Human Resource Management Report: Arcadia Group Ltd. Case Study (2024)

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Arcadia Group Ltd., a large retail firm with a global presence. The report begins with an introduction to HRM, emphasizing its role in managing employees and contributing to organizational goals. It then delves into the core functions of HRM, including workforce planning, recruitment and selection, training and development, performance management, and compensation and benefits. The report examines the strengths and weaknesses of various HRM approaches, such as workforce planning, training and development methods, performance management techniques, and reward systems. It explores how specific HR practices can benefit both employees and the employer, as well as their effectiveness in enhancing organizational profit and productivity. Furthermore, the report highlights the importance of employee relationships and the influence of HRM decision-making within Arcadia Group Ltd. It also analyzes the impact of employment legislation on HRM decisions. Finally, the report addresses the application of HRM practices, preparing a CV for a specific job role and providing notes for an interview. The conclusion summarizes the key findings and insights from the analysis.

HUMAN RESOURCES
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1. HRM functions and their purpose.........................................................................................1
P2 Strength and weakness of approaches of different HRM practices........................................3
LO 2...............................................................................................................................................11
P3 HR practices which can help both the employee and employer of the ARCADIA group
limited........................................................................................................................................11
P4 Effectiveness of different HRM practices in raising organisational profit and productivity...12
LO 3...............................................................................................................................................14
P5 Importance of employee relationship with influence laid by decision making of HRM at
Arcadia Group Ltd.....................................................................................................................14
P6 Employment legislation and their impact on HRM decision making..................................15
LO 4...............................................................................................................................................16
P7 Application of HRM practice...............................................................................................16
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Human resource management (HRM) is the department which is responsible for managing
people in organisation. HR has to give training to staff and have to hire skilled people in the firm
those who can contribute well in meeting with organisational goal. It is the management part that
is more concern about workforce in workplace and their contribution in business unit (Brewster
and et.al., 2016).
Present study is based on Arcadia Group Ltd. It is the private retail firm which offers range
of clothes to consumers. It has employed around 22000 employees those who work in London
and many other countries. It has its outlets across the world, corporation also sell its products and
services through online platform..
Current study will explain purpose of HR function and responsibility of human resource
management. It will describe various internal and external factors that influence decision making
of HR department. Report will define various approaches of employee relationship and its
importance to business. Furthermore, employment legislation and their impact on HRM decision
will be explained in this study. Assignment will prepare CV for specific job role and will prepare
notes for interview in this study.
LO 1
P1. HRM functions and their purpose
Arcadia Group Ltd. is one of the best high fashion brand including 19,000 employees
worldwide. The company established the first chain of ready to wear and bespoke suits in Leeds
which is still the head office. The company started to grow by mid 1960s which then acquires
with Wallis, Miss Selfridge and outfit. In 2002, Arcadia Group joined with Taveta Investments
which expanded their digital business and boost their international growth by establishing
branches and franchises in New York, Las Vegas and Los Angeles. Human Resource
Management helps in managing the people within organization and enables the manager to view
the people as an important resource. This can utilize the workforce for the growth of the
company and self satisfaction of the employees. In Arcadia they treat their employees fairly and
provide various services related to heath issues (Varkkey and Dessler, 2018). Their HR teams
recruit best and talented candidates which are responsible for the organization development and
employee relations. HRM functions plays an important role in current staffing needs and
organizational objectives. There are various functions like managerial and operative functions
1

and are inter-related to the organisational objective of HRM (Morgeson, Brannick and Levine,
2019).
Human Resource planning: It involves the formation of a risk team with a balanced mix of
skills, appropriate staff recruitment and team voluntary appointments. This feature analyses and
identifies employee needs to build effective and innovative teams. The most important HRP
strategy is the development of personnel and employees and provide proper human resource
policies. The aim of personnel planning is to maintain the required skill level, by avoiding lack
of skills in the workforce, to stop the impact of stopping profits from staff that are too little, plan
for succession and establish optimal composition of future employees with the right skills in the
right amount of recruitment. Arcadia Group have 1000 employees giving priority to Group
Functions by providing various types of services which can help their workforce to grow and
succeed (Taylor, Doherty and McGraw, 2015).
Recruitment and selection: The purpose of the recruitment is to provide a sufficient number of
employees who are qualified to fill jobs in an organization. Job analysis, recruitment, and
selection are the main functions of the staff. Appointing a candidate is a pre-selection function
that results in the recruitment of potential candidates for the organization so that management
selects the right candidate from the group. After appointment, the process begins with the
process of selecting the right person with a written exam to review relevant topics, oral
examinations, final interview group discussions, and backgrounds to verify the candidate's
authenticity and authority to identify the job (Bal and De Lange, 2015). HR teams at Arcadia are
responsible for choosing the best candidate within given frame-time.
Training and Development: Training and development programs provide useful ways to ensure
that employees can do their work to an acceptable level. This personnel management function
helps employees to acquire the skills and knowledge to carry out their duties effectively.
Training and development programs are held for new and existing employees. Employees are
prepared for higher responsibilities through training and further education. Talent and
organizational development at Arcadia offers the best training which enhance their skills and
work experience for the future development (Gallagher and Underhill, 2012).
Performance Management: The purpose of this HR function is to measure the effectiveness of
the employees or workforce in context with their performance in completing the jobs. It is the
continuous process where objectives are established and provide coaching feedback to the
2

employees so that they know about their efforts in accomplishing organization goals. Arcadia
oversees the work of employees to ensure that they are acceptable or not. They evaluate the
performance of individuals and teams, connects individual innovation and business profitability.
It also takes into account which tasks should be evaluated and who should evaluate the work of
the employee (Pugh, 2016).
Compensation and benefits: Compensation is also related to staff development in terms of
remuneration, and is an important incentive to motivate employees to a higher level of work
within the organization. The main purpose of this function is to provide compensation like
incentive rewards, promoting teams, individual awards, recognition awards etc. The purpose of
benefits is to maintain the area of employees by fulfilling the common needs of employees like
flexible working hours, better policies such as health insurance (Elkoussa and Williams, 2019).
Arcadia Group uses this feature which motivates employees to achieve rewards, performance
goals, innovation, and profitability through corporate rewards.
P2 Strength and weakness of approaches of different HRM practices
Approaches to workforce planning
It is the process of managing employees and making correct plan to hire right people in
the organisation at right post. Workforce approach, workload and competency approach are
major approaches. Arcadia group follows workforce approach of planning.
Strength Weakness
Workforce approach This helps in hiring capable
workers on the vacant post
Hiring cost through this
approach is very high.
Approaches to training & development
Off the job and on the job are two main approaches of training and development. Arcadia
group takes support of on the job training methods. It gives practical training to staff so that they
can perform well in actual workplace.
Approach Strength Weakness
On the Job method It helps in improving practical
knowledge of workers (Potts
and et.al., 2016)
It is time and cost consuming
approach for the company.
Approaches to performance management
3

360 degrees, trait and self-appraisal are some main performance management approaches
that are used in business units. Arcadia group take support of 360-degree method in order to
measure working of existing staff members.
Approach Strength Weakness
360 degree approach It helps in motivating workers
and evaluating the actual
working of employees
effectively (Shen and Benson,
2016).
It is time consuming process
and increase chances of
getting biased answers
Reward system
Monetary and non-monetary are main approaches of reward management. Arcadia group
implement monetary reward system in its workplace.
Approach Strength Weakness
Monetary approach It motivates employees, as
their needs get fulfilled
effectively by getting
incentives, bonuses
It increases cost of business
and also it is unable to satisfy
needs of each individual in
workplace.
Recruitment and selection approaches
Internal recruiting: Internal recruiting is a process or a method to find out the best
candidates from within the organisation which give benefits to the organisation. The mechanism
formal or informal which can help to identify the quality of internal candidates. And this method
is very common in large companies and it includes things like promotions and referrals of
supervisor (Latorre and et.al., 2016).
External recruitment: The external recruitment is a procedure of organisation which hire
the candidates from outside the organisation, to see if there are any qualified person who can
perform good in existing job vacancies.
Strength Weakness
Internal recruitment approach  Cost of recruitment are
lower: If the budget of
the ARCADIA group
 It can create conflicts
among the colleagues:
Giving opportunity to
4

limited is tight, then to
hiring candidate
internally from the
organisation can save
money because the
organisation don't need
to hire any agencies of
recruitment and for
advertisement
(Marsden, 2017). If a
company hire
candidate internally
than the company will
have those candidates
who already knows the
business and be a part
of running company
and candidates
becomes a fully
productive in just short
period of time.
 They already know
what you are getting:
By recruiting
internally. The HR of
ARCADIA group
limited already have
full information about
the candidates
regarding candidate
productivity , past
the internal candidates
of employees ;leads to
create negative impacts
on morals .If the
organisation already
have someone in mind
than the other
employees feels like
the company is not
recognising their hard
work which they are
doing for their
organisation and
simply feels
demotivated toward
the work.
 Choices could be
limited: Recruiting
internally is easier than
recruiting externally
but it creates limits for
HR because they
already know about the
productivity of
employee and it
creates difficulties for
HR to make decision
in selecting candidates
from ARCADIA group
limited because they
are not getting
5

experience, and
overall performance in
the organisation. This
saves time and without
interviews the
candidate easily get
new job (Jabbour and
et.al., 2015)
anything new and
becomes confuse
regarding the selection
of employee (Grizzetti
and et.al., 2016). If the
organisation already
feel low productivity
internally than this
opportunity to the
internal candidates
cant give new idea and
new focus and can't
bring change in
ARCADIA group
limited.
External recruitment approach  It helps to bring fresh
skills and input to the
table: If the candidates
are hired externally
than it will lead too get
better possibility to
find out best
individuals who have
capabilities to deliver
new skills and give
new growth to the
organisation which
means the external
recruitment provides a
clear vision and better
 Recruitment of
candidates with the
limited understanding:
If the organisation
select the candidates
from outside the
organisation than the
individual have a very
less chance to
understand the
environment of
ARCADIA group
limited which create a
big difference .And it
required more focus,
6

opportunity to the
ARCADIA group
limited.
 It promote better
competition:
Recruitment from
outside the company
will creates
opportunity to face
better competition.
ARCADIA group
limited looks for those
candidates who have
the abilities to handle
different jobs and
those who are capable
of risk taking. This
method helps the
organisation to meet
those types of
characteristics in the
candidates with help of
interview process
(Varkkey and Dessler,
2018).
more time to make
them understand about
how to do work
(Brewster and et.al.,
2016).
 It is time consuming:
Its require more time
as its need
advertisement d need
to face a long
procedure to select
best candidates for the
given vacancy as it
evolve a long
procedure as compare
to internal recruiting.
It comes with issues of
adjustment: sometimes due to
new environment the
employee wont able to adjust
in new organisation and wont
able to coordinates with the
existing employee which leads
to face situation like people
live the organisation.
Strength and weakness to different approaches to selection
Interview method: This is a process which occurs between the interviewer and
interviewee .This process is done to get to know each other also to select and recruit the
candidates for a job. The various approaches are as follows.
7

Method Strength Weakness
Interview method  Its helps to select the
correct candidates: To
hire right candidates
with the help of right
qualification , skills
and experience is very
important for a
ARCADIA group
limited to avoid major
problems in future
whether it relates to
productivity of
company and
discipline of
employees, by
selection the right
candidates on time it
provides a safe zone to
the organisation
because sometimes the
people submit a fake
resume and provide
wrong information and
it creates problems if
they hire such
people .so the
interview helps to
know the candidates
personally (Morgeson,
Brannick and Levine,
 It is an incomplete
process: through the
process of interview
the suitable candidates
can not be selected at
once. one meeting is
not enough to satisfy
the interviewer
demands.
 Lack of attention:
sometimes the real
information can not be
recorded because of
less attention of both
the interviewee and
interviewer and for
good interviewee
proper attention is
must required.
 Time consuming: Time
consuming is a major
weakness of interview
process. sometimes the
interviewers take lot of
time during the process
and needs to clear
various steps of
interview which
consume lots of time
of both the interviewee
8

2019).
 collection of
information: This helps
to record all the details
of candidates .General
information like name
of candidates, address,
qualification etc which
they find out from CV.
but the character and
personality of
candidates is gained
only through the
process of interview
(Taylor, Doherty and
McGraw, 2015).
and the interviewers
LO 2
P3 HR practices which can help both the employee and employer of the ARCADIA group
limited
HRM Practices employer employee
Training and development Training and development is
all about building the strong
and goal oriented work force
which benefits the ARCADIA
group limited which means it
can develop the skill and
knowledge of employer
regarding the recruitment and
Employees perspective
training and development
provide opportunity to the
employees to build new skills
and knowledge so that they
become more expert in their
given task and also gain
opportunity to show their
9

selection of employees (Bal
and De Lange, 2015).
talent which leads to growth of
ARCADIA group limited.
Reward good performance By giving rewards the
employer will give more focus
in recruiting and selection of
employees. And focus on those
candidates which can provide
benefits to their organisation .
Paying bonus to employees for
their good performance which
helps to increase the
motivation towards the work.
Bonus incentives and
compensation increase their
work efficiency and they will
perform more good in every
particular task of ARCADIA
group limited (Potts and et.al.,
2016).
Employee relation Building good relation with
others can make a good
communication between the
employees of organisation
which helps to make good
coordination with other
peoples of ARCADIA group
limited (Pugh, 2016).
The good relationship with
other employee increase the
strength and confidence of
employee to share their ideas
in front of senior of
ARCADIA group Limited.
And this will also lead to
equality.
Conflict resolution This practise helps the
employer to clear the disputes
with employees regarding
recruitment process and give a
direction to employer to take
decisions regarding what is
good and bad for the
organisation.
This practice helps the
employee not to use
inappropriate language and
disrespect full behaviour
which create conflict in front
of senior and subordinates
which can disturb the
environment of ARCADIA
group limited (Grizzetti and
10

et.al., 2016).
P4 Effectiveness of different HRM practices in raising organisational profit and productivity
In an organisation, the HRM practices which are followed supports management of cited
firm to take suitable actions for improving profitability and production capability. Arcadia Group
Ltd will look after in adoption and implementation of range of HRM practices which assists in
development of selected retail organisation. Various human resource management related
practices like recruitment, hiring, training, induction, orientation, performing, promotion and
laying off. Other than this, the employee remuneration and performance management measures
are also well carried off. All these measures supports the business entity to have a good profit
and production capability (Chelladurai and Kerwin, 2018).
Recruitment and hiring measures followed by Arcadia Group Ltd supports in a rise of
productivity and profitability. The recruitment and hiring process is been followed, it allows the
company to have a good accessibility to new and more skilled labours. As the new and more
work force will be recruited or hired, they will bring new ideas. These will assist selected retail
firm to develop innovative product or services, leading to attract higher number of customers,
raising the quality of products, increasing company's sales and buyers satisfaction level with hike
in profitability of organisation.
Induction and orientation programs followed by training are also a very important factor,
which is followed by mentioned firm. It leads to developing good connectivity of new recruits
within the organisation (Jabbour and et.al., 2015). It helps in building up of trust level and having
a good understanding about the functioning and management hierarchy of Arcadia Group Ltd.
This will guide them to perform their respective job roles with ease and increase the productivity
and revenue generation for the corporation (Bratton and Gold, 2017).. On the other hand, skill
development activities which are followed by business entity enhances efficiency of newly
recruits to develop unique and innovative products. It also aids in meeting their customer's needs
and escalate overall profitability and production ability of chosen business enterprise (Grizzetti
and et.al., 2016).
As the employees will perform and their performance will be monitored, it will also have
a positive implications on productivity and profit generation of organisation. Due to training,
their understanding, skills and confidence level will be improved and employees will be able to
11

perform their job roles and responsibilities with a higher efficiency. As the performance level
increases, profitability and goods manufacturing facility will see a raise. The company will be
able to meet the needs of maximum number of its customers, their sales will be increased and it
assists in enhancing the performance and profitability of organisation (DeCenzo, Robbins and
Verhulst, 2016).
LO 3
P5 Importance of employee relationship with influence laid by decision making of HRM at
Arcadia Group Ltd
Employee relationship (ER) is a very important aspect of HRM within a business
enterprise. A good interaction and learning among workers at retail firm will not only improves
productivity but also supports meeting the operational requirements. The interpersonal
connectivity of retail workers which is developed at the work place have a range of benefits and
plays a important role in decision making within business entity. It enhances sustainability and
allow the organisation to have a good performance by deciding feasible policies and action plan
(Cascio, 2015).
The main importance of a good employee relationship for organisation is to control the
occurrence of any sort of interpersonal or department level conflicts or indifferences. Having a
positive communication in between the employees and management enhances the mutual support
and reduces the chances of work place level framework or structure failing. It enhances overall
quality and effectiveness of products and services that are manufactured and offered by Arcadia
group. It guides the HRM department of organisation to make decisions regarding mitigating
conflicts and growth of corporation. People will give positive response on each decision of
managers and this will resolve such kind of complexity in the organisation (Varkkey and
Dessler, 2018).
Other than this, it also controls the rate of employee turnover from the entity. Arcadia
Group Ltd will look after in reducing dropping off rate of their work force. As recruiting and
training new employees is a resource and time consuming process, HRM department will see
through effective retention of their employees.. The sustaining of the employees within
organisation will be a cost beneficial approach for the business entity. It will reduce the
operational cost and decide the controlling of other expenses (Noe and et.al., 2017).
12

Employee relationship also supports in increasing interpersonal coordination among work
force. Developing a good understanding and communicating the plans and ideas to each other
enhance effectiveness of operational activities performed by enterprise. Also, the structural and
technological changes can be easily implemented without any sort of limitation or hindrance.
This will help in meeting the organisational objectives and increase the effectiveness of decision
making by HRM. If the organisation has a good trust level and dedication of its employees, any
sort of decision making will not be a big challenge for management (Taylor, Doherty and
McGraw, 2015). On contrary side, the work force will support any change or decision that will
contribute in there and organisations growth.
The employee relationship is also important for building an efficient team as an efficient
and skilled team with effective communication or interpersonal interaction will perform their
duties or task with a higher preciseness. This leads to develop new and good quality products and
services by Arcadia Group Ltd. Good relationship also supports fulfilment of the individual roles
within a team and achieve their goals. Any decision that can turn out to be obstacle or resistance
for development of work force or employees is been detained in order to sustain performance of
firm in market. For example, if company plan to implement new technologies at workplace then
strong relationship between employees and management will help the business in minimising
resistance (Bal and De Lange, 2015). This support in implementing changes easily and
improving overall performance and productivity of business unit to great extent.
P6 Employment legislation and their impact on HRM decision making
Legislation of employment
Health and safety act 1974: In UK it is mandatory for every organisation who has more than 50
employees to provide health insurance to their employee as per the Affordable Care Act.
Family and medical Leave: In UK it is mandatory for every organisation who has more than 50
employee to allow his employee to take 12 week job protection, unpaid leave in 12 months if
there is any sort of medical issue or family problem. As per the Law it is organisation duty to
take care of the security of the employee during the working shift of the employee. It is
organisation duty to provide safe working area to work for the employee (What is the Health and
Safety at Work Act, 2019)
Equality act 2010: This act states that each employees must get equal opportunity at workplace.
Company cannot discriminate anyone on the bases of sex, race etc. If it happens then employee
13

has right to file case against the employer (Morgeson, Brannick and Levine, 2019). Acadia group
follows this legislation strictly and ensure that all workers get equal salaries, incentives on the
bases of their job performance.
Sex discrimination act 1984: Arcadia group ensures treating all employees on their
performance bases rather than their gender. Earlier many companies were giving more
opportunities to male candidates than female which increases biasness at workplace. In order to
minimise such problems government of UK has made this law which has helped in eliminating
discrimination at workplace. By this way now HR has to ensure that it hires male and female
candidates equally and give them salaries on equal bases.
National minimum wages: It ensures that each worker gets minimum wages which are set by
government. No firm is allow to hire people on less than fix amount salaries.
Impact on HRM Decision making
Due to employment legislation there are many impact on decision making of Arcadia Group
ltd. HRM as after change in legislation management has to provide the safety equipment to the
employee working in the company as employee safety is the responsibilities of the organisation.
Arcadia Group ltd. HRM has to recruit more employee in the company has 12 week leave
allowed by law can cause a loss to the company if there is any medical issue or family issue in
more than 1 employee at the same time. Due to new resignation Arcadia Group ltd. HRM has to
manage Insurance policy of all the employee in the organisation as it has been mandatory by law
to provide health, unemployment and work compensation insurance to each employee working
in the organisation. Arcadia Group ltd (What is the Health and Safety at Work Act, 2019).
LO 4
P7 Application of HRM practice
Job Specification
Job Title Human Resource officer
Report to Department head
Roles & Responsibilities Hiring skilled employees
Retention of workers
Organising training and development programs
Performance management
14

Qualification Completed MBA
Completed graduation from renowned University
Title of the job Human Resource Manager
Date: 18/05/2019
Qualification Essential Desirable Met
Completed MBA
(Human resource
management)
Diploma in management
Yes
Yes
Need of Experience
Three-year experience of
working as human
resource executive
Yes
Personal characteristics
& conduct
Strong communication
skill
Technical skill
Management skill
Yes
Yes
Yes
Roles and
Responsibilities
Arranging training for
staff members
Recruiting people and
Yes
15

retaining them
Measuring performance
of employees
Yes
Yes
Preparatory notes for interview:
 What is your actual requirements related to salary?
 Have you had experience of working as HR?
 Why do you want to work with Arcadia group?
 What were your responsibilities in your previous job?
 Why company should select you?
Criteria for selection
 Person has relevant experience and have degree of necessary education.
 Technically sound person with knowledge of latest software
 Managerial skill with forecasting capabilities.
Score sheet
Candidate’s name………
Category 1 (very good) 2 (Good) 3 (Average) 4 (Poor)
Experience
Management
skills
qualification
Overall score
Offer letter
18 May, 2019
Mrs. Mariya
London
Email: [e-mail]
Dear Mrs. Mariya
We are pleased to inform you that you have been selected for the post of human resource officer.
16

You will have to join from 22 May, 2019. You will have to report to department head. You are
offered 50000 Pound per annual salary for the human resource manager post. Your skills and
experience matched with the vacant post and we are hoping that you will perform well in the
organisation.
Sincerely
Human resource department head
Evaluation of process
For recruiting a skilled employee, HR of company has to follow necessary steps. First it
is essential to prepare job description. This helps in analysing the skill require for the post and
selecting the right candidate on it. Interview notes helps in taking interview of candidate and
evaluating their capabilities (Elkoussa and Williams, 2019). Job offer letter is also given by HR
to the selected candidate, this document is necessary as terms and condition of employment
contact are written in offer letter. Hence it helps in minimising issues in the future.
CONCLUSION
From the above study it has been summarized that the Human resources management of
ARCADIA has to ensure about the proper selection of employee to full fill the business objective
with the help of employee individual talent and skill including various strengths and weakness.
And different HRM practices which has given benefits to both the employee and employer to
enhance their growth in ARCADIA group limited. This summary has cleared the key elements
of internal and external factors of recruitment and selection which has affected the Human
resources management in decision making. HRM practices are beneficial for employees and
employer both, as it helps workers in getting employment opportunities and employer gets
benefit of improved performance of organisation. It is very important for companies to follow
employment law carefully and ensure that it is followed by each employee strictly. Firm has to
give right to its staff members, this aids in conducting operations in smooth and legal manner.
17

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