Human Resource Management Report: Harrods Case Study and HRM Practices

This report examines Human Resource Management (HRM) practices within the context of a case study focusing on Harrods. It begins by explaining the purpose and functions of HRM, particularly in workforce planning and resource allocation. The report then delves into the strengths and weaknesses of various recruitment and selection approaches, evaluating their effectiveness. It further assesses the advantages of different HRM practices for both employees and employers, including training and development. The report also analyzes the efficiency of HRM practices in raising productivity and profit. The significance of employee relations in HRM decision-making and the impact of employment legislation are also explored. Finally, the report applies HRM practices in a work-related context, offering a comprehensive overview of the subject matter.

Human Resource
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
P1- Explain the purpose and function of HRM which are applicable to workforce planning
and resources in an organisations :..............................................................................................5
P2- Explain the strength and weakness of different approaches to recruitment and selection
process.........................................................................................................................................6
TASK 2............................................................................................................................................8
P3 Evaluate the advantages or benefits of various HRM practices in context of both employee
and employer. .............................................................................................................................8
P4 Examine the efficiency of various HRM practices for raising productivity and profit within
an organisation..........................................................................................................................10
TASK 3..........................................................................................................................................12
P5 Evaluate significance of employee relations in respect of HRM decision making.............12
P6 Identify main elements of employment legislation and their impact on HRM decisions....13
TASK 4..........................................................................................................................................15
P7 Apply HRM practices in work related context....................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19

INTRODUCTION
Human resource management is an approach of recruiting, hiring and developing by
managing precious assets of an organization. The main responsibility of human resource
department of an organization is to create and put effects by overseeing policies for governing
manpower and build a strong relationship with employees of an organization. HRM majorly
concerned with managing and coordinating activities of human resource by effective utilization
of employees, eliminating risk factor and gain higher level of return on investment. This
assignment is rely on Harrods which is a departmental store that situated in Brompton road in
London. It is owned and operated by State of Qatar for sovereign wealth fund. This assignment is
based on purpose and functions of human resource management for planning and resourcing of
an organization. It also includes strength and weaknesses of various approaches of recruitment
and selection. It also includes advantages of various HRM practices in organizational context
with relevance of employee relations for taking important decisions. At last, it includes key
elements of employment legislations to deliver right value.
TASK 1
P1- Explain the purpose and function of HRM which are applicable to workforce planning and
resources in an organisations :
Human Resource Management is described as effective planning of demand and supply
of workforce in an accurate manner for performing business activities in an organisation (An,
2012). The human resource is said to be heart of an organisation, while operating business it is
necessary to satisfy needs of each employee to grow effectively. This could help in enhancing
the business operations in competitive market. It is very important to manage and retain quality
staff for collectively achieving organization's objectives. These practises resulted in improving
market share and helped in generating revenues. Along with this, it has helped in gaining
attentions of shareholder as for balancing financial liquidity in regards to producing and
manufacturing goods (Beare, Caldwell and Millikan, 2018). Human Resource Management
also involves various policies, strategies, functions and purpose that are implemented by firms, to
satisfy their employees as well as consumer in order to improve brand image in specific sector.
Purpose of HRM in workforce planning and managing resource:

The main purpose of Human Resource Management is to achieve long and short term
goals that are designed by higher authority and proper allocation of workforce, funds,
machineries, generating interest of shareholder for investments, improving motivations and
commitment within employee's (Boon and Raven, 2012). The other purposes of HRM include
implement important human resource processes and thereafter generate some norms that are
mandatory for staff to follow while sustaining in work environment of organisations. When
talking about Harrods, manager uses various methods for managing human resource by
increasing satisfaction level when performing business activities in the company. If leaders
effectively uses these steps will result in achieving objectives of the firm.
Functions of HRM -
The key functions of Human Resource Management is recruitment, selections,
performance appraisal, interviews, hiring and firing of staff on their overall performance analysis
in an organisations. While taking in consideration of Harrods, managers has briefly classified
HRM functions in order to operate business activities in work culture. Some of these functions
are mentioned below:
Managing Functions: These functions involves planning, organizing, directing,
controlling and motivating staff members, in regards with retaining them in future for improving
productivity of organisation. In context with Harrods, the manager use this function in an
systematic process, where first stage include forecast demand and supply of workforce, then
comes organizing which include matching of skills of employee's with requirement of job
assigned, the next phase is directing where leaders give directions as well as guidance to each
employee while performing tasks, the fourth stage include motivating where supervisor try their
level best in motivating staff member for quality work production, the last phase is controlling,
where manager monitors behaviour of each employee while working in an organisation (Donate
and de Pablo, 2015). This systematic procedure will result in effective management and
retention of workforce. The efforts which employees gives in their work will result in enhancing
customer relationship.
Operative Functions: These function involves procurement, development,
compensations to workforce and integration for quality production of goods and services which
are offered by any organisations. When talking about Harrods, leaders give emphasis on
important strategy “right applicants at right time and in right place”, while introducing

selections and recruitments procedures in company. A separate office has been allotted for
critically analysing suitable candidates for designated job profile. The managers of human
resource department in Harrods have also adopted some recruitment methods, for attracting pool
of candidates through external and internal recruiting means for identifying suitable applicants
for specified job profile. Other operative functions that are implemented by HR manager are
conducting performance appraisal of their staff members, compensations, and procurement of
personnel etc. (Dul and et. al ., 2012). The procurement functions in operations, include needs of
employees that are to be fulfilled by providing monetary and non monetary benefits which
include proper allocation of funds between every employees. This initiative will result in
gaining sense of loyalty towards company.
P2- Explain the strength and weakness of different approaches to recruitment and selection
process.
Many firms have adapted various approaches while hiring applicant who possess unique
skills that could be effectively utilized in work culture of every sector. When talking about
Harrods, the HR manager have adopted recruitment and selections techniques, for critically
analysing and identifying requirement of demand and supply of workforce while operating
business activities in work environment of the company. These effective tools are mentioned
below:
Recruitment: It is systematic process where recruiter grab attentions of interested bulk
of candidates who have capabilities that are required in job descriptions. This procedure is
further classified as internal and external recruitment. Most managers have implemented various
recruitment techniques like campus placement, telephonic round, walk-in drive and recruit from
online sources like different website, different smartphones applications and through email text
conversations (Durst and Runar Edvardsson, 2012. ). A recruitment process is positive
approach which allow potential candidates to apply for specific job that is matched with their
capabilities. While talking about Harrods, the HR executive used social media technique in
recruiting potential applicant, where LinkedIn and Twitter applications have given platform to
grab opportunities for getting employment in company. Also managers create friendly
environment for applicant and takes feedback from these candidates, who have effectively
participated not much concerned about results in recruitment process.

Selections: The selection process involve face-to-face rounds where interviewer and
interviewee have direct interactions and group round where ample number of applicants have
discussion on specific topic which might include current knowledge that revolves around
national and worldwide (Govindan and et.al ., 2014.). When talking about Harrods, the managers
have given major emphasis on face-to-face interview round, where result showed 64% were
positive, 19% were neutral and remaining 17% have negatively impacted the interview rounds.
Most of the candidates have reached to interview process through online surfing, where the
feedback has came in average.
Strength and Weakness of Recruitment and Selections:
Recruitment Selection
Strength The recruitment process
include internal and external
source for hiring human
resource in organisation. The
Harrods manager have given
emphasis on external sources
where pool of talented
applicant have been attracted.
This external recruitment
policy of Harrods have
identified strengths like
creating opportunities for
external employees, best
candidates could be placed for
role and there are less chances
of partiality in recruitment.
The selection process include
behavioural questions,
administrative skills test, using
personality test and conducting
panel interviews. The Harrods
manager have given major
emphasis on face-to-face
interviews. This steps allows
direct interaction with
interviewee with effective two
way communications. The
technique which are adopted
by manager, have positively
resulted in favour to candidates
in regards with employment.
Weakness The HR team of Harrods
identified that while hiring
candidates the cost incurred is
very high, time consuming and
The leader of Harrods has
found that panel interviews
were very time consuming.
Also face-to-face round is very

screening of quality candidates
have become tough task for
management. The main reason
could be lack of headhunting
skills in employer while
implementing recruitment
process.
tough where infinite number of
questions are raised in front of
interviewee and which are
difficult to be answered. It has
been identified that facing
interview has negative impact,
as the result showed
respondent rates selection
process on average scale
(2.7%) in difficulty standards
which does not allow skilled
applicant to get qualified in
screening test.
TASK 2
P3 Evaluate the advantages or benefits of various HRM practices in context of both employee
and employer
HRM practices are very much important for an organisation to coordinate and deal in
effective manner changes that occurs in an organisation (Kim, Kumar and Kumar, 2012. ). In
context of Harrods, some important HRM practices implied by them and their benefits for
employer and employee are defined as follows:
Recruitment and selection:
Recruitment and selection both are very much important for an organisation in which
recruitment is a chain of activities in which attracting, short-listing and selecting people on
different basis then at last select and appoint the person in an organisation (Klingner, Llorens
and Nalbandian, 2015). On other hand, selection is a process in which one of best candidate will
be chosen who is the most competent for the designation. In context of Harrods, which is a large
departmental store in London and operates at broad level have to select and retain most
competitive staff members. For that purpose, organisation conduct recruitment and selection that

enables to remain always competitive in marketplace. That HRM practice proved helpful for
both employees and employer in best way that are as follows:
Advantages for employees:
Recruitment and selection proved to be beneficial for employees as they can be able to
get wider opportunities for their own career growth and enhancement in positive way (Marshall
and Farahbakhsh, 2013). With help of HRM practices individual can show or give potentiality
for a firm to get desirable objectives in better way. Hence, practice of recruitment and selection
is very much important for an organisation as well as individual.
Advantages for employers:
With recruitment and selection approach of HRM, organisation can be able to get right
kind of personnel who have desired skills and capabilities as per the job requirement to remain
always competitive in marketplace. In order to human resource is not imitable resource in nature
that give unique identity to organisation as well as employer to gain higher productivity in proper
way.
Training and development:
Training and development is one of most important Human resource practice and
includes a systematic set up of various activities in which people get instructions on various
subject matters such as to get technical knowledge and information related to their job. In this
aspect, knowledge is given to employees about working of a machinery for enhance efficiency
level of employees as well as of machinery (Pagell and Shevchenko, 2014). In context of
Harrods as changes occurs in business to remain always competitive in marketplace they have to
given training and development to employee . T&D conducted in two ways which includes on
the job training and off the job training method. There are some advantages or benefits of
training and development in context of Employer and employee that are as follows:
Advantages for Employees:
Training and development HRM practice helps to the employees to gain potential
knowledge on a specific subject matter that is most demanding at current time period. It gives
them career growth and develops confidence level that proved beneficial for both organisation as
well as for individual to remain always competitive in marketplace. So, training and
development is most important for an individual to remain always competitive in marketplace by

acquiring potential knowledge. In context of Harrods, they provide off the job training to
employees so that they can gain competitiveness in fierce world.
Advantages for Employer:
Training and development program proved beneficial for employer that it enhance
employee satisfaction that helps gives sustainability to organisation. When employer gives
training to employees, they able to build strong relationship with them which is very much
important for organisation to get desirable outcomes (Pecl and et. al., 2017.).
From the above discussion, it has been summarised that HRM practices are very much
important for an organisation to deal in effective manner with changes occurs in environment.
P4 Examine the efficiency of various HRM practices for raising productivity and profit within an
organisation
Human resource practices are very much crucial for an organisation to coordinate and
deal in effective manner to raise organisational productivity and profit by gaining competitive
advantages in an organisation. For an organisation, there are various HRM practices that helps it
to manage and coordinate each and every activity in proper way that are as follows:
Compensation and benefits:
Compensation and benefits viewed in combined manner and work as reward for
employees to give motivation for achieving higher productivity. Compensation and benefits are
tangible in effect and in intangible effects are recognition, work life balance and development
(Post and Preston, 2012. ). All are the important factors to give motivation to employees in
giving their best in organisational development and enhancement. When fair compensation and
as per employees efforts rewards should be given they gives their best in organisational
enhancement that ultimately helps in raising profitability and productivity in Harrods. So it is
one of best practice for a organisation to remain always competitive in market.
Achieving work life balance:
Work life balance is one of most important HRM practice in today's busy life to give
some time to employees for their personal life also. In work life balance, flexible working hours,
flexibility in working and drop some activities that take more time and resources while
conducting them in an organisation. It can be possible by managing work and activities by list
out properly. Note time to accomplish a particular work and peak hours of organisational work
all these attributes should be evaluated in proper manner so that work life balance should be

given to employees. In context of Harrods they always focus on giving best working experience
to their employees so that they become creative and productive to achieving organisational goals
and objectives in better way. By organisation devoted there best for their employees then they
also get motivated to give best in work and activities of them. It helps in enhance profitability
and productivity of firm.
Providing security to employees:
The foremost HRM practice is employment security, as life is unpredictable in nature that
create fear in human being. An employer by providing security to their employee and to their
family members is one of important factor to retain a employee for long time in an organisation
(Rosemann and vom Brocke, 2015). To provide security, both formal and informal contract
should be signed in between employer and employee. To provide security, organisation provides
insurance and other facilities that helps in gaining faith of employees. When employees feel
secured and motivated, organisation can be able to gain higher profitability and productivity by
enlarge business opportunities.
Self managed and effective teams:
Self managed and effective team is one of most important HRM practice to coordinate
and manage various projects and teams that build to achieve organisational goals and objectives.
In context of Harrods, they build various teams on basis of skills and capabilities of an individual
with requirement of a specific project. In order to get effective results, organisation have to build
teams on basis of their interest areas and skills with capabilities to achieve potential results in
better way. Effective teams helps to motivate people because they are part of a project which is
challenging in nature that helps in enhance organisational profitability and productivity. Self
managed and effective teams helps in carrying out work and activities in effective way that
ultimately assist in raising organisational profits and productivity.
TASK 3
P5 Evaluate significance of employee relations in respect of HRM decision making
An employee relation is described as efforts done in maintaining effective relationship
between employer-employee, employee-employee and employer-employer, while working as a
unit to achieve long and short term objective (Schaufeli and Taris, 2014). A good leader is one
who manages this relationship in efficient manner by reducing conflict in work culture. There

are various strategies which are been used by managers, in order to satisfy needs of workers as
they are basic resource of company through which business activities have to be performed for
achieving competitive advantage while growing business. Some of the Human resource
strategies which are applied by leaders helps in enhancing employee relations by giving more
value to employee as stakeholders, monetary and non monetary benefits, work-life balance and
safe work environment for staff in organizations. When talking about Harrods, if relationship
between employee is healthy, thereafter will cordially work with other members as a team in
operating business activities (Smith, 2016). The development of strong bonds between
employees will result in effective functioning of production of goods in work environment. If
HR manager of Harrods have made any decision, regarding increase in pay grade scale in their
strategies will have direct impact on workforce, as response will be in positive as this decision
would be accepted by every staff working in the company. If conflict between employee and
employer are very high, it will result in increment of employee turnover rate, that directly
indicates workforce are highly dissatisfied . The turnover ratio would not be a good sign for any
company. This result will have negative influence on brand image of the firm.
There are some key importance of employee relations that influences in HR decision-making that
are as follows:
With help of good employee relation, various kinds of advantages Harrods can reap from
it that influence HR decision making.
Productivity:
With the help of strong employee relations, organisation can be able to communicate with
their staff members in proper way. It creates a positive work environment within the work place
that enhance morale of employees (Sterner and Coria, 2013). In context of Harrods, it invest for
building employee relations program that enables in enhancing productivity of employees that
ultimately leads in enhance profitability of organisation. That factor influence decision-making
of Human resource when positive work environment prevails in organisation they can be better
judge works of their employees and ultimately helps in enhance productivity.
Employee loyalty:
One of the major advantage of good employee relation is employee loyalty. In an
organisation, when working environment is very much positive then employees remain always
optimistic and gives their best in increasing organisational productivity. In context of Harrods,

they with help of employee relation can be able to build faith and loyalty that are very much
important for organisation to gain competitive advantage.
Conflict reduction:
Conflict reduction is very much important for an organisation to deal in effective manner
when people come into organisation from different backgrounds. Cultural diversity hinders self
interest of an organisation as well as employees in giving their best (Testa and Sipe, 2012).
When Harrods emphasise on building strong relationship in employees with motive of people
get involved into activities with harmony by delivering right kind of value and attributes to
organisation. With help of it, organisation can be able to communicate and find out the root
cause of their problem in proper way so that they can create strong understanding in their
employees. It helps in HR decision-making majorly and within positive work environment
organisation can be able to take crucial judgements in respect of employees.
From the above discussion, it has been summarised that employee relation is very much
important for an organisation to deal in effective manner with emerging changes in an
organisation.
P6 Identify main elements of employment legislation and their impact on HRM decisions.
Employment legislations includes various kinds of employment protection measures that
helps in protect self interest of an individual as well as organisation. To protect the rights of
employees organisation apply various kinds of legislations that are as follows:
Equality Act 2010:
Equality act come in existence in October, 2010 that replace the previous law that is
relations act 1976 to give assurance about factors that helps in make environment of workplace
fair (Wickens and et.al, 2015). Treat in fair manner helps to employees to remain always faithful
towards organisation and motivated to give their best for organisational growth and
enhancement. In context of Harrods it is very much necessary to apply various laws and
regulations to protect self interest of employees in better way. In that equality regards with equal
pay for equal work, promotions, work environment and many more factors comes under it. The
main responsibility of a Human resource manager is to evaluate the proper application of that
law and no one misuse it. That law also work to protect employees from any kind of
discrimination at workplace related to age, gender discrimination and religion or belief many
more. In that situation, role of human resource is very much important to give rights under which