Strategic HRM and Flexibility: A Case Study of Harrods

This report provides a comprehensive analysis of Harrods' human resource management (HRM) practices, covering various aspects such as the adoption of the Guest model, a comparison of HRM, personnel, and IR practices, and the implications of a strategic HRM approach for line managers and employees. The report examines flexibility models, types of flexibility, and the impact of changes in the labor market on flexible working practices. It also explores discrimination, equal opportunities legislation, and approaches to managing equal opportunities and diversity. Furthermore, the report delves into performance management methods, employee welfare practices, health and safety legislation, and the impact of topical issues on HRM practices. The analysis is supported by research and case study findings, offering insights into Harrods' HRM strategies and their effectiveness.

Contents
L01........................................................................................................................................... 3
P1.1. Explain how the Guests model of Human resource management is adopted at
Harrods.................................................................................................................................3
P1.2. Compare the differences between Storey's definitions of Human resource
management, Personnel and IR practices, by reflecting the Human resource management
practices at Harrods and choose similar organizations which have adopted Personnel or IR
practices............................................................................................................................... 4
P1.3. Assess the implications for line managers and employees of developing a strategic
approach to Human resource management at Harrods.........................................................6
LO2.......................................................................................................................................... 7
P2.1. Explain how a model of flexibility might be applied in practice. Relate this to the
Harrods and reflect your argument with examples...............................................................7
P2.2 Discuss the types of flexibility which may be developed by the Harrods.....................8
P2.3. Argue by assessing the use of flexible working practices from both the employee and
the employer perspective of Harrods....................................................................................9
P2.4. Discuss the impact that changes in the labour market have had on flexible working
practices at Harrods..............................................................................................................9
LO3........................................................................................................................................ 11
P3.1. Explain the forms of discrimination that can take place with special reference to
Harrods...............................................................................................................................11
P3.2. Discuss the practical implications of equal opportunities legislation practiced in
Harrods...............................................................................................................................11
P3.3. Compare the approaches adapted by Harrods to managing equal opportunities and
managing diversity............................................................................................................. 11
LO4........................................................................................................................................ 12
P4.1. Research, Compare and comment on different methods of performance management
adopted by Harrods............................................................................................................ 12
P4.2. Research and assess the approaches to the practice of managing employee welfare in
Harrods...............................................................................................................................12
P4.3. Discuss the implications of health and safety legislation on human resources
practices with special reference to Harrods........................................................................13
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P4.4. Evaluate the impact of one topical issue on human resources practices reflected in the
case study and additional research of Harrods....................................................................13
References.............................................................................................................................. 15
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L01
P1.1. Explain how the Guests model of Human resource management is adopted at
Harrods.
We can identify from the case facts that the company under discussion that is Harrods has
been trying to initiate various new practices related to human resource management. This
decision of renovating the human resource management and related environment came from
the top leaders of the company when they became well aware of the importance of having a
strong culture of human resources management.
There was no underlying theoretical structure to the practices which were implemented in the
company; however the human resource management model with which there were
resemblances is the model that has been opined by Guest.
In view of the fact that the activities carried in the company had been able to produce
consequences those can be linked to the Guest model which has launched in 1989.The major
aim of this model is to improve the practices of human resource management. As per this
model, human resource management can improve in the organisation by use of this 6
dimensions-
 Develop an effective and impressive human resource strategy
 Develop an effective human resource practices
 Human resources results
 Performance outcomes
 Financial outcomes
This particular model bases itself on the understanding that there is almost no connection
between the traditional personnel management systems and the new age human resource
management policies. It has been opined by Guest that the with respect to the nature and the
scope, the new age human resource management and related policies are strategic when
compared to the traditional systems for personnel management. It has also been assured by
the model that it is possible for the human resource management and related activities to
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directly influence various significant business conclusions. Through this model, which states
that the employee relationship is based on the one to one relation of the organization and the
individuals, it has been possible by Guest to associate the behaviour and the commitment of
the employees of the company to the attainment of strategic objectives of the company.
With respect to Harrods we can be view that the structure of the company was changed with
the intention of implementing the strategic human resource management. This approach was
taken by the top leaders of Harrods in view of the fact that they felt the organisational
hierarchy to be very high. They also felt that this factor was leading to some negative impact
on the productivity as well as performance of the company apart from the achievement of
strategic objectives. Hence a flatter structure of the organization was implemented which
helped in assigning various additional responsibilities to the employees in various positions
of the company. This also helped in improving the factor of job satisfaction amongst the
employees in addition to enriching their experience at the workplace. A survey of the worker
also display that as much as 91% of the worker are blessed to work for the organisation.
Some of the employees remarked that, I am very happy and feeling glad to be a part of this
huge brans in the market. While I came in the morning, I enjoy with my colleges and I really
feeling proud to become part of this organisation.
1.2 Comparison of human resource management and personnels management
From the definition of Human resource management, Personnel and IR practices as provided
by Storey, it can be said that the capability of the human resources of the companies as well
as the dedications given away by the human resources can add to the advantage for some of
the organisations. Hence it is also possible for the same resources to impart the companies
with competitive advantages which may not be possible for the different rival companies to
copy within a smaller timeframe. Hence the creation of competitive advantage can also be
revealed to be a function of the dedication as well as capability of the human resources.
Also the definition of human resource management as has been given by Storey differs from
the definition of the traditional personnel and IR practices since as far as the human resource
management is concerned, it will have a strategic aspect to it. Storey has also opined that the
senior managers of the organizations need to pay attention towards the practices of human
resource management apart from the application of the same in the companies. If the
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intention is to attain long term advantages from human resource management practices, the
companies need to slot this in as a function of strategic management. This will be able to
assist for drawing significant contributions from the practices of human resource
management for the organisational ability which also can help in achieving the strategic
goals.
Some of the difference between Storey’s definition of human resource management and
personnel and IR practices are as following:
A. The most fundamental form of personnel and IR practices are achieved through the
contracts those are documented amongst the workers and the company. On the other
hand the human resource management is more strategic in nature and is not restricted
by the contracts it tries lend a hand of assistance to the company’s workforce. For
Harrods the same can be viewed for Harrods where the strategic human resource has
been implemented with an intention of bringing better welfare for the employees.
B. Storey has also confirmed that intention of various practices of personnel
management as well as IR is to prepare the company towards implementing various
rules and regulations which act as the guideline for the employees. But the human
resource attempts to make the employees’ lives easy for various organizational tasks
as well as interactions. For Harrods it can be observed that through various human
resource tools in addition to human resources activities the company has been
attempting to ensure that various employees are attached to the organization and the
organizational goals. This can help the company in going beyond the rulebook and
attach the employees more to the cause of the company.
C. Personnel management and IR practices are fundamentally implemented through
processes which are severe as well as rigid. However the human resource
management fulfils the strategic prerequisites of the company. For Harrods the
shifting of human resource management policies was done in a proactive approach in
which the leadership team of the company understood the requirement of this shift. It
was also felt that some fundamental errors were present in the previous company’s
human resource management policies. It was felt by the leadership team of the
company that the hierarchy in the organisation was very high. They tried to change it
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by introducing a flatter structure. This was done primarily through allocating
increased responsibilities to all the workers.
P1.3. Evaluate the affect for line managers and worker of processing a strategic
approach
In view of the fact that the strategic approach towards human resource management has been
developed for Harrods, all the line managers as well as the other employees also have been
benefited significantly. The benefits received by these people through the modernization of
the human resource management practices are manifold. Some of them are quite straight
forward as well as short term and some of them are more indirect as well as long term in
nature. The aspect which has been influenced in most favourable manner is the new strategy
of coaching as well as mentoring the line managers. This has been able to provide these
people and all the other employees with a clear understanding of the expectations of the
company from them. This has been done through regularizing the informal discussions in
addition to structured advices and feedbacks for the line managers from their immediate
superiors in the system who is more experienced. Line managers are also supported for
talking about the targets and receiving suggestions which can help them in achieving these
goals. This has been mobilized through various face to face interactions with the managers as
well as discussing and deciding the targets for improving the work condition.
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LO2
P2.1. Explain how a model of flexibility might be applied in practice. Relate this to the
Harrods and reflect your argument with examples.
There are various ways through which the model of flexibility can be implemented in the
companies. However the basic requirement for the same is that the company is actually
attentive towards the requirements of the employees. The employees usually expect various
things from the company in addition to the basic provisions made by the organization for
their employees. Hence the first important factor for applying a model of flexibility in
practice is to collect buy in from the all the senior managers as well as the management apart
from the grassroots employees. Otherwise it may not be wise to attempt for successfully
implementing the model of flexibility.
Some of the factors which are needed to be considered at the time of deciding on the
flexibility model are as following:
 The kind of amount which the company needs to spend for implementing the model
 The way the new set up can cater to the critical demands of the consumers
 If the new model will have any negative effect on the quality of the products or
service manufactured by the company and / or the overall performance of it.
There are various steps which Harrods needs to perform with the intention of implementing a
flexibility model:
 Developing a process plan which is cl early understandable as well as coherent for the
implementation of the flexible working in Harrods.
 Post this various roles and responsibilities need to be assigned to various line
managers and the mid to senior level managers of the company. The managers from
the HR wing will also be allocated some roles which will help in smoothening the
progress of the process.
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 Development of awareness for the various level of employees of Harrods regarding
the new flexible model which will be implemented in the company and acquiring their
buy in.
 Realigning the culture of the organisation which can help in the rolling out of this
arrangement of flexible working.
 Include various opportunities as well as the monitoring methods for the system roll
out. The company also needs to evaluate the progress of this flexible working
arrangement.
P2.2 Discuss the types of flexibility which may be developed by the Harrods
In view of the fact that Harrods is operating in the retail industry, the kind of flexible working
which needs to be developed for the company will differ from various other companies.
Some of the types of flexibility which may be developed by the Harrods are as following:
 Reduced working hours: The job in the retail industry is quite a straining one and
hence it is important to reduce the working hours for the employees marginally to
give a boost to the productivity as well as efficiency of them. However the option can
be exercised if the employees agree to a system of variable remuneration linked to the
working hours;
 Part time work: Apart from the flexible work hours, some of the employees in their
respective life stages will be given the option of working part time for a specified
period of time and earn remuneration linked to the same;
 Term time contracts: In this arrangement it can be possible for the workers of Harrods
to work with the company on the basis of a permanent contract as a full time worker
or a part time worker. It will help the workers to make their work lives balances even
in which it is possible for them to pick out unpaid leaves for the duration of the
holidays of the school for their children;
 Compacted working week: In this arrangement it can be possible for the workers of
Harrods to finish the required working hours per week in 4 working days or less than
4 working days in place of five working days. Since the employees will be able to
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complete their required work in 3 or 4 working days in the week, they will get more
time to spend with their families and children during weekend;
 Flexitime: As far as this arrangement is concerned it can be possible for the
employees to vary their total hours of working within daily specified limits;
 Shift swapping: Employees will be given the opportunity to reschedule their shifts
amongst themselves to suit their needs.
P2.3. Argue by assessing the use of flexible working practices from both the employee
and the employer perspective of Harrods
The use of flexible working practices can influence the employee as well as the employers in
a positive manner. Harrods is also no exception. Since this will be advantageous for the
employees as well as the employer, in the long term, the company without much deliberation
can implement the same.
From Harrods’ perspectives, the arrangement of flexible working can prove to be a very
important tool in the retention of the better employees as well as the talented female
employees who tend to leave job due to pressure from family lives. A lot of previous
researchers has opined that flexible working culture helps the company significantly to retain
valuable female workers, who else succumb to the retail working conditions which are very
demanding and leave the job. For this reason the company loses a number of female workers
who could have been excellent employees for the company in view of the fact that they fail to
achieve a work life balance. Also this will ensure that the workers are happy apart from being
satisfied with the job conditions. In view of the fact that they also become content with their
personal lives the efficiency and the productivity increases.
As far as the employees are concerned, they will have a more relaxed work life balance and
this will add to their gratification towards the business. They will also become more aligned o
the objective of Harrods.
P2.4. Discussion abut the implication of changes in the labour market
With the changes in the labour market policies the introduction of flexible work arrangement
can be enforced in Harrods. Some of the other effects of the same can be:
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 Added regulation by the policy makers of the industry as well as the company helping
employees in voicing their opinions on retirement plans without any danger of a
dispute.
 Support for the flexible retirement arrangements in which the workers can work for
part time and get partly paid.
 Termination of the 6 months’ notice period previous to the retirement.
After adopting the flexible working practices in the organisation there has been great
influence in the labour market because employees have able to get opportunity to take their
work from home. This assist in improving the quality and efficiency of employees because
they can easily manage their personnel and professional life easily. In the human resource's
management context, flexibility play a very crucial role through which labour market is
highly beneficial and employees working quality as well as productivity.
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LO3
P3.1. Explain the forms of discrimination that can take place with special reference to
Harrods
There are various forms of discrimination that can take place in work conditions. Some of
them which are relevant for Harrods are discrimination as per gender as well race. Harrods is
a large company with enormous number of female employees as well as employees from
different races and background. These people can be subject to the gender and racial bias.
Harrods has more than 4000 workers with an additional 3,500 agency and concession
employees, the people in the organization will be from a mixture of socio eco geographic
backgrounds. Hence it can be possible to come across occasionally this forms of
discrimination.
P3.2. Discuss the practical implications of equal opportunities legislation practiced in
Harrods
As we have discussed in the previous section the company is exposed to risk of various
discriminations and hence the legislation of equal opportunities can facilitate the company for
stopping all direct or indirect discriminations by the employees of the company, due to racial
or gender reasons. The policies for recruitment apart from the assessment can also be
benefited due to this equal opportunities legislation. This can enable the company in pursuing
legal steps for dissuading various instances of discrimination. As per the act of equal
opportunity legislation, company can not discriminate with any employees on the basis of
age, culture, region, personal relations. This assist in improving the motiovation level of
employees and remove unfair practices at workplace.
P3.3. Comparison of various approaches adopted by harrods
With the intention of managing equal opportunities as well as managing diversities the
company has implemented the strategic human resource management apart from various
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internal regulations which are in line with the guidelines laid out by the policy makers of the
industry in addition to the labour laws.
LO4
P4.1. Comparison of various methods of performance management
As can be understood from the case study of Harrods, the company pursues an annual
appraisal practice which assigns the relative grades to all the workers on the basis of their
performance during the last financial year. On the basis of these grades the reward and
recognition received by the worker is decided. The task of grading the employees is entrusted
to the superiors of the individuals. This is an unbiased and effective process for measuring
performance of the employees and keep the process very objective. Following are various
performance management techniques -
 360 degree- In this technique, employee performance can observe and analyse by his
co-workers, superior, junior etc. It is a kind of feedback process, under which
employee can easily get feedback by his co workers about his performance.
 Performance appraisal- in this technique, employee 's performance assess and analyse
by his supervisor and higher authority. They responsible to provide grading and rating
to employees. The promotional decision can taken on the basis of employees
performance rating.
P4.2. Assessment of the approaches of managing employees welfare
There are various approaches which are currently implemented by Harrods with the intention
of providing various welfare and benefits for the workforce of the company. The company
has been able to develop and manage package of benefits for all the employees successfully
for providing them with required welfare. Following are the components of the package:
Childcare: The eligible employees are given childcare voucher scheme as well as a gift for
the baby.
Season Ticket Loans: Interest free loans for cost of travelling.
Business Clothing: 50% discount on business clothing.
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