Human Resource Management In the Context of Harrods
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Human Resource Management is and always has been a vital portion of the organization. HRM targets to deal with both the employers and employees so that they can develop their enactment and inspire them toward the organizational goal. It has been a mantra for most of the organizations regardless the types and size that an organization will succeed to achieve the goal if they prioritize their people first over other choices. Employees enormously contribute for any company. So managing and motivating them in the manners which are most effective, efficient and feasible is a great concern of any top management in an organization. It is unmanageable for any company to maximize the profit without having a qualified workforce. So companies are focusing more on HRM. Harrods is a large company who has almost 4000 employees and almost 3000 and 3500 other agency and additional workers. So they focus on their human resource with a great concern and emphasizes on gaining competitive advantage by treating their employees in a feasible maaner.
P 1.1 The Guest Model of HRM at Harrods
In 1987 David Guest explained a new model for UK organizations which argues that the policies of any organization is directly connected to its human resource management policy and that the organization should practice policy that is commitment based and distinct from compliance based personnel management. This model believes HRM of any organization should: Focus on the employees and consider them not as the input only rather value them as the asset of the organization. Emphasize on individual needs and requirements instead of emphasizing on group workforce. Be more flexible, work friendly and enable the employees to take important decisions. Empower the employees to improve their performance and create the opportunity for them to bring out their best. Motivate the employees so that they are committed to the organizational goals. Strategic management should be directly connected with the human resource management. This model suggests that though personnel management will recruit and train the workforce but a distinguished approach is much needed that will link the high performance and commitment of the employees with the organizational culture, mission and vision rather than compliance. (Warehouse, n.d.)
Harrods always emphasize on critically linking up its strategic management with its human resource management. To ensure the efficient and sustainable performance from the employees Harrods has adopted new human resource management system which is concern about 4000 employees with 3500 agency and additional employees. Sometimes Harrods prefer maintaining rules of personnel management particularly in case of decreased sales and problem oriented situation. But mostly they follow the system which involves a flatten hierarchy by reducing the hierarchical layers, empower employees so that they can take the responsibilities and decisions more flexibly and improve a better communication system among employers and employees. While determining the organizational strategy they put their people first and take steps for adopting policies that are acceptable to the employees.
P 1.2 Difference between Storey’s Definitions of HRM, Personnel Management and IR Practices Observance of administrative record models that deal with founding and managing reasonable terms and conditions predominantly regarding employment is defined as Personnel management. The term ‘Human Resource Management’ was used by Peter Drucker and his team in 1950’s which they used as a synonym of Personnel Management without deducting any other meaning. The modern definition explains that Human Resource Management speaks of the method that integrates the traditional personnel management activities and functions to corporate goals and strategies and also involves performance that is people oriented and aims to improve and benefit the organization. On the other hand Industrial Relationship refers to the relationship between employers and employees specially when it comes to collective bargaining and employment laws. Personnel Management
Human Resource Management
The term and conditions of employees are the main concern of this traditional approach. Everything that involves employers and employees of the organization is the concern of this modern concept. Industrial Relationship is a modern concept that focuses on the relationship among employers and employees. Personnel management compacts with managers.
Human Resource management compacts with the people from top to bottom. It includes managers and the employees to emphasize on the relationship between them. The concern of this concept is attaining objectives and maximizing profit. The concern of this concept is efficiency of employees, environment and culture of the work place, productivity etc. The concern of this concept is how to develop and benefit the relationship between the collective employers and employees. Employees are provided with less opportunity to develop themselves. Employees are provided with more opportunities to develop themselves. Employees are motivated by the managers to develop themselves and benefit the company. According to this concept employees are only the input to produce output.
According to this concept employees are valued as the asset of the company. According to this concept employees are valuable and managers should maintain a profitable relationship with them. The relationship between the employers and employees are rigid and very formal. The relationship between the employers and employees are flexible and informal to some extent. The relationship between the employers and employees are flexible, informal to some extent and benefit able to the organization. Employees cannot take decisions very flexibly.
Employees get the chance to take decisions more flexibly.
Employees can discuss with the managers and tae decisions.
(NaukirHub, n.d.) (2Write.co.uk, n.d.)
P 1.3 Assessment of the Implication of Line Managers and Employees of Developing a Strategic Approach Line manager refers to the individual who holds the direct responsibility to manage and supervise a particular employee is involved in the activities that influence the decisions of the company directly. Line managers are expert in managing people day-to-day by observing the performance. In Harrods managers keep themselves aware about each employee and the extent to which the workers are efficiently performing. That is how the line managers observe the collective workforce individually on a day to day grounded method. Line managers have technical skills and they can apply that when necessary. In Harrods the line managers are recruited through a selective process which is concern about their technical knowledge and skills. It is important for the line manager to have this so that they can solve or evaluate the solutions of the problems technically and determine the feasibility. To determine the responsibilities and Rota properly.
The line managers in Harrods are responsible for the work allocation to a great extent. Line managers are responsible for monitoring and measuring performance. Harrods always encourages their line managers to be bias free while evaluating the performance. Operational cost is one of the greatest concerns of the organization. Line managers take the responsibility to manage the operational cost effectively. The line managers of Harrods are very concern about the operational cost. Line managers can directly communicate the customers. Since Harrods is a luxury shop and the customers expect premium services so the line managers have to be very careful about satisfying the customers. Line managers are responsible to handle and improve the quality. Harrods encourages its line managers to be concerned about the quality. (Scribd, n.d.)
P 2.1 Explanation of How a Model Flexibility Might Be Applied to Practice Flexibility in an organization is variously defined and depends on the culture of that organization. Flexibility refers to the tractability to which an individual, working in an organization can response to the inevitable chances of the business. Any employee having the flexibility to take decisions should be proactive, reactive, multi-talented and adoptable to the unstable environment. In modern concept it is believed that employees should be provided with enough flexibility so that they become capable of taking right step at right time effectively and efficiently. But it requires a committed and skilled workforce which can be achieved by recruiting employees with appropriate knowledge, skill and quality and train and motivates them to improve their performances. Investment should be conducted establish and sustain long term relationship with the employees and to connect with the establishment of the labor market and primary sector employment. There are two different approaches that can be adopted regarding flexibility. Hard approach
Hard approach believes in less and strict limit of flexibility. The employees have to follow the order of the manager very strongly. On the other hand soft approach believes that employees should be provided the chance to take decisions and take responsibilities more flexibly. It will increase their commitment to the organization and help them to improve their performance. Harrods follow both the autocratic and democratic strategy for their leadership. In critical situation they adopt the autocratic strategy and the employees have to strictly follow the orders of their managers. But Harrods in their follow the democratic strategy where employees can discuss with their managers, take decisions, managers value their decisions. This results in increased empowerment and commitment of the employees. (Academia.edu, n.d.)
P 2.2 Types of Flexibility That Can Be Developed by Harrods
Harrods is a luxury shop and a brand that has it reputation all over the world. Harrods has been running its business for almost 160 years and has 4000 employees d additional 3500 agency and other employees. So they have to maintain a feasible system of flexibility that motivates the employees and make them more committed to the organization. Harrods select different types of flexibility approach considering the condition, situation, resources, strategy and other factors. They have a hierarchical system which has been flatten to reduce the layers of managerial responsibility and to make the decision making easier. They have selective recruitment system that allows them to recruit employees who are eligible and who have the proper knowledge, skill and quality. Adding to that Harrods has a strategy to take employees who are capable of taking responsibilities and decisions when needed in the crucial time. The employees are provided with development programs which are conducted by Harrods. These programs are flexible enough and designed to motivate the workforce to be more committed and to enhance the quality of their performance.
Harrods usually follow the strategy where senior managers create visions but ground level employees are delegated more leadership responsibilities. For example dealing with customers is an issue where the senior managers set the goals and basic policies. But the ground level employees are responsible for handling the customers and ensuring the customer satisfaction by considering the goals and objectives set by their subordinates. However sometimes Harrods adopt the hard approach, widely known as autocratic approach. In case of critical situation when a collective decision has to be taken the company orders it employees to follow their subordinates very strictly. The changed culture in Harrods has brought more efficiency in the workforce. Since this culture has built up a people oriented strategy the employees have been motivated to be more committed and engage them in a better manner. So Harrods should be looking forward to maintaining this soft approach in a more developed manner although it can adopt the hard approach when critical situation hampers their operations. (flexibility.co.uk, n.d.)
P 2.3 Assessment of the use of flexible working practice from Both the Employer and Employees Perspective In flexible working practice the programs are designed in a manner where employees get greater scheduling freedom in how they fulfill their obligations of their positions and are empowered t take the decisions more commonly. Other common flexibility includes telecommunicating, job sharing and compressed work weeks. From the perspective of an employee
The flexibility working practice enhances the power of decision making. Consequently the employees get more committed to fulfill their obligation and work toward achieving the organizational goals in a well-developed manner. In this system employees get the chance to choose their starting and leaving times from a range of available working hours. Thus they can use the time efficiently and work with more enthusiasm. Under this arrangement the standard work week is compressed into fewer days. By selecting the available days employees can enjoy more free time and also can involve themselves in other tasks. These arrangements offer employees a system where they can voluntarily share their tasks and duties of one full time position, with both salary and benefits that the company prorated between those two individuals. These programs are increasingly adopted by the companies so that they can avoid the lay-off. This system helps employees to improve their skills.
From the perspective of employer
This system attracts the people who have proper KSA but do not want to follow a flexible time. By adopting this flexible system company can hire multi-talented employees and gain competitive advantages. The arrangement is an effective one to retain the employees in order to achieve organizational goals. Flexible working system motivates and energized the workforce easily which contributes a lot concerning managing the workers. It reduces accommodation cost.
This system reduces the operational cost.
The arrangement is a very good option for improving business performance. (Careers, n.d.)
P 2.4 Impact of Flexible Working Practice that Changed the Labor Market Labor market flexibility refers to the ability and willingness of the workforce to respond and react to the changes in different condition of the market which includes change in wage rate and demand for labor. Labor market factor plays an important role in the labor market functions and contributes as a significant element which influences the adjustment of the demand and supply of labor. A major element of labor market flexibility is the flexibility of wages to adjust and bring about equilibrium between demand and supply. Relative wage flexibility adjusts the wage rates between different region and economic sectors. However Harrods has always taken the advantage of flexible wage arrangement which directed them to maximize the profit. From another point of view if the difference between work and non-work reward is too small there may be little incentive to work.
Therefore, excessively generous unemployment benefits may reduce labor market flexibility. The amount of tax paid from wages can also affect flexibility via its effect on incentives. In Harrods multi-talented workers are able to adjust their working patterns on workloads to suit changing demand conditions. Training and other development programs similarly are able to prove market flexibility. Looking at the concept of flexible working practice from the company’s point of view Harrods has the greater freedom to hire people when the demand increases and fire them when the demand decreases. In this arrangement, labors are more effectively informed about the job vacancies and opportunities for promotion. So the employees of Harrods can successfully respond to these chances. (Online, n.d.)
P 3.1 The Forms of Discrimination That Can Take Place
Discrimination is defined as the denial of social participation or human right to categories of people that is based on prejudice. This refers to the unfair treatment one gets because of having the actual membership or perceived membership to a certain group or particular category. Different types of discrimination can be observed in organizations specially in the one where people from various walks work together. Sex Discrimination
Discriminating people on the ground of their gender is referred as sex discrimination. Harrods has been found accountable for sex discrimination. (gurdian, n.d.) Age Discrimination
Discriminating an individual basing on his age without any valid reason is very much common in this sector though Harrods has succeeded to a great extent to set their business free from this kind of unfair treatment. Marital Status Discrimination
People frequently become the victim of biased treatment because of their marital status or being in a civil partnership. Harrods try to treat the employee fairly regardless their marital or relationship status. Racial Discrimination
Racial discrimination frequently takes place in country like UK. In spite of some unexpected occurrence Harrods has managed to avoid this type of partial approach toward the employees. Pregnancy Discrimination
Sometimes women are driven out from their job because of their pregnancy. The top level managers of Harrods have implemented particular strategy for pregnant employees. Religious Discrimination
Religious discrimination is strictly prohibited in the company’s strategy. Though sometimes ground level managers have been found discriminating among employees on the ground of their religion, the top management has always taken steps against it. Disability Discrimination
Disability discrimination means treating the people unfairly who are physically challenged. Victimization
Sometimes the victim is treated in a biased manner because of complaining against his subordinates. (rule, n.d.) (gov.uk, n.d.)
P 3.2 The Practical Implications of Equal Opportunity Legislation Equal Pay Act 1970: This act describes that employees will be paid according to their position, merit, responsibilities regardless sex, age, race, religion, marital status etc. Race Discrimination Act 1992: This act has been established to ensure the prevention of discrimination on the basis of race and related issues with race. Sex Discrimination Act 1995/7: This aims to prevent from any unlawful activities regarding sex discrimination. It also involves the discrimination that deals with marital status. It emphasizes on employment, harassment, education, training, provision of goods and services.
Disability Discrimination Act 1995 and 2005: This act demands that physically challenged people will be provided with their rights and special treatment such as education, benefits, special transportation, job and other facilities etc. Employment Act 2008: This act as been established for ensuring rational payment as wages or salary, proper working hour, job security, selective hiring process, good work environment etc. Harrods strictly follows strategies that are abide by the rules and handles the legal issues wisely. Implementation of these rules not only ensures the right of the employees but also supports the company to take steps against any kind of unethical behavior for the workers. The above mentioned acts contributes greatly to the organizational culture and functions if implemented properly. Because of these act company is bound to ensure
1. Selective and fair hiring process
2. Unprejudiced wages and salaries
3. Job security
4. Discrimination free reward and payment system
5. Safe and reasonable work hours
6. Definite percentage of personnel from minority (women, certain ethnic group)
7. Impartial work environment
(Cynthia D. Fisher, n.d.)
P 3.3 The Approaches Adopted to Manage Equal Opportunities and Managing Diversity The approaches an organization can take to manage equal opportunities and to manage the diversity are: Approaches
Achieving better organizational outcomes
Achieving organizational objectives through managing diversity Integrate HRM policies and other policies with the diversity management strategy By linking up all the strategies it will be more efficient to reach the goal Diversity Sensitivity
Establishing productive and communication system the problem regarding diversity can be coped up with Conducting training and development programs
to improve the communication Effective communication will reduce the problems regarding diversity Cultural Inspection
Identifying the obstacles the diverse groups are facing and solve them with feasible policies Generate changes to address and solve the problems
Identify the groups creating problems and take steps to reduce the obstacles will result in better outcome Diversity Enhancement
Changing the organizational culture by changing the composition of the workforce Select and recruit employees from diverse group
New employees will play the role to change the culture of the organization (Tath, n.d.)
P 4.1 Different Methods of Performance Management
An ongoing process of communication between the manager and the employees that occurs in order to accomplish strategic organizational goal is defined as Performance Management. There are three types of methods for performance management. 360 degree method
Management by objectives
In 360 degree method the performance is measured by all the people involved in the business functions which include the subordinates, peers, client or customer and the employee himself. It is a commonly used method. Harrods frequently use this method to measure and reward the performance of their employees. Harrods is a luxury shop which allows its employees to have direct connection with the customers. On the other hand employees are directed by the subordinates and share the flow of information with their managers and peers. So they can effectively measure the performance. Harrods also encourages self-judgment and self-motivation to get better outcomes from the employees. In management by objective manager and employee agree upon a specific and obtainable objective the performance of the employee is measured on the basis of the extent to which he has attained the objective. Harrods gives the salesman a certain limit of sales within a span of time upon which the performance of the employee is measure. The rating system is an alternative system where managers define a standard and rate the employees by measuring their performances. Harrods use this method to measure the performance of the employees. (Cynthia D. Fisher, n.d.)
P 4.2 Assessment of the Approaches to the Practice of Managing Employee Welfare Employee welfare is defined as efforts to make the employee’s life worth living. The major approaches to manage employee welfare are- Manager must recognize the needs of the employee and. Harrods always finds out the needs of an employee and tries to reward him in a manner that will satisfy him. Employees choose the benefits differently because of their different condition, personality and situation. This is called cafeteria approach. The employer should not perceive a compassionate posture.
There should be systematic and periodical evaluation of performance of the employees. The cost of service should be calculated and the financing should be established on a sound basis. Harrods follow all these principles to ensure the welfare of the employees. P 4.3 The Implications of Health and Safety Legislation on Human Resource Practices Occupational health and safety legislation system regulates the standard of workplace health and safety in order to outline consequences for breeches of the standard, prevent the unexpected occurrence and diseases and injuries. It describes the responsibilities and rights of employers and employees. this legislation requires that the employers will do anything that is possible and reasonable to protect the employees and provide them with the security they deserve.
These legislation ensures that the employees will not work under the environment which is not secured and safe for them. Human resource management always considers the employees as the asset of the organization and values them as one of the major factors of the organization. Human resource demands that the policy of the company should be established by putting the people first. These legislation play a key role to make the managers emphasize on the employees who are working for the organization and priories their security and safety over the profit maximization. Harrods is always aware of the security and safety of the employees. So they provide them with different kinds of facilities that ensure that (Cynthia D. Fisher, n.d.) (hrcouncil.ca, n.d.)
P 4.4 Evaluation of the Impact of One Topical Issue on Human Resource
Practice One issue that is very important for the human resource is the connection and balance between the policy and human resource strategy. The conflict between managing the financial resources and human resources is a greater challenge. In the era of this global business it is very difficult to equal the cost effectiveness with the efficiency of the employees. Harrods always face this kind of issues and problems. They have adopted certain strategies to reduce the imbalance between these two. To ensure the integration between the human resource strategy and all other strategies Harrods need to implement their plans more efficiently and effectively. (Online, n.d.) (Scribd, n.d.)
Human resource establishes and develops the culture of any organization which ultimately leads to success in gaining organizational mission and vision. It benefits to attach the employees with the employers and make the way of communication more operative. Human resource management enhances the chance of better output and inspires the employees to fulfill their responsibilities in well-organized manner. Organizations which follow the proper behavior towards employees also get employee satisfaction which is very significant for the organization to gain successful aims. It also helps the managers to increase their understanding about managing and motivating the employees. Human Resource Management shows the proper system of selecting, hiring and recruiting people and ensures to discover and explore the appropriate standard to evaluate and reward the employees. In short human resource management contributes vitally to all types of organizations in make the most of profit. References
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