Harrods and take consideration of personnel management. Thereafter, line managers critically
review the performance of the employees and render them valuable feedback that help in
improving their future performance. Along with this, training and development session are
organized by line manager based on the identified grooming needs of employees.
TASK 2
2.1Explaining how a model of flexibility can be applied within Harrods
With the help of flexibility aspect, management of company ensures that employees are
comfortable and satisfied while performing various operations within Harrods. With this aspect,
management takes due consideration of the needs of human resources and in turn enhance their
commitment towards organization. To ensure flexibility within company, management devise
such policies that supports its flexibility aspect (Heidenreich and Bischoff, 2008). The positive
behavior of employees due to the flexibility rendered to them will state that Harrods is willing to
change. Further, flexibility will also help in enhancing the commitment among employees as
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there needs are better taken care off within company. This will further have positive impact on
the production of Harrods and result in enhancement in sales and proficiency. In order to apply
the flexibility within company, management can focus on the flexibility requirement of the
manpower while devising strategy. For instance, leaves of workers can be circumscribed in the
beginning of the year so employees are cognizant about leave availability and plan their time off
accordingly (Dowling, Festing and Engle, 2008). Further, flexibility can be assured for
employees by changing particular kind of leave to other class. For instance, changing the non
paid leaves to paid one in case of peculiar cases. Likewise, changes can be made in shift timings
of employees considering their needs etc.
2.2 Types of flexibility that can be developed by the Harrods
There are various kinds of strategies that can be developed by the management of
company to ensure flexibility which can be as follows:
 Flexible working methods: It refers to offering part time and full time jobs as per the
need of employees.
 Flexible working hours: The employees can customize their working hours by taking
approval of their reporting executive (Harzing and Pinnington, 2010). With this aspect,
they can work less on a specific day and balance those hours by working more on other
day.
 Work from home: Harrods provide work from home flexibility where if employee is
unable to come at workplace due to some genuine reason he/she can opt for work from
home.
 Location Flexibility: Company provide location flexibility to its employees where they
are free to decide the location where they want to work (Pareek, 2006). However, it
depends upon the availability of the similar job at selected location.
 Flexibility in employee leaves: With this aspect, employees in Harrods can adjust the
one kind of leave to other by giving a proper reason.
 Shift swapping: The employees can change their shift among themselves by screening
all the needs of company.
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2.3 Use of flexible working practices from both the employer and employee view points of
Harrods
The utilization of negotiable working pattern should be determined from both, the
employer and the employee view points. Since, the flexible working pattern determine the
culture of the Harrods and further get along with the basis of numerous different HR practices
and policies (Schuler and Jackson, 2008). In the context of cited company, the negotiable
working patterns has positive outcome for both, Harrods management and its employees. In this
respect, the flexibility rendered to employees at the work place, enhance their satisfaction level
within organization. Further, due to flexibility offered at company such as, in leave, negotiable
working hours and method, ease in selecting location etc results into improved comfortableness
of employees. This further helps in retaining staff for longer duration and reduces employee
turnover ratio. Thereafter, flexibility enhance motivation level of employees which have positive
outcome on the performance of business. Further, due to flexible working hours employee can
select their shift timings as per their requirement. In this respect, management can identify the
employees comfortable in day and those in night hours and provide them shift timings
accordingly. Therefore, flexibility assist in keeping the retail stores open for 24*7 hours and day.
Hence, it can be stated that flexible working practices are going good for employer and employee
and providing benefits for both of them. It will also help employees in maintaining balance
between work and their social life (Scullion and Collings, 2010). In addition to this, employees
get homely feeling within Harrods due to negotiable working practices which further resulting
into constant improvement in production, sales and proficiency of business.
2.4 The impact of changes in the labor market due to flexible working practices at Harrods
The various changes in the labor market have direct impact on the negotiable working
pattern and models adopted by Harrods. With this aspect, company is able to manage an
inventory of 4000 human resources at present along with extra 3500 agency and concession
employees. Further change in labor market will affect the negotiable working patterns at
company as it is required to react with change in demand and supply of manpower. For instance,
in case of more supply of labor in UK market than company can provide more part time jobs to
individuals (Chand, 2014). In addition to this, organization can can have more negotiable
working pattern for employees so that cost incurred on them can be minimized. On the contrast,
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during the less demand of workforce, Harrods can cut down the number of part time employees
in order to reduce the loss of work by ensuring appropriate availability of the manpower. At
present, company is suffering from labor market trends such as, limited skilled workforce,
extended maternity and paternity leave demand etc. Therefore, by introducing flexible working
hours and making arrangement for part time and work from home facilities, Harrods can
overcome such issues.
TASK 3
3.1 Different form of discrimination within Harrods
Discrimination can be defined as the situation in which preference is provided to one
person over others. There are various forms of discrimination which takes places in Harrods. The
organization needs to take care of this and should take corrective measures to overcome the same
(Odina, 2014). One of the major discrimination is done during the process of recruitment and
selection. It is required by the organization to have a fair and transparent process of selecting
employees. The discrimination takes places on the basis of age, color and background of person.
This creates dissatisfaction among other candidates. On the other side of this, discrimination in
Harrods occurs between males and females. It can be argued that the male employees are given
much preference over females staff. Furthermore, they are also provided with better
opportunities regarding growth and development (Hallberg and Schaufeli, 2006). This has
resulted in rising issues such as high rate of employee turnover and dissatisfaction among them.
Males are also given better pay and incentives over the other female members. Harrods needs to
take corrective measures to eliminate such kind of discrimination from workplace.
3.2 Practical implications of equal opportunities legislation practiced in Harrods
Being such a big brand Harrods is required to ensure the fact that no discrimination takes
place in the organization. This can be done by developing strict rule, regulations and code of
conduct at workplace. Further actions should be take against employees which encourages or get
indulge in any kind of discrimination practices. The brand can also adopt equal opportunity
legislation in its existing plans and operations (Akgün and et. al., 2007). This will help in
creating sense of satisfaction among all workers and will also support in developing a positive
work environment. A team of effective personnel's can be developed which will make sure that
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all rules and regulations are being addressed and followed in the best possible manner. Zero
tolerance policy can be adopted by Harrods in case discrimination. The brand is also required to
provide adequate wages to workers against their work done. Therefore, salary should be
provided on the basis of work, skills and qualification of workers. Along with this, team will also
ensure the fact that male and female workers are treated equally and provided with equal
opportunities regarding growth and development. This will help the brand to increase satisfaction
among its workers and lower down the rate of employee turnover (Collins and Smith, 2006). The
equal opportunities will also assist human resources, in engaging in a better manner within
Harrods. Further, it will also enhance the motivation level of individuals that will help them in
performing in effective and better manner.
3.3 Compare the approaches adapted by Harrods to managing equal opportunities and managing
diversity
In order to manage equal opportunities and managing diversity within Harrods human
resource management generally focuses on implementing different legislation within the
practices and operations (Baum, 2012). So, that Harrods can easily manage the diversity within
their hotel premises. The foremost approach adopted by Harrods is to focus on implementing
anti-discriminatory practices within their HR practices so that they can provide equal
opportunities to all the employees and staff within the hotel industry.
Furthermore, to manage diversity another approach adopted by Harrods include focusing
on different mode of advertisement to recruit and select diversified individual so that they can
serve the diversified need of the individual. In addiction to this, for managing equal opportunities
hospitality organization may also focuses on adopting equal opportunity approach so that they
can recruit women employees within the hotel industry that support in gaining equal
opportunities for both men and women (Nigam and et.al., 2011). Both the approaches adopted by
Harrods will provide proper work culture that support in managing the diversity within the
premises that further support in enhancing the performance of the organization. On the other
hand adopted anti-discriminatory practices also assists in providing equal opportunity to all the
individual without any bias situation.
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TASK 4
4.1 Comparing different methods of performance management
Performance management can be defined as the task which includes the activities such as
monitoring, controlling and reviewing so that manager can ensure that goals are being met in an
effective manner (Baum, 2012). There are several methods used by Harrods for managing the
performance of an employees and they are enumerated below: Rating Scale Method: In production-oriented organization, this method is highly
effective. In this method trait or characteristic of each employee is measured or rated on
the bipolar scale which has several parameters which ranges from poor to excellent
(Nigam and et.al., 2011). This is most beneficial method used by all companies while it
does not give accurate result. Management By Objective (MBO): This is the most useful method of modern
techniques. In this, employees of Harrods and management agrees upon certain
objectives and than they meet during the performance for evaluation and like this
monitoring can be done so that goals can be achieved (Tomé, 2011). This helps in
achieving the goals in a better manner however, it is a time consuming process.
 Ranking Method: This is the most common method used by Harrods and in this
management ranks the employees on the basis of several parameters and this way the
performance of an employee can be assessed so that company can achieve its goals in an
effective manner (Mathis, Jackson and Valentine, 2013). It is a traditional method but
gives proper result about the performance.
4.2 Approaches for managing the practice of employee welfare
Harrods is carrying out various activities which is focused towards the welfare of their
employees. The management has adopted several approaches for managing the practice of
employee welfare and they are described as follows:
 The firm has provided the employees with rest rooms, canteens so that employees can
take a break from the working and can take rest (Cowling and Mailer, 2013).
 Company has also provided the safe and clean working environment to the workforce so
that people can work in a healthier manner. This will help in creating satisfaction among
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workers and will also results in developing positive work environment in the entire
organization.
 Moreover, this organization also provides dispensary and medical services so that any at
the time of emergency first aid can be provided.
 Women and child welfare services are also provided to the workforce in the sake of
employee welfare program (Baum, 2012).
 Along with that, Harrods also provides recreational activities to the employees so that
they can feel relaxed at workplace
4.3 Implication of health and safety legislation on human resources practices
Health and safety legislation enforced by UK government have significant impact on the
practices of human resource within the Harrods. In order to successful implement the health and
safety legislation it may result in modifying and changing the overall structure and policies of
human resource management according to the government legislation (Cowling and Mailer,
2013). For instance; with implementing the health and safety act in the Harrods it would directly
affect the practices of human resources that is human resource will focus on hiring adequate
number of employees and staff within the Harrods as per the guidelines provided by the UK
government. In addition to this, significance of health and safety legislation on the human
resources practices also results in selecting the competent and healthy individual that render
proper services within the hospitality organization.
However, compliance of health and safety within the Harrods is consider as long term
investment that further outcome in ensuring effective performance of the organization, their staff
as well as reputation of the firm. In addition to this, maintaining healthy working environment at
Harrods also result in maintaining proper human relation within the premises that further
outcome in providing quality services to their guests and customers. This will also supports in
enhancing the overall brand image of the business organization.
4.4 Impact of human resources issues
One of the major issues which has been faced by Harrods is regarding increasing rate of
employee turnover. Employees are termed as one of the biggest and most important asset of an
organization. Further, businesses can gain advantage over other market players with the help of
highly skilled and talented personnel's. High rate of employee turnover highlights the fact that
12

the workers of Harrods are highly dissatisfied. In appropriate pay and job timings are considered
as some main reason behind high rate of employee turnover (Becker and Huselid, 2006). Other
than this, the organization also not use different tools and techniques through which it can
motivate its employees. This has affected entire sales and profitability of Harrods. High rate of
employee turnover has resulted in increase the market share of all its major competitors. Along
with this, it has also developed negative environment in the entire organization. It can be also
stated that Harrods needs to take corrective measures to overcome this issues. If measures are not
taken then the brand wont be able to survive in market for long run. It can be also explained that
companies are required to take care of all its employees in effective manner (Tomé, 2011). This
will create satisfaction among workers and will also supports in providing new opportunities for
growth and development.
CONCLUSION
Summing up the entire report, it can be articulated that managing human resource is the
key function within Harrods. They further help in enhancing the productivity and profitability of
organization. The Storey model adopted in company help in human resource management
practices along with personnel's management and industrial relations. The line managers further
play an important role within business by linking the organization with its employees. They
further help in improving the relationship of management and human resources. Thereafter, work
flexibility will help in enhancing the satisfaction level of employees. In this respect, company
use work flexibility like, negotiable leave policy, working hours and method, location flexibility
and shift swapping etc. There are various kinds of discrimination that take place within company
that results into negative image of brand in market. The non compliance of Anti discrimination
policy can result into legal consequences. Furthermore, to compare the performance of
employees working within Harrods, management use various methods like, ranking method,
rating scale and management by objectives. With this aspect, company is able to asses the
performance of various individuals and provide incentives.
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