MAN6712: Connecting Strategy and HRM - Marks & Spencer Case Study

This essay investigates the relationship between Human Resource Management (HRM) practices and organizational performance, using Marks & Spencer (M&S) as a case study. It begins with an introduction to HRM and its impact on organizational outcomes, followed by a literature review covering organizational culture, HRM practices, and their link to high-performance work culture. The essay then presents findings on HRM practices at M&S, including recruitment and selection, orientation, and employee relations. An analysis and evaluation section discusses internal and external organizational practices, emphasizing their influence on M&S's success. The essay concludes with recommendations for enhancing organizational performance, such as implementing rewards and recognition programs. The essay references various academic sources and provides a comprehensive overview of HRM's role in achieving organizational goals.

Running Head: ESSAY
CONNECTING STRATEGY AND HRM

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Table of Contents
Introduction.................................................................................................................................................3
Literature review.........................................................................................................................................3
Findings.......................................................................................................................................................5
Analysis and Evaluation..............................................................................................................................5
Recommendations.......................................................................................................................................6

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Introduction
In a very less period of its existence, the study of Human Resource Management has come a long
way. The output of investing into HRM system of an organization has always shown a positive influence
over the performance of an organization. For the purpose of the report, Marks & Spencer are chosen as
the organisation to study its human resource management operations and link with the organization's
overall performance. M&S is a popular multinational retailer brand headquartered at London and
specialises in selling clothing, luxury products, homer products, food products. It was founded in 1884
and since then it has opened 979 stores across the UK. It has one of the most efficient HRM systems
which helps in establishing its high-performance work culture. The essay is going to investigate the role
of effective HRM practices that contribute towards the performance at M&S. The information for this
report was gathered from secondary sources like peer-reviewed journal, news article and interviewing the
managers. The validity of primary data is the limitation of this study. The report will produce a literature
review for the organizational culture, HRM practices and link with high-performance work culture.
Further, the report will analyze the findings and also recommend strategies for enhancing organizational
performance.
Literature review
Meaning of organizational culture
Organizational culture is the collective of the ideologies, philosophies, values, beliefs,
assumptions, norms, expectations and attitudes that holds an organization together and is shared by that
organization’s employees (Fulmer, Gerhart & Scott, 2003). The ideals, values and norms work as clear
guidelines or instructions for the behaviour of the organization’s employees. As today's society have
increased dependency on skills and knowledge, Jiang, Lepak, Hu & Baer (2012) opined that
organizational culture plays an important role in enhancing its performance.

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Link between organizational culture and organizational performance
Effective organizational culture result from clear and open communications. Multicultural
organizations that recognize as well as respect the cultural rules provide a positive cultural environment in
the organization and by respecting and understanding cultural rules, leaders are baled to create a work
environment where knowledge is shared freely (Kaufman, 2012). This erases any hindrances in
knowledge sharing within the organization making the employees work better. Additionally, positive
organizational culture brings about employee satisfaction which in turn encourage them to work harder
and better increasing their efficiency. However, on the other failing to create and maintain a positive
organizational culture leads to a negative influence on employee efficiency.
According to AMO theory, the behaviour of the specific person can be controlled by three
independent work system components. The theory suggests that the success of organization and employee
characteristics are influenced by the culture of the organization which considers motivation, employee's
ability and opportunity (Guest, 2001). Motivating them with a certain behaviour over others as a result of
that they are expected to behave in a certain way (Paauwe, 2009). Every employee have a different ability
which must be recognized and used to its full potential. Opportunity is created for the employees to
develop themselves personally and perform better on their skill sets.
Figure 1: AMO theory model

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(Source: Guest, 2001)
HRM practice that builds and maintain desired culture in an organization
It is one of the very important duties of the HRM to maintain the working condition for the
employees thus ensuring better work culture. The HRM also looks after the needs of each employee and
helps them in case of any needs. It has been noticed that the employees generally don't perform their best
and this happens mainly because of the lack of motivation. West et al. (2006) stated HRM ensures to keep
a track on the performance of each employee and motivates them who are lagging behind. The welfare of
the employees is also taken care by HRM thus ensuring proper work culture adheres in the organization.
The HRM practices lead to enhance the performance of companies and its staff's ability to being more
goal-oriented (Boselie, Dietz & Boon, 2005). Hence there is a significant relationship between practices
of HRM, its variables and performance of the organization; or in other words role of HRM in
organizational performance. HRM practices have contributed towards increasing employees and
company's performance. For this, practices emphasize the productivity level and performance of finances.
Findings
Human resource has become an integrated part of every organization and similarly, they have a great
contribution to the functioning of every department of M&S. Some of the practices that are widely used
in M&S is mentioned in the following points:
 Recruitment and selection is the very first task of every HRM department. Their task is to select,
screen and finalize the appropriate candidates for the vacancies (Paauwe, 2009). The process of
recruitment is very important for M&S as it helps in cutting down the expenses of the
organization but eliminating the non-desiring candidates and giving chance to only the deserved
one who can help in the future growth of the organization as well.

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 Orientation is another important aspect of the HRM department. Proper orientation is needed for
the new employees to understand the rules and regulations of M&S. Providing intensive
orientation to the new employees helps them to get accustomed to the new working environment
(Rauch & Hatak, 2016). This program helps the employees to understand their work in a better
way and their exact job role or what they are expected to do. Thus it helps to increase the
efficiency of the employees.
 Managing relation with the employees is considered to be the pillar of M&S. Thus the HRM has
the responsibility to make sure that all the employees maintain professionals and friendly
behaviour. HRM has the ability to foster a good relationship with the employees and also
influence the behaviour of the employees (Saridakis, Lai & Cooper, 2017). It is the HRM that
plans for group activities which helps the employees to unite and perform as a team. Therefore a
well-planned employee relation helps to improve the working condition of the organization and
also increases its productivity.
Analysis and Evaluation
According to Naranjo-Valencia, Jiménez-Jiménez & Sanz-Valle (2016), organizational practices
are located right outside the cultural core of an organization. These practices are the actions that result
from their cultural norms, values and ideals. Organizational practices are of two types in M&S- internal
and external. Internal practices, as the name suggests are inner workings affecting interactions,
accomplishments and relationships between employees (Kehoe & Wright, 2013). Due to their closeness
to the cultural core, the consistency in its alignment with the core will result in a major influence on the
success of the organization. These include organizational structure, an organization of work, job titles,
process and systems of doing the work. It also includes employee requirement, selection, development,
training, performance management (objectives, employee goals, key results, feedbacks, performance
evaluation, celebration, and appreciation), internal communications and technology in the company.

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The external practices are concerned with defining how the organization and outsiders interact.
Outsiders include customers, suppliers, vendors, partners, markets etc (Kehoe & Wright, 2013). The way
an organization deals with its customers, suppliers and the market as a whole projects its cultural values.
Incorporating long term cultural values help in creating an image that is often helpful in the marketing
strategy of M&S. Principles and values remain meaningless until they are put into practice. Through these
practices, when action matches the ideologies, it produces reinforcing behaviour's sustaining those
ideologies.
Recommendations
Performance of M&S is dependent upon numerous factors and the contribution of its employees
and staff. Collective performance of employees in an organization is always more than the individual
performances added. It is very much evident that the practices of the HRM indeed helps in the smooth
functioning of the organization and also elevate the performance of the employees. One of the very
common practices that can bring a drastic change in the performance is the starting of the rewards and
recognitions (Saridakis, Lai & Cooper, 2017). With the help of this concept, the organization will be
giving rewards to the best performers in each department. This will help the employees to look something
upon and work their best. This rewards may vary in different organizations but the concept remains the
same that is providing monetary rewards or free vacation trips for the best performers (Rauch & Hatak,
2016). In order to receive the reward, the employees will work with the best of their abilities. This will
also encourage friendly competition between the team members. It is seen that after starting the rewards
scheme the working efficiency of the employees in various organizations has increased. It is the duty of
the managers to motivate each employee so that they can be the best performer and earn the reward.
Receiving a reward from the board of directors is a proud moment for the employees thus thrives for even
better performance.
For the greater gain in performance of an organization committed HRM practices are essentially
based upon resemblance to a right prototypical system. There are many possibilities for institutional

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settings in the framework of theory, basically in order to have a complete analysis of relations between
the performance of an organization and its HRM practices. In a different organization, there aren't many
differences in HRM practices. Moreover, the best HRM practices are generally enforced for a large
majority in the organization, due to its important and significant role. HRM practices enhance the
productivity and performance of the organization and it's more efficient if bundles are considered instead
of individuals.

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References
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Fulmer, I. S., Gerhart, B., & Scott, K. S. (2003). Are the 100 best better? An empirical
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Guest, D. E. (2001). Human resource management: when research confronts theory. International
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Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human resource management influence
organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
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Saridakis, G., Lai, Y., & Cooper, C. L. (2017). Exploring the relationship between HRM and firm
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27(1), 87-96.

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