School of Business
MBA Program
Term Paper
On
HR Practices
Submitted By:
Jeener Badsha
 |
Submitted To:
Prof. Dr. Md. Mahmodul Hasan
Faculty of Business Administration
Ahsanullah
University of Science & Technology
|
Date
of Submission: 11-03-2018
Date: 11-03-2018
To
Prof. Dr. Md. Mahmodul Hasan
Faculty of Business Administration
Ahsanullah University of Science & Technology
Subject: Submission of
Term Paper on HR Practices.
Dear Sir,
We would like to draw
our attention and submit this Term Paper for your kind perusal and necessary
evaluation.
As a course
requirement, we are assigned to develop and submit assignment. We have been
able to prepare and submit the same within the stipulated time. Although the
topic covers vast areas, we have tried our level best to accumulate the
relevant issues to develop a platform for our understanding. We admit that the
paper we prepared is not complete and accurate in many aspects. Hence, we would
appreciate any sort of supplementary and clarification to this report whenever
necessary.
We would feel highly
rewarded if this Term Paper serves its purposes it was aimed for.
Sincerely your
Students,
Sl
|
Name
|
Registration Number
|
Signature
|
1
|
Rakibul Alam Laskar
|
15.02.51.037
|
|
2
|
Md. Asif Ahmed Shakil
|
16.01.51.002
|
|
3
|
Al-sabbir Ovik
|
17.02.52.042
|
|
4
|
Tariqul Aziz Anik
|
17.01.51.058
|
|
5
|
Faysal Ahmed
|
17.01.51.011
|
ACKNOWLEDGEMENT
This is great privilege
for us to express our enormous sense of gratitude to the almighty Allah for his
countless blessing upon for the successful completion of this assignment.
We
would like to convey our deepest sense of gratitude and immense indebtedness to
Prof. Dr. Md. Mahmodul Hasan, Course instructor, Fundamentals
of Human Resource Management, Master of Business Administration, Ahsanullah
University of Science & Technology, for giving us opportunity to prepare
these Assignment and support to complete this in an appropriate manner.
A silent stream of
gratitude to our most adorned parents whose blessing are always with us in this
world.
Finally we liked to add
few more words saying that, this report is prepared by learner and naturally
there could be errors and omission which are extremely belonging to us.
Executive Summary
In this term paper,
we have analyzed the Human Resource practices and different HR issues of four
retailers like Marks & Spencer’s, Selfridges, Primark and Sainsbury’s. All
these four organizations are very popular in their recruitment and selection
process where the initial searching and selection is completed by online.
The basic dispute
Marks & Spencer faces are the workforce diversity, high technological
advancement and the international business expansion and there are also
challenges due to the recent automated e-commerce distribution center, website
launch, online based shopping etc. It has many career development programs, of
which on-the-job training plays a vital part.
Another company
Selfridges faces the high turnover and need of recovery plan. It has unique
career development program where employees are made to visit store to store and
then a suitable position or workplace is chosen for them.
The basic challenge
Primark faces are the need for the adjustment of its business model and
challenges in fulfilling its corporate responsibilities. Within Primark one’s
career maybe developed in retail management, buying or merchandising and
structured introduction and training for specific developments is provided as
per need.
Moreover, the basic
threats for Sainsbury’s are to hold on to its employees. Its career development
process includes initial training, staff development, senior management training
and investors in people.
Table of Content
Title
|
Page
|
Page Title
|
1
|
Acknowledgement
|
2
|
Later of Submission
|
3
|
Executive Summary
|
4
|
Table of Content
|
5
|
Definition of Human resource Management
|
6
|
Chapter 1: HR Practice of
Marks & Spencer’s
|
7-14
|
Chapter 2: HR Practice of
Selfridges
|
15-22
|
Chapter 3: HR Practice of
Primark
|
23-31
|
Chapter 4: HR Practice of
Sainsbury’s
|
32-40
|
Compare & Contrast HR
Practice Among M&S, Selfridges, Primark & Sainsbury
|
41-42
|
Conclusion
|
43
|
References
|
44
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Appendix
|
45
|
Human Resource Management
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.
Chapter
1
HR Practices of Marks
Spencer
Marks and Spencer (also known as
M&S; colloquially known as Marks and Sparks, Marks's or, simply, Marks) is
a major British multinational retailer headquartered in the City of
Westminster, London. It specializes in the selling of clothing, home products
and luxury food products. M&S was founded in 1884 by Michael Marks and
Thomas Spencer in Leeds.
HR
management in the 21st Century: Challenges for the future
The latest businesses of 21st
century are unlikely to operate their business without proper well organized
human resource department. This requires latest technologies as well as
fruitful techniques to get it properly managed. But as our economy is
constantly changing, the scenario of today’s business world, technology,
preference of customer choice is also changing. Marks & Spencer is one of
the most renowned clothing brand which is also regarded as a international
chain currently having 700 + stores in UK as well as they continue to grow
outside their home country. The company is highly efficient in dealing with the
difficulties faced because of economical ups and downs. They usually tend to
follow the latest technological method in terms of managing their organization.
Not only they have different technological method but also different tactics to
train and develop their human forces. Employees are never forced to do work
against their wish which indicates their freely chosen employment practice.
They can choose their work plan according to their wish which indicates the
liberty of flexible work environment. The company itself has a more
sophisticated training system for their employees to cope up with the
challenges of 21st century. Marks & Spencer sometimes introduce induction
program to train their people as well as at the same time team work, passion
for work are very highly encouraged.
There are few factors that are affecting the current HRM
Policies of Marks & Spencer:
1. Globalization:
M & S has introduced EEO policies to ensure diversified work force which
creates comfortable work environment.
2. Technology
Advancement: M & S is now using advance technology for Recruitment and
selection procedures & provide facilities and benefits to the employees.
3. Change
in political and legal environment: Another challenge for Marks and Spencer is
changing environment. So M & S tries to accept the changes and follow the
customer demands.
The impact of Information
Technology on HR Management
The recruitment & selection
Getting
the reach of a pool of classified applicant is one of the most crucial aspects
of recruitment process. M & S has a very easy process of posting their
vacancies or fresh recruitment in their own website featuring job vacancies.
Hiring the best people is particularly challenging in technology based
organization because it requires a very high level of technological knowledge.
Employees must be good enough as well as dynamic to survive in today’s
challenging organizational work roles. Once the applicants are identified HRM
department should screen for the final applicants very carefully to make sure
that the candidates are best fitted in the organizations culture. HRM selection
tools help to select out people who aren’t team players or unable to handle
stress or who poor fit into the organization. M&S has always given
priorities for recruiting the right person for the right job in the right place
and at the same time helping them to develop their skills, attitude and
behaviors by giving proper guidance and training.
Recruitment
Process of M & S has given below:
1. Candidates search for suitable
position to apply via company website as per the job role which is best suited
for that individual.
2. The search will initially show all
the possible vacancies and requirement for each.
3. After sorting the best suited
candidate will start the initial process through applying online.
4. When the suitable post / job is
clicked applicant will be guided to the designated online application form.
5. An online assessment test will be
conducted to analyze the candidates.
6. A confirmation email will be sent to
the validated email address.
7. The store recruitment process is easy
to track as the applicants can revisit the site to track the progress of their
application.
8. If the applicants qualify in their
assessment test, M&S will contact them for the next phase of a short
interview.
Performance
& Reward systems
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.
At
M&S we feel it's vital that our people are well rewarded. So when you say
yes to M&S, we’ll give you access to a highly competitive total reward
package that’s proven to attract, motivate and retain the best people. We’re
constantly reviewing the details of the package to make sure it’s got
everything our people want in a benefits scheme, but the things you'll be able
to enjoy currently include:
·
Pay – M & S reviews their basic
pay every year, plus they offer extra performance rewards to recognize
individual achievements.
·
Employee
discount –20%
discount on all in-store and online purchases for their employees.
·
Holidays – Employees are entitled to a
minimum of 28 days’ statutory holiday per year.
·
Bonus – M & S offers a number of
discretionary bonus schemes on offer that reward their employees for helping us
to reach our goals.
·
Pension – M & S offers an excellent
Defined Contribution pension plan, where if employees contribute 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
his/her annual pensionable salary.
·
Shares
save – By
joining one can save any amount between £5 and £250 each month for 3 years. At
the end of 3 years he/she can get money back or buy shares at an exclusive 20%
discounted price, which is set at the start of the scheme.
·
Salary
Sacrifice-
Salary Sacrifice schemes covering- childcare vouchers, holiday buying, car
leasing and cycle to work, save money on tax and National Insurance.
·
Discounts – Employees can enjoy 1,500
special discounts covering holidays, leisure attractions and many more products
and services.
·
Heath
& Wellbeing
– M & S offer discounted healthcare products and a wellbeing website with
top tips and health guides, to keep fighting fit.
·
Charity
Volunteer Day
–Any employee have the opportunity to volunteer for one day at a charity of own
choice.
Career
Development & Training & Development Program
As
well as training, we offer an induction programme for all our new starters.
This will last between one and two weeks, depending on your experience. This
induction will give you a basic overview of our business, along with all you'll
need to feel passionate, inspired and excited about your new role with us.
Our
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 Shwopping experience
and countless other initiatives besides. All of which fits with our ethos of
continuous improvement and making things better.
1.
On
the Job Learning: There is a huge opportunity of on the job learning in M &
S.
2.
Store attachments: Through
their store attachment program one will get hands-on experience in
one of stores.
3.
Corporate learning Program: M&N invests plenty of time with employees to ensure they
receive all the right technical training.
4.
Role Specific Training: Through role-specific training, M&S helps its
employees to reach own goals.
5.
Development Reviews: M&S ensures employee achievements are
recognized, feedback is heard and, of course, that one’s career is progressing.
Financial budgets of HR
As
you’d expect, this part of Logistics Support manages the integrity of financial
accounts. It also audits our purchasing and payroll systems, as well as providing
support in analytical reviews of financial performance. Careers in this part of
Logistics are ideal for those with a good level of financial experience in an
operational environment – particularly dealing with purchasing and payroll
systems, along with balance sheets and budgets.
We offer a range of options for flexible working, be it part-time
work, job sharing or term-time working. We also offer support for staff wishing
to study or to take a complete break with our career break scheme of up to nine
months’ unpaid leave.
M&S
recognizes the importance of the family and the need to support working parents
in ways that help them balance their work and family lives. We want to ensure
that both current and new mums and dads get all the help and support they need.
M&S
believes that adoptive parents should have the same support as biological
parents. We offer comparable adoption leave and pay within a policy specially
designed for adoptive parents, including extra support leading up to the
adoption.
We also offer
paid time off for staff undergoing IVF treatment and for staff undergoing
assessment as prospective foster parents. When the baby arrives, we offer two
weeks paid paternity leave to all dads/partners. Parents can then take parental
leave of up to 18 weeks’ unpaid leave per child up to the age of five years.
Health
& Safety Issues & HR Ethics
At M&S they have the fire health &
safety committee who gives advises on fire, health & safety policy. It
monitors effectiveness and reviews key performance measured on a quarterly
basis. The committee receives updates through a designated network group. These
issues are published through the Business Involvement Group Meetings in their
website in the My Store Workspace and these are also displayed in the notice board.
The store/ site manager is responsible for any issues related to this or any
prevention, reporting and investigation of accidents.
1. The Fire Health & Safety
Committee -
advises on fire, health & safety policy, monitors its effectiveness and
reviews key performance measures on a quarterly basis.
2. 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 and the completion of
store specific risk assessments and maintenance of known hazard information.
3. Occupational Health
Services – provide advice and support to line
managers on managing the impact of work on health,
and health on work.
4. Business Involvement Groups (BIGs) - They should discuss health
& safety policy,
performance and implementation as an agenda
item at each meeting and update the business through the FHSO Networks.
5. Retail Finance and Operations
- and its Trading,
Safely
and Legally Team are responsible for determining and monitoring risk assessments,
work practices and enforcement
measures.
6. Property Development and
Facilities Management
- are responsible for the provision of working areas, equipment and materials
that are safe and without risk to health.
7. 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.
8. All employees must be aware of
their individual responsibility-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 and the Head
Office Fire, Health & Safety Team.
Recommendation
M&S
is very good in their overall procedure of recruitment, selection, training
& allover HR practices. Joining M&S means so much more than working for
one of the nation’s largest retailers. From competitive salaries, bonus schemes
and flexible working options to opportunities to volunteer in the community,
there really is something for everyone. Because we want to be the best, we want
you to be your best. The size and scope of our business means that the
opportunities on offer are as diverse as the people that work here. If you’re
ready to play your part, you’ll be richly rewarded too.
Chapter
2
HR Practices of Selfridges
HR Management in the 21st
Century: Challenges for the Future
The
modern business cannot effectively operate in the business world if the labor
force is not well equipped with the latest technology and techniques. This is
the responsibility of the human resource manager to properly train the work
force and to achieve competitive advantages of business in 21st
century.
There
are various other issues within which
the modern business operates include the
organizational environment, the ethical and Environmental challenges,
globalization, economic and political structure, employers and employees’
issues, technological innovations and so on. The following are the challenges
faced by Selfridges & Co.
Environmental: At Selfridges, being environmentally
responsible means long term thinking about improving their energy efficiency,
sourcing sustainably, managing waste and minimizing the direct impact on
natural environment.
The Leadership role: The team leader role at Selfridges has
been redefined to build more effective communication. The senior management at
Selfridges believed that the improvement to performance and attitudes were due
to the changes in team leader role. The leader’s influence on the workforce
they exercise during work. The research reveals the result that the commitment,
high performance and work behavior are directly influenced from the first line
manager’s course of action they exercise at work.
The Impact of Information Technology on HR
Management: Opportunities and Challenges
Technology
has had a positive effect on internal operations for organizations, but it also
has changed the way human resource manager’s work. HRM professionals have
become the primary source of information in many organizations. Information can
quickly and easily be communicated via company Web sites and intranets, e-mail,
and messaging. Human Resource Information Systems (HRIS) allow HRM
professionals to better facilitate human resource plans, make decisions faster,
clearly define jobs, evaluate performance, and provide cost effective benefits
that employees want. Technology helps to strengthen communications with both
the external community and employees.
Cost decrease: Effects of Information Technology on HR costs appear in
several ways. First, it reduces costs of processes and works. Second, using
self service HR allows employees to perform their own work themselves directly.
Thus, HR professionals spend less time on routine tasks.
Saving Time: IT allows HR professionals to spent less time on routine
tasks and make easier to acquire and analyze information.
Increase in Efficiency: Intense use of Information Technology
standardizes routines. HR professionals may focus less on administrative
activities and more on interpreting information. HR professionals may spend
more time on other aspects of their jobs. Thus, HR professional can access more
information, respond the problems in a timely major from managers and employees
and evaluate the complex information more effectively.
Competency
Management: IT tools enable HR professionals both to reach larger
candidate pool and make decision making more objective and effective to employ
more relevant and competent candidates by means of decision making techniques
in the selection and recruiting process. Improving and shortening the
recruiting process increases competencies of incumbents and as a result quality
of works.
Recruitment & Selection Process
Performance & Reward Systems
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
Career Development and Training &
Development Program
They
want from an employee to get the most out of his/her role because they want to
make the most of his/her abilities. And as well as three months' induction and
continuous on-the-job training, one can also take advantage of a broad range of
programs and workshops, designed to help him develop his particular sales,
management or technical skills.
All
Sales Associates enjoy weekly training sessions, focused on delivering
excellent customer service. As a Manager, one can explore one’s potential
through a range of development workshops, designed to build world-class
leadership skills. Furthermore, if his role requires a professional
qualification, the authority will be happy to talk to him about financial
support.
At
Selfridges, your career is what you make it. Selfridges strongly believe that
every day their reputation rests on their employees shoulders. So if someone
has the talent, they can guarantee that they will offer his/her the opportunity
to develop.
Financial Budget of HR
Selfridges is very much concern
about its HR activities and its productivity is closely related to financial
assignment of the total budget. To monitor key statistics as staff turnover, to
have the information that will allow managers to react immediately to
unpredicted problems, or plan for cyclical events such as peaks and troughs in
retail labor trends.
Based on this Selfridges
introduced a ‘back to basics’ two-phase, 18-month action plan, although the
plan was ambitious, but very effective .the plan is about laying down solid
principles and practices, while also getting some quick wins. to ensure Selfridges
could deliver the best talent, and build the right mechanisms so that line
managers could develop the skills of existing people, and help them feel
valued. The plan was not about quick fixes, but about investing in the
long-term future of the company.
Selfridges provide a salary which is 5%
more than the market. The hourly salary rate of a sales associate is 7.60
pounds and hourly rate of a sales assistant is 7.27 pounds. Selfridges also
provide the following benefits for their employees:
·
Generous
holiday entitlement
·
Extremely
generous discount throughout the whole store
·
Contributory
pension scheme
·
Life
cover
·
Long
service awards
·
Performance
related incentives
·
Discount:
up to 35% off shopping in our stores.
·
Commission:
team members can earn up to 2% on everything they sell.
·
Pension:
a Defined Contribution scheme provided by Aviva.
·
Bonus:
For managers and Head Office team members.
·
Life
Assurance: free, for all Selfridges team members.
·
Ticket
Loans: interest free season ticket loans.
·
Childcare
Vouchers: savings on childcare of up to £
·
Gym
Membership: the best deals so our teams can join a gym close to where they live
or work.
·
Triage
& Rehabilitation: physiotherapist, osteopath or chiropractor.
·
Cash
Plan: money back towards their healthcare costs
·
Eye
care: cost of having eyes tested and/or for glasses for computer
·
Cycle
to Work: the scheme offers the opportunity to hire a bicycle and safety
equipment.
·
Private
Health Cover: For managers they offer private health cover with BUPA.
Health & Safety Issues
and HR Ethics
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.
Selfridge’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.
Recommendation
There
are very poor cross-department communication, concession partners treated
poorly, long hours that change with little notice, poor work life balance are
some common cons that need to be concentrated and the authority should take
necessary steps to prevent these. The adequate training for every staff is
mandatory as it is related with selling luxury goods. The listening to own
staff and learning from them are other important prerequisites for Selfridges. The
integrity and honesty from the authority is a must. Long working hours is
another drawback for Selfridges which needs to be solved efficiently.
Chapter 3
HR
practices of Primark
Primark is a
brilliant and unique clothing retailer organization originated and
headquartered in Dublin, Ireland. Its UK operations are registered in England
and Wales. Primark is a subsidiary of international food; ingredients and
retail group Associated British Foods. Primark was first opened by Arthur Ryan
in June 1969 in Mary Street, Dublin under the name Penneys. Today operating in
more than 305 stores all over the world along with Europe and England. Success
in Ireland led to expansion to the United Kingdom, and the company opened a
large store in Belfast City Centre in 1971 and one in Derby, England, in
1973. The company could not use the name "Penneys" in Europe
outside Ireland because J. C. Penneyhad
the name registered. The name "Primark" was then invented to use
outside Ireland. Primark opened its current international headquarters in 2015
in a redeveloped Dublin building, Arthur Ryan House, formerly Chapel House.
HR
Management in the 21st Century: Challenges for the Future
Primark needs to establish a safe culture full of diverse
people to exaggerate innovation and new ideas by managing the culture with so
many diverse minds and putting across the cultural values. Since organizational
culture is an important factor to attract the new talent therefore HR manager
has to put in a lot of hard work and efforts to develop a successful
organization structure in Primark to be the market leader.
The Impact of Information
Technology on HR Management:
Opportunities and
Challenges
Primark has a helpful
outlook toward IT and HR management. For handling HR issues it utilizes
Informational Technology. Widespread uses of IT minimize the unnecessary works
and helps to achieve efficiency of HR professionals. It also reduce HR
professionals time of work and helps to
gather information easily. Training and
learning become more effective. Development of IT makes communication so easy.
Hr professional can contact with supervisor, employee and also call meeting
geographically. It reduces cost of work and processing. Practicing of self-service technology decrease the
processing cost of HR. Cost of staffing,
staffing cost, increasing hiring efficiency , employee turnover reduce for
E-selection and e-recruiting.
Particularly in the HRM
department of Primark, it can contribute by minimizing lot of redundant works
and achieving efficiency through extensive use of technology by the proper use
of specific technology. Others factors
could be Online Recruitment, Global Staffing and Enhance Customer
service.
There are some
challenges of maintaining ethical standards globally, partnership termination
with other over the world retailers who does not have the intention to follow
online regulation and online recruitment system should be informative and easy
to access.
Recruitment & Selection
Process
Primark has a multi-dimensional
recruitment and selection process of their own and job vacancies are being
advertised through multiple ways including in store postings, Job Centre
advertisement and vacancies over the internet. Primark has opened a new
addition to provide the opportunity to the interested employee all over the
world focusing more on internet related recruitment and selection process. With
the current passage of success, Primark has made the recruitment process more
transparent and easier to access. Also they have Internal Vacancies in office notice board, monthly newsletter,
company's internal website and Existing employee. External Vacancies in company website, newspaper, direct store
advertisements and vacancies in there.
Performance & Reward Systems
Primark
rewards its staff and employees in different ways. Their salaries are
competitive and subject to and subject to annual review. They provide structured training and development
program.
They provide promotional opportunities for everyone.
They contribute
pension scheme, childcare Voucher scheme, and
competitive annual leave entitlement, health
insurance, bonus scheme, flexi-time scheme for certain head office functions
and variety of shift patterns available to suit your lifestyle.
Career Development and
Training &
Development Program
Primark have a world class Management Development Program to help
build your career at all levels. Whether you’re in our stores or head office
they aim to build on your talents and skills during your amazing career journey
with them. Primark encourage ideas, team spirit and passion across all
our functions.
As a new employee in any role with Primark, you will be given
a structured induction program to welcome you into your new role and team.
Primark then offer various programs to either
assist to you to become a member of management, or to develop you further in
your role. Their development programs start at all levels from entry level
through to senior leadership programs.
Primark advertise promotional opportunities within the business to our existing employees, it’s something we’re really proud of and it shows we’re committed to your development.
If you join Primark, you’ll be encouraged to play an active part in self-development where you will be given ownership of your career with the support and guidance of our experienced managers. Primark will give you the tools and resources; all they need from you is dedication and enthusiasm!
Financial Budget of HR
Falling
profits across Associated British Foods' (ABF) operations have been rescued by
booming sales at its budget retailer Primark.
ABF
said in its latest trading update that the strength of the pound had cut its
profits by some £30m. It has also been hit by the falling price of sugar.
But
Primark sales are expected to have risen some 13% over its last financial year,
which ends on 12 September. The retailer contributes more than half of ABF's
annual profit.
Much
of the growth has come from opening new stores in the Netherlands, Germany,
France and Spain.
The
company said that all stores that had opened in the last 18 months had
"very high sales densities", while France was its most successful new
market this year.
Primark
is preparing to open its first US store in the historic Burnham building in
Boston on Thursday and another near Philadelphia before Christmas.
It
will have opened almost one million sq ft of selling space over the last 12 months,
bringing its total to 352 stores.
Parent
company Associated British Foods (ABF) put the chain's success down to its
rapid expansion after several new stores were launched last year.
There
are now 352 Primark stores covering nearly 10 million square feet of selling
space across nine European countries - with the company now hoping to launch in
the U.S.
The retailer said: 'Primark has a strong consumer following in nine countries in Western Europe. After extensive research it has been decided to take the concept to consumers in the USA.' Primark's expansion in the UK has been focused on increasing selling space in major cities, with the opening of its second store in London's Oxford Street and extensions to shops in Newcastle and Manchester.
Other
benefits include structured training and development programs, promotional
opportunities for everyone, contributory pension scheme and childcare Voucher
scheme. Primark
offer a variety of benefits like Competitive annual leave
entitlement, Health insurance (dependant on the role/level/function), Bonus
scheme (dependant on the role/level/function) and Flexi-time scheme for certain
head office functions.
Health & Safety Issues and HR Ethics
Since 2011 we have partnered with (BSR)
Business for Social Responsibility, a global non-profit organization, local
partners and our suppliers on the HER health (Health Enables Returns)
initiative. HER health providers - health education and access to healthcare to
women working in the factories that make Primark’s product.
Women make up about 80% of the workers
that manufacture clothes for Primark. In low income countries women often lack
access to adequate healthcare and the knowledge they need to look after their
own health. Common issues include poor pre and post-natal care, anemia, the
risk of infections and illness including HIV / AIDS, hepatitis B and C, and
tuberculosis.
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
factories. A fire safety expert from the Bangladesh Fire Service worked with
them to provide guidelines which they have used to roll out their training
program which all factories receive before commencing work.
To
ensure that the safety requirements are communicated effectively Primark have
worked in collaboration with a local NGO SHEVA to produce training leaflets for
workers. Primark and DFID join forces to improve the wellbeing of garment
workers in developing markets. Primark has announced the start of a new
partnership with the Department for International Development (DFID) to improve
working conditions for garment workers in developing markets.
The
partnership will combine the presence, networks and expertise of both
organizations to improve the health and wellbeing of local workers, bolster
national economic development and help alleviate poverty in five of Primark’s
key markets which DFID also works in: Bangladesh, Pakistan, Burma, Ethiopia and
India.
Recommendation
Primark has set up its HR
policies according to UK labor laws & focus on best HR practices in the
industry to improve motivation level. But some of the factors may help them to
be more transparent and friendly to the job market around the world. They need
to act friendly when they are selecting and screening for the candidate or
recruiting. They should launch more cross cultural training program to avoid
cultural adoption problem and should include more training program like
simulation or on the job training program. Interview questions should have
direct structure related to behavioral and stress as most of the employees has
to deal directly with its customers.
Chapter 4
HR
Practices of Sainsbury’s
Sainsbury's
was founded in 1869 by John James Sainsbury and his wife Mary Ann Sainsbury in
London and has grown to become one of the UK’s largest retailers. From our
research we found that today Sainsbury’s operates over 1,200 supermarkets and
convenience stores and an online grocery and general merchandise operation. It
also has two property joint ventures with Land Securities Group Plc and The
British Land Company Plc. Sainsbury’s Bank provides a range of quality banking
and insurance products. In 1994 Sainsbury’s became Founding partner of
FareShare community food donation program and in year 2000 they introduced Be
Good To Yourself range – over 175 products adhering to strict nutritional
standard. In 2010 Sainsbury’s was the first ever (and still only) food retailer
to be awarded Gold accreditation by Investors in People. Their most recent
achievement is Sainsbury’s was named as one of The Times Top 50 Employers for
Women in 2014. Sainsbury's is the second largest chain of supermarkets in the
United Kingdom with a share of the UK supermarket sector of 16.9%. Founded in
1869 by John James Sainsbury with a shop in Drury Lane, London, the company
became the largest grocery retailer in 1922, was an early adopter of
self-service retailing in the UK, and had its heyday during the 1980s.
HR Management in the 21st
century: Challenges for the Future
There
are many factors contributing to HR managers functions of the Sainsbury and
these activities are constantly changing. The most of the challenges and issues
which are being faced by the HR of Sainsbury in 21 st century are workforce diversity, Organizational effectiveness, change
management, globalization, leadership development, E- commerce,
technology, health and safety, learning and development, recruitment and skill
labor, succession planning, compensation, retention of the employees, multicultural
work force, retrenchment of the employees, change in the demand of the
government, ethical consideration of the organization which may directly or
indirectly affect the organization competitive advantages. In this modern
business world, markets have become more challenge where both the domestic and
foreign competitors try to capture as maximum market shares as possible.
However,
they have no value without the human resource because knowledgeable and skill
workforce facilitates a company that will make competitive advantage over
other. Therefore, all the HR Managers make several strategies to develop and
retain such human resource because human resource is the resource which makes a
35 organization successful in the field of globalization. The human resource
functions of the Sainsbury in the 21 st
century are human resource planning, job Analysis design, recruitment
and selection, orientation and
induction, training and
development,
promotion/transfer/termination, compensation and remuneration, motivation,
welfare, health and safety, industrial relation and maintenance & equal
employment. In order to manage such diverse human resources effectively,
business organization adopt and make the policies and practices according to
the culture and environment. HRM needs to customize this change by ensuring
that the organization has the right people with sufficient knowledge, desire
skill and abilities to build such culture in the organization which effectively
contribute and enable the organization towards change.
Impact of Information Technology on HR Management
Opportunities and Challenges
The
Internet has opened up the job market, extending the talent pool to almost
every nook of the globe. In the 21st century, HR professionals recruit
candidates from various countries who speak different languages and practice
customs that may be unlike those of the company's local employees. This brings
about changes to typical HR policies.
Through
the technology Sainsbury’s now is doing their recruitment, assessing, and
selection of new employees which saves time and cost a huge.
Technology
has changed the business world many times over.
In the Information Age, the advent of computers and the Internet has
increased that impact significantly. Many businesses cannot even function
without the use of computer technology. This impact is seen in nearly all areas
of business, including human resources, where technology continues to have a
significant impact on HR practices.
Electronic
surveillance of employees by employers is an issue that pits an organization‘s
desire for control against an employee‘s right to privacy. The development of
increasingly sophisticated surveillance software only adds to the ethical
dilemma of how far an organization should go in monitoring the behavior of
employees who work on computers.
Recruitment and Selection process
The
internal recruitment in Sainsbury involves the recruitment team first looking
at the Sainsbury Internal Talent Program (SITP). This Program allow all current
employee of Sainsbury who are either looking for move within the same department
or seeking a more higher level position in form of promotion. However, if there
are no positive responses from any employee under the Sainsbury Internal Talent
Program, the vacancies are now officially advertised on the intranet for the
entire employee to see and apply. During this stage, there is a timestamp such
as submission of application deadline date. Furthermore, Sainsbury also use
external recruitment process to advertise their vacancies most of which are
done on the internet and Sainsbury’s website for their managerial position
while others are done using various other means such as advertising on local
papers, job centre and in their stores.
The
first method that Sainsbury‘s use to collect curriculum vitae‘s (C.V) and
letter of Applicant.
Then,
Sainsbury will shortlist candidate. This process is done by recruitment
manager. This shortlist of candidate is done to meet the requirement of the
company that they are looking for, right person for the right job.
Then
Sainsbury conducts Interview stage. Interview is the main stage of selecting
applicants. A number of planned question are designed to discover candidates
knowledge. An interview allows candidates to represent their skills and
knowledge for the selection. It will get to know for the interviewer who is
good at paper and those who have communications skills.
Suitable
person who best suit according to the company requirements will be selected for
the job.
Performance and Reward Systems
According to
colleague performance review (CPR) form (which is included in appendix),
Sainsbury’s has established a balanced scorecard that includes business key
indicators like Sales, MCM (Mystery Customer Measure), MAC (Mystery
Availability Check), Absence, Talkback, Turnover, Waste, Shrinkage, Labor Cost
etc. Performance Management is very important at Sainsbury's. Various methods
are used at Sainsbury's to know how well individual employees manage their
responsibility and for the managers to be able to observe how well they are
carrying out. Performance monitoring offers information which is valuable for
identifying future training or promotion opportunities and areas where
inadequate skills or knowledge could be judged as 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 action. Sainsbury’s considers
employee reward as a strategic issue. It plays a key role in Sainsbury‘s
business objectives in terms of being able to attract the right employees to
the organization, retain their services and further develop these talents into
vital assets for the organization. Sainsbury’s rewards employees for their
value that is created at work.
Career Development and Training
& Development Program
The
two training methods mentioned above will best suit the UK retail giant
Sainsbury’s. The organization is well acquainted with its training structure
and the employee support has enabled the organization to have much improved
employee performance qualities. The convenient store provides the employees
increased work experience. The cultural support increase value integration of
the training programs and Sainsbury’s has been able to develop increased
employee relationship to their management. Such strong training support has
helped the organization go through turbulent times of toughness and low
performance levels.
Financial Budgets of HR
More customers
than ever chose to shop at Sainsbury’s in the first half, responding to our clear
focus on quality, price and innovation, and food transactions grew ahead of the
market. Positive momentum across the business: 70 new and improved food ranges;
112 Argos stores open in Sainsbury’s; exceeded cost savings target and will now
deliver £540 million over three years ending 2017/18. Continue to be
competitive on price; customers don’t have to wait for a promotion to get good
value. Strong growth in Groceries Online, up 7.2% and Convenience, up 8.2%. General
Merchandise growing market share in a challenging market. Our clothing business
continues to outperform the market, with 6.8% sales growth. Continued progress
at Sainsbury’s Bank, well-developed plan to deliver at least £500 million in
cost savings over three years from 2018/19.
Annual
bonus relates to performance during the financial year, paid in May
following the relevant year-end. The Long-Term Incentive Plan value
relates to the Future Builder award vesting in May following the end of the
relevant financial year, which is the third year of the performance period. 50
per cent of the shares are released in May after the end of the relevant
performance period and the balance one year later.
Health & Safety Issues and HR
Ethics
The
HR of Sainsbury has a safety policy. Safety policy is a legal requirement and
the policy signifies the health and safety of employees. The actions of the key
members of staff are responsible for carrying out the policy. The policy will
include arrangements of training and instruction and company‘s rules and
emergency. This safety policy will be signed by the senior manager and it is
revised regularly to be kept up to date.
Laws
require all store managers and employees who work there to comply with the
health and safety legislation. Human resources of Sainsbury record all
accidents in an accident book to see where improvements need to be made. HR of
Sainsbury also conducts training session for their staffs for health and safety
jobs which include roles being health and safety officers, safety committee
meeting holders etc. Customers are also accounted into the health and safety
acts for Sainsbury‘s HR such as Sainsbury provides wheelchair access, lifts,
helpers etc for disability needs, Sainsbury regularly car parks for trolleys
causing hazards, etc, Sainsbury keep clear customer fire exit at all times,
Sainsbury provides shelves for all stacks at the lowest, put warning signs that
can be always visible and heard, Sainsbury banned smoking, drinking and eating
in all stores, Sainsbury keep substances and solvents in unreachable areas for
children‘s safety (3rd or 4th level shelves) and Sainsbury check toilets every
half an hour for staffs and customers .
Recommendations
The HR management department at
Sainsbury’s control the workforce and see how they perform. The HR department
gets the workforce and main problem after that is keeping them happy. Rivals
may try to recruit Sainsbury’s existing employees by offering them better pay
and promotion. The HRM department at Sainsbury’s should be more alert of this
problem and can offer their employees more pay and promotion in order to keep
them. Since technology has changed each and everything with great extent,
modern technology should be introduced and purchased by the organization. HRM
of the Sainsbury’s should implement proper training for the manager to cope
with the issues of globalization. HR of Sainsbury’s must develop the ability to
compete in the international market and should make broad strategies which help
to adjust employees in global organization. The HRM of the Sainsbury’s should
analyze labor turnover rate and absenteeism rate. High absenteeism can cause
lack of commitment, poor motivation.
Compare
& Contrast HR Practices
Among
Marks
Spencer, Selfridges, Primark and Sainsbury
Company
|
||||
Challenges
|
Facing
tough competition
Maintaining
e-commerce sales
|
Higher
employee turnover rate
|
Model
modification and corporate responsibility
Maintaining
employee dissatisfaction
Quality
assurance
|
Quality
assurance
Customer
satisfaction
|
Impact
of Information Technology
|
Transformation
program
|
Advanced
technological trainings
|
Doesn’t
follow online retail
|
IT
based advanced HR policy
|
HR
management
|
Poor
organizational structure, autocratic leadership. Became follower of
competitors in executing new HR policies.
|
The
HR management of Selfridge emphasizes upon the customer satisfaction through
the motivated employees.
|
Mostly
focused on traditional administrative and compliance activities.
|
HR
excellence Award. HR is now seen as part of
the business team, playing a crucial part in the overall turnaround
|
Recruitment
and Selection
|
Online
based assessment test, Graduate recruitment.
|
Standard
online based assessment test.
|
Standard
online based applicants face problem while applying
|
Online
based graduate programs, Succession planning
|
Performance
and Reward System
|
Bonus
paid every quarter, Advisor of the month, salary, Sacrifice scheme, Health
& wellbeing pension
|
Generous
holiday entitlement, contributory pension scheme, Life cover Long service
awards, Performance related incentives.
|
Pension
scheme, Annual Leave, Health Insurance, Bonus scheme, Poor bonus rewarding system.
|
Percentage
bonus, Contributory pension schemes, Investment in shares, Loans for public
transport tickets, Grants for bicycle purchase
|
Training
and Career Development
|
Focus
on the training, learning program, and development feedback. 360 training program
but short on advanced level training.
|
Advance
T&D
|
Provides
different types of training promotion opportunities and encourages for ideas
|
Skill
& Job
Knowledge
Training
Behavioral
training
Leadership
training
Diversity
training
|
Health
and Safety
|
Different
types of awareness program and individual learning
|
Good
maintenance
|
Women
and Child Health concern and empowerment of worker
|
Good
maintenance
|
Financial
Budget of HR
|
Payment
of pension funds creates internal conflicts.
|
Good
|
Good
|
Good
|
Conclusion
The basic role of HR for these four companies, Marks &
Spencer, Primark, Sainsbury and Selfridges, should be to strengthen the
organization's ability as they focus their attention on providing an amazing
shopping experience for their customers. To retain their reputation, employee
development strategy is essential. As we already know proper recruitment and
selection plays a major role in selecting the right person for the right job.
They should use the process of talent acquisition to discover the sources of
manpower to meet organization’s staffing program and conduct training and
development to improve the employee skills and knowledge so that they perform
their work efficiently. This employee focused, engaging and adaptive system
means higher retention rate of the employees. Marks & Spencer, Primark,
Sainsbury and Selfridges all of them follow an Equal Employment Opportunity policy.
They also offer effective career development programs for every employee. They
formulate health and safety for their employees and ensure a dynamic culture
for learning and implementing their knowledge and have proper communication
with the HR management. Accordingly we think these four gigantic retail outlets
are wonderful places to work.
References
David A. DeCenzo & Stephen P.
Robbins, Fundamentals of Human Resource
Management (11/e) John Wiley & Sons Inc.
Gary Dessler & Biju Varkkey, Human Resource Management (13e)
http://en.wikipedia.org
http://www.theguardian.com/business/marksspencer https://static.wcn.co.uk/company/marksandspencer/stores/ca.html
http://corporate.marksandspencer.com
http://en.wikipedia.org/wiki/Selfridges
http://selfridgescareers.com/
http://www.primark.com/en/careers/come-join-us
http://www.primark.com/en/our-ethics
http://en.wikipedia.org/wiki/Primark
http://www.theguardian.com/business/primark
http://en.wikipedia.org/wiki/Sainsbury%27s
https://sainsburys.jobs/
http://www.theguardian.com/business/marksspencer https://static.wcn.co.uk/company/marksandspencer/stores/ca.html
http://corporate.marksandspencer.com
http://en.wikipedia.org/wiki/Selfridges
http://selfridgescareers.com/
http://www.primark.com/en/careers/come-join-us
http://www.primark.com/en/our-ethics
http://en.wikipedia.org/wiki/Primark
http://www.theguardian.com/business/primark
http://en.wikipedia.org/wiki/Sainsbury%27s
https://sainsburys.jobs/
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