P1.4 Impact of legal and regulatory framework on Harrods human resource management
Taking care of the legal issues and policies is very important for company, especially when company is as big as Harrods which has its presence in many places. All these places have different legal policies as per the state rules. Another issue Harrods faced long time back was the copyright issues with other stores. It is the duty of the brand managers to take care of copyright issues and they may take help from the legal authorities to handle the issues.
The regulatory framework which is followed by the human resource department at Harrods mainly deals with the contracts with the employees. When human resource hires new employees, they sign a contract with the employees which mentions the probation period of 6 months. If the employees performance is not up to the standards, they might be fired based on the probation condition in the contract.
Another feature of the legal framework adopted by the human resource department at Harrods is taking care of the government policies regarding the wages of the employees, health of the employees and safety of the employees.
LO2 Understand how to recruit employees
P 2.1 Reasons for human resource planning at Harrods
Employees in any company is the key to success of the company and when it comes to the company like Harrods which has 45000 employees, human resource department is very much required. It is the human resource department who handles all the employees in the company and manages the task like recruiting the new talent, retaining the engaged employees, deal with the problems of the employees, taking care of the scheduling and rotation of the employees and handle the wages of the employees. Maintaining the employee relationships is also the responsibility of the HRM (MacDuffie, 1995, pp. 203).
Few years ago Harrods was facing the problem of Employee Turnover, which measure the rate at which employees of a particular company leaves the company in their first year of employment. This was the time when Harrods found out the need of a good human resource department. To resolve this problem, human resource department at Harrods conducted a survey of all the employees in the Harrods and found out the problems they were facing and recommended the management to take actions to resolve employees’ issues.
The reasons why human resource planning is necessary at Harrods could be summarized as below.
- Retaining the engaged employees
- Employee satisfaction
- Managing the employees’ training
- Getting in touch with line managers to get the requirement for the job
- Hiring the best talent in the market.
- Negotiating the salary with new employees
- Managing the awards and appraisals.
- Managing the discussion and forums to let the employees participate in decision making.
P 2.2 Stages that Harrods can adapt in planning human resource Requirements
Planning a human resource requirement is an incremental process, which start with the hiring the good HR managers. These managers should be highly qualified and should have the experience in the retail industry in the case of Harrods. For other companies which are in different fields, the requirement of experience is different. Human resource requirements are mostly provided by the line managers who provide the HR exact job description for which the position is vacant in their projects. Once these requirements are received, human resource would go through the following stages to complete the requirement.
- Searching the Company database for existing resumes
- Put the job requirement on different job portals
- Use the referral program
- Shortlisting of the resumes received through the job portal
- Conducting the telephonic interview on the primarily basis.
- Calling the candidates who seem satisfactory in telephonic conversations
- Arrange a panel of managers or subject matter experts to conduct the interviews.
- Negotiating the salary packages with selected candidates
- Once the candidate is on board HR has to make sure that he knows all the policies and processes followed in Harrods.
- Arrange a tour of the company’s different departments
- Completing the formalities like salary account openings and ID cards issuing.
P 2.3 Comparison in the recruitment and selection process at Harrods with another Business
Every company has different policies for recruitment which are based upon the organizational structure of the company and also the type of Requirement Company has at that time. In this part of the paper a comparison of the recruitment process at Harrods and Sainsbury will be covered. Harrods is completely dependent on its Human Resource Department which performs the recruitment process in the way that has been followed since the birth of Harrods. The different stages of the recruitment processes are explained in the last paragraph. Harrods’ human resource department also hires the employees which are referred by the existing employees of the company. Human resource conducts all the processes as they do for other candidates. Referral is not a guarantee of the selection and is not considered a factor when deciding which employee is fir for the requirement.
Sainsbury, on the other hand outsource the recruitment process to other companies or consultancies. By doing this Sainsbury reduces the efforts in recruitment and their human resource department could focus on other issues at hand. The consultancies hired by the Sainsbury selects the candidates on the basis of the requirements given to them by Sainsbury. They conduct the primary interview and the candidates who are selected by the consultancies, sent to Sainsbury for the final interview which is called managerial round or HR round.
P 2.4 Effectiveness of the recruitment and selection techniques in the above two selected organizations
Both of the techniques explained above in Harrods and Sainsbury have their own pros and cons. Since both techniques are so much different than a point to point comparison is not possible and it is also difficult to compare their effectiveness. The technique adopted by Harrods seems to be more time taking and involving many resources of the human resource department which is definitely not good, but the advantage of this technique is that human resource is able to find the resources which match exactly the requirements given by line managers. At Harrods, line managers are included in the interview panel which makes it possible to hire the right talent. It may take more time and resources but finally this technique is very effective.
The technique applied by the Sainsbury depends upon the consultancies they hire fir the recruitment purpose. The biggest challenge in applying this technique is finding the right consultancy to outsource the requirement process. Since the interviewers in the consultancy might not be the subject matter expert, they might not be able to get the best talent in the market. The last interview in this process is held by the HR of the Sainsbury where only managerial questions are asked and negotiating on the salary is done. The line managers are completely absent in this process. This is the reason that this process may take less time and efforts, but may not be effective as the technique adopted by Harrods.
LO3 How to reward employees in order to motivate and retain them
P 3.1 Link between motivation theory and its reward with an application on Harrods Case study
There are many motivational theories explained by many authors and applying them is a very good idea to keep the employees motivated and cease the employee turnover. Maslow’s hierarchy of needs motivational theory is one the best theories which are adopted by the Harrods. According to the theory by Maslow, every person has its own needs and if these needs are not satisfied by the company, they could create a tension in the mind of the employee and he may not be able to perform his work duties efficiently. Maslow has divided his theory of hierarchy of needs into 6 levels and suggested that a need at higher level would only arise if the need at lower level is fulfilled. These levels are summarized below:
- Self-Actualization needs
- Participation in decision making
- Esteem needs
- Social needs
- Safety needs
- Physiological needs
Harrods has successfully implemented these six levels of needs and doing everything they could to satisfy the needs of the employees. At Harrods, Democratic leadership is followed which gives the employees a chance to be the part of the decision making. The advices from employees are taken into account and implemented in the policies of the company. People are assigned challenging and creative work, which satisfy their Actualization needs and promotion are given to the employees for good work which satisfy their esteem needs.