Human resources is used to describe both the people who work for a company or organization and the department responsible for managing resources related to employees.
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 for H&M.
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 for products
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 sources recruitment.
Internal 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 less expensive.
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 employees.
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.
Learning 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 oriented.
Training is 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.
Workplace 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.
Out-of-work 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 perspective.
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 disadvantages.
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 employees.
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 family.
And in this case 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.
Making a 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.