Zara's HRM: Strategies, National Impact, and Employment Models

This report provides a comprehensive analysis of Zara's human resource management practices. It begins by examining the HR strategies employed by Zara to create value, including performance management, reward systems, employee information systems, training and development, and recruitment. The report then assesses the impact of national and regional culture, using Hofstede's model, on Zara's HR practices in the UK. It further explores Zara's employment model, evaluating the organizational levers used to create value, such as training, feedback, and compensation. The report also differentiates between personnel management and human resource management using Storey's 27 points, highlighting the practices followed by Zara. Additionally, it details Zara's hiring and firing policies in transnational subsidiaries, and the differences in employment laws when international human resource management adapts to local business systems. Finally, the report provides corporate examples of good HR practices and offers recommendations for improving Zara's HR strategies.

INDIVIDUAL REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
A. Determine human resource strategies used by Zara to create value.......................................3
B. Determine the impact of national and regional on human resource practice of Zara,
operating in the UK......................................................................................................................4
C. Determine the employment model used by Zara and evaluate organizational levers used to
create value by the firm................................................................................................................5
D. Evaluate the difference between personnel management and human resource management
using Storey’s 27 points and state the human resource and personnel management practices
followed in Zara...........................................................................................................................6
E. Determine the hiring and firing policies used by the human resource manager in
transnational/international subsidiaries of Zara...........................................................................7
F. Determine the difference in employment laws when international human resource
management changes to local business systems..........................................................................8
G. Use corporate examples of the organisations using good human resource practices..............9
H. State recommendation to the employer of Zara in order to improve the human resource
practices in the organisation.........................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource management is the technique of managing the workforce capital of an
organisation. Human resource manager formulates different policies and strategies in order to
manage the workforce of an organisation. In the context of Zara which is a multinational Spanish
retailer based out of Galicia, Spain. The founder of the company is Amancio Ortega and Rosalia
Mera. It is famously known for delivering quality products and services in product lines of
fashion apparels, perfumes, accessories, swimwear, beauty. This report covers different human
resource strategies implemented by Zara, the impact of regional and national culture on human
resource practices, employment model used by the firm, the difference between human resource
management and personnel management, hiring and firing policies undertaken by the company,
difference in human resource laws, corporate examples of using good human resource practices,
recommendation to improve human resource practices (Berisha Qehaja and Kutllovci, 2015).
MAIN BODY
A. Determine human resource strategies used by Zara to create value
The human resource manager in Zara formulates long term planning and strategic
policies in order to maintain and develop the workforce of an organisation.
Performance management: Performance management is the tool for monitoring and controlling
the performances of the workforce. The human resource manager in Zara evaluates the
performance of the human capital in order to attain high-performance quality.
Reward system: Human resource manager uses reward systems in order to improve the
performances of the employees. The human resource manager in Zara renders monetary and
monetary incentives to motivate employees to work more effectively. Non-monetary incentives
include transfer, promotions which motivates the employees for better quality performance and
contributes to employee retention (De Mauro and et.al., 2018).
Employee information system (EIS): EIS is software that helps to record the performance and
work performed by each employee in the workplace. The human resource manager in Zara uses
EIS to record and keep a check on the performances of the employees in the organisation. It
helps to track the task accomplished and total overall growth of the business objectives.

Training and development: Human resource manager in Zara conducts training and
development programs that help to improve the current skills and knowledge of the employee.
The human resource manager conducts different training and development approaches like on
the job training, on the job training, online training and so on. Training and development help to
bridge the gap between the actual performance and the standard performance. Moreover, it helps
to develop a competent workforce in the organisation to accomplish business success and
growth.
Recruiting highly skilled candidates: Recruiting and hiring a highly skilled workforce in an
organisation contributes towards the accomplishment of organisational goals. Knowing the
importance of highly skilled manpower, a human resource manager in Zara recruits and hires
candidates with good knowledge in the realm of education, good communication skills and
knowledge about the latest technologies. By using these approaches human resource manager
recruit candidates by matching the skillset with a specific job role. Thus, focuses to develop a
highly-skilled workforce in the organisation (Dessler, Cole and Chhinzer, 2015).
B. Determine the impact of national and regional on human resource practice of Zara, operating
in the UK.
To understand the impact of national culture on Zara operating in the UK, Hofstede's
model of cultural dimension is used which reveals the cultural factors followed in a geographical
location.
Power distance: Power distance is defined by the power concentrated in the hands of individuals
where they use the powers positively or negatively. People scoring high power distance are more
likely to believe in concentrating power in few hands and develop the autocratic rule to strictly
ordering or influencing other to follows the rules and commands where as low power distance
believes in division of power and promoting equality and freedom to all individuals. People
living in UK believes more equality and value thus, human resource manager in Zara promotes
equality in the workplace by rendering all employees equal opportunities to take own decision in
the organisation. This leads to equal distribution of the power in the organisation and loses the
idea of autocratic leadership (Fedjukov, Sheshneva and Rodionova, 2018).
Uncertainty avoidance: Uncertainty is the factor that is defined by the amount of risk taken by
an individual. It further involves two scenarios as to when people scoring high in the uncertainty
avoidance index defines who are more relaxed, on the other hand, a low uncertainty avoidance

score defines people take the risk and formulates policies in order to manage future challenges.
The human resource manager in Zara Formulates strategies and long term planning to deal with
future uncertainties and business challenges.
Individual vs collectivism: Individualism is defined by taking individual decisions whereas
collectivism is defined by the factor where people believes in taking collective decisions. In the
UK, people believe in taking individual decisions in order to accomplish individual goals. The
human resource manager in Zara gives the right of freedom and speech to all the employees in
the organisation so that they can individual decisions and achieve both personal and professional
growth.
Masculinity vs femininity: Masculinity and femininity is defined by roles of men and female in
the society. In the UK, people follow the culture of rendering equal voice and opportunities to
both men and female at every place. The human resource manager in Zara renders an equal
amount of rights and opportunities to both men and women in the workplace. Where female
staffs are also rendered higher job positions and decision-making powers than men in order to
promote equality of rights between both the genders in the organisation (Gabriel and et.al.,
2016).
C. Determine the employment model used by Zara and evaluate organizational levers used to
create value by the firm
The employment model involves the techniques and approaches used by the company in
order to manage the workforce of an organisation. The human resource manager in Zara uses
different techniques such as:
Training and development: Human resource manager in Zara conduct training and
development programs for the employees in order to improve their skills and competencies
required for maintaining the working standards of the organisation. Training and development
activities are being rendered to the employees while assigning a new project, or to employees
who are not able to work effectively and to the new employees in the organisation. Thus, training
and development is the first approach of the employment model used by the human resource
manager in Zara in order to achieve a highly competent workforce in the organisation.
Regular feedbacks: Human resource manager in Zara render regular feedback to the employees
in the workplace based on the performances of each employee. The Human resource manager

renders both positive and negative feedback to the employees. Positive feedbacks help to
motivate employees so that they can work with higher determination whereas negative feedbacks
help to determine the grey areas where the employee needs to develop his competencies and
skills in order to fulfil the standards of the work performances (Gibbs, MacDonald and MacKay,
2015).
Compensation and Benefits: Compensation and benefits play an important role for which helps
to promote employee retention in the organisation. The human resource manager renders basic
salaries to the employees for the work performed. Apart from the basic salary, the human
resource manager in Zara, renders monetary incentives to the employees based on the
performances which motive both highly efficient working employees and the below or average
working employees to work effectively in order to attain the monetary benefits and earn
recognition in the organisation. Moreover, high paid salaries help to achieve employee retention
in the organisation.
D. Evaluate the difference between personnel management and human resource management
using Storey’s 27 points and state the human resource and personnel management practices
followed in Zara
John Storey defined by the 27 points of differences between human resource management
and personnel management. He portrayed the 27 areas of differences between the both. These are
discussed below:
Dimensions Personnel management Human resource management
Behaviour
referent
Follows employee behaviour in the
workplace in the accordance with
the pre-determined and norms and
rules.
It focuses on delivering value and
mission.
Managerial task The personnel manager critically
monitors the performances of the
employees in the workplace.
The human resource manager
monitors the nurture the
performances of the employees in the
workplace.

Speed of
decision
It involves slow decision making. It involves fast decision making.
Communication It follows indirect communication. It follows direct communication.
Pay Employees are paid following the
given job (Gómez-Cedeño and
et.al., 2015).
Employees are paid based on the
performances.
Human resource and personnel management practices followed by the human resource manager
and personnel manager in Zara are:
Training and development: Training and development are the important activities performed
by human resource manager and personnel manager in Zara. Training and development activities
involve improving the performances and skills of the employees in order to attain a highly
competent workforce in the organisation (Hubner and Baum, 2018).
Recruitment: Recruitment is another important function that involves selecting and choosing
from the pool of candidates addressing the requirement of the job and matching their skillset
with the desired job role. The human resource manager and personnel manager in Zara recruit
highly skilled employees in the organisation to achieve productivity and efficiency in
organisational objectives.
E. Determine the hiring and firing policies used by the human resource manager in
transnational/international subsidiaries of Zara
Hiring and firing practices of human resources management followed in Zara are
discussed below:
Firing approaches used by human resource manager in Zara:
Workplace conflicts: Human resource in Zara manager strictly follow discipline in order to
maintain an ethical working environment in the organisation. The human resource manager fires
the employees who breach the discipline in the organisation. At the first the human resource
manager gives a warning to such employees but then to do not follows the instruction, the human
resource manager takes stringent action to fire the employee from the organisation.
Poor Performance: When employees are not able to perform by the desired standards, the
human resource manager fires such employees from the organisation. Working standards

involves the potential work that has to attained by each employee in order to accomplish
efficiency in the work performed. Human resource manager renders training and development
opportunities in order to improve the skills of the employees, even after a continued training
session if the employee is not able to perform better, the human resource manager in Zara fires
such employees who do not comply with the ethical rules and regulations of the organisation
(King, 2016).
Hiring approaches used by human resource manager in Zara:
Highly skilled workforce: Recruiting a highly skilled workforce by human resource manager in
Zara means that the employee should acquire the following core skills
 Communication skills: Communication skills are crucial for any individual in order to
rightly express one’s message to the other person. Human resource manager in Zara
checks communication, an individual who possess good communication skills have
usually high chances of getting recruited.
 Decision making abilities: Decision making abilities are important in order to evaluate
the presence of mind wherein the candidate can take important can take a crucial decision
in different business events.
 Technical abilities: Technical abilities are the most important factor through which the
candidate is been hired, technical skills are determined by the acquired education by the
candidate which best fits in the specific job role (Klimovets, 2017).
F. Determine the difference in employment laws when international human resource
management changes to local business systems
Employment laws practiced by Zara operating in the UK are discussed below:
Employment Rights Act,1996: This law defines to render all the employee equal rights and
justice in the workplace including a friendly environment leaves to employees and so on. The
human resource manager in Zara renders equality and freedom of voice to all the employees in
the workplace by addressing the issues and concerns and valuing their presence in the
organisation.
National Minimum Wage Act,1998: It reflects to render minimum wages to the employees in
accordance the job performed by each individual. The human resource manager in Zara renders

compensation and other monetary benefits to the employees following the performances of each
employee (Kmecova, 2018).
Employment laws practices by Zara operating in India are discussed below:
Payment of Wages Act, 1936: This law was framed by the government of India, defining to
payment of wages rather than in kind to the employees based on the work performed by them.
Human resource manager renders fair salaries and wages to the employees in the workplace.
Other Employment Right Acts: Employment right laws in India followed by Human resource
manager in Zara involves The Equal Remuneration Act, Right to Leave and others. Zara
complies with these legislations in order to conduct the ethical functioning of business activities.
G. Use corporate examples of the organisations using good human resource practices
Corporate examples of the organisation using good human resource practices are as:
Marks and Spencer: Marks and Spencer is a multinational organisation that deployed thousands of
employees across its global location. The best human resource practice used by Marks and Spencer
includes maintaining workforce diversity, as Marks and Spencer acquires employees from different
religion, culture and division. Marks and Spencer maintains workforce diversity by delivering equality
and value to each employee in the workplace. Practicing this approach helps Marks and Spencer to
resolve conflicts in the organisation and more emphasis on the accomplishment of organisational goals
(Lendzion, 2015).
British Airways: British Airways is a global airline company based out of the UK, in order to
continue maintaining its position as a global leader in the market. It recruits highly skilled and
experienced employees in the organisation. Human resource manager in British airways recruits
the employees who are highly skilled and matching their competencies with the required job
role. Moreover, human resource manager in British airways renders training and development
programs including the technical and soft skills training which helps to maintain and develop the
workforce of the organisation and further contributes to delivering quality services to its
customers.

H. State recommendation to the employer of Zara in order to improve the human resource
practices in the organisation
Here is some recommendation that Zara can implement to improve the human resource
management in the organisation.
Improved Communication: Human resource manager in Zara should conduct informal meets in order to
improve internal communication in the organisation. As communication plays an important role in
accomplishing organisational objectives. Without communication, it becomes difficult for proper business
functioning. Promoting easy communication in the organisation will resolve issues of conflicts and
clashes of the organisation and motivate employees to work as a team to accomplish organisational goals.
Thus, the human resource manager in Zara should promote informal meet, group discussions, seminars,
conferences in order to improve communication within the organisation (Mondy and Martocchio,
2016).
Employee engagement: Employee engagement is an important tool that determines the
contribution of each employee in the organisation. The human resource manager in Zara should
listen to the concerns of all the employees and give them opportunities to put their own decisions
in planning and decision making. These approaches help to earn employee loyalty as employees
feel valued in an organisation where their voice and opinions are being counted for operating
business.
Motivation tools: As different individuals in the organisation have different needs and want. So
human resource manager in Zara should first identify the needs and desires of each employee.
Some employee might have financial needs whereas some employee might have non-financial
needs. For addressing the financial needs, the human resource manager should render extra pay
to attain employee satisfaction and on the other hand, to the employees with non-financial needs,
the human resource manager should render promotions, transfer, recognition in the organisation,
skill development and so on. These approaches will help to motivate employee to render better
performance and develop a highly competent workforce in the organisation (Ozkeser, 2019).
CONCLUSION
In a nutshell, human resource management is the practice of managing and developing
the human resource of an organisation. Where, the human resource manager is the personnel who
is responsible to shoulder different responsibilities in order to recruit, maintain and develop the

human capital of the organisation. Human resource manager formulates different policies and
strategies for strategic planning and monitoring the performances of the workforce. Human
resource is the building block of an organisation that operates and runs the business. Thus, it
becomes important to develop and manage the human capital of an organisation to attain
business success and growth.

REFERENCES
Books and journals
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advantage. Journal of Human Resource Management (2015). 18(2). pp.47-61.
De Mauro, A. and et.al., 2018. Human resources for Big Data professions: A systematic
classification of job roles and required skill sets. Information Processing &
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Dessler, G., Cole, N. D. and Chhinzer, N., 2015. Management of human resources: The
essentials. London: Pearson.
Fedjukov, S. V., Sheshneva, I. V. and Rodionova, T. V., 2018. Peculiarities of formation,
accumulation and development of human resources in contemporary economic
conditions. Modern European Researches. (4). pp.58-62.
Gabriel, A.S. and et.al., 2016. Enhancing emotional performance and customer service through
human resources practices: A systems perspective. Human Resource Management
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Resource Development Quarterly. 29(4). pp.357-381.
King, K. G., 2016. Data analytics in human resources: A case study and critical review. Human
Resource Development Review. 15(4). pp.487-495.
Klimovets, O., 2017, July. Human resources make all the difference. In International conference
on Humans as an Object of Study by Modern Science (pp. 315-320). Springer, Cham.
Kmecova, I., 2018. The processes of managing human resources and using management methods
and techniques in management practice. Ekonomicko-manazerske spectrum. 12(1). pp.44-
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Lendzion, J. P., 2015. Human resources management in the system of organizational knowledge
management. Procedia Manufacturing. 3. pp.674-680.
Mondy, R. and Martocchio, J. J., 2016. Human resource management. Pearson.
Ozkeser, B., 2019. Impact of training on employee motivation in human resources
management. Procedia Computer Science. 158. pp.802-810.
Yasmin, M. and et.al., 2017. Creative methods in transforming education using human
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