Managing Human Resources in Marks & Spencer.
REPORT TITLE: MANAGING HUMAN RESOURSES IN MARKS & SPENCERS
Terms of Reference
I will be producing a report on how Mark and Spencer manages human resources, the report I will carry out will be a full detailed reports looking at the process of the human resources is carried out by Marks and Spencer.
Procedure
I will carry out my research by using the Internet for information on Marks and Spencer
2 I will also be using the Heinemann AVCE Business book.
3 I will visit the Marks and Spencer stores in my local area to find out how they operate in the human resources function.
Introduction
This report has been written in order to show how successfully the company - 'Marks and Spencer' is in running its human resources department in order to meet its business objectives. The report has been divided into four parts to ensure a comprehensive coverage of Marks and Spencer has been researched and also to give the report a main structure of the human resources departments. Part 2 will be discussed in depth.
Part 1 = Planning
Part 2 = Recruitment & Selection
Part 3 = Training & Development
Part 4 = Performance Management
This unit provides an insight into how businesses recruit and manage their human resources. It shows that if businesses are to achieve their objectives, they must plan their human resource function so that they have the right number of employees with the appropriate qualifications and training to meet the needs of the business.
Successful human resource management requires that a business takes account of changes in the labour market and employment legislation to keep its employees motivated, to monitor their performance and to help them continuously develop through additional training.
.0
What are human resources?
Summary - Human Resource Management is a much broader term than just simply 'Personnel Management' as it encompasses the development of workers within a team that contributes towards the business's objectives. Accordingly, the Human Resources Management department incorporates the Personnel department functions and develops them. The role of HRM is to enable workers to contribute to their maximum efficiency towards the objectives of the business. In order to do that, a variety of functions are incorporated within the overall functions of Marks and Spencer Human Resources Manager. In this part we will discuss:
* Definitions
* The objectives of Human Resource Management
* Human Resource Management functions
Definition
'Human Resource Management concerns the human side of the management of enterprises and employees' relations with the firms...'
Source: Graham & Bennett 'Human Resource Management' (7th edition)
As workers become more empowered, it is argued, there is less need for the management of relationships. As each worker becomes more responsible for their own quality of output, then there is less left for the Personnel department to do.
This empowerment is not just the HRM showing his acquiescence to the needs of the workers as they struggle against the boredom of work. Rather it is the constant pressure to cut costs, improve quality and productivity. With a reduction in the need for supervision there are thus fewer needs for supervisors - and hence there will be a cut in wage costs.
With the reduction in middle managers there has been a shift in power, a disempowerment from the Human Resources professionals to the line managers. Policy related issues will go to directors, but the team leaders of autonomous work groups may take day-to-day decisions.
The objectives of Human Resource Management
. 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. 'To help a company achieve its business strategy by maximising the performance of its employees. Better management-employee relations are not necessarily a sign of success. The assumed validity of the notion of management-employee relations is indicative of the continued prevalence of command-control management style. Individuals empower themselves when they recognise the self-interest in the job they are performing. Individuals do not take a job just to further the business goals of the company - they take a job to further their personal GOALS. Only when the two coincide can a company hope to maximise the commitment of its people and thus facilitate the attainment of its business objectives'
Source: Tom Barry Managing Director of Blessing/White Performance Improvement, Windsor)
Responsibilities of the human resources functions
Human Resource Management functions
.1
Motivation
Not only must workers work as hard as possible, but they should also be happy in their work. Happiness often stems from security; without this security, ill health will result. According to a report by the Joseph Rowntree Foundation ('Job Insecurity and Work Intensification') in July 1999, workers' fears of losing their jobs are at their highest level since the Second World War, and the stress is taking its toll on their physical well being.
According to the study, two thirds of employees said they regularly worked overtime. 30% of full-time male employees claimed they worked more than 48 hours a week. The cause of the stress was staff cutbacks. The same amount of work being done by fewer people leads to extra stress.
The report found that those admitting to the greatest feelings of insecurity were five times more likely to be in poor health. Supportive relationships between managers and staff relieve the pressure, which will in turn lead to better health. The Human Resources function in this case would not just be to try and motivate the workers but also to encourage Directors and below to be supportive of their staff. Such support would include improved communication and greater transparency in management decisions.
There are two basic theories of motivation; content theories and process theories. Content theories focus on what actually motivates people; they study the needs that must be satisfied in order for the employee to be motivated.
The need is either satisfied by an extrinsic reward (e.g. pay) or an intrinsic reward (e.g. recognition and praise). The Classical (Fayol), the Scientific (Taylor), the Human Relations (Mayo), and the Neo-Human Relations (Maslow, Herzberg, McGregor) schools of management thought are all content theories.
Process theories, do not concern the needs which must be satisfied in order to achieve motivation, but instead they are concerned with the thought-processes that influence workers' behaviour. There are two such theories:
.2
Expectancy theory:
This states that workers will only act when they have a reasonable expectation that their work will lead to the desired outcome. If they believe that they possess the ability and skill to achieve the goal, then their level of effort will be great and they will be motivated.
Equity theory:
This states that each worker will wish to receive a remuneration package (equal to their pay plus fringe benefits) in return for his or her efforts. Each worker will only be motivated if their remuneration package is seen to be fair (or equitable) in relation to the remuneration packages received by the other workers for their efforts.
Money Motivates
Frederick Taylor wrote in 1911 that workers are motivated mainly by money. So bonuses or piecework should link workers' pay to performance and perhaps.
.2
Abraham Maslow created the following "Hierarchy of Needs"
Theory
One of the many interesting things Maslow noticed while he worked with monkeys early in his career was that some needs take precedence over others. For example, if you are hungry and thirsty, you will tend to try to take care of the thirst first. After all, you can do without food for weeks, but you can only do without water for a couple of days! Thirst is a "stronger" need than hunger.
Likewise, if you are very very thirsty, but someone has put a choke hold on you and you can't breathe, which is more important? The need to breathe, of course.
Fig 1.0
Maslow took this idea and created his now famous hierarchy of needs. Beyond the details of air, water, food, and sex, he laid out five broader layers: the physiological needs, the needs for safety and security, the needs for love and belonging, the needs for esteem, and the need to actualise the self, in that order. Maslow's idea was that workers satisfy their needs from the bottom up. So the first things that motivate them are food, water, shelter, etc. Next they want security of employment, safety in the workplace, and so on. When those needs have been satisfied, people want to satisfy their social needs, so working in a team, for example, can motivate them. Once these needs have been met, workers want praise and respect, perhaps status. The top level is about being able to reach your full potential and be creative. In Marks and Spencer the employees will have basic needs, safety needs, belonging needs.
.3
Frederick Hertzberg
He looked at things slightly differently. He said that some things did not improve motivation if they got better and better, and only discouraged workers if those things were poor. He called these things "Hygiene Factors". Other things that do motivate workers he called "Motivating Factors". Any good manager knows that happy, satisfied workers will generally perform better than those who don't feel as satisfied. However, managers have always had differing opinions about what it takes to satisfy workers.
During the 50's and 60's, a man named Fredrick Herzberg during his research; he found that certain factors tended to cause a worker to feel unsatisfied with his or her job. These factors seemed to directly relate to the employee's environment such as the physical surroundings, supervisors and even the company itself. He developed a theory based on this observation, naming it the "Hygiene Theory."
According to his theory, for a worker to be happy and therefore productive, these environmental factors must not cause discomfort. Although the elimination of the environmental problems may make a worker productive, it will not necessarily motivate him. The question remains, "How can managers motivate employees?" Many managers believe that motivating employees requires giving rewards. Herzberg, however, believed that the workers get motivated through feeling responsible for and connected to their work. In this case, the work itself is rewarding. Managers can help the employees connect to their work by giving them more authority over the job, as well as offering direct and individual feedback.
.4
Douglas McGregor's Theory X and Theory Y
Douglas McGregor's theory X is very much the same as Frederick Taylor's view of what motivates workers. His theory Y is much more like Maslow and Herzberg's views because it says that workers will be motivated by responsibility and by being allowed making decisions. Two conflicting theories regarding the human motivation to work put forward by the US psychologist Douglas McGregor (1906-64), which have relevance in human resource management. Theory X is based on the premise that people are inherently lazy, dislikes work, and will avoid it if they can. They prefer being directed to accepting responsibility; their only use for creativity is in getting round the rules of an organisation. Because they are motivated to work only by money, they require coercion and tight control to make them function adequately.
Theory Y, on the other hand, assumes that people wish to be interested in their work and, given the right conditions, will enjoy it. Motivated by the wish to achieve, and to have their achievements recognised, most people will work to the best of their capabilities, creativity, and ingenuity. They accept responsibility and the rules of the organisation they work for, imposing self-discipline on their work, given accepted targets.
The generally accepted view is that if management follow Theory Y they will achieve better operational performance.
.5
Training and education of the workforce
Training will increase the status of the workers as well as their self-esteem. Universities are now in competition as A-level passes continue to rise. With the competition for standards come also a variety of courses
.6
The Human Resource Management (H.R.M) Process In M&S
Human Resource Management is the management of the people within Marks and Spencer, by recruiting, training and retaining employees with the necessary skills and competencies to perform their jobs effectively. H.R.M. was often referred to as 'Personnel' in the past, and it covers all the following areas:
) Human Resource Planning (H.R.P).
2) Recruitment and selection of new employees.
3) Training and development.
4) Performance appraisal.
5) Remuneration packages.
6) Disciplinary procedures.
7) Grievance procedures.
8) Health and Safety issues.
9) Looking after the employees' welfare.
0) Dealing with the termination of contracts of employment.
The recruitment and selection process commences when the business realises that there is a vacancy in the organisational hierarchy, which needs to be filled.
A job description needs to be written this outlines the job title, as well as the tasks and the responsibilities that will be covered by the successful applicant. Once this is completed, then a job specification needs to be written, this goes beyond a description of the job, and it lists the physical and mental attributes that will be desirable or essential for the successful applicant (such as the level of intelligence, their disposition and their interests).
The H.R.M. department will then need to write an advertisement for the job and to place it in a variety of media (newspapers, job centres, job agencies, the internet, radio, and internal notice-boards), in order to get as many people as possible to apply for the post. Marks and Spencer also shoe their vacancies in the store.
The advertisement will include the hours of work, the pay and fringe benefits, the job title, the relevant experience and qualifications that are required, and a contact name and address.
It is likely that the job will be advertised within the business as well as through external media. The advantages of recruiting from within the existing workforce include the fact that a shorter training and induction period is necessary, as well as far less time and money being spent on the whole process.
The H.R.M. department will then need to send out application forms to, and request Curriculum Vitae (CVs) from, all those people who write to Marks and Spencer expressing a desire to apply for the job.
It is vitally important that the application form is tailored to the specific post that is being advertised, as well as asking questions that are relevant, legal, inoffensive and essential. Once these application forms have been completed and returned to the business (often with a CV and a covering letter) then the short-listing process will ensue, this involves analysing the CVs and the application forms and deciding which applicants appear to be most suitable for the post. Once this is done and then the H.R.M. department will contact the successful applicants and ask them to attend an interview.
The interview process is very time-consuming but is, nevertheless, an essential factor in getting the 'right' person for the 'right' job. A good interviewer will have studied the job description, the job specification and the job advertisement before interviewing the applicants, as well as studying their application forms, CVs and covering letters in order to know as much information as possible about the applicants before the interview commences.
A good interview needs to be well structured, uninterrupted, and conducted in a friendly manner, with the use of open-ended questions, which will give the applicants the chance to talk openly about themselves. The interviewer must listen carefully to the applicants' comments and make notes as necessary.
At the end of the interview, the applicants must be given the opportunity to ask questions about the job and about the business, and then the interviewer must inform the applicants when they will be notified of the decision.
It is likely that applicants for a job will be interviewed by a number of people. This can be in sequence (i.e. the applicant will have one interview quickly followed by another) or it can be simultaneous (i.e. the applicant will be interviewed by a panel of people). Whichever method of interviewing is chosen, the purpose remains the same, to select and appoint the 'best' applicant for the job.
It is possible that Marks and Spencer may choose to use a variety of tests to complement the interview process, in order to measure the applicants' intelligence, their performance in certain scenarios, and their personality traits.
Once a Marks and Spencer has selected the most suitable applicant for the available post (often involving much discussion between the different interviewers), then he/she will be appointed.
This will involve the new employee being given a Contract of Employment, which is a written statement covering the terms and the conditions of employment (e.g. date employment commences, job title, pay, hours of work, holiday and pension entitlements), as well as the process for disciplinary and grievance procedures.
Once a new employee has been appointed to Marks and Spencer, it is likely that they will receive induction training in order to help them settle into the new job. This induction training covers the basics of the new employee's job, as well as the background details and the history of Marks and Spencer (e.g. number of employees and the range of products).
However, training is not limited to the new employees of a business. Training courses are likely to be targeted at all employees in the business at various stages in their career (e.g. management training courses, training on how to use new machinery and technology).
There are many reasons for the extensive use of training across the workforce of a business:
) Training can improve employee productivity.
2) Training can create a multi-skilled, flexible workforce.
3) Training can increase the levels of job satisfaction and motivation of the employees.
4) Training employees increases the chances of their promotion.
Training can be classified as either 'on-the-job' or 'off-the-job'. 'On-the-job' training involves the employees receiving their training at the place of work (using such techniques as work-shadowing, apprenticeships, and mentoring). 'Off-the job' training involves the employees attending courses away from their workplace (e.g. at local colleges, conference centres and universities).
It is also imperative that all training courses that are attended by employees are evaluated in order to determine if the training course provides value for money for the business. Asking the employees to complete short questionnaires and provide feedback to the H.R.M. department often carries out this evaluation.
The final role of the H.R.M. department is to make the termination of the employees' contracts of employment as smooth and efficient as possible. There are a number of different ways in which employees can have their contracts of employment terminated, including:
) Redundancy. It will be necessary at certain times (e.g. during a recession, or a decline in the industry) for a business to 'downsize' its workforce (make a certain proportion of them redundant).
This process could be done in several ways, voluntary redundancy (where workers opt for a redundancy package), compulsory redundancy, 'last-in-first-out' (where the most recent appointments are the first to be made redundant), or retention by merit (where the least effective employees are made redundant).
2) Retirement. At the end of their working-life, employees will wish to retire and stop offering their services to the business. In return, they will often receive a lump-sum payout, as well as both their state pension and their private pension.
3) Transfers and Resignation. This occurs when an employee leaves Marks and Spencer and transfers their services to another business (the employee may apply for a more senior job at another business).
4) Dismissal. This is where the employee is deemed to have broken their contract of employment, and told that their services are no longer required by the business. Fair dismissal can be on the grounds of sexual harassment, racial harassment, bad timekeeping, sleeping on the job, and destruction of business property.
However, if an employee feels that they have been unfairly dismissed (e.g. on the grounds of pregnancy, ethnic background, or union membership), they can apply to have the case heard at an industrial tribunal.
This is a small court that deals with claims of unfair dismissal and discrimination from employees against their (former) employers. If the employee is successful in claiming that they have been unfairly dismissed, then they are eligible for re-instatement in their previous job, as well as a financial award (to cover loss of earnings, and pain and suffering).
In all areas of the activities of Marks and Spencer, but especially it seems within Human Resource Management, the business must ensure that it abides by every piece of legislation, regardless of the stakeholder group which the legislation protects (e.g. employees and customers). The main pieces of legislation affecting the successful operations of the Human Resource Management department are:
) The Employment Relations Bill, 1999 (stating that employees who have been in employment with the same business for a period of one year have the right not to be unfairly dismissed).
2) The Employment Rights Act, 1996 (covering unfair dismissal, redundancy and maternity).
3) The Public Interest Disclosure Act, 1998 (covering employees who disclose confidential information).
4) The Health & Safety at Work Act, 1974 (covering working conditions and the provision of safety equipment and hygiene).
5) The National Minimum Wage Act, 1999 (making it illegal for employers to pay less than £3.60 per hour to its full-time staff who are aged over 21).
6) The Equal Pay Act, 1970 (stating that pay and working conditions must be equal for employees of the opposite sex who are performing the same work).
7) The Sex Discrimination Act, 1975 (stating that it is illegal to discriminate against an employee or an applicant for a job, on the grounds of their sex or their marital status).
8) The Race Relations Act, 1976 (stating that it is illegal for an employer to discriminate against an employee or an applicant for a job, on the grounds of their ethnic background).
9) The Disability Discrimination Act, 1995 (stating that it is illegal for a business with 20 or more employees to discriminate against an employee, or an applicant for a job, on the grounds of their disability).
1.7
Human Resource Planning (H.R.P)
Marks and Spencer have to plan carefully to ensure they have the right number of suitable employees for their needs. To do this they need a good understanding of the labour market in the areas where the company's branches operate. Marks and Spencer consider the effects of the following labour market factors for their human resources planning:
* Local employment trends
* Local skills shortages
* Competition for employees
* Availability of labour.
Human resources planning also involves looking at how labour is organised within Marks and Spencer. Marks and Spencer take account of a range of factors when making decisions about their internal staffing. The factors include:
* Labour turnover (stability index wastage rate)
* Sickness and accident rates
* Age, skills and training
* Succession.
On the next page shows a diagram that indicates the various stages in the Human Resource Planning process. The top-left side of the diagram is concerned with an analysis of the likely future supply of the right sorts of people, while the top right-hand side looks at the expected future demand for the right sorts of people. The human resources plan is concerned with ways of matching up these two sides. Firstly Marks and Spencer will examine the demand side before going onto look at the supply conditions.
Demand side
Marks and Spencer' demand for labour will depend on the plans the company has for the future, in particular the big plans, what many businesses refer to as 'strategic plans'. For example, a company may decide to increase its market share quickly and to do this it must review its competition. It may find that to be as good if not better than its competitors it could open a great deal more branches around the UK. This expansion would be the company's strategic plan. In order to support this expansion the company would need to recruit many more employees.
Forecasting the demand for human resources
Boots's demand for human resources must be estimated by analysing its future plans and by estimating the levels of activity within the business.
There are two main ways of forecasting demand:
* Management estimates
* Work study techniques
Management estimates
Managers of any business may be asked to forecast their staff requirements. They will do this on the basis of past, present and likely future requirements.
Work-study techniques
Over the years much work has gone into work-study. Work-study specialists work out how long various jobs take using available machinery and equipment. Provided they know what output/sales are likely to be, they can calculate the numbers of employees required and the hours they will need to work.
Supply side
If Marks and Spencer is to work out the supply of labour available the company must examine the numbers of people available to work how long they can work for, their ability to do the required jobs, their productivity (output per head) and other factors.
Human Resource Planning (H.R.P) is the process of forecasting the workforce requirements of the business for future years.
It looks at how many employees that Marks and Spencer will require in the future, as well as the type of employee that will be required (e.g. graduate trainees, skilled-manual and supervisors). H.R.P. also ensures that the 'right' employee is in the 'right' job, to ensure maximum efficiency and effectiveness of the workforce.
Clearly the process of H.R.P. requires that the business make estimates of the number of workers that it believes it will require at all levels in the business in the future. This can be done in a number of ways:
) Using past data (e.g. if the workforce has grown at 4% per year over the past 3 years, this trend may well continue).
2) Analysing the expected levels of customer demand and sales (e.g. more employees will be required if the number of customer orders is estimated to rise significantly).
3) Estimating the level of labour turnover. For example, if the number of employees that are expected to leave the business next year is 50 (due to retirement or transfers), then the business will have to recruit many new employees to replace those that are leaving.
4) The views of the management (the management are often in the best position to estimate the number of new employees that will be required in their department or division).
5) Expected changes in working practices. For example, if a manufacturing business is wishing to change its production technique from labour-intensive to capital-intensive, then it is not likely to require many new employees in the future.
It is possible that a business may decide to meet any requirements for employees at the supervisory and management levels from within the existing workforce. Promoting those employees who have already demonstrated their potential and effectiveness in their current posts can do this.
These employees have the advantage of already knowing about the systems and the routines of the business, but they would still require the relevant training and development in order to prepare them for their new, more senior positions.
Alternatively, Marks and Spencer may decide to fill these (and more junior) positions from outside the business.
There are a number of factors, however, that will affect the availability of external labour for a business:
) The rate of unemployment in the area.
2) The extent of the infrastructure in the area (e.g. price and availability of housing or availability of public transport).
3) Government incentives and subsidies (paying the training costs for the business).
4) The availability of workers with the necessary skills and qualifications.
5) The number of competitors in the area.
However, there are a number of problems associated with Human Resource Planning, including:
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There are a number of factors, however, that will affect the availability of external labour for a business:
) The rate of unemployment in the area.
2) The extent of the infrastructure in the area (e.g. price and availability of housing or availability of public transport).
3) Government incentives and subsidies (paying the training costs for the business).
4) The availability of workers with the necessary skills and qualifications.
5) The number of competitors in the area.
However, there are a number of problems associated with Human Resource Planning, including:
) Will the 'new' employees mix effectively with the existing workforce?
2) Changes in the external environment (e.g. a recession) could lead to the business having to make redundant several of the recently appointed employees.
It will always be difficult for Marks and Spencer to accurately forecast the number of new employees that it will require, because both the business-world and the internal requirements of the organisation are very dynamic.
2.0
Internal and external labour market information
Internal labour market
The internal labour market deals with Marks and Spencer looking to employ people within the business. They can be done by employees get promoted to higher positions or move to different stores. It can also plan to its workforce. Weather Marks and Spencer can meet its future workforce requirement from existing employees may depend on a number of factors. An example of this is when Marks and Spencer promote a member staff to a higher position.
2.1
External labour market
This is when Marks and Spencer look to plan to employ workers from outside the organisation. There are also local and national factors that have to be taken into account by Marks and Spencer when planning its external employee requirements. Marks and Spencer would be interested in the local unemployment rates. Unemployment is the internationally agreed definition of unemployment. The International Labour Organisation - an agency of the United Nations, recommends it. Under ILO guidelines, all people aged 16 and over can be classified into one of three states: in employment; ILO unemployed; or economically inactive.
Fig 1.1
This data is from the official national statistics UK site
Above you can see that the unemployment rate shows that, the unemployment is low.
Marks and Spencer would also look at the employment rates. Employment Statistics on employment tell us how many people are employed, the sorts of work they do, there working patterns, as well as the number of jobs and the industries
Fig 1.2
This data is from the official national statistics UK site
Above you can see that the employment rate by age is going high.
Marks and Spencer may also be interested in the pay and earning of people. Earnings are a measure of gross remuneration people receives in return for work done. It includes salaries and bonuses but does not include non-monetary perks such as benefits in kind.
Fig 1.3
This data is from the official national statistics UK site
On the graph whole average earning is show that it is average pay.
Marks and Spencer may also be interested in the vacancies that are available when they are looking to employ externally. A jobcentre vacancy is defined as a job opportunity notified by an employer to a jobcentre or careers office (including 'self-employed' opportunities created by employers).
Fig 1.4
This data is from the official national statistics UK site
Above you can see that there is an increasing amount of vacancies.
In Marks and Spencer they also give a short test in English and maths before they employ staff. The qualification required by Marks and Spencer is usually GCSE Maths and English. In Marks and Spencer they can look at the government statistics of education in the local market.
2.3
Analysis of how relevant labour market trends relate to the ongoing human resources planning of Marks & Spencer
The relevant labour market trends are very important in human resources planning; because Marks & Spencer have to plan they are able to get right people suitable in the labour market. The human resources planning have to forecast employees, so in the future Marks & Spencer may need more or less workers or worker with different skills. They use labour market trends, such as external labour market that show the amount of vacancies in a job centres this is shown in Fig 1.4 they can see if they are able to plan to recruit. By looking at the education level of people Marks & Spencer, can see weather they are able to plan to employ people with the skills. Once Marks & Spencer has decided on the number and type of employees it needs in future. The next step to ensure if they have the right people at the right time, to meet the work force planning requirements.
A starting point for Marks & Spencer to analyses the current position of employees. This is likely to involve calculating the number of employee working in a particular job and identifying their category and function. It may also mean gathering information on their age, length of service, qualification and performance results. If Marks & Spencer wanted to employ managers may look at the number of graduates on its staff or may look at the amount of graduates that are unemployed this is shown in Fig 1.1, so they can plan to forecast. It may also be useful to look at the amount of people leaving when planning to new staff; this may be done by the percentage wastage rate. This shows the amount of employees leaving as a percentage. When planning to recruit from external labour market the local employment of age trends in Fig 1.2 of the amount of people employed, will indicate how mush people are working age group in certain regions. The unemployment trends will help planning when it gives indication of the general availability of labour and suggest weather it will be easy or difficult to recruit. It is also important to find out more about similar business locality that have been laying off workers. Often when a major employer closes down or discards labour, this provides an opportunity for Marks & Spencer which are able to employ the workers who have been made redundant. These employees might have the right sort of skills or transferable skills that can be applied.
Internal Supply
Before Marks and Spencer decide to recruit any employees externally it needs to consider whether it has the suitable candidates internally who could do the job efficiently. By doing this Marks and Spencer are saving money and recruiting internally takes less time than recruiting externally. However, if the job on offer is highly specialised then it is unlikely that there are any suitable candidates that match the criteria. The personnel can do this by sifting through employees' documentation that may contain past experience, skills gained before joining the company and appraisal reports.
Marks and Spencer is one of many companies that ask employees to complete a 'skills questionnaire' to see whether they possess the required skills to take up a vacant job. A skills questionnaire may also be of help to the Human Resource Department to identify possible mentors and to plan training events if skills shortages are identified. This information is of use to the Human Resource Department when deciding whether to advertise internally. (Unfortunately it was not possible to gain a skills questionnaire from Marks and Spencer).
Statistics and information would be collected on employees already within Marks and Spencer, which would cover the following areas:
* The number of employees in particular job categories
* The skills available
* Skills analysis
* Performance results
* Promotion potential
* Age distribution and length of service
* Staff turnover
The number of employees in particular job categories
This figure will give a broad overview of the numbers in Marks and Spencer who already possess certain broad category skills - e.g. in a Premier division football team this could be the number of strikers, midfielders, defenders goalkeepers etc. Or it could identify those who already have Premier division experience and those who are novices at that level.
The skills available
It may be helpful to identify the current skills held by the labour force and see how many of these are transferable (a skill used in one particular job may be transferable to another job).
Skills analysis
Marks and Spencer needs to be sure it has the right number of people available at the right time but also with the right skills. The company, therefore, needs to assess its present supply of skills across the company's workforces and to identify the sorts of skills it will require in the future.
A skills inventory of current employees will indicate those who have received recent training and those who will require training. It may be possible to meet the human resource requirements of the organisation by training and developing current staff rather than recruiting externally. (This is often a cheaper option and also helps to motivate people who are already working for the company).
Performance results
Marks and Spencer will want to gather information about the level of performance of various categories of current employees. This sort of information may be collected in a quantitative form (e.g. numbers of items produced of acceptable quality, number of rejected items because of poor quality etc). In addition information may be collected that is of qualitative nature (e.g. information from appraisal interviews).
Promotion potential
Internal promotions will change the availability of existing resources. It is useful to know how many employees have the skills and aptitude for promotion to more demanding roles. In addition, it is useful to know how many employees have the potential, with suitable training, for promotion.
Age distribution and length of service
This is a very important factor to any large or medium sized business because it is possible to have too many experienced workers and too many inexperienced workers within an organisation.
If Marks and Spencer has too many experienced workers there is a danger that they will retire at similar times leaving the organisation in a mess to sort out by recruiting more staff with no experience. It is therefore important for Marks and Spencer to have a workforce of mixed ages so that the danger of experienced workers retiring at the same time is avoided. If the organisation has too many inexperienced workers it may show a slow progress of advancement in the business objectives which may influence employees to quit their job and look somewhere else offering them more job satisfaction.
Staff turnover. Staff turnover should be analysed in order to identify the reasons people leave Marks and Spencer and to help it forecast future losses. A degree of staff turnover may be beneficial to the organsation, as fresh staff can be recruited, promotion channels may be opened up and it may allow for natural wastage when Marks and Spencer is trying to reduce its workforce. Too high a level of staff turnover will mean that there will be high additional costs of staff replacement and recruitment, additional training costs and disruption to the quality of service or to production.
If Marks and Spencer found that there was nobody suitable for the job of an Office supervisor within the organisation then it would need to consider the possibility of finding one within its locality.
Techniques for forecasting internal employee supply: labour turnover
There are two simple methods of measuring the rate at which employees leave or stay with an organisation, which are:
* Employee wastage rate
* Labour stability rate
Employee wastage rate - Below shows a simple diagram indicating how it is possible to calculate the number of staff leaving a business as a percentage of those who could have left:
Number of staff leaving in time period
Wastage rate = X 100
Average number of staff employed in time period
Unfortunately, information was unable to be found for a realistic wastage rate in Marks and Spencer so an example is shown below:
If Boots were to employ a photo-developing workforce of 400 in the North of England but found that 100 of them left during the year, the wastage rate would be:
100
X 100 = 25%
400
Such information is used to predict likely turnover in the future, to see if there is a need to examine in detail the reasons for the high turnover and to find out if there is need to recruit new staff to replace those leaving.
Even though the labour turnover index is very useful to the organisation it also (as with most statistics) needs to be considered alongside other factors such as whether employees are leaving one particular department of the organisation.
Labour stability rate - Some organisations make good use of the labour stability index as well as the wastage rate. This indicates to the organisation the tendency for employees with long service to stay with the company therefore linking the leaving rate with the length of service.
Number of staff leaving with more than 1 year's service
Stability index = x 100
Number employed 1 year ago
The advantage of knowing about the current labour force of an organisation enables it to make the most of the skill and potential present within. But on the other hand, the availability of those from the local and national labour market statistics also has to be taken into consideration.
The effectiveness of employee organisation
The effectiveness with which Marks and Spencer or any other organisation runs its human resource policies can be measured by the level of employee satisfaction, and this is where stability indexes and, again, wastage rates are so important. If employees of Marks and Spencer are content with their work, they are most likely to turn up for work. Levels of stress and stress related absenteeism increase when there is poor human relations atmosphere.
Sickness and accident rates
It is most likely that Marks and Spencer keep a record of the following:
* Notified absences. When employers are going to be absent from work (e.g. to attend a funeral, a hospital appointment, a wedding etc).
* Absences due to sickness. Employees will need to produce a doctor's note so that they are entitled to sickness benefits, etc.
* Unauthorised absences. When employees simply do not turn up for work, without telling anyone.
As a result of these records, Marks and Spencer can record absences as a percentage of the hours/days etc, that could possibly have been worked. Absence records can be kept for individual employees, groups of employees and the workforce as a whole at Marks and Spencer.
Such detailed statistical analysis enables Marks and Spencer to keep an eye on where problems lie - with an individual, with a particular section of workers or with Marks and Spencer as a whole. Comparisons can then be made with other workers and past records (for the individual employee), with other teams/sections (for teams/sections) in the workplace and with comparable organisations. Breaking down the statistics further highlights whether the problem lies with sickness or with unauthorised absence. And by keeping these records for a number of years, it is possible to establish trends.
Absences should be measured as a percentage of total time. For example, if an employee from Marks and Spencer is due to work for 40 hours in the week, but turns up for work for 32 hours only, then his/her absence level is:
8
x 100 = 20%
40
If the total hours people in Marks and Spencer work in a week is 10, 000 but they work only 9, 500 of these then the absence rate is:
500
x 100 = 2.5%
0, 000
Accident rates are calculated by recording the number of accidents at work. Marks and Spencer should have a health and safety committee with the responsibility to:
* Investigate and report on accidents or incidents.
* Examine national health and safety reports and statistics
* Review health and safety audit reports
* Draw up works rules and instructions
* Oversee health and safety training
* Promote and advise on relevant publicity campaigns
* Recommend updates to Marks and Spencer' safety policy
* Consider and advise on impending legislation.
Part of the health and safety committee's responsibilities will be to ensure accurate records are kept of accidents at work.
The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1985 (RIDDOR) set out that injuries resulting from accidents at work where an employee is incapacitated for three or more days must be reported to the authorities within seven days. Injuries involving fatalities must be notified immediately by the most practical means (e.g. by phone). Listed diseases must also be notified.
Boots, therefore, will keep statistics on both minor accidents at work (i.e. ones however minor that involve some form of first aid) and accidents that have to be reported to the authorities under RIDDOR. Accident statistics relating to particular industries and organisations can then be collected nationally. In addition, Marks and Spencer and other organisations will want to keep internal statistics to make sure that undesirable trends do not occur. In the course of time Marks and Spencer will want to see accident rates falling.
Accident rates can be calculated simply as a number of accidents per year within a chosen unit (team, firm, industry etc). In calculating accident rates in a particular industry or firm, the most accurate method is to calculate the statistics according to each employee working in the industry. This is because some industries employ far more people than others and because the numbers employed change over time.
Statistics for age, skills and training
As earlier explained in the report, Marks and Spencer will have a range of employees who have worked for different lengths of time and who have different levels of skills and training. The human resource planner will seek to have a balance of new people entering Marks and Spencer in order to cover those who are leaving. The human resource planner will also want to make sure that skill levels are rising within Marks and Spencer and that training programmes are devised to make sure people have the skills to meet the job requirements. If all of Marks and Spencer' skilled workers are just about to retire, then the company is quickly going to have to spend money on training to build up a new pool of expertise.
Succession
Succession is the way in which one person follows another into a particular job or role within a company. Marks and Spencer needs to make sure it is grooming people to take on the responsibilities required. If it does not do this, it will suddenly find itself with a vacuum where it has not developed the appropriate positions of responsibility and the company will be missing the right people in key positions to hold the organisation together.
The external labour market
This is a market of potential employees for Marks and Spencer or any particular organisation to choose from when recruiting more workers. The employees are usually listed locally, regionally or nationally whom have the skills and experience required at a particular time.
The national labour market
When Marks and Spencer examine the supply of the labour market, a number of factors need to be taken into consideration:
* Trends in size/characteristics of the working population
* Competition for labour
* The overall level of economic activity
* Education and training opportunities
* The effect of government policies
Trends in the size/characteristics of the working population
The one factor that will definitely affect the human resource department of Boots is the changes in the age distribution of the UK population. To meet their human resource requirements, the company now have to look further a field when recruiting new staff, as there is now fewer school leavers and young workers available for employment. This may involve recruiting more women to balance out the organisations male to female ratio or more elderly employees to gain that further experience into the workforce.
Competition for labour
Persons of specific qualifications such as ICT may be offered more attractive wage packages than other members of Marks and Spencer' workforce, as the competition for recruiting these rare potential employees is high. In other words - Organisations compete with each other by offering potential employees with rare qualifications high wage packages.
The overall level of economic activity
The demand for employees can be determined by whether the economy is in a boom or recession period. If there is a high demand for goods and services Marks and Spencer' productivity will increase along with sales and profit. More demand for the products or services leads to a higher demand rate for employees. If the unemployment rate is at a low, the economy will be at a high. However, this factor can make it extremely difficult for human resource planners to recruit the right sorts of employees with the correct sorts of skills.
Education and training opportunities
With higher education opportunities evermore increasing - young people are seeking to gain more qualifications in order to advance to a higher paid occupation. Because over recent years the level of higher education opportunities has grown the level of skilled workers coming into the labour market has decreased. Young people appreciate the need for higher skill levels in order to compete in the job market.
The effect of government policies
Government legislation can affect the labour market in a number of ways. The government provides incentives to organisations to employ and train people. Where such incentives are available, they will reduce the costs of labour and therefore have implications for human resource planning.
The lifelong learning in this country (and in Europe) has meant the general skill levels of the working population have been improving. With new courses such as the AVCE (Advanced Vocational Certificates in Education) and NVQs (National Vocational Qualifications) being taken by an increased amount of people has led to a rise in skill level in the economy. The reasons for this happening are that the curriculum in schools makes it a necessity for pupils to attain the required grades in literacy, numeracy and information and communication technology skills for the future of the economy.
By giving organisations incentives to recruit young people and the unemployed, the government has given the economy a high increase in the supply of labour.
Local employment
For Marks and Spencer and many other organisations, the state of the local labour market is as significant as what is happening nationally or regionally. Marks and Spencer need to know about the supply of labour in the locations where they are operating. The company needs to know about current and future supply trends.
A report published in December 2000 showed that it is a gross simplification to think of the UK simply in terms of north-south divide. The report showed that a more accurate picture is of a relatively prosperous south with pockets of poverty and a relatively less prosperous north with pockets of prosperity. In the jobs market the gaps between regional unemployment rates in 2001 were lower than they had been for over 20 years, but the south-east had far lower employment (3.7%) than the north-east (10.1%). The south-east also had the highest proportion of its working-age population in employment, the lowest proportion of the UK workforce with no qualifications and the lowest proportion claiming benefits.
These sorts of statistics are essential to a business organisation such as Marks and Spencer in understanding local supply conditions, and are looked upon into more detail further on in the report. Further information is provided by local employment offices and job centres, which hold details of unemployment figures of their particular areas.
Local employment trends
Local employment levels give an indication of the general availability of labour and suggest whether it will be easy or difficult to recruit. It is also important to find out more about which organisations in a locality have been laying off workers. Often, when a major employer closes down or discards labour, this provides an opportunity for another local company, which may be able to employ the workers who have been made redundant. These employees might have the right sorts of occupational or transferable skills that could be applied to similar work.
A study of local employment trends will give an idea of whether demand for certain types of work is rising or falling. Where demand increases this will lead to shortages.
Local skills shortages
Within any area at one time, there will be jobs that are going into decline because the skills required for those jobs are becoming redundant. At the same time, new skills and capabilities will be emerging, and demand for these will be rising faster than supply. As a result, skills shortages will arise and these will cause considerable frustration for local employers. The wages of people in the skills shortages areas will be rising and there will be competition to recruit and retain these scarce employees.
Where a local shortage occurs, employers will often seek to advertise and recruit in other areas, regions or even countries. This is why, for example, there are many doctors from over seas working in both private practice and for the National Health Service in the UK.
Marks and Spencer need to be aware of local skills shortages so they can develop their own training programmes to make sure there are enough people coming through with the skills required. They will also work together with local employers in the same industry to support local school, college and university courses that train people the skills required for these specific industries.
Competition for employees
Marks and Spencer will be interested to know whether its competitors are expanding and, therefore, increasing the demand for labour, or whether local redundancies mean labour is more readily available. See below:
Competitors expanded
Competitors contract
Demand for labour in the locality increases.
Demand for labour in the locality falls
Supply of labour contracts
Supply of labour expands
Leading to rising wage rates
Leading to a fall in wage rates
Increased difficulty in recruiting the right sort of employees
Easier to recruit the right sort of employees
Availability of labour
The amount of labour in a particular area depends on the number of people available for work. With modern transport systems it is usually quite easy for people to travel to work, but an organisation such as Marks and Spencer may need to develop its own systems to make sure it is easier for people to undertake the journeys, e.g. a work bus. With modern employers locating on the outskirts of towns, the issue of getting the right numbers of the right sorts of people to work is an important one.
The availability of labour will depend on such factors as the age distribution of the local population (although this tends to follow national patterns), attitudes to women working and the extent to which young people stay on at school, college or go on to higher education.
How Marks and Spencer would use local labour market information to recruit a supervisor
If Marks and Spencer found that it needed to recruit an office supervisor externally, after finding that the company did not have the suitable candidate(s) internally, it would need to use relevant local labour market information. Marks and Spencer would need to research the following:
. The size of the working population of the UK
2. The size of the working population of London
3. Age breakdown of London's workforce
4. Gender breakdown of London's workforce
5. Employment status of London's workforce
6. Unemployment trends within London and also Nationally
7. Qualifications of suitable people within London
8. Number of people staying on at school Nationally
9. Skills shortages within
0. Wage rates within London and also Nationally
Qualifications of suitable people in London
Tottenham
Wood Green
NVQ 1
.5
.9
NVQ 2
29.8
29.3
NVQ 3
2.7
3.2
NVQ 4
1.4
1.4
NVQ 5
4.2
4.5
No NVQ
40.4
39.7
In the above table shows what percentage of London have the qualifications specified in the chart. The highlighted area shows what qualifications are needed to become an office supervisor.
. Full-time and part-time pupils in school in the United Kingdom
Year
Number
990 900,199
991 900,260
992 900,368
993 900,513
994 900,571
995 900,714
996 900,813
997 900,905
998 900,973
999 1, 000, 019
2000 1, 000, 081
From this chart you can see that the number of pupils in school has increased dramatically in the last ten years. This means there should be more young people with qualifications.
The number of students in full-time education (all ages) is 1,065 thousand. Below is a chart breaking this figure down into countries. You can see that England has by far the highest number of students in higher education. This is mainly because England has the largest population. The number of students staying on in higher education has increased.
This means that there are less young people available in the labour market. This means there will not be as many young people available for the Cumberland to employ.
Skills shortages
Occupations
Wood Green
Tottenham
Managers & administrators
2.3
1.7
Professional
9.3
9.4
Technical
8.9
8.6
Clerical & secretarial
4.3
2.0
Crafts and related
1.5
6.0
Personal & protective services
1.3
2.0
Sales
9.9
8.9
Plant & machine operatives
1.9
0.6
Others
0.9
0.9
The table above shows the different types of occupations people that have jobs /had in 2000. The highlighted area indicates the percentage of Managers and administrators there were/are in Wood Green and Tottenham. This is the area Marks and Spencer would look into when recruiting an Office supervisor. It is clear that there are skills shortages mainly in Technical and Professional occupations in Cumbria.
Annual earnings in London compared with other county's/cities - 1999
Cumbria ( )
Manchester ( )
Birmingham ( )
London ( )
Leeds ( )
Office Manager
4-17,000
6,000+
7-22,000
20-30,000
6-24,000
Office supervisor
2-16,000
2-14,000
5-20,000
8-20,000
2-15,000
Administrative Clerk
0-12,000
9-10,000
9-12,000
2-14,000
9-12,000
WP operative
0-12,000
0,000
0,12,000
3-18,000
9-12,000
Telephonist
0-12,000
9-10,000
0-12,000
2-17,000
9-12,000
Customer services clerk
2,14,000
0,000
1-13,600
2-16,000
9-12,000
Telesales
2-16,000
2,000
1-14,000
2-16,000
0-15,000
Sales person
3-21,000
20,000
0-20,000
20-25,000
1-20,000
Engineer
4-25,000
2-16,000
5,000
8-25,000
5-25,000
Skilled operative
4-17,000
2,000
0-13,000
5-18,000
2-18,000
Semi-skilled operative
8-13,000
9,000
9-10,000
0-15,000
8-12,000
Unskilled operative
7-10,000
7,000
7-9,000
0,000
6-8,000
Above shows the annual earnings of four major cities' employees compared with Cumbria's. It is highlighted how much an Office supervisor got paid in the year 1999. An Office supervisor in Cumbria was almost just as well paid as another Office supervisor in any of the other major cities except for London. However, in London the standard of living was and still is much higher than the standard in Cumbria.
Implications of Human Resource planning within Boots
Human resource planning will affect both the business and the employees that work in it. There are likely to be some benefits to workers but also some problems.
Motivation, training and support
Employers of Marks and Spencer will attempt to motivate workers and make sure they are satisfied in the workplace. This may be in the form of rewards such as bonuses or other incentives or non-monetary incentives, such as job design.
Employers may also benefit from training and support. For example, 'Marks & Spencer' employ counsellors for employees, giving advise on areas such as how single parent families cope. Perhaps a learning curve for Marks and Spencer to help increase competitive advantage?
Flexible work practices
Boots have always wanted workers to be flexible as possible. In the past this has meant paying overtime for extra hours worked, or higher rates 'shift' work.
Faced with competition, Marks and Spencer are trying to use their existing employees more effectively. Sometimes this can benefit the employee. A single woman with a child may be able to work between the hours of 9am to 3pm each day while her child is at school. Working flexible hours could mean an employee may take time off for personal reasons and still work their required number of hours a week.
Training may also be given to workers so they become multi-skilled - able to switch from one job to another if needed. This example of job rotation may lead to the employee being more motivated. From Marks and Spencer' point of view, an employee that can change jobs may prevent the need to have temporary staff to cover for illnesses etc. and so to reduce labour costs.
A flexible workforce
Increasingly Marks and Spencer are looking to make plans that allow the business to respond to changes.For example, if a large unexpected order arrives, will need workers that can 'get it out on time'. Using a flexible workforce will enable Marks and Spencer to react effectively to changes that take place outside the business. Examples of workers that Boots may use are as follows:
- Part-time employees, such as cleaners, who only work a few hours a day
- Temporary employees, to deal with increases in demand
- Office temporary workers to cover for illness etc
- Self-employed workers, such as management consultants etc
- Job sharing, where two workers are employed to do a full-time job that may have been carried out by one person in the past
There are both benefits and disadvantages to these types of employee. On the one hand, a single mother may be able to find work at a convenient time and job sharing could mean employment for two people instead of unemployment for one of them. However, part time workers may be paid less and may be entitled to fewer employment rights than full-time workers. The position of flexible staff is often a source of industrial relations problems for Marks and Spencer and other businesses and may lead to conflict with trade unions.
Recruitment, redundancy and redeployment
If Marks & Spencer is aiming to expand production it may employ extra workers. However, when a plan calls for reduction in staff then redundancies often follow. Cuts in staff can be achieved in a number of ways.
* It may be possible to lose some workers through natural wastage. This simply means that employees that leave the business are not replaced.
* Marks and Spencer may ask for voluntary redundancies where workers agree to leave the company and are compensated for their actions. The company could offer early retirement to workers close to the compulsory age (65 for men and 60 for women).
* Compulsory redundancies may take place, if there is no longer enough work for employees.
Workers may also be re-deployed within Marks and Spencer. Although the worker will have to adjust to a new work environment, this should not be too difficult with induction and training. Redeployment to another part of the country, however, is more of a problem for employees.
3.0
Recruitment and selection
The recruitment process can be very costly. It takes a great deal of time to set up an effective recruitment process involving deciding on what the jobs that are to be recruited for will entail, advertising, sifting through applications best meet the criteria set down for the post, interviewing candidate and, finally, selecting the best candidates for the job. There can be over 100 applicants there is opportunity for waste when you reduce the original 100 down to 6 candidates. If you get your procedures wrong you may eliminate some of the best candidate's right from start and end up with 6 who are barley satisfactory. If you end up choosing an unsuitable candidate for Marks and Spencer, then they will suffer from having a poorly motivated person, who may make mistakes within the organisation before walking out on the job and leaving the company to go through the expense of replacing him or her yet again.
Successful organisations such as Marks and Spencer pay attention to accurate methods of selection and this helps to avoid them being swamped by unsuitable applicants each time a job is advertised. The whole process can be very time consuming and expensive unless it is carried out in a systematic way. The main steps in the process can be identified as:
Need for vacancy
Recruitment a process to attract suitably qualified candidates for vacant positions
Attraction
Reduction
Selection a process which uses the appropriate method to select, appoint induct effective employees
Selection
Induction
Transition
Each year people will voluntarily leave a firm and this number cannot be accurately
Predicted. The human resource manager will look at an historical analysis of the last three years and estimate that similar numbers will leave again this year. To some extent this will give a reasonable assessment of the number of resignations likely to take place but it will not indicate the specific jobs that will be left vacant. In addition, the economic climate also affects these numbers.
* In times of affluence, people move around the job market freely, attracted by a new challenge or different benefits.
* In times of recession, people stay in jobs in order to maintain their lifestyle and level of income.
In either case, the wrong calibre of candidate may be attracted if the advertisement is not worded effectively and application documents are not prepared that sort out the most suitable candidates. The starting point of the process will be "Does this vacancy need to be filled?" and the answer to the question more times than not is "Yes". If the answer is "Yes", then the process can be precede. Sometimes an analysis of current requirements will produce a 'No' response and the job will be lost from the departmental allocation.
Why recruit staff?
Boots will recruit staff for a number of reasons, which include:
* The growth of the business
* Changing roles within the business
* Filling vacancies created by resignation, retirement or dismissal
* Internal promotion
The growth of the business
When Marks and Spencer grows in size it will probably need more people to carry out existing jobs and new jobs. When existing jobs are being expanded, human resource specialists simply need to copy existing practice on a larger scale. In creating new jobs more detailed thought is required, particularly if the jobs are quite different from those that already exist within the company.
Changing job roles within the business
In recent years Marks and Spencer have changed their job structure. In particular, the country has seen the decline of many routine, standardised jobs. Increasingly, employers have sought to develop new jobs involving information and communications technology, and which involve ground-level employees taking more responsibility for decision-making through empowerment.
Developing new jobs requires considerable research, often by examining best practice in an industry or by looking at the development of new jobs in other countries, particularly the USA.
Filling vacancies created by resignation, retirement or dismissal
In many organisations people move on, and this is no exception with Marks and Spencer. People get older, they hand in their notice or they are dismissed. In most cases it is necessary to replace the employee. However, the manager responsible for recruitment has to decide whether the firm wants a carbon copy of the previous job holder or whether the job has moved on, requiring new skills and competence's.
Internal promotion
In Marks & Spencer there will be opportunities for internal promotion. Internal promotion gives an employee something to aim for in the organisation, rather than looking elsewhere. When one person is promoted, it is often necessary to replace him or her.
Attracting potential employees
External changes in the environment can play a big part in the recruitment process for Marks and Spencer.
The recruitment and maintenance of a flexible workforce is vital for Marks and Spencer if it wants to stay competitive. In recent years, the general composition of the workforce has altered to create a demand for more flexible working practices, such as flexitime, multi-skilling (that is employees trained in a variety of tasks) and job sharing. (As discussed earlier).
A flexible workforce can be organised with core workers and periphery workers.
p
The diagram above shows that a business can be split up into 3 sections of a circle. The outer rim of the circle represents the "external employees". These workers are not employees of Marks and Spencer but are, for example, agency temps, workers in contracted-out services and the self-employed.
The inner rim represents the "periphery workers". These are the employees that are short-term temporary and part-time, who receive less favourable pay, conditions and benefits.
The centre circle represents the "core workers". Core employees are ones who are multi-skilled (i.e. educated and trained to do a variety of job tasks), who work full time and who receive good pay, conditions and benefits.
Getting the recruitment process right
The recruitment process can be very costly. It takes a great deal of time to set up an effective recruitment process. This involves deciding on what the jobs that are to be recruited for will entail, advertising, sifting through applications, checking which applications best meet the criteria set down for the post, interviewing candidates and, finally, selecting the best candidate for the post.
Waste and inefficiency can be very costly to any organisation. If Marks and Spencer were to advertise a job for a retail assistant and managed to get 100 applicants, by sifting through the application forms they may be in danger of choosing the wrong employee. The personnel of Marks and Spencer would probably cut the 100 applicant forms down to 10 by eliminating, from their point of view, the most unsuitable employees for the job. But by doing this Marks and Spencer could eliminate the best applicant, therefore, it is possible that the personnel may have to do the whole process all over again if that the applicant they do choose for the job is unsuitable.
Reasons for Marks and Spencer to recruit more workers
The business may be expanding and more branches could be on the agenda in a new location.
One part of the business may be in need of new workers - employees may be leaving because of retirement, dismissal or resignation making way for more jobs.
Marks and Spencer may need to be restructured or reorganised which will create many more jobs for people in the business.
The Marks and Spencer company strategy in recruiting employees
The Marks and Spencer company offers recruitment programmes for general entrance, and schemes focussed on school leavers and graduates. The company looks for various qualities in potential Marks and Spencer employees. In addition to academic ability, it looks for people with extra-curricular abilities such as interpersonal ability and team-making skills.
In addition to the requirements of individual positions, the Marks and Spencer' graduate scheme also requires applicants to fulfil three key criteria:
Leading the thinking - See the big picture no matter how complex; offer and stimulate new ideas and turn complex issues into clear strategies.
When have you looked for and found solutions beyond the obvious?
How radical have you been?
In what ways have you challenged received wisdom?
How do you manage ambiguity?
How logical are you in your approach?
Leading the pace - Understand and focus on the important, drive to deliver better performance and be decisive in a crisis.
Can you prioritise, focusing on the important issues and dispensing with others?
Do you regularly achieve standards that you set and which are beyond those expected by others?
When do others rely upon you to make things happen?
Leading the team - Act as a catalyst driving for results and restlessly to win.
Do people enjoy working with you, do you create a buzz?
How do you influence others even when the cause looks lost?
Have you been able to get good results from difficult people? How did you manage it?
The selection process relies on application forms, interviews and selection centres. The company now operates competency-based interviews. This is the process whereby applicants are asked to back up statements in interview with examples of personal experience, thus providing real evidence of their capabilities.
How would Marks and Spencer recruit a part-time sales assistant?
The following information shows how Marks and Spencer would externally recruit a "Part-time Sales Assistant". These are the most vital aspects that the HRM of Marks and Spencer have to analyse when recruiting and selecting a part-time sales assistant or any other employee:
* Job Analysis
* Job descriptions
* Person Specification
* Job advert
* Letter of application (received)
* Curriculum Vitae (received)
* Interview
* Job Evaluation
Job Analysis
This is the first stage for recruiting an employee. Information may be gathered by the managers of Marks and Spencer by questioning the job holder (who will be retiring or resigning) or observing the job holder at work. The information gathered is carefully recorded and analysed. Further information might be obtained through discussions with the job holder's manager or supervisor. The job analyst compiles a description of the main responsibilities of the job by asking:
. What are the main tasks of the job and how often do they need to be completed
2. Are any specialist technological skills required to do the job
3. What mental processes are required to do the job
4. Is the job holder required to take decisions and use initiative
5. What are the limits of the job holder's authority
6. Is the output from the job a part or a whole
7. Does the job holder have to work with others, or control the work of others
8. What are the required performance standards and how are they measured?
Job description
When the job analyst has gathered all the information from the job analysis then he/she can put it into a summary report setting out what the job entails. This summary report is usually known as a job description. It contains two types of information: it describes the tasks of the job and it describes the behaviour necessary to actually do these tasks satisfactorily.
A job description usually consists of:
* General information Job title
Position within the business
Job summary
* Job content information Tasks involved
Purpose of tasks
Methods involved
Other duties
Responsibilities
* Working conditions Physical environment
Social environment
Economic environment
* Performance information Criteria for measuring performance
The job description has several users:
. It can help Marks and Spencer tell candidates for a job what is expected of them
2. It helps personnel officers decide on the qualities the successful candidates must have
3. Once a candidate has been appointed, it can be used to gauge whether an employee is doing his/her job properly
4. Disputes about what work an employee has to do can also be settled by reference to the job description.
The job description allows the person interested know what is expected from him/her and allows the person to know whether he/she fits the criteria.
An example of a job description can be seen in the appendix.
Person specification
Sometimes known as a personnel profile - the person specification describes all of the attributes and skills required to do the job in hand to the satisfactory standards. For example, in Marks and Spencer' mission to require a part-time sales assistant, the HRM would need to specify clearly in the person specification whether or not the employee had to have special ICT qualifications in order to work a till. Marks and Spencer would specify this sort of information in one of six categories shown in the person specification - as known as the six-point plan. Basically the six-point plan is listing the requirements under broad heading:
* Physical make-up. What should the job holder look and sound like
* Achievements. What education, qualifications or work experience should the applicant have
* Specific skills. What special skills and talents are needed by the applicants
* Interests. What kind of hobbies or past-times should be required of the applicant.
* Personality. What motivation and temperament and attitude should the applicant have
* Personal circumstances. What personal and domestic arrangements might the ideal person have?
An example of a person specification can be found in the appendix.
Job advert
Job advertisements form an important part of the recruitment process. Marks and Spencer is able to communicate job vacancies to a selected audience by this means. Most job adverts are written (or at least checked) by the personnel department, task involving the same skill as marketing a product. Adverts must reach those people who have the qualities to fill the vacancy.
The nature of the advert will depend on the following:
* Who the target audience is - potential managing director, supervisor, operatives etc
* Where the advert will be placed - on a noticeboard within the workplace, in the Financial Times, at the local job centre etc
Job advertisements therefore take many forms, according to current requirements. Good adverts contain at least the following information:
- Job title. This should form the main heading, possibly in bold print.
- Job description. This should highlight the major requirements of the job in a concise format.
- Organisational activities and marketplace. There should be a brief description of the environment in which the organisation operates.
- Location. Applicants need to know the location of the organisation and the location of the job (which may be different).
- Salary expectation. Figures are not always necessary, but an indication of the salary level should always be given.
- Address and contact. This should appear, with a telephone number if appropriate.
- Qualifications. Certain jobs require a minimum entrance qualification, which should be clearly stated.
- Experience. This should be quantified, as it will have a bearing on the expected salary level.
- Fringe benefits. The advertiser may wish to mention a company car, a health insurance scheme and so on.
- Organisational identity. This may be in the form of a logo (or simply the name of the organisation).
A good job advert, while providing prospective candidates with helpful information, also helps to discourage applications from people who do not have the required qualifications for the job.
The presentation of the advert is very important as it gives prospective employees a first impression of the organisation.
Letter of application
The title pretty much speaks for itself when describing what a letter of application is. Basically, a letter of application is a letter that an applicant would send to an organisation when interested in a job on offer. In this case, the applicants for the part-time sales assistant would send their letters to Boots after seeing the advert for the job. Along with the letter of application the employees would send their Curriculum Vitae (CV).
An example of a letter of application can be found in the appendix.
Curriculum Vitae
A Curriculum Vitae (CV) shows a person's achievements, hobbies, interests and past-times. A CV is a vital ingredient to recruiting the best employee - in this case the best part-time sales assistant. Below shows an example of a CV that could be sent with the letter of application to Marks and Spencer' HRM sent by an applicant enquiring about the job of a part-time sales assistant on offer.
Once Marks and Spencer' HRM have evaluated the letter of application of the applicant they can decide whether or not he/she is suitable for the job. If they are then a letter of an invitation to an interview will be sent to him. If he/she isn't then a letter of consolation is sent by Boots' HRM. But in this case let's say the applicant does qualify for an interview, this is the next stage of the recruitment process.
An example of a CV can be found in the appendix.
Interviews
Interviews are the most vital stage of the recruitment process for Marks and Spencer and the potential employee. This short time of contact with Marks and Spencer can give the business representatives a lot of information about how the potential employee looks, behaves, talks and basically how well he or she comes across as a person. That's why it is so important for the potential employee to dress appropriately and talk with confidence when answering any questions set to him/her by the interviewer(s).
Most people have had at least one experience of being interviewed prior to employment. Few people enjoy interviews either! Often this is because the interviewer comes across as being more interested in finding faults with you than finding out the good things. This is sometimes to see if the interviewee is sharp, intelligent and someone who can cope with pressure. Some of the interviewing techniques (used by the interviewer) will show which applicant is the most strong minded out of all the potential employees. For example, the interviewer may decide to ask the applicant to take a message from a person on the phone pretending to be a business consultant of the company or an upset customer. This sort of technique can indicate to the interviewer how well spoken or articulate the interviewee is, how well he/she copes under pressure and whether he/she deals with the "phone call" in the appropriate manner expected by the organisations standards.
The personnel department of Marks and Spencer is usually involved in interviewing, both in carrying them out and helping managers to adopt good interview practice. By following certain guidelines, the business hopes to employ the 'right' person for the job. It also aims to carry out the interview in a way that is fair to all candidates. These guidelines might include the following:
The interview should allow information to be collected from candidates, which can be used to predict whether they can perform the job. This can be done by comparing replies with the criteria that successful applicants should have.
Marks and Spencer should give candidates full details about the job and the organisation. This will help them decide whether the job would suit them.
The interview should be conducted so that the candidates can say that they have had a fair hearing. The interview, has however, been criticised as not always being an effective 'tool'. Some of the main criticisms are:
. Interviewers often decide to accept or reject a candidate within the first three or four minutes of the interview, and then spend the rest of the time finding evidence to confirm their decision.
2. Interviews seldom change the initial opinion formed by the interviewer seeing the application form and the appearance of the candidate.
3. Interviewers place more stress on evidence that is unfavourable than the evidence that is favourable.
4. When the interviewers have made up their minds on the candidate very early in the interview then their behaviour betrays their decision to the candidate.
5. The problems with these criticisms are that they do not solve the problems, only identify them. No matter what other means of selection there may be, the interview is crucial. If it is thought to be unreliable, it should not be discarded. Marks and Spencer must simply make sure they carry it out properly.
Carrying out the interview
There are a number of factors, which would be taken into account when carrying out the interview. The interview should be conducted around a simple plan and be based on a number of questions against which all candidates will be assessed. It is also considered good practice to prepare suitable place for the interview, such as a warm, quiet, ventilated room. The interviewer should also ensure that the candidates have a friendly reception and are informed of what is expected of them.
The average interview usually takes around thirty minutes. The interview plan organises the time to cover the important aspects in assessing applicants. The plan must be flexible enough to allow the interviewer to explore areas that may come up during the interview.
Marks and Spencer can follow a simple strategy of what the interviewer should do and what the interviewer shouldn't do before and during the interview. The interviewer should always try and make the applicant comfortable by maybe asking him/her whether they had an easy journey to the building or whether they are warm enough in the interview room. This sort of behaviour can put the interviewee at ease in order of seeing the real side of them.
Listed below are some of the 'do's' that an interviewer representing Marks and Spencer should adopt:
* Introduce yourself to the candidate
* Adopt a suitable manner, show respect to the interviewee and be friendly
* Make sure the interview is not interrupted
* Conduct the interview at an unhurried pace
* Have a list of questions that need to be asked
* Encourage the candidate to talk by using 'open' questions such as;
* "Tell me about your present or past job"
* "Do you believe that........."
* Concentrate on those areas not fully covered by the letter of application
* Be alert for clues in the candidate's answer, problem where necessary, and be more specific in the questioning if you are not satisfied
* When the interview has ended, make sure the candidate ha no further questions and let the candidate know when the decision will be made
* Write up your assessment notes as soon as the interview has finished whilst the information is still 'fresh' in your mind
* Prepare for the next interview
The interviewer will have gained a great deal of information from the interview. It will help the interviewer to have a checklist of the criteria used when assessing candidates. Below shows two possible lists - "Rodger's 7-point plan" or "Munro-Fraser's 5-point plan".
The interviewer can make notes about candidates next to each criterion of the lists and compare the information with the person specification after the interview, to decide if the applicant is suitable.
Rodger's 7-point plan Munro-Frasor's 5-point plan
Physical make up Impact on others
Attainments Qualifications
General intelligence Innate abilities
Special aptitude Motivation
Interests Emotional adjustment
Disposition
Circumstances
Job evaluation
This is the part where Marks and Spencer' HRM will evaluate each and every one of the job applicants. It will evaluate how well the applicant spoke, dressed and came across in the job interview. Also letters of application and Curriculum Vitae's (CVs) will be evaluated on how well the applicant can write and by looking at the CV the HRM can see which applicant has the best qualifications and most ideal interests, hobbies, and past-times for the job.
Marks and Spencer would be able to tell whether the chosen candidate for the job was the correct selection by assessing whether the company's aim had been achieved. However, selection can be very costly to Marks and Spencer. For example, if Marks and Spencer were to send out application forms to candidates the cost of postage has to be paid for and Boots may have to pay for travel expenses for candidates' journeys to interviews.
Staff will also have to give up time to carry out the interviews. For example, if 10 people were interviewed for three posts by Marks and Spencer, but only one applicant was suitable, selection may not have been effective. In this case Marks and Spencer would have to re-advertise and interview other candidates as two posts would be unfilled. Marks and Spencer' Human resource department's role would be to check all stages of selection to find out where problems had arisen. For example, when short-listing, a suitable candidate may have been 'left out'. At an interview a possible candidate may have been rushed, so he/she was not given the chance to do their best.
In the appendix shows forms that Marks and Spencer would use when assessing the strengths and weaknesses of each applicant:
Legal factors
It is now illegal for Marks and Spencer or any other organisation to specify sex, marital status, colour, race, nationality or disability in any job advertisement. These laws were brought in by the government due to the Sex Discrimination Act (1975 and 1986), the Race Relations Act (1970), and the Disability Discrimination Act (1995). An Industrial Tribunal is available for people who feel that they have been discriminated against by any organisation, for example, during an interview. This Industrial Tribunal can award damages if it feels that a person has a fair case of being discriminated against by an organisation.
Another "Act" that can be looked upon as discrimination by an organisation is the Equal Pay Act (1970). This implies that men and women must receive equal pay if the work that they do is the same or similar.
Boots have always followed the laws of the Sex, Race Relations, Equal Pay, and Disability Discrimination Act's so not to cause a confrontation between the company itself, the person(s) discriminated against and the Industrial Tribunal. They always deploy a system where by such discrimination acts are followed.
3.1
The function of key recruitment process
The Human Resources department is usually responsible for recruiting new staff and for training them to do their job. When job vacancies arise, it draws up documents for specific purposes, organises and runs interviews.
The Human Resources department has to follow certain procedures before a job can be advertised. This page will explain these different stages in detail.
. Vacancy occurs - Three reasons why a vacancy may arise in a business:
o Retirement
o Promotion
o To go to a new job
2. The Human Resources manager then draws up a job description - The job description should contain these basic details about the vacancy:
o The job title
o The position in the organisation chart
o A list of duties
3. Person specification drew up - The person specification should include the following details. This specification represents the ideal qualities of the person required to fill the vacancy:
o Qualifications
o Experience
o Personality
4. The job is advertised- The Human Resources manager needs to consider the following:
o What details need to go in the advert
o Where the advert should be placed
5. Candidates apply for the job - The advert will usually say what the candidate needs to send in as part of their application. This will probably include:
o A letter of application or a completed application form
o A copy of their curriculum vitae or CV. The CV contains personal information about their qualifications and interests.
6. The application forms are sifted by the Human Resources manager to reduce the number or shortlist the candidates being considered - If you compare these documents you can assess whether the person has the right skills for the job:
o The CV
o The job application form
o The job specification
7. Arrange the interviews - Why are the candidates interviewed?
o Whether a person gets the job or not depends on their performance at interview
8. The interview is held - What are the interviewers looking for?
o Good answers to all the questions
o The candidates' attitude and dress
o Body language
9. Follow up references - What is a reference?
o The names and addresses of people who can provide details of your performance with a previous employer or give evidence of your good character
0. Appoint candidate to the job - What happens if references are not satisfactory?
o The job offer will be withdrawn and offered to someone else
o It might be necessary to re-advertise
Evaluation of recruitment documents
Unfortunately it was not possible to gain any recruitment documents from Boots. After many contacts via telephone and e-mails the examples of documentation was not sent and therefore is not available to evaluate. In the appendix shows examples of all documentation that Boots' HRM would use to recruit and select candidates.
Strengths and weaknesses of the recruitment documents
Strengths:
- Person specification
Allows the applicant to understand what is required from him/her
This type of document helps the applicant realise if he/she is suitable for the job.
- Job description
Allows the applicant to understand what is from him/her
This type of document helps the applicant realise if he/she is suitable for the job.
Helps the business obtain a well qualified candidate
- Form of assessment
Enables the business to find out the weaknesses of the applicant. It also helps the business find out the strengths of the applicant. This will help the business make a decision efficiently.
Good method of assessment allows the business to find out more details of the applicant.
Weaknesses:
- Person specification
An applicant might cover all of the requirements but one requirement, because he/she does not cover certain factors such as age, whether single, married or whether mobile or not. This might let the applicant feel that they can not fill the position required. Therefore this document should cover necessary and unnecessary requirement next to each requirement so the applicant will understand which requirement is essential and not essential.
- Job description
The job description does not state any matter about if they are able to take disabled people. This is because if the applicant is interested in the job position and later on finds out that this person is not suitable for the disabled, then the applicant can be disappointed.
- Form of assessment
This form of assessment should be given back to the applicant so that the applicant can find out where he/she did not do well.
4.0
Training Development in Marks and Spencer
Marks and Spencer will give an introduction first to the people that they will be employing first.
Marks and Spencer carry out in house training this training has its own training department. In the house is also can be referred to on the job training and they provide employees with training and development using resources of the business.
In the house training is used when the skills that an employee need to acquire, or the nature of the task that needs to be performed, are not too complex.
The trainee is placed in the actual working environment and uses the same materials and equipment that they will be required to use once the training has been completed.
On the job training is advantageous because the training is not being taught in the artificial environment of training an establishment and than expected to perform the same tasks and use the skill they have developed on different machinery and equipment in the real working environment.
4.1
Types of training
Induction training
This is an introduction to how the business operates for new employees. It is designed to familiarise new recruits with the business, its rules, and facilities, police and key staff. An induction programme may include:
* A general introduction and welcome to the organisation
* A summary of the polices of the organisation
* Specific rules and procedures including health and safety
* Job details
* Introduction to key staff
* Facilities available
4.2
Promotion
Marks and Spencer may encourage internal promotion. The advantage of promotion existing workers is that they already know about the business practices and culture. They may also be able to adapt more easily to a new job than an outsider. Some workers may also have been filling in temporarily and have experience of the job. Promotion internally would leave a vacancy further down the hierarchy, which would need to be filled. This would add cost and time to filling the vacancy.
4.3
Staff development and training
Training and development
Training and Development are currently big issues for many businesses in most parts of the country, especially where there are low rates of unemployment. Moreover, more and more businesses are realising that if they fail to invest in training and development they will become uncompetitive.
Training and development is the key to the future success of any individual. Marks & Spencer places great emphasis on ensuring this, through both formal, structured methods and invaluable hands-on experience.
First of all, people skills are essential. Whoever you come into contact with, whether customers, suppliers or members of staff, an understanding of situations and the ability to interact in a calm, confident manner are vitally important.
With every graduate position come responsibility and the need for well-rounded management skills. Once learned, never forgotten.
Working with one of the UK's leading retail organisations will also bring out the trouble-shooter in you. Every single day presents new issues; all of which have to be resolved, and the day will come when it's all down to you. At Marks & Spencer they want you to be the best, prepared to deal with any eventuality, now and in the future. Good training and experience will last you a lifetime.
Specific areas, such as finance, lead to professionally recognised qualifications and they encourage all employees to continually develop skills throughout their careers.
All Graduate trainees receive a varied programme. They receive system training to enable best use of internal applications as well as training in their specialist areas.
As trainees begin to benefit from training then job responsibility increases as they learn and develop. To start the programme each individual will have their own development plan following a need analysis, with regular reviews. The overall programme is designed to last 6-12 months, but is driven by you. Therefore your needs are met in a flexible way.
Marks and Spencer are likely to be able to find suitable employees from inside the organisation if it has training and development programmes. Training may provide the skills needed to allow an employee to move to a new position. For example many larger businesses have graduate-training programmes which train employee with degrees for management positions. Business that have development programme which identify how workers can improve, appraise workers abilities and view the development of employees as important are more likely to employ an internal candidate. If Marks and Spencer needs to reduce its workforce in a particular department it may consider retraining its employees and redeploying them to another part of the organisation.
Training is important it involves employees being taught new skills or improving skill or improving skills they already have. It is argued that a well-trained workforce has certain benefits for Marks and Spencer.
* Well-trained workers should be more productive. This will help the business to achieve its overall objectives, such as increasing profit.
* It should help to create a more flexible workforce.
* It should lead to increased job satisfaction for employees. Well-motivated workers are more likely to be more productive.
* It should reduce accidents and injuries if employees are trained in health and safety procedures.
* It may improve the image of Marks and Spencer. Customers are more likely to be attracted if a training programme is part of the job.
* It can improve the chances of promotion. The business, as a result, should have qualified people in important post.
4.4
Staff loss and retirement
A workforce supply plan should also take into account staff loss and rates of retirement. High rate of labour turnover, as explained earlier, creates vacancies. However, they may also lead to large number of skilled working leaving a business, which can affect the number of suitable internal candidate for a job. If a large number of employees are retiring in Marks and Spencer, this may lead to problems when trying employees. Marks and Spencer may make use of retirement as a means of reducing the workforce if necessary. People can sometimes be encouraged to take early retirement before 65 for men, and 60 for women if they are given a financial incentive.
What is training?
Training includes all forms of planned learning experiences and activities designed to make positive changes to performance and other behaviour. Learning is generally defined as a 'relatively permanent change to behaviour that occurs as a result of practice or experience'.
Below show all the different types of training:
Traditional training. Training to promote learning of specific facts and content, which enable improvements in job performance, such as technical skills training.
Education. The act or process of acquiring knowledge, skills and understanding, usually in school, college or university.
Vocational education. Somewhere between educational training and traditional training (e.g. apprentice training).
Management training. Activities designed to improve managerial competence.
Organisational development. Activities designed to change the way in which individuals operate within an organisation (e.g. to help them to work better with the changing culture of the organisation, perhaps through teamwork development).
What is development?
Development approaches the individual and his or her motivation from a different angle from that of training. While training is typically concerned with enabling the individual to contribute to meeting the objectives of Marks & Spencer better, personal development is more concerned with enabling individuals to develop themselves in the way that best suits individual needs. The two, it is hoped, will come together. By helping individuals to develop themselves, they will be more inclined and better able to contribute to helping Marks & Spencer meet its objectives. Below shows a diagram to represent this:
Why adopt training and development?
Marks & Spencer organise training and development programmes for many reasons. For example, training and development programmes may be introduced to:
* Motivate employees and increase job satisfaction, thereby reducing absenteeism and labour turnover
* Reduce wastage and accident rates by creating a consistent performance across the workforce
* Develop the skills of existing employees to cope with labour shortages
* Establish the most effective and efficient working methods in order to maximise productivity and remain competitive
* Reduce employee's resistance to change, perhaps deriving from the introduction of new equipment and the application of new technology.
The resources devoted to Marks & Spencer' training can create substantial costs. It is important that training needs are correctly identified and the desired standard of skill is established. The training programme needs to be administered efficiently and evaluated - the results achieved by the Marks & Spencer employees that have received training should be compared with the standard of performance it was hoped to achieve.
Employees of Marks & Spencer are encouraged to make the best possible use of opportunities for training and development, which may arise at work, in training activities and in further education. Marks & Spencer encourage movement across business and functional boundaries within the company, to develop breadth and depth of experience, and offer opportunities for career development.
5.0
Possible areas of conflict in the human resources function
This information it not available to any one outside the business, this is confidential to the business of Marks and Spencer, the reasons why this information is not given out is because other business will know the conflicts of this business and use it to their advantage.
In Marks and Spencer the human resources may have conflicts with the finance function because they are not providing enough money to be spent on training staff and also equipment.
When visiting Marks and Spencer, I found out some conflicts that had been taken place from a friend that I knew who worked In Marks and Spencer. When the store is busy sometimes more shopping tills have to be opened. The manager may appoint a staff that it not so busy such as a sales assistance, to carry out a job of cashier. The sales assistance my not like filling the role of a cashier because they feel they would rather serve customers in a different department. The sales assistance may have a conflict with the manager arguing over why they had to cover someone else position.
They can also be conflicts between staff who where waiting to be promoted as a supervisor. In Marks and Spencer if staff perform well they may be given the chance to have promotion if they have been with Marks and Spencer for a long period of time. Here a case where two staff John and David where both working in Marks and Spencer for long period John worked for 2 years and David worked for 3 years. Both staffs were waiting for a promotion as a supervisor, but there was only one position available. The promotion was given to John, John was really happy to be promoted as he was work hard and well for 2 years. David felt he should have had a promotion because he worked for 3 years and worked well during the time. There was big conflict between the manger and David he was very angry he had not been given the promotion; the manger said they didn't think he would be ready for the supervisor position. Because this conflict between the manager and David. The manger decided to refer David to a different branch. In some circumstances staff may be given the chance to be transferred to different branches and working in different department.
5.1
Evaluation of the potential conflicts between different human resources management
Marks and Spencer is a successful business. I think the way they managed conflicts within the business is a good. Some businesses that have conflict between different human resources management may sack staff if there is a big conflict. In Marks and Spencer there may be a conflict between a new employee, who may complain he made to work to hard, he may make a complain about the manager because he feels he has been pick on to work harder than other workers. How this has happened is the employee feels angry about working harder than others work in Marks and Spencer. Conflicts sometimes can be used to benefits the business, because if the conflicts have solved, then the business of Marks and Spencer can prevent any possible conflicts in the future. When the human resources function decides to employ someone, they will only employ people who have the most potential and fit their job description. People may cause a conflict between, the interviewers, because they may see them self-being better than the person who was employed by the business.
6.0
Performance Management
This is to Performance Management has been produced and published by the Human Resources Department Marks and Spencer. It is intended for anyone who manages the performance of others. Whether you are a first-time work leader or an experienced supervisor, manager, program director or department chair, this Guide will provide you with useful information and step-by-step guidelines about the performance management process in Marks and Spencer. They are involved in performance management when you:
* Establish specific job assignments
* Write job descriptions assign responsibility for strategic initiatives develop and apply performance standards
* Discuss job performance with the employee and provide feedback on strengths and improvements needed
* Conduct an annual performance evaluation
* Plan for improved performance and employee development goals.
* Identify and describe the employee's essential job functions in support of the mission of the organisation
* Identify and define strategic initiatives appropriate to the employee's essential functions which support the goals of the organisation
* Develop realistic and appropriate performance standards
* Give and receive helpful behavioural feedback about performance
* Write and deliver constructive performance evaluations
* Plan education and development opportunities to sustain, improve or build on current performance.
6.1
Definition
Performance Management: An ongoing communication process that involves both the performance manager and the employee in:
* Identifying and describing essential job functions and relating them to the mission and goals of the organisation
* Developing realistic and appropriate performance standards
* Giving and receiving feedback about performance
* Writing and communicating constructive performance appraisals
* Planning education and development opportunities to sustain improve or build on employee work performance.
Employee: The person whose performance is managed.
Performance Standards: Standards of performance are written statements describing how well a job should be performed.
Performance Appraisal: Performance appraisal is a process of assessing, summarising, and developing the work performance of an employee.
Human Resources Department: The Human Resources department on campus and Medical Centre Human Resources.
6.2
Overview of Performance Management
The evolution of the concept of performance management as a new Human Resource Management model reflects a change of emphasis in Marks and Spencer away from command-and-control toward a facilitation model of leadership. This change has been accompanied by recognition of the importance to the employee and the institution of relating work performance to the strategic or long-term and overarching mission of the organisation as a whole. Employees' goals and objectives are derived from their departments, which in turn support the mission and goals of the University.
The performance management process provides an opportunity for the employee and performance manager to discuss development goals and jointly create a plan for achieving those goals. Development plans should contribute to organisational goals and the professional growth of the employee. The planning process must also involve consideration of the emerging University environment.
The changing University environment is characterised in the Sustaining Excellence in the 21st Century: a Vision and Strategies for the University of California's Administration task group report. Demographic change, increased enrolment pressures, competition for faculty, pressures to constrain administrative costs, regulatory and policy pressures, higher transaction volumes and services expectations, and greater influence of customers or constituents all have a part in changing the way that we do our work.
6.3
The Sustaining Excellence . . . report suggests a number of ways in which the University can adapt to the new environment. The report emphasises the necessity of making the transition from a bureaucracy to a network organisation. The new organisational model emphasises a focus on decision-making and accountability at the level where the work is done, development of a service culture that rewards team performance, and integration of operations. Critical to the success of this new model is the adoption of a customer service orientation, a flexible attitude in the face of constant change, and streamlined business processes supported by networked administrative systems.
6.4
For performance managers, in Marks and Spencer this changing environment offers many new challenges and opportunities. Performance managers and their employees are increasingly being asked to become generalists who step outside of traditional narrowly defined job descriptions in support of team objectives and goals. These changes are resulting in the development of new approaches to human resource management.
6.5
The Proposed Human Resource Management Initiatives conceptual framework also underscores the vital role of education, training and development in the envisioned network organisation. In this organisation, continuous learning is a prerequisite to successful job performance and organisational effectiveness. Employees must be able to learn work, developing effective technical and people skills in order to assume new responsibilities, and keep pace with and anticipate the changing nature of work and our workplace.
For performance managers and employees alike, responding to these changes requires the ability to learn, adapt to change, solve problems creatively, and communicate effectively in diverse groups. In addition, employees must take personal and proactive responsibility for their careers to ensure future employability and advancement.
The realities of the contemporary workplace will continue to challenge existing paradigms and should be considered in managing the performance of employees in a dynamic working environment. Here is a list that employees will
Receive from their boss.
6.6
Observation and Feedback
Observing work performance and providing feedback about it should be a routine part of the performance management process. Feedback should be based on observed and/or verifiable work-related behaviours, actions, statements, and results. This type of feedback is called behavioural feedback. Effective feedback helps the employee sustain good performance, to develop new skills and to improve performance when necessary.
For additional information about observation and feedback,
Observing employee performance and offering feedback about what you see should be a routine part of the way you manage employee performance. Feedback is most effective in reinforcing or improving work performance when the employee has confidence in the basis of that feedback. And you, as the performance manager, will be more confident when giving feedback based on information that you can support.
6.7
Observing Employee Performance
From the standpoint of performance management, observation involves noticing specific facts, events, or behaviours related to work performance and the results of work performance. Observations are the raw data upon which effective performance feedback may be based. The purpose of observing employee behaviour and the results of work performance is to identify and describe it in order to help the employee be successful and continue to develop his or her skills, knowledge, and experience.
When you make observations about the results of employee performance, the output employees generate and the impact of their work, you gather additional information to make both praise and constructive feedback more effective. Observations should be the basis for feedback, and may also suggest actions, which might be taken to support, develop or improve performance.
Feedback based on observed or verifiable data is more likely to influence employee behaviour than feedback, which cannot be supported by firsthand information. It is not always possible to observe employees at work, but you should build occasions to observe their performance into your workday. In that way, you provide opportunities to understand what they do, to talk with and get feedback from them, to see employees as they perform at their best and to recognise areas in which their performance could be improved.
6.8
When You Can't Be Present to Observe Performance
When you can't be present to observe employee performance, be sure that you have processes in place through which you can learn about how they're doing. These processes should be open, fair, and understood by everyone. Options for obtaining input about performance in your absence may include, but are not limited to, the following:
* Evaluate the output and products of the employee's work.
* Have routine one-on-one meetings with your employee and include discussions of performance.
* Periodically review and discuss with your employee the standards of performance for his or her job and your expectations.
* Ask your employee to do periodic reports and share them with you for discussion.
* Obtain feedback from customers - in writing when possible.
* Do brief stand-up check-ins or phone calls.
* Ask an appropriate person who is presenting day-to-day to serve as a work leader or give the person authority to act in your stead, and ensure that everyone understands the person's role.
* Perform routine spot checks of the employee at work.
* Ask for confidential evaluations of employee performance by peers (or direct reports of supervisors). This process should be clearly understood by everyone and applied fairly to all.
6.9
Performance Appraisal
Performance appraisal in Marks and Spencer is a process of assessing, summarising and developing the work performance of an employee. Every career employee should receive a written performance appraisal at least annually using the appropriate UCSD Performance Appraisal Model. Consult the relevant policy, program or contract for the requirements specific to your employees. A meeting proceeds writing the appraisal with the employee, to provide the opportunity for mutual understanding of the appraisal process. The employee has the option to submit a self-appraisal, which will be considered in the development of the appraisal.
For additional information about performance appraisal,
Performance appraisal is a process of summarising, assessing and developing the work performance of an employee. In order to be effective and constructive, the performance manager should make every effort to obtain as much objective information about the employee's performance as possible.
The following are recommended steps for the performance appraisal process.
6.10
Performance Development Plan
Developing employee performance furthers the mission of the organisation and enhances the overall quality of the workforce, within the University by promoting a climate of continuous learning and professional growth; helping to sustain employee performance at a level which meets or exceeds expectations; enhancing job- or career-related skills, knowledge and experience; enabling employees to keep abreast of changes in their fields; making employees competitive for employment opportunities within the University; promoting affirmative action objectives; and motivating employees. Performance development plans may be considered at each stage of the performance management process.
An important component of the performance management process is development of employees' work-related skills, knowledge and experience. The development process offers another opportunity for you and your employee to work collaboratively to improve or build on his or her performance and to contribute to organisational effectiveness.
Continuous Learning
Development of employee skills, knowledge and experience is essential in today's rapidly changing workplace. In order for the organisation to remain competitive and to retain its reputation for excellence, employees should have up-to-the-minute information and the ability to use new technologies, adapt to organisational change, work in flatter organisations in which cross-functional skills and knowledge are required, and work effectively in teams and other collaborative situations. Employees, too, recognise that it is essential for them to continue to learn so that they will be effective in their current jobs and able to move into other positions or accept new responsibilities as circumstance demand.
6.11
Preparing the Plan
There are four principal occasions when preparation of a performance development plan might be considered: 1) after definition or review of performance standards, 2) as a part of the ongoing process of observation and feedback, 3) as the final element of the performance appraisal process, 4) when an employee initiates a request for education or development opportunities.
At any of these points in the performance management process, you may discuss training, education or development opportunities with your employee. Identify the specific steps to be taken and document a strategy for accomplishing these objectives. That documentation should include:
* A description of the specific steps to be taken
* The names of those who will assist the employee
* End dates for the completion of the plan's objectives
* A statement of how successful completion of the plan's objectives will be appraised.
6.12
Managing Team Performance
Definitions
Team: "A team is a small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable." From The Wisdom of Teams published by Harvard Business School Press in 1993.
By this widely used definition, an effective team is small, usually having no more than 15 members, and often between 5 and 10. It benefits from the diversity of its membership by drawing on the variety of skills, knowledge, experience and perspectives that all members bring to the team. The reason that the team exists (its mission or charge) is clearly described, understood and accepted by all members and becomes the touchstone against which priorities are established, conflicts are resolved, problems are identified and solved and decisions are made. The performance goals of the team are understood to apply to every member of the team, and accountability for accomplishing those goals is shared.
The special contribution that a team makes to an organisation is the pooling of the collective creativity, skills, knowledge and experience of its members. This benefit is only realised in a climate of open communication based on trust, mutual respect, and commitment to a common purpose. Team members commit to an approach to working together which includes specific guidelines or norms (see below), developed by team members, to help them to communicate ideas and concerns, give one another feedback, conduct meetings, solve problems and make decisions.
Much of the work that teams do is conducted in meetings at which work processes, group effectiveness, and outputs are discussed; problems are analysed and identified; and decisions related to future actions, changes, etc. are made. The meeting provides a forum and structure within which a team may work.
Natural Work Group: "A group of employees and their [performance manager] who produce a product or service." (TQM Teams Q & A: Performance Management/Employee Recognition commissioned by the Human Resource Quality Council of the U.S. Department of Health and Human Services, 1993.)
The structure of a natural work group is a traditional hierarchical one in which the performance manager is ultimately responsible for the performance of his or her staff. Employees are part of the group because they work in the same unit or department. Another name for a natural work group is a functional group, because the performance manager and employees make a product or deliver a service together. Authority and accountability are not shared equally, and the specific definition of a team given above may not apply in all respects to a natural work group.
Cross-functional Team: A group of people brought together from different functional areas to redesign a process or product or to make decisions or recommendations about a process or a product. A cross-functional team is different from a task force, because it adopts the principles of teamwork defined above, and because its charge may be either short-term or long-term. Membership will come from a number of areas within the department or organisation, but may also include suppliers or customers of the organisation. Members of Marks and Spencer may represent different levels of the organisation and different functional areas, but while they are participating on the cross-functional team, they share responsibility and authority for the way the team works together and the accomplishments of the team. The Time Data Gathering Team, IFIS Enhancement Team, and Staffing Process Team are examples of cross-functional teams at UCSD.
The degree of independent authority a cross-functional team has varies, depending on its charge. Cross-functional teams are often charged with the responsibility to implement the decisions they make and the changes they recommend.
Self-directed Work Team: A team made up of a group of employees who share responsibility for a complete product or process, or accomplishment of a significant part of a process. The self-directed work team literally directs its own work and manages its own work performance. The membership may be made up of employees from the same level or from different levels of the organisation. A manager or leader may also be a part of the team, however the role of the manager or leader is usually to provide guidance and support and to be a liaison to the organisation and other teams, rather than to control and authorise work. In this sense, the manager or leader facilitates work performance rather than directing it.
Customers: The people or groups who benefit from the services or products, which the organisation provides.
External Customers: Customers from outside of the organisation. External customers in the University include students, parents, patients, researchers, corporations, and the general public.
Internal Customers: Customers within the organisation. Internal customers in the University include faculty, staff, and student employees. Departments like Human Resources, Physical Plant Services, Mail Services, the Storehouse, as well as help desks and many other internal support staff and groups serve primarily internal customers. The success of service to external customers is dependent upon effective service to internal customers.
Quality: An organisational philosophy of commitment to provide the best possible products or services in response to the needs and expectations of internal and external customers. Organisations that adopt a quality philosophy typically restructure using a team approaches and commit to continuous process improvement (see below).
Continuous Process Improvement: An ongoing system of identifying or anticipating problems or areas in need of improvement in technical work processes, customer service, and team interpersonal effectiveness in order to perfect the quality of the products or services supported or provided. The principle of continuous process improvement is based on the belief that even excellent products and services can be made better by improving the processes that make the products possible.
Norms: Guidelines for the way that team members will interact with one another. Norms are developed by team members, and typically include statements about how they will manage their time, conduct meetings, protect and encourage ideas, listen, confirm understanding, manage conflict, make decisions and arrive at a consensus. Most successful teams establish norms in order to create and protect an atmosphere of open communication and trust.
It is invaluable to have team norms in place before difficulties in interpersonal or meeting processes arise. The norms become the basis for giving feedback constructively.
6.13
Summary of the Performance Management Process
The performance management process begins with analysis and description of the job. The performance manager identifies essential functions in the job description and the strategic mission and goals of the department or organisational unit. Standards of minimum acceptable performance are developed for the position with the employee. Additionally, standards for performance, which exceeds expectations, may be set to encourage the employee to strive for even better results.
Throughout the appraisal period (typically one year), the performance manager observes and provides behavioural feedback on the performance of the employee, focusing on helping the employee to achieve successful performance. At the end of the appraisal period, and in collaboration with the employee, the performance manager prepares, writes, delivers and then produces a final copy of the written performance appraisal.
At any point in the process, the employee and performance manager may identify needs and create a plan for employee education, training or development in job- or career-related areas.
The issues related to performance management of teams and team members arise out of the variety of reporting relationships and degree of independent responsibility that teams exercise, as well as the need to reinforce team values and efforts without undercutting individual responsibility. Adaptations of the performance management process with teams in mind may be made which are consistent with University policy and procedures.
By following the steps outlined in this Guide to Performance Management, you will find that the performance management process fosters improved communication with your employees. You will also achieve better results for your organisational unit or department.
6.14
Staff Appraisal
Concern for Competence
"Competence-based" appraisal involves managers defining required elements of competence for the job or group of jobs e.g. all jobs in Marks and Spencer and then comparing the employee's ability against these. An employing organisation, as part of its review of mission and declaration of what it does best (its core competencies - after Peters and Waterman), may define generic core competencies that the firm wants to see all organisational members displaying and striving towards. Staff appraisal schemes based on such cultural imperatives, tend to generalise on the competence statements as these must cover widely different jobs e.g. all jobs or those in an IT or marketing function. We can also find instances where schemes incorporate flexibility - enabling the appraiser at least to state the extent to which "the competence" is relevant to the job.
The design of such staff appraisal schemes reveals how managers, and human resource managers, in particular seek to determine required behaviour in the organisation. The schemes present and circulate organisational values against which the behaviour of employees can be monitored in ways that are considered objective (objectified) but which in essence are subjective, unilateral and managerial.
6.15
360° Appraisal
Surveying customer opinion is commonplace in marketing and sales in Marks and Spencer. On many occasions we return home on an aeroplane from Torremolinos and complete the end-of-holiday questionnaire. The same is true of the end of course questionnaire about the structure and pace of the course and the approach and skills of "the trainer". The trainer is expected to take note of the thumbs up and thumbs down of the feedback and to adjust their approach next time. In a commercial training situation, the customer feedback may lead to the trainer not being reengage the next time the course runs. For the end of holiday questionnaire, feedback on particular holiday resort representatives may be collated and get back to the reps concerned via their manager.
The sales and marketing aim is to canvas the extent to which the customer is delighted (or otherwise) by the quality of service they receive and thus how they perceive the supplier. All in all the survey is a quality assurance device. The supplier is continuously confronted with customer experience, expectations and concerns. Interest in such feedback has developed into a mechanism to formally gather and return appraisal feedback (hence 360° appraisal) from employees and other "stakeholders" to managers themselves. Basically, the feedback messages relate to "how well we see you managing us and what we think about it".
Thus 360° appraisal in Marks and Spencer ideas takes staff appraisal one-step further. Rather than primarily focusing one-to-one between supervisor and employee, the emphasis is on a "full circle" survey. The appraisal (survey feedback) formally requires "stakeholders", team members, customers - all those who interface with the processes of performance - to give their assessment. The purpose is, underpinned by a belief that benefits arise from such "quality analysis" and that managers should receive direct data from upward and laterals sources on their performance. This "open" feedback (opinions of others), it is argued will highlight how he/she is perceived in terms of performance in the role. So the spotlight is on the manager - and (the proposition) only good can come of it.
Of course, in a more general sense, the survey feedback can be on "the team's" performance - as seen by other teams plus internal and external clients. It can be on the organisation as a whole or just one function - say - the accounts department. This is general survey feedback. 360° appraisal tends to focus on feedback
7.0
Comprehensive 360-degree Feedback Process
These 9 steps used in Marks and Spencer forms a representative yet comprehensive 360 process. The specific steps required, by your organisation will be driven by your needs and goals.
Step 1: Determine organisational readiness for 360-degree feedback, includes the following:
* 360 awareness - understanding of 360 and how it works
* Support - belief that the organisation and manager would support development processes
* Feedback climate - I trust that the information would be used for development purposes and that people would be fair (belief in confidentiality and usage)
* Openness - willingness to give and receive feedback
Step 2: Develop an appropriate survey and process given organisational needs and objectives
* Clarify the goal of the 360-degree feedback process
* Conduct performance analysis to develop a list of skills and competencies
* Align survey items with desired process outcomes and the organisation's mission
* Select appropriate individuals to be evaluated (subjects)
Step 3: Generate enthusiasm among key decision-makers and participants
* Proactively anticipate objections
* Demonstrate the link between 360-degree feedback and specific business objectives
* Clarify costs and benefits to individuals and the organisation
* Communicate clearly and frequently about 360's purpose and progress to anyone involved or "inconvenienced"
Step 4: Ensure that participants and managers have the skills to support the process:
* Develop coaching skills for managers so that they can support the process
* Provide respondents with the skills needed to provide useful positive and constructive feedback
* Provide subjects with the skills needed to accept feedback and effectively manage their own performance
Step 5: Provide an orientation briefing
* Define 360-degree feedback
* Review the process
* Discuss confidentiality
* Discuss ownership of individual survey results and organisational summary data
Step 6: Administer the survey
* Distribute and collect surveys (on diskette, across the network or via e-mail)
* Generate and distribute individual reports
Step 7: Coach Participants in one-on-one meetings
* Interpret the results
* Develop individual goals and action plans
* Track progress and review status periodically in supplemental meetings
Step 8: Provide organisational summary data
* Evaluate trends and patterns among participants at various levels or in specific areas of the organisation
* Drive training and other organisational interventions with group summary data
Step 9: Re-conduct the survey (in four to six months)
* Quantify progress
* Develop next-level goals and objectives for participants
7.0
Personnel Effectiveness in Marks and Spencer
Marks and Spencer spend a significant proportion of their total costs on their workforce (e.g. interviewing costs, training, pay, and fringe benefits). Businesses will, therefore, wish to discover if the money that they have invested in their workforce has been spent effectively and if it has improved the effectiveness of the employees.
There are four main measures that a business can use in order to measure the effectiveness of its employees:
7.1
) Labour Turnover. These measures the number of employees who leave a business per year, expressed as a percentage of the total number of people employed. It is calculated using the following formula:
A high labour turnover rate could be a sign that the workforces have low levels of job satisfaction and motivation. This could be due to poor wages, poor management techniques, or better remuneration packages being offered by competitors. This high rate will inevitably lead to the business having to spend a large amount of money on recruitment and training of new employees.
2) Absenteeism. These measures the proportion of the workforce who is absents from work in a particular period of time. It is calculated using the following formula:
Ideally, the business would wish the figure to be as low as possible, since a high figure could indicate that the employees have low rates of morale, job satisfaction and motivation.
A high rate will inevitably lead to the business having to spend a large amount of money on training and paying temporary workers who are performing the jobs of the absent employees.
3) Labour Productivity. This reflects the efficiency of the workforce, and it is measured by the amount of output per worker. It is calculated using the following formula:
It can be argued that labour productivity is the most important measure of employee effectiveness, since it directly affects the average cost of production and, therefore, the competitiveness of the business.
An increase in labour productivity will benefit the business since it means that more output can be produced for a given amount of inputs, hence the production cost per unit will fall.
4) Waste levels. 'Waste' products refers to lost and damaged raw materials, poor quality output which has to be reworked, and output which has to be discarded due to its poor workmanship. It is calculated using the following formula:
If a business has a high percentage of 'waste' products, then this could be due to a poorly trained workforce with low levels of both motivation and job satisfaction. In this case, the business should ensure that the employees are all adequately trained for their specific tasks, and investigate any other reasons for the poor quality of the output.
It is vital that the reasons for this are discovered quickly, since the effect on customer loyalty and reputation could be disastrous if the business supplies poor quality output to its customers.
7.2
Performance evaluations
Performance evaluations, like other personnel management functions, must be job-related. One of the most job-related approaches toward performance evaluation is known as behaviourally anchored rating scales (BARS). BARS has a relatively low rate of rater error and that BARS is relatively effective in fostering communication between employees and supervisors about job performance's
BARS are based on statements (behavioural anchors) about job behaviour and worker activity that is under the control of the employee being rated. These statements are attached to scales in order to rate performance as good, fair, or poor.
The development of a BARS system relies on a panel (or panels) of incumbents, supervisors, clients, and others familiar with the job. For this exercise, using such a panel is not necessary or practical.
7.3
Exploration of human resources function
The human resource function can employ the right potential staff. Human resources managers can contribute and have an effective to how the business performs, and competitiveness of the business. For example if staff have been working over a year in Marks and Spencer, they may feel they need a pay increase. The human resources management can help by contracting the finance department about staff cost. If staff are paid well they perform better because they ah higher moral and they feel a belonging need to Marks and Spencer. If staff perform well the business perform well and it becomes competitive. The human resources management can help also by development of staff. The reason why it's important for the human resources management, because they manage how well staff can perform.
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