Assignment

Module: Business Management Title: Human Resource Management

Mark & Spencer HRM analysis

Teacher: Marie Moynihan Student Name: Michal Harcej Email: michalharcej@gmail.com

Table of content
1. Introduction
2. Organization overview 3. History of HRM in Ireland

4. Mark & Spencers HR Manager function 5. Advantage and disadvantage of M&S HRM system 6. Conclusions 7. References

1. Introduction
In this piece of coursework I will be making contact with my chosen business 'Marks & Spencer' and I am going to conduct an investigation into the Human Resource Management within the business. I will be finding out what the responsibilities are of Human Resource Management in the business, why it is important and how it helps the everyday running of the business. I will be investigating the uses if labour market information and how it relates to human resources, I will be investigating the recruitment and selection process which is involved in Human Resources, how they help with training, staff development and motivation.

2. Organization overview
M&S is one of the UKs leading retailers, with over 21 million people visiting theirs stores each week. They offer stylish, high quality, great value clothing and home products, as well as outstanding quality foods, responsibly sourced from around 2,000 suppliers globally. Mark and Spencer employ over 75,000 people in the UK and abroad, and have over 600 UK stores, plus an expanding international business. M&S have over 20 shops including three Simply Food outlets throughout Ireland. M&S opened its first shop in the Republic on Mary Street, Dublin in 1979 (now part of the Jervis Shopping Centre). A shop in Grafton Street, followed in 1988, Cork in 1989, then in 1996 the Grafton Street location to its present location in the former Brown Thomas store and finally the first out-of-town shop in Liffey Valley in October 1998. The new Grafton Street shop now boasts M&S's only 'The Restaurant' offering outside of the UK. The company is committed to the expansion of its Irish operations with a number of new shops opened in 2009 including Sligo, Clonmel (opened 25 June 2009), Navan, and Limerick which is one of the largest in Ireland at 110,000 square feet (10,000 m2) but will be overtaken shortly after by a new store in Swords, County Dublin at 130,000 square feet (12,000 m2). The largest M&S stores in Ireland are at the Liffey Valley Shopping Centre located in Lucan, County Dublin/Clondalkin in South Dublin, at Mary Street in Dublin City Centre and at Dundrum Town Centre in Dun Laoghaire-Rathdown. M&S is the number one provider of women wear and lingerie in the UK, and is rapidly growing theirs market share in menswear, kids wear and home, due in part to theirs growing online business. Overall, M&S clothing and home ware sales account for 49% of their business. The other 51% of the business is in food, where they sell everything from fresh produce and groceries, to partly-prepared meals and ready meals. History of HRM in Ireland

3. History of HRM in Ireland

The history of Irish HRM stretches back into the eighteenth century, when local societies were established in the cities to represent craftsman such as bricklayers butchers and printers. In the mid nineteenth century new unions covering Britain and Ireland were established and rapidly put down roots. From about 1889 a new type of union began to emerge in Ireland. These unions aimed to organize the mass of skilled workers, and separate unions covering dockers, railwaymen and general workers were established in these years, with branches springing up in Ireland. The Irish Trade Union Congress (ITUC) was founded in 1894, three years after the death of Parnell. Its stated aim was to act as the collective voice of organized Irish labour. New unions began to establish themselves from 1907, with the arrival in Ireland of James Larkin as an organizer for the British dockers' union. Two years later he was dismissed by that union, following a disagreement on policy and established the Irish Transport and General Workers' Union. This union expanded rapidly and in doing so incurred the hostility of the employer class, which culminated in the Dublin Lock Out of 1913. 1912 - Partly under the influence of James Connolly, the ITUC established a political arm and became known as the Irish Labour Party and Trade Union Congress (ILPTUC). At its 1916 congress a motion was passed expressing sympathy with all those who had died for their beliefs. 1913 - The Dublin Lockout1: 1913 Leading Irish Union William Martin Murphy Dublin Tramway Co. Pilot group sacked 200 workers sacked 700 workers walk off Warrant issued for Larkin Public meeting Over 25,000 locked out January 1914 return to work, Larkin & Connolly emigrate 1920 - The Government of Ireland Act established Northern Ireland, thus giving organized Irish labour the unique distinction of organizing in two political jurisdictions. This was made even more complex by the fact that many of the affiliated unions had their head offices in the UK. The 1920s and 1930s saw the country mired in economic depression and falling living standards. In 1930 the Labour Party and the Congress separated amicably. 1946 - Set up of the Labour Court (L.R.C)
1

The Dublin Lock-out was a major industrial dispute between approximately 20,000 workers and 300 employers which took place in Ireland's capital city of Dublin. The dispute lasted from 26 August 1913 to 18 January 1914, and is often viewed as the most severe and significant industrial dispute in Irish history. Central to the dispute was the workers' right to unionize.

The 1950s were a truly dreadful decade in Ireland, with emigration and poverty at record levels. The opening up of the economy with the First Programme for Economic Expansion in 1958 and the retirement of de Valera in the same year quickened the pace of change. 1960 Arrival of Personal Management system which focused on training and workers personal development. 1970 Trade Union movement becomes strong and militant. Ireland and UK employers attempt to weaker power. Ireland diffused National Pay Agreement and set wages for all workers for specified period of 3 years. 1974 - The Health & Safety at Work Act - covering working conditions and the provision of safety equipment and hygiene. 1975 - The Sex Discrimination Act - stating that it is illegal to discriminate against an employee or an applicant for a job, on the grounds of their sex or their marital status 1976 - The Race Relations - stating that it is illegal for an employer to discriminate against an employee, or an applicant for a job, on the grounds of their ethnic background. 1980 - Gradual decline in union membership 1987 - Initiative from the ICTU led to the negotiation of the first of the current social partnership agreements, the Programmeme for National Recovery. And the rest, as they say, is history. 1990 - The Industrial Relations Acts - a massive dilution of workers' rights. The 1990 Act repealed the 1906 Trades Disputes Act in its entirety and re-enacted most of its provisions but modified them in such a way as to tilt the legal balance away from workers. Establish Labour Relation Commission and recognized need to new HRM system, which includes a range of functions. 1995 - The Disability Discrimination Act - stating that it is illegal for a business with 20 or more employees to discriminate against an employee, or an applicant for a job, on the grounds of their disability. 1996 - The Employment Rights Act - covering unfair dismissal, redundancy and maternity. 1998 - The Public Interest Disclosure Act - covering employees who disclose confidential information. 1999 - The Employment Relations Bill - stating that employees who have been in employment with the same business for a period of one year have the right not to be unfairly dismissed. The National Minimum Wage Act - making it illegal for employers to pay less than Act state to its full-time staff who are aged over 21 1980 2010 New strategies in HRM based on ideas taken from behavioral psychology (Maslows theory of motivation workers) 2000 2010 National Wages Agreement

4. Mark & Spencers HRM function

Marks and Spencers Human Resource Management would have to be very efficient and resourceful so that all of their responsibilities are carried out well and smoothly. Human Resource Management is the management of the people within a business, by recruiting, training and retaining employees with the necessary skills and competencies to perform their jobs effectively. HR Manager in general is responsible for: Human Resource Planning (H.R.P) - this looks at how many employees the business will need in the future, as well as the kind of employee that will be needed (e.g. graduate trainees, skilled-manual and supervisors). H.R.P. also ensures that the 'right' employee is in the 'right' job, to ensure the most efficiency and success of the employees. As Marks and Spencer is quite a large company there will be lots of staff turnover and new recruits quite often. Recruitment and selection of new employees - The recruitment and selection procedure starts when the business realises that there is a job, which needs to be filled. A job description is written out; this outlines the job title, as well as the tasks and the responsibilities that will be covered by the successful interviewee. The HRM departments need to advertise the job in newspapers, job centres, job agencies, the internet, radio, and internal notice-boards, so they can get as many people as possible to apply for the job. The job will probably be advertised inside the business as well. The advantages of employing someone from within the business are that a shorter training and induction period is necessary, as well as far less time and money being spent. This is a Job Advert from the Marks and Spencers website for a job description/advert in human resource management: "Human Resource Management in Stores - As a key part of store management you'll work in partnership with the Commercial teams to increase the capabilities of our people and achieve results through flexible and innovative solutions. Our biggest asset is, and always has been, our people and you will ensure that the environment they work in is a positive one that embraces change, whilst remaining customer focussed. The Human Resource team is responsible for the implementation of a complete Performance Management Framework and cutting edge training packages to provide long lasting and measurable benefits. In addition you will deliver professional recruitment practices and processes alongside focussed quality support to your colleagues. You will also facilitate the application of the Company's Human Resource Policies. As a specialist in your field, working as part of the larger Human Resource team you will provide solutions that will enable your people to meet the challenges created by an ever-changing retail environment. Reporting to the Head of Human Resources, you will get real satisfaction from seeing that these accountabilities are met and that they work towards achieving the Company's business goals.

 Training and development - Once the new employee has been selected for the job, they will probably need an induction training in order to help them settle into the new job. This training goes over the basics of the employee's job, as well as some background details e.g. the history of the business and number of employees and the range of different goods and services produced by the business. Training is not just for the new employees. Training courses are likely to be targeted at all employees in the business at different stages in their career e.g. management training courses, training on how to use new machinery and technology. There are many reasons for the huge amount of training used for the employees in a business: Training can improve employee productivity Training can create more efficient and flexible workforce. Training can increase job satisfaction and motivation of the employees. Training employees increases their chances of promotion. Performance Appraisal & Motivation - This is a method of measuring the efficiency of an employee, often using it as the basis for a promotion or a pay rise. After a has been working for the business for a while, every member of staff is likely to be appraised so that the company can measure their strengths, weaknesses, qualities and see what they contribute to the success of the business. There are a number of reasons why a business will use performance appraisals for its employees: To identify any problems which affect their performance. To provide information for performance-related pay. To provide some constructive criticism of the employee's performance at their job, it can be used to suggest some areas in which the employee needs to improve. To set objectives for the employee for the next year. Although appraisal is essential for the employees and the business, are many problems related with it; it is very time consuming and costly the business could use this money elsewhere in the business, personal feelings for the employees may get in the way of the process being done properly. If employees aren't trained properly it will lead to bad results. The appraisal process can be a waste of time if it isn't followed up with training and mentoring sessions. Disciplinary procedures - this is so to keep the staff in order and to keep efficiency at a maximum. Health and Safety issues - all companies have to follow The Health & Safety at Work Act, 1974 this covers working conditions and the provision of safety equipment and hygiene. Looking after the employees' welfare - a company would want to look after their employees so that they do not try and get jobs elsewhere if the employees are happy it is likely that their productivity may be higher and they will be more efficient.

 Dealing with the termination of contracts of employment - This is the last role of the HRM department it is to make the termination of the employees as smooth and efficient as possible. There are few ways in which employees can have their contracts ended, including: Redundancy - It will be necessary at certain times e.g. during a recession, for a business to 'downsize' its workforce. This process can be done by; voluntary redundancy, compulsory redundancy (where the most recently appointed employees are the first to be made redundant), or withholding by merit (where the least useful employees are made redundant). Retirement - At the end of their working-life, employees will wish to retire and stop working for the business. In return, they will often receive a lump-sum payout, as well as their state pension and their private pension. Transfers and Resignation - This happens when an employee leaves the business and transfers to another business maybe for a more senior job at another business. Dismissal - This is where an employee has broken their contract of employment, and is told that they are no longer needed by the business. Fair dismissal can be for, sexual harassment, racial harassment, bad timekeeping, sleeping on the job, and destruction of business property. However, if an employee feels that they have been dismissed for an unfair reason, for example; because of pregnancy, ethnic/cultural background, they can apply to have their case heard at an industrial tribunal.

5. M&S Training and Development - system advantage and disadvantage

Analysing training and development system within Marks & Spencer HRM department I found much more strengths than weaknesses. M&S needs to keep its staff well-trained and able to respond to the business needs. There is also a need for succession management. When individuals either retire or move from one job to another, managers have to plan their replacements so that experienced staff with the right skills and competencies is selected. It is important to develop a career path for people that meet their needs as well as the needs of the business.

a) Advantages:
To match its business strategy, Marks & Spencer develops existing staff from within the organisation. It also recruits managers at three different levels: Trainee managers with A-levels undertake 24 months of training. Graduates who join the organisation from university have 12 months of training.

Experienced managers who have retail experience undertake up to 3 months of training when they join Marks & Spencer. This helps them understand how Marks & Spencer operates. Marks & Spencer uses competency profiling to identify gaps in skills. Employees need these competencies and skills to be successful in each post. For example, technical skills are relevant to areas like team management, financial management and sales management. Business competencies include areas such as business leadership, decision-making, and communicating and influencing. Reviewing performance - At the end of every 6 months a performance review or appraisal takes place. Employees discuss their progress with their line managers. Employees are given ratings for the skills and competencies they have shown over the past year. These are compared with expected skills profiles for these areas. This feedback helps employees identify how they are performing in relation to the expected technical skills and business competencies and reveals any gaps. Personal development - The line managers and employee then discuss and agree on a plan for further development for the following year. All staff has a personal development plan in which they set objectives based on the feedback from their performance review. This helps them to construct a realistic and focused career path. All managers at Marks & Spencer are able to create a career planning profile. This enables them to focus on their next target role. They can then develop a career path to support this ambition. Staff identifies specific training needs based upon the technical skills and business competencies for that role. The profile also highlights what programmes of training Marks & Spencer needs to plan for. Two forms of training: On-the-job training - This takes place while employees are carrying out an activity in their place of work. Off-the-job training - Takes place away from the workplace. Coaching - This is a form of coaching by line managers. They review a person's performance and give feedback on their strengths and any development needs. Together, they agree how to improve and identify the opportunities to demonstrate these skills in their own jobs. The coaching gives the trainees confidence and is a successful element of the training programme.

b) Disadvantages:
Specialist buyers in the head office decide cloths ranges instead of getting the feedback from stores mangers. Top-down management system restricted store managers to respond to local customers needs. Lack of customer service training - Providing good customer service to look after customers. If staff has improved skills in, for example, communication, this can have a positive impact on customer service. M&S needs to update training programme to have innovative staff. A centralized training centre would be an ideal way to train store supervisors and section managers on sales & services similar to Channel & World Disney concept.

Training and development equips individuals with the skills they need to achieve their targeted role in the business.

Although training is a cost to a business, it is also an investment. It helps Marks & Spencer to link the people who have the right technical skills and business competencies with the roles they are best able to do. It ensures that, as a person moves from a post, he or she is succeeded by the best possible replacement. This is at the heart of succession management. By acquiring technical skills and business competencies, employees can plan their career path. This gives them responsibility for achieving their career ambitions. It also helps to create the future leaders of the organization.

6. Conclusions
In these business human resources is vital, if the business is to be successful. The equal opportunity is about giving every person the same right, no matter who you are. In order for Marks and Spencer to meet its objectives for increasing sales, it must meet the organisations aim successfully; this can be identified easily by means of using people in the most effective way according to their skills. M&S use Maslow's theory by helping staff set and reach their goals at work, they encourage their staff and praise them when they are doing well and staffs also receives rewards for good work. M&S use McGregors theory by having managers who have trust in the workers and help them improve and do their best and also by giving bonuses and training to motivate them. Marks and Spencer's also use Taylors Scientific Management theory by paying its employees in order to work and by having able managers control the staff.

7. References:
a) http://books.google.com - Armstrong, Michael (2006). A Handbook of Human Resource Management Practice (10th ed.). London: Kogan Page. b) http://businessballs.com/ - McGregor's X-Y Theory, Abraham Maslow's Hierarchy of Needs motivational model. c) http://business2000.ie/ labour 8th edition d) http://corporate.marksandspencer.com/mscareers e) http://corporate.marksandspencer.com/aboutus/student_info f) http://corporate.marksandspencer.com/mscareers/learning_development g) http://en.wikipedia.org/wiki/Dublin_Lock-out h) http://en.wikipedia.org/wiki/Human_resource_management i) Ruth Mortimer, Greg Brooks - Management for Dummies (2nd edition) j) http://scholar.google.com/scholar? hl=en&q=History+Of+Human+Resource+Management+ireland