Student name: Mihaela Andreea Ursache
Qualification : BTEC level4 HNC diploma in business
resources is used to describe both the people who work for a company or
organization and the department responsible for managing resources related to
H&M’s corporate strategy is to expand on a continuing
basis, and as a consequence, employee strength also increases continuously. For
2009, H’s Annual report (AR1 2008), forecasts the addition of 6000 to
7000 new jobs. Their staff is spread across approximately 33 countries and come
from different cultural backgrounds (Datamonitor, 2009). Their strategy is to
recruit locally whenever a new store opens (AR1 2008).
The main area for which H&M may have clearly
articulated policies are listed below. The policy areas are based on the
categorization by Armstrong.
H&M’s website indicates that their objective is to be a
good employer, including in those countries whose laws and regulations fall
short of their own requirements. Human resources may be defined as the total
knowledge, skills, creative abilities, talents and aptitudes of an
organization’s workforce, as well as the values, attitudes, approaches and
beliefs of the individuals involved in the affairs of the organization.
The scope of HRM is:
Personnel aspect-This is concerned with recruitment, selection, placement, transfer,
promotion, training and development, layoff and retrenchment, remuneration,
incentives, productivity etc.
Welfare aspect-It deals with working conditions and amenities
, rest and lunch, health and safety, recreation facilities, etc.
Human Resources (HR) is a strategic partner for H & M’s
business. It sets standards for recruitment, implementation of training
programs and the support, development and progress of the whole organization.
Everything to ensure that it has the right people with the right skills in the
right positions – and at the right time. The company’s goal is to be the right
partner for their employees and to act with integrity and respect for everyone
who contributes to the company’s success . H & M must be a place where
everybody feels appreciated and able to progress.
In other words, the Human Resources Department continues to
strengthen the company’s success by improving it and encouraging employees to
reach their full potential.
Labor Force Planning is an integral part of people management
and provides the context for most others activities related to acquisition,
development and the deployment of human resources.
Labor Force Planning is the process of analyzing H &
M’s future needs in terms of number, skills and locations. It allows the
organization to plan how these needs can be met through recruitment and
training. It’s vital that a company like H & M plan ahead. As the company
is growing, H & M has to recruit regularly.
H&M PESTEL Analysis:
Political : As a global brand operating a number of stores
across the globe, the monitoring of political risk is increasingly important
Economic : Despite the negative effects that Brexit has brought
for currencies across, Europe, H&M report that its June 2017 sales rose by
7 per cent on a local currency basis in comparison to June 2016, and grew 10%
when converted into Swedish currency, the Krona.
Socio-Cultural : In the present day, increasing levels of
transparency are demanded off businesses, as consumers want to investigate
where they are giving their money to.
Technological : H&M continue to develop their app for
mobile devices, recently unveiling the use of the H&M club function, which
allows consumers to collect reward points from their online and instore
purchases using the app on their mobile device.
Environmental : H&M aim to be 100 per cent circular and
renewable by 2030, meaning that all products will be generated from old
products of the firm, and that only recycled and durable materials will be used
Legal : In the past two years, H&M has been involved in
a number of legal disputes regarding infringement by the clothing retailer.
Perhaps the most prominent occurred in 2015, when the retail giant lost a
patent dispute worth multi-millions of pounds against a UK manufacture for
infringing a coveted technology in Bras (Solicitors Journal, 2015).
The collaboration within the Global Framework Agreement has
led to several positive results. National monitoring committees – consisting of
representatives from Industriall’s affiliated trade unions and H – have
been set up and trained in Bangladesh, Cambodia, Indonesia, Myanmar and Turkey.
In the H & M company, some changes can be made at a
time such as: Some employees leave the organization (dismissal, resignation),
others are promoted, detached or transferred. All these changes create
vacancies and a need for competent people to fill these posts.
If the company’s business expands (launching a new product,
purchasing a new account or customer, opening a new store, etc.), an additional
number of employees will be needed.
Recruitment is the process of searching and attracting
people into the organization suitable for occupying vacant positions. This
process implies knowledge of the number of vacancies, nature and their
requirements, and the necessary skills to carry out the tasks.
The selection involves selecting the people who will
receive the job offer, from the recruited candidates. Its effectiveness depends
on the efficiency of the recruitment activity, which has to provide an average
number of viable options. The recruited group (shortlist) must not be too large
because can agglomerate the selection process.
The company must identify the recruiting source most suited
to its segment of activity, size, location, budget or nature of vacancies.
We have the choice between internal sources and external
resources involve the allocation of existing employees by transfer, promotion
or relegation. But this requires knowledge the potential of their employees and
their strengths / weaknesses.
When a vacancy occurs in the company and internal
recruitment is done, certain rules must be observed: Employees must be informed
of the post, the promotion criteria must be presented to employees so that they
have time to prepare.
Strong points of internal recruitment: H & M will no
longer have to offer training to the chosen candidate, recruitment is much
faster and more efficient, the company motivates employees, recruitment will be
Weaknesses: Prevent infusion and devastation of promoting
new ideas; the chosen candidate may reach a post whose requirements are
superior to his or her level of training, triggering numerous conflicts between
When the company loses employees that can not be replaced,
recruit will be external recruiment.
Although it is more difficult than the internal one, it offers more options for
choosing the right candidate. H & M often selects the candidate who is most
professionally qualified for the post. In the next stage, the recruiter must
analyze the most important application files as his resume. This is the
candidate’s business card.
The strong internal recruitment points: identifying a
larger number of candidates, new source of ideas and beneficial knowledge of
the company, encourages a new way of thinking within the company.
Weaknesses: Identifying and evaluating candidates is made
more difficult just by reference or interviews, the risk of hiring candidates
who will not cope with job pressure, costs are much higher, and the time spent.
The recruitment and selection process can affect the
company’s image if it does not follow effective strategies and techniques. This
has been happening since the recruitment announcement, which, according to how
it is promoted, is seen by many people. These impressions can influence potential
candidates (or even clients), losing valuable people.
and development is a set of HRs that aims to improve group
performance and individuality by deepening their knowledge and abilities.
Learning and development is part of the company as a managerial strategy with
the role of focusing on the objectives and performance of the group.
Learning and development is part of the company as a
managerial strategy with the role of emphasizing the objectives and performance
of the group or individual. At the practical level, those responsible for
learning and developing need to identify skills gaps between groups and teams,
and then find appropriate training to eliminate them.
H & M is interested in the good of its employees.
Company employees around the world benefit from many great benefits. All H
& M employees benefit from shopping discounts at H & M as well as from
all other brands within the H & M group. HRM offers internal setting at any
level. Employees are given the opportunity to advance as promotion,
international opportunities. The Human Resources Department offers 3 different training
programs in order to find future leaders for different parts of the company.
The programs are addressed to graduates or young professionals who want to make
a career at H & M.
The main differences between training and development are
as follows: training is a learning process for new employees where they learn
about the key competencies needed for the job, development is the process of
training existing employees for their development. Formation is a short-term
process from 3 to 6 months, while development is a continuous process. The
training focuses on the development of skills and knowledge for the current
workplace, unlike development that focuses on building knowledge and skills to
overcome future challenges. limited application, development is career
an educational activity designed to improve employee performance in the
position it currently occupies. The training aims at training, change,
development at the level of knowledge, abilities and attitudes.
There are two main types of training for small businesses:
workplace techniques and out-of-work techniques.
training is provided to employees while they do their normal work
tasks. In this way, do not waste time while learning. Once you have a plan of
what should be taught, you must provide the details of your employees. You also
need to set a timetable for periodic evaluations to inform employees of their
progress. Workplace techniques involve orientation sessions, training training,
learning training, internship and assistantship, job change and coaching.
techniques involve lectures, special studies, films, televised
conferences or discussions, case studies, roles, simulations, scheduled
training and laboratory training. Most of these techniques can be used by small
businesses, although some may be expensive.
In terms of market economy profit represents the basic
criterion that characterizes the results of the company’s economic and
financial activity.The level and dynamics of profit determines rhythms of
economic development and condition the growth of the company’s own capital in
As a human resource manager who manages a team, we need to
know where to rely on intrinsically motivated staff, in which the extrinsic
reason, keeping a high return on activity. In recruitment, we often seek
motivated, in-person staff, without taking into account the specifics of the
job, the field of activity, which often makes us lose valuable candidates.
(praise, awards, rewards, social benefits, etc.). On this basis, H & M is
also based, and ultimately the employee works to maintain and needs these fees,
plus they are also a good motivation for staff.
So, intrinsic motivation must be received in areas where
creativity predominates (people who have a great deal of dedication in doing
the work, relying on the pleasure of doing things). Here are many people who
work voluntarily for H & M, they know that if they do a good job they can
take a job when they are well-trained professionally.
A motivation for their workers is to reward their
contribution to progress company – initiative, effort and success – but, above
all, to develop for themselves the usefulness ofthe subjective dimension of
Some of the following behavioral features are reflected in
motivated employees’ actions: Energy and initiative, engaged and dedicated to
public service, wanting to think for themselves, appreciate recognition and
challenges, look for opportunities to improve their capabilities, have a
proactive attitude positive in solving problems;
I believe that they can really contribute to change, set
their own goals and challenges.
A good strategy would be to reduce staff and increase
production, which would also lead to better profits. As a result, the staff
program should be prolonged, it should work harder than before and should seek
new steps to attract buyers. With this strategy we have advantages and
Advantages: Indeed, it would be a better profit, employees
would be more satisfied with the new wages with the prolongation of the program
Disadvantages: Some employees might be disturbed by the new program, they would
be more tired and harder, they also have to wait for resignations from revolted
Another strategy would be looking for new buyers, that
would mean that human resources bring new products to stores to conquer
customers. Like a children’s clothing store for children aged 0-5. With quality
materials over 75% cotton, those who already buy from H & M would be
conquered by the new store and would certainly recommend it to friends or
And in this case aswell we have advantages and
disadvantages. Advantages: bringing profit and productivity to H & M, new
customers who would shop at stores. Disadvantages: a big disadvantage is
competition, there are already many companies with such shops on the market.
decision, choosing an alternative from a lot of variants available at a given
moment, is an essential component of H & M. Decisions are the basis of
every success of the company. Management is an important socio-professional
category in the life of a modern society whose economic progress is not
indifferent. The manager with the functions that he / she fulfills has one of
the keys to the success of his team.
A company’s human resources department typically manages
employee complaints. These complaints often come in the form of a problem with
colleagues and managers. The department plays an important role in resolving
differences and helping employees feel as comfortable at work as possible, but
also in settling conflicts between employees.
H & M employees are young and dynamic with an unlimited
ambition, this ambition is supported by their manager who encourages them
throughout their career at H & M. But as in any team, there are sometimes
conflicts between staff, here is always the manager of the team that solves the
conflicts. The company’s profit depends on the staff mood. A team that always
quarrels or is stressed no longer focuses on the company’s goal but on the
issues that they have between them, here comes the manager who, if he can not
resolve the conflict, resorts to conciliators or moves to other departments.
When the team has a good mood, it is working with more dedication to the
company and this is also observed in the relationship with the manager. From
this we come to the conclusion that indeed the manager’s decisions are influenced
by the team and his mood, the manager is the head of his team, he depends on
many tasks and responsibilities.
Communication to motivate employees should be done taking
into account their needs, the factors that make them work better, and those who
are more ambitious to achieve better results. Employee involvement in
organizational and management activities can improve the environment work, you
can broaden the departmental tasks, thus improving employee participation in
the work process.
Maintaining good employee relations helps reduce workplace
conflict, raise staff morale and increase overall productivity.
In order to maintain good relations between employees, the
manager plays a very important role. The manager has to inform his team about
the important activities of H & M and its success, the manager must be
close to his employees so they will have a place to learn what they do not know
or could improve their skills when employees fall into a daily routine the
manager has to motivate them. Happy employees are more confident and
productive. They take on increased responsibilities more efficiently.
The purpose of labor law is to establish working conditions
that allow people to work in a free atmosphere of protection and differences.
They set up working conditions that prevent harassment. Companies are required
to maintain sanitary working conditions and ensure their employees.
The field of work known as labor law covers the rights,
obligations and responsibilities of the employer-employee relationship – from
wages and job security to discrimination and abusive termination. Employees in
the field of work specialize in representing either employers or employees, but
rarely both. Employees can help trade unions or work directly with employees to
file lawsuits against employers or negotiate settlements for a wide range of
complaints. The EU stimulates youth employment through measures such as
supporting access for young people under the age of 25 to education,
internships and employment.
Ethics and social responsibility are close and intertwined.
Corporate social responsibility is the concern of managers to take action to
protect and improve both the well-being of society and the interests of the
organization. This concern is demonstrated by managers who consider both the
long-term interest of their firms and the company’s relationships with the
environment (the company) in which they operate.
In other words, in addition to the responsibility of the
managers of the company to generate profit, they have a social responsibility
towards the environment in which they operate, towards the employees, towards
the consumers, etc., that is, towards everything that is constituted
stakeholders (the environment, customers and consumers, shareholders,
employees, creditors, governmental and non-governmental organizations,
suppliers, the general public) of the firm.
Corporate social responsibility is perceived as a new form
of cooperation between government, business and civil society, and the
promotion of social goals by companies are economic implications (for
businesses that increase their power within community), political (for
governments that step up their control over companies, though not directly and
socially (for the various stakeholder groups that do not have just to gain from
the private regulation of companies compared to the public a governments).
Defined over time in different ways, context or domain specific
practical applicability, ethics was focused on the principles and standards
that would must govern the social relations between individuals and
organizations and always arise the interest of those interested in living in a
better environment, attentive to the needs and aspirations those around, meant
to appreciate true human values ??and promote models examples of behavior.
The issue of the importance of trade unions in the labor
market, but also of an overall economy is controversial, marked by the dispute
between the trade unionists and their opponents.
One of the greatest illusions is the belief in the
attributions of the unions to the increase of real wages, long-term and for the
entire active population, ignoring the fact that the value of the remuneration
of materials and employees is the direct expression of labor productivity. The
main function of the trade union organizations is to improve the job
opportunities and fight for all union members to be paid at the real market
value, not to determine the increase in wages.
Trade unions have a growing role in the private sector, but
they still have control over large parts of the public sector workforce.
Trade unions are often considered impediments substantial
steps towards economic growth and market balance, as the methods used by them
to claim employees’ requirements are delaying production.
A collective agreement, collective labour agreement (CLA)
or collective bargaining agreement (CBA) is a special type of commercial
agreement, usually as one negotiated “collectively” between
management (on behalf of the company) and trade unions (on behalf of
employees). The collective agreement regulates the terms and conditions of
employees in their workplace, their duties and the duties of the employer.
It is usually the result of a process of collective
bargaining between an employer (or a number of employers) and a trade union
Employers and employees should always seek to resolve
disciplinary and grievance issues in the workplace. Where this is not possible
employers and employees should consider using an independent third party to
help resolve the problem. The third party need not come from outside the
organisation but could be an internal mediator, so long as they are not
involved in the disciplinary or grievance issue. In some cases, an external
mediator might be appropriate.
Many potential disciplinary or grievance issues can be
resolved informally. A quiet word is often all that is required to resolve an
issue. However, where an issue cannot be resolved informally then it may be
pursued formally. This Code sets out the basic requirements of fairness that
will be applicable in most cases; it is intended to provide the standard of
reasonable behaviour in most instances.