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 Flexibility Model

The flexibility of a firm can be termed as the ability of an organization to adapt to changes that are emerging either in the market or within its own operations. This concept originated from Atkinson who noted a growing trend of firms seeking to adopt various form of flexibility either in operations or structure (Armstrong, 2012). There were three forms of flexibility namely; the functional flexibility, numerical flexibility and the financial flexibility (2012 ).  Other than the Atkinson’s iFlexible Firmi, there are other models of flexibility in the name of flexible specialization and lean production (Dyer, 1998).

The flexible specialization model was developed by Piore and Sabel during the second industrial divide. Flexible specialization was described as the ability to reorganize the production process through reorganization of the components of production a process which was facilitated by computer technology (Dyer, 1998). Though flexible specialization weakened labor, in the long term, working conditions and wages would improve. The lean production system on the other hand was a development of the Japanese and more specifically Toyota Car Company. The system used sub-contracts and Just In Time (JIT) delivery system to reduce costs. The system however had massive negative effects on the workers as it prevented development of workers ability through repetitive duties, led to overworking, there was minimal communications among workers and high incidences of Occupational Overuse Syndrome (OOS) (Dyer, 1998).

The most applicable approach in Harrods case is the Atkinson’s 3 flexibility areas. The functional flexibility applies in situations whereby employees can be redeployed quickly and smoothly. Though mostly focused on technical aspects, the same flexibility can be achieved in Harrods through increased freedom of the workers and decision making powers which will develop the employees holistically. The other area of application is the numerical flexibility which is the ability of an organization to easily increase or decrease number of employees. This is relatively applicable in Harrods by the agency scheme which has over 3500 workers. The final area is the financial flexibility which provides for pay levels that reflect the market labor demand and supply. This is a form of flexibility that Harrods has been able to apply since their wage rates have always been equal to the market rates.

Task 2.2  Types of Flexibility

The development of labor flexibility in an organization is a process that uses various approaches with almost the same results. The first type of labor flexibility is through the facilitation of a competitive workers’ environment (Lastra, Martin & Sanchez, 2014). This is what Harrods has been able to achieve through hiring and recruitment of workers with high skill level, increasing staff motivation and empowerment f the employees and promotion of the alignment of employee’s objectives with the organizational goals through the living the brand program.

Flexibility in an organization can also be defined as the adaptability of the workers of the organization to deal with circumstance and unusual events which in most cases require creativity and initiative (Lastra, Martin & Sanchez, 2014). This for instance can be in a case of ethical controversies regarding the organization which regard to the quality of its products. This is a case that the employees will have to manage diligently so as to avoid the loss of confidence of the clientele. This calls for innovative ways of answering the questions regarding the matter and reassuring the customers that the quality is compromised. Harrods has taken a step forward in addressing this issue through the empowerment of the workers to make more decisions.

Employee flexibility can also be termed as the ability to increase the variety of skills of workers (Lastra, Martin & Sanchez, 2014). This is achieved through improved communications between the various levels of management which results in collaboration. This can also be improved through a democratic type of leadership where employees are involved in decision making as well as through mentoring and coaching.

 

Task 2.3: Flexible Working Practices

Creation of entirely flexible working practices involves efforts of both the employer and the employee. The employer has the duty of setting up structures and systems to facilitate a flexible working environment while the employees’ duty is making sure that they achieve the organization  goals while still enjoying the flexibility. In Harrods the creation of a people oriented culture was the most crucial part of the employer’s efforts towards a creation of a flexible environment. The Qatar Foundation made the workers feel they are part of Harrods and the company values them an aspect that gave the workers comfort. The comfort therefore leads to bolder employees who have confidence to make crucial decisions on their own which really enhances the organization’s profile.

 

The organizational restructuring was another factor that the employer used to enhance flexibility within the organization. The reduction of administrative layers made the lower level managers more powerful in terms of decision making and the top level managers more approachable. The employees’ involvement in the creation of flexible practices has also been evident in the enthusiasm in giving opinions and views on certain issues which translates to them being involved in decision making. The fact that the organization has had a consistent trend in improved profits since the employees were given more powers shows that their decisions have only yielded to better results.

Task 2.4 Impact of Labor Market Changes

It is always impossible for an institution to fail to conform to changes in market trends unless the organization is a monopoly or wants to go out of business. Therefore it is safe to say some of the changes in Harrods have been influenced by the market. The biggest changes that Harrods have undergone are in relation to strategic management of the employees. This is in line with the current market trend of flexibility in the labor market. The economists in UK have actually rated the market as being among the most flexible if not the most flexible labor market. This has however been facilitated by the flexibility of the employers a case that is evidenced by Harrods efforts to cultivate a people oriented culture which means they are focused on creating a flexible environment.

Another trend has been the shift of investment in industries and more investment in the service industry. It is therefore no surprise that the Qatar foundation opted to invest in Harrods and taking note of the competition that was bound to be in the market, they invested on a human resource management strategic plan. Another trend that has engulfed the UK labor market has been insecurity in the labor market. A factor that has led to Harrods being proactive in assuring their workers of more security by giving them more power to make decision and emphasizing their importance to the organization by involving them in the decision making process. It is also important to note that the service sector has relatively become more important in the labor market.

Task 3.1: Discrimination

Harrods global reputation and prestige is instilled through its brand values. Its values represent what it stands for. One of Harrods core values is ‘British’. With this value being intrinsically cultivated in the employees, it is practiced on a daily basis in the employee’s relationships: either with fellow employees or between employees and the customers.

In such an environment, the chances of developing race/color discriminations are high. This would be attributed to employees embracing the notion that everything should be handled the British way. In the long run, Harrods would fail to satisfy customers who are not British and/or who are British but are not impressed by the British way of handling things. Harrods makes a presumption that anything British is the best and it should be an accepted cliché.While employment should be for anyone who has the qualifications, racial discrimination would mean employing people only from a certain race. Harrods seems to be encouraging this by the insinuation that they want everything done the British way; this means that a British would do it better than an African or an American for example.

Race discrimination involves treating people unfavorably because they belong to a certain race o have personal characteristics associated with race such as hair texture, skin color or certain facial features.

With the many products that Harrods specializes in, none is specially designed for the low class people. This means that Harrods targets the high class customers who can afford their products. In fact one of Harrods core values is ‘luxury’. This can easily lead to a social class demarcation whereby the low in the society cannot afford the luxurious products offered in the market by Harrods. By virtue of the fact that Harrods is owned by people of the Muslim faith raises the chances of religious discrimination. Cases can arise especially if the day of worship is determined by the management. Again there is the likelihood of showing favor to employees/customers who have similar religious inclination as the top officials

Task 3.2 Practical Implications of Equal Opportunities Legislation

Harrods has ensured equal opportunities for all the employees. This can been attributed to dedicated managerial team which has employed tactical strategies to ensure employee involvement in the process of making decision. The application of these equal opportunities has largely contributed to the reduction of the voter turnover by half. The employees feel proud of working with Harrods now as opposed to how they felt before the application of this legislation. With a low employee turnover Harrods has saved the resources which could have otherwise been directed to cater for the cost of recruitment, the loss of expertise and the increased need for training new employees.

People will typically be more enthusiastic where they feel a sense of belonging and see themselves as part of a community than they will in a workplace in which each person is left to his own devices (Kohn, 2002). The practice of equal opportunities legislation in Harrods has resulted in the development of a people-focused culture in order to better engage with its employees. Harrods has achieved this through sharing, values, attitudes, beliefs and norms and therefore gives opportunities for managers and employees to be engaged in sharing their views and ideas. With a strong well established culture Harrods has publicly defined how things should done in any organization that values success.

Career growth has been strongly emphasized by the continued engagement of the employees with their mentors and coaches. Employees are encouraged to climb up the ladder and develop their careers while still in Harrods thanks to equal opportunities legislation. This has helped to boost trust among the employees. Talent spotting also is a program which encourages equal opportunities in Harrods. This makes Harrods to always have the most talented individuals working for them eventually these results in improved output. Harrods has encouraged the use of intranet among the employees. An intranet can convey and renew organizational culture when employees interact and experience organizational values in action. (Bennett, 2014)

Task 3.3Comparison of Approaches

Harrods has adopted several approaches to manage equal opportunity and to manage diversity. These approaches have succeeded in accomplishing the purpose for which they were adopted. Changing organization structure was one major approach used to manage equal opportunities. By changing the organizational structure in Harrods, unnecessary managerial and other leadership posts were eliminated. This provided a clear outline of the leadership structure of the Harrods thereby giving the employees a specific hierarchy of power. However, to manage diversity, this leadership was made democratic such that every employee can make an opinion. The leadership encouraged the employees to give their views.

Talent sporting is used to manage diversity whereby people with unique talents are absorbed by the Harrods. This greatly helps them to utilize the skills in the talented people and thereby improves productivity. With an informed and engaged workforce, Harrods provides all the employees with equal opportunities. Harrods also encourages work rotation which encourages the employees to gain experience of what happens in various departments. With this experience, the employees have equal opportunities to work at any department. Harrods encourages the employees to live the brand values hence encouraging diversity. The brand values encompass a variety of the Harrods beliefs and a firm stand.

 

Task 4.1 Methods of Performance Management

Performance management forms a crucial part of employee motivation and reduction of the turnover. Management of the employees’ performance is always tricky since it cannot be measured on results alone. It involves various approaches which can be used collaboratively or individually. The approaches can be either be qualitative or quantitative. The qualitative approach is used to measure traits or behaviors while the quantitative approach is used to measure results.

Trait measuring is the most used technique of performance management as it easy to apply for any organization. The method involves measuring the extent to which an employee displays a specific characteristic such as leadership, attention to detail or cooperation with fellow workers (Pope, 2004). The traits to be assessed can either be common for the entire institution or be specific to departments. The methods used to measure traits are rating scales and essays. The second approach is behavior measurement which is a system that describes behavior as increments on a scale or band. Out of this the supervisor can identify a mirror description of the employee’s performance. The last approach which is the measuring of results involves the measuring of the results of work done. The results are then compared to a set standard that can either be a set goal or objective which the specific individual is supposed to achieve. This approach is usually used in highly competitive result oriented industries or in organization where payment is by piece-meal rate.

Harrods performance measurement technique is qualitative in nature and focuses on the well being of the worker so as to achieve its goals and objectives. The organization has overly focused on improving the employees’ motivation which is in line with the trait approach of performance management. The efforts have yielded amazing results for the organization with 91% of the employees stating their happiness to working at Harrods a statistic that is very outstanding. Moreover, the organization has managed to half the employee turnover in the last 5 years another factor that shows how successful the trait approach to staff management has been.

 

Task 4.2 Welfare Management

Employee welfare is a term that is used to mean various services, benefits and facilities that are offered to employees by the employers. The benefits must not necessarily be monetary in nature and may include items such as housing, allowances, medical insurance and food among other items. Employee welfare may also include monitoring of working conditions and improvement of industrial harmony through creation of a healthy and conducive working environment for the employees.

Harrods has done more than enough to ensure that its workers enjoy the benefits of working at the renowned celebrity luxurious store. The organization offers season tickets loans to its employees so as to ease the stress and cost of getting to central London each morning. The organization also eases the cost of quality dressing of the employees by giving a 50% discount on all the luxurious business wear for the employees.  The holiday package is also enhanced through provision of holidays of the employees and a wedding and birthday day off. The organization also recognizes the importance of giving back to the community and gives a one paid charity day off for each of the employees.

 

Task 4.3 Implications of Health and Safety Legislation

It is the responsibility of the employer to provide a safe and healthy workplace for their employees. The employees are however required to have a personal medical and insurance cover which may be offered by the employer. Addressing safety and health issues does not only safe the employer’s money but it also adds value to the business. The benefits of taking measures are lower workers compensation insurance costs, smaller expenditures for return to work programs, fewer faulty products, lower costs for job accommodations for injured workers and less money spent for overtime benefits.

Harrods recognizes the importance of disaster preparedness and the safety of the workers. In this spirit, the organization the organization has a fire, health and safety department which are always undergo checks and inspections. The members of the various departments also undergo various training courses for employees for safety related subjects. The organization also recognizes that fire, health and safety stretches beyond the stores and has therefore partnered with professionals such as Royal Borough of Kensington and London Fire Brigade.

 

            Task 4.4 Topical Issue

One of the biggest issues in human resource management in the recent past has been the less loyal employees writes Goldsmith (2008). Companies are facing a high cost of recruiting, hiring and training of staff. Competition for the talents has become so high while the working class is retiring at so early. Moreover the employees are demanding that the companies provide a balance between their work and the rest of their lives posing a major challenge for the companies which still want to make profits (Goldsmith, 2008).

The technological advancements and more specifically internet have not made HR management any easier. The HR department has to keep tabs with emerging trends and technologies so as to be in a position to make the best decisions for their employees (Brandenberg, 2014). The retention of employees especially the high performers has also become an issue. The generation that had their entire career in one or two companies is long gone. Employers therefore have to come up with ways such as implementation of career pathways and pans, extensive cross-training classes as well as team building so as to promote the chances of retaining their best. Harrods also have not lagged behind in the implementation of such practices. The mentorship and coaching program is not only focused on staff development but also staff retention. The organization as provides lucrative benefits that are quite tempting especially for the young generation.

 

 CONCLUSION

Harrods being a worldwide renowned luxury brand attracts a lot of attention from both customers and workers which some organizations take advantage of to exploit the human resource. However this is not the case with Harrods, the company has actually maintained its level of class and quality in handing the Human resource. Since the takeover by the Qataris the organization has exemplified its approach to Human Resource Management. The Qataris have brought their generosity to the business and have recognized that the success of the company is based on the family which in this case is the employees. Through various programs and strategies the organization has not only been able to achieve positive financial benefits but has also achieved an amazing 91% employee satisfaction rating.

 

References

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