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Term Paper
On
HR Practices of Marks & Spencer, Selfridges, Primark
and Sainsbury's
Submitted to,
Professor Dr. Md. Mahmodul Hasan
Faculty EMBA/ MBA Program
School of Business
North South University
Submitted By
Bangali Bhoot
BUS 601: Human Resource Management
Section: 4
Date of submission: March 30, 2016
pg. 2
Letter of Transmittal
March 30, 2016
Professor Dr. M. Mahmodul Hasan
Faculty EMBA/ MBA Program, School of Business,
North South University
Plot: 15, Block: B, Bashundhara, Dhaka 1229.
Subject: Submission of Term paper on HR Practices of Marks & Spencer, Selfridges,
Primark and Sainsbury's
Dear Sir,
It is a great pleasure to present the term paper on HR Practices of M & S, Selfridges,
Primark and Sainsbury for the course BUS 601-Human Resource Management,
which had been a great experience for us to work with such a real life issue.
Throughout the study we have tried with the best of our capacity to accommodate as
much information and relevant issues as possible and tried to follow the instructions
as you have suggested. We tried to make and let it look like a professional and
informative one. We sincerely believe that it will satisfy your requirements.
We are very grateful to you for your guidance and kind cooperation at every step of
our endeavor on this term paper.
Sincerely yours,
Group: Bangali Bhoot
No Name ID No. Signature
1 Mst. Mahbuba Naznin 1531127060
2 Rifat Arefin 161 1543 660
3 Miraj Ahmed Chowdhury 1513125 660
4 Zakia Afrin Rikza 1521842 660
5 Ifran Khandoker 1513153 660
pg. 3
Acknowledgement
The success of this report depends on the contribution of number of people specially
those who have shared their thoughtful guidance and suggestions to complete this
report.
First, we express our sincere gratitude to our honorable faculty Professor Dr. M.
Mahmodul Hasan for his valuable contribution to the preparation of this report.
He has been gracious enough to spare time out from his busy schedule for giving us
all the necessary assistance throughout the entire period of the semester and the
report writing time. Without his help this report might not have been a
comprehensive one.
We are also thankful to those people, who helped by participating in the research
work and provided us valuable and necessary information. It is our great pleasure
that, we get heartily cooperation from all of them. Without their cooperation and
information we could not able to complete our survey and also the term paper.
It would be incomplete if we do not consider the contribution of our study partner
and friends inside and outside of the classroom. We also like to thank them for their
cooperation and doing the right job at the right time.
pg. 4
Summary
Employees are the important resources for an organization. If employees are
reluctant to work then the organization could not run properly according to the plan.
HR practices are the most important key to make them productive and efficient in
workplace. For getting practical information we have to research on M&S, Selfridges,
Primark and Sainsbury.
This report explains about the HR practice of M&S, Selfridges, Primark and
Sainsbury the leading retail company whom has large amount of market share in the
industry. All are providing their service to millions of customers for 24 hours. So to
provide this valued services they hired a huge numbers of talented employees to keep
their promises to the customers. They are not only concerned to their external
customers at the same time they are very much careful about their internal
customers (their employees) who brought the name and fame.
In this report we tried to show M&S, Selfridges, Primark and Sainsbury‟s recruitment
and selection process, performance and reward system, training and development
program, financial budget, health and safety issue also challenges of HR
management. So to fulfill the purpose, we have collected information mostly from
secondary sources. We have presented here how those company mange human
resource what are factors important for consideration also a comparison between
them.
pg. 5
Contents
Human Resource Management (HRM) .............................................................................. 8
Chapter 1: HR Practices of Marks Spencer ......................................................................... 9
HR management in the 21st Century: Challenges for the future: ..................................... 10
The impact of Information Technology on HR Management: ......................................... 10
The recruitment & selection process at Marks and Spencer: ............................................ 11
Performance & Reward systems of Marks & Spencer: ..................................................... 12
Career Development & Training & Development Program: ............................................ 14
Financial budgets of HR:................................................................................................... 14
Health & Safety Issues & HR Ethics: ................................................................................ 15
Recommendation .............................................................................................................. 16
Chapter 2: HR Practices of Selfridges ................................................................................ 17
HR Management in the 21st Century: Challenges for the Future .................................... 18
1.1. Workforce Diversity: ............................................................................................ 18
1.2. Environmental: .................................................................................................... 18
1.3. The Leadership role: ............................................................................................ 18
The Impact of Information Technology on HR Management: Opportunities and
Challenges.......................................................................................................................... 19
Recruitment & Selection Process ...................................................................................... 19
Performance & Reward Systems ....................................................................................... 19
Rewards & Benefits ........................................................................................................ 20
Career Development and Training & Development Program .......................................... 20
Financial Budget of HR [Salary + Bonus + Increments + others] ................................... 21
Salary: ............................................................................................................................ 21
Benefits: ......................................................................................................................... 21
Benefits package: ........................................................................................................... 22
Health & Safety Issues and HR Ethics .............................................................................. 22
pg. 6
Recommendation .............................................................................................................. 22
Chapter 3: HR practices of Primark .................................................................................. 24
HR Management in the 21st Century: Challenges for the Future: ................................... 25
The Impact of Information Technology on HR Management: ......................................... 25
Opportunities and Challenges: ...................................................................................... 25
Recruitment & Selection Process: ..................................................................................... 25
Performance & Reward Systems: ...................................................................................... 27
Career Development and Training of Primark ................................................................. 27
Development: ................................................................................................................. 28
Financial Budget of HR ..................................................................................................... 29
Salary, Bonus, Increments and Others: ........................................................................ 30
Health & Safety Issues ....................................................................................................... 31
Fire Safety Program ....................................................................................................... 33
HR Ethics ....................................................................................................................... 33
Recommendation: ............................................................................................................. 33
Chapter: 4- HR Practices of Sainsbury‟s ........................................................................... 35
Sainsbury‟s ........................................................................................................................ 36
HR Management in the 21st century: Challenges for the Future ..................................... 36
Impact of Information Technology on HR Management Opportunities and
Challenges: ........................................................................................................................ 37
Globalization: ................................................................................................................. 37
Online Recruitment: ...................................................................................................... 37
Technology: .................................................................................................................... 37
Social Media: ................................................................................................................. 37
Ethics and Employee Rights: ........................................................................................ 37
Recruitment and Selection process: ................................................................................. 38
Selection Process: .......................................................................................................... 38
Performance and Reward Systems ................................................................................... 39
pg. 7
Career Development and Training & Development Program: ......................................... 40
Financial Budgets of HR [Salary, bonus, increments & others]: ..................................... 40
Health & Safety Issues and HR Ethics: ............................................................................. 41
Recommendations ............................................................................................................. 42
Compare and Contrast among Marks Spencer, Selfridges & Co., Primark, and
Sainsbury: .......................................................................................................................... 43
Conclusion ......................................................................................................................... 44
References: ........................................................................................................................ 46
Table of Figures:
Figure 1: Motivational Theories ................................................................................... 12
Figure 2: Recruitment and Selection Process .............................................................. 26
Figure 3: Online Recruiting Process ............................................................................ 27
Figure 4: Success: Associated British Foods has seen its share prices rise over the
course of the last three months, pictured, as its budget clothing chain Primark
continued to perform increasingly well. ...................................................................... 30
Figure 5: Distribution of Benefits ................................................................................ 31
Figure 6: Recruiting and selection Process .................................................................. 38
Figure 7: Review of Sainsbury's CPR ........................................................................... 39
Figure 8: Employee costs in Year 2013 and 2014 ........................................................40
Figure 9: Pi chart of different employee costs. ............................................................ 41
pg. 8
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.
pg. 9
Chapter 1: HR Practices of Marks Spencer
pg. 10
Marks and Spencer (also known as M&S;
colloquially known as Marks and Sparks,
Marks's or, simply, Marks) is a major British
multinational retailer headquartered in the
City of Westminster, London. It specializes in
the selling of clothing, home products and
luxury food products. M&S was founded in
1884 by Michael Marks and Thomas Spencer in Leeds.
HR management in the 21st Century: Challenges for the future:
There are few factors that are affecting the current HRM Policies of Marks &
Spencer:
1. Globalization:
M & S has introduced EEO policies to ensure diversified work force which
creates comfortable work environment.
2. Technology Advancement:
M & S is now using advance technology for-
Recruitment and selection procedures
To provide facilities and benefits to the employees.
3. Change in political and legal environment:
Another challenge for Marks and Spencer is changing environment. So M & S tries to
accept the changes and follow the customer demands.
The impact of Information Technology on HR Management:
1. M & S launched a website in February 2014 which acts 24 / 7 to their products
and stores.
2. M & S also undergoing a transformation program that will provide a first and
flexible supply chain to better serve customers
pg. 11
The recruitment & selection process at Marks and Spencer:
Recruitment Process:
1. Search through their website under the careers
section for the job role you are interested
2. The search will show all the job roles within the
store across the various branches in the UK and
its recruitment is conducted through the Marks and Spencer website or their
3. hotline.
4. Click on the job role with the most suitable location to you.
5. The Marks and Spencer recruitment process consists of an online application
form. An FAQ page is available before you apply to answer any potential
queries.
6. This will require you to create a login as a registered user. A confirmation
email will be sent to you to validate the account for the Marks and Spencer
recruitment process.
7. Once you submit the application form, an email receipt will be sent to your
given email address.
Once a person applies for a job through the Marks and Spencer recruitment process, he or
she cannot re-apply for a position within the next 6 months due to high demand Participants
of recruitment can revisit the site to track the progress for a job, and editing personal details.
pg. 12
Performance & Reward systems of Marks & Spencer:
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. It‟s actually a
process 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. If targets are not met M&S can set out
courses of action to fix the problem for example giving the workers more training. This is the
link between performance management and training and development
How Marks and Spencer's performance management/training and
development systems have been influenced by the motivational theories:
M&S uses Maslow's theory by helping staff set and reaches their goals at work,
they encourage their staff and praise them when they are doing well and staff
also receives rewards for good work.
Figure 1: Motivational Theories
pg. 13
M&S uses Herzberg‟s two factor theory by treated their employees well by
giving them a good salary, good working conditions and by giving them sick
pays and pension‟s schemes, they also give their staff responsibilities to make
them feel like there are important to the company and motivate them.
M&S uses McGregor‟s theory by having managers who have trust in the
workers and help them improve and do their best and also by giving managers
bonuses to motivate them.
Marks and Spencer's also use Taylor‟s Scientific Management theory by
paying its employees in order to work and by having able managers control
the staff.
Rewards and benefits:
Pay – M & S reviews their basic pay every year, plus they offer extra
performance rewards to recognize individual achievements.
Employee discount –20% discount on all in-store and online purchases for
their employees.
Holidays – Employees are entitled to a minimum of 28 days‟ statutory
holiday per year.
Bonus – M & S offers a number of discretionary bonus schemes on offer that
reward their employees for helping us to reach our goals.
Pension – M & S offers an excellent Defined Contribution pension plan,
where if employees contribute 3% of pay M&S will contribute 6%.
Life Assurance – From day one, employee will receive life assurance cover
to the value of two times his/her annual pensionable salary.
Shares save – By joining one can save any amount between £5 and £250
each month for 3 years. At the end of 3 years he/she can get money back or
buy shares at an exclusive 20% discounted price, which is set at the start of the
scheme.
Salary Sacrifice: Salary Sacrifice schemes covering- childcare vouchers,
holiday buying, car leasing and cycle to work, save money on tax and National
Insurance.
pg. 14
Discounts – Employees can enjoy 1,500 special discounts covering holidays,
leisure attractions and many more products and services.
Heath & Wellbeing – M & S offer discounted healthcare products and a
wellbeing website with top tips and health guides, to keep fighting fit.
Charity Volunteer Day –Any employee have the opportunity to volunteer
for one day at a charity of own choice.
Career Development & Training & Development Program:
1. On the Job Learning: There is a huge opportunity of on the job learning in M
& S.
2. Store attachments: Through their store attachment program one will
get hands-on experience in one of stores.
3. Corporate learning Program: M&N invests plenty of time with employees to
ensure they receive all the right technical training.
4. Role Specific Training: Through role-specific training, M&S helps its
employees to reach own goals.
5. Development Reviews: M&S ensures employee achievements are recognized,
feedback is heard and, of course, that one‟s career is progressing.
Financial budgets of HR:
Employee Costs 2014(£m) 2013(£m)
Wages & salaries including bonus and benefits 2980 2540
Social security costs 185 158
Pension costs –contribution schemes 121 105
Pension costs –benefit schemes 78 52
Health insurance 28 25
Bonus scheme 12 9
Total 3404 2889
pg. 15
Health & Safety Issues & HR Ethics:
1. The Fire Health & Safety Committee - advises on fire, health & safety
policy, monitors its effectiveness and reviews key performance measures on a
quarterly basis.
2. The Store/Site Manager - is accountable and responsible for ensuring in
conjunction with their Fire, Health & Safety Officer that Company Health &
Safety Policy is implemented. This includes:
Suitable Fire, Health & Safety induction and legislative update training for all
employees.
The prevention, reporting, and investigation of accidents.
The completion of store specific risk assessments and maintenance of known
hazard information.
3. Occupational Health Services – provide advice and support to line
managers on managing the impact of work on health, and health on work.
4. Business Involvement Groups (BIGs) - They should discuss health &
safety policy, performance and implementation as an agenda item at each
meeting and update the business through the FHSO Networks.
0
500
1000
1500
2000
2500
3000
3500
4000
2014
2013
pg. 16
5. Retail Finance and Operations - and its Trading, Safely and Legally Team
are responsible for determining and monitoring risk assessments, work
practices and enforcement measures.
6. Property Development and Facilities Management - are responsible
for the provision of working areas, equipment and materials that are safe and
without risk to health.
7. The Fire, Health & Safety Officer (FHSO) - assists the Store Manager in
promoting and improving the FHS culture in stores, ensuring a consistently
safe, secure and healthy environment for all staff through workplace
assessment, training and monitoring. In addition, supports your Plan A
Champion and Goals.
8. All employees must be aware of their individual responsibility-If an
employee has any concerns about their health & safety they should speak to:
The Store / Site Manager / Line Manager
The Store / Site Fire, Health & Safety Officer
Any member of your Business Involvement Group
The Head Office Fire, Health & Safety Team
Recommendation
Marks & Spencer is very good in their overall procedure of recruitment, selection, training &
allover HR practices. I found it as most great organization & most great working
environment.
pg. 17
Chapter 2: HR Practices of Selfridges
pg. 18
HR Management in the 21st Century: Challenges for the
Future
The modern business cannot effectively operate in the business world if the labor force is not
well equipped with the latest technology and techniques. This is the responsibility of the
human resource manager to properly train the work force and to achieve competitive
advantages of business in 21st century.
There are various other issues within which the modern business operates include the
organizational environment, the ethical and Environmental challenges, globalization,
economic and political structure, employers and employees‟ issues, technological
innovations and so on. The following are the challenges faced by Selfridges & Co.
1.1. Workforce Diversity:
One of the HRM challenges of 21st century is the workforce diversification. Workforce
diversification means to effectively manage the workforce that come from different
backgrounds with respect to regions, cultures, race and gender. At Selfridges, in every
department and at every level, they bring together people from a broad variety of
backgrounds, cultures and stages in life. What unite them are the personal and professional
qualities that make them right for us. Now such multinational organizations must adopt
several strategies to compete in the foreign markets through people.
1.2. Environmental:
At Selfridges, being environmentally responsible means long term thinking about improving
their energy efficiency, sourcing sustainably, managing waste and minimizing the direct
impact on natural environment.
1.3. The Leadership role:
The team leader role at Selfridges has been redefined to build more effective communication.
The senior management at Selfridges believed that the improvement to performance and
attitudes were due to the changes in team leader role. The leader‟s influence on the
workforce they exercise during work. The research reveals the result that the commitment,
high performance and work behavior are directly influenced from the first line
manager‟s course of action they exercise at work.
pg. 19
The Impact of Information Technology on HR Management:
Opportunities and Challenges
Technology has had a positive effect on internal operations for organizations, but it also has
changed the way human resource manager‟s work. HRM professionals have become the
primary source of information in many organizations. Information can quickly and easily be
communicated via company Web sites and intranets, e-mail, and messaging. Human
Resource Information Systems (HRIS) allow HRM professionals to better facilitate human
resource plans, make decisions faster, clearly define jobs, evaluate performance, and provide
cost effective benefits that employees want. Technology helps to strengthen communications
with both the external community and employees.
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.
Performance & Reward Systems
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.
pg. 20
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
Career Development and Training & Development Program
Selfridge‟s 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. Their
activities are the key to maintaining Selfridges‟s customer service standards at a constant
peak.
They want from an employee to get the most out of his/her role because they want to make
the most of his/her abilities. And as well as three months' induction and continuous on-the-
job training, one can also take advantage of a broad range of programs and workshops,
designed to help him develop his particular sales, management or technical skills.
All Sales Associates enjoy weekly training sessions, focused on delivering excellent customer
service. As a Manager, one can explore one‟s potential through a range of development
workshops, designed to build world-class leadership skills. Furthermore, if his role requires a
professional qualification, the authority will be happy to talk to him about financial support.
At Selfridges, your career is what you make it. Selfridges strongly believe that every day their
reputation rests on their employees shoulders. So if someone has the talent, they can
guarantee that they will offer his/her the opportunity to develop.
pg. 21
Financial Budget of HR [Salary + Bonus + Increments +
others]
Salary:
Selfridges provide a salary which is 5% more than the market. The hourly salary rate of a
sales associate is 7.60 pounds and hourly rate of a sales assistant is 7.27 pounds.
Benefits:
Generous holiday entitlement
Extremely generous discount throughout the whole store
Contributory pension scheme
Life cover
Long service awards
Performance related incentives
Discount: up to 35% off shopping in our stores.
Commission: team members can earn up to 2% on everything they sell.
Pension: a Defined Contribution scheme provided by Aviva.
Bonus: For managers and Head Office team members.
Life Assurance: free, for all Selfridges team members.
Ticket Loans: interest free season ticket loans.
Childcare Vouchers: savings on childcare of up to £
Gym Membership: the best deals so our teams can join a gym close to where
they live or work.
Triage & Rehabilitation: physiotherapist, osteopath or chiropractor.
Cash Plan: money back towards their healthcare costs
Eye care: cost of having eyes tested and/or for glasses for computer
Cycle to Work: the scheme offers the opportunity to hire a bicycle and safety
equipment.
Private Health Cover: For managers they offer private health cover with
BUPA.
pg. 22
Health-Line: 24/7 health advice and support is available for anyone with
private health cover.
Benefits package:
As well as team member discount, they offer a number of benefits including:
22-27 days' holiday, plus bank holidays (subject to any store operational
requirements)
Incentive and commission schemes for Sales Associate roles (dependent on
the area you work in)
For all other roles, bonus potential of 5-40% of base salary (dependent on the
role and area you work in)
Health & Safety Issues and HR Ethics
Selfridges‟ HR, like all other businesses, has a safety policy. This is a legal obligation that
they must follow. The policy states in simple terms what the goals of Selfridges are in relation
to health and safety of employees. It also consists of actions that are to be carried out by the
key staff members. The policy includes planning for coverage of training and instruction,
company rules and preparations for unpredictable scenario. This will be signed by the senior
manager; it is revised regularly to be kept up to date. Selfridges‟ HR has a unique code of
practice. It states what employees should do in an event of an emergency, such as a fire,
earthquake etc. It elaborates how to contact a first-aider, how to find a medical room, how to
call a doctor and so on. Selfridge‟s HR has a health and safety office in all their stores; they
are responsible for all health and safety policies and training. All accidents, including the
nearly missed ones, are recorded in an accident book so they can see where improvements
need to be made.
Recommendation
Some recommendations for Selfridges are:
1. Periodical staff/management meetings including collective team-feedback -
rather than individual one- would be a big plus.
2. Very poor cross-department communication, concession partners treated
poorly, long hours that change with little notice, poor work life balance are
pg. 23
some common cons that need to be concentrated and the authority should
take necessary steps to prevent these.
3. Adequate training for every staff is mandatory as it is related with selling
luxury goods.
4. There should be an equal opportunity for every employee and the workplace
has to be favorable with them.
5. Listening to own staff and learning from them are other important
prerequisites for Selfridges.
6. The integrity and honesty from the authority is a must.
7. Long working hours is another drawback for Selfridges which needs to be
solved efficiently.
8. Because of its tremendous goodwill, it can create more market segmentation
rather than just holding with the one and only Retailing.
pg. 24
Chapter 3: HR practices of Primark
pg. 25
HR Management in the 21st Century: Challenges for the Future:
Today‟s business world is facing different kinds of pressure. Although Primark is having
success as a brand and growing in terms of value but it still has to face some challenges in the
21st century. These challenges are environmental, organizational and technological.
Environmental challenge such as increasing of globalization, business climate etc.
Technological challenges include rapid technological changes, tougher competition, rapid
technological development; organizational challenges such new organizational alliances ,
changes and understanding the workforce, new structure and hierarchy, recruiting and
retaining overtime, new ways of assessment etc.
The Impact of Information Technology on HR Management:
Opportunities and Challenges:
Primark has a helpful outlook toward IT and HR management. For handling HR issues it
utilizes Informational Technology. Widespread uses of IT minimize the unnecessary works
and helps to achieve efficiency of HR professionals. It also reduce HR professionals time of
work and helps to gather information easily. Training and learning become more effective.
Development of IT makes communication so easy. Hr professional can contact with
supervisor, employee and also call meeting geographically. It reduces cost of work and
processing. Practicing of self-service technology decrease the processing cost of HR. Cost of
staffing, staffing cost, increasing hiring efficiency , employee turnover reduce for E-selection
and e-recruiting.
Recruitment & Selection Process:
Same methodology of online applications applies for management positions as well.
Through Primark‟s web side job vacancies are advertised.
The candidates are presented with a set of online question about the
management and real life issue.
pg. 26
After successful completion of questionnaires, candidates are issued an
application reference number and are invited for a panel interview.
Interview session can be a panel interview or one-to-one interview.
Candidates are tested on the basis of his/ her education, intelligence, aptitude,
ability, communication skill etc. Candidate‟s ability to handle difficult
situation and work under stress also analyzed.
After successful completion of interview session , candidates are invited to
attend an assessment center where candidates move on through group task,
presentation. And this gives HR team a complete idea about a candidate that
how much he/ she is suitable for practical job.
Figure 2: Recruitment and Selection Process
Multi dimension selection
Store postings
Job centre advertisement
Advertisement at internet
Online Recruitment
System
pg. 27
Figure 3: Online Recruiting Process
Performance & Reward Systems:
Primark rewards its staff and employees in different ways. They are
Salaries are competitive and subject to and subject to annual review
Structured training and development program
Promotional opportunities for everyone
Contributory pension scheme
Childcare Voucher scheme
Competitive annual leave entitlement
Health insurance
Bonus scheme
Flexi-time scheme for certain head office functions
Variety of shift patterns available to suit your lifestyle
Career Development and Training of Primark
Job Offer
Invited for Interview
Answer a set of online questions
Fill an application Form
Registration with E Recruitment system
pg. 28
Primark have a world class Management Development Program to help build your career at
all levels. Whether you‟re in our stores or head office they aim to build on your talents and
skills during your amazing career journey with them. Primark encourage ideas, team spirit
and passion across all our functions.
As a new employee in any role with Primark, you will be given a structured induction
program to welcome you into your new role and team.
Primark then offer various programs to either assist to you to become a member of
management, or to develop you further in your role. Their development programs start at all
levels from entry level through to senior leadership programs.
Primark advertise promotional opportunities within the business to our existing employees,
it‟s something we‟re really proud of and it shows we‟re committed to your development.
If you join Primark, you‟ll be encouraged to play an active part in self-development where
you will be given ownership of your career with the support and guidance of our experienced
managers. Primark will give you the tools and resources; all they need from you is dedication
and enthusiasm!
Primark also offer task specific training support for our employees who want to enhance
their existing skills or develop new ones by offering NVQ programs in the following areas:
Development:
The human resource development does not own HR development alone it must be owned by
the organization as a whole, HR development strategy should focus on the organizations
strategy and it should be used to identify the skills and competencies required.-
Handy(1988)
Retail/Customer
Service
Administration
pg. 29
Financial Budget of HR
Falling profits across Associated British Foods' (ABF) operations have been rescued by
booming sales at its budget retailer Primark.
ABF said in its latest trading update that the strength of the pound had cut its profits by
some £30m. It has also been hit by the falling price of sugar.
But Primark sales are expected to have risen some 13% over its last financial year, which
ends on 12 September. The retailer contributes more than half of ABF's annual profit.
Much of the growth has come from opening new stores in the Netherlands, Germany, France
and Spain.
The company said that all stores that had opened in the last 18 months had "very high sales
densities", while France was its most successful new market this year.
Primark is preparing to open its first US store in the historic Burnham building in Boston on
Thursday and another near Philadelphia before Christmas.
It will have opened almost one million sq ft of selling space over the last 12 months, bringing
its total to 293 stores.
Parent company Associated British Foods (ABF) put the chain's success down to its rapid
expansion after several new stores were launched last year.
There are now 269 Primark stores covering nearly 10 million square feet of selling space
across nine European countries - with the company now hoping to launch in the U.S.
It plans to open a 70,000 square-foot store in Boston next year with negotiations under way
to open further stores in the north east of the country in 2016.
The new store in Boston will be in the Burnham Building, which is currently being
renovated, at Downtown Crossing, in the heart of the city. The site was previously home to
Boston's famous Filene's department store.
The retailer said: 'Primark has a strong consumer following in nine countries in Western
Europe. After extensive research it has been decided to take the concept to consumers in the
USA.' Primark's expansion in the UK has been focused on increasing selling space in major
cities, with the opening of its second store in London's Oxford Street and extensions to shops
pg. 30
in Newcastle and Manchester.
Figure 4: Success: Associated British Foods has seen its share prices rise over the course of the
last three months, pictured, as its budget clothing chain Primark continued to perform
increasingly well.
Salary, Bonus, Increments and Others:
Salaries are competitive and subject to annual review:
pg. 31
Figure 5: Distribution of Benefits
Other benefits include:
Structured training and development programs
Promotional opportunities for everyone
Contributory pension scheme
Childcare Voucher scheme
Primark offer a variety of benefits like:
Competitive annual leave entitlement
Health insurance (dependant on the role/level/function)
Bonus scheme (dependant on the role/level/function)
Flexi-time scheme for certain head office functions
Health & Safety Issues
pg. 32
The issue of worker safety has always been a priority for Primark and forms an important
part of our Ethical Audit Program. In some countries where awareness of workplace safety
(particularly fire safety) is limited, our local teams provide training and awareness programs
for factory managers and workers.
Since 2011 we have partnered with (BSR) Business for Social Responsibility, a global non-
profit organization, local partners and our suppliers on the HER health (Health Enables
Returns) initiative. HER health providers - health education and access to healthcare to
women working in the factories that make Primark‟s product.
Women make up about 80% of the workers that manufacture clothes for Primark. In low
income countries women often lack access to adequate healthcare and the knowledge they
need to look after their own health. Common issues include poor pre and post-natal care,
anaemia, the risk of infections and illness including HIV / AIDS, hepatitis B and C, and
tuberculosis.
pg. 33
Fire Safety Program
Primark‟s fire safety program for suppliers in Bangladesh has been in place since 2010. It
includes dedicated fire safety inspections, and training for suppliers and factories. A fire
safety expert from the Bangladesh Fire Service worked with them to provide guidelines
which they have used to roll out their training program which all factories receive before
commencing work.
To ensure that the safety requirements are communicated effectively Primark have worked
in collaboration with a local NGO SHEVA to produce training leaflets for workers.
HR Ethics
Primark and DFID join forces to improve the wellbeing of garment workers in developing
markets.
Primark has announced the start of a new partnership with the Department for International
Development (DFID) to improve working conditions for garment workers in developing
markets.
The partnership will combine the presence, networks and expertise of both organizations to
improve the health and wellbeing of local workers, bolster national economic development
and help alleviate poverty in five of Primark‟s key markets which DFID also works in:
Bangladesh, Pakistan, Burma, Ethiopia and India.
Recommendation:
Primark is using very strong policies in its HRM. But there are some areas that it should
need more focuses on:
pg. 34
1. Primark should give more focus on pension benefit cost and social
security cost.
2. They should develop more standardized pay and benefit plan.
3. No indication of plans to use the learning gained in other parts of the
supply chain.
4. They should give extra more pay for the night shift staffs for encourage
them to work during late nights.
5. Should focus more on its retail employees as it is the core of Primark.
pg. 35
Chapter: 4- HR Practices of Sainsbury’s
pg. 36
Sainsbury’s
Sainsbury's is the second largest chain of supermarkets in the United Kingdom with a share
of the UK supermarket sector of 16.9%. Founded in 1869 by John James Sainsbury with a
shop in Drury Lane, London, the company became the largest grocery retailer in 1922, was
an early adopter of self-service retailing in the UK, and had its heyday during the 1980s.
HR Management in the 21st century: Challenges for the Future
There are many factors contributing to HR managers functions of the Sainsbury and these
activities are constantly changing. The most of the challenges and issues which are being
faced by the HR of Sainsbury in 21 st century are workforce diversity, Organizational
effectiveness, change management, globalization, leadership development, E- commerce,
technology, health and safety, learning and development, recruitment and skill labor,
succession planning, compensation, retention of the employees, multicultural work force,
retrenchment of the employees, change in the demand of the government, ethical
consideration of the organization which may directly or indirectly affect the organization
competitive advantages. In this modern business world, markets have become more
challenge where both the domestic and foreign competitors try to capture as maximum
market shares as possible. However, they have no value without the human resource because
knowledgeable and skill workforce facilitates a company that will make competitive
advantage over other. Therefore, all the HR Managers make several strategies to develop and
retain such human resource because human resource is the resource which makes a 35
organization successful in the field of globalization. The human resource functions of the
Sainsbury in the 21 st century are human resource planning, job Analysis design,
recruitment and selection, orientation and induction, training and development,
promotion/transfer/termination, compensation and remuneration, motivation, welfare,
health and safety, industrial relation and maintenance & equal employment. In order to
manage such diverse human resources effectively, business organization adopt and make the
policies and practices according to the culture and environment. HRM needs to customize
this change by ensuring that the organization has the right people with sufficient knowledge,
desire skill and abilities to build such culture in the organization which effectively contribute
and enable the organization towards change.
pg. 37
Impact of Information Technology on HR Management
Opportunities and Challenges:
Globalization:
The Internet has opened up the job market, extending the talent pool to almost every nook of
the globe. In the 21st century, HR professionals recruit candidates from various countries
who speak different languages and practice customs that may be unlike those of the
company's local employees. This brings about changes to typical HR policies.
Online Recruitment:
Through the technology Sainsbury‟s now is doing their recruitment, assessing, and selection
of new employees which saves time and cost a huge.
Technology:
Technology has changed the business world many times over. In the Information Age, the
advent of computers and the Internet has increased that impact significantly. Many
businesses cannot even function without the use of computer technology. This impact is seen
in nearly all areas of business, including human resources, where technology continues to
have a significant impact on HR practices.
Social Media:
HR professionals today might use social
media websites, such as Facebook and
LinkedIn, to get a better sense of job
candidates. Challenged to dig deeper, HR
will need to use social media for the
organization's benefit in an extremely
competitive job market for both candidates and hiring companies. HR professionals must be
ready to grab the best talent before the competitor, and this could mean beginning the dialog
even before the candidate applies.
Ethics and Employee Rights:
Electronic surveillance of employees by employers is an issue that pits an organization„s
desire for control against an employee„s right to privacy. The development of increasingly
sophisticated surveillance software only adds to the ethical dilemma of how far an
organization should go in monitoring the behavior of employees who work on computers.
pg. 38
Recruitment and Selection process:
The internal recruitment in Sainsbury involves the recruitment team first looking at the
Sainsbury Internal Talent Program (SITP). This Program allow all current employee of
Sainsbury who are either looking for move within the same department or seeking a more
higher level position in form of promotion. However, if there are no positive responses from
any employee under the Sainsbury Internal Talent Program, the vacancies are now officially
advertised on the intranet for the entire employee to see and apply. During this stage, there
is a timestamp such as submission of application deadline date. Furthermore, Sainsbury also
use external recruitment process to advertise their vacancies most of which are done on the
internet and Sainsbury‟s website for their managerial position while others are done using
various other means such as advertising on local papers, job centre and in their stores.
Selection Process:
1. The first method that Sainsbury„s use to collect curriculum vitae„s (C.V) and letter of
Applicant.
2. Then, Sainsbury will shortlist candidate. This process is done by recruitment manager.
This shortlist of candidate is done to meet the requirement of the company that they are
looking for, right person for the right job.
3. Then Sainsbury conducts Interview stage. Interview is the main stage of selecting
applicants. A number of planned question are designed to discover candidates knowledge.
An interview allows candidates to represent their skills and knowledge for the selection. It
Figure 6: Recruiting and selection Process
pg. 39
will get to know for the interviewer who is good at paper and those who have
communications skills.
4. Suitable person who best suit according to the company requirements will be selected for
the job.
Performance and Reward Systems
According to colleague performance review (CPR) form (which is included in appendix),
Sainsbury‟s has established a balanced scorecard that includes business key indicators like
Sales, MCM (Mystery Customer Measure), MAC (Mystery Availability Check), Absence,
Talkback, Turnover, Waste, Shrinkage, Labor Cost etc.
A table can be prepared related to this topic from the Sainsbury‟s colleague performance
review (CPR) which is collected from the personnel manager during the interview published
in Sainsbury‟s Website -
Figure 7: Review of Sainsbury's CPR
pg. 40
Career Development and Training & Development Program:
Sainsbury's place took steps which were planned at revolutionizing its human resources in to
a real onset of value addition to the company. Such steps included training and development
programs. Sainsbury uses both:
a. On the Job training program
b. Off the job training program
The two training methods mentioned above will best suit the UK retail giant Sainsbury‟s. The
organization is well acquainted with its training structure and the employee support has
enabled the organization to have much improved employee performance qualities. The
convenient store provides the employees increased work experience. The cultural support
increase value integration of the training programs and Sainsbury‟s has been able to develop
increased employee relationship to their management. Such strong training support has
helped the organization go through turbulent times of toughness and low performance levels.
Financial Budgets of HR [Salary, bonus, increments & others]:
Figure 8: Employee costs in Year 2013 and 2014
pg. 41
Health & Safety Issues and HR Ethics:
The HR of Sainsbury has a safety policy. Safety policy is a legal requirement and the policy
signifies the health and safety of employees. The actions of the key members of staff are
responsible for carrying out the policy. The policy will include arrangements of training and
instruction and company„s rules and emergency. This safety policy will be signed by the
senior manager and it is revised regularly to be kept up to date.
The main unique for the HR of Sainsbury is that it has own codes of practice. This codes of
practice states what employees should do in an event of an emergency such as a fire, bomb
scare etc. It says how to contact a first-aider, where a medical room is, calling a doctor and so
on. Sainsbury„s HR has a health and safety office in all their stores. These offices have the
responsibility for all health and safety policies and training. This office also responsible for
giving advice and suggestions to store managers about their responsibilities for healthy and
safety and make sure that all employees working in stores are informed about them. This is
the health and safety laws in the Sainsbury.
Laws require all store managers and employees who work there to comply with the health
and safety legislation. Human resources of Sainsbury record all accidents in an accident book
to see where improvements need to be made. HR of Sainsbury also conducts training session
for their staffs for health and safety jobs which include roles being health and safety officers,
safety committee meeting holders etc. Customers are also accounted into the health and
safety acts for Sainsbury„s HR such as Sainsbury provides wheelchair access, lifts, helpers etc
for disability needs, Sainsbury regularly car parks for trolleys causing hazards, etc, Sainsbury
keep clear customer fire exit at all times, Sainsbury provides shelves for all stacks at the
Figure 9: Pi chart of different employee costs.
pg. 42
lowest, put warning signs that can be always visible and heard, Sainsbury banned smoking,
drinking and eating in all stores, Sainsbury keep substances and solvents in unreachable
areas for children„s safety (3rd or 4th level shelves) and Sainsbury check toilets every half an
hour for staffs and customers .
Recommendations
The HR department of Sainsbury controls the workforce and main challenge is to keeping
them happy. Rivals may look for Sainsbury„s existing employees by offering them better pay
and promotion. The HRM department at Sainsbury„s should be more alert of this problem
and may offer their employees more pay and promotion in order to keep existing employees.
HRM needs to ensures that Sainsbury maintains the right employees quality and quantity
workers. Without these, some other HR related recommendations from us-
1. The HR department can also update its recruitment process by including behavioral
questions with the situational questions to judge the candidates compatibility.
2. Providing flexibility to choose the working hours by the candidates and employees, trying
to provide the employees friendly benefits like happy hours or nap rooms or rest rooms can
increase motivation and turn down turnover rate.
3. Transportation facilities can be provided to late night workers.
pg. 43
Compare and Contrast among Marks Spencer, Selfridges &
Co., Primark, and Sainsbury:
Color meanings:
Worst
Average
Best
Topic
Challenges Facing tough
competition
Maintaining e-
commerce sales
Higher
employee
turnover rate
Model
modification and
corporate
responsibility
Maintaining
employee
dissatisfaction
Quality
assurance
Quality
assurance
Customer
satisfaction
Impact of
Information
Technology
Transformation
program
Advanced
technological
trainings
Doesn‟t follow
online retail
IT based
advanced HR
policy
HR
management
Poor
organizational
structure,
autocratic
leadership.
Became follower
of competitors in
executing new HR
policies.
The HR
management of
Selfridge
emphasizes
upon the
customer
satisfaction
through the
motivated
employees.
Mostly focused
on traditional
administrative
and compliance
activities.
HR excellence
Award. HR is
now seen as
part of the
business team,
playing a
crucial part in
the overall
turnaround
Recruitment
and Selection
Online based
assessment test,
Graduate
Standard
online based
assessment
Standard online
based applicants
face problem
Online based
graduate
programs,
pg. 44
recruitment. test. while applying Succession
planning
Performance
and Reward
System
Bonus paid every
quarter, Advisor
of the month,
salary, Sacrifice
scheme, Health &
wellbeing pension
Generous
holiday
entitlement,
contributory
pension
scheme, Life
cover Long
service awards,
Performance
related
incentives.
Pension scheme,
Annual Leave,
Health
Insurance,
Bonus scheme,
Poor bonus
rewarding
system.
Percentage
bonus,
Contributory
pension
schemes,
Investment in
shares, Loans
for public
transport
tickets, Grants
for bicycle
purchase
Training and
Career
Development
Focus on the
training, learning
program, and
development
feedback. 360
training program
but short on
advanced level
training.
Advance T&D Provides
different types of
training
promotion
opportunities
and encourages
for ideas
Skill & Job
Knowledge
Training
Behavioral
training
Leadership
training
Diversity
training
Health and
Safety
Different types of
awareness
program and
individual
learning
Good
maintenance
Women and
Child Health
concern and
empowerment of
worker
Good
maintenance
Financial
Budget of HR
Payment of
pension funds
creates internal
conflicts.
Good Good Good
Conclusion
We have analyzed the Human Resource Management Practices of four prominent retail
chain stores. All four of these chain stores have originated from the UK and are based in the
pg. 45
UK. However, currently, nearly all the stores mentioned have operations outside the UK as
well. Primark operates in select European countries, whereas the operations of Marks and
Spencer are the most widespread, with stores in over 50 countries around the globe. One
aspect that is common across all the four companies is that they have all embraced the new
age of information technology. Along with using tools of the latest technology to manage
their daily operations, such as sourcing from the suppliers, communicating to suppliers,
communicating between the head office and retail branch stores, communication among
different levels of employee as well as other operations such as stock management, keeping
track of supplies, monitoring sales etc, all these companies have also implemented
technological advancements in the field of Human resource Management. All the companies
use a web-based recruitment system through which applicants can apply for jobs and go
through several steps of the recruitment process. The companies have also implemented
technology in other aspects of HR, such as appraisal, selection, benefits, reward systems, etc.
pg. 46
References:
Gary Dessler & Biju Varkkey, Human Resource Management (13e)
David A. DeCenzo & Stephen P. Robbins, Fundamentals of Human Resource Management
(11e)
http://en.wikipedia.org
http://www.theguardian.com/business/marksspencer
https://static.wcn.co.uk/company/marksandspencer/stores/ca.html
http://corporate.marksandspencer.com
http://en.wikipedia.org/wiki/Selfridges
http://selfridgescareers.com/
http://www.primark.com/en/careers/come-join-us
http://www.primark.com/en/our-ethics
http://en.wikipedia.org/wiki/Primark
http://www.theguardian.com/business/primark
http://en.wikipedia.org/wiki/Sainsbury%27s
https://sainsburys.jobs/
