Evaluating HRM's Impact on Marks & Spencer's Profitability

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Marks & Spencer, focusing on workforce planning, recruitment approaches, employee relations, and the impact of employment legislation. It explores the purpose and functions of HRM, including recruitment and selection, training and development, performance appraisal, and legal compliance. The report also examines the strengths and weaknesses of internal and external recruitment methods. Furthermore, it discusses the benefits of various HRM practices, such as learning and development, job and workplace design, flexible organization, and performance and rewards, for both employers and employees. The effectiveness of these practices in increasing profitability and productivity is also evaluated, emphasizing the importance of employee satisfaction and retention. The report concludes by highlighting the significance of employee relations in HRM decision-making and the key elements of employment legislation and their impact on HRM decisions.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1. Purpose and functions of HRM, applicable to workforce planning and resourcing .......3
P2. Different approaches of recruitment and selection and its strength and weakness..........4
LO2..................................................................................................................................................6
P3. Benefits of different HRM practices for both employer and employee...........................6
P4. Effectiveness of different HRM practices in terms of increasing profits and productivity. .8
LO3..................................................................................................................................................9
P5. Importance of employee relations in terms of influencing HRM decision-making.........9
P6. Key elements of employment legislation and its impacts..............................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human Resource Management(HRM) plays a vital in every business organisation. The
main aim of human resource management is to select and recruit the best employees so that
organisational goals and objectives can be achieved. Human Resource Management also focuses
on providing training and development to its employees so that they feel satisfied and remain in
company. Marks & Spencer is a multinational company and offers variety of products to its
customers. It deals in retail markets thus requires effective human resource personnels to handle
its business activities and operations. In this study report, purpose and functions of human
resource management which are applicable to workforce planning and resourcing in company are
explained. Different approaches of recruitment and its strength and weakness are also discussed.
Effectiveness of HRM practices and employee relation is explained in detail. The report further
explains key elements of employment legislation and its impact on HRM decisions.
LO1
P1. Purpose and functions of HRM, applicable to workforce planning and resourcing
Human resource management is generally defined as an approach which aims at
acquiring, recruiting and developing talent and skills for organisation. It also aims at managing
and motivating those talents and skills in effective way to gain benefits. Marks & Spencer aims
at effectively managing its employees so that they can satisfy customers and results in achieving
overall objectives. Scope of HRM is wide in nature and available in every part of business
organisation(Clair and Milliman, 2017). Recruiting, selecting and providing training to employee
is the main scope and function of HRM. HRM also makes employees satisfied and encouraged
by providing them with performance appraisal and financial incentives. Marks & Spencer
provides safety and security to its employees so that they get satisfied and put their best efforts in
operations of organisation. Different functions and activities of HRM are explained below:
 Recruitment and selection: Marks & Spencer aims at recruiting talented and skilled
employees in business so that they can put their best available knowledge in managing
business activities. HRM focuses on identifying the best method for selection and
recruitment so that it can recruit the best available employees in the organisation.
 Training and development: HRM aims at effectively managing employees so that they
put their efforts and knowledge in right direction. Training and development programs

are given to employees of Marks & Spencer so that they are capable of achieving overall
objectives.
 Performance appraisal: HRM provides various benefits to it employees so that they feel
motivated and encouraged. Performance appraisal are given to employees so that they
feel satisfied and remain in business organisation(Saks, 2015).
 Employee relations: HRM needs to make effective employee relations so that they feel
motivated and satisfied. Employee relations can be maintained by encouraging
employees to take effective part in business activities. HRM needs to make policies
which promotes and develops communication between employees and management.
Effective employee relation will facilitate employees retention in the company and will
also result inn decreasing turnover.
 Legal compliance: HRM also aims at maintaining rules and regulations applicable on
business organisation. Laws relating to maintenance of working conditions, employment
law, tax allowance, proper working hour, etc. needs to be maintained by HRM. Proper
maintenance of legal frameworks will allow organisation to effective manage the
activities and will lead to increase brand image and loyalty.
Best fit vs. Best practice approach of HRM aims at gaining advantage of human personnel
available in business organisation. Best practice model aims that HR practices results in high
commitment which will benefit overall organisation. Best fit approach states that HR practices
and strategies of business needs to aligned to bring effective performance of employees.
Hard and soft models of HRM are different approaches for handling and managing employees
to bring effective outcomes. Hard model focuses on making plans, policies and procedures which
needs to be followed by employees whereas, soft model of HRM treat its employees with dignity
and aims at satisfying them.
Workforce planning is managed by HRM and it is a systematic process. This helps to address
gap between workforce available today and workforce needed in the future(Donate, Peña and
Sanchez de Pablo, 2016). Effective workforce planning ensures Marks & Spencer to fill gap
accurately and accomplish overall objectives.
P2. Different approaches of recruitment and selection and its strength and weakness
There are different approaches of recruitment and selection used by Marks &Spencer
which are explained as below:

Internal Recruitment
HRM aims at recruiting effective employees who can brings effectiveness inn business
process. Recruitment can be done from internal environment of business which can be done
through transfer or promotions of employees. Marks & Spencer adopts internal recruitment so
that it can save time and motivate its current employee by providing them promotion. Internal
recruitment can also be done by employee referrals in which current employee of organisation
refers his friends and family members for vacant positions.
Strength:
 It is cost-effective and also saves times.
 Training and development is not needed as employees are from internal environment of
business.
 It motivates other employees as well to get promotion and increase position and status in
business organisational structure.
 Internal recruitment facilitates retention of employees and increases their trust and
loyalty.
Weakness:
 It limits entry of new ideas and fresh minds in the business environment.
 Internal recruitment facilitate promotion of employees but still leads to make vacant
position.
 Employees who do not get promotions feel dissatisfied and demotivated and may even
fails to put effective efforts.
 Internal recruitment can be done on personal bias basis, HRM may promote it favourite
employees(Griffith and Macartney, 2014).
External Recruitment
External recruitment brings wide options for selecting employees from external
environment of business. Marks & Spencer adopts to external recruitment method to bring
innovative and fresh minds in business organisation. External recruitment can be done through
giving advertisement in TV, Radio, newspaper, etc. Media mix helps greatly in external
recruitment and attracts large numbers of applicants. External recruitment can also be done
through communicating with various employment agencies who have database of qualified

candidates. Campus recruitment is also a type of external recruitment adopted by Marks &
Spencer in which universities offers opportunities for selection and recruitment of students.
Strength:
 External recruitment facilitates pool full of candidates and large options for HRM to
select the best ones.
 Biasing can not be done in external recruitment(Asfaw, Argaw and Bayissa, 2015).
 Entry of fresh and innovative ideas can be met trough external recruitment.
 External recruitment also facilitates highly qualified candidates having knowledge of
external environment and competition, will bring effective benefits for organisation.
Weakness:
 External recruitment costs more and it is also a time consuming process.
 External recruitment leads to increase operation cost of organisation, and it will also
increase administration cost.
 Training and development would be also needed for new employee.
LO2
P3. Benefits of different HRM practices for both employer and employee
Different HRM practices are adopted by Marks & Spencer to gain effective and positive
outcomes which can help in accomplishing overall goals and objectives. HR practices leads to
encourage and motivate employees which leads to increase innovation and creation in business
activities. Various HR practices adopted by Marks & Spencer facilitate benefits to employees as
well and makes them satisfied towards job and facilitate their retention. Some HR practice
adopted by Marks & Spencer are given as below, which benefits both employer and employee.
Learning, Development and Training
HRM aims at recruiting and selecting the best available candidates by using different
methods. Then it aims at providing them with learning, training and development programs so
that it can bring innovation and creation in brininess activities. This will lead to bring
effectiveness in business and accomplishment of overall objectives. Learning refers to providing
employees with knowledge about organisation and making them comfortable. Training is
provided to employees to increase their technical knowledge and skills regarding particular job.

Whereas, development focuses on overall growth of employees and it is long-term
process(Difference Between Training and Development, 2015).
There are various types of training provided to employees such as, team and managerial
training, soft skill, technical, safety and professional training(Barbieri, 2016). Marks & Spencer
aims at identifying training needs for employees by properly analysing and monitoring their
performance. It also manages personal development plan to identify training gaps and make
strategies to fulfil those gaps. This brings benefits for Marks & Spencer to get effective outcomes
in form of innovation and effectiveness in business activities. Employees will get benefits of
training and increasing their potential and skills development.
Job and Workplace Design
HRM aims at maintaining effective working environment that leads to create motivation
for employees and they tend to put their best efforts in activities. HR practice facilitates reward
management system which helps in increasing motivation level of employees. Marks & Spencer
encourages its employees by using both intrinsic and extrinsic methods. Marks & Spencer uses
Maslow's motivational theories to satisfy employees through intrinsic methods and it refers to
satisfying basic needs of employees. Rewards are being provided in form of recognition,
appreciation, sense of achievement to employees which makes them satisfied. Marks & Spencer
uses Adam's equity theory to motivate employees by extrinsic methods. Rewards are being
provided in form of increasing pay, salary, providing promotions, bonus, better working
conditions, job security, etc.
Flexible Organisation
HR practices enables and ensures to provide effective flexible working environment so
that it can bring effectiveness in business activities. Marks & Spencer provides flexibility in
working conditions in form of numerical, functional and structural(Caligiuri, 2014). Handy's
model of flexible organisation refers that organisation can have three types of employees, such
as, full- time employees or part-time employees, or even employees for some specific task.
Flexibility in working environment influences performance level of employee and it also leads to
satisfy them. Satisfied employees put the best efforts in business activities which leads to
effective achievement of goals and brings benefits to employer as well.
Performance and Rewards

HR practices adopted by Marks & Spencer aims at providing satisfaction and motivation
to employees so that they retain in business environment. HRM provides with various training
and development programs to employees so that it can increase their performance level. It also
monitors and measures performance of employees so that deserving employees get rewards and
recognition. HR practices involves Performance management which aims at monitoring
performance of employees and providing them with feedback and rewards. Marks & Spencer
maintains effective rewards system for employees so that it provides satisfaction and motivation
to employees ans also brings benefits of achievement of overall goals and objectives.
P4. Effectiveness of different HRM practices in terms of increasing profits and productivity
HRM aims at maintaining employee relations so that they feel motivated and satisfied
which leads to bring innovation and creation in business activities(Clair and Milliman, 2017).
Effectiveness in operations leads to increase productivity of organisation and profits as well.
Marks & Spencer adopts to various HR practices which bring effective outcomes.
HR practices enables and ensures providing satisfaction to employees. Satisfied
employees put their best efforts in business and related activities. This leads to increase
effectiveness and brings positive outcomes for overall organisation. HR practices also ensures
that employees retain in business which reduces employee turnover. Reduction of employee
turnover can benefit organisation to increase productivity and profits.
HRM practices focuses on providing various training and development programs to
employees to increase performance level. Training and development helps employees to increase
their skills and knowledge and which can benefit them in both personal and professional career.
Increased performance level of employees brings positive and effective results for Marks &
Spencer. It can lead to increase productivity and profits by utilizing skills and knowledge of its
employees.
Marks & Spencer aims at measuring and monitoring performance of employees and
providing rewards to them. HR practice of performance management facilitate in satisfying
customers and it also makes them feel motivated. Performance management practices enables to
increase productivity and profits of Marks & Spencer(Donate, Peña and Sanchez de Pablo,
2016).

LO3
P5. Importance of employee relations in terms of influencing HRM decision-making
HRM aims at maintaining effective employee relations in marks and spencer. Employee
relations refers to strengthening communication between employee and management. Employee
relation also ensures that employee work in comfortable environment. Good employee relation
will benefit organisation to identify issues faced by employees and resolve them effectively. This
also ensures to provide benefits to employees and makes them satisfied. Employee relations
brings effective improvements in performance level which benefits overall organisation. Marks
and spencer adopts following techniques and strategies to develop effective employee relations:
Open and effective communication: HRM needs to make open communication with its
employees. It needs to provide effective and accurate information to employee so that they can
put their efforts in the right way. Employees needs to be told what is expected from them, and
this will make them improve their performance level.
Encourage co-operation: HR needs to make employees work in co-operation with other team
members and employees. Working in co-operation will bring effective results and outcomes.
Team co-operation allows employee to share their ideas, views and suggestions and leads to
increase effectiveness in business operations and activities(5 EFFECTIVE WAYS TO
IMPROVE EMPLOYEE RELATIONS, 2017).
Career development opportunities: HRM needs to provide training and development to
employees to increase potential and skills. Improved skills and knowledge of employees are
beneficial in both personal and professional development. Employee relation can be developed
by Marks and spencer by providing effective career development opportunities to employee and
making them satisfied towards job.
Communicate mission and vision: Employees needs to be aware about mission, vision and
objectives of the organisation they are working for(Ford, 2014). Marks and spencer aims that its
employees work in such a way that it leads to accomplish overall objectives and meet its mission
and vision.
Motivation: Effective employee relations can be maintained by providing motivation and
satisfaction to employees. Marks and Spencer aims at making its business strategies in a way that
it meets needs of employees and also facilitate achievement of overall goals. Motivation can be

provided by maintaining good and safe working conditions by implementing various
employment laws, health and safety measures(Griffith and Macartney, 2014).
P6. Key elements of employment legislation and its impacts
Marks and spencer aims at maintaining effective employee relation so that it can provide
satisfaction to employees and also increase productivity and profits of company. Implementation
of various legislation and laws benefits in maintaining safe and good working environment and
also facilitate satisfaction of employees. Various employment laws protects rights of employees
and also provides certain ethical and social responsibilities to employer. The main aim of
following mentioned laws and regulation is to provide equal opportunities and pay to employees,
maintaining safety and security at work place.
Equality act,2010:
Equality Act is the combination of Race Relations Act, 1976 and Disability
Discrimination Act, 1995. This act aims at providing equal rights and opportunities to employees
and ensures certain roles to organisation so that it can maintain equality. Equality act ensures to
avoid discrimination at work place on the basis of age, gender, marital status, race, colour, caste
or religion. Marks and spencer follows Equality act and does not discriminate its employees and
provides equal opportunities to everyone, this facilitates satisfaction of employees. Equality at
work place brings equal opportunities for everyone and employees feel motivated which brings
effectiveness in business operations.
Employment Protection Act, 1978
This act ensures that organisation provides proper working conditions and environment to
employees. Various rights of employees are being secured under this act(Rauch and Hatak,
2016). Organisation needs to provide flexible working hours, proper pay and salary, benefits of
bonus and job security as well. Marks and spencer aims at protecting rights of employees under
this act and facilitate effective structure of salary and working hours.
Health and Safety at Work Act, 1974
Employees needs to be provided with safe and secure working environment. This act
aims that organisation provides safety and security of its employees. Marks and spencer
maintains safe and good working environment and also safe working equipments and
instruments to employees(Saks, 2015). Health and Safety at Work ensures to provide various
responsibilities to employer for maintaining effective and safe working environment. This act

also ensure that organisation allows safe access and exit for employees. Organisation also needs
to focus on providing first aid treatment to employees, if any injury happens at work place.
Marks and spencer maintains health and safety of its employees and also provides proper training
programs on managing healthy and safety.
Data Protection Act, 1998
This act aims at protecting personal data and information stored on computers or in paper
filing systems or maintained by organisation. This act ensures that organisation does not make
wrong use of personal information of employees and provides legal obligations for the same.
Dismissal and Employment Contracts
Employer and employees both have the right for terminating job. Employer can make use
of dismissal of contracts to terminate employee from job. Employee can also resign from job by
compiling legal rules and regulations. Both employer and employees needs to follow and oblige
various rules and regulation for dismissal of employment contract(Veth And et.al., 2017).
Trade unions and other workplace representatives aims at protecting rights and
welfare of employees. Trade union's role is to safeguard interest of its employees, protect their
reliability, ensures they get proper pay and it also secures various economic benefits.
CONCLUSION
Human resource management aims at maintaining effective working environment so that
it facilitate increased performance level of employees. Various HR practices ensures providing
satisfaction and motivation to employees so that it can lead to bring effectiveness in business
operations and activities. Motivated and satisfied employees retain in business which leads to
reduce employee turnover and benefits in increasing productivity and profits of organisation.
Business organisation maintains various laws and legislation in order to protect rights of its
employees. Effective employee relations brings effective results and outcomes for both employer
and employee.

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