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Introduction Of Human Resource Management
Human resource management (HRM) refers to the comprehensive and all-encompassing method of effectively handling an organization's most important asset, its employees. It entails organising and overseeing a variety of HR tasks, including as recruitment and selection, instruction and growth, performance oversight, pay and benefits administration, relations with staff, and HR planning (What Is Human Resource Management? 2023). The report will discuss about the UK-based John Lewis Partnership plc owns and runs convenience shops, supermarkets, and departmental stores. Offering a variety of products and services, it trades under the trademarks John Lewis and Waitrose. The company is renowned for its dedication to excellence and client fulfilment as well as its employee ownership structure.
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HRM seeks to recruit in, nurture, inspire, and retain talented people who add to the achievement of the business. In the context of an organisation, the many facets of human resource management (HRM) will be extensively studied in this paper. Using Storey's model as an outline, the report will discuss the key distinctions among HRM and personnel management. The essential contrasts between both approaches will be thoroughly examined in this section, along with their ramifications for organisations. This section will examine the connection between HRM tactics and practises and the strategic aims and objectives of the company. It will examine how HRM can cooperate with the company's long-term objectives in order to support the success of the organisation.
The company's "Model of Employment" will be critically addressed utilising Strategic Human Resource Management (SHRM) concepts. This section will look at the organisational levers available to build a long-term competitive edge through sound HRM practises and analyse the business's approach for managing its employees and examination of the organisational culture and how it affects the SHRM of the firm. This reportwill look at the business's culture and how it affects the activities and results of HRM. It will evaluate how the organisational culture impacts human resources management processes and worker conduct as well as how well it fits with the company's strategic goals.
The purpose of this reportis to provide readers a thorough grasp of HRM inside the business and its strategic repercussions. The study will be supported up by relevant company examples from literature and conceptual frameworks like Storey's model and SHRM frameworks. The report's findings and recommendations will offer beneficial recommendations to improve HRM procedures and enhancing the company as a whole.
Task 1
Critically discussing the main differences between HRM and Personnel Management, using Storey's model
The employees of a business can be managed using either the methods of human resource management (HRM) or personnel management (PM).
Storey's Model
To differentiate between HRM and PM, Storey (1992) put up an established framework. Beliefs and presumptions, tactical considerations, line management duties, and key levers are the model's four core dimensions (Boon, et. al. 2019). These factors offer an advantageous basis for analysing the differences among HRM and PM.
- Beliefs and Assumptions: Storey's model's first dimension draws attention to the disparate beliefs and presuppositions that HRM and PM hold. HRM employs a more purposeful and proactive approach, regarding people as important assets and collaborators in accomplishing organisational goals. In contrast to PM, which can be linked with a paternalistic style that focuses on maintaining compliance with laws and regulations.
- Strategic Aspects: The strategy aspect highlights how HRM and PM play conflicting roles in organisational strategy. With HR experts taking an active role in strategic decision-making processes, HRM is tightly correlated with the company's overall approach (Amrutha and Geetha, 2020). The PM, on the contrary, focuses on the daily administration of duties associated to employees and tends to perform a more bureaucratic and reactive function.
- Line Management Responsibilities: Storey's approach also emphasises the many HRM and PM duties that fall under the authority of line managers. Line managers have to play a bigger part in HRM, which covers employee growth, performance management, and recruiting. In contrast, PM places a greater emphasis on specialised human resources specialists to execute these tasks, with line managers having less of an impact.
- Key Levers: Storey's model's last aspect focuses on the crucial tools that HRM and PM use to influence employee behaviour. Through tools like training and development, assessment of performance and incentive systems, HRM focuses a great deal on encouraging commitment, motivation as well as engagement (Mousa and Othman, 2020). To manage employee behaviour, PM, on the other side, primarily employs control mechanisms including regulations, rules, and disciplinary measures.
The contrasts between HRM and PM have been the subject of various researches, the majority of which demonstrate Storey's concept. Ozkeser (2019) assessed that personnel management is more focused on efficiency in administration, and HRM emphasises the tactical blending of HR procedures and procedures with overall corporate goals. Parallel to this, Aboramadan, et. al. (2020) suggested that while PM emphasises upholding compliance and control, HRM concentrates on developing a workplace that is highly effective by matching HR practises with organisational objectives. Armstrong and Brown, (2019) found that HRM has been associated to higher levels of employee empowerment and participation, as well as an emphasis on skill development and well-being for workers. In contrast, PM frequently places greater emphasis on compliance, job security, and procedural standardisation.
Although Storey's model offers an invaluable basis for comprehending the distinctions between HRM and PM, it has come into criticism for being oversimplified and without evidence to back it up. Critics contend that in reality, the distinction between HRM and PM is less clear-cut since many organisations use hybrid approaches that include aspects of both (Hamouche, 2021). Furthermore, the environment whereby HRM and PM operate in might affect how far they differ from one another. For instance, due to legislative and cultural constraints, multinational businesses may follow HRM procedures at an international level while utilising PM methodologies in a few local subsidiaries (Alqudah, et. al. 2022). Future studies should go more deeply into the contextual elements that affect how HRM or PM practices are adopted in organisations. Researchers and practitioners alike would benefit immensely from examining how these techniques affect employee outcomes, organisational effectiveness, and relationships between staff and employers.
Task 2
Examining strategic priorities and their implications for HRM along with the critical analysis & evaluation of John Lewis strategies
John Lewis is a well-known British retailer known for its unique business strategy, employee ownership, and customer-oriented philosophy. The objective of this critical study is to take a look at John Lewis' strategic objectives and how they may affect HRM procedures.
Strategic Priorities:
- Customer Service and Satisfaction: John Lewis put a great deal of focus on giving customers excellent experiences and making sure they are satisfied. HRM must concentrate on finding and training individuals with exceptional customer service skills so as to meet this strategic aim (Gowan, et. al. 2022). For staff to create great client experiences, training programmes, ongoing education initiatives and effective management systems must be in place.
- Employee involvement and Empowerment: John Lewis lays a lot of focus on the involvement and empowerment of employees because it is an employee-owned business. The long-term objective of encouraging employee ownership and involvement requires HRM to create initiatives and programmes that support staff input, participation and making choices. This may be achieved via tools like employee discussions, open communication lines, and chances for employee participation in corporate-wide decision-making processes.
- Talent Attraction and Retention: Retaining John Lewis' competitive edge requires the attraction and retention of top talent (Somarathna, 2020). By creating efficient hiring strategies, employer branding programmes, and talent flow management, HRM plays an essential part in talent acquisition. To guarantee the retention of talent, HRM must also put a special emphasis on developing complete employee propositions of value that feature attractive compensation plans, professional growth possibilities, a healthy balance between work and life, and an encouraging workplace.
- Digital Change and Innovation: John Lewis has given innovation and digital transformation a strategic priority in light of changing market conditions. This calls for HRM's participation in upskilling staff so they can adapt to digital technology, building an innovative culture, and promoting continuous learning. To help staff come up with and put into action creative ideas, HRM should build innovation platforms and processes, execute digital literacy training programmes, and foster cross-functional cooperation options.
Critical Analysis and Evaluation
The strategic goals of John Lewis are in line with modern HRM techniques that prioritise employee involvement, customer service, and innovation. The business recognises the importance of coordinating HRM practises to support outstanding service delivery by placing an extreme value on customer experience and satisfaction (Aguinis, et. al. 2022). The challenge, however, is in ensuring that customer-centric practises are carried out consistently at all organisational levels.
The success of John Lewis is greatly impacted by employee empowerment and engagement, but it is crucial to assess the systems in place that promote employee participation and decision-making. To promote true employee engagement and prevent superficiality, HRM should regularly evaluate the efficiency of channels of communication, employee forums, and empowering programmes.
It is important to find and keep talent, particularly in a tight labour market. Although John Lewis has become known for its alluring worker ownership model, HRM must assess its success in luring and keeping people given the importance of additional factors like pay, job advancement possibilities, and work-life balance (Paulet, et. al. 2021). Innovation and digital transformation are crucial for maintaining competitiveness. To make sure that staff members possess the digital mindset and skills essential to foster creativity and successfully adapt to technological changes, HRM should critically assess the outcomes of its training programmes and initiatives.
The long-term objectives of John Lewis emphasise the significance of HRM in coordinating its procedures to enable digital transformation, staff engagement, and customer experience. Despite the reality that the organisation has put in place a number of campaigns, rigorous analysis and assessment are still required to guarantee the effectiveness and ongoing improvement of HRM methods.
Task 3
Critically discussing the “Model of Employment” and exploring the organizational levers available to manage human resources
An effective workforce that offers organisations a long-term competitive edge in any market is generated through strategic human resource management.
Best Fit Model
To improve performance and gain a competitive edge, HR practices should be in line with the overall strategy of an organisation, according to the "Best Fit" model. The "Model of Employment" of John Lewis is built on the business's distinctive employee ownership structure and customer-centric philosophy. The "Partnership" approach, as John Lewis calls it, places a strong emphasis on staff engagement, employee empowerment, and a dedication to providing superior customer service.
The "Partnership" approach supports the company's fundamental values and strategic aims by emphasizing strategic HR practices (Ichsan, et. al. 2020). This corresponds to the "Best Fit" perspective. For instance, John Lewis' collaborative ownership structure, in which employees consider themselves as partners and have a share in the company's success, is in line with its focus on employee involvement and engagement.
Although the "Best Fit" approach connects HR practices with the company's goal, it may encounter challenges in a corporate environment that is undergoing rapid transformation. The stability of the company plan and outside variables are crucial to the model's performance (Khanra, et. al. 2022). Due to the disruption in the digital revolution and the changing tastes of customers in the traditional retail environment, John Lewis must constantly adapt and innovate.
The resource-based view (RBV)
This theory emphasises that a company's resources, especially its human resources, maybe a source of competitive advantage over time. The employee ownership structure that is reserved to John Lewis, the company's engaged staff, and its customer-focused culture may all be viewed as important and uncommon resources that help the business maintain its competitive edge (Gerhart and Feng, 2021). John Lewis may put the organisational into practice to fully utilise the potential of its human resources for long-term competitive advantage:
Continuous training and development:
Employees' abilities and expertise may be improved by investment in continuous learning and development, making them better prepared to respond to shifting market needs. To enable staff to make a contribution to the success of the business in a competitive market, John Lewis may offer training programmes that emphasise the use of technology, customer experience enhancement, and innovation.
Fostering Employee Engagement:
A sustained competitive advantage is highly influenced from the extent to which work engagement takes place among workers. To make sure that employees feel appreciated and included in the process of making choices, John Lewis may use a variety of methods. This in turn includes as employee surveys, input channels, and recognition programmes. Engaged staff members are more inclined to deliver outstanding customer service, increasing client loyalty and enhancing brand reputation.
Talent Attraction and Retention:
Securing top talent while maintaining them on board is essential for long-term success. To attract individuals who share the culture and principles of the business, John Lewis can deploy cutting-edge talent acquisition methods, such as employee referral schemes and employer branding campaigns (Collins, 2021). A great work environment, development opportunities, and competitive salary packages may all aid in keeping key personnel.
Utilising Technology for HRM:
By using data analytics and technology related to HRM processes firms can improve efficiency and effectiveness pertaining to decision-making aspects. John Lewis, for instance, may utilise analytics to pinpoint areas where employee productivity, customer happiness, and overall business operations need to be improved. Technology may also streamline HR procedures, allowing HR specialists to focus on key projects.
In line with John Lewis' emphasis on its staff's partnership approach, the RBV model recognises the strategic significance of human resources. On the contrary, maintaining a competitive edge primarily based on human resources may be difficult over the long run (Gueler and Schneider, 2021). Although the employee ownership structure and customer-focused culture of John Lewis are great assets, they must be matched by other elements like creativity, operational effectiveness, and market adaption to maintain a competitive edge.
Task 4
Critically exploring organisational culture and its impact on the company's SHRM
An organization's organisational culture has a significant impact on the strategic management of human resources (SHRM) practises used by the business. This critical study intends to examine the organisational culture of John Lewis and how it affects SHRM, recognising the culture's vital elements and assessing how it affects HR practices inside the business.
John Lewis' Organizational Culture
John Lewis is renowned for its outstanding and unusual organisational culture, which is firmly based on its commitment to employee cooperation and collaborative ownership model. Values like trust, inclusion, integrity, and a keen focus on pleasing clients define the culture of a company. It encourages a sense of community, a sense of purpose, and a dedication to offering first-rate service.
Impact of Organizational Culture on SHRM:
- Employee Engagement and Partnership: John Lewis' collaborative ownership structure and employee collaboration culture have a big influence on the management of human resources. Employee engagement, autonomy, and an awareness of ownership are all encouraged by the culture. Employee involvement and dedication are higher when HR procedures like employee decision-making, profit-sharing plans and open communication methods are in line with the collaborative culture.
- Customer-Centricity: Customer satisfaction is highly valued in John Lewis' organisational culture. A spirit of client centricity and a dedication to offering top-notch service are instilled by the culture. This has an effect on SHRM because it has an impact on HR practises that prioritise hiring, educating, and cultivating staff with exceptional customer service abilities (Gueler and Schneider, 2021). The customer-centric culture is supported by HR initiatives including performance management systems, recognition initiatives, and customer service training programmes that promote service excellence.
- Values-Driven Administration: John Lewis' environment encourages values-driven leadership, in which executives serve as examples for the company's collaborative values and ethical standards. Because leaders are so important to determine HR policies and establishing the tone for staff conduct, this directly affects SHRM. Values-driven leadership has a bearing on HR efforts related to moral conduct, honesty, and the congruence of hiring processes with organisational values.
- Learning and growth: John Lewis places an extreme value on ongoing learning and growth. Worker skill and knowledge development is encouraged, establishing an atmosphere of personal development. Through the use of human resources procedures including training and development programmes, chances for career advancement, and an encouraging atmosphere for learning, this culture has an impact on SHRM.
Critical Analysis and Evaluation
High levels of staff engagement, a customer-centric strategy, driven by values leadership, and an emphasis on learning and development are just a few of the positive impacts of John Lewis' organisational culture on SHRM (Ployhart, 2021). The business's strong employer brand and ability to recruit and maintain bright people who share its beliefs are both affected by its cooperative business model and values-driven culture.
However it is crucial to consider any potential difficulties and limitations. While encouraging employee participation and commitment, the cooperative culture may have trouble being persistent and adaptable in a company environment that undergoes fast change. When compared to organisations with a more structured hierarchy, the emphasis on agreement and diversity may lead to longer processes for making decisions.
Additionally, the effect of organisational culture on SHRM may change across various divisions or organisational levels. The degree to which the culture has been ingrained and effectively applied throughout the organisation must be assessed.
Task 5
Use of corporate examples and literature
A widely recognised business example that highlights the impact of its own organisational culture on HRM is the John Lewis Partnership. The company's culture focuses on employee collaboration and shared ideals as it uses a cooperative ownership model (John Lewis Partnership, 2023). This culture appears in a number of HRM practices, including profit-sharing, employee participation in making choices, and open lines of communication. The core of John Lewis' HRM strategy is empowering staff members and involvement, which is consistent with the business's cooperative culture.
Due to a difficult year, John Lewis, a department-store company that also owns Waitrose convenience stores, is announcing the cancellation of worker incentives for a second time. The business recorded a £234 million pre-tax deficit. Despite getting more visitors, the shops saw lesser expenditure. According to Dame Sharon White, the Partnership chair, the economy has forced the company to explore employment losses and a likely decrease in the number of staff members, who are known as "partners" within the organisation (John Lewis axes staff bonus and plan to cut jobs, 2023). This is a break from the organization's long-standing practice of awarding incentives since the program's start in 1953.
In reaction to a more difficult economic environment, John Lewis and Waitrose have declared plans to reduce 1,000 positions. By January 2026, the company will have raised its savings goal from £300 million to £900 million. The cost reductions will be attained through an array of methods, including rising manufacturing and passing off assets like the Berkshire Golf Club. In addition, John Lewis has a long-term objective of obtaining 40% of its revenue by 2030 via sources other than physical stores.
Waitrose had a fall in spending by consumers during the year that ended in January despite a rise in the number of customers. Customers chose to buy cheaper goods, which resulted in a 15% fall in the average basket size. Waitrose's annual sales fell by 3% as a result, accomplishing £7.31 billion. Customers switched some of their expenditures to bargain merchants, somewhat reversing the considerable surge in purchasing food online that occurred during the pandemic years. The cost of living crisis has negatively impacted John Lewis, making worse-than-expected results. Customer has increased their overall buying, especially at Waitrose, where amounts diminished by 10% for the year. The retailer is also battling rising costs, including an increase of almost £180 million in costs such as energy bills as well as wages. To address these difficulties, the business has already accomplished £300 million in savings.
Task 6
Recommendation
Suggestions for John Lewis in relation to HRM:
- Increase Employee Engagement: Create an environment where employees are valued, collaborate, and offer feedback. Implement regular worker surveys to get input and efficiently resolve issues. Promote open lines of communication and foster pride and feelings of belonging among staff.
- Invest in learning and growth: Create thorough plans for instruction and growth to improve staff competencies and abilities. Offer opportunities for continuous growth and learning, such as programmes for leadership. John Lewis may create a highly educated and adaptable staff by making investments in the growth of their personnel.
- Performance Management and Recognition: Implement a strong performance management system that matches individual goals with organisational objectives. Establish precise performance standards and offer frequent feedback. To inspire and keep top talent,recognizeand reward strong achievers.
- Support Flexible Work Arrangements: Wherever possible, stress the value of a healthy work-life balance and provide flexible work options. Job sharing, flexible scheduling, and remote work alternatives are some examples of this. Work-life integration and employee well-being support can increase productivity and job satisfaction.
- Planning for Succession and Talent Management: Establish an exhaustive structure for succession planning that will help the organisation identify and develop its future leaders. Put in place talent management methods that are geared on luring, keeping, and developing outstanding people. This offers possibilities for career development and targeted recruitment campaigns.
- Diversity and Inclusion: Fostering a varied and inclusive workplace that acknowledges and respects variations among people and inclusion. Implement programmes and policies which promote variety at all organisational levels. To foster an inclusive culture, promote diverse hiring, provide equitable chances for growth, and offer diversity training.
- Employee Well-Being Programmes: Give employee well-being the highest priority by providing extensive resources and well-being programs. This can involve programmes like work-life balance initiatives, mental health support services, and wellness challenges. Promoting employee well-being may increase efficiency, retention, and work satisfaction.
- Employee Engagement and Change Management: Create efficient channels of communication that keep staff members informed and involved throughout times of change. To ensure openness, clearly convey the organization's goals, strategies, and changes. Encourage a positive attitude towards organisational changes by offering staff with the tools and assistance they need to adapt to change.
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Conclusion
The key distinctions among HRM and PM are clarified by Storey's approach. Strategic direction, managerial participation, and an emphasis on the employee constitute HRM. While PM tended to be more managerial and control-oriented, relying upon specialised HR functions, HRM uses a strategic and proactive approach, incorporating direct reports and emphasising employee development and commitment. In addition, it is crucial to acknowledge how HRM and PM practices are growing and the possibility for hybrid strategies in actual organizational situations.
The strategic goals of John Lewis emphasise the significance of HRM in integrating its procedures to enable digital change, employee engagement, and customer experience. Considering the fact that the organisation has put in place a number of initiatives, rigorous analysis and assessment remain necessary to guarantee the efficacy and continual enhancement of HRM methods. John Lewis may enhance its HRM processes to promote organisational performance while maintaining its place as a top retailer by addressing any gaps and challenges. The requirement for ongoing innovation, market changes, and external influences necessitate a comprehensive strategy that goes beyond traditional HRM procedures. In order to strengthen its competitive edge and achieve long-term success in a constantly shifting business environment, John Lewis combines strategic HRM practises with an emphasis on excellence in operations, innovation, and market adaption.
John Lewis can preserve its great brand name and create a robust and prosperous future by putting a priority on staff involvement and sustainability while concentrating on customer service, online visibility, cost optimisation, and strategic alliances. John Lewis may create a productive work environment that recruits, develops, and keeps outstanding people by putting these HRM ideas into practice. A driven and high-performing staff may be attained through boosting staff engagement, making investments in learning and growth, supporting work-life balance, and promoting diversity and inclusion. Additionally, putting a focus on efficient interaction, change management, and employee well-being may promote a company's adaptability and resilience. In the end, these HRM determines may help John Lewis thrive overall and continue to exist.
References
Books and Journals
- Aboramadan, M., Albashiti, B., Alharazin, H. and Dahleez, K.A., 2020. Human resources management practices and organizational commitment in higher education: The mediating role of work engagement.International Journal of Educational Management,34(1), pp.154-174.
- Aguinis, H., Jensen, S.H. and Kraus, S., 2022. Policy implications of organizational behavior and human resource management research.Academy of Management Perspectives,36(3), pp.857-878.
- Alqudah, I.H., Carballo-Penela, A. and Ruzo-Sanmartín, E., 2022. High-performance human resource management practices and readiness for change: An integrative model including affective commitment, employees' performance, and the moderating role of hierarchy culture.European Research on Management and Business Economics,28(1), p.100177.
- Amrutha, V.N. and Geetha, S.N., 2020. A systematic review on green human resource management: Implications for social sustainability.Journal of Cleaner Production,247, p.119131.
- Armstrong, M. and Brown, D., 2019. Strategic Human Resource Management: back to the future.Institute for Employment Studies reports,1(1), pp.1-36.
- Boon, C., Den Hartog, D.N. and Lepak, D.P., 2019. A systematic review of human resource management systems and their measurement.Journal of management,45(6), pp.2498-2537.
- Collins, C.J., 2021. Expanding the resource based view model of strategic human resource management.The International Journal of Human Resource Management,32(2), pp.331-358.
- Gerhart, B. and Feng, J., 2021. The resource-based view of the firm, human resources, and human capital: Progress and prospects.Journal of Management,47(7), pp.1796-1819.
- Gowan, M., DeMarr, B.J. and David, J., 2022.Human resource management: Managing employees for competitive advantage. SAGE Publications.
- Gueler, M.S. and Schneider, S., 2021. The resource-based view in business ecosystems: A perspective on the determinants of a valuable resource and capability.Journal of Business Research,133, pp.158-169.
- Hamouche, S., 2021. Human resource management and the COVID-19 crisis: Implications, challenges, opportunities, and future organizational directions.Journal of Management & Organization, pp.1-16.
- Ichsan, R.N., Santosa, S., Shara, Y. and Liriwati, F.Y., 2020. Investigation of strategic human resource management practices in business after covid-19 disruption.PalArch's Journal of Archaeology of Egypt/Egyptology,17(7), pp.13098-13110.
- Khanra, S., Kaur, P., Joseph, R.P., Malik, A. and Dhir, A., 2022. A resource?based view of green innovation as a strategic firm resource: Present status and future directions.Business Strategy and the Environment,31(4), pp.1395-1413.
- Mousa, S.K. and Othman, M., 2020. The impact of green human resource management practices on sustainable performance in healthcare organisations: A conceptual framework.Journal of Cleaner Production,243, p.118595.
- Ozkeser, B., 2019. Impact of training on employee motivation in human resources management.Procedia Computer Science,158, pp.802-810.
- Paulet, R., Holland, P. and Morgan, D., 2021. A meta?review of 10 years of green human resource management: is Green HRM headed towards a roadblock or a revitalisation?.Asia Pacific Journal of Human Resources,59(2), pp.159-183.
- Ployhart, R.E., 2021. Resources for what? Understanding performance in the resource-based view and strategic human capital resource literatures.Journal of Management,47(7), pp.1771-1786.
- Somarathna, K.U.S., 2020. An agent-based approach for modeling and simulation of human resource management as a complex system: Management strategy evaluation.Simulation Modelling Practice and Theory,104, p.102118.
Online
- John Lewis axes staff bonus and plans to cut jobs. 2023. Online. Available through: < https://www.bbc.com/news/business-64945767>.
- What Is Human Resource Management? 2023. Online. Available through: < https://www.coursera.org/articles/human-resource-management>.
- John Lewis Partnership. 2023. Online. Available through: < https://www.johnlewispartnership.co.uk/about.html>.