Unit 36: Human Resource Values and Contributions to Organisation

How HR developments can be supported and encouraged and how they help the organisation in fostering designs and change management.

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Introduction of Unit 36: Human Resources – Values and Contributions to Organisational Success Assignment

An organisation is not as simple as it appears to be in fact, they are social structures that are created by a group of persons to achieve goals and objectives and gain a competitive advantage. On comparing agile with M&S networks it can be asserted that the company gets to look after all the factors that enable it to maintain its position in the global market. The fact about agile networks of the company has been pointed out in this paper which enables the company to maintain its standards and operate in an effective manner. In this paper, the writer has tried to state the factors that lead to an organisational design that leads to a sustainable performance by having taken into consideration the organisational design theory. The writer has also tried to analyze the need for which the motivated and knowledgeable groups come up with ideas in which they can identify the strategies to approach the employees for the adoption of a diversified workforce. The paper has also highlighted the facts in which the HR developments can be supported and encouraged and how they help the organisation in fostering designs and change management.

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LO1 Stating how organisational design contributes to sustainable performance

Evaluating the purpose of organisational design theory in Marks and spencer

The procedure of organising can be apprehended as the design and group of individuals working cooperatively to attain the objectives. Organisations are not constant structures. Changes are indispensable and it happens in the business environment where it carries out its operational activities. Organisations have the function to provide their employees with the appropriate tools and training opportunities for attaining success. To attain those goals and objectives organizations must be aware of the values and contributions provided by human resources.

Organisations have watched that sustainability has changed a lot. Sustainability has been initiated by business organisations and implemented to attain high-performance work. Most of the issues associated with organisations result from poor organisational design. A proper Organisational design helps to attain sustainable performance.

The organisational design is structured on the business strategy and imbibes effective behaviors. It is critical and difficult to create a sustainable performance within the organisation. But sustainability can be through effective and strong leadership. Leadership has a strong impact on the performance of the organisation and also on employee engagement.

PESTLE analysis on the retail industry

Political Factors

· The free trade policy of the country has facilitated the retail industry of the UK to deal with multiple countries

· The companies have been able to import foreign products and offer the products to customers at cheaper prices

Economic Factors

· The company has been facing a large number of discount competitors

· The competitor companies have been the reason to have stolen the market share gained by the company

Social Factors

· The company is a large business market employees many employees

· Looks after the customer needs by having taken care of their local needs

Technological Factors

· Has incorporated the facility of self-checkout for the customers

· Easily accessible by customers on online platforms due to the effective automation process

Legal Factors

· The company has so far complied with all the legal factors

Environmental Factors

· Aims to make use of sustainable production

· Gains a great amount of profit by having practiced fair trade

SWOT Analysis of the Company

Strengths

· The company is old in the UK market and is well-experienced

· Being a well-recognized brand grabs the attention of talented employees

· Provides a variety of products and thus has a greater area to make the employees grow

Weaknesses

· The sales have been declining due to more number of competitors

· The cost of the company has been higher since it incorporates manual processes

Opportunities

· Online store availability helps the company to compare its position with prevailing competitors

· Has the power to make use of market segmentation to gain greater profitability

Threats

· the higher number of competition enables the company to have less profit margin

· The growing cost of the company has made it lose its share in the UK retail market

Critical evaluation of the organisational design with the help of theories

The McKinsey model can be applied by the organisations' Marks and Spencer to be applied to various adverse situations when the organisational design is at stake. It helps to facilitate organisational change and implement a new strategy to address issues of the organisation. The seven areas of the organisation are classified into soft and hard areas.

  • Strategy: is an organised plan which is created by the firm to attain a sustainable competitive advantage. Strategy comprehends the mission and vision of the company. Marks and Spencer is a leading retail chain headquartered in the UK which offers good food and clothing to millions of customers across the globe.
  • Structure: It represents the process of divisions of business and units which have their own roles and functions. It is one of the visible items which can be altered at any point in time. Marks and Spencer follows a flat organisational structure and this structure helps the employees to make more effective decisions. The various job roles of the employees are structured and they perform the tasks with responsibility.
  • Systems: These are the daily process and procedures of the company and determine how the operations of the business are carried out within the firm. Managers should focus on these areas while incorporating organisational change (Razmi et al., 2020). The various departments of Mark and Spencer are Human Resources, finance, sales and supply chain management. The CEO of marks and Spencer monitors the team and the systems to gain a competitive advantage.

Figure: Mc Kinsey 7s model

(Source: Razmi et al., 2020)

  • Shared values: The core values shared by Marks and Spencer is to incorporate a positive working environment within the workplace so that the employees are happy and content. The values that the company takes into account are creativity, accountability, trust, and quality. The company fosters equality and diversity within the workplace (SIMIONIDES, 2022).
  • Style: Marks and spencer follow a strong leadership style that is transformational leadership which motivates the employees to enhance their productivity and motivation. The leaders motivate the followers to gain a competitive advantage and fulfil the organisational goals and objectives. They are the drivers of change and they help the company to flourish and gain profit in the challenging market. They put forward innovative ideas and thoughts to enhance their products and services.
  • Staff: Marks and Spencer have more than 76,000employees. They have a well-framed structure and they are highly skilled. The employees are provided with effective training and development to make them competent. The employees have their own job roles and responsibilities
  • Skills: the employees are recruited on the basis of their skills and talents. The employees of Mark and spencer are highly professional and they are competent enough. If the company performs well then, the ability of the employees is also high.

LO2 Analysing the necessity to create a motivated, knowledgeable group Identifying the various approaches and techniques which is used to create a diversified workforce

Human Resource is one of the most challenging jobs and they are responsible for developing a skilled workforce. They are accountable for motivating the employees to increase their confidence and enhance their productivity. Motivation is one of the most essential factors for any business organisation like Marks and Spencer but there may be some instances where the employees depict their domination in the workplace. If such instances occur the managers should apply their level of authority within the workplace. This will ensure that the leaders of the organisation will motivate the employees.

Use specific examples to critically analyse different approaches and techniques to motivation, human capital and knowledge management.

Maslow's motivational theory

Figure: Maslow's Hierarchy of Needs

(Source : Hale et al., 2019)

Maslow spotlights the physiological order and the various basic needs such as food, water, clothing and shelter which are required for individuals. From Maslow's Theory, it is understood that an employee of a business organisation desires a suitable salary to lead their life. The second need depicted in the structure is the environment of the work which is very necessary for an employee. The third and fourth need is the psychological needs required by any person (Hale et al., 2019). The company Marks and Spencer should promote a strong culture which would encourage each employee to respect one another and would fulfil the needs of belonging within them. It is so important for Marks and Spencer to view their incentive structure to motivate and inspire the employees. The incentive program, performance appraisals and promotions will meet the esteem needs and the company will see the growth of the business. The company can offer suitable positions to the employees to make them ensure that they possess the required skill set and adequate experience to meet their self-actualisation needs.

Figure : Herzberg Two Factor Theory

(Source : Alrawahi et al., 2020)

Herzberg's Two factors theory is another popular theory of motivation which is necessary to improve the performance of the employees within the workforce (Thant and Chang, 2021). There are two types of factors necessary to determine while increasing the motivation of the employees. The motivating factors are incentives, promotions, appraisal, training and development, and strong culture. The hygiene factors such as rules and regulations, salary structure, and relationships should be improved to enhance the level of motivation among the employees. Poor hygiene factors will bring dissatisfaction among the employees.

Human capital theory

The system of rewards and promotions within the organisation is a significant part while providing motivation to the individual. The reward system has both negative and positive effects on the motivation of employees. From an ethical point of view, rewards are tempting but it decreases the inspiration among the employees. But at the same time, it can enliven the motivation level of the employees. The effectiveness of the reward system is determined if Marks and Spencer increase the protection of the employees. The reward schemes increase productivity and the level of engagement among the employees. The organisation can foster a strong working environment and each department will hold on a healthy relationship with each other.

Talent Management Theory

The talent management theory can be better linked with the two-factor theory of Herzberg. The facts that can make the company motivate its employees and manage the talent depend on the given two factors. The content motivation theory and the process motivation theory are known to be the two factors on which M&S can have a competitive advantage. The fact that the talent management process and motivational process are interlinked must be taken into consideration by the company (SIMIONIDES, 2022). To manage talented employees the company needs to have the ability to make the knowledge and talented employees be satisfied by having used effective Human Capital theory which ensures that the employees of the company get to stay for a longer duration.

Analyzing the various approaches and techniques to motivation, human capital, and knowledge management.

Large businesses use various innovative methods to improve the motivation among the employees within the workforce. The two widely used models that are utilised by the firms are the Maslow Hierarchy of Needs and Herzberg Motivation Hygiene Factors. In this particular instance, it can be said if Marks and Spencer failed to obtain the aims and objectives the employees will lose confidence and there will be a low level of performance.

LO3 Apply contemporary knowledge and research to support emerging HR developments

Using the current knowledge to provide research for the departments of HR

In the challenging and competitive market, Human Resource management is facing enough challenges. There is a growing need among managers to think innovatively and upgrade their principles to cater to the needs of the company (Gerhart and Feng, 2021). The various challenges that contemporary HR faces are globalisation, employee satisfaction and retaining the best talent.

Globalisation has accelerated the level of operational efficiency of organisations. Companies are working at a more swift pace than ever. It has changed the scenario of the business and helped the companies to gain a competitive advantage. Businesses are now more connected and they can target the audience more easily with the help of emerging technology.

Dave Ulrich’s Model of HR Role

According to this model, there are four basic elements that must be followed by the HR of the company to ensure that they get to effectively manage the talented employees of the company. It splits the workforce into four separate parts each dealing with a separate area. The first part deals with a strategic partner; this element suggests the company grow with greater prospects by having partnered with well-known companies so that the talented employees get to have greater developmental opportunities. The second element states about administrative experts, suggests that the company must hire skilled and knowledgeable strategic experts to make sure that they get to have talented employees are tackled with care and are made effective use of that helps add productivity to the company (Boon et al., 2018). The third element is the change agent through which the company can make necessary changes that are required for organisational growth. The last and most important element of the model is the employee champion, this particular element supports the employees so the organisation to get their work done effectively by having to manage a great work-life balance as this way the talented employees further encourage the non-talented employees to gain technical skills and act as an asset for the company.

Assessing how HR developments are affecting the function of the HR

Employee Retention has been one of the main roles that HR are playing within the workforce. It is the responsibility of HR to provide adequate training and development and motivation to make them engaged (Trost, 2020). Employee engagement increases the employee retention rate. Motivating the staff is one of the primary roles that HR plays so that they could achieve their desired goals and objectives. The leaders should communicate effectively, and be transparent and flexible to address the employees' views and concerns.

Employee motivation is very necessary to make the employees engaged and engage their productivity. They feel; happier and more contented by the inspiration of the leaders.

The job roles and responsibilities have changed extensively due to the impact of technological innovation within the industry. The various shifts in technology have influenced the practices of HR. The HR has to possess enough skills and expertise to execute the tasks on both a national and international basis. There have been changes in technology which have shifted from offline recruitment to online recruitment (Boon et al., 2018). There has been a major leap in technology in the development of cloud computing and it has helped HR to store data more conveniently.

LO4: Evaluating the relationship between organisational design and change management

P 4. Evaluating how organisational design responded and adapts to change management

For embracing change in the business workplace Marks and Spencer incorporates various kinds of strategies to reduce the impact. At first, the organisation employed the change on a small scale. Feedback is received from internal and external shareholders for implementing change within the organisation. The decision-making process in association with Change management is emphasised by the main shareholders of Marks and Spencer. The changing environment of Marks and Spencer is involved with the framing of the organisation. The radical approach involves innovative methods and techniques for fostering change within the organisation.

Change management

Lewin's change management model is a useful tool for comprehending the necessity of change in the workplace. Marks & Spencer underwent a digital transformation so that the business could use the model to assess the success of the transition. Unfreezing, Change, and Refreezing are the three phases of this model (Hussain et al., 2018). To demonstrate the benefits of change management in the workplace, all Marks & Spencer workers must engage in communication with the workforce at the first stage. The opinions and issues raised by the staff are taken into consideration. At this particular point, the strategic mission and vision are stated. An efficient and agile change management strategy is implemented in the second stage. To paint a picture of change management, the company arranges workshops. The staff members have the authority to handle the change effectively. The personnel should be motivated in order for them to accept the organisational change. The third stage will see the business owner refreeze the altered state of the workplace once more. The change should be anchored once the change has been implemented for optimum results. The workers leave the phase of transition and move into the stabilisation phase.

To effectively meet the barriers that the company had to face in mitigating the change there are certain steps that the company can take into consideration. The company unlike in the past must first start by getting the organisation to be prepared so that it can make the change happen and implement it effectively one after another. The company also needs to craft a clear vision so that the change that is about to take place is planned with greater prospects. After the change is implemented successfully the company must make its HR team get to embed the changes with the organisational culture and put it into practice. Gradually as the changes start coming into effect the company must initiate a review and analysis process so that it can be aware of its probable outcome.

Evaluating the changes which impact the design of the organisation.

From the above discussion, it can be recognised that the changes that occurred in the organisational development are the strengths of Marks and Spencers. But one of the failures of Marks and Spencers is the human capital. There are a huge number of employees across the world. There are certain differences in the values and cultures of human capital. The business emphasises sustainable growth and performance. Each staff member has their own interest and they are involved in developing their career. There are certain employees who are greatly motivated by the inspiration given by their leaders. So the basic needs may not be the same. It has been noticed that each and every person's needs cannot be fulfilled by Marks and Spencers so they aimed to develop an effective strategy which would meet their needs and it is helpful for creating a sustainable performance and attaining a competitive advantage.

The critical discussion of the complex associated with the design of organisation and change management.

VUCA theory

VUCA theory can be used by organisations to successfully implement changes and bring in changing environment within the organisation. All four factors of VUCA comprise the factors that help an organisation to bring in volatility, uncertainty, complexity, and ambiguity. As the company welcomes changes within the organisation having used innovative ideas it is evident for the organisation that it gets to make itself ready to face the challenging situation that has been mentioned in the mentioned model. Having used this model the company will be able to identify potential surprises and determine the probable outcome that it is likely to face which might end up winning causing rapid change within the organisation.

The relationship between organisational design and change management is not simple but rather complicated. There are various barriers faced by Marks and Spencer while adopting change management. There are various barriers while framing the organisational design. It has been recognised. Self-efficacy perceptions and relationships with others are the barriers to change. The employees act as the barrier to change. They are afraid of the unknown and uncertainties of change and so they are reluctant to change. Restructuring the organisational design is an effective way to make the employees deeply motivated and develop a sustainable working environment. Change management is necessary for reframing organisational activities. Change management is driven by the human resource management of the workforce. Human resources are responsible for maintaining healthy relationships and sustainable performance (Hitka et al., 2019).

Conclusion

In light of the aforementioned discussion, it can be concluded that Marks and Spencer is one of the largest retail chains globally. The employees in the organisations are satisfied due to their effective organisational design and structure. The number of employees is increasing due to the various career opportunities provided to them. Customer preoccupation, operational dedication, excellence enthusiasm for creation, and long-term thinking are the main ideas that form the foundation of human resource management in this organisation. Effective motivation and leadership programs are the factors behind the sustainable performance of the firm.

References

Alrawahi, S., Sellgren, S.F., Altouby, S., Alwahaibi, N. and Brommels, M., 2020. The application of Herzberg's two-factor theory of motivation to job satisfaction in clinical laboratories in Omani hospitals. Heliyon, 6(9), p.e04829.

Boon, C., Eckardt, R., Lepak, D.P. and Boselie, P., 2018. Integrating strategic human capital and strategic human resource management. The International Journal of Human Resource Management, 29(1), pp.34-67.

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.

Hale, A.J., Ricotta, D.N., Freed, J., Smith, C.C. and Huang, G.C., 2019. Adapting Maslow's hierarchy of needs as a framework for resident wellness. Teaching and learning in medicine, 31(1), pp.109-118.

Hitka, M., Kuchar?íková, A., Štarcho?, P., Balážová, Ž., Luká?, M. and Stacho, Z., 2019. Knowledge and human capital as sustainable competitive advantage in human resource management. Sustainability, 11(18), p.4985.

Hussain, S.T., Lei, S., Akram, T., Haider, M.J., Hussain, S.H. and Ali, M., 2018. Kurt Lewin's change model: A critical review of the role of leadership and employee involvement in organizational change. Journal of Innovation & Knowledge, 3(3), pp.123-127.

M&S, 2022.WELCOME TO M&S. Available at :https://corporate.marksandspencer.com/

Razmi, J., Mehrvar, M. and Hassani, A., 2020. An assessment model of McKinsey 7s model-based framework for knowledge management maturity in agility promotion. Journal of Information & Knowledge Management, 19(04), p.2050036.

SIMIONIDES, E., 2022. Strategy within business environment redefining the strategy position in the mckinsey 7s model. Proche-Orient Études en management, 33(2), pp.25-38.

Stofkova, Z. and Sukalova, V., 2020. Sustainable development of human resources in globalization period. Sustainability, 12(18), p.7681.

Thant, Z.M. and Chang, Y., 2021. Determinants of public employee job satisfaction in Myanmar: Focus on Herzberg’s two factor theory. Public Organization Review, 21(1), pp.157-175.

Trost, A., 2020. Human Resources Strategies. Cham: Springer International Publishing.

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