Managing human resource is regarded as internal activity of an organization. An effective functioning in the competitive business environment can be marked by the managers of an organization if they direct their efforts towards managing the available resources in an effective way (Managing Human Resource, 2014). This is because with the help of an employee, only smooth flow of working can be carried out within an enterprise. This will ultimately enable corporation to attain its goals and objectives. This report is based on the case study of Harrods. It is the retail organization that has global reputation and brand value. The study will basically showcase the different perspective of human resource management where it will provide detailed information regarding the application of varied models on the function of Harrods. In addition to this, the report will also showcase the ways through which flexibility related approach can be implemented within an enterprise. In addition to this, in the given study, the impact of equal opportunity within workplace along with implication of various approaches to the human resource management will be discussed in a detailed manner.
Guest model of human resource management was propounded by David guest in the year 1997. It is regarded as one of the most important model. This is because with the help of this model, human resource related activity of an enterprise can be directed towards attaining the strategic goals and objectives of Harrods. This model is based on the perspective that there is huge amount of difference between traditional as well as modern human resource management. In this respect, the model has recommended six dimension of analysis (Guest’s model of HRM, 2014). It comprises of HRM strategy, practices, outcomes, behavior outcomes, performance along with financial outcome etc.
The application of guest model at Harrods can be carried out by forming a link between strategic goals of an enterprise and their HR strategies (Guest’s model of HRM, 2014). For example, if Harrods has the strategic plan to carry out the expansion of their departmental store. This particular aim of an enterprise can be met if they possess the team of competent employees which is capable enough in dealing with the problem of working in some other business environment. In addition to this, with an aim to fulfill their need relating to the competent employees, Harrods can seek assistance from various types of HRM practices such as organizing training programs within an enterprise along with hiring the talented personnel etc. By performing all such type of activities, outcome can be seen in three ways such as behavioral, performances and HR etc. Overall, these all activities will lead to increased profits and sales.
Comparison has been made between story’s definitions of HR, personnel and IR practices. There is huge amount of difference between all these identified aspects. Human resource management of an organization is regarded as the modern concept where an effective relationship is established between HR practices and strategic goals (Ci-sheng and Shu-ming, 2012). However, this particular thing is not seen in the case of personnel and IR practices. This is because in this approach, it is being assumed that HR manager has a specific function of managing people within an organization as well as performing the record keeping work.
From the case of Harrods it has been identified that they rely with story’s definition of HRM related approach. It is with the help of this approach only, organization is successful in directing their efforts with respect to the remarking an effective presence in a global business environment. Another difference between both the identified approaches is in terms of communication. In Harrods, employees are allowed to freely express their views in front of the managers of an enterprise (Gannon, Doherty and Roper, 2012). This showcases the aspect of direct communication. However, in Tesco, such type of thing is not seen as they rely on indirect form of communication where workers have to follow long procedure with an aim to solve their queries.
There are various implications to the line managers and employees for developing a strategic approach to HRM at Harrods. By organizing changes in the existing policy of an organization, tactical approach to HRM at Harrods can be developed. In addition to this, recruiting an employee within an organization as per the strategic goals and objectives, assistance with respect to the SHRM approach can be provided. On the other hand, it has also being suggested to the line manager of Harrods that training and development are needed to be organized within an enterprise on regular basis (Schuler and Jackson, 2005).
This is because by complying with such type of practices, necessary skills and abilities among workers can be developed. This will enable them to direct their varied efforts towards attaining the tactical goals and objectives of an organization. Further with this, involvement of workers in the decision making process of an organization can be regarded as another way with the help which strategic approach to HRM at Harrods can be developed. This is because by performing all such type of activities, commitment of workers can be developed towards tactical objectives of an enterprise (Tsai and Yen, 2008). This will lead corporation in terms of implementing the identified approaches in an effective way.
The model of flexibility of working can be applied in practices of Harrods. The core and periphery workforce model of flexibility is determining two framework of elastic working. In the first part, it defines core workforce of Harrods. It contains top managers, highly skilled and permanent employees. In this process, the management of Harrods has provided high degree of job security and training programs. These practices can be understood as functional forms of flexibility. These types of employees get various benefits from human resource practices and more commitment from organization (Jago and Deery, 2014).
The administration of Harrods can implement it in employee’s management plans with the help of effective staffing process, training and development for promotion and proper compensation link with work. The other part of this model is Peripheral workforce. It is associated with the development of various organization practices on the basis of numerical flexibility. The managers of Harrods can identify the main criteria of disjuncture between employee’s working preferences and organization. The manager can easily identify preferences of working hours. This helps HR managers in the process of scheduling duties of workers. Company also faces the problems from part time workers in form of staff turnover. But business entity also saves the training cost and other rewards. But part time or non standard way of working is providing great opportunities to Harrods (Mason and Mouzas, 2012). But negative effect on organization is enhancing labor turnover due to lack of opportunities for growth and advancement. Employees also get inadequate salary from company.
The management of Harrods can develop flexibility in organization. Some kinds of flexibility are discussed under this:
Numerical flexibility: The managers of Harrods may be creating numerical flexibility in work force management. In this process, organization can manage the size of workforce according to its requirement. Hotel industry has to increase number of employees in festivals and other season. This process can help management to reduce cost and expenses in other working days.
Functional elasticity: This type of flexibility could be easily implemented in Hotel business (Wilkes, Yip and Simmons, 2011). Employees have basic knowledge of other department of Hotel. So the administration of Harrods can easily switch workers from one job to other according to needs of employees.
Temporal: This process is very important and Harrods has to implement it in organization system. Because managers have to manage duties of employees either in day or night shift according to the work load. Administration can give extra duties for proper management of guests in rush hours.
Locational: it determines that organization provides facility to work from home to their employees. However, it can be evaluated that the management of Harrods cannot provide this facility to their employees. Because in Hotel industry, employees have to communicate with consumers face to face (Choy, 2012).
Financial Flexibility: The management of Harrods makes changes in wages and salaries of employees. For example, full time worker gets better monetary rewards as compared to non-permanent staff. Company also develops various incentive plans to increase level of efficient services. It boosts up employees satisfaction with better consumer response.
From employee perspective, flexible working hours determine that employees can manage their work according their needs. If an employee is working part time in Harrods then he can coordinate other practices with the job. Employee also gets good working knowledge that will help in other job. If an employee is a part of core job in organization, then employees get several benefits from company in form of high salaries and extra rewards. Company also organizes various training and development programs for permanent employees. This will enhance skills and knowledge of employees (Lawler and Boudreau, 2009). These practices highly encourage staff of Harrods in order to provide best services to consumer and hotel. Flexible working facilitates workers to innovate new ideas to avoid overload of work. The flexible working process determines many procedures and measures for effective management of employees in company. Organization can manage large numbers of employees on the basis of requirement. Company also hires non-permanent or part time worker for particular time period. These practices reduce the cost of procurement and training development expenditures. The salaries of part-time staff are comparatively lower from core employees. It decreases total salaries of employees (Rothwell, 2010). The top management of Harrods can transfer employees from one to another. These procedures enhance the skills of employees. Company also manages various types of monetary and non-monetary plans for core employees which will increase satisfaction and trust of staff. Flexible working creates a range of plans in the process of assignment of duties to workers in hotel industry.
Changes in the labor market influence flexible working practices of organization. The management of Harrods is facing many demographic, unemployment and culture issues from changes in labor market. The demographic factors include age, gender and qualification. Today, there is too much increment in number of female employees so managers have to consider problems and other factors in the process of scheduling duties in hotel. The management of Harrods has to evaluate the age and qualification of employees in the process of deciding wages and procurement of employees because if young people are not being satisfied by salaries they will frequently change jobs. In global business scenario, organization has an opportunity to acquire workers from various cultures (Developing a Human Resource strategy, 2014). But administration of Harrods has to formulate a range of strategies in order to manage flexible working conditions according to the needs and acceptance of culturally diversify workforce. In recession period, the unemployment rate is going up so managers have to reduce cost and manage flexibility for organization.
The policy makers of Harrods have to maintain work life balance for employees. It is very important part of flexible working in organization. In this, company should develop a supportive and healthy working environment that facilitates employees in order to manage balance between work and personal responsibilities. The work-life conflicts create negative impact on productivity and health of employee because this increases stress and dissatisfaction. So policy makers of Harrods are required to determine various plans that reduce stress of workers. These practices enhance employee’s loyalty and productivity because workers get success in efficient management of personal and professional life (Ci-sheng and Shu-ming, 2012).
There are various types of discriminations that are creating a negative impact on organization. Some discrimination is determined under statement:
Pay: The management of Harrods can face unfair allotment of wages, salaries and other benefits. So company has to develop various policies and implement labor laws that will protect interest of workers in terms of equal wages for same job. Managers describe all the rules and regulations with term and conditions of salary in written at the time of appointment (Dawson, 2005).
National origin discrimination: In present market Scenario, Company has to manage employees from different countries. In this, there are too many chances of unfavorable treatment with employees coming from certain parts of world having different dialect, culture, dressing, etc. The management of Harrods can create strict rules and regulations to avoid harassment and unethical behavior with employees belonging from different nations.
Religious inequity: This type of unfairness is being faced by all the organizations (Anttonen, 2008). The employees of some regions make fun on the values and beliefs of other workers from different region. This increases possibilities of conflicts in organization. Some top managers also use unfair practices in promotion and recruitment process of Harrods.
Gender: The policy makers of Harrods have to avoid the discrimination on the basis of gender. It includes various aspects of employment that contain procurement, training, promotion, salaries, job assignment and termination. Business entity can control sexual harassment in company with effective regulation and speedy solutions of complaints of women employees (Goldschmidt and Li, 2009). Company should provide cab and other security facilities for protection and safety of female worker.
The practical implications of equal opportunities legislation practiced in Harrods are mentioned under this:
Positive action: The management of Harrods can take positive action in the process of equal opportunities legislation practices. Company can develop an effective team of individuals or manager of employees that monitor all the operations of procurement and other processes of company. This prevents unethical practices in terms of promotion, selection of employees and cultural violations in company. The administration of Hotel can organize a variety of co-cultural activities and games among staff member (Sargeant, 2012). It creates healthy working environment so as to develop friendship and influence trust among workers and managers. The friendly talks among employees can help to reduce stress and conflicts in organization.
Genuine occupational requirements: Human resource department has to generate a clear notification in term of selection of employees. Managers should disclose number of vacancy for both male andFemale candidates. Company can use limited exemption in selection process of workers on the basis of region and origin. Business entity must define the characteristic of job and necessity of skills to meet post requirements (Chakraborty, McKenzie and King, 2009). The policy makers of Harrods should evaluate procurement on the basis of various norms before publishing advertisement for hiring.
Government laws: Business entity is required to generate equal opportunities and legislative practices in organizational system by properly implementing code of conduct of public authority. Management can introduce equity act in all operations of company.These government instructions assist supervisor in the process of developing equal opportunities for all kinds of individuals. In can remove unethical behaviors and practices of employees. These laws determine various techniques to avoid the occurrence of inequalities in organization system (Gannon, Doherty and Roper, 2012).
Various approaches are being adapted by Harrods to manage equal opportunities and diversities. The management of Harrods is maintaining an efficient communication system in order to coordinate and manage culturally diversified workforce. This system also helps manager to provide equal opportunities for various types of workers. With the help of effective messaging system, manager can easily convey the rules and goals of company to employees (Schuler and Jackson, 2005). It enables the management to get regular feedbacks so as to handle complaints regarding any unethical practices. It enhances the mutual understanding among managers and employees. This also maintains peaceful and effective working environment in organization.
The management of Harrods develops training and development activities to provide equal opportunities in promotion and growth. Company has started a talent spotting program in which managers identify talented people who can make important contribution and extra efforts for organization. Training and development is better process as compared to other systems for effective management of diversity and company can facilitate similar growth chances for all. The education process increases the skills and knowledge of employees. It helps employees in efficient coordination with others in the process of completing a particular objective (Rothwell, 2010). This system enables management to organize diversified workforce in an appropriate team. It reduces conflicts in company. So, administration can develop various monitoring and coaching practices with effective support networks that ensure success of training and development activities.
There are various methods used by Harrods in the process of performance management. Some techniques are described under this:
360 degree feedback: It is the one of the techniques used by the management of Harrods. This is an efficient method to identify performance of employees. In this performance, appraisal data is collected from employee. It includes subordinates, supervisor and some external consumers which provide information regarding performance of worker to management of Harrods. The main motive of this method is identifying training and educational needs. This system also helps administration of Harrods in the process of evaluation to identify success from skill development plans (What is 360-degree feedback?, 2014). It is also called multi-source assessment. This process assists managers to create changes in techniques and process of training and development for employees. This system also determines the relations and behavior of worker with other employees. If a member of staff behaves unethically with subordinates then management gets information about misbehavior. This helps top managers to take corrective action against employees.
Linking appraisal to the reward scheme: The management of Harrods is increasing performance of workers through linking appraisal to rewards. In this method staff can get some extra benefits in form of promotion and financial incentives if employee meets the targets determined by management. The administration of business entity gets information regarding performance of employees through supervisor and consumer that assist manages in formulation of incentive plans (Denisi, Budwar and Varma, 2008.). This is the best method to enhance productivity of employees. It also increases motivation of worker.
Behavior in performance: In this appraisal process managers identify the behavior of employees. Supervisor evaluates ways of working of workers. Manager also analysis skills and knowledge used by employees to manage their job. The policy makers regularly collect qualitative and quantitative data related to performance. It is very beneficial process for management of Harrods because it not only provides information regarding productivity of employees but also assists managers to ascertain of job responsibilities (Armstrong, 2009).
Managing employee welfare is very important part of organization. Approaches are being used by Harrods for employee welfare that are mentioned under this:
Stress management: The administration of Harrods has created various tactics in order to reduce stress of employees. Company organizes various counseling sessions where workers can provide information regarding causes of tension that contains health problems, environment at workplace, overload of work and other personal problems. This process boosts up understanding between company and employees. It assists management to determine various techniques to avoid the causes of stress. The administration of Harrods also conducts various training session for effective arrangement of employees (Delargy and Chatten, 2005). This assists staff to develop better coordination among different task and job objective.
Employees’ safety training: The policy makers of Harrods can arrange many training programs for safety and security of employees and guests of hotel. In this process, company organizes training for use of safety equipment in adverse conditions like fire. Manager also conducts counseling session of employees with doctors that provide information for proper handling of medical emergencies in hotel (Harris, Olsen andWalker, 2012). These practices greatly help employees to ensure safety. The feeling of security among employees increases the productivity of workers. This happens as they are aware about ways to handle any causes of accident.
The business entity has employed a medical team that can easily manage any type of medical situation. This team can reach without any delay at the place of accident. It ensures the follow up of safety standards decided by public authority. Company also provides medical and accidental insurance facilities to workers. This financially supports workers in bad health conditions or any accident that occurs in organization.
The management of Harrods has to implement health and safety legislation on human resource practices through enforcement of Health and Safety at Work Act 1974. It determines high standards of health and safety at place of work. This described various guidelines for company and employees. Harrods has to fulfill various responsibilities according to this law. It includes maintaining safety equipments, proper handling of material, training and development, safe working environment and appointment of safety representatives. This act also issues guidelines in which employee’s should take care of their and other person’s safety. Worker should cooperate with other employees in health issues (Lena and Tore, 2014). The management of Harrods has to follow various sections of this law otherwise company gets punished by government in form of penalties for avoidance of safety standards of public authority. The managers have to create various procedures and practices to face various conditions.
The Board of Harrods also created a worker’s compensation board. This system provides insurance covers and protects employee’s interest in conditions of accident at workplace. It ensures workers in form of access income and other benefits if he becomes injured at workplace. Company also provides training for occupational health in organization (Trethewy and Atkinson, 2003).
The main topical issue of Harrods case study is employee engagement in organization. The administration created various plans to improve employee engagement in company. To increase employee involvement, the managers have created changes in organization structure through job enrichment and increment in responsibilities of workers. Business also implements changes in leadership style. Manager encourages to employees to take decisions at various level of organization (Armstrong, 2009). Management develops new communication system that enables employees towards better coordination and outlining the goals of company. Human resource management has published a new magazine “Your Harrods” for employees. It comprises of interviews and personal information of various reputed persons. Managers provide the Intranet facilities for employees that enables sharing and transformation of information. HR department has made a group of employees where they can give their suggestions on various polices of organization. Managers also started a very unique activity with the name of “Bright idea”. In this, employees can share unique and innovative ideas for improvement in Harrods with top management. These practices highly influence the employee’s involvement in a range of operations in company. Business entity gets various innovative ideas and solutions for improvement in customer services. Organization also gets benefits from motivation of employees. The engagement of employees in organizational practices avoids many types of accidents and misconducts in company because workers can take decisions to solve distinct problems that occur in regular operations of Hotel. If management organizes a range of workers involvement activities in organization then it enhances trust of employees on company. This creates sense of belongingness in mind of workers thereby reducing employee turnover in company.
The report explains Guest model of HRM used by Harrods so as to identify the impact of various approaches on human resource practices of company. Study understands effects of flexibility modal in organization and determines many types of flexibility in form of functional and numerical that creates great impact on employee management. Report also explains various forms of discrimination like age, gender and etc. so as to understand the impact of these inequities on procurement process. Research makes attempt to identify roles of public legislation for effective management of inequalities. It analyses different measures of performance management in form of 360 degree feedback so as to find their effectiveness on performance appraisal. Report also understands various health and safety laws of government that must be followed by every organization.