Analysis of HRM Strategies and External Factors at Marks & Spencer

This report provides an analysis of Human Resource Management (HRM) strategies, specifically focusing on the case of Marks and Spencer (M&S). The introduction highlights the role of HRM in achieving company goals and enhancing productivity. The report delves into various external factors impacting HRM decision-making, including political, economic, socio-cultural, technological, environmental, and legal factors, using a PESTLE analysis framework. Each factor's influence on M&S's HRM practices is discussed, providing insights into how these external forces shape recruitment, training, compensation, and employee relations. Furthermore, the report examines the impact of employee legislation, such as national minimum wages, race and religion laws, working time regulations, sex discrimination laws, and equal pay acts, on HRM strategies. The conclusion summarizes the importance of HRM in business operations and the significance of external factors and employee legislation in influencing HRM decision-making processes.

Human Resource Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Various Factors that impact on HR strategies decision-making..................................................3
Employee legislations involve in HRM decision-making process..............................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................2

INTRODUCTION
Human resource management is process of planning and management of people in the
organization for achievement of company goals. Human resource management is responsible for
enhancing productivity and profitability of company by motivating and influencing customers to
enhances its work. Marks and Spencer is a specialised in providing high quality clothes, food and
home product that operates its business across various nation. It was established in 1884 by
Michael Marks and Thomas Spencer and has 959 stores across UK. This report analysis various
external factors that impact on HR strategies decision-making within an organization such
employment market of UK.
Various Factors that impact on HR strategies decision-making
Human resource department is responsible for managing people to enhance skill and
performance of employee by providing appropriate training and development. HRM take crucial
decision regarding management of people to maximize employee performance and productivity
for achievement of organisational goals (Jezowski, Thome and Calvert, 2018). It also takes care
of policies and system of company so that more and more employees are encouraged to work
effectively for growth and survival of business. It also designs various employees benefit
schemes, plan performance appraisal and reward management. HR manager of Marks and
Spencer is also responsible for building and maintaining strong interrelationship between
employees for smooth operations of business. It helps in bringing changes in environment and
helps in achievement of organisational goals (Putter, 2018). Thus, it can be stated that HRM
plays an important role by managing most important and crucial resource of the company. There
are various decision that are taken by HRM to enhance performance and productivity of
employees. HRM strategics decision such as planing and organizing of people are effect by
various external forces of the company. Therefore, factors that impact on functioning and
strategics decision of HRM can be analysis and evaluated by conducting pestle analysis of Marks
and Spencer. Pestle analysis of Marks and Spencer is as follows:
Pestle Analysis: It is an analytical tool that is used by Marks and Spencer to identify various
external factors that impact on strategic decision-making of HRM (Jiang, Kempinski and
Chappell, 2016). Thus, company by evaluating and analysing various external factor that impact
on HRM decision-making can gain competitive advantages and enhance its profitability.

Political Factor: HRM department has to make companies policies and procedures as per rules,
regulation of government while recruiting, selecting employees in the organisation. Due to
introduction of new workplace's compliance standard Marks and Spencer manager is under
pressure to follow such rules while performing its activities (Nebbak and et.al., 2017). Due to
Brexit, high employment rate in economy so government is forcing companies to recruit large
number of employees. It has impact on decision-making of HR as it has to recruit large number
of employees at the same time have to plan for training and development. HR manager of M&S
while preparing various strategics to motivate and influence employees has to adhere to policies
of government for smooth functioning of business (Epstein and Harding, 2020). If it not prepares
strategics as per government rule it can even lead to close down operations of company and
impact on brand image. It also reduces satisfaction and motivation level thus reducing
productivity and profitability of company. HR has to continuous evaluates various changes or
new policies made by government while operating its function. Thus, it can be said that HR
department has to compiled with various rules and regulation while hiring, training, deciding
compensation and termination of employee. Political factor adversely impact on HRM strategics
decision-making and company objectives.
Economic Factors: It refers to the economic condition or situation of economic of country such
as employment rate, education level and disposable income of people. This factor is also not
controlled by the company and impact adversely on functioning and strategics planning of HRM
of Marks and Spencer. Such as economic of UK is facing situation of recession that means
decreases in disposable income of people and high employment rate in the country. It affects HR
strategics decision-making as manager can hire large number of employees at lower cost that
helps in reducing cost of production and enhance profitability. It also helps HRM department of
Marks and Spencer to decide upon compensation and other benefits to be paid in order to
satisfied needs of employees effectively. As HRM by deciding appropriate compensation
benefits can motivate employees to enhances its performance and productivity for achievement
of organisational goals. Due to sudden change in market because of globalization manager of
Marks and Spencer has to hires such people that can easily adapt to such change without much
resistance. Thus, it can be state that economic factor also impact on strategics decision of HRM
while performing its activities.

Socio-cultural: This external factors includes belief, values and norms preferences of people
living in the society. People of demand changes continuously and firm cannot operates its
function in isolation with society as its includes employees, friends and relative of company.
Marks and Spencer HRM manager has to analysis demographic structure, age of people living in
the society. As if the economic has large number of old generation it cannot hire much youth that
can take active part in growth and success of business (Kadiresan and et.al., 2018). But on other-
hand if economic of country has large number of young generation Human resource department
can hires employees by using innovative and differentiate method in planning compensation
benefit of employees. UK has large number of younger generation so HRM department has to
plan strategics that are attractive and offer interesting benefit to employees. Social-culture also
helps in identifying belief, value preferences of people living in the society so it helps HR
manager of Marks and Spencer in deciding method that are used to influence employees to work
hard for achievement of organisational goals. HRM department by knowing social-culture of the
country is also able to take decision regarding ways to communicate within other employees in
the organisation. It also helpful in effective communication of information and policies as
manager is aware of language and culture used by employees. Thus, it helps in effective
transformation of information and quick decision-making of HR. Social -culture helps HRM
department to build strong relationship with employees and helps in effective coordination thus
reduces effort of HR manager. Strong relationship also helps in effective coordination and
reduces conflict between employees at the same times helps in bring change quickly. Thus, it can
be stated that Social -culture helps HRM department by reducing its efforts and enhancing
coordination and productivity of employees.
Technological Factor: It includes technology and innovation in the country so it also impacts on
HRM decision-making as continuous changes in technology forces HRM to train and develop
employees knowledge and skill to use update technology. Manager of Marks and Spencer has to
plan for training and development of employees as per technical knowledge of people to enhance
its skill and knowledge for achievement of companies goals. Due to digitalization and
globalization company has to adapt to new technology thus plan various method to motivate
employees to use such innovate method in manufacturing of products and services. Thus, it is
explained that technological factor also impact on strategics decision's making of HRM
department of Marks and Spencer.

Environmental Factor: It is factor that have come into existence in recent year due to limit
resources in the environment. Marks and Spencer takes various steps to protect environment
from such hazards for it HRM department of Marks and Spencer has to train employees to make
effectively utilisation of resource and minimise waste reduction to protect environment. When
company make such effort employee are high motivated and enhances their productivity and
performance so such strategics is used by Marks and Spencer for achievement of company
objectives.
Legal Factor: It includes legal law, rule and regulation of country that impact on functioning of
HRM as it has to follow all such legal laws while recruiting, selecting employees in the
organisation (Epstein and Harding, 2020). HRM has to adapt to various legal laws such as
employment law, discriminative and health and safety of employees while operating its function.
Manager of Marks and Spencer company has followed employment law and ensure health and
safety of employees while manufacturing products and services of the company. Manager in
order to motivate employees doesn't discriminate and promote and transfer employees on the
equal basis. Thus, it impacts on HRM strategies decision by enhancing performance and
productivity of employees and helps in achievement of company objectives.
Employee legislations involve in HRM decision-making process
Employees legislation is another external factor that impact on HRM strategics decision
making and help in achievement of organisational goals. It includes legal laws such as
discriminate law, equal pay, race relation and national minimum wages that are to be followed
by HRM while performing its activities. Various legal laws that impact on HRM strategics
decision making are as follows:
National Minimum wages: It means HRM should provide minimum wages to all employees
this law was made by government to protect interest of employee's (Wehrmeyer, 2017). Thus,
national minimum wage forces HR manager of Marks and Spencer to provide minimum wages
to all employees it also helps in enhancing productivity and performance of the employees and
achievement of organisational goals.
Race Religion: Government forces HRM department to promote, transfer and termite employees
in the organization on specific condition. It means HR manager of Marks should not discriminate
employee's on the basis of religion while promoting and transferring employees in the
organisation.

Working time: Company should not force employees to work beyond 8 hours but if employee's
want to work extra they are free to do so. Human resource management of M&S is forced to
apply such rules in its policies and HR could not force employees to work more than 8 hours per
day.
Sex discriminate law: It provides protection to employees on ground of discrimination on the
basis of gender such as male and female (Huemann, Keegan and Turner, 2018). This law forces
HR manager of company not to discriminate between people on gender basis while promotions,
transfer and termination of employee from the organization. HR should pay equal opportunities
and pay to all employees thus motivate them to work hard for growth and survival of business.
Equal Pay Act: Equal pay act is among the major influencer over HRM decision-making in
M&S. To ensure the equality in the organization structure in respect to salary, wages and
remuneration government in UK implemented this act over all corporate organization (Simpson
and et.al., 2020.). This act enables the healthy work culture in company so that proper
organization hierarchy can be maintained in the company. HRM in M&S offers equal salary to
all the employee's in the organization based on the designation and job roles in the company
irrespective of any gender, sex or any discrimination. Women empowerment is the biggest factor
work behind implementation of this act. In past women in company's has witnessed some
discrimination in respect to getting lower pay or salary. To overcome such an issue government
implemented this act. This act also influence the HRM decision-making in respect to offer salary
in process to owner promotion in the M&S. HRM needs to offer equal pay to all the employee's
while promoting to higher designations in the company. This act ensures the effective
organization culture in the company. This act also influence over decision-making in respect to
providing equal development opportunities in the organization.
CONCLUSION
From the above report it can be concluded that HRM department plays an important role
in the functioning of business and helps in achievement of organisational goals. It can also be
explained from above analysis that HRM strategics decision's are effect by various external
factor. Pestle analysis and employee's legislation helps in identifying factors that impact on HR
decision' making. At last, it can be concluded that HR plays an important role in the growth and
success of organization by continuous motivating and influencing employee's to work
effectively.

REFERENCES
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<https://businesscasestudies.co.uk/employment-legislation/>.
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<https://www.businessmanagementideas.com/human-resource-management-2/top-6-
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