Case Background
Human Resource Management (HRM) Practices: A Case
Study on Arcadia Group, UK
Arcadia Group Ltd.is a British multinational company.
... [Show More] The headquarter of this company in London, United
Kingdom.it owns the street retailing cloth in many locations of UK. It has more than 2.500 outlets up the UK and
many departments and more than hundred franchise in some of others countries. The type of this organization
private and retail in nature. This is the founder in 2002. Sir Philip Green is the Chairman of the organization and Ian
Grabiner is the CEO. Paul Budge is the Finance Director. It is the company that owned by listed on the London stock
exchange on1929 that had the 300 stores, mills and factories. this organization now working on the business on the
perspective term of contemporary business in holistic business concept. From the top level to lower level of business
operation this organization working reputed mania at the global context.
Human resource management is the process to fit the right people in the right position. there are no
comprise about their perspective clue what the organization wants to in future So keep in this as the strategically
game plan they need to search the right people to do the right things as the fundamental purpose besides this it
tries to reach the organization in right goal achievement to employee the skills and welladapted workforce, proving
the training required for them also looking the touch of motivating issues. It is really a question for the organization
how they satisfice the employees by better evaluation it makes the desire to find the factors of statistics and ensuring
the quality life of the employees, basically the prime objective is to hire right people to gain the organizational
objective timely and strategically. Arcadia Group in united king kingdom is doing their retailing clothe business as to
how much skillful people there need in accord to the demand.
Function means is the core-centric action of anything that shows the major executive areas of working. Human
resource management is the process that assesses the people as per the consistent with the organization’s demand
to reach the organization at the right position. The works of human resource management start from the planning
to hire of right people through the formulate study of demand and supply gap. After that by matching with the
organization goals maximization there requires to assess the staffing plan there includes job analysis, job describing
and job specification. Their basic component is to set up the criteria of skill judgments. After employing the people,
the organization takes the actions through the performance evaluation to measure the right training requires for.
After that how the organization keeps the right people in right place is all about the motivation and encouraging
issues of employee development. So, to say employees are the key people so organization plausible tries to find
the right the exact thing to meet for them. Ensuring the commitment that turns into the good relation take the
organization into the final steep to reach of the organization. At last the organization evaluates the overall situation
on the deepening on evaluating of human resource management report. Arcadia Group does the function by the
formative way of human resource activates about their conclusive issues of management.
a) Human Resource Management of Arcadia
In the Arcadia group Ltd.’s HRM is owned by Line managers as a means of fostering integration. These systems are
also called Personnel Management. Now, these personnel management changes in the context of HRM Personnel
Management. HRM personal management is a principally administrative recordkeeping function that intends to
establish and maintain even-handed terms and conditions of employment, while human resource management
puts together the traditional personnel management functions to shared goals and strategies and performs
additional people centered executive developmental actions. In the Arcadia group’s capacity of personnel,
management includes functional actions such as manpower planning, recruitment, job analysis, job evaluation,
payroll administration, performance appraisals, labor law compliance, training administration, and related tasks.
Human resources management incorporates every one of these exercises in addition to authoritative formative
exercises, for example, heading, motivation, mounting hierarchical culture, correspondence of shared qualities and
comparable. Human resource managements keep unapproachable from focal hierarchical exercises, works
autonomously, and adopts a receptive strategy to changes in corporate objectives or methodology. Human
resource management keeps integrated with Arcadia group’s strategy. This takes a proactive approach to align the
workforce. This task is the help to achieve goals.
b) Functional context, Recruitment and Planning Growth
The companies HR Department have some functions. There has a major aim of inspiring and encouraging the
employees to prove their determination and add value to the company. There are five main functions of HRM;
Human Resource Management recruitment, motivation, planning growth, implementing HR policies and
establishing fair work culture. The Arcadia Group is Selecting the perfect people from a large pool of applicants is
an incredible responsibility. This fascinates an intense feeling of perceptiveness while filtering through stores up of
uses that come the organization's way. After the short listing process is over, the HR Department called for
interviews. These companies HR managers have to assess the candidate on different levels, right from their
educational qualifications and capacity, to their character qualities. They take various techniques for evaluation to
zero in on the right people for the job. HR department checks a candidate’s background for the recruit the company.
A company’s most major asset is Human resource. For better employee performance and to ensure that each
employee tries hard to utilize their optimum capacity HR team execute training programs. This should be possible
by empowering communication among the representatives that outcomes in a solid sharing of thoughts and build
up a decent workplace. Additionally, representatives must be urged to be more proactive with regards to
formulating approaches to build the yield.
c) Global effect and context of Human Resource Management
Now, Global is changes and technological advanced. It is affected the process leads to innovation, changes in the
nature of work, new occupational categories and change of the form of organization. Human resources
development takes the position of significance. According to the World Bank, there are three main components of
economic growth, they are as follows: Human Capital, Physical Capital, and Natural Capital. All the organization
uses most of the human resource. Most of 64% of human capital is used in any organization. And 16% is physical
capital and rest than 20 % is natural capital. Arcadia group is the fashion oriented company so they use most of the
80% of human capital or resource. So, Arcadia group must consider the designing and implementation of effective
HR policies as an essential investment in the HR community and not an expenditure. HR development and
improvements in order to achieve sustained economic growth and profit of the company. Human resources are of
great importance for the Arcadia group. The increasing globalization and the forces driving it are posing serious
challenges to organizations throughout the world. One of the very important aspects of human resources
development is the support of business houses at national and international levels. Only these organizations, which
understand the new environment and growing complex competition and have the ability to provide appropriate
responses to the challenges will survive.
d) Human Resource Implementation policy and Implications
They have to implement various employee welfare schemes for their different levels of the employee. Policies are
employee welfare funds, maternity/paternity leave, health service, transportation facility, emergency leave, flexible
working time, work-from-home options, insurance schemes, recreational activities, etc. Human resource
department control promotions, transfers or expulsion of services. The overall performance of the individual is the
basis of promotion of Arcadia group. The human resource department also cares about the good working
environment with suitable compensation.
e) Work culture, Employment legislation and motivation issues
The HR Department needs to ensure that separation of any sort does not exist in the association. The
representatives and individuals from the administration ought to be made mindful of the possible enemy of
segregation strategies. They need to make sure that each individual working for the association is treated on a
reasonable and equivalent approach. Employment legislation addresses the legal rights of staff and employers.
Employment legislation is vital as a result of it elucidates the rights of each the leader and also the staff. It provides
them, with the correct channels, to follow just in case their rights are disgraced. It’ll conjointly facilitate to
encourage equality within the geographical point and discourage the pattern. For improving performance
motivation is compulsory. Basically, motivation comes from monetary form. For appropriate rewarding system HR
Department evaluates employee’s performance. Equities, bonuses, increments, awards, complimentary vacations
and flexible working hours are the rewards. Through motivational programs arcadia groups HR, teams try to build
a strong bonding between the organization and the employees.
f) Cost issues of Human Resource Management and implementation procedure
Most companies of the major sectors of expense are the cost of human resource management. On Arcadia group
basically, HRM expenses are employee’s salaries, cost of requirement prosses, cost of training, cost bonus, cost of
health care and other services. Besides this company auditor, remuneration, director’s remuneration, pension cost.
In the Arcadia group every year paid a huge amount to the staff. As we know that basic motivation is monetary
form. If the staff does not get salaries there, bonuses than they will be demotivated. For that reason, the Arcadia
group provide remuneration and bonus on the basis of the performance of the staff. In the Arcadia, the group has
two types of staff. Some staff works part-time, and some workers are full time. Recent year staff cost is
£389,980,000 which include wages and salaries of £354,674,000 and social security cost of £24,315,000 and another
pension cost of £10,991,000. The maximum of staff cost is going through the wages and salaries. This is all most 90
% of total salaries. Arcadia Group business increasing day by day so their human resource also increases so their
total cost on staff also increases. Arcadia Group takes advanced technology so they need fewer portions of people.
After using updated technology, they require the single person in place of 2- 4 people. So, they are able to reduce
salary and cost. Though their business size is increasing but their staff amount is reducing because of using advanced
technology. In 2015 their total number of employees was 28,115 in the retail position but in the very next year,
their total number of the employee in the retail position is 26,582. It reduces all most 7%. And the same time in the
hade office increases very little number employee for using modern technology. But overall staff cost reduces by a
great margin. Director remuneration is another sector of cost on human resource for Arcadia group. Because the
Arcadia groups business is increasing day by day the director’s responsibility is increased. They have to increase the
remuneration of the director by two to 5% every year. In the recent year, director remuneration cost is £4,222,000.
Every year at least one-third of directors have to retire. They get retirement benefit, and appointment of new
directors have some cost. To motivate properly arcadia group gives some bonus. The bonus is given according to
performance. If the bonus is not given according to on the basis of their performance than an employee whose
performance is better will become demotivated. There are two types of bonus given by the Arcadia group are the
festival bonus and performance bonus. Festival bonus is given in the Christmas, and performance bonus is given in
two times in the June and December. The company gives 30 % of performance bonus on staff performance and all
employee gain 30% of the festival bonus. Basically, staff get the salary and wages for the time they work but they
have been paid for the time they didn't work. They get sick leave, maternity leave. At the time of leave, they get
the remuneration on time. The employee also gets retirement benefit in form of pension. In every year the Arcadia
group provide £10,990,000 for the pension. They also provide some bonds of equivalent currency. Every year the
company is expenses 2% of the income for the pension. Arcadia group also paid to the auditor remuneration. Every
year £115 is paid to the auditor. And the company also paid his pension, tax service, etc. the auditor’s total
remuneration is £3,000,000 every year.
g) Recruitment and Selection process
Recruitment is the process of the integrated set of actions to that assist then organization fills the requires people
on the other hand selection defines the justifying throughout logical steps of employing. From both since there, it
is regarded the strength and weakness issues of the organization but the question is how organization meet the
situation on timely. A better analysis of the human resource department helps to find the strong zone and the
weakness zone of the recruitment process. Arcadia Group is typically an organization of UK retailer of clothing 2500
outlets of business in many locations. It is seen that the internal and external recruitment issues in any organization.
This organization follows the consistency basis of recruitment. This company follows the internal recruitment their
expertise is the high issues to tackle the situation as per the marketing channel on the other when channels issues
of retailing less important their external drives turn good.
Instructions
Study the attached case and analyse the case clearly identifying
the problem statement, alternatives and the conclusion from
International human resource management perspective.
Submit the assignment through College email by the deadline date
Use the file name as specified (normally your name course number)
[Mustafa TQM602]
Provide a printed copy in class by the deadline date
College policy requires to process all written assignments through
TurnItIn
One mark is deducted for each calendar day of late submission [Show Less]