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    Effective Human Resource Management in an Organisation - Harrods

    University: The University of Newcastle

    • Unit No: 10
    • Level: Undergraduate/College
    • Pages: 7 / Words 1651
    • Paper Type: Essay
    • Course Code: IRHR2270
    • Downloads: 374
    Question :

    Topic- Illustrating your analysis with examples including those covered during the module and examples from your own organisation or one known to you discuss the role of human resource management HRM in organisations and critically review the link between HRM and wider organisational strategy

    Harrods is brand which is known all over the world. Its Knightsbridge store has 1 million square feet of selling space with over 330 various departments. Harrods values are – British; Luxury; services: Innovation and Sensation.

    This case study generate the integral role that Harrods’ employees play in upholding the brand values. People are important resource of any organisation. In the retail sector, employees are the public face of the company. They are responsible for interacting daily with a variety of stakeholders, for instance, customers, senior managers and suppliers, to make sure the day-to-day running of the business. Effective communication is essential for creating an environment where employees and customers are satisfied.

    Harrods has been in this business for more than 160 years. It employs 4000 employees with an additional 3,500 agency and concession employees. In 2010 Qatar Holdings buys Harrods from Mohamed Al-Fayed. The new owners are strongly committed to all of Harrods’ employees. They understand that engaged employees are crucial to continuing success of the business. Such employees are likely to be happy and consistently high performers who want to progress their careers with Harrods. Managing employee relationships is the role of the Human Resources department.

    This case study looks at the methods which is adopted by Harrods’ Human Resources department to enhance employee engagement. This comprised positively changing the organisation’s culture to make the business to meet the needs of its employees.

    Human resource management (HRM)

    It is a procedure of developing people at work. And covers all aspects in employee development and the steps include in this are Recruitment and selection, Performance and development.

    Following this investigation, Harrods carried out its first comprehensive employee survey to find out what they thought about working at Harrods. The survey results were used to create strategic plans for change the four elements were:

    1. Changing organisational structure. Senior managers felt that the organisation was too hierarchical i.e. had too many layers. The new structure is flatter with employees taking on more responsibilities. This enables job enrichment, providing opportunities.
    2. Changing leadership. Creating an environment where employees are encouraged to make more decisions themselves. Senior managers create the business vision but ground level employees are delegated more leadership responsibilities.
    3. Improved communications. Better communications inform all employees about the strategies of the company. These outline the aims and direction of the business.
    4. Living the brand values. Making sure that everyone understands and models the brand values.

    Communication and Culture

    The culture of an organisation is very powerful and has been described as its DNA. It has also been summarised as ‘the way we do things around here’ and is created through shared values, attitudes, beliefs and norms. One of the reasons why Harrods is so successful today is that it gives its employees a voice for change. All employees are encouraged to give feedback on every aspect of how Harrods operates.


    Leadership is crucial in shaping the culture of an organisation. There are two opposite poles in terms of leadership, these are autocratic and democratic. Autocratic leaders tell employees what to do. On the other hand, democratic leaders encourage input from employees, listen to their ideas and enable them to make decisions. Both styles have their place, depending on circumstances. The culture is thus one of trust and respect and is the key to Harrods’ employee engagement.

     Harrods’ management is committed to fully developing its people so that employees, the business and its stakeholders are fully satisfied. There are three main elements of the democratic leadership approach at Harrods which encourage the development of its employees.

    Benefits of Human Resource Management

    Harrods recognises these intrinsic needs and encourages job rotation, job enlargement and job enrichment to provide career development opportunities. Job rotation involves periodically changing jobs and work areas to develop new skills in different areas of the business. Cross departmental experience is viewed as important for personal development. Harrods offers a range of many different types of job opportunity including face-to-face customer operations, merchandising, recording and reporting of sales and online customer communications. Job enlargement involves encouraging and supporting staff to take on new and more challenging tasks. Job enrichment involves building existing job roles by enabling employees to engage in a wider variety of interesting tasks, for example, taking on some team leadership responsibility and removing unnecessary supervision.

    Having an informed and engaged workforce has resulted in many tangible benefits. There have now been four employee surveys. Each survey has seen a higher return from employees and an improvement in the indicators of employee engagement. Significantly, 91% of employees have stated in the most recent survey that they are proud to work for Harrods and employee turnover has halved in the last five years.

     Harrods places a high importance on brand values so it is essential that these values are reflected in how employees behave. Employees have to live up to the Harrods brand because customers are aware of it and expect excellence.

     Engaged employees are committed ones who help the organisation to achieve its targets and to live its values. Harrods recognise that this is a democratic process.


    Human Resource Management should be seen as a strategic function of an organization. It helps to build a competitive edge for an organisation by positively engaging its employees. Key ingredients of effective Human Resource Management are having in place an appropriate leadership style and effective two-way communication with employees. Engaged employees are more likely to be proud to work for their organization and therefore will believe in and live out the values of the organization.

    • Introduction
    • Human Resource Management (HRM) important steps.
    • Communication and Cultural Change
    • Leadership
    • Benefits of human resource management
    • Conclusion
    Answer :


    Human Resource Management is explained as the process of making efficient and effective use of human resources so that company can creates the opportunity to accomplish desire goals and targets. It is necessary for any of the organisation because it allows to bring best out of employees. The chosen organisation for this respective assignment is Harrods which is one of departmental store which perform in different part of the world. Headquarter is located in Brompton Road, London, England. Here, in this file different topics will be address which will related with role of human resource management and even there will be critical review between HRM and companies strategies.


    Discuss the role of human resource management in organisations.

    In present scenario, each and every business organisation requires strong Human Resource Department as it helps to manage each and every work in a systematic manner. It is one of those department which can help out the employees to tackle any of the situation whether it is favourable or not. Talking about Harrods Departmental Store, it has been performing really well in the market and it becomes crucial for their HRM department to take active part in decision making so that they can even perform better in any of circumstances.

    Guest Model of HRM has been been introduced by David Guest who simply wants to explain that HRM is one of the department department form personnel management. It is because this model simply explains that HRM is all about commitment which is needed to be fulfilled (Pinzone and et. al., 2016). It is the model which can allow the understand that role of HRM in Harrods Departmental Store. Basically, this model is based on six dimensions which further discussed in detail.

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    HRM Strategy: In any of the organisation, there are various plans and policies which are needed to be formed on daily basis which can allow to attain the effective result in specific time period. In context of Harrods Department Store, their Human Resource management has the role to determine and find that what are those policies which they are needed to adopt for managing the workforce.

    HRM Practise: It becomes crucial for business association to decide that what are those practises which they must adopt so that required result can be obtained (Aklamanu, Degbey and Tarba, 2016). In terms of Harrods, they are mainly focused towards the process of recruitment, selection as well as training and development program. It is one of those practices which can be beneficial for HRM department of Harrods because they will be able to create better opportunity to accomplish the goals of an organisation.

    HRM Outcomes: The Guest model explains that outcomes of an organisation plays the crucial for determining the overall performance (Mehta and Chugan, 2015). Here, role of HRM department automatically increases as it simply explains that how any of the employees must work in any of the particular situation for the betterment of an organisation. In context of Harrods Department Store, they are able to accomplish effective result because of the training and guidance which is being provided by the HRM department of a company.

    Behaviour Outcomes: It is mainly assumed that the behaviour which is being shown by the HR department has the direct impact on overall result of the company. It is said that company can accomplish their goals only in that respective situation if they have developed the suitable environment for workforce. In context of Harrods, it will be necessary for their HR department to show positive behaviour because that is their major role towards any of the employee working in the premisses of a company. It will simply help to accomplish the goals (Azmi and Mushtaq, 2015).

    Performance Outcomes: It is quite crucial for the business organisation that company mainly focuses on the performance of the employees who can help out to achieve the targets (Jørgensen and Becker, 2017). It is necessary for HRM department of Harrods to provide essential training to employees which can allow the business organisation to take the growth in market. In simple words, it is the role of HRM department to provide essential training to employees so that they can perform better in any of the situation can give their best for achieve the targets on time.

    Financial Outcomes: It is assumed that effective result can be accomplished only in that respective situation where company is able to utilise all of the allocated resources in best possible manner. In case of Harrods, it is said that company can only achieve its target in that particular situation where HR department create the opportunity for employees to utilise all of the resources in specific time period time.

    In short, company like Harrods is able to use Guest Model of HRM in effective manner which is allowing to achieve the target. The overall performance has been uplifted just because of the impact which is being created by Guest Model.

    Critically review the link between HRM and wider organisational strategy.

    Human Resource Department has the important role within the organisation because they are the one who decide which types of employees are needed to be hired for performing in any of the field. It is one of that sector where chances of errors is very low because it directly impact on overall result. Talking about Harrods, whenever any of the department prepare plans and polices they directly or indirectly involve human resource management because they are the one who take the calls that whether those policies are helpful workforce or not (Jamali, El Dirani and Harwood, 2015). It is because the ultimate is to accomplish the target on specific time period. Below, there is the discussion about various department of Harrods Department Store and role of HRM in that particular situation.

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    Marketing Department and role of HRM department: In any of the business organisation, marketing team has the huge responsibility as they are the one who has to decide that how any of the advertisement can be done so that target can be achieved (Druml and Cichna-Markl, 2014). In this respective situation the HR department of Harrods can help the marketing team that how they can bring out the best form of advertisement so that more number of customers can be connected towards the organisation.

    Research Department and HR department: In an organisation, research department has the crucial role because they have to work on continuous basis for the betterment of a company. It is not an easy task for any of research department because they are needed to cover wider area (Fay and et. al., 2015). In context of HR department of Harrods Ltd, they will have the responsibility to review all of the actions being taken by the research department for required result. Even option is available to provide appropriate training to research department in initial level so that they can identify the area which they will majorly focus.

    In simple words, there are lots of work that is needed to be conducted by the business organisation and it becomes the duty of HRM department because they are the one who provides training to workforce to perform any of the specific task. Secondly, HRM has the authority to form the plans and policies and looking at that particular situation, they can form different rules on the basis of department which will bring flexibility in the business organisation (Ehnert, Harry and Zink, 2014). Also, there are number of occasion in where company requires to bring changes in equipment and that respective position HRM department can help out to achieve the target.

    In addition, there are number of strategies which is needed to be formed on daily basis. Here, HRM department can show their contribution to form the policies because they are one of the department which has detail information about each and every employees and their working capabilities so that they easily decide which types of policies is needed to be formed.


    From the above file, it is concluded that HRM is one of those department which allows the business organisation to perform better in any of the situation because it helps to provide proper training to each and every employees. Guest model simply allows the business organisation and HRM department to identify that how any of resources and policies can be used in effective manner. It is said that HRM is one of those department which has a direct impact on other department of a business organisation because it provide guidance that how any of the business decision is required to be taken.


    Aklamanu, A., Degbey, W.Y. and Tarba, S.Y., 2016. The role of HRM and social capital configuration for knowledge sharing in post-M&A integration: a framework for future empirical investigation. The International Journal of Human Resource Management. 27(22). pp.2790-2822.

    Azmi, F.T. and Mushtaq, S., 2015. Role of line managers in human resource management: empirical evidence from India. The International Journal of Human Resource Management, 26(5), pp.616-639.

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