Marks and Spencer plc (M&S) founded in 1884 by Michael Grades and Thomas Spencer is one of the top UK merchant with 730 stores in the united kingdom and 361 stores in 40 countries on the globe. M&S specialises in luxury clothing and food product. M&S was the first United kingdom retailer to attain £1 billion free of tax profit in 1998. As of 2012, M&S has 81, 223 employees worldwide.
M&S manages in a competitive market business lead by Tesco and ASDA. Customers of M&S has an array of choice on what they would shop for. Not only food and cloths M&S has electronic products, financial services and energy products. M&S has both stores and online existence where customers can buy their product 24x7.
In current years there has be wide selection of research in organizational research management and HR is one of them. Importance of HR has never been so high. Worker development in organizational management has seen speedy growth in employee development tactics. These arrived in form of continuous training, ability development program and cultivating a culture of worker satisfaction. Countries like Japan, Germany and Sweden were more associated with such strong HR procedures which lead UK companies to look at such rewarding tactics to improve staff engagement in business (Beardwell, 2007).
Over the last decade M&S introduced several HR initiative that would provide high tech staff training and therefore engage their employees in quality work. David Ulrich developed 'BPM- Business Partner Model' which is often found in large scale company like M&S to structure their Individuals Resource policies with respect to ever before changing business environment (CIPD, 2010). In traditions HR model there are four elements these are:
The adopted model has three additional elements has:
Centers of Excellence
Strategic Business Spouse.
This statement will link to appropriate models when needed. M&S HR team has transformed recently; the role of service and administrative division has be transformed to a proactive role inside the business. This change in strategic level ensures superior distribution of resources, training and skills which is needed to build up employees within different level of the business. Management of HR in a proper level enhances central competency, knowledge writing within organization brings about intellectual capital and sustained learning culture which is essential for company's success (Mullins, 2006; Burke & Cooper, 2008). Porter and Smith (2006) declares that ongoing development of staff skills works mostly to accomplish wider business goals. David Ulrich's (2008) business spouse style of 'Employee Champ' emphasized that HR office in an company should pay attention to employees and provide them with enough resources which will enable them to attain company targets. HR plays critical administrative expert role which provides distributed services to the business. This unit contains all basic transactional activities which include payroll, attendance monitoring, maintain and allocating resources. On top of that this unit handles employee connection related issues.
M&S has adopted strategy that would cultivate worker trust and devotion in all sections of the business in order that they are better employed in company operation. These companywide proposal means each staff understand their role and tasks, they feel linked with all company activities moreover they know how their involvement makes a variations all together to company functions (Beardwell, 1996).
HR can build relationships employees right from the start of the job. For example M&S started out doing induction program for the new recruits. This helped them to start developing their employees from day 1. Employees from different culture brings varied skills and aptitude. People have different learning styles and commitments which drives them.
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Figure : Staff Engagement (Source: CIPD, 2010)
Reddington et. al (2005) asserted that to make a successful business company needs to motivate its employee to provide excellent customer support by guaranteeing their determination towards excellent customer support this permits company's main value to be included in day to day operations.
One of the top areas of HR function is to allocate resources as per company budget keeping in mind organization's sustainability in future. Allocating enough resources where needed means employees will feel their need is well assessed by the business hence they could be reassured that company is convinced they will work at their highest level. Maintaining translucent employee connection is also important as this will mean sensitive data about company procedures are dealt with within the boundaries of the organization (Wang & Swanson, 2008). This does mean building trust among employees and management. HR office plays role of the bridging block among these levels. While connected in an emotional level employees will hook up their emotions with company's success.
When employees feel they are really valued they will have higher determination towards their job thus 'Staff Champ' will be created. As argued in CIPD (2010), the way organization treats their employees it demonstrates when these employees comes into relationship with employees. Organizational equity should be treating every employee with same health care. Encouraging integrity and trust among employees, management and HR will ensure a natural customer centric environment is present (Visitor, 2011; Samnani, 2012).
Recruitment of well skilled people and motivating employee engagement in every levels of organization means it will foster innovative work place, higher rate of employee retention, ecological performance throughout the business. Training employees at all level creates more talents within an organization who is able to later on business lead a bigger segment of the business (Tissen et. al, 2010). These can be labelled as 'Centers of Superiority' as per Dave's designed model.
People planning is an activity of examining people resources across the company and choosing future need of the business as per location, skill scarcity and number. As the futuristic company M&S must think in advance to plan consequently about its workforce. M&S business strategy is to expand both in home and international market. Its great operation needs talented labor force who'll bring the right level of knowledge, skills and aptitude.
In M&S job starting occurs due to following:
As the company expands in domestic market with new stores or when it gets into new market internationally.
Vacancies arises when existing people leaves the business or retires or even gets promoted to a higher position within the business.
In situations where company derives new strategy or presents new lines or technology.
M&S always evaluates its workforce and trains employees with exceptional management capabilities. Employees with powerful is often picked for more challenging functions. In 2010/11 M&S trained 4000+ management personnel to support their growth worldwide.
M&S needs people for various roles within the organization plus they have both store structured positions and non-store founded positions.
Head office enables the company to use efficiently by allocating resources. Role of head office includes controlling company capital, individuals resource management, legal service, managing properties, marketing & PR, accounting and IT support.
Stores needs administrators, stock handlers, checkout providers, supervisory teams, mature management team and main assistants.
It's distribution depots requires skilled people for logistics and stock handling.
M&S ensures employees whatsoever level work together to achieve company targets and objective. To achieve that M&S must ensure they may have right skilled people in the right number at the right job to do at right time. Within a set up process recruitment is carried out to draw in right degree of applicants in managerial or functional level.
Bratton & Platinum (2000) mentioned one of best accomplishment of a business is to generate transferable skills in their employees. In today's financial situation no company now guarantees a job for life so people have to advance in their job. Only top employees have range to make choice about range of these job, have better job security, way of advertising etc.
In M&S this people planning process begins each year in February. You can find constant review process May, August and November hence M&S can recruit as per company's need. This ongoing process allows the company plenty of time and flexibility to make demand for new staff and work on strategic goals. Using this method company can increase new store preserving same service standard.
M&S's prime purpose is to maintain customer satisfaction by providing them excellent service. Within the organization's composition customers comes top in the goal list. M&S needs right people at the right level throughout its functions. In the business there are six levels these six levels are there to manage and control people in the business. Each level has distinct set of skills and knowledge.
â¢ Job Level 1 - This level requires directly facing customers. Various waiting for you tasks require stocking the store with right degree of products. This position requires pursuing company strategies and working accordingly. Enthusiasm is required to interact with customers.
â¢ Job Level 2 - In such a level employee needs to lead several customer service team members. These people are had a need to maintain and take care of resources. Also their job includes setting and achieving goals. Motivating team members to execute at their finest is also an important role they need to play.
â¢ Job Level 3 - With this level of operation it is required for the staff to run a whole unit. It should take more impressive range of management with operating an operating unit. Requires management skills, including planning, ongoing target setting up and reporting to raised authorities.
â¢ Job Level 4 - In such a level support is given to the operating unit as well as recommending required strategic changes. This will involve sound understanding of the company. In this position it is required to have skills to analysis information to make decision. This level requires higher ability to lead the operating units.
â¢ Job Level 5 - This level staff is accountable for the complete business functions. This level will require ability to make critical decisions, making strategic changes leading the business to contend with competitors.
â¢ Job Level 6 - Creating the aim, value and goals for M&S. This position is the ultimate top level where excellent knowledge of retail environment in cross cultural market is essential. Building a perspective for changes in future and the way to identify from others is important.
M&S will try to fill up vacancies from insiders of the business as it recognises the value of doing in like manner motivate employees to progress to next level and make an effective job. M&S has 'Ability Planning' where they may have annual appraisal plan where existing employees can make an application for 'higher list' careers. Employees identify what higher ranking they would like to go to they explore possible ways to achieve that. Their line managers formulates necessary specialized, appraisal, competency and behavior skills demanded by the role. Mature management trains the staff and makes pathway for him/her to achieve the dream rank. This not only helps M&S to be successful as an organization by retaining talented personnel but also promotes their company as a spot to help. People will be highly interested to be employed by the company as they will know they are really with a good company who manages their personal objectives.
To do this what's needed is ideal job description accompanied by person specification. An excellent job description evidently states:
Title of the position
To whom the individual will report
Description of duties
Target audience (customers, clients etc)
Person specification will state required skills, knowledge, attributes of the potential employee for that particular opening. Task of HR is to clearly advertise both job information and person standards. This ensures right person is drawn to apply for the job ( Ulrich, 2008). While sorting out the CVs HR section makes critical decisions to decide who gets the right skills. By targeting right folks from the beginning sustained growth can be made certain.
This section intends to compare current HR theories and its put in place M&S HR businesses.
There will vary ways to HR planning. As Storey & Salaman (2009) talked about there are two ways to deal with HRM: 'hard' and 'smooth'. In hard methodology hardly any thought is given on worker thus company success is the only measurement of performance. Compare to the in soft version keeping business success at the top parallel matter is given to employees too (Kooij, 2011).
With appearance of knowledge structured economy companies have to deal with skills development to train its employees to preserve them in the company. Constant training empowers employees with current needs of the work. M&S has integrated strategically HR into its ideas. Managers have to consider HR functionalities directly into decision making. On a regular basis M&S communicates its goals using its employees so that they know their targets and HR section can work on it to consider it further.
In recent time there's been change in the manner training is provided in the company. Now the strategy is to consider HR office more than administrative level. To produce a proactive team to work in strategic level M&S has lengthened its training priorities. This way of managing encouraged growth in employees motivation with higher competence level.
Over the last 10 years Strategic HRM has seen recognition and it's been linked organisational source management. Within this style all worker are treated as a part of company's success. So even in the induction they get to know their importance for the business. The business led training ensures M&S embraces ethnical differences and learning skills.
Jackson (2002) recommended to place higher value on employee performance to get best performance from them. According to Chanda and Shen (2009) any successful group will keep worker issues in top of these decision making so that central values of the organization is transported by the stimulated employees. Among the major private retail company M&S demonstrated their involvement in talent resourcing. It offers even surpassed govt. layed out initiative of fabricating a learned modern culture.
For an effective HR it requires to take a dynamic role in creating strategies. Strategic HR normally packages out the program for organic learning strategies, developing intellectuals also enhancing companies core competencies (McGovern, 2002). These worth are absolutely crucial for companies success. Employers are actually engaging in training employees to make a highly skilful band of workforce.
As M&S manages in an extremely competitive retail sector it's important for them to sustain its progress by retaining higher level of employees. To continue the expansion company must acknowledge that employees need to attain their operational goals at a regular basis, HR team helps M&S to reinforce it when necessary. In fact, HR is the central aspect in M&S organisational strategy to establish a very skilled employee base because of its operations.
Principal target of a for profit business is usually to take full advantage of shareholders' investment. To obtain this with limited resources open to them HR department has to use their skills and aptitude to save where it can and make investments where it needs (Yarnall, 2008). By guaranteeing investing in right place means benefit for the business by increased income.
HR theories highlights the value of adopting a systematic clinical approach to maintain ongoing development of staff skills in order to attain wider goals (Christensen, 2006). In M&S this systematic development includes determining needs, planning and expanding. Evaluation and appraisal is one of the challenging issues companies face (Armstrong, 2000). These reputation really helps to formalize popularity and makes way for progression.
With job security becoming less nowadays employees receive chance to develop transferable skills. Your M&S slogan reflects the business as it echoes throughout the business procedures (Reilly, 2006). M&S regularly surveys its employees to find out motivation level and identify potential changes that need to be brought. Also this leads to improvement of work environment and better performance in worldwide businesses.
M&S essential should maintain their HR scheme. This employee focused, interesting and adaptive system means higher retention rate of the employees that helps you to save M&S money. As an insightful futuristic company M&S needs to make sustainable changes in their recruitment insurance policies. Preference should get to permanent planning. People who can serve the company for a longer period should get inclination. HR has in-depth knowledge of the businesses of the business plus they have to develop future leaders preferable from within the business.
M&S should use its global program for recruitment and selection for its global functions. While company prices remain same but in cross cultures techniques and prices might change. This has to be looked after too. Behavioral characteristics and country account wise employee selection means they have the best people for the job.
From the study various a key point has been determined regarding HR practice of M&S. M&S has a great HR management practice set up which they need to transport on. Together with this they can think of other development plans for their staff. By enabling increased resource availability because of their employees M&S can rest assured to be always a market head in forseeable future.