Hrm and Organisational Turnaround Selfridges & Co Essay Example

and easily understandable for all employees.

In the case of Selfridges, the HR department has developed policies that are well-suited to the employees. According to James N. Baron and David M. Kreps (1999), the HR practices of an organization establish a structure for the relationship between employees and management. If this framework is altered by the organization, it can disrupt the underlying informal and intricate understandings, and both workers and management must invest effort in renegotiating their respective roles. This is referred to as the traditional approach.

In the formal context, the traditional approach suggests that the Business Development Director oversees the recruitment and selection process (Case Study), while the CTO oversees the performance management system (Case Study). It is crucial to implement the performance management system properly so that each employee has a proper performance appraisal system. However, it appears that the HR process is more informal in the organization as mentors focus on personal and career development through the performance management system. The HR policies at Selfridges have contributed in several ways: creating a desire among staff to work with the organization, providing a friendly work environment and improving communication between staff and management, and welcoming employee contributions, which has increased trust level.

According to Stephen and Marjorie's study (2006), the performance management process can motivate individuals to consider their personal development plans and organizational succession plans. At Selfridges, the role of leader redefines the performance appraisal process. Purcell et al (2003) suggests that an effective appraisal system can increase motivation, commitment, and the positive utilization of discretionary power by employees.

Performance appraisal is a crucial aspect of performance management, as it aims to evaluate the individual

or team's accomplishments in relation to the established objectives (Stephen and Marjorie, 2006). According to James N. Baron and David M. Kreps (1999), maintaining consistency in HR practices, such as intensive training programs and meticulous selection procedures, is vital for achieving long-term technical advantages and enhancing overall efficiency. University Of East London 5

Managing People and Transformation: Selfridges HR Approach and Reward System

The HR personnel at Selfridges have a main goal of ensuring that the right people with the right skills are in the right positions. They understand that this can only be achieved by implementing integrated reward strategies. Various research studies, such as those by Stephen and Marjorie (2006), have found that there is a direct link between employee pay and performance. By providing variable incentives tied to corporate objectives through a performance management process, employees are motivated to take on roles, display values, and exhibit behaviors that align with customer orientation and quality initiatives.

Maslow (1943, 1978) and Herzberg (1959) have also conducted studies that show that pay is just one of many factors that contribute to human needs. While satisfaction of this need can contribute to motivation, the importance of pay as a motivator will vary depending on individual circumstances. Additionally, according to the Expectancy Theory, employees are motivated when there is a direct relationship between effort, performance, and reward (Kessler, I. and Purcell, J, 1992).

The case study reveals that participation in organizational changes at Selfridges is as high as 61%. Participation has been advocated as a management technique for both ideological reasons and as a means to increase work effectiveness (Coch &).According to research conducted by Frech in 1948 and Lawler & Hackman

in 1969, high organisational commitment is connected to reduced labour turnover and absence. However, the relationship between organisational commitment and performance remains unclear, as highlighted by Guest in 1991 and cited by Michael Armstrong in 2003. The University of East London supports this information.

According to Michael Armstrong (2003), it is important for management to effectively deliver messages in order for people to understand and commit to them. At Selfridges, 61% of employees are actively communicated with through active communication. The team leader has been given the responsibility of communicating the organization's message to employees, fostering trust in them.

Mission Statement

Deep understanding of the mission and vision statement of the organization is crucial to achieve the required level of performance. At Selfridges, employees are frequently communicated with their mission statement and symbolized action logos such as SHINE (Smile, Help, Inform, New product Push, End Sales). These tools help create a clear understanding for employees to consistently follow procedures when interacting with customers. According to Rigby's (1994) survey of 500 US managers, the mission statement was identified as the most utilized tool out of 25 reported tools.

Managers were highly satisfied with the mission statement, rating it as the second most satisfying tool overall. The University Of East London's Managing People and Transformation course focuses on Selfridges HR Approach and their Organisational Values, Beliefs, and Vision. Performance management begins with clearly communicating the organization's values and beliefs, which support the overall vision and provide a framework for the corporate culture needed to achieve business objectives (Stephen and Marjorie, 2006).

At Selfridges, 72% of employees share the values of the organization. This shows a strong understanding of the company's vision and

opportunities for career growth, creating a sense of value in the workplace. Additionally, according to the performance management process model mentioned by Stephen and Marjorie (2006), aligning values, beliefs, and attitudes with corporate and HR strategy is crucial for maintaining employee motivation. In this model, line managers play a vital role in providing coaching and guidance to improve employee performance.

As of 2000, 58% of employees were satisfied with performance appraisal. In 2001, this increased to 78%. Additionally, in 2000, 59% of employees were satisfied with career opportunities, which rose to 84% in 2001. According to Michael Armstrong (1995), there may be alternative methods of measuring performance, such as conducting individual and group discussions and utilizing special surveys to gather anonymous feedback from managers and staff.

The feedback of the results should be provided to all relevant departments. At Selfridges, the Human Resource management has been crucial in achieving high performance and allowing the company to regain prominence. The company's vision was to be the best and most thrilling department store chain in Europe by meeting customer needs. The University of East London's Managing People and Transformation course discusses Selfridges' HR approach and how the organizational culture was effectively passed down from management to employees.

According to E. H. Schein's (1985) model of organizational culture, the success of an organization relies on the values, norms, and internal integration. The model suggests that individuals first perceive the physical aspects (artifacts) of the organization, then internalize its values, and ultimately develop assumptions that influence their behavior. This allows for continuous learning and adaptation of employees' basic beliefs (E. H. Schein 1985). In line with this model, Selfridges modified their recruitment

process based on a case study. Consequently, the recruitment criteria at Selfridges underwent alteration.

The HR department values employees with a positive attitude more than experience. Consequently, it is clear that negative behavior from employees towards either their coworkers or customers can lead to various negative consequences in the future. Hunter (1996) states that unethical behavior incurs significant costs, such as damaged relationships, distrust, reduced employee productivity, stifled creativity, ineffective information flow within the company, decreased employee loyalty, and increased absenteeism and turnover.

Experienced managers can provide coaching and encouragement to new team members, helping them achieve the desired level of performance. At Selfridges, attitudes and behavior are considered more important than experience alone. While skills can be acquired through training programs, attitudes are ingrained traits that play a significant role in determining an organization's success.

Thus, the case study clearly indicates that the organization is committed to providing training and development opportunities to employees. The University Of East London 9 Managing People and Transformation Selfridges HR Approach suggests that a strategic approach to training and development involves integrating these policies and plans with other HRM strategies pursued by the organization. According to Christopher Mabey et al. (1998), the staffing components of the architecture perspective focus on maintaining a balance between different inputs to ensure that the number of customer service staff in a retail store aligns with the level and type of service required by the business model. In order for Selfridges to effectively manage planned change and adapt to uncertainties and unexpected pressures, the organizational structure should avoid rigid hierarchical bureaucracies, powerful interest groups, and inhibitive demarcations among work groups.

According to Guest (1987), organizations should aim

for flexibility by adopting an organic structure, delegating control, and designing jobs. As mentioned by Mabey et al (1998), Selfridges has effectively enhanced employee performance through various behaviors, as outlined in the case study:

- Communicative behaviors, including discussion, listening, questioning, collaborating, and summarizing.
- Affective behaviors, such as helping, supporting, encouraging, reaffirming, understanding, and calming.
- Cognitive behaviors involving explaining, advising, accessing and sharing information, exchanging ideas, and developing relationships with coworkers.
- Learning behaviors that encompass facilitating, reflecting, gaining different perspectives from peer mentors, and coaching or modeling with partners.
- Challenging behaviors that promote discipline for progress.

The University of East London's course "Managing People and Transformation" highlights Selfridges' HR approach. The role of team leaders at Selfridges has been redefined to improve communication effectiveness. Kotter (1996) suggests that transforming people's behavior by altering their emotions is the biggest challenge in organizational change efforts.The integration of emotional intelligence with an organization's strategic policies is crucial for successful leadership roles.

The senior management at Selfridges believe that the changes in the team leader role have led to improvements in performance and attitudes. According to research conducted at Bath University by Purcell and colleagues (2003), referred to as Black box research, it is evident that leaders have a significant influence on the workforce and their behavior while at work. This research indicates that the actions taken by first line managers directly impact commitment, high performance, and work behavior. It is therefore clear that line managers play a crucial role in shaping the workplace environment.

Storey (1992) suggests that line managers have transitioned into more generalist roles, overseeing a team of support functions to reach business objectives. At Selfridges, this transformation has resulted

in line managers being in charge of a larger group of employees and managing the process of change. As a result, human resource strategies such as operational management and organizational design have become a higher priority for line managers.

The correlation between the role of first line managers and employee attitude and behavioral outcomes, such as commitment, motivation, and job satisfaction, has been established as a fact (Storey 2005). According to Storey (2005), the attitudes and behaviors of employees are significantly influenced by first line leadership. This suggests that effective management of these managers is necessary. Storey also highlights the importance of managers in translating policies into meaningful actions.

Recruitment is the key to achieving performance. According to Stephen and Marjorie (2006), good recruitment and selection are crucial. Effective organizational performance and positive employee relations can be greatly influenced by well-planned, agreed upon, and communicated policies, procedures, and practices. Therefore, it is essential to appoint the right person with the appropriate skills for each job. At Selfridges, employee commitment is high, with about 93% feeling loyal to the company.

This paragraph discusses the correlation between employee satisfaction, commitment, and HR policies. It is believed that committed employees are more satisfied, productive, and adaptable. Commitment is seen as an internalized belief that promotes proactive behavior and going above and beyond in job performance. However, evidence suggests that the correlation between commitment and performance is only moderately significant. Overall, satisfaction is strongly connected to performance. (Guest, 1987, p. 513)

Guest (1992, p. 123) argues that expecting a strong connection between commitment and performance may not be logical. While commitment can lead to greater effort, according to expectancy theory, the relationship between

effort and performance is influenced by various intervening behaviors that can potentially disrupt it. The University of East London conducted a study on managing people and transformation, specifically analyzing Selfridges' HR approach. The results indicated that 78% of individuals at Selfridges engage in learning and receive coaching.

The research conducted by Thomas showed that organizations that prioritize learning as part of their culture tend to create an environment where individuals recognize and value the importance of learning. When learning is reinforced, valued, appreciated, and openly discussed, individuals internalize and incorporate the value of learning into their behaviors. The case study of Selfridges demonstrates that they also prioritize the customer and employees, which enables the company to transition into a knowledge-based organizational system. (Thomas O. Davenport 1999)

The information includes knowledge pertaining to customers, competitors, and the organization's own business processes (Tobin cited by Storey, J, 1998:30). There will be a clear requirement for the transfer of knowledge from one employee to another in order to sustain the culture for an extended period. The case study reveals that employees at Selfridges have a heightened sense of achievement, with the percentage increasing from 68% in a previous study to 83%. Defined by McClelland, this behavior demonstrates a drive to compete and exceed standards of excellence (McClelland et al, 1953 cited by Lyman W.).

(Porter) The challenging nature of a difficult task cues that motive, which, in turn, activates achievement-oriented behaviour. (Lyman W. Porter et al, 2003) University Of East London 13 Managing People and Transformation Selfridges HR Approach Conclusion The case study scenario clearly indicates the positive move of the company’s HR policies that has redefined various leadership roles

and management styles. This has achieved the desired performance through active participation of employees as well as the team leaders to communicate the vision and the goal of the organization.

The combination of customer care and employee retention can be seen as a strategic investment in human capital. This investment involves continuously inputting values, cultural norms, attitudes, learning behaviors, and active participation into the Selfridges system. This investment will lead to future success. (University Of East London 14 Managing People and Transformation Selfridges HR Approach)
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