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1. Human Resource Management (HRM)
The policies and practices involved in carrying out the “people” or human resource
aspects of a management position, including recruiting, training, appraising, and
compensating employees, and of attending to their labor relations, health & safety, and
fairness concern.
Human Resource Management is the process of acquiring, training, appraising
and compensating employees, and attending to their labor relations, health and safety,
and fairness concerns.
According to Decenzo and Robbins:-
"Human resource management is a process consisting of four functions-acquisition,
development, motivation and maintenance of human resources."
According to Gary Dessler:-
"Human resource management refers to the policies and practices one needs to carry
out the people or human resource aspects of management position including
recruiting, screening, training, rewarding and appraising."
Human resource management is a function in organizations designed to maximize
employee performance in service of their employer’s strategic objectives.HR is
primarily concerned with how people are managed within organizations, focusing on
policies and systems. HR departments and units in organizations are typically
responsible for a number of activities, including employee recruitment, training and
development, performance appraisal, and rewarding. HR is also concerned with
industrial relations, that is, the balancing of organizational practices with regulations
arising from collective bargaining and governmental laws.
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2.1 HR Management in the 21st Century: Challenges for the Future
Technology
Technology means the ways and methods of living and work. These methods and ways
have been changed by the modern technology. The information technology has
changed everything. It touches such information and ideas which are essential for the
economy. Economy has large amount of capital that resides in people. There are some
other assets which are physically owned by the people but Human Resource as an
essential asset has no true ownership. The only way to develop and retain such human
resources is create such an environment which compete them to stay in the
organization and it is a main challenge for HRM.
Marks & Spencer has begun the UK's largest in-store trial of radio frequency
identification (RFID) technology. The move follows last year's successful
implementation of around 3.5 million RFID tags on delivery trays in M&S's food
supply chain. If successful, it could act as a watershed for RFID, which so far has only
been tested on a small scale in-store in the UK by retailers such as Tesco and
Woolworths. Also use of HR software makes them work efficiently.
E commerce
Electronic commerce means to perform the trading activities through internet.
Internet is the foundation for a new business order. It has changed customer’s
expectations about convenience, speed, price and services. The people who make on-
line business possible are the knowledgeable workers. Now such on-line business has
become a challenge for HRM and the HR Managers makes several strategies to take
procedure over control on-line business. Such HR Managers try hire & develop human
resources who have the ability to attract, motivate, retain, and to serve as maximum
customers as possible.
M&S is investing 1 billion pounds on logistics,
IT and systems. It launched a new web
platform in February and is ramping up a
new distribution centre in central England to
fulfil all online orders. It hopes that will help
reverse nearly a decade of market share
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decline at home and pay dividends abroad as it targets a 25 percent increase in
international sales in the next three years and a jump of 40 percent in overseas profits.
After its retreat in 2001, M&S started a tentative return to the international stage in
2011 when it opened a store on the Champs Elysee in Paris and launched a French-
language website. The move is part of Dutch Chief Executive Marc Bolland's strategy
to turn the British group into an international "multi-channel" retailer, reaching
customers through stores, the web and mobile devices.
The attempt to meld stores and online presence is best illustrated in the Netherlands,
where M&S launched a Dutch website and "e-boutique" store in Amsterdam last year
that allows shoppers to browse the full range of clothes on life-size digital screens and
then order online.
There was a 13 percent rise in overseas customers searching for UK apparel retailers
online in the first quarter of 2014, according to a British Retail Consortium and Google
study, with growth strongest in China, Russia, France and Germany. Nine local M&S
websites are already live, with plans to launch in Russia and Finland this year. M&S
also hopes to add 250 stores abroad by 2017 to the current 455, including new lingerie
and beauty boutiques in Saudi Arabia and India.
Workforce Diversity
Another HRM challenge is the workforce diversification. Such workforce
diversification means to effectively manage the workforce that come from different
backgrounds with respect to regions, cultures, race and gender.
In this modern business world, every business organization conducts the business
activities in different countries. Now such multinational organizations adopt several
strategies to compete in the foreign markets through people. In this regard to manage
such diverse human resources effectively, M&S adopt and make the policies and
practices according to the culture and environment.
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M&S promote an environment free from
discrimination, harassment and
victimisation and work hard to ensure
everyone is offered equality of opportunity
to achieve their full potential. All the
decisions we make relating to employment
practices are objective, free from bias and
based solely upon work criteria and
individual merit. Not only that M&S responsive to the needs of our employees and
customers but also take pride in the role play in the community at large. Because of
this M&S value diversity very highly and it's important to recognise and make full use
of the wealth of talent have within the organisation. Also place a lot of emphasis on
developing initiatives and procedures that ensure equality of opportunity for every
member of the Marks & Spencer team.
2.2 The Impact of Information Technology on HR Management:
Opportunities and Challenges
M&S is a big international business. So that means they have equally big
responsibilities. With this in mind, they devised Plan A initiative to help them become
the world’s most sustainable major retailer by 2015. It’s a fundamental part of M&S,
and whether it is the environment or society, M&S want to be involved and want to
make a difference to people. This means working with customers and suppliers to
review and improve the way of work.
M&S ultimate goals are to combat climate change, reduce waste, use sustainable raw
materials, trade ethically and help our customers to lead healthier lifestyles. We’ve
identified 180 key commitments, created the unique Shopping experience and
countless other initiatives besides. All of which fits with our ethos of continuous
improvement and making things better.
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2.3Recruitment & Selection Process
M&S has just introduced TALENT PHILOSOPHY which is ensuring the right person
is placed in the right job. ALL perspective candidates undertake an online
questionnaire or telephone interview as the first stage of the recruitment process.
Candidates need to pass this to ensure that they have the right personality and mindset
to fit in with the ethos of the company. The questionnaire has been devised by an
external company and has led to a lower staff turnover and higher rate of productivity.
This has been measured by performance at appraisal review.
INTERNAL vacancies are advertised on the:
Staff notice board
company intranet [although a lot of shop floor staff still do
not use this]
Monthly newsletter
EXTERNAL vacancies are advertised via:
Newspapers – for local jobs it will be in the local newspaper such as the Bristol
Evening Post on Wednesday night. For higher level jobs it will appear in
national newspapers such as The Times or The Guardian.
Issues
People
Products
Community
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Figure: Customer Insight Manager
Company website – this is now extensively used and there is a ‘Careers’
hyperlink on the Home Page.
Careers stall in store – this is mainly used for the Christmas temporary staffs
that are required each year to accommodate the higher level of sales and longer
working hours. Staffs are recruited on a temporary basis.
Shopping centre website – a lot of stores are now located in malls and shopping
centres which have their own websites with vacancy lists.
Graduate vacancies – can be accessed via the website during ascertain window
of opportunity each year. Also the company participates in the annual milk
round of graduate recruitment fairs.
New store – the company uses the job centre, places a large advertisement in
the paper and places a billboard outside the intended site giving details how
and when to apply.
For graduate recruitment courses, the process is a little different:
The first stage is the TALENT PHILOSOPHY questionnaire and if successful there is
an invitation to the Training Academy which is in Swindon. Candidates are asked to
arrive the evening before for dinner with M&S staff ad other candidates.
On the following day the candidates [normally between 6-8] will undertake four
activities on a carousel basis and they are:
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- Presentation - goldfish bowl discussion
- Role play - interview [one hour long]
Candidates are informed whether or not they are successful within three working days
and the offer is made subject to two references and a medical examination. The formal
offer is then made.
2.4 Performance & Reward Systems
Performance Management
Here is Marks and Spencer's definition of performance management: Performance
management is a joint process that involves both the supervisor and the employee,
who identify common goals, which are linked to the goals of the organization. This
process results with the establishment of written performance exceptions later used as
measures for feedback and performance evaluation.’
An appraisal system is carried out every 12 months at Marks and Spencer's. An
appraisal system is when discussions are made with members of staff about what is
going well, what can be improved and how they would which to develop and other
suggestions from workers. These meetings are done by manager of M&S for the
employees and are confidential.
A review plan is used at M&S to measure
productivity. This form shows if the workers
have met the targets set at the meeting, for
example is a person at cashier as a set target
to scan a certain number of products every
hour the review plan will show if it was complete. This is called scan rate operate
targets. Performance Management at Marks and Spencer does refer to this data to
make sure targets is met, and that all the workers are doing well. If targets are not met
M&S can set out courses of action to fix the problem for example giving the workers
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more training. This is the link between performance management and training and
development.
Rewards and benefits
At M&S it's vital that people are well rewarded. So when employee say yes to M&S,
they give access to a highly competitive total reward package that’s proven to attract,
motivate and retain the best people. By constantly reviewing the details of the package
to make sure it’s got everything people want in a benefits scheme, but the things
employee will be able to enjoy currently include:
Pay – Regularly check salaries against other companies to make sure competitive and
keeping up with changes in the market. Also review basic pay every year, plus offer
extra performance rewards to recognize individual achievements.
Employee discount – Employee will get 20% discount on all in-store and online
purchases. Some exclusion does apply but there’s no limit on the amount of goods they
can buy with discount. Apart from that M&S give a partner or family member who
permanently lives with employee the discount too!
Holidays – Entitled to a minimum of 28 days’ statutory holiday per year. For part-
time worker this will be pro-rated.
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Figure: Rewards Benefits
Bonus – M&S have a discretionary bonus schemes on offer that reward employees for
helping the organization to reach its goals.
Pension – M&S aware of how important it is to save for our retirement. This is why
they offer an excellent Defined Contribution pension plan, where if employee
contributes 3% of pay M&S will contribute 6%.
Life Assurance – From day one, employee will receive life assurance cover to the value
of two times of annual pensionable salary.
Shares save – This is a way to save and share in the future success of M&S. By joining
employees can save any amount between £5 and £250 each month for 3 years. At the
end of 3 years you can get your money back or buy shares at an exclusive 20%
discounted price, which is set at the start of the scheme.
Salary Sacrifice – By Joining Salary Sacrifice schemes, covering childcare vouchers,
holiday buying, car leasing and cycle to work and employees could save money on tax
and National Insurance.
Discounts – It’s not just in-store where employees can benefit from generous
discounts. When employees join, they can take advantage of over 1,500 special
discounts covering holidays, leisure attractions and many more products and services.
Heath & Well-being – At M&S wellbeing is a big priority, and they want employees to
be the best they can be. That’s why M&S offer discounted healthcare products and a
wellbeing website with top tips and health guides, to keep employees fighting fit.
Subsidized beauty
treatment
Bonus paid every
quarter
Thank – you
award
Manager of the
month
Advisor of the
month
Share scheme Discount shop Team briefings
Page | 11
2.5 Career Development and Training & Development Program
Training
M&S has formed a ‘Retail Academy’ which is responsible for delivering training and
development programs for staff at all levels.
Induction program:
This is now three days and is undertaken by EVERY employee before they start work
at the company. It means that staffs feel more confident before they start work and
each course is run for between 5 to 15 people. The three days encompasses a range of
activities to encourage teambuilding and an awareness of the company’s ethos. There
are the obligatory sessions on the organization structure and health and safety, and
staffs are also measured for their uniforms to ensure a good fit. There are huge benefits
both to the company and to the employees of carrying out this type of induction
training. The newly recruited staffs are aware of company policies and what the
company’s aims are. They know what the company is aiming for.
Whole staff training:
There is training for all staff when new initiatives are
launched but it is hard to train all staff at the same time because of the stores being
open seven days a week. At the end of 2005, M&S employed Mary Grober [retail
motivationist] to run one-day long training sessions for 56,000 staff, from directors to
storeroom assistants. The company paid her £1 million plus fee as part of a £10 million
training initiative. The course was designed as part of a company ‘culture’ change and
staffs was given tips and advice on how to treat customers. They were informed that
successful sales people should never use the words ‘can’t’ or ‘unfortunately’ in a
conversation and were given a list of hot tips and reminders how to provide excellent
customer service.
Specific training for specific needs:
The company has started using outside contractors to design training programs for
specific areas of the business and these courses are either run at head office or at Retail
Academy. For instance, a series of workshops are being run for staffs who work in the
Page | 12
‘money’ section of the business. It is aimed at non-managerial staff to give them more
confidence in communicating with customers and developing more subtle ways to get
the potential customer to sign up for the product.
Coaches:
Coaches have started being appointed and these are
customer advisors who are given additional pay to train up
to three other customer advisors. For the additional
money they are trained how to mentor and coach new
customer assistants and also to update them on new
procedures. This frees up time for the Section Managers so that they can oversee
performance reviews and ensure they are carried out really well. Also, they have more
time to actually manage the function in which they work and this should increase
motivation. It store or a whole department of a large one after the one year training
program is completed. The HR program is 18 months and offers the chance to gain
also provides an opportunity for progression which did not exist beforehand.
Training on demand for line managers:
Managers are now able to access innovative and engaging e-learning to support them
with HR and people issues. 96% of managers who have used this approach
recommend it to others and consider it to be a cost-effective means of providing
engaging learning on demand.
Lead to Succeed:
The Group HR Director has launched a flagship development programs which is
known as Lead to Succeed. It targets the development of 300 most senior managers
within the company and is designed to train the next generation of leaders. The
training involves coaching and business simulation which is designed around some of
the challenges M&S experiences as an organization.
Page | 13
Management training schemes:
These are available on an annual basis to graduates and internal placements within
the company. There are on average 150 vacancies each year across sales, HR and ICT.
The company accepts any graduate discipline and candidates are offered top-notch
training and development through both formal and structured methods. All graduate
trainees receive a varied program that includes a dedicated personal development plan
following a needs analysis and regular reviews.
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2.6 Financial Budget of HR
Executive directors Remuneration salaries and benefit at M&S, 2012/13 and 2013/2014
Table 1 represent Executive directors Remuneration of M&S at 2012/2013 and 2013/14.where
salary and benefit increased by 5.55% in 2013/14 but gross salary decreased by 22%.Economic
condition of M&S force to reduce annual bonus of 3,088,000 pound in the year 2014.to
minimize the effect management introduced PSP Visited allowance. Pension amount also
increased in the year of 2013/14.
Graph 1: Executive directors Remuneration
0 1000 2000 3000 4000 5000 6000 7000 8000 9000
Salary
Benefit
Total bonus
Total PSP visited
Pension Benefit
Total=
Executive directors Remuneration
2012/2013 (In Thousands) 2013/2014 (In Thousands)
Executive directors Remuneration
2013/2014 (In Thousands)
2012/2013 (In Thousands)
Salary 3801 3612
Benefit 250 213
Total bonus 3088
Total PSP visited 852
Pension Benefit 999 953
Total= 5902 7866
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Weir is an interesting appointment for M&S as in recent years John Lewis has been closing the
sales gap with its larger rival. A decade ago, sales at John Lewis Partnership, owner of the
Waitrose chain, were just £5bn; at M&S they were about £8bn. Today the UK turnover of both
chains is in the region of £9bn.
Table 2
Employee Salary of Different position at M&S, 2012/13 and 2013/2014
Employee Salary of Different position
Positions 2012(Annual Salary)
2013(Annual Salary)
Graduate Commercial Manager 24000 25000
Commercial manager, 24000 25000
BPP commercial manage 18000 19000
Bpp commercial manager, Commercial team 18000 19000
HR BPP, Placement Student 18000 19000
Selling Graduate Management Trainee 24000 25000
Total 126000 132000
Table 2 represent yearly salary of different position at M&S. Yearly increment is 4% at M&S
for all mid and lower management. Currently 86,000 employee work at M&S so salary budget
increased by 86,000,000 pound in the year of 2013/2014.in the year 2012/13 average salary
was 21000 and it is increased to 22000 pound in current year.
M&S business outside of the UK and Republic of Ireland accounts for around 6% of turnover.
This is made up of a combination of franchise and part-owned operations. We aims to recruit
a local workforce representative of the community with ideally no more than 20% expatriate
management.
Page | 16
Graph 2: Employee Salary of different positions at M&S
M&S cheered investors this month by reporting its first increase in profits in four years and
lifting its dividend. Despite chalking up a 13th quarter of declining clothing sales, the group
managed to eke out a 2.3% increase in underlying first-half profits to £268m, thanks to higher
margins and lower costs. Currently M&S given 4% better compensation package them market
beta.
2.7 Health & Safety Issues and HR Ethics
Marks & Spencer is committed to ensure the health, safety and well-being of all
employees, customers and others who visit or work on premises.
As an Employer M&S care about the well-being of all staffs.
Committed to maintaining the quality of health & safety at
work place through continual communication and the raising
of awareness.
As an Employee the benefits are a safe, secure pleasant
working environment. It is employee’s duty to take reasonable care for the health &
safety of yourself and others whilst working.
0 40000 80000 120000
Graduate Commercial Manager
Commercial manager,
BPP commercial manage
Bpp commercial manager, Commercial…
HR BPP, Placement Student
Selling Graduate Management Trainee
Total
Employee Salary of different positions at M&S
2013(Annual Salary) 2012(Annual Salary)
Page | 17
Company Policy on Health and Safety and its implementation is directed by:
The Fire Health & Safety Committee - advises on fire,
health & safety policy, monitors its effectiveness and
reviews key performance measures on a quarterly basis.
The committee receives updates through the Fire, Health
& Safety Officer Network Groups which meet quarterly.
Information from each location is exchanged with Fire,
Health & Safety Officers at Business Involvement Group Meetings. (BIG). Minutes are
published on My Store Workspace and should be displayed on the health & safety
notice board.
The Store/Site Manager - is accountable and responsible for ensuring in
conjunction with their Fire, Health & Safety Officer that Company Health &Safety
Policy is implemented. This includes:
• Suitable Fire, Health & Safety induction and legislative update training for all
employees.
• The prevention, reporting, and investigation of accidents.
• The completion of store specific risk assessments and maintenance of known hazard
information.
Occupational Health Services – provide advice and support to line managers on
managing the impact of work on health, and health on work. Further health
information is available through the People Guide.
Business Involvement Groups (BIGs) - represent all employees’ in two way
communication. They should discuss health & safety policy, performance and
implementation as an agenda item at each meeting and update the business through
the FHSO Networks.
Retail Finance and Operations - and its Trading, Safely and Legally Team are
responsible for determining and monitoring risk assessments, work practices and
enforcement measures.
Property Development and Facilities Management - are responsible for the
provision of working areas, equipment and materials that are safe and without risk to
Page | 18
health. It also ensures that so far as is reasonably practicable all contractors who work
on our premises do so in a manner that is without risk to our staff, customers or
visitors.
The Fire, Health & Safety Officer (FHSO) - assists the Store Manager in
promoting and improving the FHS culture in stores, ensuring a consistently safe,
secure and healthy environment for all staff through workplace assessment, training
and monitoring.
In addition, supports your Plan A Champion and Goals.
All employees must be aware of their individual responsibility -for
maintaining the health & safety of themselves and all those affected by their actions at
work. If an employee has any concerns about their health & safety they should speak
to:
• The Store / Site Manager / Line Manager
• The Store / Site Fire, Health & Safety Officer
• Any member of your Business Involvement Group
• The Head Office Fire, Health & Safety Team
Code of Ethics and Behaviors
How does Employee comply with the Code?
All M&S employees are required to adhere to the Code and the policies it refers to.
They have a responsibility to protect the Company’s reputation in everything they do
and say. Ensure that they thoroughly read, understand and act in accordance with the
Code and the various policies embedded in it. Failure to comply with the Code and its
policies and procedures will result in disciplinary procedures being applied that may
result in dismissal from the Company. In instances of fraud, where financial loss has
Page | 19
been incurred, individuals will be prosecuted and the Company will seek to recover
losses.
What are managers expected to do?
Managers (level E and above) have additional
responsibilities under the Code to:
Ensure the Code is understood by those they
manage;
Provide advice and guidance on interpreting the
Code;
Uphold and promote the requirements of the Code;
Individually sign their acceptance of the Code each year.
Page | 20
How to raise a concern or ask a question?
M&S believe it is essential to create an environment in which individuals feel able to
raise any matters of genuine concern internally without fear of disciplinary action
being taken against them, that they will be taken seriously and that the matters will be
investigated appropriately and as far as practicable be kept confidential. M&S believes
that any employee with knowledge of wrongdoing should not remain silent. BY taking
all matters of malpractice, improper action or wrongdoing very seriously and
employees are strongly encouraged to raise incidents or behaviors that are not in
accordance with the Code, or the policies to which it refers, by following the procedure
set out below:
Line Manager
In the first instance, employees should consider
raising concern with line manager. He/she has a
responsibility to listen and respond to any
matter that is of concern. Concerns can be raised
verbally or in writing. They may be able to agree
a way of resolving your concern quickly and
effectively.
Senior Manager
If employees feel that they cannot raise concern with line manager, for whatever
reason, they should contact the senior manager in business unit or store, who will
consider the matter and, if appropriate, manage any investigation.
Bribery and Corruption
M&S operate a zero tolerance approach to the making or receiving of bribes or corrupt
payments, in any form. This type of conduct is absolutely prohibited whether
committed by employees or anyone else acting on the Company’s behalf.
Employees should not get involved in any business transactions that could result in
personal benefit. Should not use their position as an M&S employee to get discounts
from contractors/suppliers unless they are corporate agreed discounts notified and
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made available to all employees, or do personal business, unless expressly authorized
by management.
Fraud
Fraud is deemed gross misconduct. Disciplinary procedures will be rigorously applied
to any instances of fraud which will result in dismissal. The Company’s Group Fraud
Policy defines Fraud as the deliberate action by any person, or deliberately allowing an
action to be taken, to create, falsify, destroy, deface, or conceal any account, balance,
record or document, or impersonate, deceive, or misuse their position with the
intention of:
Obtaining money, assets, services, information or any other benefit which
would otherwise be denied;
Distorting personal or business performance;
Causing a loss to the Company or another party (eg supplier, third party
contractor, customer or employee);
Prejudicing the Company’s rights, competitive position or business reputation,
or those of another party (as above).
2.8 Recommendation
Effective leadership program should be
implemented to insure smooth operation.
Use of Scientific change management models to
increase employee productivity.
Utilise technological advantages to the changing
market
New strategies in the payment of pension funds to
avoid internal conflict
Do more market analysis to know competitor offers
towards their employee which could help to reduce turnover.
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3.1 HR Management in the 21st Century: Challenges for the Future
Parallel with the changes in the global arena, human resource management also
warrants a revisit and implementing changes to adapt with the modern needs of the
21st century. There are an incredible number of pressures on today's organizations. To
name a few: environmental pressures such as increasing globalization, rapid
technological change, and tougher competition; organizational changes such as new
organizational alliances, new structures and hierarchies, new ways of assigning work,
and a very high rate of change; changes in the workforce, including employees'
priorities, capabilities, and demographic characteristics.
The role of human resources has been evolving for some time and is named as
strategically reactive in business strategy implementation through supporting the long
term strategies with the necessary employee qualifications and developing the cultural
and technical capabilities required for the strategies of the organization.
The need for managing the employees strategically in the 21st century also requires
the management and the organization structure to be more flexible. The work system
has started to change with autonomous work groups with high qualified workforces,
outsourcing some of the operational HR functions, downsizing, delivering, employee
participation to the decision systems, high wages for the high qualified human
resources, virtual and network organizations.
Page | 24
3.2 The Impact of Information Technology on HR Management:
Opportunities and Challenges
Information technology brings enormous opportunities in every aspect of business.
Particularly to HRM, it can contribute by minimizing lot of redundant works and
achieving efficiency through extensive use of technology. Human Resource
Information System shortly known as HRIS is an integral part of any progressive
organization which is in place in Selfridge’s as well.
Technology can also be used to provide HR information and to enable managers and
employees to perform simple HR tasks themselves. On another level, the use of HRIS
to reduce the administrative and transactional burden on the HR function can lead to
a change in the structure of HR and allow the function to play a more strategic role in
the organization. The reasons behind an organization’s introduction of an HRIS may
vary considerably from the need to facilitate efficient processes or cut costs, to improve
communication and customer service, or the desire to create a shift in the role of the
HR function from one that is mainly administrative to one that is more strategic.
As we found, Selfridges & Co. is already using web-based questionnaires for initial
screening of applicants, they are already reaping the benefit of technology. This can be
further enhanced by implementing a process which will direct the short listed
candidates to a face-to-face interview through a completely automated way.
Human resources professionals generally process a considerable amount of paperwork
and also have to keep much of that paperwork on file for a considerable period of time.
The use of electronic imaging has made it possible for companies to store and retrieve
files in an electronic format. Technology also made it possible for Selfridge’s HR
professionals to simply print the forms that are needed for employees. Printing on
demand eliminates the need to dig through an endless number of files in the file
cabinet to find what is needed and at the same time increasing productivity.
Technological advancement is a challenging task of adapting workplace to rapid
technological changes which influence the nature of work and generate obsolescence.
Advanced technology has tended to reduce the number of jobs that require little skill
and to increase the number of jobs that require considerable skill, a shift we refer to as
moving from touch labor to knowledge work. There is new working technology. In this
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situation organizations have to change it technology. New technology creates
unemployment and in other hand, there comes scarcity of skilled manpower. Like this,
technological change brings difficulties and challenges in organization.
• Globalization
• Workforce Diversity
• Changes in political and legal environment
• Changes in the Economic Environment
• Mobility of Professional Personnel
• Revolution in Information Technology.
• Technological advances
Information Technology (IT) as a structural factor and instrument transforms
architect of organizations, business processes and communication, and is increasingly
integrated into HRM. While IT has impacts on HR, at the same time managers,
employees, customers and suppliers increase their expectancies for HR functions. The
importance of knowledge and human capital make extra suppression on HR functions
and new competences for HR professionals are expected.
Challenges of Information technology on HR Function
• New skills required
• Downsizing
• Collaborative work
• Telecommuting
• Internet and intranet revolution
• Business environmental change
• Development of technology
• Service improvement
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3.3 Recruitment & Selection Process
Preliminary screening is done through online assessment
through Selfridge’s job portal website. Then prospective selected
candidates are called for interview for the applied position.
Selfridge is an equal employment organization. The selection is
done based on the required competencies and criteria required
to perform the applied job. Selfridges put high importance on the applicant’s passion
on work and reasons for choosing Selfridges. Based on the position, they structure the
interview questions to find out the insights about the applicants that are relevant to
the applied job. On request of the applicant, Selfridges also provide feedback on
his/her interview for future development need of the applicant.
3.4 Performance & Reward Systems
Performance appraisal is critical element in the performance
management process. A primary aim of the performance
appraisal dimension of performance managements to assess or
measure the achievement of the individual or the team against
the agreed objectives.
At the Selfridges, the process of performance appraisal is redefined through the new
role of leader. Team leaders were asked to re-apply for their positions through a new
selection process which focused on behaviours as well as skill sets, which resulted in
some losing their position. Improvements were also made to the performance
appraisal process by linking it to succession planning and therefore working more on
career opportunities. This ensured that team leaders took greater ownership of the
process, and that appraisals actually got done properly. These changes coincided with
improved employee perceptions of team leaders’ behaviour and better employee
attitudes towards some HR policies.
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Rewards & Benefits
Selfridges upholds a culture where deserving employees gets acknowledged and
rewarded. Following are a few examples of the reward and benefits:
Generous holiday entitlement (which increases the longer you stay with us)
Extremely generous discount throughout the whole store
Contributory pension scheme
Life cover
Long service awards
Performance related incentives
3.5 Career Development and Training & Development Program
Learning and Development team works with all business areas to ensure that everyone
is given the full opportunity and encouragement for their
talents to flourish.
Selfridges wants to get the most out of each employee’s role
because they want to make the most of every employee’s
abilities. Selfridges provides three months' induction and
continuous on-the-job training through which one can take
advantage of a broad range of programs and workshops, designed to help develop
employees’ particular sales, management or technical skills.
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3.6 Financial Analysis of HR
Selfridges has around 3,000 employees, who share the shop floor with about the same number
of staff employed by branded retail concessions. There are four Selfridge’s outlets: one in
Birmingham, two in Manchester, plus the iconic flagship store on London’s Oxford Street.
With a healthy annual turnover of £538m, and trading profit up 14% year-on-year to £49m to
the year ending 31 January 2013, Selfridges remains confident as a business. The majority of
the company’s workforce is its 2,700 sales staff. The retail industry has always suffered high
staff turnover, so HR’s constant challenge is to recruit and retain sales talent.
Table 1
Average salary of Selfridges from 2009-2014
Average salary of Selfridges
Year 2009 2010 2011 2012 2013 2014
Salary 25534 26071 25212 25251 28868 29642
From the above data of table 1 we clearly see average employee salary depends on the
profitability of company. Trading profit increased in 2013 by 14% which refer to increase
salary by 2.6%. There is no fixed yearly increment in Selfridge even though if company is in
loss so does the salary decrease. The graph below show the trend of salary over the year:
Graph 1
Salary trends over the year
0
5000
10000
15000
20000
25000
30000
35000
2009 2010 2011 2012 2013 2014
Salary
Year
Page | 29
From 6 years of data we could see the average salary is between 25000 to 30000 in a year. If
salary decreases by any reason Selfridge try to cover that by providing some non monetary
befits. Currently Selfridge provides 5% more salary and benefits then the market beta.
Table 2
Salary budget of Selfridge’s
2013 Total Remuneration (In Thousands )
2014 Total Remuneration (In Thousands )
Non-Executive Director salary 643 701
Executive Director salary 6494 8781
Mid/Lower Management salary 164547 168959
Total= 171684 178441
Selfridge’s has spend 171684 thousands of pounds in the year of 2013.and in 2014 they planned
budget to spend 178441 thousands of pounds. Which is 6757 thousand of pound more than
previous year. HR has worked hard to define Selfridges’ core values and behaviours, and built
up the employer brand so staff can feel proud of where they work. “Our employee culture is
diverse and friendly there is something for everyone, whether you’re a customer or an
employee,” she says.HR is on top of the recruitment process, and has the stats to prove it. Last
year, labour turnover decreased by 12% and the London store boasts the lowest staff turnover,
not only within the company, but also against a number of competitors on Oxford Street.
Page | 30
3.7 Health & Safety Issues and HR Ethics
Selfridges’ HR, like all other businesses, has a safety policy. This is a
legal obligation that they must follow. The policy states in simple
terms what the goals of Selfridges are in relation to health and safety
of employees. It also consists of actions that are to be carried out by
the key staff members. The policy includes planning for coverage of training and
instruction, company rules and preparations for unpredictable scenario. This will be
signed by the senior manager; it is revised regularly to be kept up to date. Selfridges’
HR has a unique code of practice. It states what employees should do in an event of an
emergency, such as a fire, earthquake etc. It elaborates how to contact a first-aider,
how to find a medical room, how to call a doctor and so on. Selfridges’s HR has a health
and safety office in all their stores; they are responsible for all health and safety policies
and training. All accidents, including the nearly missed ones, are recorded in an
accident book so they can see where improvements need to be made.
3.8 Recommendation
Finding the right talent and clearly defining the
manager’s role is key to success in a retail business.
Managers face pressure from a range of responsibilities
such as increasing sales, controlling inventory, hiring,
training and managing employees, minimizing payroll, engaging customers and
monitoring shrinkage, so working with the manager to establish priorities is critical.
In addition to increasing productivity, the process of setting priorities will give insight
into a manager’s strengths and indicate whether the manager has what it takes to be
effective.
For advanced training and development Selfridges should use flexible training
program. A flexible training program can be designed by undertaking these steps:
Understand basic skills and abilities of employees. Understand job specifications'.
Select specific training or development program. Make changes in selected training
program according to employee’s needs.
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4.1 HR Management in the 21st Century: Challenges for the Future
The 21st century Human Resource Management requires increased centrality of people
to organizational success which is the most powerful force affecting the evolution of
HRM. The emergence of resource based views of organizations has placed increasing
importance on intellectual and social capital.
The new HRM perspective for the 21st century requires HRM to be strategic partners
of the organization that coordinates all functions and supporting the strategies by
attracting and retaining the essential qualified employees.
The growth of ethnic groups will continue to add diversity to the workforce in the 21st
century. The public recognizes an organization with diversity as harmonious, stable
and progressive. Therefore, human resources professionals will be trained in
understanding, supporting and achieving diversity initiatives to provide employees
with skills to work in diverse teams. Human resources professionals will work with
company leaders to ensure that the organization includes all cultures to maintain a
competitive advantage.
4.2 The Impact of Information Technology on HR Management:
Opportunities and Challenges
The use of information technology in human resource management can be seen visibly
in the mode and operation of human resource management. Today, the training and
selection method is done via the use of information technology and this is fast making
the overall process more effective than ever as a whole.
Information technology brings enormous opportunities in every aspect of business.
Particularly to HRM, it can contribute by minimizing lot of redundant works and
achieving efficiency through extensive use of technology. Human Resource
Information System shortly known as HRIS is an integral part of any progressive
organization which is in place in Primark’s as well.
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In time and labor management, the use of information technology can’t be ignored
because it is advantageous. IT enables the gathering and application of employee time
and work information. It enables the tracking of employee in a scientific way that
allows for easy analysis. It also enable human resource managers or senior personnel
to know which employee is actually performing and the ones that are not performing
and show improvement.
The use of the technology oriented processes in an organization is affected by various
factors, which are highlighted as follows:
• Employee orientation-The employees of the organization needs to be
convinced by the fact the use of technology in the processes will help in
generating better and improved results compared to the existing processes.
• Work Culture-Work culture also affects the acceptance of the implementation
of new system in an organization. The dimensions of better results can be timely
and accurate information, ease of use and completion of work in lesser time.
• Security Concerns-A system or technique designed for one country may not be
effective in other country. Implementation issues across boundaries come with
the challenges of data privacy and data movement across boundaries.
• Cost factor- Cost is an important factor to be taken into consideration before
implementation of the e- systems. The companies must priorities and take the
decisions of acceptance and implementation of E-Systems on the basis of vital,
essential and desirable operations.
• Training and learning- The process of training and adaptation to the new
system be a cumbersome and time consuming process. It may be challenging
for the users if they do not find it user friendly.
• Technical limitation- An organization cannot depend on technological websites
or software completely to handle every issues related to HR. A website cannot
ever replace a skilled professional. Employees may not be able to make senses
of choice from the website and may need to discuss the issues personally with
HR experts or professionals, in case of doubts, faced by them.
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4.3 Recruitment & Selection Process
Primark Stores has a multi-dimensional recruitment and
selection process a few years ago and job vacancies were
advertised through multiple ways, including in store
postings, Job Centre advertisement and advertisement of
vacancies over the internet.
Although we know that Primark Stores has not been focused more on internet related
issues in the past and there was no other way available for the people a part from going
to job centers and Primark Stores itself asking about the vacancies.
With the current passage of success, Primark Stores has made the recruitment process
more transparent and easier to access. Primark Stores have now got an Online-
Recruitment System and vacancies are displayed onto the website immediately.
After initial registration, candidates are asked to answer a set of question related to
customer services and other issues related to the retail industry. On the successful
completion of these questions, candidates are issued an application reference number
for further processing of their application, if they were successful during this phase of
application.
Recruitment Process for Retail Operatives:
The current recruitment process of Primark Stores consists of the following key stages:
• Candidate needs to fill an online application form to get register with the online
recruitment system.
• At next stage, candidate needs to answer a set of online questions regarding the
customer services and retail business environment.
• On Successful completion of this stage, candidates are invited for a personal
interview
A job is offered after a successful completion of assessment center and going through
a rigorous activity of group tasks and presentation.
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Recruitment for Management Positions:
Same methodology of online applications applies for management positions as well.
Job vacancies are advertised through Primark’s Recruitment website.
• Candidates are presented with a set of online questions regarding the
management of business /real life issues.
• On successful completion of questionnaires, candidates is issued an application
reference number and is invited for a Panel Interview.
This interview session can be a panel interview or one – to – one interview and
candidate is tested on the basis of his education, expertise and communication skills.
Candidate’s ability to handle different difficult situations is also analyzed.
On successful completion of interview session, candidate is invited to attend an
assessment center and this is the stage where candidate has to go through group tasks,
presentations and this gives HR Team a complete idea about the suitability of the
candidate for a particular job role.
4.4 Performance & Reward Systems
In Primark high level management and managers are
responsible for monitoring of the performance of teams and
employees. The main and basic idea includes fro monitoring
to ensure that:
• All the assigned responsibilities are being full filled as per required goals,
• To identify the opportunities and chance for improvement in the work,
• To make out the progress against the goals,
• Evaluate the progress against the internal and external standards.
Primark provides salaries that are competitive and subject to annual review. Other
benefits include:
Page | 36
• Structured training and development programs
• Promotional opportunities for everyone
• Contributory pension scheme
• Childcare Voucher scheme
• Competitive annual leave entitlement
• Health insurance (dependent on the role/level/function)
• Bonus scheme (dependent on the role/level/function)
• Flexi-time scheme for certain head office functions
• Variety of shift patterns available to suit individual’s lifestyle
4.5 Career Development and Training & Development Program
Primark have a world class Management Development
Program to help build its employee’s career at all levels.
Whether he/she is in stores or head office, Primark aims
to build its employees’ talents and skills during their
amazing career journey. Primark encourage ideas, team
spirit and passion across all their functions.
As a new employee in any role with Primark, he/she will be given a structured
induction program to welcome into the new role and team. Primark offers various
programs to either assist to become a member of management, or to develop further
in one’s role. The development programs start at all levels from entry level through to
senior leadership programs.
Primark advertise promotional opportunities within the business to its existing
employees. Employees are encouraged to play an active part in self-development
where they will be given ownership of their career with the support and guidance of
Primark’s experienced managers. Primark provide its employees the tools and
resources needed for their dedication and enthusiasm.
Page | 37
4.6 Financial Budget in HR
Figure: Directors’ remuneration
4.7 Health & Safety Issues and HR Ethics
Health & Safety Issues
The issue of worker safety has always been a priority for Primark
and forms an important part of their factory inspections. In
some countries where awareness of workplace safety
(particularly fire safety) is limited, Primark’s local teams provide
training and awareness programs for factory managers and
workers.
In Bangladesh, Primark also work with industry experts, other retailers, and
international organizations to ensure the factories are structurally safe and meet
international safety standards. Primark is a member of the Bangladesh Accord on
Building & Fire Safety, and they were the first UK retailer to sign the Accord.
Primark’s fire safety program for suppliers in Bangladesh has been in place since 2010.
It includes dedicated fire safety inspections, and training for suppliers and workers. In
0 500 1000 1500 2000 2500
Executive Directors
Non-executive directors
Remuneration Chart of Primark
2013 2012
Page | 38
2012, Primark launched a new initiative to create a set of practical fire safety guides.
Health and safety experts, worker rights organizations, Primark’s suppliers, and a
former senior member of the Bangladesh Fire Service, are working with them to create
the guides.
HR Ethics
Primark aim to ensure compliance with the United Nations
Universal Declaration of Human Rights in the management of
all our businesses. Employees throughout the group are
recruited, trained and rewarded according to performance
alone. Whistle blowing policy and procedures are in place. All businesses are signed
up to the group’s Business Principles and Anti-Bribery and Corruption Policy. A
program of training and compliance has been implemented for all employees.
Appointment of anti-bribery and corruption specialists is present. Businesses work co-
operatively to ensure visibility of reputational risk within supply chains and draw upon
best practice management expertise across Primark.
4.8 Recommendation
To deliver more value, the human resources function needs to spend
more time accelerating operational improvement and less time on
its traditional administrative and compliance activities. Focus on
Whole Systems and Integrated Solutions: It is clear that HRM has
become increasingly systematic during their evolutions. With the strategic proactive
role of HRM, the challenge for Primark is to continue to develop innovative systems
by focusing on the integrated functions and systems of organization. Primark should
also play a strategic role by contributing to the strategy formulation process. The HR
practices should be designed consistent with the strategies of Primark taking into
consideration the essential HR needs.
Page | 40
5.1 HR Management in the 21st Century: Challenges for the Future
The importance of people in organization is immense because it is the people that plan,
design, implement, sustain and end an organization’s life. From this rather simplistic
but vital point, we can assume that one of the most important functions in an
organization is the management of the human resource functions.
HRM can be a useful function in building this bond by sustaining inward investment
in organization. It is absolutely vital that organizations should see their employees as
valuable assets not just a file or a number in a spreadsheet. Employees are now
expecting their employers to invest on their training and development in return the
organization expects employees to be flexible, creative and productive.
Here in Sainsbury’s they not only have to match the organizational needs, but also the
values of its employees. The responsibility of the employment of psychological contract
is mostly given to the HR functions because HRM a set of policies and procedures that
govern the nature of work and regulate the relationship between the employee and the
organization.
5.2 The Impact of Information Technology on HR Management:
Opportunities and Challenges
For the big corporate organizations like Sainsbury’s, it is an essential requirement to
manage information systems in an efficient way. Information technology is reforming
the process of management, providing powerful new abilities to assist managers
strategize and plan, organize, lead and control. Information systems is used in
Sainsbury’s at various levels of management and various departments. Information
technology influences various department of Sainsbury.
In Sainsbury PLC there are multiple business units. With a centralized Management
Information system that is not affected by geographical boundaries and similar
restrictions, MIS helps in tracking employee related functions. With an integrated
database of personnel, it keeps a track of salary and benefits structures, supports
planning and recruiting and also simplifies the payroll function of the HR department.
Page | 41
Human Resources (HR) and information technology are the two elements that many
firms are learning to use as strategic weapons to compete. To capitalize on the synergy
between these two assets, human resource information systems (HRIS) is an emerging
area that may lead human resource management into a new era. HRIS ensures that
the company is able to achieve success through correct quantity of labor with the right
skills and the right amount of motivation.
Information Technology influences the Human Resource department at Sainsbury
through:
1) Human Resource Planning
Information Technology at Sainsbury ensures the right number and type of workers to
achieve its objectives. Planning is important so that vacancies are filled as staff leave.
Sainsbury will work out its labor requirements, its demand and make sure that an
appropriate supply is planned. All staff information and records are entered so that
less experienced staffs can be identified and further training can be given to the right
staff. IT can also help with planning the staff shifting system and schedule effectively,
avoiding the problem of miss-arrangement.
2) Recruitment and Selection
With the help of information technology, the best candidate can be chosen for the job
quickly through the proper online system as this will lead to Sainsbury objectives being
met.
3) Training and Development
With the use of IT, Sainsbury identify the training needs analysis, training cost-benefit
analysis, promotion analysis etc. This will help to equip employees with the skills
required now and in the future.
4) Performance Management
IT helps in evaluating performance appraisal analysis, attitude survey, attendance
management analysis, productivity analysis and help to motivate staffs to ensure high
performance for the firm. This would also enhance the output by the employees as they
will be motivated.
Page | 42
5) Compensation management
IT helps in assessing personnel cost analysis and compensation structure analysis for
better compensation management.
The new role of information system in Sainsbury
Usually developing a business plan often depends on what its system will be able to
do for the company in the future. For Sainsbury, increasing market share, becoming
the high quality or low cost producer, developing services, and escalating employee
efficiency relay on the kinds and quality of their information systems. The reason why
systems play a larger role in Sainsbury is because of the high power and diminishing
cost of computer technology that is at the core of information system. With its
powerful, user friendly software, the computer can crunch numbers, analyze immense
pools of data, or stimulate complex physical and logical output with dynamic drawings,
sounds and even demonstrative feedback. Information systems can be a powerful
instrument for making Sainsbury more competitive and efficient.
5.3 Recruitment & Selection Process
Sainsbury has a centralized Human Resources policy in which all decisions are taken
by top management. Sainsbury offers vast numbers of job opportunities that are
available in different stores. They offer colleagues flexible contract, term time
contracts and dual contracts to work on
hourly basic. Their job opportunities are
advertised on in-store job board, in local newspaper
etc. Sainsbury recruits staffs two or more months
prior their commencement of work in order to allow
staff training. Sainsbury recruits around 100 graduates every year. Graduates
recruitment is carried out online at Sainsbury graduate recruitment website.
Graduates are trained in all aspect of store management under trainee management
scheme. Under this training period they will work in all areas of store and later doing
their jobs under manager supervision.
Page | 43
Sainsbury employee selection process includes:
1. Collection of curriculum vitas (C.V) and letter of Applicant.
2. Next step is to shortlist candidate which is done by recruitment manager. This
shortlist of candidate is done to meet the requirement of the company that they looking
for.
3. Next is the Interview stage. Interview is the main stage of selecting applicants. A
number of designed question are asked to figure out candidates knowledge. This will
help to know who is good in paper and who has communications skills.
4. Most suitable person, who best fits the company requirements, is selected for the
job.
5.4 Performance & Reward Systems
Performance Management is very significant at Sainsbury’s.
Sainsbury’s satisfactory performance of its employees helps them
remain competitive in the market. Various methods are used at
Sainsbury’s to know how well individual employees are accomplishing
their responsibilities. Here performance monitoring plays a major
role as it offers information which is of value for identifying future training or
promotion opportunities and helps identify areas where inadequate skills or
knowledge which can be a threat to an employee’s efficiency.
Managers exercises control at organization and individual level through:
Development by planning objectives and targets
Creating performance values
Perceiving actual performance
Comparison against actual performance and targets
Adjusting mistakes and taking actions to rectifying them
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The manager at Sainsbury’s presents the corporate objectives and the individuals and
team members then state what they feel can be accomplished. The goals are more
expected to be effective if they are:
Specific
Measurable
Agreed
Realistic
Time-related
5.5 Career Development and Training & Development Program
Sainsbury provides everyone right opportunity through
their training program to develop the trainees’ skills and
knowledge so that they perform well in their jobs. At the
beginning, all new employees are given a general overview
of the organization so that they can have a clear
understanding of their rights and responsibilities. These employees will undergo a
general introductory training program during the first eight week of their employment
period. Under this curriculum, introduction of the company will be given on the first
day followed by intensive program of training covering various aspects like safe
working practice, food, law, security and customer care. During trainee introduction
period, series of modular workbooks will be provided to them that they have to
complete. Through the preliminary training, all trainees are accessed. As they
progress, the performance of the employees will state whether or not they will be
offered permanent employment. For further career development, all employees have
a performance development analysis to discuss their career growth with their
managers in order to verify their progress or training needs at least once a year. For
evaluation of training and development and plan for the future, Sainsbury has career
development committee’s team in each area of business. Various types of training
approaches are used like course, workshops, mentoring, qualification, self-
development books and videos.
Page | 45
Purpose of training employees:
It is necessary to have well trained staff in order to increase profit and achieve
company objectives.
Increases workforce more flexibility.
Increases job satisfaction.
It is better to train employees beforehand so that they feel more comfortable which
will in return increase the performance of the workers. This will help the employees
reach their potential and the business will be profiting as well as the employee.
Senior management training:
Senior management training is focused to meet the business and individual needs.
Through promotion, external recruitment and training, senior management potentials
can be developed. Sainsbury aims to achieve specific benefits and utilize the potentials
of their employees through their training courses.Training and development helps
Sainsbury to improve their quality and service and therefore raise their productivity.
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5.6 Financial Budget of HR
Table 1
Executive directors Remuneration salaries and benefit at Sainsbury’s, 2012/13 and 2013/2014
0 500 1000 1500 2000 2500 3000 3500 4000 4500
Salary
Benefit
Pension
Total Fixed Pay
Annual Boones
Deferred Share Award
Long Term Incentive Plan
Total=
Executive director Remuneration
2012/2013 (In Thousands) 2013/2014 (In Thousands)
Executive director Remuneration
2013/2014 (In
Thousands)
2012/2013 (In
Thousands)
Salary 960 940
Benefit 31 32
Pension 288 282
Total Fixed
Pay 1279 1254
Annual
Boones 781 996
Deferred
Share Award 960 975
Long Term
Incentive Plan 925 1141
Total= 3945 2009
Page | 47
Table 1 describe the salary and other compensation package of executive directors which
clearly define a well-structured and attractive package of the executive directors. Sainsbury’s
seriously follow performance based compensation package standardizes for their employees
long tern retention management. It is important that a significant portion of the package for
Executive Directors is performance-related and delivered in shares to align their interests
with shareholders. The balance between fixed pay (base salary, pension and benefits) and
variable pay (annual bonus, Deferred Share Award and Future Builder) changes with
performance. The variable proportion of total remuneration increases significantly for
increased levels of performance. At least 60 per cent of the package is delivered through
variable pay at on-target performance and this proportion increases to at least three-quarters
of the package at maximum levels of performance.
Salary budget of Sainsbury’s
2013 Total
Remuneration (In
Thousands )
2014 Total
Remuneration (In
Thousands )
Non-Executive Director salary 960 960
Executive Director salary 587 587
Mid/Lower Management salary 262853 365763
Total= 264400 367310
0
50000
100000
150000
200000
250000
300000
350000
400000
Non-ExecutiveDirector salary
Executive Directorsalary
Mid/LowerManagement salary
Total=
Salary budget of Sainsbury’s
2013 Total Remuneration (In Thousands )
2014 Total Remuneration (In Thousands )
Page | 48
In line with the policy, Sainsbury’s takes account of a number of factors when considering
salaries, with particular focus on the general level of salary increases awarded throughout the
Company. The salary review for management and non-management central colleagues in
March 2014was 2.0 per cent and for hourly-paid retail colleagues in September 2013 was 2.6
per cent. External pay data is provided to the Committee for reference, relating to the UK
retail market and similar-sized companies in terms of sales revenue and market capitalization,
but the Committee applies judgments when considering market data. It is important that for
lower and mid level managers that a significant portion of the package is performance-related
and the performance conditions applying to incentive arrangements support the delivery of
the Company’s strategy and the long-term sustainable success of the Company. The company
policy considers performance against a range of metrics to ensure that the assessment is
rounded, taking into account both qualitative and quantitative factors for compensation and
benefit package.
5.7 Health & Safety Issues and HR Ethics
Sainsbury’s HR, like all other businesses, has a safety
policy. This is a legal obligation that they must follow.
The policy states in simple terms what the goals of
Sainsbury are in relation to health and safety of
employees. It also consists of actions that are to be
carried out by the key staff members. The policy
includes spanning for coverage of training and instruction, company rules and
preparations for unpredictable scenario. This will be signed by the senior manager; it
is revised regularly to be kept up to date. Sainsbury’s HR has a unique code of practice.
It states what employees should do in an event of an emergency, such as a fire,
earthquake etc. It elaborates how to contact a first-aider, how to find a medical room,
how to call a doctor and so on. Sainsbury’s HR has a health and safety office in all their
stores; they are responsible for all health and safety policies and training. All accidents,
including the nearly missed ones, are recorded in an accident book so they can see
where improvements need to be made.
Page | 49
Health and safety is essential for human resources in order to protect their employees
and customers since Sainsbury’s reputation is at stake. Customers are also included
into the health and safety acts. The policies include:-
Requirements for disability - wheelchair access, lifts, helpers etc
Car parks- checked regularly for trolleys causing hazards, etc.
Customer fire exits- Kept clear at all times.
Shelves- all stacked to the lowest they can be.
Warning signs- clearly visible.
Smoking, drinking, eating- banned in all stores.
Substances and solvents- all kept in unreachable areas for children’s safety (3rd
or 4th level shelves).
Toilets- checked every half an hour for staff and customers.
Sainsbury’s HR wants their employees to work in a safe environment. Laws oblige all
store managers and employees who work there to comply with the health and safety
legislation. The company which enforces the policies is the Health and Safety
Executive (HSE), which has an inspector who can visit a Sainsbury’s store without any
prior notice to investigate an incident or complaint made against them. Usually an
environmental health officer will inspect a store. If there is any evidence of
unsatisfactory working practices, they will give the store manager an improvement
notice with a specific time frame within which the problem must be rectified. In case
of major issues, a prohibition notice will be issued to the office which means that the
store manager must shut the store down. The store manager has the opportunity to
appeal if they think the discussion is unfair but if they lose the appeal and fail to put
matters right, Sainsbury’s HR can be fined a huge amount of money.
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5.8 Recommendation
At Sainsbury’s, human resources management is the most
important department. They control the workforce and overlook
how the employees perform. A poor workforce in terms of
inefficient workers could result in low productivity. According to
Mayo’s theory, working in team is important for Sainsbury’s as it creates friendly
environment which can increase company’s profit. Rivals may look for Sainsbury’s
existing employees by offering them better pay and promotion. The HRM department
at Sainsbury’s should be more attentive of such problems and may offer their
employees more pay and promotion in order to keep existing employees satisfied. If
promotion or better pay are offered to employees, they will feel important to business.
Therefore HRM needs to safeguard the Sainsbury’s employees. If an employee has to
leave in near future than advance planning by HRM is needed for recruitment,
interviewing and selection to replace that employee so that the department does not
suffer and business is not affected. At Sainsbury’s, if labor turnover is high, it is
regarded as a failure by the HRM department but if labor turnover is low then it is
regarded as a success. So it is also important to analyze absenteeism rate and seek to
ensure that the rate is low. High absenteeism indicates lack of commitment, poor
motivation and poor management by the HRM.
Page | 51
6. Compare & Contrast HR Practices
M&S recruitment and selection process recruit most potential candidate in the past
also their performance appraisal is also been effective. They formulate new strategy to
cope with the market, investing on ecommerce bring competitive advantage. Different
training and career development programs offered to employee. M&S provide 360
training program but short on advanced level training alike Selfridges. Development
needed on management models, payment funds and market analysis over HR practice.
Primark human resources function mostly focused on traditional administrative and
compliance activities rather to operational improvement. It is clear that HRM has
become increasingly systematic during their evolutions. The challenge for Primark is
to continue to develop innovative systems by focusing on the integrated functions and
systems of organization. HR practices of Primark like recruitment, performance
appraisal reward system matched with the market beta. Considering corporate
strategy before planning can lead them to a new height.
Selfridges advanced training and development creates difference between all four of
them. Selfridges should use flexible training program. Online recruitment as
organizational need help to hire the most efficient employee .large number of
candidate could be assessed within short period of time.
At Sainsbury’s, human resources management is the most important department.
They control the workforce and overlook how the employees perform. Working in
team is important for Sainsbury’s as it creates friendly environment which can
increase company’s profit. Rivals may look for Sainsbury’s existing employees by
offering them better pay and promotion. Sainsbury’s should be more attentive of such
problems and may offer their employees more pay and promotion in order to keep
existing employees satisfied. HR planning is lacking part from other three.
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7. Conclusion
Though M&S, Selfridges, Primark and Sainsbury is the leading retail company in their
industry, they have provide a good types of training programs for their employee. And
they also want to avoid any kinds of malpractice in their organization. So that they can
do well in their competitive market. They also care about their employees so that they
stay as leader. It can be said that HR practice is essential for every organization. It
increases productivity, cohesiveness for better performance, good relation between
employees, allow an individual to take decision according to his and company’s
requirement. Moreover, it helps an employee to do diverse work and multitasking. On
other hand, increase motivation level and loyalty over organization.
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