One of the most important functions of any business organizations regardless of what industry it may be operating in is that of managing the numerous human resources. This is so mainly because of reason that employees are the one who will be assigned with different tasks and would be expected to give their best shot to completing it (Billsberry, 2008). So it may not be wrong to say that it is by effectively managing them only that management can look to attain goals and objectives. In the present report, human resource management strategies and techniques in Harrods have been evaluated with a view to assess what all measures do the management takes to motivate and keep their workforce engaged. Also through the study, impact of legal and regulatory framework policies of the company will be assessed.
Personnel Management is defined as a approach in sense that it only takes into purview of managing the employees or that of the personnel. On the other hand, the concept of human resource management is newer and entails that authorities must not just focus on managing the employees, but they must also have their focus on ensuring that the employees are well motivated and oriented to attaining targets given to them (Storey, 2007). In approaches of personnel management, the relation between employees and that top management is more of a contractual one; while in human resource management, they both look to develop a bond, wherein they try to know each other needs, demands, wants, etc and devise ways through which they can be fulfilled or met. Power in personnel management rests in the center (Ahmad and Schroeder, 2002). In this context it can be said that if management at Harrods uses techniques of personnel management, then it would mean that they are looking to build, develop and maintain formal as well as contractual relations with employees. This means that they can be relieved of duty once said project is completed or contract between them expires. On the other hand if techniques and methods of human resources are used, then it is an indication that management is looking to build long term relations with workers. Herein they will try to motivate the employees, gain their trust and loyalty and also ensure that organizational goals are attained to greatest extent possible. Companies such as Harrods is using the concept of human resources management in order to deal with its employees and achieve its aim and objectives.
Most of the organizations are aware of this fact that the workers are valuable assets. This is so mainly because of reason that if they are not satisfied or happy, then there is very less chances that Harrods would be able to attain its targets. Even its very survival will be put into jeopardy (Jackson, Schuler and Werner, 2011). Some of the functions that HRM department at Harrods has to perform are that of:
Recruitment and Selection: Management at Harrods focuses on ensuring that they recruit, select and hire such candidates at workplace, which not only will help the organization to attain its targets, but also try to contribute to its very survival as well as existence in the market (Morand, 2001).
Relations with the employees: Therefore it can be said that efforts of authorities at Harrods are focused on making sure that they build positive relations with employees, with the main purpose of gaining their trust and loyalty.
Line Managers in an organization such as that of Harrods are very important (Barnes, 2013). They are critical for all operations of the Harrods, as well as performance given by the employees. Some of the roles and responsibilities of the line managers in organizational setting include the likes of following:
In UK there are several laws, by-laws, rules and regulations which have to be taken in due consideration by management of companies, regardless of the industry that they operate in. This means that authorities at Harrods will be tasked with responsibility of making sure that they follow such laws at the workplace (Sogunro, 2004). To be able to do so, they have made a legal department which also works in association with that of the HR department. Recruitment and selection policies in the company have been changed and modified in this context. HR department now has to make sure that they do not take facets such as caste, culture, etc into consideration while recruiting a candidate in the company. In addition to it, this department also has to make sure that the employees and workers are no-t discriminated or mistreated at the workplace. Today because of the various rules and regulations which govern working of HR department of companies, management at Harrods pay a lot of attention to making sure that such models and approaches are followed to a great extent. They also have developed various policies and procedures through which they tend to implement those given by the government and various other regulatory bodies (Dowling, Festing and Engle, 2008).
It is important for management at Harrods that they plan for human resources at workplace in collaboration with that of the HR department. Although there are a number of reasons for this, but one of the main ones is that department store industry is considered to be very volatile in nature, due to which it suffers from problem of high labor attrition (Ashkenas, 2013). Thus at Harrods, it is necessary for management that they develop plans to fulfill needs of the company in relation to human resource requirement. In addition to it, there is also a need to engage into such activities primarily because of reason that the firm operates in a very volatile market, due to which its needs, expectations and desires of the industry changes by great margins and that too at a very rapid pace. The need for HR planning can better be understood through fact that in events and festivals such as Christmas, many of the employees tend to go on a holiday and take leave (Klauer and Phye, 2008). It is therefore because of this reason that the management would have to arrange for new employees (short term or temporary) from various sources.
Planning requirements of human resources is a very tricky task and requires that the managers must pay attention to a lot of factors. There are a lot of stages that the HR department has to fulfill so that they are able to develop some or the other plan through which human resource requirements can be met. These stages are:
Environmental Analysis: Management at Harrods conducts a thorough analysis into both internal and external environments. This way they get a lot of vital information about market needs as well trends prevailing in the market (Amos and et.al, 2009). This way the authorities can determine their HR requirements in a much effective manner and then plan it in such a way through which they will be able to determine the sources and methods through which people can be recruited at workplace.
Forecasting: The next stage that has to be carried out in process of planning for human resource requirements is that of forecasting. Herein authorities in association with HR department predict or forecasts as to how much ma power will be required in the company.
Analyzing the supply: Next they will have to evaluate those sources from which people can be recruited in the Harrods (Compton and et.al, 2009). This would enable them to make sure that the sources from which people will join the Harrods are authentic and also have the ability to fulfill needs of the firm.
Matching demand and supply: Once people to be recruited in the company have been identified and also the source from where they will be recruited, HR manager will be required to match demand of workforce in the company with that of supply they would get. This essentially is a process through which management will focus on making sure that firms’ demand for manpower is fulfilled to the greatest extent.
Action plan: In this last stage, when it is seen that sources selected by management will help in meeting demand of workforce in the company, HR manager in the company will be required to develop a HR plan of recruitment and selection and implement it at workplace (Simons, 2011).
It is a well known fact that recruitment and selection process is one of the most important processes that management and HR department of an organization has to perform. This is so because of reason that if they don’t recruit and employ appropriate people at the workplace, then there are chances that performance and productivity will diminish (Kleynhans and et.al, 2009). Both Harrods and Sainsbury uses internal and external sources of recruitment. HR department of Harrods first look to find people from the internal sources only. This means that they before hiring people from outside look to recruit people who already have been working with the company and have a good experience. If they don’t get required people, then they shift their focus to use the other source. To be able to effectively use the external source, first of all advertisement is made in newspapers, magazines, etc and applications are invited for the post(s). Interviews, both telephonic and face to face are conducted after scrutiny of the received applications (Shun-wing, 2011). On the other hand, HR department in Sainsbury mainly uses external sources of recruitment where they not only advertise the vacancy on newspapers and magazines, but also extensively use social networking sites such as that of Facebook, LinkedIn, etc.
Since management at Harrods primarily focuses on using the internal sources of recruitment, it may not be wrong to say that its employees are highly motivated, because of fact that they get a chance to reach to higher positions (Analoui, 2002). This also immensely helps the company in motivating the staff members but also in gaining their loyalty and commitment towards the workplace. So it may not be wrong to say that the recruitment and selection process of the company has been highly effective. At Harrods, the recruitment and selection procedure adopted by them has proved to be very effective, mainly because of reason that employee satisfaction, engagement, morale, etc is very high.
On the other hand, recruitment process adopted at Sainsbury though has been very useful in attaining goals and objectives, but it is not that effective when compared to the one at Harrods. To be able to recruit from such sources, the company puts the advertisement on its websites and invites for application from people. This way highly qualified person can be selected and recruited with the minimum efforts (Elearn, 2009).
Employee retention is one of the major problems which have to be faced by management of companies, regardless of the industry that they operate in. To be able to retain the employees, businesses are required to take care of the fact that better employment opportunities and incentives are provided to employees at regular intervals. Further it acts as a driving forced and encourages workers to giver their best towards the accomplishment of aim and objectives of organization. Management of companies can opt for various theories of motivations in order to boost the morale of employee and enhance their overall performance. Businesses can use Maslow motivation theory in which they will be required to satisfy the need and demand of people working at different level in order to motivate them. Rather than focusing on the satisfaction of overall needs, the management will required to understand different needs to people working at different level. Then it will b required to satisfy those identified needs and expectations.
On the other side of this, two factor theory which has been developed by Herezberg can be also used by organization. As per this theory, the management will required to concentrate on two major factors which are motivators and hygienic conditions. The management will be required to provided challenging working conditions and better opportunities for growth and development to motivate employees. In addition to this, it will also required to provided safe and hygienic working conditions to workers so that they can perform better and give their best.
In the company a lot of importance and attention is paid to the whole process of job evaluation, as it forms the basis on which not only pay or salary package for the employees can be determined, but performance of employees in existing jobs can be assessed (Kozlowski and Salas, 2009). A wide variety of methods and techniques are used by authorities to carry out such a process. For instance, they take regular feedbacks from existing employees doing such jobs. This is so because of reason that they would provide the management a lot of detailed information about the job, its various sides (both positive and negative) and also help them in determining what kinds of skills and talents are required to perform the job and carry out in the most effective of manners. In addition to it, several targets or goals regarding the job also have been developed by management, attainment of which help them in determining what kind of pay is most suitable for the job and also how it is to be performed along with quality which has to be maintained in it. Furthermore, performance indicators also have a crucial role in process of job evaluation and determination of pay regarding the job. These KPIs will help management in assessing the job, requirements or skills which employees need to possess and also what kind of pay will be best suited to it (Bamberger and Meshoulam, 2000).
Rewards are very important part of any organization and plays a great role in employee satisfaction. In addition to this, it also help in motivating workers to accomplish the aim and objectives of organization. Harrods is required to ensure that fact that its rewards policy consist of both monetary and non-monetary rewards for the employee. At Harrods, non-monetary rewards and benefits are given to those who are in the top management team of the company, i.e. the ones who are involved in process of formulation of various corporate strategies. Main reason behind using this method for them is that already their pay or salary is very high, that any kind of financial benefit will not motivate them. Instead they want something through which they can substantiate their status in society and the organization.
There are a lot of methods and techniques through which the management at Harrods can monitor performance of the employees and also try to enhance it. One such method is to determine some specific key performance indicators. This will help authorities in measuring performance or conduct of employees on basis of such indicators. Their attainment would mean that staff has performed very well and they have been able to attain targets set for them. Similarly, feedbacks like 360 degree feedbacks are also very effective tools through which performance of employees can be gauged and monitored. It involves taking reviews and feedback related to performance and conduct of workforce from their colleagues, subordinates and superiors. It will help management in determining both performance and behavior of employee at workplace (Shoham and Perry, 2009).
The reason for cessation of the workers are provided below as:
Business conditions: It is a reason for cessation of employment which states that if the business is not going through a very good period, i.e. it has not been able to perform as what the management may have expected, they tend to down size the corporation and cut down on their costs. The first step that they take in this regard is terminating employment of many people (Cakar, Bititci and MacBryde, 2003).
Unacceptable behavior: Another main reason why management at the departmental store may cease or stop employment of an organization at workplace is that they sometimes may not behave or act as per requirements of the company. It has been clearly mentioned in employee handbook of firm that if any employee is found to be mistreating colleagues, or discriminating them on basis of caste, culture, etc, then they can be terminated from company.
Procedure of employment exist in Harrods: Before having any kind of exist from Harrods, a workers is required to provide prior notice to the company. (Sheehan, 2005). Further while having exist a discussion between employee and employer can take place regarding salary, insurance and on other important areas. There are several ways through which an individual can leave the organization, such as retirement, resignation, termination. In case of resignation or retirement (if voluntary) the employee will have to give a notice to the management. But this is not so in situation, where staff member is terminated.
Sainsbury Process of employees exist: While quieting their job from Sainsbury, the employee are required provide a prior notice to the brand. In addition to this, there are various terms and conditions which needs to be addressed by employee. Further a written letter of resignation is also need to be provided by the person. Sainsbury also carry out a meeting with employees and takes suggestions form him regarding the improvement in organization.
Employee are greatly affected by the regulatory and legal framework which posses in a company. During the process of employee termination Harrods always ensure the fact that it has addressed all the tribunals related to employment. Rather than hiring new personnel's, the organization can arrange training and development session to all its existing employees. This will reduce the cost of operations as hiring of new employees is considered as very expensive process. On the other hand, the workers needs to adhere the regulations and laws framed by the organizations in effective manner. All the employee are required to have a written contract of employments which is very beneficial at the time of cessation.
Human resource management are the most critical components of any organization, no matter in whatever industry it is performing (Simmons, 2008). Therefore organization are rquired to treat their workers well and need to satisfy their need and demand. If they are not satisfied and motivated, then the firm will not survive in the market for too long. During the study it was seen that to closely monitor the progress and performance of employees, the company has hired supervisors and also use techniques such as that of constant feedbacks, 360 degree appraisals, etc.