Human Resource Management Strategy of Arcadia Group

University: The University of Newcastle

  • Unit No: 25
  • Level: Post Graduate/University
  • Pages 16 / Words 4000
  • Paper Type: Assignment
  • Course Code: BMAN71471
  • Downloads: 0

INTRODUCTION

International Human Resource Strategy aims on workforce planning and is long term. Arcadia group has a forward workforce development like reviewing applications, signing up employees for insurance benefits and maintains a census. This type of development provides development to employee qualification with the needs of firm's workforce. For the present report Arcadia group has been taken, which is also facing many challenges like integrating customers online, misconceptions with staff, build a committed and competent employees, integration of diverse workforce (Huang and Gamble, 2015). In the present report, a plan has been developed to assimilate temporary workers during seasonal periods by Human Resource Management of Arcadia Group.Furthermore, report will discuss goals, aims, theories, models of International Human Strategy of Arcadia Group. It wants to establish its branch in Switzerland for which it wants to recruit some staff.

LO 1 PESTLE analysis of Arcadia group and HR duties and responsibilities

Pestle analysis is the culmination of different six components which ca be used to analyse various factors of business environment. Political, Economic, Technological, Social, Environmental and Legal factors of Switzerland would definitely affect Arcadia to establish systematically.

Political Factors: Brexit has influenced businesses in different areas that involves workforce, manufacturing, supply chain which is due to the present occurrence of changes in EU legislation that has affected Arcadia. Presently, administrative burdens have been minimized and trade have been encouraged in Europe. Among the Brexit vote price of sterling has already being reduced. There is 20% wipe off the value of sterling in the field of supply chain in Europe which costs higher and affects goals and objectives of Arcadia Group (Den Hartog and Boon, 2017). This affects Arcadia because it outsources all types of clothing production to 620 suppliers in 1100 factories that means there is high rate of production in other countries.Government has equal rights distributed in the government which is good for Arcadia Group.( Pestle Analysis of Arcadia Group, 2018, [Online] Available Through https//analysingarcadia.wordpress.com/)

Economic Factors: Arcadia group is very successful because headline cash generation from last year was £328.1 m. Operating profit of total group before exceptional items and goodwill in last year was £251.6 m. Switzerland is has very modern and stable economy. Its GDP is $371.2 billion which is almost 1.05 % of the world. This is due to increase in global sales which is up to 23.05 as compared to past years.(Pestle Analysis of Arcadia Group, 2018, [Online] Available Through https://analysingarcadia.wordpress.com/)

Social Factors: Arcadia is famous for non-availability of good sizes and having limited stock of female outwear (Moslashller and van Weel-Baumgarten, 2017). As fas as fashion footprint is concerned, it should reduce environmental impacts. Emission of CO2 is minimized and a project is completed in London head office. People living in Switzerland are qualified and highly educated which is a positive sign for this company.

Technological Factors: Arcadia has increased its sale up to 67% and delivered more personalized products on its websites like Topman, Topshop, Dorothy Perkins which provides online experiences to customers. People like to buy after seeing their friends online and company advertise on social media through celebrities and sponsors. Companies are growing in E-market that can help Arcadia group to recruit more knowledgeable and skilled staff which can maintain its websites.

Environmental Factor: This factor is important for sustainability of environment and main country used for sourcing materials, products and garments for their retail stores is Bangladesh. They have a special page devoted to animal care and welfare which states feathers, skins and leathers could be attained as by-product.It is one of the top generation of electricity which help company to establish in effectively.

Legal Factor: Arcadia Group follows various policies of UK and is particularly adhered to workplace such as Equality Act 2010. This makes workplace more fair and complies with equal opportunity, equal pay, discrimination and disability (Mazur and Woodland, 2017). It also supplies Code of Conduct Guidebook used by all manufacturers. Enforcement is consistent and intellectual rights are respected and health insurance is mandatory for workers.

HR duties and Responsibilities:

1.Recommend and develop incentive program to encourage employees: It is essential to retain skilled employees because they keep find job openings with high wages and more benefits.

2.Get feedback from store managers and their team: Crew and store managers can only provide rich source of information regarding customers and that feedback can be filtered out.

3. Cross- training should be insisted: This helps in finding loopholes and exploring personal interests and individual capabilities as compared to other industries because it helps in marketing and sales initiatives.

LO 2 Recruitment Strategies and selection methods

Arcadia Group follows Rodger's 7-point plan to recruit skilled staff in which attention is there on interviewers and interviewees (Reiche, Lee and Quintanilla, 2014). It helps in gathering information and recognizing the best recruitment and selection methods that use handwritten cover letters, CV format, online applications. These information helps in providing recruitment strategies.

Rodger's 7-point plan Method:

  1. Physical make-up: Arcadia group focuses on the appearance of the candidates. They should have a pleasant personality. Health of the candidates participating must also be fine. Their speech should be clear and understandable. All over their personality matters a lot to welcome any customer in the retail store.
  2. Attainments: Human Resource managers look for qualified and experienced staff so that they know how to attend the customers (Thomas, and Peterson, 2017). Staff of Arcadia includes sales manager, front desk office, cashier who requires graduation degree and experience to deal with existing and upcoming customers.
  3. General Intelligence: Every organization faces issues and problems. These should be resolved quicker and promptly. Recruitment staff likes candidates who are improves flexibility and robustness resulting from systems' capability to alter changing information, goals, environments and patterns.
  4. Special Aptitudes: This includes competencies, skills and attributes relevant to the job. Arcadia Human Resource leaders look admire the special skills in the candidates to attract customers in the stores and make a loyal customer base line (Niks and et.al., 2016). They should be able to respond them effectively on websites and update sites on regular basis. Recruitment process specially looks for special skills in the employees.

LO 3 Effectiveness of HRM strategies in achieving flexibility, strategic integration and reward system management

There are various HRM strategies which can be applied in Switzerland for better quality, flexibility and commitment:

1.People: First important aspect of HRM strategy is deciding the type of persons need to be recruited in the company. Arcadia has decided to hire local and international staff so it should focus on the type of work obtained and styles achieved from the candidates

2.Programs: Hired staff should be trained completely by organizing different activities and programs that attract kinds of people (Shields and et.al., 2015). These include reward program, bonus structure and future training of staff in Switzerland.

3.Culture: It directly relates to the entire culture of the organization. Leadership and management style determines the way it deals with staff. Arcadia group follows Autocratic style whose mission and vision is cleared and planning is long term.

4.Structure: Human Resource department should know which job carry out which type of function like skilled staff of Switzerland can be hired for the retention of customers in Switzerland.

5.Development: This is the final step of organization in which entire development of employees are concerned.

Effectiveness of HRM strategies:

Effectiveness of HRM strategies covers areas of hiring, training and managing employees in manageable and cost-effective manner. Following are some factors that determines whether Arcadia group can operate in Switzerland or not:

1.Quality of new hires: Quality of new employees should fulfil the functional needs of the company (Rees and Smith, 2017). Each position should be filled with perfect position and is some abilities and skills are lacking in workers than Human Resource department must rethink for recruitment. In Switzerland many qualified and skilled employees can be

2.Productivity of Employees: Every worker has defined target that which is contributed to Arcadia group. For example, per day sales of the company should be X unit then the worker has to achieve that sales.

3.Retention: HR strategies become weak if the staff turnover is higher. Retention of staff lacks due to non-competitive compensation, poor management, undelivered hiring. Satisfaction of employees determines the changes in the retention of strategies.

4.Costs: Budget variance should be conducted that includes recruiting, management, compliance and compensation.

HRM approaches to achieve goals:

1.Reward management: Arcadia group allows this system to motivate employees so that they work towards attaining objectives set by top management (Wilkinson, Redman and Dundon, 2016). Employees are then rewarded equitably, fairly and consistently that increases their value. Here reward structure is created and consists of practices and pay policies, executive pay and team reward.

2.Performance management: In this process, employees' work is managed and work together to plan, monitor and review their work process. It is a continuous process of fixing goals, assessment of progress and providing further mentoring and feedback so that it gets confirmed that employees are completing objectives of organization.

3.Strategic integration: It is the integration of functions of various units of business to centralize to get more benefits. Arcadia group uses this approach to improvise performance and align business strategies so that unpredictable challenges can be faced on time. In this approach different organizational groups are involved and processes are organized that focus on achieving effective results (Presbitero, 2017). Resources capabilities, external environment and industry trends have to be properly understood properly. There are probably two types of integration namely and External integration. There is high investment at initial stage.

LO 4 Types and importance of training and difference between approaches of Strategies

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There are various types of training given to employees and expatriate of Arcadia group. It includes Cross cultural, On job and in-house training globally:

1.Cross-cultural training: This type of training is related to cultural differences among nations that brings awareness in running the organization in a very smooth manner in Switzerland. It mainly aims at values, traditions, ethics and protocols of the nations. It is necessary to understand power distance, individualism, masculinity and long termism.

2.In-house training: Internal operations and activities carries out by staff for employees in order to improve their learning skill and personality. It can leap huge barriers and reflects solid knowledgeable of the culture and environment of organization. In this training actual examples, challenges, problems that participants of Arcadia group faces encounter each day are used. They should succeed in internal integration to establish priorities, measurements and goals (Den Hartog and Boon, 2017). Employees' skills are developed and their knowledge is cemented. In this approach responsibility of teaching operation is assigned to upcoming employees who built up their own quality standards and production standards.

3.Off-job training: In this type of training, sessions are given sessions for their roles away from workstation. Workers are required to allot tools and techniques which are basically used at real work place.

Global differences that can occur from HRM strategies at International Level in Host country (Switzerland) are as follows:

1.As compared to domestic HRM International HRM has to address many wide series of activities and practices related to cross-cultural training and off-job training. Managing in various countries is difficult because many complexities arises that are relevant to different cultures and traditions.

2.International Environment working globally have to face various challenges related to HR issues of employees who belong to multiple nationalities (Van Dooren, Bouckaert and Halligan, 2015). Therefore, more HR systems have to be set by HR managers. Whereas, HR managers in domestic environment governs HR programme that belongs to single nationality.

3.There should be more involvement in the personal life of employees. Executives should understand all aspects related to compensation package delivered in foreign assignment like taxes, cost of living etc. this department takes care of children left behind in boarding schools but in domestic environment responsibilities of HR are limited.

4.International HR has to deal with political factors as compared to domestic HRM (Lian, 2018). It has to follow all rules and regulations of that particular nation like Switzerland.

Reasons of such global differences:

1.Success of Business: organization adopts such difference so that it can achieve its goals more quickly and smoothly.

2.behavioral change: Another reason can be behavioral changes that can be brought at workplace and company experience diversity in various branches.

3.To expand globally: HRM wants to recruit people from other nations in order to expand its branches in various other countries.

Importance of development framework

Development framework is important in Arcadia group in order to retain skilled and qualified staff. It ensures that organization is has qualified, external talent pool that can be build up and strengthened for flexible working environment (Nudurupati, Tebboune and Hardman, 2016). This framework enables good communication and enhance ability to affect organizational directions and initiatives. It also helps in proper alignment of employees with organizational objectives and supports engagement of workers. There is huge development of talent pool through career management plan and effective workforce planning is there. It aids in increment in employee productivity.

LO 5 Relationship between HRM and organizational performance

There are various HRM models that believe in HRM policy and make significant and optimistic contribution in the performance of organization.

Warwick Model:

It centres on five major components such as macro environmental forces, micro environmental forces, HRM context, HRM content and business strategy content. This model takes cognisance of HR practices and business strategies, external and internal context in which all tasks takes place and processes are performed including changes from both sides and content. This model recognizes the environmental influence on HRM. It links connection between environmental and external factors and diagnose how human resource management adapts the quick changes in the field of context (Feys and Probert, 2015). There would be definitely growth in the performance of employees as well as of organization if there would be proper alignment of internal as well as external contexts.

The Guest Model

Another important model is The Guest Model that is superior from all other models. It specifies all strategies and certain practices are demanded by the organization. These are then executed which then results in better outcomes. These outcomes involves behavioral, performance and financial rewards. It includes mainly six elements namely, HR strategy, HR outcomes, behavioral results, outcomes related to performances and financial consequences. It aims at employees' performance because financial results depend on this factor. Behavioral outcomes decides the quality, flexibility and commitment which are influenced by HR practices.

It needs to get a turn along with some strategies and practices that are properly aligned with organizational functions (Ho, 2014). It partly verifies the sense that maps out the input and and consequences of HRM.

Theory of Employee Participation:

In this theory employees participate in each and every process of organization. Arcadia group uses this theory in decision making processes instead of simply reacting on the orders. Like this, the company gets some new and innovative ideas and innovative processes can be explored for the betterment of the project. Team gets encouraged to get decision in the company itself and creates further down line. Thus, it is a key part of empowerment process.

Relationship between HRM models and organizational performance:

HRM models are linked with organizational performance in achieving its objectives, capturing qualified workforce so that proper handling of employees can be done, innovation in customer satisfaction and quality, continuous improvement and customer focus and many more. Human resource management make efforts to make employees more effective and efficient. Their skills and abilities can be used in the best manner (Moleki, 2014). Employees' loyalty and motivation influence organizational performance in positive manner.

Importance of activities on workplace:

Activities are important on workplace so that companies get to know the hidden skills of employees and HRM can build trust with them. These activities help them to become more comfortable and reliable with each and every worker (Latukha, 2016). Internationally, cultures and traditions are different of every employee so chances of conflicts increases. Thus, HRM play an important role in resolving these disputes and maintain a friendly environment. Effective communication is developed and strong bonding is there among employees. Get Buy Assignment from Expert Academic Writers.

LO 6 Issues and reasons that are implemented on HRM strategy:

organizational, national and cultural issues affect HRM strategy to great extent. Reward and performance management helps in the retention of employees in Arcadia Group.

organizational issues: Lack of opportunities affect strategies of HRM and deficiency of succession plan for existing employees hinders development and progress of the organization. There should be awareness in leaders about the functioning of staff and professional maturity should be there to take all types of decisions.

National Issues: National issues includes all types of economic and political problems like corporate taxes, free trade, tax evasion, minimum wages, spending of foreign aid. UK economy faces poor productivity growth, rents and expensive prices are involved to inter generational inequality, low economic growth. It is actually facing weak and poor economic growth and there is fall in real wages (Rodgers and Dahling, 2018). Thus, it is a burden for an organization to reach at high productivity level.

Cultural Issues: Cultural issues include working methods, ethics, teamwork, healthy environment and quality of customer service delivered. Perfect cultural environment should be reinforced all the times so that employees should participate actively. All types of cultural needs to be integrated systematically.

Theory of Reward system and Performance Management

Reward system: It helps in increment of performance culture and gives positive feedback from employees' side. It is well designed and develops good relationships by appreciating skills and abilities of employees' needs and interests (Schroumlder, 2014). It can be monetary or non-monetary.

Performance Management: In this system, all objectives are met by the employees in an efficient manner. Here main aim is on the performance of department, employee and organization (Rodgers and et.al ., 2018). It provides motivated workforce with high confidence and improved management control. It is applied by expatriates or employees with superior roles.

Reasons to measure individual employee performance:

1.Maintaining Employee efficiency: Arcadia Group believes in measuring individual's efficiency so that its performance can be maintained in the future.

2.Recognizing Strong and weak links: This allows the organization to determine strong and weak points related to work performance of an employee. It helps in measuring efficiency level which increases productivity with time. Some additional responsibilities can also be added if possible.

3.Helps in determining appropriate compensation: Measuring any employee performance helps in determining compensation which he/she deserves. It leads to his/her increment of pay or promotion in the company.

LO 7 Management skills for international business

Management skills means having leadership skills, strong communication, team work.

Management skills helps in to manage the business, industries and organization globally. It helps in increase the growth of the business and it gives positive outcomes for the business. Management skills helps in evaluating the organizational performance. Management skills helps in to understand our beliefs and business opportunities. It is an important contribution to any business or organization (Ngo and Nguyen, 2016). Management skills is important because it can place a business or organization on the leading edge. These abilities help in to formulate and carry plans of the company or business. Management skills helps in overall company improvement.Management skills required in International BusinessManagement skills required in international business helps you in succeed in today's global business economy. Management skills required in international business includes-

Overseas Experience: Overseas experience means understand the business globally. Overseas experience helps in managing teams which are diverse. Overseas experience helps in to become successful business leader.

Humility: Humility means interested in other cultures and diversity (Vokes and Limmer, 2015). Humility here means to figure out very interesting about their cultures and diversity.

Well Spoken: Well spoken skill removes the communication barriers in international business. Well spoken is very powerful and leadership skill which helps in better communication on international business.

Deep Self-awareness: Deep self-awareness means understand your beliefs on international business which helps in to improve our character (Kroes, Manikas and Gattiker, 2018). Deep self-awareness helps in to recognize our behaviour, feelings and character.

Sensitivity to cultural diversity: It means awareness of different cultures based on religion, nationality and different cultural attitudes. Sensitivity to cultural skills are also called cultural competence.

Global strategic thinking: Strategic thinking means a series of decisions about the globally.

Strategic thinking improves decision making and management philosophy. Strategic thinking must be innovative in aspects of the operation of the business or company. Strategic management or thinking helps in dealing with the man power, resources etc.

Good negotiator: Good negotiator have ability to think clearly, listening skills, ability to express thoughts verbally, preparation and planning skills. Good negotiator skills required in international business which removes the barriers in the business (Grace and et.al., 2016). Good negotiator is the important tool for the international business. A good negotiator should be innovative

and creative problem-solver.

Resilience and adaptability- A good business leader with leadership quality prepared to fail and learn from our mistakes. On international business a business leader nurture our ability and

get back in the business and move on. It will help in business carrier to evolve over time.

Presence- It defines our energy level, self-confidence on global market. A global business leader must have these identities (Siddiquei and et.al., 2015). Presence helps in international business which shows innovative and creative ideas and thoughts. Presence is a powerful leadership skill to have on the global stage. Presence helps in to understand the business world works on the international scale.

For More Visit: Importance of Motivation in Building Team in BBC

Conclusion

These management skills is the most important for international business.

These skills enhance the existing business and develop new business on global scale. Arcadia group uses Human resource strategies at international level and complies with political and economical issues effectively so that organization can run smoothly. It knows the importance of reward and performance management that helps in determining various aspects and scratches out hidden skills of employees. International HR strategies makes its environment healthy and friendly. It helps in retention of employees at global level.

REFERENCES

  • Den Hartog, D.N. and Boon, C., 2017. The Netherlands: HRM and Culture at RetailCo 1. InThe Global Human Resource Management Casebook(pp. 42-51). Routledge.
  • Den Hartog, D.N. and Boon, C., 2017. The Netherlands: HRM and Culture at RetailCo 1. InThe Global Human Resource Management Casebook(pp. 42-51). Routledge.
  • Feys, B. and Probert, C., 2015. PESTLE analysis.Primento Digital.
  • Feys, B. and Probert, C., 2015. PESTLE analysis.Primento Digital.
  • Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis.European academic research,2(5), pp.6478-6
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