Strategic Human Resource Management Report: Marks & Spencer

This report delves into the strategic human resource management (SHRM) practices of Marks and Spencer (M&S). It begins with an introduction to SHRM, emphasizing its role in enhancing employee retention, work quality, and mutual benefits within the organization. The report provides an overview of M&S's operations and then proceeds to analyze its SHRM through a SWOT analysis, identifying strengths, weaknesses, opportunities, and threats. It then outlines the importance of human resource planning based on the SWOT analysis, focusing on workforce assessment, demand forecasting, and strategy development. The report also examines the significance of HR policies in mitigating risks, boosting employee confidence, and providing strategic direction. Furthermore, it explores various HRM models applicable to M&S, including the Contingency Model, Best Practice Model, Harvard Framework, and Guest's Model, highlighting their contributions to the company's HRM approach. The report concludes by summarizing the key findings and their implications for M&S's SHRM.

STRATEGIC HUMAN
RESOURCE MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1.1 Contribution of strategic HRM to organisation in context of Marks and Spencer...........1
1.2. SWOT analysis of Marks and Spencer............................................................................3
2.1. Human Resource planning based on SWOT analysis.....................................................4
3.1. Human resource policy and its importance in M&S.......................................................5
4.1. Importance of structure and culture to SHRM of Marks and Spencer............................6
4.2. Effectiveness of HRM in M&S using contingency model..............................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic Human Resource Management refers to hiring, maintaining discipline, creating
payrolls and working with employees in coordination to boost retention rate, improve quality of
work experience and increase mutual benefits in a company (Jackson and Seo, 2010). It is a
modern concept of HRM and deals with utilization of available resources in the best possible
way. It highlights overall development of employees along with achieving goals and objectives
of an organisation.
Marks and Spencer is a clothing brand based in UK founded in 1884. It has over 900
stores across UK. This report covers all the strategic HRM functions and contributions to the
firm that take place. SWOT analysis will help in the evaluation of company and determine its
position in business sector (Li, Frenkel and Sanders, 2011). HRM planning will be performed to
improve efficiency and effectiveness of performances and HR policies will be created to ensure
effectiveness of decisions taken by management of company.
TASK
1.1. Contribution of strategic HRM to organisation in context of Marks and Spencer.
Human resource management can be defined as the function that give values to
recruitment, management, and directing of employees in an organization. HRM function is not
limited by recruiting and selecting of employees for organization, it also deals with main issues
of company like monetary, non- monetary benefits, motivation, training, development, etc. of
people working for organization. The main characteristics of HRM approach is to improve
quality, efficiency, productivity, satisfaction of employees working in Marks and Spencer by
polishing their existing talent, discovering creativity in them and by improvising inbuilt talent of
employees which they have in them but are unaware of that (DuBois and Dubois, 2012).
Complaints, ideas, problems, and conflicts between employees of Marks and Spencer are to be
solved by HRM of company.
Some important models of HRM at Marks and Spencer are:
 Contingency model: Proponent in this model believes that there is no specific technique
and style to deal with for leading the organization. May a style or technique which is
effective in this situation cannot be applied on other situations. So the HRM team of
Marks and Spencer has to form new style, that completely depends upon current
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situation that is being faced by organization and internal as well as external factors of an
environment. Only by making needed changes in old techniques that are being used by
company to compete against competitors in market and to retain their business profits.
(Sudin, 2011).
 The best practice model: This model denotes to give high profile to HR and to provide
them with best practices, commitment from top level of management to implement best
practices in Marks and Spencer for rewarding employees.
 Harvard Framework: This model states that HR policies of Marks and Spencer are
affected by the situational factors and stakeholders interest. Policies that are chosen by
mangers can affect numerous factors like four Cs i.e. competence, congruence,
commitment, and cost effectiveness.
 Guest's Model: This model discusses six factors of HRM that are- strategy, practices,
HR management outcome, performance, financial outcomes, behavioural outcomes.
These all models and characteristics of Human Resource Management of Marks and
Spencer represents duties, responsibilities, and contributions to organization (Minbaeva, 2013).
In addition to these, there are some activities that HRM team of Marks and Spencer has to
perform in order to conduct smooth functioning of organization, which are as follows:
Planning of staffing: To recruit new employees to organization, HRM has to conduct a
proper planning process for staffing to find out requirement of human resources in organization.
Benefits planning: Benefits to employees should be properly planned by HRM to
motivate and encourage group efforts of Marks and Spencer into one common direction i.e.
organizational goal.
Planning for recruitment: Recruitment process should be planned very nicely. To give
jobs to new talent and smarter employees into the company.
HRM and personnel management, both are completely different from each other. As
personnel management of Marks and Spencer includes payroll and ensuring compliance to
employment law (Schalk, Timmerman and van den Heuvel, 2013). In contrast to this HR
management considers workers as the most important element of organization and deals with
their growth and improving them.
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1.2. SWOT analysis of Marks and Spencer
Strength
Brand recognition in the market is high.
Diversified variety of goods.
Increased number of stores across the world.
Availability of designer brands.
Weakness
poor publicity of products due to non-trendy
stores.
increased cost because of manual working.
Opportunity
Internationalisation can result in maximising
global presence in the markets.
Splitting customers in market to allow
customers to share similar interests by Market
Segmentation.
Threat
Increasing number of competitors all over the
world in different markets.
Swot analysis is done to review internal factors of business in terms of strength, weakness,
opportunity, and threat in contrast of external business environment (Wright and McMahan,
2011). Following are the outcomes of SWOT analysis of Marks and Spencer:
Brand recognition in market is very high which is pillar of company's strength. Marks
and Spencer is UK's one of the leading brand which is almost known by everyone in market as
well as across world. It is more preferred by customers because of diversified range of products
under one roof which facilitates customers to finish their shopping on a single go. This
diversified range of products also help customers to choose the best out of many. Marks and
Spencer has about 900 outlets all over the world with 600 in UK only. After completion of
analysis on company's strength, the outcome came out is that company's main focus is on
diversified range of products delivered to customers on different outlets which help organization
to grow their business across the world (Martin and Reddington, 2010).
Even after providing wide range of products to public, Marks and Spencer has a
weakness i.e. non trendy stores or outlets with old fashioned stock in the market. General people
has a wrong assumption that men's wear and women's wear are for old people not for youth,
making business low. So company has to put emphasis on sales and had to develop strategies so
that sales for young people can be encouraged. Another weakness that is being highlighted of
Marks and Spencer i.e. following of old techniques rather than implementing the new one. This
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type of techniques hinders efficiency of employees leading in the increased price of products.
Outcome that arises from above research is that, old fashioned and use of old techniques are
weaknesses that company is facing and should use modern techniques to increase efficiency of
workers.
In the era of Internationalization Marks and Spencer has come out with a great
opportunity of maximising its global presence as company has started trading most of its brands
with St. Michael brands. Company is also splitting their markets to allow customer share their
common interest in same or comparable set of needs. In resulting of these opportunities Marks
and Spencer can increase their techniques of market segmentation by maximising its stores
which will increase the business.
The main threat that Marks and Spencer is facing is of increased level of competition
among competitors in all areas of business. Company can lose its scope of business, it is a big
worry for Marks and Spencer, as retail competitors like Sainsbury, Tesco are expanding
themselves whereas Marks and Spencer is still relaying on mega stores. Outcome of the threat
analysis is that company has a big worry of losing its business because of old techniques of
management (Kaufman, 2015).
2.1. Human Resource planning based on SWOT analysis
Human resource planning ensures right candidate for right job through process of HR
planning. Main objective of HRP is to maintain level of human resource in a company respective
of its quality and quantity and to estimate cost of human resources that are to be hired. HR
planning is also responsible for employee’s growth, increased knowledge, skills and abilities to
do work effectively and efficiently. It involves simple four steps according to the present SWOT
analysis of M&S.
 For very first availability of workforce in company is to be measured, which includes a
brief study of human resource strength in terms of numbers, skills, qualifications,
experience, age, etc. So that new talented and knowledgeable candidates can be hired to
renew technological environment by making necessary updates in technologies being
used and to cope up with changes.
 On this step research is done on future demands of workforce to know upcoming
demands of human resource. All the variables such as retirements, promotions, transfers,
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lay-offs, etc. are considered while analysing future demand of workforce. M&S should
work on this to meet the future demand of HR and to overcome its weaknesses.
 In this step of HR planning it is essential to know business strategies and its objectives in
a long run. To match the current supply and future demands of workforce and to create a
forecast.
 After forecasting the need for workforce HR consulting firms develops strategies to meet
the demand by recruiting, relocating, outsourcing, etc. then plans are implemented by
managers so as to assure smooth and efficient functioning of organization.
Human Resource planning should be done by Marks and Spencer by considering all the
above steps to prevent risk of threat and to overcome its weaknesses (Sparrow, 2013). Proper
planning can result in the formation of new ideas which can help company overcome its
weaknesses and prevent threat of competitors. Company can also implement this process of
human resource planning to maintain its quality and quantity of human resources to give head-to-
head competition to competitors in the market. By proper planning M&S can grab big
opportunities for business in coming years.
3.1. Human resource policy and its importance in M&S
Human Resource Policies are guidelines and measures that show how different matters in
an organization should be tackled inclusive of employee rights and duties. These are linked up
with employment law. Each human resource policy denotes specific workplace and is integrated
in the company's policy manual. They are designed to promote communication and
understanding between employees and managers. Importance of Human Resource policies can
be shown in following three points:
Risk Mitigation: HR policies can protect company from liabilities of claims for unfair
employment. Human Resource Policy is important because there are many policies regarding
company's obligations under national and local laws of the country. It also prohibits
discrimination based on age, sex, disability, and other non-jobs related factors that are part of
M&S’s legal defence and should not be broken by any means and policies ensure that company
was not engaged in any such type of activities.
Employee confidence: Providing employees with written policies can increase their
morale, confidence, job satisfaction, and engagement into organization group goals etc.
Employees feel motivated after knowing about the company's benefit which in turn increases
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efficiency of workers from which organization’s growth prospectus can be improved. Policies
provide workers with beneficiaries, it may be monetary or non-monetary related. In monetary
related benefits workers are provided with appraisals, promotions, incentives, etc. and non-
monetary involves achievement of individual goals. M&S can prevent threat from its competitors
of losing business by increasing the efficiency of employees.
Strategic Direction: Policies help firm to give direction to strategies that are formed by
HR department to encourage company's growth and facilitate future circumstances. Strategies
can be implemented by encouraging workers to work efficiently in order to achieve
organizational goals. HR policies that support company's mission and goals enhances job
satisfaction of employees, making it easier for company to retain their workers. Directions given
to strategies can give great advantages to M&S for example benchmarking of company.
Marks and Spencer should abide by polices to help management and employees run
business in an effective and well manner, to take major human resource decisions and to develop
company guidelines and procedures (Darwish, 2013). Company also forms policies to prevent
mere legal issues from creating serious problems for the organization. Management standards
can also be determined by the help of policies.
4.1. Importance of structure and culture to SHRM of Marks and Spencer
Beliefs, ideology, principles, and values of an organization are the contents from which
culture of organization is formed. Culture of workplace controls the behaviour of employees
among themselves as well as with people outside company. Culture and structure is important in
following ways:
 Good culture and structure of workplace encourages employees and decides the
way in which they interact with their working environment. It ensures employees
motivation and loyalty towards the organization. Better structure will result in
hiring of better and suitable individuals to the job.
 Culture of the workplace has a big role in promoting healthy competition of the
work place. Competitors creates a sense of competition among employees and
encourages them to work better than their fellow team members and workers in
order to get appreciation and rewards from the supervisor and management team.
Work culture and structure plays a vital role in motivating employees. Every
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HRM team tries to make better working environment for workers to push them to
perform at their best.
 Work culture and structure of any organization represents set guidelines for
employees which guides them to work according to it and to perform at their best.
Every organisation must have predetermined guidelines for workers to make them
work accordingly. Because of this every individual is clear about his roles and
responsibilities that are to be performed by him and methods of achieving task
deadlines.
 Culture and structure of any organization is far more important in representing
brand image of organization. It is the work culture of a firm that distinct it from
others in market and economy.
 Work culture and structure put all the workers on a common platform where all
employees are treated equally and where no one feels neglected and left out. It is
important for employees to adjust well in the culture of workplace in order to
make them feel comfortable.
 Work culture unites employees and efforts of every individual into one common
direction i.e. achievement of group goal. Employees with different attitudes and
mentalities enters the organization's environment and culture gives unity in their
thinking and perceiving (Guo and et.al., 2011). Work culture ensure safety of job
as well as discipline that has to be maintained by employee which benefits them
in long run.
Types of organization culture are as follows:
1. Normative culture: In this type of culture norms and procedures of the firm are
predefined and rules and regulations are set as per guidelines.
2. Pragmatic Culture: Consumer satisfaction is the main motive of employees in such type
of culture and more emphasis is placed on customer and external parties about their
demand and needs.
3. Academy Culture: This culture hires employees according to their skills and delegation
of authority is done on the basis of their education qualifications, experience and
background.
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4. Club Culture: Organizations with this type of work culture are very much particular
about the employees they hire. Hiring of employees is done on the basis of their field of
specialisation and interests.
Marks and Spencer has the Pragmatic type of work culture in their organization as more
emphasis is placed on clients or external parties. It is a consumer based management system in
which changes are made according to customer's demand. Company should not change the type
of work environment in their organization as this culture and structure is best for a customer
based organization.
4.2. Effectiveness of HRM in M&S using contingency model
Individual in this model believes that there no such specific techniques to lead the
organization on a continuous basis. HRM team of M&S has to change techniques being used for
leading an organization towards achievement of organizational goals with change in situation.
Strategies have to be formed by human resource team to meet future challenges of the company.
As Marks and Spencer works and functions according to customer's demand and requirements
techniques should be refurbished by HR management team to cope up with changes in the
economy. M&S is using old techniques to sell their goods and products in the market that needs
to be changed to survive in this competitive market and prevent loss of business.
Contingency model of Human resource management clearly signifies the importance of
changes to lead company in achieving organizational goals. HR team helps in replacing old
techniques with new one by hiring new individuals with creative and innovative ideas that a firm
can implement to drive company through the situational changes (Strategic Human Resources
management, 2018.). Without taking contingency model into consideration one company would
never be able to survive and retain their customers in market with such crucial competition
between competitors.
In accordance with this model Marks and Spencer should implement needed changes in
technological environment of company to retain their customers and business in market.
CONCLUSION
From above report, it can be concluded that HRM strategies at Marks and Spencer’s uses
important models which has helped in accomplishment of goals. SWOT analysis shows the areas
where company has to work upon. Concerned areas are corrected accordingly and HRM
planning has taken out an estimate for the number of required employees and to maintain them
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properly. The planning process is cost and time effective. Proper policies have been created and
have helped in developing relationships with employees and retaining them in company for long
term (Strategic Human Resources management, 2018.).
Strategies of HRM has shaped the culture in a positive manner and strategies to retain
employees for future. This has increased productivity in the overall performance of M&S. This
has increased the revenue and sales as well. The work culture has significantly improved and
effectiveness of HRM's decisions has helped company to grow by increasing skills and
capabilities of employees, managers and senior management.
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REFERENCES
Books and Journals
Darwish, T. K., 2013. Strategic HRM and performance: Theory and practice. Cambridge
Scholars Publishing.
DuBois, C. L. and Dubois, D. A., 2012. Strategic HRM as social design for environmental
sustainability in org
DuBois, C. L. and Dubois, D. A., 2012. Strategic HRM as social design for environmental
sustainability in organization. Human Resource Management. 51(6). pp.799-826.
Guo, C., and et.al., 2011. Strategic human resources management in non-profit organizations.
Review of Public Personnel Administration, 31(3), pp.248-269.
Jackson, S. E. and Seo, J., 2010. The greening of strategic HRM scholarship. Organization
Management Journal. 7(4). pp.278-290.
Kaufman, B. E., 2015. Evolution of strategic HRM as seen through two founding books: A
30th anniversary perspective on development of the field. Human Resource Management.
54(3). pp.389-407.
Li, X., Frenkel, S. J. and Sanders, K., 2011. Strategic HRM as process: How HR system and
organizational climate strength influence Chinese employee attitudes. The International
Journal of Human Resource Management. 22(9). pp.1825-1842.
Li, X., Frenkel, S. J. and Sanders, K., 2011. Strategic HRM as process: How HR system and
organizational climate strength influence Chinese employee attitudes. The International
Journal of Human Resource Management. 22(9). pp.1825-1842.
Martin, G. and Reddington, M., 2010. Theorizing the links between e-HR and strategic HRM:
a model, case illustration and reflections. The International Journal of Human Resource
Management. 21(10). pp.1553-1574.
Minbaeva, D. B., 2013. Strategic HRM in building micro-foundations of organizational
knowledge-based performance. Human Resource Management Review. 23(4). pp.378-
390.
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