Human resource Management at Harrods
Table of Contents
Task-1 Understand the difference between personnel management and human resource management 5
P1.1- As new internship HR Assistant at Harrods, your new manager wants you to distinguish between personnel management in Small retail organisations practising PM and human resource management at Harrods. 5
P1.2 Assess the function of the human resource management in contributing to Harrods purposes. 6
P 1.3 Evaluate the roles and responsibilities of line managers in the human resource management department at Harrods. 6
P1.4 Analyse the impact of legal and regulatory framework in Harrods human resource management. 7
Task-2 Understand how to recruit employees. 7
P2.1 & P2.2 Analyze the reasons for human resource planning at Harrods. Outline the stages Harrods can adapt in planning human resource Requirements. 8
P2.3 Compare the recruitment and selection process at Harrods with another organisation such as John Lewis, M&S or Sainsbury etc. 8
P2.4 -Evaluate the effectiveness of the recruitment and selection techniques in the above two selected organizations. 9
Task-3 Understand how to reward employees in order to motivate and retain them.. 10
P3.1 Assess the link between motivation theory and its reward with an application on Harrods Case study. 10
P3.2 Research and Evaluate the process of job evaluation and other factors determining pay with special reference to Harrods as your scenario. 11
P3.3 Assess the effectiveness of reward systems in different contexts with your references to Harrods 11
P3.4 Examine the methods adopted by Harrods to monitor employee performance. Comment with any suggestions. 12
Task-4 Know the mechanisms for the cessation of employment 13
P4.1 Identify the reasons for cessation of employment with special reference to Harrods in General. 13
P4.2 Research and Describe the employment exit procedures used by Harrods and compare it with any other organisation of your choice. 14
P4.3 Consider the impact of the legal and regulatory framework on employment cessation arrangements with special reference to Harrods. 14
Human resource management is an important organizational activity which is performed in order to carry out end to end human resource planning for the most important assets (people) of the organization. The aim of present paper is to look into the human resource function for Harrods and looking into various aspects of human resource functions comparison would be done with the other organizations operating into same field such as Sainsbury and M&A. Below learning outcomes would be obtained through present paper:
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LO 1 Understand the difference between personnel management and human resource management
LO 2 Understand how to recruit employees
LO 3 Understand how to reward employees in order to motivate and retain them
LO4 Know the mechanisms for the cessation of employment
LO 1 Understand the difference between personnel management and human resource management
Personnel management in the organizational context can be considered as the sub set of the human resource management wherein personnel management would be limited to the functions of salary processing, hiring and development of terms & conditions for the employment (Armstrong, 2005). In addition to this, personnel management would be developed in smaller organizations and these organizations would not be having fully fledged human resource department in the organization. Human resource department in the organization is not only related to the specific functions but relates with the overall development of the employees working in the organization.
P1.1- As new internship HR Assistant at Harrods, your new manager wants you to distinguish between personnel management in Small retail organisations practising PM and human resource management at Harrods.
Personnel management is followed in the small retail organizations wherein the main objective would be to develop the support function for the employees of the organization. Human resource management is much wider aspect wherein it would be adopted in bigger organizations and there would be distinction between human resource management and personal management as human resource management would be related with assignment of clear roles and responsibilities for the organizational stakeholders. Small retail organizations exercising personnel management would not be having sufficient budget to implement human resource management and they would not have sufficient focus towards the human resource management activities (Beardwell, 2004).
Instead of adopting personnel management, human resource management activities adopted in the bigger organizations such as Harrods would be having the main objective of deploying right number of people, with right skill at right point of time so as to maximize organizational benefits. Human resource management function of Harrods would try to develop the competitive advantage for the organization by deploying skilled workforce. Recruitment and selection process would involve attracting skilled candidates so as to fulfil organizational needs. Organization would be concerned for the overall development of the employees working in the organization. Roles and responsibilities for the organizational stakeholders would be clearly explained in the organization so that there are no conflicts between various organizational stakeholders.
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P1.2 Assess the function of the human resource management in contributing to Harrods purposes.
Human resource management function adopted in context to Harrods has the major objective for alignment of the personal goal for the employees and organizational goals of Harrods. Proper planning is being done by human resource department in Harrods so that employee’s career path is aligned towards attainment of organizational goals. Harrods tend to motivate their employees in order to attain organizational goals. Motivation for the employees would be important in order to attain higher organizational goals. Human resource planning is done by the human resource department of the organization in order to offer opportunities for the employees (Harrison, 2002). By offering various opportunities employees in Harrods would be able to achieve higher jobs and growth. Human resource function in the organization would assess the need for human resource required in the organization and explore the training needs of the employees of Harrods. Imparting training in the organization would be helpful in order to develop skill set in the organizational context and manage their future goals. Future roles can be played by the employees by acquiring required skill set and knowledge gained from the training sessions.
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P 1.3 Evaluate the roles and responsibilities of line managers in the human resource management department at Harrods.
Line managers in Harrods are not only involved for the recruitment and selection of candidates but play their role for the overall development of employees. Below are the major roles and responsibilities for the line managers in Human resource department of Harrods:
- Planning and organizing: Human resource department in Harrods plan work areas in order to manage their work responsibilities and attain organizational objectives.
- Recruitment: HR managers at Harrods would recruit candidates wherein after assessment centre interviews would be conducted. Line managers would explore for the right candidates so as to fulfil organizational objectives.
- Promote equality and diversity: Harrod’s line managers have given the responsibility to promote the culture of diversity and equality. Line managers would be responsible for offering equal opportunities for the employees in the organization.
- Training and development: According to the role assigned to line HR it is important to assess the need for training and arrange training program to develop required skill set for them (Hawkins, 1994).
- Management of employee performance: Line HR in the Harrods is expected to assess employee performance and should propose improvement in the employee performance by devising suitable tools and opportunities.
Human resource activities in the organizational activities of Harrods would look into the legal and regulatory framework so that any adverse impact on the organization can be avoided. Various organizational functions of Harrods such as recruitment & selection, HR planning, salary processing and terms & condition development need to be done as per the legal and regulatory framework. Focus of human resource department should be in establishing quality among employees by not discriminating based on gender, age, race and religion so that each employee gets equal opportunity. Regulatory and legal issues in the organizational context to Harrods would give its attention towards the ethical standards which Harrods need to adopt (Rogers, 2004). There can be serious implications for Harrods for not following legal and regulatory guidelines. Equality Act 2010 is one of the major regulations which Harrods need to consider and based on this law Harrods should not discriminate among its employees based on race, religion, age and gender etc. In addition to these factors such as intellectual property rights, privacy and ethics are under special consideration in order to ensure compliance for the legal and regulatory compliance for the organization.
Task-2 Understand how to recruit employees
Recruitment of the candidates is an important and strategic function for Harrods. Human resource department of Harrods pays high emphasis on recruitment of its candidate and Harrods develops attractive job profile so as to attract suitable candidate base towards the job advertised by the organization. Recruitment process for Harrods is quite different as compared to the small retail shops as Harrods would make use of multiple sources such as internal resources, advertisement, social media and external consultants for attracting candidates for the advertised position (Treen, 2000).
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P2.1 & P2.2 Analyze the reasons for human resource planning at Harrods. Outline the stages Harrods can adapt in planning human resource Requirements.
Human resource planning concerns with assessing the need of desired number of candidate with suitable skill set in order to meet requirement of the organization in terms of number of candidates and knowledge required for them. Human resource planning is important for the organization and it is adopted by the organization so as to attain desired organizational goals. However, human resource planning process is of utmost importance for Harrods wherein organization needs to develop its requirement for candidates in advance and accordingly candidates need to be recruited. Harrods has the objective of hiring right number of candidates with right skill set and in right job.
Human resource planning would ensure that Harrods has controlled budget and desired skill set for its employees. Forecasting is an important process for Harrods as it involves estimating number of candidates with suitable skill set so that organization can make hiring as per the forecasting made (Poulter, 2005). For example, in case of market expansion Harrods would hire large number of candidates with desired skill set so as to fulfil organizational requirement. This would help in ensuring that Harrods has available candidate pool and there is no shortage of budget or over expense made on the employee base of the organization.
P2.3 Compare the recruitment and selection process at Harrods with another organisation such as John Lewis, M&S or Sainsbury etc.
Depending upon the kind of job for which recruitment needs to be done there would be different recruitment and selection process adopted by Harrods and this is quite different from some of the major organizations operating in the industry. There are two ways of recruitment in Harrods which are internal recruitment and external recruitment. In the first phase of recruitment, Harrods would look within the available employee base of the organization wherein job would be advertised on the intranet and employees within the organization would be offered equal opportunity so as to grow within the organization.
In the second phase of the recruitment, external candidates are explored by the organization by asking employees for referral, advertising position on website of the organization and advertising job in magazine named “The Appointment Journal” etc. In addition to these sources, Harrods would also make use of the social media and online advertisement medium so as to advertise for the particular position available within the Harrods. Sainsbury is one of the organizations within retail industry which adopts similar recruitment process with internal and external recruitment ways (Paauwe & Boselie, 2003). Sainsbury has the provision of internal talent program through which internal employees of the organization are offered chance of promotion based on the skill set and past working experience. In case there are insufficient internal candidates within the organization then the particular job position would be advertised through external network such as social media and online marketing tools. Candidates would be asked to apply with their resume and short listing would take place and this would be followed by interview, background check and final joining process.
P2.4 -Evaluate the effectiveness of the recruitment and selection techniques in the above two selected organizations.
Recruitment and selection process adopted by Harrods is much efficient as compared to the other organizations in the same industry such as Sainsbury and M&A. The two factors responsible for the effectiveness of the recruitment and selection process for Harrods include cost effective and finding the candidates with desired skill set. Since most of the recruitment and selection process for Harrods and Sainsbury are same so there would be equal level of efficiency for both these organizations. Harrods saves on the cost of advertisement for the particular position by looking from the internal candidate database.
Harrods introduce the candidates with the culture of organization by making advertisement for the job through personal website of the company. This would also allow screening the candidates who are not as per the culture of the organization. Assessment task and interview process adopted by Harrods would develop double filter for the candidates in order to screen out candidates who are not desired by the organization (Nixon, 2004).
Task-3 Understand how to reward employees in order to motivate and retain them
Rewards are being used by the organization in order to motivate their employees wherein usages of both monetary and non monetary rewards are being done by the Harrods. Harrods develop suitable job evaluation technique so that employees with good performance can be identified and these employees can be rewards to motivate them and retain them within the organization.
P3.1 Assess the link between motivation theory and its reward with an application on Harrods Case study.
The major focus of the human resource department of Harrods is towards motivating the employees by offering suitable monetary and non monetary rewards to them. Loyal employee base is developed by the organization by developing reward strategy which ensures rewarding employees with surety in case employees have performed as per organizational expectations. Motivation is an important part of the employee development for the organization and this is reflected in their statement which says that “Attract an employee because he/she wants to do it” (Guest, 1999). Harrods has high dependence on employees and consumers in order to run their business effectively. Harrods tend to provide employees with good work life balance wherein organization ensure good life style for employees, offer flexible work hours and offer additional health benefits for them. Staff survey is performed by Harrods with the name of “Viewpoint” and this survey helps the human resource department to know about overall satisfaction of the employees and develop ways through which employee satisfaction can be enhanced by Harrods by adopting suitable ways. Some of the key benefits which are offered by Harrods which motivate employees towards making high performance to their organization can be summed as under:
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- Career breaks are offered to the candidates with duration of 6 months to 5 years wherein candidates would be given the right to join their job back from the career making exercise
- Pension schemes are offered to the candidates as an additional long term benefit by Harrods
- Lifestyle break is given to the employees for 4 to 12 weeks so that they can take some rest from the regular organizational work and can enjoy with their families
Hay group profile is one of the most widely known and efficient methods for job evaluation which helps the organization in order to identify suitable candidates. Hay group method for job evaluation is being use by more than 7000 companies is more than 40 countries of the world. There are three important factors which are considered necessary for job evaluation and these can be given as under:
- Skill set and knowledge required for the job
- Level of job responsibilities assigned
- Thinking level required in order to manage the job complexities
P3.3 Assess the effectiveness of reward systems in different contexts with your references to Harrods
Harrods have its high focus towards rewarding its employees and synchronize the individual and organizational goals. Some of the major objectives for the reward system of the organization can be given a under:
- Rewarding employees who are involved into attainment of the business objectives for the organization
- High performance employees are identified in the organizational context and these employees would be rewarded through suitable reward system so that high performing employees retains in the organization for longer time period.
- Linkage between reward system of the organization with the market competitiveness is helping the organization to allow employees to attach their performance with the competitiveness in the marketplace (Reid and Barrington, 1997)
- Human resource department of the organization is involved into career planning and career progression so that employees do not have concern over their growth perspectives
- Stock options are offered to the candidates so that they can remain with the organization for much longer time
- Offering reward through selection of candidates through internal sources would help the organization in saving the advertisement cost for particular position and employees would be motivated as a particular candidate has been offered promotion within the organizational hierarchy.
Harrods monitor the employees’ performance in the organizational context based on the achievement of the goals from the employees in correlation with the identified goals and objectives of Harrods (Reader, 1998). Harrods has considered below mentioned factors in order to provide annual rating to their staff based on the performance:
- Appraisal from relevant manager
- Cost effectiveness
- 360 degree appraisal system including self appraisal
- Absenteeism from work
- Abiding processes and policies at workplace
- Timeliness of the work allotted to the employees of the organization
- Quantity of the work maintained by employees with suitable quality parameters
- Management by objectives
Task-4 Know the mechanisms for the cessation of employment
Cessation of the employees is another important step for the organization with equal importance as recruitment & selection. Harrods make use of the cessation for their employees with suitable reason and there are mainly three ways through which cessation of employees is being done and these are termination, transfer and resignation (Mullins, 2005). Cessation of employees would be a critical activity which Harrods need to dealt with immense care so that organization does not face adverse implications due to adoption of improper cessation policy in which race, religion, age and sex is considered as the basis for the cessation of the employees from Harrods.
P4.1 Identify the reasons for cessation of employment with special reference to Harrods in General.
Harrods has the practice to retain its employees until and unless they are abiding by the processes and policies of the organization. Employees who do not fulfil terms and conditions of the organization would have to undergo cessation. There can be numerous reasons for which employees of the organization would undergo cessation and some of the common reasons in context to Harrods can be given as under:
- Sometimes organization might layoff their employees due to reduction in budget for the human resource or organization is experiencing losses due to high employee cost
- Mergers and buyout for the organizations may involve cessation of the employees in the organizational context
- Employees who do not meet the organizational performance criteria would be terminated by the organization due to poor performance
- Behavioural misconduct is one of the major reasons which may involve cessation of the employees in organizational context (Garrick, 1999).
P4.2 Research and Describe the employment exit procedures used by Harrods and compare it with any other organisation of your choice.
There are mainly three exit ways in context to the Harrods for the employees of the organization and these can be given as under:
- Termination: Termination of the employees is being done in the organizational context by adopting suitable regulatory and legal compliance in the organization (Marchington & Wilkinson, 1996). A series of steps is being adopted by the organization in order to terminate particular employee and these steps would include issuing the warning letters, disciplinary notices issued to the candidates and exit interview conducted with the candidates leaving the organization so as to know their feedback on organization and its policies.
- Resignation: Employees can resign from their particular position in the organization in order to seek better growth opportunities outside to the organization. In case employees resign from the particular position then he/she would have to serve particular notice period based on the organizational requirements.
- Transfer: Employees are being transferred by the organization from one place to another on employee demand and based on the organizational need as well. Organizational need for employee transfer can be ensured by forecasting employee need in the organizational context and availability of internal & external candidates (Buchanan and Hucczynski, 1991).Health and social care assignment help -3
Recruitment of the employees in organizational context to Harrods is being done through development of employee contract. Contract between employees and employer needs to be developed as per the regulatory and legal frameworks. Many a times contract between the two parties gets terminates due to particular situations and in these situations it is important that both parties follows proper legal and regulatory framework so as to avoid any adverse legal action. For example, economic dismissal can be done by the organization under adverse economic scenario but it is important for the organization to follow suitable regulatory and legal compliance. Some of the recent examples observed for economic dismissal and possible regulatory guidelines are given as under:
- Looking into the termination between employees and employer in Chile it can be said that the termination of contract between two parties would require payment of 30 days salary from the employers to employee in case this contract has been terminated due to the economic situations prevailing in the marketplace (Keep, 1989)
- In Ethiopia, termination of the employees can be done in case there is reduced demand for the products or services of the organization or changes in the product demanded. In order to terminate the contract between employees and employer in such situations, employer need to pay 1 month salary in case employees are 1 year old and employer need to pay 2 month salary in case employees are more than 1 year old.
Present paper has showcase the difference in personnel management function adopted in context to small size organizations against the human resource management adopted in context of Harrods. Further present paper shows various activities involved in the human resource management function such as recruitment & selection, salary processing, performance appraisal and cessation etc. These functions are performed by the human resource management function in the organization and HR functions adopted by Harrods are quite different as compared to the other retail organizations dealing in the industry. Also there is high degree of similarity between the human resource functions of Harrods and other retail organization such as Sainsbury and M&A.
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