Strategic HRM Analysis: Harrods' Practices, Challenges, and Solutions

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Harrods, a prominent UK department store. It begins with an explanation of the Guest model of HRM adopted by Harrods, emphasizing its focus on employee engagement and strategic alignment. The report then differentiates between Storey's definitions of HRM, personnel, and industrial relations practices, highlighting the implications for line managers and employees. It explores various flexibility models, such as part-time work, work from home, and flexitime, and examines the impact of changes in the labor market. The report also addresses forms of discrimination, equal opportunities legislation, and diversity management approaches within Harrods. Furthermore, it covers performance management methods, employee welfare practices, and the implications of health and safety legislation. The analysis concludes with recommendations for improving HRM practices and achieving organizational goals.

Managing Human Resources

Table of Contents
INTRODUCTION ...............................................................................................................................4
TASK 1.................................................................................................................................................4
P1.1Explaining the Guests model of HRM adopted at Harrods......................................................4
P1.2 Differences between storey’s definitions of HRM, Personnel and IR practices .....................5
P1.3 Implications for line managers and employees of developing a strategic approach to HRM
at Harrods.........................................................................................................................................6
TASK 2 ................................................................................................................................................7
P2.1 Model of flexibility might be applied in practice in Harrods .................................................7
P2.2 Types of flexibility which may be developed by the Harrods.................................................7
P2.3 Argument on use of flexible working practices from employee and employer perspective of
Harrods.............................................................................................................................................8
P2.4 Impact of changes in the labour market on flexible working practices at Harrods.................8
TASK 3.................................................................................................................................................9
P3.1 Forms of discrimination that can take place with special reference to Harrods......................9
P3.2 Practical implications of equal opportunities legislation practices in Harrods.......................9
P3.3 Comparison of approaches adapted by Harrods to managing equal opportunities and
managing diversity ........................................................................................................................10
Task 4..................................................................................................................................................11
P4.1 Methods of performance management adopted by Harrods..................................................11
P4.2 Approaches to the practice of managing employee welfare in Harrods................................11
P4.3 Implications of health and safety legislation on human resources practices in Harrods.......12
P4.4 Impact of one topical issue on human resources practices reflected in the case study of
Harrods...........................................................................................................................................12
CONCLUSION and Recommendations.............................................................................................12
References..........................................................................................................................................14

Illustration Index
Illustration 1: Guest Model of HRM....................................................................................................4

INTRODUCTION
Human Resource Management (HRM) is one of the important functions of any organization.
It refers to managing people within a company for its growth and success. There are various
functions of HRM which are recruitment and selection, training and development, performance
appraisal, job design and analysis, workforce planning and many more. Proper and effective HRM
results to employee job satisfaction which somehow increases worker retention. Along with this, it
helps in providing various career opportunities to the staff members to develop their skills,
knowledge and abilities (Randolph, 2016). The proposed study is based on the given case scenario
of Harrods which is an upmarket department store of the UK. The report comprises different
perspectives of HRM and various ways of developing flexibility within the workplace. Along with
this, study includes impact of equal opportunities and various approaches to HR practices within the
company. In the end, conclusion and recommendations are explained with the key findings and
areas of improvement.
TASK 1
P1.1Explaining the Guests model of HRM adopted at Harrods
Guest Model:
Illustration 1: Guest Model of HRM
Source: (Thomas, 2015)

This model is given by David Guest in 1987. It focuses on six dimensions of the HRM.
These are HRM strategies, practices, outcomes, behaviour, performance and financial outcomes. As
per this model, HRM is entirely different from personnel management. This model gives emphasis
on the points of differences between personnel and HR management. He acknowledged that it is
difficult to establish relationship between the commitment and high performance (Price, 2016).
On the other hand, as per the given case study, Harrods uses Guest model in its HR
department for improving its relationship with the employees. By this model, Retail Company
increases employee’s engagement and trust (Adetoso, Akesinro and Oladejo, 2012). It uses effective
HR strategies with various practices such as training and development, performance appraisals,
hiring, etc for achieving the results for flexibility, quality and commitment. It conducts employee
survey for understanding their reason behind leaving the firm. As per the outcomes, company takes
actions for changing its structure, leadership style, culture and improving communication. With the
help of Guest Model, Harrods gives more emphasis on its staff members as they are the most
important assets to them (Abdallah, 2013).
In the field of training and development, firm conducts training for the development of its
employees on timely basis. Along with this, company provides regular mentoring and coaching
featured with advices, guidance, feedbacks, etc to the workers so that they can improve their
performance. All these strategies and practices lead to gain the trust and loyalty of staff members
which results to their full contribution in the growth and success of Harrods.
P1.2 Differences between storey’s definitions of HRM, Personnel and IR practices
According to Storey, HRM is a strategic and coherent approach of management which helps
in achieving the objectives of the organization by the contribution of its employees.
Differences between the Storey's definition of HRM, Personnel and
IR practices are as follows:
ELEMENTS HRM PERSONNEL AND IR
Key relationship It is related and considers
customer as the priority.
It is associated with labour and
their work management.
Decision Making Fast Slow
Type of communication Direct communication (Alfes,
Shantz, Truss and Soane, 2013)
Indirect communication
Selection Process Integrated and focus is on key
tasks.
Separate and focus is on
marginal task (Ashkenas and
et.al., 2015).

Salary On the basis of performance. By the help of job evaluation.
Corporate Plan It is central. It is marginal.
Management actions As per the need of business. According to the decided
procedures.
Relation with employees Unitarist Pluralist
Key manager General or line manager Personnel manager (Caven,
Lawley and Baker, 2013)
As per the above differentiation, Harrods follows HRM for employee engagement and
accomplishment of its objectives. Company works for fulfilling expectations and needs of the
customers. On the other hand, firm conducts employee survey for understanding the demands and
expectations of its workers and then take actions accordingly. Communication between staff and
higher authorities is direct which results to solve issues and problems effectively. In addition to this,
the leadership style uses by the Harrods is democratic, which shows its emphasis on the workers
(Human Resource management, 2016).
On the other hand, employees of the Matalan who are following personnel practices are not
satisfied and this impacts to their performance. The focus of this firm is on the recruitment of
workers and supporting the store managers as per the policies and procedures in some particular
issues only. In addition to this, staff members are not involved by the company in its decision
making process (Matalan, 2016).
P1.3 Implications for line managers and employees of developing a strategic approach to HRM at
Harrods
While implementing strategic approach to the Harrods, there are large number of
implications for both line managers and employees. Line managers can use this approach for
creating better and effective working environment for the workers. It leads to expertise and
specialize line and senior managers in the field of people management. Along with this, they are
able to manage operational cost effectively. In the organization, line and senior managers can
implement strategic approach for improving their culture, leadership style, policies, practices and
objectives (Armstrong and Taylor, 2014). For example, organizational structure of Harrods was too
hierarchical but as per the requirement, it is changed into flat structure. So, hierarchy in senior
management, change in leadership style and rotation of jobs shows various improvements. Line
manger needs to avoid devising approaches which results to create conflicts and negatively affect
the values and brands of Harrods. Allocation of the resources, monitoring and evaluation of work,

quality analysis, etc are handled by the line managers for enhancing the performance of employees
and organization as well (Ulrich, 2013).
On the other hand, for the employees, range of implication will depends upon their working
performance and contribution to the success and growth of the Harrods. Job security, incentives,
fluctuation of remuneration, etc needs are based on the team work of the staff members not on the
position held by them (Delahaye, 2015). Effective leaders of the firm can guide and direct their
team members properly and efficiently which will lead to innovation and high performance. Along
with this, effective reward system drives staff members towards the better and quality performance
which results to enhance productivity of the company (Bratton and Gold, 2012).
TASK 2
P2.1 Model of flexibility might be applied in practice in Harrods
Flexibility plays major role within the organization for achieving its needs and expectations
along with workers. It is about making changes in the working conditions of employees and
employeers so that they can effectively meet objectives of the company. There are various types of
flexibility models which Harrod can implement in its practices.
 Par-time Working Model:As per this model, those workers who are doing study can join the
organization for part time. It helps them in enhancing their skills, abilities and knowledge in
both practical and theoretical manner. Harrod can use this model for allowing those
candidates who wants to do job with their studies (Flamholtz, 2012).
 Work From Home: In this, companies allow their workers to complete their tasks from
home. This model helps employees in managing their personal and professional work
properly. It leads them to improve quality of their life. Harrods can use this model for those
who needs to stay at home due to any urgency or important work. It helps staff in balancing
their professional and personal life (Purce, 2014).
 Flexitime: As per this approach, employees can vary the time that they start or finish their
work. All they have to focus on the total number of hours which they need to spend at their
workplace. Harrods can use this model for providing flexible timing facility to their staff
members. It helps them in managing their other works also (The different types of workplace
flexibility, 2016).
With the help of above models, Harrods can able to satisy its employees more effectively
and appropriately.

P2.2 Types of flexibility which may be developed by the Harrods.
Harrods can develop various flexibility for satisfying its workers. These will help the
company in achieving its objectives and goals in more effective and efficient manner. With respect
to the flexibility, Harrods can use mobile working model at airports. All the arrangements related to
it are need to be on the basis of broadband technology. With the help of this, employees of the
company can able to access internet or Intranet for work at airports. It will provide various benefits
to the firm such as reduces cost and improve the quality of worker's life (Kehoe, and Wright, 2013).
Along with this, Harrods provides part time and flexible work facilities to its staff members.
This provides various developing and growing opportunities to the workers and due to this, they
feel satisfied. Part-time facility allow employees to join some institutions for enhancement of skills,
abilities and knowledge. In addition to this, company can provide opportunities to the working
mothers who are facing issues of child care but still wants to develop their career. In the present
time, firm hires temporary workers at the time of winter and summer sales (Harrods, 2016.).
On the other hand, company can use job sharing flexibility for developing new skills and
knowledge of workers by allowing them to work with others. This will help them in growing and
developing their career opportunities (Storey, 2014).
P2.3 Argument on use of flexible working practices from employee and employer perspective of
Harrods
Organizations usually applies various flexible working practices for providing several
benefits to their employers and employees. Similarly, Harrods apply these practices for satisfying
the needs and expectations of its workers. Flexible working practices are in the line with the various
equality and diversity legislations for ensuring fair work with quality performance. All these
practices help Harrods in accomplishing its objectives and goals effectively and efficiently
(Bamberger, Biron and Meshoulam, 2014).
With respect to it, part time working is beneficial for students as they give their best to the company
by working as a permanent worker at the time of holidays and take unpaid leave during school
terms. In this, company is not losing its money, time and resources. In contrast to it, permanent
workers take unpaid leaves during holidays. To handle such kind of situation, Harrods uses other
staff to cover the shift and saves the salary (Jiang and et.al., 2012).
Along with this, working from home or remote location provides benefit to the employer
and employee both by minimizing transport and expenditure cost with office space and office
administration expenditure cost. Workers complete their work from other location within the same
time and with high performance (Budhwar and Debrah, 2013).

P2.4 Impact of changes in the labour market on flexible working practices at Harrods
Changes in global market, specially with respect to labour affects the flexible working
practices of various companies in several aspects. Similarly, it affects the flexible working practices
of Harrods also. Changes can be due to increasing involvement of technologies, demographic
changes, recruitment of post graduate and under graduate, etc. Harrods is using such practices
which support best and multiple talents instead of prior specialisation trends. Use of flexible
working practices result to increase affordable and easier working conditions for both employees
and company itself (Labour market flexibility, 2016.).
As per the case study, Harrods spend on its employees as it knows their value and
importance;. These practices helps in completing quality work with effective performance. On the
other hand, changes in demographic do not affect working practices of Harrods because they have
started hiring employees of different background and culture. In contrast to it, increasing
involvement of technologies can affect flexible working practices but Harrods can make changes
accordingly as it knows the place and value of its workers. With the help of lines like “Embracing
diversity of modern Britain today” Harrods is boosting rich cultural diversity within its workplace
(Weber, Festing and Dowling, 2013).
TASK 3
P3.1 Forms of discrimination that can take place with special reference to Harrods
As per the structured study, it can be said that there are number of discrimination activities
that can take place within hospitality organization. Organization can face issues due to
discrimination in payment activities. In other aspect, it can be stated that management of Harrods
can faces unfairness in wages, salaries and other benefits (Agyeman-Budu, 2015). It is essential for
hospitality organization to develop strategies and policies that can protect employees from such
kind of discrimination and lead business to impressive level of success. Rules and regulations
regarding wages and salaries must be followed in appropriate manner as per government standards.
Other than this, national origin discrimination issue is also one of critical factor for the
management of Harrods because it also influences business in negative manner. It is essential for
organization to manage employees from different countries (Boselie, 2010). All employees and
guests must be treated in equalised manner according to consideration of strict rules and regulations
that are established by government of UK. Moreover, religious inequality may also impact
operational activities of hospitality organization. Any kind of unfair activity within hotel due to
differences in religion may create conflict situation for business (Hetherington, 2009). Employees
must not involve in any kind of fun activity that impacts values, beliefs and region of other workers.
It creates negative aspect for business in market place.

P3.2 Practical implications of equal opportunities legislation practices in Harrods
It has been identified that the management of Harrods is more focused towards practical
implementation of equal opportunities' legislation activities. Organization focuses on positive action
attitude in order to promote equal opportunities' legislation practices. In the support of this,
company can focus on activities that can develop dynamic team for effective monitoring of all
operational activities (Kawamura, 2013). Classification of activities can be as procurement and
essential procedures within hotel. This prevents unethical practices in terms of promotion, selection
of employees and cultural violations in company. In other aspect, it can be said that it is beneficial
building positive environment for effective development of various circumstances (Adetoso,
Akesinro and Oladejo, 2012).
Other than this, effective consideration of government legislations is also one of significant
factor that can promote ethical business practice in optimistic manner. Management of Harrods can
promote equal opportunities within organization through proper implementation of legislations and
policies. Management can introduce equity act in all operations of company so that standards can be
maintained in most suitable manner (Nas, 2013). Number of ethical issues can also be overcome by
promotion of equality factor and ethical practice among employee’s. Moreover, Business entity
must define the characteristic of job and necessity of skills to meet post requirements. Human
resource department has to generate a clear notification in term of selection of employees
(Constantin, 2013). In addition to this, it can be said that the job opportunities must be provided in
equalized manner during the recruitment and selection process. Business entity must define the
characteristic of job and necessity of skills to meet post requirements. It will also play a key role in
effective promotion of equal opportunities' legislation activities.
P3.3 Comparison of approaches adapted by Harrods to managing equal opportunities and managing
diversity
There are number of approaches that can be adopted by management of Harrods in order to
manage equal opportunities as well as diversity. In this respect, the organization can continuously
focusing on development of communication system because it provides better opportunity to deal
with diverse issues. It is also beneficial to have improvement in coordination level and manage
diversity within organization (Inkson, 2008). In other aspect, it can be said that the improvement in
coordination level also facilitates employee to work in equal manner and meet objectives. With the
help of effective messaging system manager can easily convey the rules and goals of the company
to employees.
Improved level of information among employees about rules and regulations is beneficial to
promote ethical work practice. It is also advantageous for effective understanding among all
members so that business can have sustainable development. Furthermore, the training and

development program at Harrods is also beneficial for effective promotion of ethical work practice
within organization (Boyd, 2013). Training and development creates awareness among employee’s
about significance of ethical and equalized work conditions. Training and development is better
process as compare to other systems for effective management of diversity and company can
facilitate similar growth chances for all.
TASK 4
P4.1 Methods of performance management adopted by Harrods
As per the structured study, it can be said that there are number of methods of performance
management that can be used by management of Harrods. Classification of techniques can be as
360 degree feedback, reward scheme linkage and behavioural performance. In the support of
behavioural performance, it is essential for management to determine the employees behaviour and
belief in appropriate manner. Supervisor considers ways of working and application of skills and
knowledge by employees at workplace (Press.Rauris, 2012). Top level management must have
detailed information about the employees and their activities so that policies can be designed in
most suitable manner. It also facilitates in understanding of key needs that can accomplish job roles.
Other than this, 360 degree feedback process is most commonly techniques which is used by
the management of Harrods. It provides optimistic identification of employees needs and their
performance. It helps in data collection by building relationship with employees in most appropriate
manner (Vlietstra, 2011). The main motive of this method is to identifying training and educational
needs. In reward scheme, staff can earn some through incentives in form promotion and financial
incentives if employee meets the targets determined by management.
P4.2 Approaches to the practice of managing employee welfare in Harrods.
It has been spotted that there are number of approaches to the practice of managing
employee welfare. Classification of techniques can be as stress management and workers safety
training. In regard to employees safety training, it can be said that the top management of Harrods
can introduce training and development activities to ensure about employees and visitors safety and
security. It is essential to make sure that the employees are well known about the use of safety tools
so that issues can be overcome in appropriate manner (Rauris, 2012). For example, improved level
of information about use of fire extinguisher may overcome fire issues in effective manner. It
reduces the risk of fire within organization. Doctors and other facilities must be provided to
employees and workers in most suitable manner to meet goals.
In addition to this, company can organize various consoling session where workers can
provide information regarding causes of tension. With an assistance of these kinds of developments

within organization the employees can easily handle stressful conditions in easy manner. Workload
can also be managed in easy way by better understanding between company and employees (Boyd,
2013). Moreover, the activities that can improve the coordination among all members are also
beneficial for the organization. Proper arrangement of work activities is also advantageous for the
management of Harrods because it reduces potential of the conflict situation.
P4.3 Implications of health and safety legislation on human resources practices in Harrods.
It is essential for management of Harrods to have proper implementation of health and
saftey legislation because any kind of avoidance in this respect may lead business to conflict
situation. In the support of this, it can be asserted that the Health and safety at work act is most
significant legislation that should be followed by every hospitality organization. It determines high
standards of health and safety at place of work. In other aspect, the health and safety act is also
consist of various guidelines that can enhance opportunities for the business (Inkson, 2008). It helps
in effective accomplishment of various activities such as training and development, production, etc.
Management of Harrods must have proper consideration of various legal aspects that are designed
by the government of UK for fair trade and ethical work conditions. If any kind of avoidance has
spotted by the authorities then it is possible that business firm face conflict situation. For example,
company may have to pay penalty against unethical working and avoidance of standards
(Constantin, 2013). It also protects business from various unethical practice such as conflicts
among employees, etc.
P4.4 Impact of one topical issue on human resources practices reflected in the case study of Harrods
It has been identified that the topical issue in human resource practice impacts operational
activities of hospitality organization in diverse manner. In order to have sustainable development, it
is essential for management to enhance employee engagement. To increase employee involvement
the managers have created changes in organization structure through job enrichment and increment
in responsibilities of workers. In the support of this, it can be said that the business firm also needs
to focus on implementation of new leadership style (Nas, 2013). It is essential for hospitality
organization to ensure that the employees are feeling motivated while working in organization. In
this respect, the participative leadership style can be adopted by management. It will provide regular
interaction with employees and facilitate in finding various innovative ways.
Moreover, management develops new communication system that enables employees in the
process of better coronation and outlines the goals of the company. Internet, social media, and other
communication tools can also be used by the management of Harrods in order to meet goals. It will
allow share information among all members in appropriate manner and lead business to impressive
level of success (Kawamura, 2013)). These practices highly influence the employee’s involvement