HARRODS HRM SUCCESS STORY

INTRODUCTION

The people in an organization are the greatest asset more valuable than the buildings, more valuable than the machinery and more valuable than the capital investment. Why do I say so? Employees provide an asset that is unique in the market in terms of personality, character and decision making. These three aspects are what make the difference in performance; creativity leads to new unique products, strategic decision making provides opportunities that never existed and customer relations brings about customer loyalty. These are aspects that cannot be acquired from standardized inputs and therefore human resource management is a very crucial aspect of an organization. Through analysis of case studies and methods of human resource management we will understand this aspect better.

 

Task 1.1 Guest Model in Harold

Guest Model which was developed by David Guest (1989) was based on the assumption that HRM is distinctively dissimilar from traditional personnel management and the model was rooted in strategic management. The main reason behind this argument was the fact that other than integrating human personel into human management, the model also seeks behavioral commitment to organizational goals, it worked better in organizations with an organic structure, and the perspective is unitary with a focus on individual and emphasis on a full and positive utilization of human resource. The model had 6 dimensions of analysis namely; HRM strategy, HRM practices, HRM outcomes, Behavior outcomes, performance outcomes and financial outcomes (Price, 2004).

The HRM strategy included practices such as differentiation of products, focus on quality and matters related to cost. The HRM practices on the other hand were concerned on matters pertaining to selection, training, appraisal, rewards, job design and involvement. The HRM outcomes which is the main focus of the model employees’ commitment, quality and flexibility while behavior outcomes had impact on employee’s motivation, cooperation and level of involvement. The performance outcomes included high productivity, quality innovation, low labor turnover and customer complaints and finally the financial outcomes were profits and return on investments.

The main focus however is on HRM outcomes and Strategic integration. Guest argued that HR should be integrated on the duties of the manager and therefore should be treated as part of the company strategies and not as a separate entity.  One of the outcomes of HRM is employee commitment which was achieved as a result of the employer having more than an economic relationship with the employees. Guest argued that having some psychological relationship and sharing of goals with workers would really increase employee management. Workforce responsibility another product is crucial in ensuring those employees are able to handle or respond to changes. Quality which is the last outcome of HRM is achieved by acquiring a high quality workforce.

Harrods which is a high end market business not only recognizes the importance of the Guest models but has really applied them. Since the takeover by the Qatar Holdings in 2010, the business has really gone through a real transformation with the workers being the biggest beneficiaries. The company has strategically integrated the employees to the business’s operations. The changing of the organizational structure and leadership really helped in management of the workers by giving them more decision making power and more responsibility which also increased their commitment. Other important strategies that the 160 year old business took were inclusion of talent spotting and mentoring and coaching programs as part of the strategic plan. This will be very crucial in improving quality of the entire business.

Task 1.2: Difference Between Personnel and IR

The approach to HMR management have been very varied throughout the study with various approaches sharing a small portion but being very different in the other parts. Storey’s view is no different from various other models, he argued that the difference between human capability and commitment is the reason for difference in performance of various organizations. The difference in strategic aspects included type of initiatives which were either piece-meal or integrated, labor management and key relations, decision speeds and type of corporate plans which were either central or marginal. Other major differences were in terms of rules, focus on management actions and referent behavior in relation to a company’s values and acceptable applications.  The model also believed that Human resource is a means of achieving an organization’s goals (Fombrun et al, 1984).

Harrods has been exceptional in the promotion and development of their personnel a factor that has really paid dividends. The Qatar owned 1.5 billion pound businesses has put its focus on its most valued asset which is the employees, through a set of programs that not only identify the best talent in the market but also develop to become the best in the industry. This is the same approach that has been used by Tarmac who also value human resource management as a strategic process. The organization which has expanded its businesses needs to keep developing its people. This is done through engaging the employees to use their energy and skills to improve the business. This is facilitated by a motivational program that makes sure employees have clear and understandable targets and recognizing them for their efforts

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Task 1.3 Implications for Line Managers and Employees

Strategic approach more often than not leads to a massive impact on the entire institution and not only on the employees. The same case applies to Harrods who have applied the strategic approach since the change of ownership. The line managers who will be the first as we focus on various groups of the institution have had their own share of changes. Line managers are now in a position to operate costs more effectively. This has been achieved by the fact that even employees will now be under their command hence can focus on their expenses. The line managers can now specialize in day to day people management (Jackson, Schuler and Werner, 2009). These as a matter of fact has become the duty of brand managers as they try to ensure the staff of the entire organization lives the brand values and the mentoring and coaching program meant that more interaction between the employee and the employees had to exist. Finally the creation of fewer hierarchies has meant that Line managers are virtually in charge of the entire operations at their level hence can organize work allocation and Rota.

The application of Strategic HRM has definitely had a massive effect on the workers. The employees through the new acquired responsibility in the form of leadership which involves them having to make more decisions will dramatically improve their innovation which translates to greater productivity (Jackson, Schuler and Werner, 2009). The change of the organizational structure has led to more employee collaboration and interaction with higher ranking individuals who have more knowledge of the market and the organization a factor that will greatly improve efficiency of Harrods. Through the application of living the brand program, the organization will be able to set the direction of the organization as well as execute a corporate that builds commitment. Coupled with the ability to make decisions the employees feel more appreciated and hence more committed to Harrods ambitions.

Task 2.1 Flexibi

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