• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

HRM in Marks and Spencer

Extracts from this document...

Introduction

People Management and Development BSPG204 Module Tutor:Dr. Dennis Wright HRM in Marks and Spencer Words Count:2,056 Award Title: MGM (2003-2004) Student: Hao Chen (Colin) Registration Number: 03904301 19/01/2004 HRM in Marks and Spencer Introduction and Background Marks and Spencer, established 1894 in Leeds,UK and as one of the most recognized brands in the UK and worldwide, had been hugely successful in terms of both profit and market share until the late 1990s. However, after that it suffered a reversal in its fortunes. Correspondingly, its organizational structure and culture also underwent certain transformation. The set of dramatic changes include changing top executive and their managerial philosophies. Now, it seems to be on the road to recovery after these radical changes. This article focuses on human resource management in M&S, analysis ranges from its traditional paternalism culture to new HRM practices. Paternalism & Unitarist Characteristics Under paternalism, employers and employees view the company as a family. It's different from traditional manufacturing culture. The separation between the shop floor and management and feelings of 'them and us' are what might be expected within a traditional manufacturing culture, where the employment is full-time, long-term and relatively stable and the typical workplace is a large firm or store. The corporation is a stable sovereign organization with a clear division of labors and everyone abides by the social contract. Similarly, Unitarist deems the business organization as a team united by shared interests and values with senior management as the sole source of authority and focus of loyalty, conflict is seen as irrational and unnecessary. ...read more.

Middle

Further, their approach is also rely on and highly trust the quality of British suppliers and M&S play as a bulk buyer who even buy up all the stock of specific suppliers, whereby conducting mass-selling to earn profits. In addition, as the Channel 4 programme stated at 25th Feb,2001 that operations of the organization within M&S is focused on short-term strategy rather than long-term one and they were firmly placed in the 'middle ground', emphasize getting generalized view of the market instead of trying to target various segments market. The overall strategy is risk-aversive and traditional. Hence, they are adapting typical cost-reduction strategy, meanwhile, with somewhat emphasis on quality aspect. In general, cost reduction pursued through increasingly using of part-time employees, subcontractors, work simplification, measurement procedures, automation, work rule changes, job assignment flexibility. Therefore, according to this competitive strategy, the expected employees behaviors should be followed the key cost-reduction strategy characteristics illustrate as follow: Low-cost leadership strategy (Greenbury) Needed Employees Behaviors Human Resource Practices Relatively repetitive and predictable behaviors Relatively fixed and explicit job descriptions A rather short-term focus Narrowly designed jobs Primarily autonomous or individual activity Narrowly defined career path, unitarism Modest concern for quality Externally, reliable suppliers; internally, QC function High concern for quantity of output Lean production, JIT system, fully participation Primary concern for results Minimal levels of employee training and development Low risk-taking activity Short-term, result oriented performance appraisals Relatively high degree of comfort with stability Close monitoring of market pay level 2. ...read more.

Conclusion

In addition, 'excessive fit' can be disadvantageous to gaining competitive advantage since it can make a company inflexible and incapable of adapting quickly to the external environment. Recalled that when Greenbury insisted on its cost-reduction strategy and its quality criteria, the environment of the whole market has gradually changed. Competitors targeted at niche market and adopted differentiation strategy to attract and gain credibility among numerous consumers, whereas M&S still keep its traditional or risk-aversive way to do business. Recommendation Other HR strategies suggestions for M&S: At individual level, employees' motivation can be stimulated through appropriate job design and rewards. Also, emphasizing employees' participation or empowerment, and it could be reinforced through encouraging front-line staff to solve customer problems on the spot, without constant recourse to management approval. At organizational level: Development through changing the paternalism structure and corresponding traditional culture to a culture of the individual and of teams. The organization should focus on building its growth valued (such as brand revitalized by Vandervelde) and rewards excellence. Meanwhile, strategy-focused organizations like M&S can apply the balanced scorecard to align their employees to their strategy. This strategy can be implemented through communication and education, personal and team objectives, and incentive and reward systems. They should extensively use self-managed teams and decentralization. Also, paying attention to reducing status differentials and encouraging willingness to share information. Finally, when individuals understand how their pay is linked to achieving strategic objectives, and set personal objectives to met and help to achieve the strategic objectives, organization's effectiveness will expect to be achieved. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Report: Type of ownership of J-Sainsbury

    a product or service, in return the customer gets the products or service which he/she has chosen. Also the customer receives an invoice, which is called a receipt. This is to prove of any products or service the customer has bought has been paid.

  2. Analyze and evaluate the strategic decisions made by Marks and Spencer (M&S) in different ...

    M&S has to deal with the local threats and face the challenge of globalization at the same time. Literature Review Theories and Concepts Decision Making Process The decision-making process is an attempt to eliminate guesswork and bias by following a scientific approach based on: � setting objectives � gathering data

  1. Produce a case study comparing two business organisations, investigating the extent to which each ...

    year Tesco adopts a national charity to be the main focus for staff fundraising activities. This year the Tesco Charity of the Year is Barnardo's. During 2003 Tesco staff throughout the UK will be taking part in events and activities to raise funds for the charity, which will receive a 20% "top up" from the Tesco Charity Trust.

  2. Analysis of a Contract Specific Organisation

    The exact nature of this training will be established in consultation with the client, when the contract is awarded. Cleaning ( Design Clean) As part of the TUPE and mobilisation process an assessment of each member of staff is made.

  1. A REPORT INTO HUMAN RESOURCE MANAGEMENT AT SAINSBURY'S

    In February 2001 Sainsbury's became the first major food retailer to achieve corporate Investors in People recognition. This followed a three-year programme involving 450 assessments by 45 assessors covering 13,500 Sainsbury's colleagues.

  2. This is a report on Marks and Spencer a well known retail company in ...

    They do this by creating exclusive products for the customers. The company aims to put the customer first in everything they do and offer the highest values of customer care in order to satisfy them and with the customer satisfied, this will bring in profit for the company depending on whether they break even.

  1. Managing Human Resources in Marks & Spencer.

    The objectives of Human Resource Management 1. As with all departments, the overall role of the Human Resource Department is to contribute towards the company objectives. 2. 'The bottom line in Human Resource Management is profitability and financial performance' Source: Fernie & Metcalfe: London School of Economics 3.

  2. The business I have chosen to do this assignment is Marks and Spencer. The ...

    Making profit and Surviving in business. 5) Expanding their business. 6) make sure the customers are satisfied with their purchase. Meeting customers needs They must find out what customers like and dislikes and the products that customers like they must provide the product to their customer.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work