Human Resource Management - Case Study Example

HUMAN RESOURCE MANAGEMENT Table of contents Introduction..3 HRM Issues Faced in Deciding to Create Business Units .............................................4 Relationship between HRM and Business Performance of the Company ...................5 HRM Approaches for Marks &Spencer .........................................................6 Conclusion..6 References..7 Introduction: Human resource management is the process which includes deploying of people (employees of the organization) evaluation or measuring employees' performance and the organization, recruitment process, staffing, controlling, giving reward to employees, encouragement and so on. People are the most precious asset of an organization. If people (employees of the organization) will be satisfied and rewarded from the organization that will also effect on their performance and organization as well in terms of high productivity and success of an organization. Team work is very important in human resource management; manager should take along his/her employees and also consult and take their opinions for taking good decisions for their company/organization. The resource management helps managers work together to manage large teams and projects as well. Some important things should be noticed while performing the functions of human resource management and it may also incur some issues as well that should be resolved in an effective manner: Q.1.What might be the strategic HRM issues facing the company in deciding to create business units HRM Issues Faced in Deciding to Create Business Units With reference to Pieter.A.Grobler (1996) Strategic HRM issues can occur according to change of environment around business organization. While deciding to create business units we should monitor the following issues: 1. High Rate of Employment -- means that reduction in employee's expenditure to increase the production rate of an organization. 2. Shifting From Manufacturing Industries to Service Industries e.g. telecom sectors, banking, hospitals, utilities, insurance, education and so on. 3. Productivity Challenges. To face these challenges effectively. 4. Employee's Right such as NGO's, unions, media and democratic culture. 5. Technological and Environmental Changes. These can be changed according to the passage of time. It will also occur by the change of environment and by the change of different factors and culture of the society. Technology is a thing that will always change its direction and bring new and innovative things for its users. 6. Industrial and International Relations. For e.g. courts, commissions, government etc. 7. Women Induction in Jobs. Women issues might occur i.e. harassment and discrimination. 8. Career Planning and Development. It is an important step while deciding or developing new business units. A proper and organized, planning and development strategy leads to a great success. 9. Lack of Opportunities. Should notice those opportunities that will give benefit to an organization by observing our competitors. 10. Product Diversification. Product always needs change and diversified strategy to bring improvement and innovation in a product line that will attract customers. Q.2. To what extend does the company need to overhaul the relationship between HRM and its core businesses Relationship between HRM and Business Performance of the Company: According the case study (Financial Times, 22 Dec'1999), Mark and Spencer was facing several problems in their business. They even suffered with great fall and they lost their revenues in a competitive environment of UK. They used the diversified strategy for their company in terms of developing a team of seven people who were responsible for the seven units of Marks and Spencer. As the answer of the question, the company should understand the practices of HRM clearly. They took several wrong decisions that affected their business badly. If they used correct strategies and followed the HRM rules rightly, the problems would not have occurred. Marks and Spencer needed to revise or renovate its relationship between HRM and their core business by following these steps. First of all, the biggest mistake done by Mark and Spencer was that while performing several functions within the company, they didn't have any Chairman of the company at that time. Which means that chairman's seat was vacant. To monitor or to check the company's performance there should be a top management who should always keep an eye on its company's performance and its employees. But there was no top management according to the HRM process. So that's why everyone was the boss at that time and the company faced great defeat because of mismanagement of the employees as well as directors. Secondly, company shuffled or used job rotation process for better productivity or to save their business. They divided their business in seven units by making seven people as the head of each department or unit. Job rotation process is very important; in fact it's an effective approach in HRM for the employees of the organization. Mark & Spencer used this approach to get benefit but this approach was not used properly and effectively that's why it didn't give any advantage to them. The reason is that, they shifted the person in that unit who didn't have any knowledge about the other unit. For e.g. food unit to women's wear unit. It also affected the buying power and the company beared loss because of this mis- management. If they used this HRM process effectively, they would have surely got benefit from this approach. Last but not the least; they split with an immediate effect which is not a good approach in HRM as well. HRM (human resource management) says changes that are made gradually/slowly and continuously lead to a great and stable success. Q.3. Using the styles and approaches to HRM outlined in this part, suggest a suitable HRM approach that Marks and Spencer might adopt for the medium term HRM Approaches for Marks &Spencer HRM is the strategic and coherent approach to the management of an organization's most valued assets (Armstrong, 2007). Achievement or success of any company based on its employees, whether the functions performed individually or collectively. According to the HRM approach these things can be adopted by Marks and Spencer i.e. employing people, developing resources, utilizing, maintaining and compensating their services and organizational requirement. Different processes can be done through HR departments but work can be divided into groups and subgroups and one person or employee can give its work power to other departments as well. When these function of HRM work effectively and accordingly, they provide significant economic benefit to the company. Workforce planning. Recruitment. Skills and knowledge management. Training and development.(for e.g. give training about other units or departments as well). Personnel administration. Compensation in salary and payment must be on time. Time management Employee benefits administration. Personnel cost planning. Performance appraisal. Conclusion: While performing good business, we should follow effective strategy that gives benefit to our organization. HRM is a vast field and it provides several practices to make our business successful in the market. By using these practices and performance mentioned above we can achieve success in our business. We can even minimize the similar mistakes made by Marks & Spencer or any other company as well. References 1. Armstrong, Michael, 2007, A Handbook Of Employee Reward Management And Practice, Kogan Page Publishers, 2. Grobler, Pieter. A., 1996, Sam Advanced Management Journals, vol. 61, no. 1. Cengage Learning 3. Monks, Kathy, Scullion, Hugh & Creaner, Jane 2001, Personnel Review, vol. 30 no. 2, Routledge. 4. Armstrong, Michael, 2006, A Handbook of Human Resource Management Practice, 10th Edition, Kogan Page Publishers. 5. Dessler, Gary 2002, Human Resource Management. 8th Edition, Pearson Education, Canada. 6. McDonald Darren, 2003, Global Business Review: vol. 4, no. 1, p. 99-114. Business Review Weekly. 7. Beardwell, Ian, Beardwell, Julie & Claydon, Tim, 2007, Human Resource Management. A Cotemporary Approach. 5th edition, Prentice Hall Financial Times. Read More