Produce an analytical report on how a medium/large sized business manages its Human Resources.
Human Resources
By William Goh
3A3
AVCE Unit 4
Ms Masterson
Introduction
In this assignment I have been asked to produce an analytical report on how a medium/large sized business manages its Human Resources. I have chosen Marks & Spencer as my business to investigate. I will be looking at the importance of the Human Resources Management to my business providing a comprehensive overview of the following four functions with an in-depth focus on one of the functions. The four functions are the following:
* Human Resources Planning
* Recruitment and Selection
* Training and Development
* Performance Management
The Human Resources Department will vary depending on the size of the business. Marks & Spencer Plc, the company I have chosen to profile are a large organisation. The business I have chosen is Marks & Spencer, which is a large retailer, operating on a national basis.
The main purpose of Marks & Spencer Human Resource Management is to ensure the short and long-term development and use of employees to obtain the greatest benefit of their abilities thus contributing to organisational goals and objectives.
E1
The responsibilities of Marks & Spencer's Human Resources function include the following:
* To forecast future business manpower and skills requirements
* Gaining the competently skilled staff possessing the necessary experience through the process of Recruitment and Selection
* The provision of employment advice and information
The responsibilities covered by the Human Resources function in a business varies from organisation to organisation but essentially the following functions are part of the Human Resources Department applicable to all business with Marks & Spencer being no exception.
Marks & Spencer being a large organisation have a whole specialist division especially dedicated to employee matters and workforce welfare. The role of Marks & Spencer Human Resources Department is to manage human resources within the organisation.
The Functions of the Human Resources Department include the following:
* Predict the necessary manpower needs and skill requirements of the business
* Recruitment and selection of prospective employees with the necessary skills and experience to be effective in achieving the business's goals and objectives
* The provision of employment advice and information regarding staff rights influenced by the pressure of the trade unions and the various employment bodies established to encourage and promote awareness of employee rights and the enforcing of them through the relevant acts of legislation pass through parliament
* The human resources department has the responsibility of informing and notifying new employees of their terms and conditions of their employment
* To successfully implement changes in the terms and conditions of existing workers e.g. due to the introduction of modernised technology, relocation of retail premises or internal structural reorganisation
* To provide the necessary resources in developing and promoting induction courses and further development training for the workforce
* The efficient handling of staff promotion and transfers of employees to other sites or other organisations
* To have a clear and unambiguous staff appraisal procedure with the aim at developing employees and efficiently administered by capable managers or supervisors
* To provide official grievance procedures in handling and dealing with employee complaints
* The efficient and effective handling of disciplining and dismissing employees
* The implementation of non-discriminatory legislation
* The effective provision and regulated safety procedures
E6
Human Resources Planning
The Human Resources function I will explore in depth is Marks & Spencer Human Resources planning primarily concerned with the organisation possessing sufficient numbers of employees and of the right calibre.
The four main purposes of the Human Resources Planning function are:
* Marks & Spencer establish clear links between organisational objectives and Human Resources Plans so that successful co-ordination of the two can be deployed
* The efficient control of employed staff and costs by Marks & Spencer
* To give the appropriate quality of work to the employee of most value to the business
* The flourishing of the Equal Opportunities policy within Marks & Spencer therefore creating a complete profile of internal staff
The Human Resources planning function main activities are carried out through four key stages. Firstly, stock taking mainly responsible for the number and skills of staff within Marks & Spencer itself.
The use of a Job Analysis aims to gather a comprehensive profile of all the posts in the Marks & Spencer organisation illustrated by the skills and duties of these jobs. Performed through the tools of a Job Description and Person Specification leading to a skills audit making available supporting information in the form of a survey of all existing staff confirming the current competencies of the workforce in terms of skills, qualifications and experience.
A performance review is also carried out as a consequence to establish or monitor employee performance, thus identifying staff potential and where staff is lacking in terms of training needs.
In a national retailer such as Marks & Spencer it is extremely important the human resources planning function plans and identifies the human resources requirements e.g. if Marks & Spencer install a new integrated computer network how many new staff would be required to operate such technology?
The result being the company would therefore have to efficiently recruit sufficient staff to successfully function properly. On the other hand less staff may be hired resulting in too few employees overstretching thus causing ill feeling, de-motivation and possibly costly legal disputes.
Internal & External Plan for Human Resources
Marks & Spencer will require a great deal of data and other information from its internal workforce and externally from the availability of the skilled labour.
Internal Sources of Information
Over time Marks & Spencer will gather a comprehensive profile on its employees past and present usually including:
* Different criteria from which to differentiate the workforce (grade, job role, age, skills, qualifications and time spent with the organisation
* The number of employees departing the organisation within the next year taking into account age, qualifications and skills either through resignation or retirement or even dismissal
* The number of staff joining the organisation within the next year
* The reasons for staff leaving the organisation in addition to the time spent with Marks & Spencer
* The average time taken off by the workforce due to sickness, maternity, bereavement or other factors
Calculating Labour Turnover
All the factors mentioned are used to determine the rate of labour turnover. This is a measurement of the rate existing employees leave Marks & Spencer. Employees are on average spending less time in employment with Marks & Spencer if the rate of labour turnover increases.
An excessive level of labour turnover may incur Marks & Spencer Human Resources planning function additional expenditure. This could include:
* Recruitment & Selection which substantial financial and manpower resources will be allocated to assist it improvements
* The vacant posts covered by existing employees working overtime means extra payments in terms of wages
* The new inexperienced employees may produce less output and poorer quality work thus higher costs will be spent on this problem
* Training & Development expenditure will rise dramatically as new inexperienced employees enter the organisation
* Incentive payments will be offered to linked to length of stay with Marks & Spencer in an attempt to increase staff loyalty
Absenteeism
A drain of Marks & Spencer financial resources must come from workplace incidents and ill health situations. This also impacts on output and thus revenue of the organisation. These problems may be linked directly to poor working conditions in the workplace. Inadequate training may be influential in causing injury in addition to constant pressure on staff possibly leading to high levels of stress, which could affect on absenteeism.
E2
As a large organisation Marks & Spencer will be influenced by both national and international labour costs and trends. Thus internal staffing resources must be continually analysed supported by the monitoring of the availability of the external workforce to meet Marks & Spencer manpower planning needs.
If Marks & Spencer fails to research the potential employee at both local and national level then as a consequence may result in the risk of not being able to satisfy organisational labour needs thus affecting productivity and profitability of Marks & Spencer.
Marks & Spencer require careful planning in order to ensure that the Human Resources Department has the right number of employees suitable to meet organisational needs and objectives.
In the areas where Marks & Spencer operate a good understanding of the labour market is essential in the accomplishment of recruiting and retaining suitably skilled staff.
External labour market information:
The human resources manger of Marks & Spencer needs to understand about the labour market and the effects that it could have. The external labour market for any business is made up of potential employees, ...
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Marks & Spencer require careful planning in order to ensure that the Human Resources Department has the right number of employees suitable to meet organisational needs and objectives.
In the areas where Marks & Spencer operate a good understanding of the labour market is essential in the accomplishment of recruiting and retaining suitably skilled staff.
External labour market information:
The human resources manger of Marks & Spencer needs to understand about the labour market and the effects that it could have. The external labour market for any business is made up of potential employees, locally, regionally or nationally; whom have the skills and qualifications required at that time.
Marks & Spencer will be at an advantage if the Human Resources Department is aware of the figures of supply trends for past, present and the future. The figures of supply are important as they show an understanding to the local or national supply conditions. Marks & Spencer also value the local wage rate and income as important indicators in attracting the right employees.
There are a number of different factors that affect the size and nature of the labour market. There are these factors, which need to be taken into a lot of consideration by the human resources manager: -
Local employment trends:
The importance of local unemployment figures to Marks & Spencer cannot be understated as these figures of the unemployment give the company an indication of the general labour availability and whether it would be difficult or not to recruit new staff. Looking at the local unemployment is also a good factor to look at because you are able to see which organisations have been laying off workers.
A review of local employment trends can be seen as an advantage to firms such as Marks & Spencer, having the choice of people who have been made redundant, as they may have the right skills, or even have skills that are occupational or that can be transferable towards similar work within the business. The study of local trends can show whether there is a demand for a particular type of job or not.
Local skills shortages:
There is always a decline in a particular job no matter where an organisation like Marks & Spencer Plc is based; this is due to the redundancy of skills required to do that job. The emergence of new skills and capabilities is also occurring as the same time and demand for such specialised skills will increase greater than supply.
Skills shortages occur as a consequence of this factor, and local employers may thus experience considerable frustration. People employed in areas of skills shortages will find their wages being increased due to employer's desires to retain skilled staff.
Therefore in order for organisations and businesses to retain and recruit such scarce staff hyper-inflated financial incentives will be required to attract the necessary calibre of worker. This is all an implication of the fierce competition between businesses to have the most qualified and skilled workforce.
C1
To interpret the main external labour market factors that affect Marks & Spencer Human Resources planning these are the considerations:
(1) Local Employment Trends
According to national statistics there are employment trends in the United Kingdom in relation to sector. Over the past decade a significant increase in employment of service industries this was synchronized with the decline of traditional manual occupations such as mining.
(2) Local Skills Shortages
Local skills shortages may account for the difference in wage levels or the wage differential. There is a range of reasons for this and the main ones are as follows:
* There may be shortages of workers with the desired skills and qualifications therefore there will be increased competition in addition to higher wages
* Labour that is high in demand will result in greater competition and higher pay
* Wages will be lower when there is little demand as well as a surplus of potential employees
* Staff in dangerous occupations and or unsociable working hours are compensated through improved earnings
* Professions specifying longer training periods and or higher qualifications will be rewarded through enhanced remuneration
A range of factors affects the size and nature of the labour market. To successfully interpret and fully understand the relevant labour market information of Marks & Spencer an examination of the variants determining the labour market must be done.
Trends in the size/characteristics of the working population
The age distribution within the United Kingdom and the changes that occur will affect the human resources planning of Marks & Spencer and indeed other profit-motive organisations.
The ageing population of the United Kingdom is a concern for Marks & Spencer with there being fewer school leavers and young people available for employment. Based on my interpretation of this labour market information is that with older people living in the United Kingdom not only does this mean?
Compared to how Marks & Spencer use this external labour market factor is that the company looks to other sectors of the population for employment following the trends and iniative taken by companies such as B & Q and Do It Yourself Stores.
Competition for Labour
This is the situation in which extreme competition exists between different businesses operating within the same industrial market. This competition is caused by high demand for workers with particular skills and therefore there is a shortage in supply meaning that it is necessary for organisations to take step such as financial incentives or other benefits to attract the most wanted worker.
The overall level of economic activity
The general level of demand for goods will be determined mainly by whether the economy is in a period of boom or recession and therefore in times of boom or recovery consumers will have increased amounts of disposable income to spend thus the demand for goods and services rises.
Education and training opportunities
The overall skill of and incoming labour into the labour market will be influenced by the educational and training opportunities available to people.
The effects of government policies
There are a number of ways in which government legislation can affect the labour market.
A1
The relevant market trends relating to the ongoing resources planning of Marks & Spencer are trends such as:
Local Employment
This relates to Marks & Spencer, as the state of the local labour market is important to ongoing human resources planning. Marks & Spencer needs the essential information regarding the areas in which the company operates detailing the current supply of labour in the general area.
An argument supporting the use of local employment factors is a document published in December 1999 indicating that to divide the United Kingdom into the north and south would be an inaccurate simplification of the country. According to the report the importance of creating a comprehensive profile of the local employment market cannot be understated and illustrated by dividing parts of the country by a significantly prosperous south with areas of poverty and a relatively less prosperous north with areas of prosperity.
In the year 2000 there were regional gaps within the job market concerning unemployment rates. These levels were the lowest for 20 years although; contrary to the Northeast the Southeast had considerably lower unemployment at 3.7% compared to 10.1%. This information impacts on the Marks & Spencer human resources planning as a retail outlet in the North-East of England would have the luxury of nearly three times as many available local workers.
Therefore having the implication on the human resources department having a wide choice of potential candidates to fill a vacancy whereas a Southeast based branch would as a result of low unemployment have a far limited selection of prospective employees hence a reduction in the availability of skills and experience.
Unemployment
According to Government Official Statistics the unemployment Rate remains unchanged at 5.0%. To support Marks & Spencer the relatively low rate of unemployment illustrates that low-skilled manual staff are less easily available.
On the other hand it may mean that highly skilled more able workers are available with just the obstacle of attracting these prospective employees to the organisation. This therefore relates to Marks & Spencer Human Resources Planning as sufficient numbers of employees with the desired qualities must be retained and recruited within the company to achieve future organisational aims and objectives.
For the last three months leading up to August, the survey data indicates a fall in working age employment rate from 74.7% to 74.5%. Working age is defined as 16-64 for men and 16-59 for women.
Over the previous three months a decrease of 9,000 reduced the number in employment to 27.9million. 4,000 increases in males in employment to 15.06million occurred simultaneously as 12,000 fewer women in employment to 12.85million.
The fall in female employment may the aftershocks of British Telecom's intentions of restructuring the business's call centre to India and parts of Southeast Asia due to the differential in operating costs between the countries. This relates to Marks & Spencer Human Resources Planning as it means that women are readily available in the external labour market.
There was no change in the unemployment rate with increases in average earnings. The number of people claiming Job seekers allowance fell in September. This relates to Marks & Spencer Human Resources planning this means that there are more people in employment thus the labour market availability for Marks & Spencer is narrowing.
This month according to the labour market trends assessment employment is remaining constant while unemployment is decreasing slightly. This relates to Marks & Spencer. There was moderate growth in average earnings in relation to Marks & Spencer, as pay is not rising as fast as profits growth.
A rise of 13,000 full-time workers to 20.7million was offset by a fall of 21,000 part-time workers to 7.2million. A total of 899.6 million hours was worked on average per week reflecting a rise of 4.1million hours.
The three months leading up to September 2003 showed an average of 626,300 job vacancies. A year earlier 4,200 more vacancies existed. For every 100 employee jobs there were 2.4 vacancies.
A decrease in the redundancy rate saw 6.3 redundancies per 1,000 employees compared to 7.1 per 1,000 in the last year. Apart from manufacturing there were falls in the redundancy rate across all sectors.
Average earnings growth is measured by the three-month average year-on-year growth of the Average Earnings Index (AEI).
Average Earnings
Public sector pay growth rises
The three months to August 2003 indicated that the annual rate of growth in average earnings rose from 3.3% to 3.4%. There reflected by the differences in growth between private and public sectors.
In the year to August 5.6% was the pay growth in the public sector from 5.1%. The rise is as a result of pay settlements that have been paid in 2003 than in 2002. The payouts covered areas of health, social work and public administration.
In comparison, the private sector experienced pay growth of 2.9% in the year to August, which was unchanged from July. The largest pay growth gap is evident from statistics since November 1992 between the public and private sectors. A reason for the decrease in private sector earnings growth is changes in the level of bonuses and the timing of incentives. In the year to August 2003, retail prices increased by 2.9 per cent, below the rate of earnings growth.
Recruitment & Selection
E3
The quality and contribution of a company's workforce is the most important determinant and influential factor in the success or failure of organisational objectives.
Therefore Marks & Spencer must have an efficient recruitment and selection procedure to ensure the highest quality of employees. This is especially imperative for national retailer Marks & Spencer as the business is operating within a labour-intensive sector of the economy.
In recruiting staff there are key recruitment documents the main ones being the following:
Recruitment Document
Features
Job application
* Information about the applicant regarding personal attributes, qualifications, experience and so on
* Will be compared with the person specification
Curriculum vitae
* Personal details
* Education
* Qualifications
* Work experience
* Interests
* Ambitions
Letter of application
* It is a brief and concise straight to the point recruitment document
* It should have non-grammar, punctuation and spelling mistakes
* Split into four main paragraphs
* 1st being how and why the applicant is applying for the job
* 2nd the applicant's personal details
* 3rd reasons why applicants want job and to work for the company
* 4th
The various factors to be considered when planning to fill a vacancy are the following:
Person Specification
This is sometimes referred to as a personal profile providing the necessary standard to do a job efficiently. A person specification details all the attributes and characteristics required.
How this information is set out follows the main approach listing requirements under broad headings. The plan also known as the "six point plan" is as follows:
* Physical Make-Up
The characteristics and vocal skills of the applicant
* Achievement
The required education, qualifications, experience of the applicant
* Specific Skills
Necessary special skills or talents essential of the prospective employee
* Interests
The types of pastimes or hobbies that the ideal applicant would follow
* Personality
The type of motivation, temperament and attitude an applicant would possess
* Personal Circumstances
The ideal personal and domestic arrangements of a potential member of staff
Job Description
This recruitment document usually contains two types of information. A summary describing the duties involved in addition to necessary behaviour to carry out the essential duties and tasks effectively.
Once the job description and person specification are completed the next stage is usually to attract potential personnel fitting the company's person specification will be done through the method of job advertising.
There are a number of factors to be considered when planning to fill a vacancy and carrying out interviews. To ensure attracting the most suitable of candidates for the job, the words should be chosen meticulously in job advertisements.
The four main features that a prospective applicant looks for in job advertisements are:
* A description or details about the organisation
* A coherent and logical explanation of the job including duties and responsibilities
* The location of the job or where the company is based
* The salary scale or remuneration package including perks such as subsidised meals
Another factor to consider is the cost of advertising especially for senior positions within the Marks & Spencer organisation in particular the management as it is essential that the company attracts the best candidates for the running and future success of the business. A quarter-page black and white advertisement in the Sunday Times costs in the region of £12,000.
After these have been considered carry out interviews from a short-list of candidates these factors to be dealt with is that firstly the candidate chosen for the interviews should be in the human resources department the most suitable applicant for the job.
In the progress of the interview the interviewer aim should be to investigate and delve into the candidates background and find out all relevant information and their experience. The information is more likely to be provided if the interviewee is put at ease and is comfortable so, every effort should be made to avoid intimidating the candidate.
Another factor for the Marks & Spencer Human Resources manager to consider is to allow the candidate to do the majority of the talking. Therefore the manager can evaluate the candidate by listening and observing body language. Clues about honesty, personality and levels of confidence can be gained from body language.
A factor the must be regarded as important is that all candidates must be interviewed before a decision is made thus allowing all short-listed candidates an opportunity to express themselves accurately. The following are considered good techniques and factors to be considered when interviewing:
* A seating arrangement beneficial to both parties for example one that does not put sunlight in the candidates eyes or the chair is lower than the interviewer
* A warm welcome of the candidate is essential to start the process positively
* If there is an interview panel then an introduction is required
* The purpose and structure of the interview must be explained so as to allow the candidate the knowledge of what to expect
* If any background information is necessary then it must be given
* Honesty about the job and what is required
* To put the candidate at ease start with easier or familiar questions covering relevant experience or qualifications thus resulting in a relaxed atmosphere
* The use of open questions is essential to enable the prospective employee to talk in depth about themselves
* The personal prejudices of the interviewer must be forgotten as this does not determine suitability to the vacancy
* An interview plan should be kept to insistently
* Irrelevant questions should be avoided
C2
Key recruitment documents are the Job application, Curriculum vitae and the letter of application. The relevance of a job application is to indicate and facilitate the gathering of information about a potential candidate thus giving the impression of a person's attributes, qualifications and experience.
The purpose of the application is to enable Marks & Spencer to short-list candidates by comparing this information to the person specification produced by Marks & Spencer itself.
A strength being that promising candidates are requested to attend an interview therefore contributing to the exclusion of less suitable applicants hence Marks & Spencer will send a letter of non-acceptance informing the unsuccessful candidate the reasons why they were not chosen to be short-listed.
A criticism can be that the interview process is expensive both in terms of time consummation but also is also disadvantageous because the manager is as a result preoccupied possibly disrupting the manager's normal duties.
The importance of a clear elimination process cannot be understated and thus to minimise costs and to ensure that false expectations are not built up by less suitable applicants.
The benefit of a completed application form is seen as part of the contract of employment. Put simply any false claims or deliberate misinformation by the potential candidate will render the contract of employment void therefore resulting in an instant dismissal.
A curriculum vitae is also an essential part of recruitment documents. This document is submitted to Marks & Spencer Human Resources Department after the applicant has done careful preparation of the document. An advantage of curriculum vitae is that the Marks & Spencer as the prospective employer can gain an insight into a candidate's details.
Any information that may persuade Marks & Spencer to grant an interview is most likely to be included in a Curriculum Vitae (CV). The corroboration of what has been claimed by the applicant can be confirmed by at least two referees one of which a character and work reference therefore providing a useful tool in terms of value and skills the candidate can offer the prospective employer.
Letters of application are useful as it is a letter from the prospective employee explaining why in their view they are the most suitable candidates for the job.
The value of a letter of application is illustrated by the fact that it is structured in the way the applicant believes is appropriate supporting the view that it is a useful selection tool.
The constraints are that when used as an assessment method a person of good letter writing abilities will be selected with not necessarily the most suitable candidate. The letter writer may leave out important information although; the subsistence of Curriculum Vitae can solve this problem.
It is debatable whether these shortcomings are significant as employers as shown by the frequency of their use expressly request them.
Training & Development
E4
The various key aspects of Marks & Spencer's Training & Development programme are identified as the following:
Induction Training
The introduction of new employees to the organisation and that there is the necessary information available to enable to carry out their work effectively to company standards is the main purpose of an induction programme.
Mentoring
The opportunity to learn new skills is an advantage of mentoring in addition to the company gaining a good working relationship with the workforce. A more experienced and qualified employee is allocated to younger employees with the purpose of advisement and concern answering.
Coaching
Informal meetings take place between employee and manager
Apprenticeships
Young people are given a nationally recognised qualification in addition to gaining valuable work experience.
In-house Training
These are often referred to as on-the-job training
External Training
This type of training is mainly used by smaller organisations than Marks & Spencer Plc
The importance of the training and development to the performance of the business makes it an integral part of manpower planning with the continual review, and the updating of the training programmes.
C3
There exists a relationship between Marks & Spencer's Training & Development programme and its management function. As a competitive business Marks & Spencer links performance reviews and evaluations to training and development.
A junior manager conducts Performance reviews every six to twelve months with an ongoing pay review. During this performance review the managers are given the opportunity to show gratitude to the efforts of the employee.
The majority of the reviews are associated with "performance related pay". This leads to the supervisor examining an individual's performance in relation to measurable expected targets of how an efficient employee should be performing. This will therefore determine whether a pay increase is appropriate.
Marks & Spencer will improve staff wages except for the poorest performers in the performance review. The sole purpose of such action is to motivate and encourage employees to work harder for the organisation.
The Training & Development at Marks & Spencer and the performance management function may be influenced by different motivational theories. Marks & Spencer Human Resources Department may be influenced by Frederick Winslow Taylor's idea of "Scientific Management" especially in store staff concerned mainly with manual duties illustrated by Taylor's theory based on factory floor workers similar to a Marks & Spencer shop floor.
This especially the case for store staff who are concerned with mainly manual duties which can be illustrated by Taylor's theory based on a similar environment a factory floor workers.
Marks & Spencer managers tell and plan the workforce what to do which can be compared to Taylor's theory. The Marks & Spencer business is very efficiency with a turnover of £8,077.2m compared to 7,619.4m in 2002 thus giving the impression of greater efficiency year on year. Marks & Spencer shop floor staff does repetitive tasks, which by being repeated many times makes the employees more efficient directly the same principle applied by Taylor.
The repetition of tasks involved in the Marks & Spencer organisation include jobs like till work, shelving and customer service which is done on a constant basis would is most likely to therefore lead to employee efficiency touched by "Scientific Management" theory.
Taylor devised an incentive payment system, which increased workers pay depending on how much was produced. This can be applied to the Marks & Spencer appraisal or performance review system that increases pay on a performance basis.
Taylor's theory was purely based on financial incentives that Marks & Spencer cannot fully incorporate as this was an assumption that workers were mainly motivated by money is unrealistic. Therefore Maslow's hierarchy of needs has also had some influence on the operations of Marks & Spencer human resources department.
According to Maslow the workforce have particular needs, which rank in a certain order.
Maslow's hierarchy of needs had five categories:
Physical Needs
The essential for human survival including food, water and sunlight
Safety Needs
These needs for peace of mind such as an organised world, stability, security and shelter.
Social Needs
These essential for the feeling of integration into society including belonging, friendship and love.
Esteem Needs
Essential for recognition of staff's hard work including things like status, confidence and respect.
Self-Actualisation
This is the most important need according to Maslow to develop one's potential and self-fulfilment.
According to Maslow this human behaviour motivator is similar to Marks & Spencer as the physical needs is done through the discounted lunch scheme providing inexpensive food for staff. The safety need is fulfilled through a Marks & Spencer legal employment contract, which at least provides security of job for the duration of the contract thus supporting Maslow's safety need.
The Marks & Spencer organisation within has an element of staff rapport indicating the influence of Maslow's social need. Marks & Spencer runs an extensive internal recruitment programme put simply it applies Maslow's esteem need to the modern working world.
As employees progress through Marks & Spencer their self-actualisation needs will be steadily realised. By being influenced by Maslow's hierarchy of needs this has the implication of illustrating Marks & Spencer's commitment to retaining a satisfied workforce and as a consequence encourage productivity through these non-financial means of motivation.
Self-Actualisation is the most important need, which Maslow developed as one's potential and self-fulfilment.
Strength of Maslow hierarchy of needs is the human behaviour motivators he suggested which are similar to Marks & Spencer human resources departmental objectives.
Another influential writer Frederick Herzberg development of the two-factor theory may of influenced Marks & Spencer training and development programme as it has the function of both increasing worker satisfaction and efficiency similar to Herzberg's theory.
Douglas McGregor at some levels of the management in the performance review.
Performance Management
E5
The main purpose of performance Management is to allow businesses to remain competitive within the market in which they operate. Effective management control must be exercised at both individual and organisational levels to achieve efficiency in Performance Management.
In order for managers to monitor the performances of their subordinates and for the individual employee to know the current status of their competencies a number of techniques and processes are essential to be properly used within the Human Resources Department.
Performance Monitoring, a function of Performance Management provides valuable information regarding the identification of future skills development, opportunities for promotion and the detection of deficiencies in skill or knowledge affecting an employee's effectiveness in a particular area.
Marks & Spencer approach to Performance Management may be influenced by Abraham Maslow's Hierarchy of Needs motivational theory in the following ways:
* Marks & Spencer offer excellent opportunities for suitable candidates to internally promoted which Maslow suggested that employees strive to progress up the hierarchy
* The company provides above average wage pay and decent working environment in all retail outlets throughout the United Kingdom therefore it satisfies employees Physiological needs according to Maslow
* Security needs although, not fully met by Marks & Spencer does influence how the organisation tackles the problem of job security as the retailer offers a comprehensive voluntary redundancy package in the event of recession within the industry. Pension arrangements are available with a subsidised company pension meeting the Maslow's other security need
* Maslow's social needs will be satisfied on top as Marks & Spencer regularly send employees on training programmes in social environments. This encourages personal development and make members of staff feel a sense of belonging
* The majority of company staff are delegated with some levels of responsibility and duty and so may be influenced by Maslow's self-actualisation need
A2
To fully understand the contribution that effective human resources management can make to improve the competitiveness of Marks & Spencer a simple way to define its importance is that people are an important resources to businesses. It is important that Marks & Spencer train and motivate their workforce properly in order to achieve the strategic long-term decisions, which form the basis of organisational objectives.
All four functions of the Human Resources Department contribute to the competitiveness of the Marks & Spencer organisation. Firstly the function of Human Resource Planning will determine how Marks & Spencer will proceed with a particular course of action. The course of action will assist the organisation in ensuring the required number of staff, at the right time and place leading to the efficient running of the business.
The accurate forecasting necessary for this function will therefore make Marks & Spencer has the required number of staff to meet manpower needs and thus resulting in increased competitiveness over rivals as Marks & Spencer have the right number with the right qualities and experience.
Being in a labour-intensive industry that is retailing Marks & Spencer having the right staff will increase productivity and turnover of stores thus generating ever greater profits which can used for continually expansion, reinvestment into network premises or the higher dividend reward to shareholders.
The Human Resources Planning function will mean that there is a mixture of youth, experience and energy within the organisation. This acts to make Marks & Spencer effectively a forward-looking enterprise within the retail industry in which the company operates. All the qualities mentioned would advance the organisation's competitiveness in comparison to rivals at a disadvantage once marks & Spencer has employed such a range catering for all consumer types.
The effective contribution the Recruitment and Selection function makes to Marks & Spencer's competitiveness is immeasurably. However the fact remains that no matter how sophisticated or advanced the technological means of production the company's uses without a good quality workforce Marks & Spencer will be adversely affected and will therefore ultimately fail.
Marks & Spencer's competitiveness is further enhanced by an efficient recruitment policy supported by a competent selection process to ensure the workforce has the necessary skills and experience and the value of which is increased by further development of these current competencies.
The Recruitment and Selection function of Marks & Spencer is important for labour intensive service industries such as retailing as a failure to maintain standards both in terms of skills and attitudes could potentially have major repercussions both on the productivity of staff and the morale of the workforce thus affecting company competitiveness.
Another function performed by the Marks & Spencer human resources department is Training and Development it is important to continually update and advance training programmes in order to developed and increase the workforce's skills capabilities. This will result in Marks & Spencer having the most qualified and experience staff to cope with any change in the external labour market.
A3
The Potential Conflict of Interest between Human Resources Functions
Employees of Marks & Spencer should avoid activities or situations, which may result in a conflict of interest or the appearance of conflict. Staff members must not use their organisational positions to influence outside organisations or individuals for the direct financial, personal or professional benefit of themselves, family members, or others with whom there is a personal relationship.
An employee may decide to participate in some outside activity or business primarily because it provides financial or personal gain. In those instances the employee's first obligation is to the Marks & Spencer company, and the employee must avoid any situation where either the extent or the type of activity could, either directly or by appearance, limit the employee's impartiality or effectiveness in fulfilling his or her job responsibilities.
Employees should be sensitive to any situation where there is the potential for conflict of interest or the appearance of conflict. Judgments on whether a conflict exists can be difficult to make and staff who are uncertain should consult their supervisors or their human resources region manager.
The potential for conflict of interest exists across a wide range of activities. The following specific policies provide guidance for avoiding conflict of interest.
References & Bibliographies
Barratt, M. & Mottershead, A. (2000) "AS and A Level Business Studies", Longman, Turin.
Blanch, S. & Denby, N. (2000) "Vocational A-level Business", Hodder, Bristol.
Business Lawcards (2002) "Employment Law", Third edition, Cavendish Publishing Limited, London.
Bywaters et al (2000) "Vocational A-Level Business", Pearson Education Limited, Longman, Singapore.
Carey, P. (2000) "Data Protection in the UK", Blackstone Press Limited, United Kingdom
Fardon, M. et al (2001) "Advanced Business" Edition Osborne, Bath.
Floyd, D. (2001) "Business Studies, GCSE Success", Letts Educational Limited, London.
Floyd, D. (1999) "Business Studies, Revise GCSE", Letts Educational Limited, Great Britain.
http://www.acas.org.uk
http://www.worksmart.org.uk
http://www.marksandspencer.com
http://www.accel-team.com
http://www.statistics.gov.uk
http://www.peoplemanagement.co.uk
http://www.timesonline.co.uk
http://www.investorsinpeople.co.uk
Parsons, R. (2000) "GCSE Business Studies, The Revision Guide", Coordination Group Publications Limited, Newcastle upon Tyne.
Raffo, C. et al (2000) "Business Studies", Second edition, Causeway Press Ltd, Italy
