Final Project Part 2

Page | 1

1. Human Resource Management (HRM)

The policies and practices involved in carrying out the “people” or human resource

aspects of a management position, including recruiting, training, appraising, and

compensating employees, and of attending to their labor relations, health & safety, and

fairness concern.

Human Resource Management is the process of acquiring, training, appraising

and compensating employees, and attending to their labor relations, health and safety,

and fairness concerns.

According to Decenzo and Robbins:-

"Human resource management is a process consisting of four functions-acquisition,

development, motivation and maintenance of human resources."

According to Gary Dessler:-

"Human resource management refers to the policies and practices one needs to carry

out the people or human resource aspects of management position including

recruiting, screening, training, rewarding and appraising."

Human resource management is a function in organizations designed to maximize

employee performance in service of their employer’s strategic objectives.HR is

primarily concerned with how people are managed within organizations, focusing on

policies and systems. HR departments and units in organizations are typically

responsible for a number of activities, including employee recruitment, training and

development, performance appraisal, and rewarding. HR is also concerned with

industrial relations, that is, the balancing of organizational practices with regulations

arising from collective bargaining and governmental laws.

Page | 2

2. HR Practices of

Page | 3

2.1 HR Management in the 21st Century: Challenges for the Future

Technology

Technology means the ways and methods of living and work. These methods and ways

have been changed by the modern technology. The information technology has

changed everything. It touches such information and ideas which are essential for the

economy. Economy has large amount of capital that resides in people. There are some

other assets which are physically owned by the people but Human Resource as an

essential asset has no true ownership. The only way to develop and retain such human

resources is create such an environment which compete them to stay in the

organization and it is a main challenge for HRM.

Marks & Spencer has begun the UK's largest in-store trial of radio frequency

identification (RFID) technology. The move follows last year's successful

implementation of around 3.5 million RFID tags on delivery trays in M&S's food

supply chain. If successful, it could act as a watershed for RFID, which so far has only

been tested on a small scale in-store in the UK by retailers such as Tesco and

Woolworths. Also use of HR software makes them work efficiently.

E commerce

Electronic commerce means to perform the trading activities through internet.

Internet is the foundation for a new business order. It has changed customer’s

expectations about convenience, speed, price and services. The people who make on-

line business possible are the knowledgeable workers. Now such on-line business has

become a challenge for HRM and the HR Managers makes several strategies to take

procedure over control on-line business. Such HR Managers try hire & develop human

resources who have the ability to attract, motivate, retain, and to serve as maximum

customers as possible.

M&S is investing 1 billion pounds on logistics,

IT and systems. It launched a new web

platform in February and is ramping up a

new distribution centre in central England to

fulfil all online orders. It hopes that will help

reverse nearly a decade of market share

Page | 4

decline at home and pay dividends abroad as it targets a 25 percent increase in

international sales in the next three years and a jump of 40 percent in overseas profits.

After its retreat in 2001, M&S started a tentative return to the international stage in

2011 when it opened a store on the Champs Elysee in Paris and launched a French-

language website. The move is part of Dutch Chief Executive Marc Bolland's strategy

to turn the British group into an international "multi-channel" retailer, reaching

customers through stores, the web and mobile devices.

The attempt to meld stores and online presence is best illustrated in the Netherlands,

where M&S launched a Dutch website and "e-boutique" store in Amsterdam last year

that allows shoppers to browse the full range of clothes on life-size digital screens and

then order online.

There was a 13 percent rise in overseas customers searching for UK apparel retailers

online in the first quarter of 2014, according to a British Retail Consortium and Google

study, with growth strongest in China, Russia, France and Germany. Nine local M&S

websites are already live, with plans to launch in Russia and Finland this year. M&S

also hopes to add 250 stores abroad by 2017 to the current 455, including new lingerie

and beauty boutiques in Saudi Arabia and India.

Workforce Diversity

Another HRM challenge is the workforce diversification. Such workforce

diversification means to effectively manage the workforce that come from different

backgrounds with respect to regions, cultures, race and gender.

In this modern business world, every business organization conducts the business

activities in different countries. Now such multinational organizations adopt several

strategies to compete in the foreign markets through people. In this regard to manage

such diverse human resources effectively, M&S adopt and make the policies and

practices according to the culture and environment.

Page | 5

M&S promote an environment free from

discrimination, harassment and

victimisation and work hard to ensure

everyone is offered equality of opportunity

to achieve their full potential. All the

decisions we make relating to employment

practices are objective, free from bias and

based solely upon work criteria and

individual merit. Not only that M&S responsive to the needs of our employees and

customers but also take pride in the role play in the community at large. Because of

this M&S value diversity very highly and it's important to recognise and make full use

of the wealth of talent have within the organisation. Also place a lot of emphasis on

developing initiatives and procedures that ensure equality of opportunity for every

member of the Marks & Spencer team.

2.2 The Impact of Information Technology on HR Management:

Opportunities and Challenges

M&S is a big international business. So that means they have equally big

responsibilities. With this in mind, they devised Plan A initiative to help them become

the world’s most sustainable major retailer by 2015. It’s a fundamental part of M&S,

and whether it is the environment or society, M&S want to be involved and want to

make a difference to people. This means working with customers and suppliers to

review and improve the way of work.

M&S ultimate goals are to combat climate change, reduce waste, use sustainable raw

materials, trade ethically and help our customers to lead healthier lifestyles. We’ve

identified 180 key commitments, created the unique Shopping experience and

countless other initiatives besides. All of which fits with our ethos of continuous

improvement and making things better.

Page | 6

2.3Recruitment & Selection Process

M&S has just introduced TALENT PHILOSOPHY which is ensuring the right person

is placed in the right job. ALL perspective candidates undertake an online

questionnaire or telephone interview as the first stage of the recruitment process.

Candidates need to pass this to ensure that they have the right personality and mindset

to fit in with the ethos of the company. The questionnaire has been devised by an

external company and has led to a lower staff turnover and higher rate of productivity.

This has been measured by performance at appraisal review.

INTERNAL vacancies are advertised on the:

Staff notice board

company intranet [although a lot of shop floor staff still do

not use this]

Monthly newsletter

EXTERNAL vacancies are advertised via:

Newspapers – for local jobs it will be in the local newspaper such as the Bristol

Evening Post on Wednesday night. For higher level jobs it will appear in

national newspapers such as The Times or The Guardian.

Issues

People

Products

Community

Page | 7

Figure: Customer Insight Manager

Company website – this is now extensively used and there is a ‘Careers’

hyperlink on the Home Page.

Careers stall in store – this is mainly used for the Christmas temporary staffs

that are required each year to accommodate the higher level of sales and longer

working hours. Staffs are recruited on a temporary basis.

Shopping centre website – a lot of stores are now located in malls and shopping

centres which have their own websites with vacancy lists.

Graduate vacancies – can be accessed via the website during ascertain window

of opportunity each year. Also the company participates in the annual milk

round of graduate recruitment fairs.

New store – the company uses the job centre, places a large advertisement in

the paper and places a billboard outside the intended site giving details how

and when to apply.

For graduate recruitment courses, the process is a little different:

The first stage is the TALENT PHILOSOPHY questionnaire and if successful there is

an invitation to the Training Academy which is in Swindon. Candidates are asked to

arrive the evening before for dinner with M&S staff ad other candidates.

On the following day the candidates [normally between 6-8] will undertake four

activities on a carousel basis and they are:

Page | 8

- Presentation - goldfish bowl discussion

- Role play - interview [one hour long]

Candidates are informed whether or not they are successful within three working days

and the offer is made subject to two references and a medical examination. The formal

offer is then made.

2.4 Performance & Reward Systems

Performance Management

Here is Marks and Spencer's definition of performance management: Performance

management is a joint process that involves both the supervisor and the employee,

who identify common goals, which are linked to the goals of the organization. This

process results with the establishment of written performance exceptions later used as

measures for feedback and performance evaluation.’

An appraisal system is carried out every 12 months at Marks and Spencer's. An

appraisal system is when discussions are made with members of staff about what is

going well, what can be improved and how they would which to develop and other

suggestions from workers. These meetings are done by manager of M&S for the

employees and are confidential.

A review plan is used at M&S to measure

productivity. This form shows if the workers

have met the targets set at the meeting, for

example is a person at cashier as a set target

to scan a certain number of products every

hour the review plan will show if it was complete. This is called scan rate operate

targets. Performance Management at Marks and Spencer does refer to this data to

make sure targets is met, and that all the workers are doing well. If targets are not met

M&S can set out courses of action to fix the problem for example giving the workers

Page | 9

more training. This is the link between performance management and training and

development.

Rewards and benefits

At M&S it's vital that people are well rewarded. So when employee say yes to M&S,

they give access to a highly competitive total reward package that’s proven to attract,

motivate and retain the best people. By constantly reviewing the details of the package

to make sure it’s got everything people want in a benefits scheme, but the things

employee will be able to enjoy currently include:

Pay – Regularly check salaries against other companies to make sure competitive and

keeping up with changes in the market. Also review basic pay every year, plus offer

extra performance rewards to recognize individual achievements.

Employee discount – Employee will get 20% discount on all in-store and online

purchases. Some exclusion does apply but there’s no limit on the amount of goods they

can buy with discount. Apart from that M&S give a partner or family member who

permanently lives with employee the discount too!

Holidays – Entitled to a minimum of 28 days’ statutory holiday per year. For part-

time worker this will be pro-rated.

Page | 10

Figure: Rewards Benefits

Bonus – M&S have a discretionary bonus schemes on offer that reward employees for

helping the organization to reach its goals.

Pension – M&S aware of how important it is to save for our retirement. This is why

they offer an excellent Defined Contribution pension plan, where if employee

contributes 3% of pay M&S will contribute 6%.

Life Assurance – From day one, employee will receive life assurance cover to the value

of two times of annual pensionable salary.

Shares save – This is a way to save and share in the future success of M&S. By joining

employees can save any amount between £5 and £250 each month for 3 years. At the

end of 3 years you can get your money back or buy shares at an exclusive 20%

discounted price, which is set at the start of the scheme.

Salary Sacrifice – By Joining Salary Sacrifice schemes, covering childcare vouchers,

holiday buying, car leasing and cycle to work and employees could save money on tax

and National Insurance.

Discounts – It’s not just in-store where employees can benefit from generous

discounts. When employees join, they can take advantage of over 1,500 special

discounts covering holidays, leisure attractions and many more products and services.

Heath & Well-being – At M&S wellbeing is a big priority, and they want employees to

be the best they can be. That’s why M&S offer discounted healthcare products and a

wellbeing website with top tips and health guides, to keep employees fighting fit.

Subsidized beauty

treatment

Bonus paid every

quarter

Thank – you

award

Manager of the

month

Advisor of the

month

Share scheme Discount shop Team briefings

Page | 11

2.5 Career Development and Training & Development Program

Training

M&S has formed a ‘Retail Academy’ which is responsible for delivering training and

development programs for staff at all levels.

Induction program:

This is now three days and is undertaken by EVERY employee before they start work

at the company. It means that staffs feel more confident before they start work and

each course is run for between 5 to 15 people. The three days encompasses a range of

activities to encourage teambuilding and an awareness of the company’s ethos. There

are the obligatory sessions on the organization structure and health and safety, and

staffs are also measured for their uniforms to ensure a good fit. There are huge benefits

both to the company and to the employees of carrying out this type of induction

training. The newly recruited staffs are aware of company policies and what the

company’s aims are. They know what the company is aiming for.

Whole staff training:

There is training for all staff when new initiatives are

launched but it is hard to train all staff at the same time because of the stores being

open seven days a week. At the end of 2005, M&S employed Mary Grober [retail

motivationist] to run one-day long training sessions for 56,000 staff, from directors to

storeroom assistants. The company paid her £1 million plus fee as part of a £10 million

training initiative. The course was designed as part of a company ‘culture’ change and

staffs was given tips and advice on how to treat customers. They were informed that

successful sales people should never use the words ‘can’t’ or ‘unfortunately’ in a

conversation and were given a list of hot tips and reminders how to provide excellent

customer service.

Specific training for specific needs:

The company has started using outside contractors to design training programs for

specific areas of the business and these courses are either run at head office or at Retail

Academy. For instance, a series of workshops are being run for staffs who work in the

Page | 12

‘money’ section of the business. It is aimed at non-managerial staff to give them more

confidence in communicating with customers and developing more subtle ways to get

the potential customer to sign up for the product.

Coaches:

Coaches have started being appointed and these are

customer advisors who are given additional pay to train up

to three other customer advisors. For the additional

money they are trained how to mentor and coach new

customer assistants and also to update them on new

procedures. This frees up time for the Section Managers so that they can oversee

performance reviews and ensure they are carried out really well. Also, they have more

time to actually manage the function in which they work and this should increase

motivation. It store or a whole department of a large one after the one year training

program is completed. The HR program is 18 months and offers the chance to gain

also provides an opportunity for progression which did not exist beforehand.

Training on demand for line managers:

Managers are now able to access innovative and engaging e-learning to support them

with HR and people issues. 96% of managers who have used this approach

recommend it to others and consider it to be a cost-effective means of providing

engaging learning on demand.

Lead to Succeed:

The Group HR Director has launched a flagship development programs which is

known as Lead to Succeed. It targets the development of 300 most senior managers

within the company and is designed to train the next generation of leaders. The

training involves coaching and business simulation which is designed around some of

the challenges M&S experiences as an organization.

Page | 13

Management training schemes:

These are available on an annual basis to graduates and internal placements within

the company. There are on average 150 vacancies each year across sales, HR and ICT.

The company accepts any graduate discipline and candidates are offered top-notch

training and development through both formal and structured methods. All graduate

trainees receive a varied program that includes a dedicated personal development plan

following a needs analysis and regular reviews.

Page | 14

2.6 Financial Budget of HR

Executive directors Remuneration salaries and benefit at M&S, 2012/13 and 2013/2014

Table 1 represent Executive directors Remuneration of M&S at 2012/2013 and 2013/14.where

salary and benefit increased by 5.55% in 2013/14 but gross salary decreased by 22%.Economic

condition of M&S force to reduce annual bonus of 3,088,000 pound in the year 2014.to

minimize the effect management introduced PSP Visited allowance. Pension amount also

increased in the year of 2013/14.

Graph 1: Executive directors Remuneration

0 1000 2000 3000 4000 5000 6000 7000 8000 9000

Salary

Benefit

Total bonus

Total PSP visited

Pension Benefit

Total=

Executive directors Remuneration

2012/2013 (In Thousands) 2013/2014 (In Thousands)

Executive directors Remuneration

2013/2014 (In Thousands)

2012/2013 (In Thousands)

Salary 3801 3612

Benefit 250 213

Total bonus 3088

Total PSP visited 852

Pension Benefit 999 953

Total= 5902 7866

Page | 15

Weir is an interesting appointment for M&S as in recent years John Lewis has been closing the

sales gap with its larger rival. A decade ago, sales at John Lewis Partnership, owner of the

Waitrose chain, were just £5bn; at M&S they were about £8bn. Today the UK turnover of both

chains is in the region of £9bn.

Table 2

Employee Salary of Different position at M&S, 2012/13 and 2013/2014

Employee Salary of Different position

Positions 2012(Annual Salary)

2013(Annual Salary)

Graduate Commercial Manager 24000 25000

Commercial manager, 24000 25000

BPP commercial manage 18000 19000

Bpp commercial manager, Commercial team 18000 19000

HR BPP, Placement Student 18000 19000

Selling Graduate Management Trainee 24000 25000

Total 126000 132000

Table 2 represent yearly salary of different position at M&S. Yearly increment is 4% at M&S

for all mid and lower management. Currently 86,000 employee work at M&S so salary budget

increased by 86,000,000 pound in the year of 2013/2014.in the year 2012/13 average salary

was 21000 and it is increased to 22000 pound in current year.

M&S business outside of the UK and Republic of Ireland accounts for around 6% of turnover.

This is made up of a combination of franchise and part-owned operations. We aims to recruit

a local workforce representative of the community with ideally no more than 20% expatriate

management.

Page | 16

Graph 2: Employee Salary of different positions at M&S

M&S cheered investors this month by reporting its first increase in profits in four years and

lifting its dividend. Despite chalking up a 13th quarter of declining clothing sales, the group

managed to eke out a 2.3% increase in underlying first-half profits to £268m, thanks to higher

margins and lower costs. Currently M&S given 4% better compensation package them market

beta.

2.7 Health & Safety Issues and HR Ethics

Marks & Spencer is committed to ensure the health, safety and well-being of all

employees, customers and others who visit or work on premises.

As an Employer M&S care about the well-being of all staffs.

Committed to maintaining the quality of health & safety at

work place through continual communication and the raising

of awareness.

As an Employee the benefits are a safe, secure pleasant

working environment. It is employee’s duty to take reasonable care for the health &

safety of yourself and others whilst working.

0 40000 80000 120000

Graduate Commercial Manager

Commercial manager,

BPP commercial manage

Bpp commercial manager, Commercial…

HR BPP, Placement Student

Selling Graduate Management Trainee

Total

Employee Salary of different positions at M&S

2013(Annual Salary) 2012(Annual Salary)

Page | 17

Company Policy on Health and Safety and its implementation is directed by:

The Fire Health & Safety Committee - advises on fire,

health & safety policy, monitors its effectiveness and

reviews key performance measures on a quarterly basis.

The committee receives updates through the Fire, Health

& Safety Officer Network Groups which meet quarterly.

Information from each location is exchanged with Fire,

Health & Safety Officers at Business Involvement Group Meetings. (BIG). Minutes are

published on My Store Workspace and should be displayed on the health & safety

notice board.

The Store/Site Manager - is accountable and responsible for ensuring in

conjunction with their Fire, Health & Safety Officer that Company Health &Safety

Policy is implemented. This includes:

• Suitable Fire, Health & Safety induction and legislative update training for all

employees.

• The prevention, reporting, and investigation of accidents.

• The completion of store specific risk assessments and maintenance of known hazard

information.

Occupational Health Services – provide advice and support to line managers on

managing the impact of work on health, and health on work. Further health

information is available through the People Guide.

Business Involvement Groups (BIGs) - represent all employees’ in two way

communication. They should discuss health & safety policy, performance and

implementation as an agenda item at each meeting and update the business through

the FHSO Networks.

Retail Finance and Operations - and its Trading, Safely and Legally Team are

responsible for determining and monitoring risk assessments, work practices and

enforcement measures.

Property Development and Facilities Management - are responsible for the

provision of working areas, equipment and materials that are safe and without risk to

Page | 18

health. It also ensures that so far as is reasonably practicable all contractors who work

on our premises do so in a manner that is without risk to our staff, customers or

visitors.

The Fire, Health & Safety Officer (FHSO) - assists the Store Manager in

promoting and improving the FHS culture in stores, ensuring a consistently safe,

secure and healthy environment for all staff through workplace assessment, training

and monitoring.

In addition, supports your Plan A Champion and Goals.

All employees must be aware of their individual responsibility -for

maintaining the health & safety of themselves and all those affected by their actions at

work. If an employee has any concerns about their health & safety they should speak

to:

• The Store / Site Manager / Line Manager

• The Store / Site Fire, Health & Safety Officer

• Any member of your Business Involvement Group

• The Head Office Fire, Health & Safety Team

Code of Ethics and Behaviors

How does Employee comply with the Code?

All M&S employees are required to adhere to the Code and the policies it refers to.

They have a responsibility to protect the Company’s reputation in everything they do

and say. Ensure that they thoroughly read, understand and act in accordance with the

Code and the various policies embedded in it. Failure to comply with the Code and its

policies and procedures will result in disciplinary procedures being applied that may

result in dismissal from the Company. In instances of fraud, where financial loss has

Page | 19

been incurred, individuals will be prosecuted and the Company will seek to recover

losses.

What are managers expected to do?

Managers (level E and above) have additional

responsibilities under the Code to:

Ensure the Code is understood by those they

manage;

Provide advice and guidance on interpreting the

Code;

Uphold and promote the requirements of the Code;

Individually sign their acceptance of the Code each year.

Page | 20

How to raise a concern or ask a question?

M&S believe it is essential to create an environment in which individuals feel able to

raise any matters of genuine concern internally without fear of disciplinary action

being taken against them, that they will be taken seriously and that the matters will be

investigated appropriately and as far as practicable be kept confidential. M&S believes

that any employee with knowledge of wrongdoing should not remain silent. BY taking

all matters of malpractice, improper action or wrongdoing very seriously and

employees are strongly encouraged to raise incidents or behaviors that are not in

accordance with the Code, or the policies to which it refers, by following the procedure

set out below:

Line Manager

In the first instance, employees should consider

raising concern with line manager. He/she has a

responsibility to listen and respond to any

matter that is of concern. Concerns can be raised

verbally or in writing. They may be able to agree

a way of resolving your concern quickly and

effectively.

Senior Manager

If employees feel that they cannot raise concern with line manager, for whatever

reason, they should contact the senior manager in business unit or store, who will

consider the matter and, if appropriate, manage any investigation.

Bribery and Corruption

M&S operate a zero tolerance approach to the making or receiving of bribes or corrupt

payments, in any form. This type of conduct is absolutely prohibited whether

committed by employees or anyone else acting on the Company’s behalf.

Employees should not get involved in any business transactions that could result in

personal benefit. Should not use their position as an M&S employee to get discounts

from contractors/suppliers unless they are corporate agreed discounts notified and

Page | 21

made available to all employees, or do personal business, unless expressly authorized

by management.

Fraud

Fraud is deemed gross misconduct. Disciplinary procedures will be rigorously applied

to any instances of fraud which will result in dismissal. The Company’s Group Fraud

Policy defines Fraud as the deliberate action by any person, or deliberately allowing an

action to be taken, to create, falsify, destroy, deface, or conceal any account, balance,

record or document, or impersonate, deceive, or misuse their position with the

intention of:

Obtaining money, assets, services, information or any other benefit which

would otherwise be denied;

Distorting personal or business performance;

Causing a loss to the Company or another party (eg supplier, third party

contractor, customer or employee);

Prejudicing the Company’s rights, competitive position or business reputation,

or those of another party (as above).

2.8 Recommendation

Effective leadership program should be

implemented to insure smooth operation.

Use of Scientific change management models to

increase employee productivity.

Utilise technological advantages to the changing

market

New strategies in the payment of pension funds to

avoid internal conflict

Do more market analysis to know competitor offers

towards their employee which could help to reduce turnover.

Page | 22

3. HR Practices on

Page | 23


Parallel with the changes in the global arena, human resource management also

warrants a revisit and implementing changes to adapt with the modern needs of the

21st century. There are an incredible number of pressures on today's organizations. To

name a few: environmental pressures such as increasing globalization, rapid

technological change, and tougher competition; organizational changes such as new

organizational alliances, new structures and hierarchies, new ways of assigning work,

and a very high rate of change; changes in the workforce, including employees'

priorities, capabilities, and demographic characteristics.

The role of human resources has been evolving for some time and is named as

strategically reactive in business strategy implementation through supporting the long

term strategies with the necessary employee qualifications and developing the cultural

and technical capabilities required for the strategies of the organization.

The need for managing the employees strategically in the 21st century also requires

the management and the organization structure to be more flexible. The work system

has started to change with autonomous work groups with high qualified workforces,

outsourcing some of the operational HR functions, downsizing, delivering, employee

participation to the decision systems, high wages for the high qualified human

resources, virtual and network organizations.

Page | 24



Information technology brings enormous opportunities in every aspect of business.

Particularly to HRM, it can contribute by minimizing lot of redundant works and

achieving efficiency through extensive use of technology. Human Resource

Information System shortly known as HRIS is an integral part of any progressive

organization which is in place in Selfridge’s as well.

Technology can also be used to provide HR information and to enable managers and

employees to perform simple HR tasks themselves. On another level, the use of HRIS

to reduce the administrative and transactional burden on the HR function can lead to

a change in the structure of HR and allow the function to play a more strategic role in

the organization. The reasons behind an organization’s introduction of an HRIS may

vary considerably from the need to facilitate efficient processes or cut costs, to improve

communication and customer service, or the desire to create a shift in the role of the

HR function from one that is mainly administrative to one that is more strategic.

As we found, Selfridges & Co. is already using web-based questionnaires for initial

screening of applicants, they are already reaping the benefit of technology. This can be

further enhanced by implementing a process which will direct the short listed

candidates to a face-to-face interview through a completely automated way.

Human resources professionals generally process a considerable amount of paperwork

and also have to keep much of that paperwork on file for a considerable period of time.

The use of electronic imaging has made it possible for companies to store and retrieve

files in an electronic format. Technology also made it possible for Selfridge’s HR

professionals to simply print the forms that are needed for employees. Printing on

demand eliminates the need to dig through an endless number of files in the file

cabinet to find what is needed and at the same time increasing productivity.

Technological advancement is a challenging task of adapting workplace to rapid

technological changes which influence the nature of work and generate obsolescence.

Advanced technology has tended to reduce the number of jobs that require little skill

and to increase the number of jobs that require considerable skill, a shift we refer to as

moving from touch labor to knowledge work. There is new working technology. In this

Page | 25

situation organizations have to change it technology. New technology creates

unemployment and in other hand, there comes scarcity of skilled manpower. Like this,

technological change brings difficulties and challenges in organization.

• Globalization

• Workforce Diversity

• Changes in political and legal environment

• Changes in the Economic Environment

• Mobility of Professional Personnel

• Revolution in Information Technology.

• Technological advances

Information Technology (IT) as a structural factor and instrument transforms

architect of organizations, business processes and communication, and is increasingly

integrated into HRM. While IT has impacts on HR, at the same time managers,

employees, customers and suppliers increase their expectancies for HR functions. The

importance of knowledge and human capital make extra suppression on HR functions

and new competences for HR professionals are expected.

Challenges of Information technology on HR Function

• New skills required

• Downsizing

• Collaborative work

• Telecommuting

• Internet and intranet revolution

• Business environmental change

• Development of technology

• Service improvement

Page | 26

3.3 Recruitment & Selection Process

Preliminary screening is done through online assessment

through Selfridge’s job portal website. Then prospective selected

candidates are called for interview for the applied position.

Selfridge is an equal employment organization. The selection is

done based on the required competencies and criteria required

to perform the applied job. Selfridges put high importance on the applicant’s passion

on work and reasons for choosing Selfridges. Based on the position, they structure the

interview questions to find out the insights about the applicants that are relevant to

the applied job. On request of the applicant, Selfridges also provide feedback on

his/her interview for future development need of the applicant.


Performance appraisal is critical element in the performance

management process. A primary aim of the performance

appraisal dimension of performance managements to assess or

measure the achievement of the individual or the team against

the agreed objectives.

At the Selfridges, the process of performance appraisal is redefined through the new

role of leader. Team leaders were asked to re-apply for their positions through a new

selection process which focused on behaviours as well as skill sets, which resulted in

some losing their position. Improvements were also made to the performance

appraisal process by linking it to succession planning and therefore working more on

career opportunities. This ensured that team leaders took greater ownership of the

process, and that appraisals actually got done properly. These changes coincided with

improved employee perceptions of team leaders’ behaviour and better employee

attitudes towards some HR policies.

Page | 27

Rewards & Benefits

Selfridges upholds a culture where deserving employees gets acknowledged and

rewarded. Following are a few examples of the reward and benefits:

Generous holiday entitlement (which increases the longer you stay with us)

Extremely generous discount throughout the whole store

Contributory pension scheme

Life cover

Long service awards

Performance related incentives


Learning and Development team works with all business areas to ensure that everyone

is given the full opportunity and encouragement for their

talents to flourish.

Selfridges wants to get the most out of each employee’s role

because they want to make the most of every employee’s

abilities. Selfridges provides three months' induction and

continuous on-the-job training through which one can take

advantage of a broad range of programs and workshops, designed to help develop

employees’ particular sales, management or technical skills.

Page | 28

3.6 Financial Analysis of HR

Selfridges has around 3,000 employees, who share the shop floor with about the same number

of staff employed by branded retail concessions. There are four Selfridge’s outlets: one in

Birmingham, two in Manchester, plus the iconic flagship store on London’s Oxford Street.

With a healthy annual turnover of £538m, and trading profit up 14% year-on-year to £49m to

the year ending 31 January 2013, Selfridges remains confident as a business. The majority of

the company’s workforce is its 2,700 sales staff. The retail industry has always suffered high

staff turnover, so HR’s constant challenge is to recruit and retain sales talent.

Table 1

Average salary of Selfridges from 2009-2014

Average salary of Selfridges

Year 2009 2010 2011 2012 2013 2014

Salary 25534 26071 25212 25251 28868 29642

From the above data of table 1 we clearly see average employee salary depends on the

profitability of company. Trading profit increased in 2013 by 14% which refer to increase

salary by 2.6%. There is no fixed yearly increment in Selfridge even though if company is in

loss so does the salary decrease. The graph below show the trend of salary over the year:

Graph 1

Salary trends over the year

0

5000

10000

15000

20000

25000

30000

35000

2009 2010 2011 2012 2013 2014

Salary

Year

Page | 29

From 6 years of data we could see the average salary is between 25000 to 30000 in a year. If

salary decreases by any reason Selfridge try to cover that by providing some non monetary

befits. Currently Selfridge provides 5% more salary and benefits then the market beta.

Table 2

Salary budget of Selfridge’s

2013 Total Remuneration (In Thousands )


Non-Executive Director salary 643 701

Executive Director salary 6494 8781

Mid/Lower Management salary 164547 168959

Total= 171684 178441

Selfridge’s has spend 171684 thousands of pounds in the year of 2013.and in 2014 they planned

budget to spend 178441 thousands of pounds. Which is 6757 thousand of pound more than

previous year. HR has worked hard to define Selfridges’ core values and behaviours, and built

up the employer brand so staff can feel proud of where they work. “Our employee culture is

diverse and friendly there is something for everyone, whether you’re a customer or an

employee,” she says.HR is on top of the recruitment process, and has the stats to prove it. Last

year, labour turnover decreased by 12% and the London store boasts the lowest staff turnover,

not only within the company, but also against a number of competitors on Oxford Street.

Page | 30


Selfridges’ HR, like all other businesses, has a safety policy. This is a

legal obligation that they must follow. The policy states in simple

terms what the goals of Selfridges are in relation to health and safety

of employees. It also consists of actions that are to be carried out by

the key staff members. The policy includes planning for coverage of training and

instruction, company rules and preparations for unpredictable scenario. This will be

signed by the senior manager; it is revised regularly to be kept up to date. Selfridges’

HR has a unique code of practice. It states what employees should do in an event of an

emergency, such as a fire, earthquake etc. It elaborates how to contact a first-aider,

how to find a medical room, how to call a doctor and so on. Selfridges’s HR has a health

and safety office in all their stores; they are responsible for all health and safety policies

and training. All accidents, including the nearly missed ones, are recorded in an

accident book so they can see where improvements need to be made.

3.8 Recommendation

Finding the right talent and clearly defining the

manager’s role is key to success in a retail business.

Managers face pressure from a range of responsibilities

such as increasing sales, controlling inventory, hiring,

training and managing employees, minimizing payroll, engaging customers and

monitoring shrinkage, so working with the manager to establish priorities is critical.

In addition to increasing productivity, the process of setting priorities will give insight

into a manager’s strengths and indicate whether the manager has what it takes to be

effective.

For advanced training and development Selfridges should use flexible training

program. A flexible training program can be designed by undertaking these steps:

Understand basic skills and abilities of employees. Understand job specifications'.

Select specific training or development program. Make changes in selected training

program according to employee’s needs.

Page | 31

4. HR Practices of

Page | 32


The 21st century Human Resource Management requires increased centrality of people

to organizational success which is the most powerful force affecting the evolution of

HRM. The emergence of resource based views of organizations has placed increasing

importance on intellectual and social capital.

The new HRM perspective for the 21st century requires HRM to be strategic partners

of the organization that coordinates all functions and supporting the strategies by

attracting and retaining the essential qualified employees.

The growth of ethnic groups will continue to add diversity to the workforce in the 21st

century. The public recognizes an organization with diversity as harmonious, stable

and progressive. Therefore, human resources professionals will be trained in

understanding, supporting and achieving diversity initiatives to provide employees

with skills to work in diverse teams. Human resources professionals will work with

company leaders to ensure that the organization includes all cultures to maintain a

competitive advantage.



The use of information technology in human resource management can be seen visibly

in the mode and operation of human resource management. Today, the training and

selection method is done via the use of information technology and this is fast making

the overall process more effective than ever as a whole.

Information technology brings enormous opportunities in every aspect of business.

Particularly to HRM, it can contribute by minimizing lot of redundant works and

achieving efficiency through extensive use of technology. Human Resource

Information System shortly known as HRIS is an integral part of any progressive

organization which is in place in Primark’s as well.

Page | 33

In time and labor management, the use of information technology can’t be ignored

because it is advantageous. IT enables the gathering and application of employee time

and work information. It enables the tracking of employee in a scientific way that

allows for easy analysis. It also enable human resource managers or senior personnel

to know which employee is actually performing and the ones that are not performing

and show improvement.

The use of the technology oriented processes in an organization is affected by various

factors, which are highlighted as follows:

• Employee orientation-The employees of the organization needs to be

convinced by the fact the use of technology in the processes will help in

generating better and improved results compared to the existing processes.

• Work Culture-Work culture also affects the acceptance of the implementation

of new system in an organization. The dimensions of better results can be timely

and accurate information, ease of use and completion of work in lesser time.

• Security Concerns-A system or technique designed for one country may not be

effective in other country. Implementation issues across boundaries come with

the challenges of data privacy and data movement across boundaries.

• Cost factor- Cost is an important factor to be taken into consideration before

implementation of the e- systems. The companies must priorities and take the

decisions of acceptance and implementation of E-Systems on the basis of vital,

essential and desirable operations.

• Training and learning- The process of training and adaptation to the new

system be a cumbersome and time consuming process. It may be challenging

for the users if they do not find it user friendly.

• Technical limitation- An organization cannot depend on technological websites

or software completely to handle every issues related to HR. A website cannot

ever replace a skilled professional. Employees may not be able to make senses

of choice from the website and may need to discuss the issues personally with

HR experts or professionals, in case of doubts, faced by them.

Page | 34


Primark Stores has a multi-dimensional recruitment and

selection process a few years ago and job vacancies were

advertised through multiple ways, including in store

postings, Job Centre advertisement and advertisement of

vacancies over the internet.

Although we know that Primark Stores has not been focused more on internet related

issues in the past and there was no other way available for the people a part from going

to job centers and Primark Stores itself asking about the vacancies.

With the current passage of success, Primark Stores has made the recruitment process

more transparent and easier to access. Primark Stores have now got an Online-

Recruitment System and vacancies are displayed onto the website immediately.

After initial registration, candidates are asked to answer a set of question related to

customer services and other issues related to the retail industry. On the successful

completion of these questions, candidates are issued an application reference number

for further processing of their application, if they were successful during this phase of

application.

Recruitment Process for Retail Operatives:

The current recruitment process of Primark Stores consists of the following key stages:

• Candidate needs to fill an online application form to get register with the online

recruitment system.

• At next stage, candidate needs to answer a set of online questions regarding the

customer services and retail business environment.

• On Successful completion of this stage, candidates are invited for a personal

interview

A job is offered after a successful completion of assessment center and going through

a rigorous activity of group tasks and presentation.

Page | 35

Recruitment for Management Positions:

Same methodology of online applications applies for management positions as well.

Job vacancies are advertised through Primark’s Recruitment website.

• Candidates are presented with a set of online questions regarding the

management of business /real life issues.

• On successful completion of questionnaires, candidates is issued an application

reference number and is invited for a Panel Interview.

This interview session can be a panel interview or one – to – one interview and

candidate is tested on the basis of his education, expertise and communication skills.

Candidate’s ability to handle different difficult situations is also analyzed.

On successful completion of interview session, candidate is invited to attend an

assessment center and this is the stage where candidate has to go through group tasks,

presentations and this gives HR Team a complete idea about the suitability of the

candidate for a particular job role.


In Primark high level management and managers are

responsible for monitoring of the performance of teams and

employees. The main and basic idea includes fro monitoring

to ensure that:

• All the assigned responsibilities are being full filled as per required goals,

• To identify the opportunities and chance for improvement in the work,

• To make out the progress against the goals,

• Evaluate the progress against the internal and external standards.

Primark provides salaries that are competitive and subject to annual review. Other

benefits include:

Page | 36

• Structured training and development programs

• Promotional opportunities for everyone

• Contributory pension scheme

• Childcare Voucher scheme

• Competitive annual leave entitlement

• Health insurance (dependent on the role/level/function)

• Bonus scheme (dependent on the role/level/function)

• Flexi-time scheme for certain head office functions

• Variety of shift patterns available to suit individual’s lifestyle


Primark have a world class Management Development

Program to help build its employee’s career at all levels.

Whether he/she is in stores or head office, Primark aims

to build its employees’ talents and skills during their

amazing career journey. Primark encourage ideas, team

spirit and passion across all their functions.

As a new employee in any role with Primark, he/she will be given a structured

induction program to welcome into the new role and team. Primark offers various

programs to either assist to become a member of management, or to develop further

in one’s role. The development programs start at all levels from entry level through to

senior leadership programs.

Primark advertise promotional opportunities within the business to its existing

employees. Employees are encouraged to play an active part in self-development

where they will be given ownership of their career with the support and guidance of

Primark’s experienced managers. Primark provide its employees the tools and

resources needed for their dedication and enthusiasm.

Page | 37

4.6 Financial Budget in HR

Figure: Directors’ remuneration


Health & Safety Issues

The issue of worker safety has always been a priority for Primark

and forms an important part of their factory inspections. In

some countries where awareness of workplace safety

(particularly fire safety) is limited, Primark’s local teams provide

training and awareness programs for factory managers and

workers.

In Bangladesh, Primark also work with industry experts, other retailers, and

international organizations to ensure the factories are structurally safe and meet

international safety standards. Primark is a member of the Bangladesh Accord on

Building & Fire Safety, and they were the first UK retailer to sign the Accord.

Primark’s fire safety program for suppliers in Bangladesh has been in place since 2010.

It includes dedicated fire safety inspections, and training for suppliers and workers. In

0 500 1000 1500 2000 2500

Executive Directors

Non-executive directors

Remuneration Chart of Primark

2013 2012

Page | 38

2012, Primark launched a new initiative to create a set of practical fire safety guides.

Health and safety experts, worker rights organizations, Primark’s suppliers, and a

former senior member of the Bangladesh Fire Service, are working with them to create

the guides.

HR Ethics

Primark aim to ensure compliance with the United Nations

Universal Declaration of Human Rights in the management of

all our businesses. Employees throughout the group are

recruited, trained and rewarded according to performance

alone. Whistle blowing policy and procedures are in place. All businesses are signed

up to the group’s Business Principles and Anti-Bribery and Corruption Policy. A

program of training and compliance has been implemented for all employees.

Appointment of anti-bribery and corruption specialists is present. Businesses work co-

operatively to ensure visibility of reputational risk within supply chains and draw upon

best practice management expertise across Primark.

4.8 Recommendation

To deliver more value, the human resources function needs to spend

more time accelerating operational improvement and less time on

its traditional administrative and compliance activities. Focus on

Whole Systems and Integrated Solutions: It is clear that HRM has

become increasingly systematic during their evolutions. With the strategic proactive

role of HRM, the challenge for Primark is to continue to develop innovative systems

by focusing on the integrated functions and systems of organization. Primark should

also play a strategic role by contributing to the strategy formulation process. The HR

practices should be designed consistent with the strategies of Primark taking into

consideration the essential HR needs.

Page | 39

5. HR Practices of

Page | 40


The importance of people in organization is immense because it is the people that plan,

design, implement, sustain and end an organization’s life. From this rather simplistic

but vital point, we can assume that one of the most important functions in an

organization is the management of the human resource functions.

HRM can be a useful function in building this bond by sustaining inward investment

in organization. It is absolutely vital that organizations should see their employees as

valuable assets not just a file or a number in a spreadsheet. Employees are now

expecting their employers to invest on their training and development in return the

organization expects employees to be flexible, creative and productive.

Here in Sainsbury’s they not only have to match the organizational needs, but also the

values of its employees. The responsibility of the employment of psychological contract

is mostly given to the HR functions because HRM a set of policies and procedures that

govern the nature of work and regulate the relationship between the employee and the

organization.



For the big corporate organizations like Sainsbury’s, it is an essential requirement to

manage information systems in an efficient way. Information technology is reforming

the process of management, providing powerful new abilities to assist managers

strategize and plan, organize, lead and control. Information systems is used in

Sainsbury’s at various levels of management and various departments. Information

technology influences various department of Sainsbury.

In Sainsbury PLC there are multiple business units. With a centralized Management

Information system that is not affected by geographical boundaries and similar

restrictions, MIS helps in tracking employee related functions. With an integrated

database of personnel, it keeps a track of salary and benefits structures, supports

planning and recruiting and also simplifies the payroll function of the HR department.

Page | 41

Human Resources (HR) and information technology are the two elements that many

firms are learning to use as strategic weapons to compete. To capitalize on the synergy

between these two assets, human resource information systems (HRIS) is an emerging

area that may lead human resource management into a new era. HRIS ensures that

the company is able to achieve success through correct quantity of labor with the right

skills and the right amount of motivation.

Information Technology influences the Human Resource department at Sainsbury

through:

1) Human Resource Planning

Information Technology at Sainsbury ensures the right number and type of workers to

achieve its objectives. Planning is important so that vacancies are filled as staff leave.

Sainsbury will work out its labor requirements, its demand and make sure that an

appropriate supply is planned. All staff information and records are entered so that

less experienced staffs can be identified and further training can be given to the right

staff. IT can also help with planning the staff shifting system and schedule effectively,

avoiding the problem of miss-arrangement.

2) Recruitment and Selection

With the help of information technology, the best candidate can be chosen for the job

quickly through the proper online system as this will lead to Sainsbury objectives being

met.

3) Training and Development

With the use of IT, Sainsbury identify the training needs analysis, training cost-benefit

analysis, promotion analysis etc. This will help to equip employees with the skills

required now and in the future.

4) Performance Management

IT helps in evaluating performance appraisal analysis, attitude survey, attendance

management analysis, productivity analysis and help to motivate staffs to ensure high

performance for the firm. This would also enhance the output by the employees as they

will be motivated.

Page | 42

5) Compensation management

IT helps in assessing personnel cost analysis and compensation structure analysis for

better compensation management.

The new role of information system in Sainsbury

Usually developing a business plan often depends on what its system will be able to

do for the company in the future. For Sainsbury, increasing market share, becoming

the high quality or low cost producer, developing services, and escalating employee

efficiency relay on the kinds and quality of their information systems. The reason why

systems play a larger role in Sainsbury is because of the high power and diminishing

cost of computer technology that is at the core of information system. With its

powerful, user friendly software, the computer can crunch numbers, analyze immense

pools of data, or stimulate complex physical and logical output with dynamic drawings,

sounds and even demonstrative feedback. Information systems can be a powerful

instrument for making Sainsbury more competitive and efficient.


Sainsbury has a centralized Human Resources policy in which all decisions are taken

by top management. Sainsbury offers vast numbers of job opportunities that are

available in different stores. They offer colleagues flexible contract, term time

contracts and dual contracts to work on

hourly basic. Their job opportunities are

advertised on in-store job board, in local newspaper

etc. Sainsbury recruits staffs two or more months

prior their commencement of work in order to allow

staff training. Sainsbury recruits around 100 graduates every year. Graduates

recruitment is carried out online at Sainsbury graduate recruitment website.

Graduates are trained in all aspect of store management under trainee management

scheme. Under this training period they will work in all areas of store and later doing

their jobs under manager supervision.

Page | 43

Sainsbury employee selection process includes:

1. Collection of curriculum vitas (C.V) and letter of Applicant.

2. Next step is to shortlist candidate which is done by recruitment manager. This

shortlist of candidate is done to meet the requirement of the company that they looking

for.

3. Next is the Interview stage. Interview is the main stage of selecting applicants. A

number of designed question are asked to figure out candidates knowledge. This will

help to know who is good in paper and who has communications skills.

4. Most suitable person, who best fits the company requirements, is selected for the

job.


Performance Management is very significant at Sainsbury’s.

Sainsbury’s satisfactory performance of its employees helps them

remain competitive in the market. Various methods are used at

Sainsbury’s to know how well individual employees are accomplishing

their responsibilities. Here performance monitoring plays a major

role as it offers information which is of value for identifying future training or

promotion opportunities and helps identify areas where inadequate skills or

knowledge which can be a threat to an employee’s efficiency.

Managers exercises control at organization and individual level through:

Development by planning objectives and targets

Creating performance values

Perceiving actual performance

Comparison against actual performance and targets

Adjusting mistakes and taking actions to rectifying them

Page | 44

The manager at Sainsbury’s presents the corporate objectives and the individuals and

team members then state what they feel can be accomplished. The goals are more

expected to be effective if they are:

Specific

Measurable

Agreed

Realistic

Time-related


Sainsbury provides everyone right opportunity through

their training program to develop the trainees’ skills and

knowledge so that they perform well in their jobs. At the

beginning, all new employees are given a general overview

of the organization so that they can have a clear

understanding of their rights and responsibilities. These employees will undergo a

general introductory training program during the first eight week of their employment

period. Under this curriculum, introduction of the company will be given on the first

day followed by intensive program of training covering various aspects like safe

working practice, food, law, security and customer care. During trainee introduction

period, series of modular workbooks will be provided to them that they have to

complete. Through the preliminary training, all trainees are accessed. As they

progress, the performance of the employees will state whether or not they will be

offered permanent employment. For further career development, all employees have

a performance development analysis to discuss their career growth with their

managers in order to verify their progress or training needs at least once a year. For

evaluation of training and development and plan for the future, Sainsbury has career

development committee’s team in each area of business. Various types of training

approaches are used like course, workshops, mentoring, qualification, self-

development books and videos.

Page | 45

Purpose of training employees:

It is necessary to have well trained staff in order to increase profit and achieve

company objectives.

Increases workforce more flexibility.

Increases job satisfaction.

It is better to train employees beforehand so that they feel more comfortable which

will in return increase the performance of the workers. This will help the employees

reach their potential and the business will be profiting as well as the employee.

Senior management training:

Senior management training is focused to meet the business and individual needs.

Through promotion, external recruitment and training, senior management potentials

can be developed. Sainsbury aims to achieve specific benefits and utilize the potentials

of their employees through their training courses.Training and development helps

Sainsbury to improve their quality and service and therefore raise their productivity.

Page | 46

5.6 Financial Budget of HR

Table 1

Executive directors Remuneration salaries and benefit at Sainsbury’s, 2012/13 and 2013/2014

0 500 1000 1500 2000 2500 3000 3500 4000 4500

Salary

Benefit

Pension

Total Fixed Pay

Annual Boones

Deferred Share Award

Long Term Incentive Plan

Total=

Executive director Remuneration

2012/2013 (In Thousands) 2013/2014 (In Thousands)

Executive director Remuneration

2013/2014 (In

Thousands)

2012/2013 (In

Thousands)

Salary 960 940

Benefit 31 32

Pension 288 282

Total Fixed

Pay 1279 1254

Annual

Boones 781 996

Deferred

Share Award 960 975

Long Term

Incentive Plan 925 1141

Total= 3945 2009

Page | 47

Table 1 describe the salary and other compensation package of executive directors which

clearly define a well-structured and attractive package of the executive directors. Sainsbury’s

seriously follow performance based compensation package standardizes for their employees

long tern retention management. It is important that a significant portion of the package for

Executive Directors is performance-related and delivered in shares to align their interests

with shareholders. The balance between fixed pay (base salary, pension and benefits) and

variable pay (annual bonus, Deferred Share Award and Future Builder) changes with

performance. The variable proportion of total remuneration increases significantly for

increased levels of performance. At least 60 per cent of the package is delivered through

variable pay at on-target performance and this proportion increases to at least three-quarters

of the package at maximum levels of performance.

Salary budget of Sainsbury’s

2013 Total

Remuneration (In

Thousands )

2014 Total

Remuneration (In

Thousands )

Non-Executive Director salary 960 960

Executive Director salary 587 587

Mid/Lower Management salary 262853 365763

Total= 264400 367310

0

50000

100000

150000

200000

250000

300000

350000

400000

Non-ExecutiveDirector salary

Executive Directorsalary

Mid/LowerManagement salary

Total=

Salary budget of Sainsbury’s



Page | 48

In line with the policy, Sainsbury’s takes account of a number of factors when considering

salaries, with particular focus on the general level of salary increases awarded throughout the

Company. The salary review for management and non-management central colleagues in

March 2014was 2.0 per cent and for hourly-paid retail colleagues in September 2013 was 2.6

per cent. External pay data is provided to the Committee for reference, relating to the UK

retail market and similar-sized companies in terms of sales revenue and market capitalization,

but the Committee applies judgments when considering market data. It is important that for

lower and mid level managers that a significant portion of the package is performance-related

and the performance conditions applying to incentive arrangements support the delivery of

the Company’s strategy and the long-term sustainable success of the Company. The company

policy considers performance against a range of metrics to ensure that the assessment is

rounded, taking into account both qualitative and quantitative factors for compensation and

benefit package.


Sainsbury’s HR, like all other businesses, has a safety

policy. This is a legal obligation that they must follow.

The policy states in simple terms what the goals of

Sainsbury are in relation to health and safety of

employees. It also consists of actions that are to be

carried out by the key staff members. The policy

includes spanning for coverage of training and instruction, company rules and

preparations for unpredictable scenario. This will be signed by the senior manager; it

is revised regularly to be kept up to date. Sainsbury’s HR has a unique code of practice.

It states what employees should do in an event of an emergency, such as a fire,

earthquake etc. It elaborates how to contact a first-aider, how to find a medical room,

how to call a doctor and so on. Sainsbury’s HR has a health and safety office in all their

stores; they are responsible for all health and safety policies and training. All accidents,

including the nearly missed ones, are recorded in an accident book so they can see

where improvements need to be made.

Page | 49

Health and safety is essential for human resources in order to protect their employees

and customers since Sainsbury’s reputation is at stake. Customers are also included

into the health and safety acts. The policies include:-

Requirements for disability - wheelchair access, lifts, helpers etc

Car parks- checked regularly for trolleys causing hazards, etc.

Customer fire exits- Kept clear at all times.

Shelves- all stacked to the lowest they can be.

Warning signs- clearly visible.

Smoking, drinking, eating- banned in all stores.

Substances and solvents- all kept in unreachable areas for children’s safety (3rd

or 4th level shelves).

Toilets- checked every half an hour for staff and customers.

Sainsbury’s HR wants their employees to work in a safe environment. Laws oblige all

store managers and employees who work there to comply with the health and safety

legislation. The company which enforces the policies is the Health and Safety

Executive (HSE), which has an inspector who can visit a Sainsbury’s store without any

prior notice to investigate an incident or complaint made against them. Usually an

environmental health officer will inspect a store. If there is any evidence of

unsatisfactory working practices, they will give the store manager an improvement

notice with a specific time frame within which the problem must be rectified. In case

of major issues, a prohibition notice will be issued to the office which means that the

store manager must shut the store down. The store manager has the opportunity to

appeal if they think the discussion is unfair but if they lose the appeal and fail to put

matters right, Sainsbury’s HR can be fined a huge amount of money.

Page | 50

5.8 Recommendation

At Sainsbury’s, human resources management is the most

important department. They control the workforce and overlook

how the employees perform. A poor workforce in terms of

inefficient workers could result in low productivity. According to

Mayo’s theory, working in team is important for Sainsbury’s as it creates friendly

environment which can increase company’s profit. Rivals may look for Sainsbury’s

existing employees by offering them better pay and promotion. The HRM department

at Sainsbury’s should be more attentive of such problems and may offer their

employees more pay and promotion in order to keep existing employees satisfied. If

promotion or better pay are offered to employees, they will feel important to business.

Therefore HRM needs to safeguard the Sainsbury’s employees. If an employee has to

leave in near future than advance planning by HRM is needed for recruitment,

interviewing and selection to replace that employee so that the department does not

suffer and business is not affected. At Sainsbury’s, if labor turnover is high, it is

regarded as a failure by the HRM department but if labor turnover is low then it is

regarded as a success. So it is also important to analyze absenteeism rate and seek to

ensure that the rate is low. High absenteeism indicates lack of commitment, poor

motivation and poor management by the HRM.

Page | 51

6. Compare & Contrast HR Practices

M&S recruitment and selection process recruit most potential candidate in the past

also their performance appraisal is also been effective. They formulate new strategy to

cope with the market, investing on ecommerce bring competitive advantage. Different

training and career development programs offered to employee. M&S provide 360

training program but short on advanced level training alike Selfridges. Development

needed on management models, payment funds and market analysis over HR practice.

Primark human resources function mostly focused on traditional administrative and

compliance activities rather to operational improvement. It is clear that HRM has

become increasingly systematic during their evolutions. The challenge for Primark is

to continue to develop innovative systems by focusing on the integrated functions and

systems of organization. HR practices of Primark like recruitment, performance

appraisal reward system matched with the market beta. Considering corporate

strategy before planning can lead them to a new height.

Selfridges advanced training and development creates difference between all four of

them. Selfridges should use flexible training program. Online recruitment as

organizational need help to hire the most efficient employee .large number of

candidate could be assessed within short period of time.

At Sainsbury’s, human resources management is the most important department.

They control the workforce and overlook how the employees perform. Working in

team is important for Sainsbury’s as it creates friendly environment which can

increase company’s profit. Rivals may look for Sainsbury’s existing employees by

offering them better pay and promotion. Sainsbury’s should be more attentive of such

problems and may offer their employees more pay and promotion in order to keep

existing employees satisfied. HR planning is lacking part from other three.

Page | 52

7. Conclusion

Though M&S, Selfridges, Primark and Sainsbury is the leading retail company in their

industry, they have provide a good types of training programs for their employee. And

they also want to avoid any kinds of malpractice in their organization. So that they can

do well in their competitive market. They also care about their employees so that they

stay as leader. It can be said that HR practice is essential for every organization. It

increases productivity, cohesiveness for better performance, good relation between

employees, allow an individual to take decision according to his and company’s

requirement. Moreover, it helps an employee to do diverse work and multitasking. On

other hand, increase motivation level and loyalty over organization.

Page | 53

8. References

DeCenzo, D. (2006). Fundamentals of human resource management (9th ed.). Chichester:

John Wiley.

Dessler, G., & Varkkey, B. (2011). Human Resource Management. Delhi: Pearson.

Bala, Y. (n.d.). The new human resources management in the 21st century: A strategic view.

Retrieved December 10, 2014, from http://cibmp.org/Papers/Paper519.pdf

C. Banerji, S. (n.d.). A Study of Issues & Challenges of Implementation of Information

Technology in HRM. Retrieved December 17, 2014, from

http://www.ripublication.com/gjmbs_spl/gjmbsv3n4_15.pdf

C. Banerji, S. (n.d.). A Study of Issues & Challenges of Implementation of Information

Technology in HRM. Retrieved December 17, 2014, from

http://www.ripublication.com/gjmbs_spl/gjmbsv3n4_15.pdf

About Us. (n.d.). Retrieved December 3, 2014, from http://corporate.marksandspencer.com/

Annual Report and Financial Statements 2014. (n.d.). Retrieved December 5, 2014, from

http://www.j-

sainsbury.co.uk/media/2064053/sainsbury_s_annual_report_and_accounts_13-14.pdf

E-commerce edge helps British retailers expand abroad. (n.d.). Retrieved December 17, 2014,

from http://www.reuters.com/article/2014/05/13/retail-britain-

idUSL5N0MU3WT2014051

E. May, K. (n.d.). Work in the 21st Century: The Changing Role of Human Resources.

Retrieved December 6, 2014, from

http://www.siop.org/tip/backissues/tipjan98/may.aspx

How Does Technology Impact HR Practices? (n.d.). Retrieved December 10, 2014, from

http://smallbusiness.chron.com/technology-impact-hr-practices-37912.html

Kumar, A. (n.d.). Impact of Technology Advancement on Human Resource Performance.

Retrieved December 3, 2014, from http://researchtrend.net/ijet42/6 KAMAL F.pdf

Page | 54

Our Ethics. (n.d.). Retrieved December 17, 2014, from http://www.primark.com/en/our-ethics

Selfridges Careers. (n.d.). Retrieved December 17, 2014, from

http://selfridgescareers.com/head-office/training-and-development

Final Project Part 2

Documents

Transcript of Final Project Part 2