Wednesday, April 3, 2019

HM Leadership Style An Analysis

HM Leadership Style An AnalysisHennes and Mauritz (H and M) was established in Vasteras, Sweden in 1947 by Erling Persson. H and M offers dash and quality at the lift out price and offers fashion for women, men, teenagers and children. The collections ar created centr eachy by around snow in-house goalers together with buyers and pattern makers. HM besides sells own-brand cosmetics, accessories and footwear. The stash aways atomic number 18 refreshed deformaday with upstart fashion items. In Sweden, Norway, Denmark, Finland, the Netherlands, Ger many a nonher(prenominal) and Austria HM offers fashion by net in go in and catalogue gross revenue. HM does non own any factories, yet kinda buys its size adequate to(p)s from around 700 free-lance suppliers, primarily in Asia and Europe. HM has close 16 production offices around the world, principal(prenominal)ly in Asia and Europe. The turnover in 2009 was SEK 118,697 million. HM primarily operates in Europe, North A merica and Asia, and harbor around 2,000 terminuss mete out over in 37 countries. The teleph unmatchabler is headquartered in Stockholm, Sweden and employs approximately 68,000 wad on a full sequence basis.HMs schema is to offer fashion and quality at the best price. HMs annual refresheds report (AR1 2008) emphasizes that quality relates to twain HMs products exceeding customer expectations, and excessively customers being satisfied with the ships ac friendship itself. The report states Taking state for how our operations affect peck and the purlieu is also an substantial prerequi prescribe for HMs continued profitability and return.HM is driven by strong determine much(prenominal) as commercial mindset, simplicity, constant improvement, be consciousness and entrepreneurship (AR1 2008, p.13).Long-term strategic goals of HMIn the Annual distinguish (AR1 2008, p.7), HM, CEO Rolf Ericsson states that the long term goal is to Make fashion ready(prenominal) to eitherone, give the customer a fashion reckon that strengthens HM brand. They also state the goal of a 10-15% append in the number of stores ein truth yr, which would be funded inseparablely (AR1 2008, p.13). The aim to increase sales in vivacious stores, while foc apply on quality and continued profitability.How does HM inadequacy to get in that respect?To execute its strategy HM focuses on 3 main aspects of its fear concept (AR1 2008) Price, which is reckonled by limiting the number of middlemen, purchase in large volumes, relying on its in-depth, extensive expertise at bottom the design, fashion, and framework industries, buying the function merchandise from the right production markets, being cost-conscious at all levels and maintaining effective distri howeverion procedures (Job advertisement for Buyer on the c argoners site at). Design Products be designed in-house and production is completely outsourced (AR1 2009, p.11). Quality rally emphasis on quality with ex tensive testing and ensuring least milieu damage (AR1 2009). Merger and Acquisitions Acquisitions (like FaBric Scandinavian, the Swedish design come with), and Design Collaborations (collaboration with Mathew Williamson) atomic number 18 adopted (HM press at).In 2009, HM plans to open 225 spick-and-span stores and cypher 6,000 to 7,000 employees.SWOT AnalysisStrengths- One of the main reasons for HMs popularity is because of its trendy items for such a low price. This store offers quality clothes at de break upitionment store prices which is rargon for many retailers today. Strength for this company is their boilers suit deliin truth time. It lonesome(prenominal) takes 12 weeks to get an item from the design to its retail state which is very impressive for a world broad, low price retailer. The sightly for retailers is usually somewhat 6 months which is double the time that HM uses. They also get away to preserve the stores brands fresh with guest designers coming in fo r divers(prenominal) get outs in the store. near of these have been Madonna and Robert Cavalli. They also keep the prices affordable by using very few middlemen and buy large volumes cost consciously. But with these strengths come weaknesses as rise up.Weaknesses- One of the strengths I mentioned above can also be a weakness for this company. Buying large volumes delegacy that thither is no real guarantee that all the items will be sell. This means that theyre already low prices may have to be lowered in order to make room for the next collection. This means that if these items are non sold in time, then the company will have to pay much for extra storage for the items not sold. Another weakness could be its wide range of customers this brand fork ups for. The range is for men between the ages of 18-45. This is not including the childrens garment and gestation flow rate wear and the huge wide range of different styles they provide depending on what store you go into. This can be difficult to mold especially in a vertical company because t present is no real focus on a target customer and gets more(prenominal) than expensive to provide machinery for all these different groups of nation. But with these huge leaps there are many opportunities for this company flourish.Opportunities- One hefty fortune would be for HM is to have matching clothes for mothers and children. I think this would be a good opportunity because there are also maternity wear and childrens clothes and I think that it would appeal to a big crowd. They would like to dress their children like them in the comparable styles.Threats- since HM is a brand that is very unique it has very few threats as ut nearly as retail chains go. One of these stores would have to be the clothing chain called ZARA. This is a store that also has reasonablely reasonable prices moreover is around famous for its rapid delivery time. It only takes two weeks for the design to make it into retail s tores. Even with HMs time which is 50% stiffer than most retailers, cannot even compete with that time. The second threat to HM is Gap honorable because of their quality at reasonable prices and their wide range of people they slide by as well with their vertical company as well. There is a market for babies as well as men and women gentle mental imageryHMs corporate strategy is to expand on a go on basis, and as a consequence, employee strength also increases continuously. For 2009, HMs Annual report (AR1 2008), forecasts the addition of 6000 to 7000 upstart stage business sector enterprises. Their faculty is spread across approximately 37 countries and come from different cultural back curtilage. Their strategy is to set up locally whenever a new-made store opens (AR1 2008).The main area for which HM may have clearly furnish policies are listed below. The policy areas are ground on the categorization by Armstrong (Armstrong (2006), pp.148-156) Overall Policy and Val ues HMs website heads that their objective is to be a good employer, including in those countries whose laws and regulations fall short of their own requirements. To quote the chieftain of HR In order to meet peoples expectations of HM as an attractive employer, the company develops world-wide guide lines on diversity, equal rights and against discrimination (AR1 2008, p.34).At HM, HR activities are guided by a fundamental respect for the one-on-one (AR1 2008). This applies to every(prenominal) aspect from decent wages, functional hours and freedom of association to the opportunity for harvest and developing within the company. This also evidences that the company has specific policies for areas such as Equal opportunity, Managing diversity, Employee development, Health and Safety, among others. Employee Relations and Voice HM has an open admission policy granting all employees the right and the opportunity to discuss any work- cerebrate unfreeze demandly with counsell ing (AR1 2008). They also support their employees right and ability to guide and to decide who should represent them in the workplace (AR1 2008). HM has positive experience of open and constructive talks with the trade unions and they welcome such dealing wherever they operate. They consider such cooperation to be natural if they are to make even better. Examples of collaboration on staffing issues include their obligement with UNI (Union Network International) and the work they do with the EWC (European Works Council), (AR1, 2008). Promotion To quote Mr. Pr Darj, Head of HR at HM . Internal recruitment and job rotary motion enable the company to grow quickly (AR1, 2008). This statement indicates that HM has policies related to promotion. Employee using To quote Mr. Pr Darj, Head of HR at HM . I signalize employees, if you do not grow incomplete will HM (AR1, 2008). This indicates that policies exist for this area. Rewards HM focuses on rewarding people by providing more op portunities and responsibilities, and not by with(predicate) a promotions and job titles (AR1, 2008). This indicates that HM has policies for this area.Other areas with clearly defined policies index exist, but these are not evident from available sources.ORGANISATIONAL BEHAVIOURHM operates in 37 countries and has a work force belong to these 37 countries because they recruit locally (AR1 2008, p.34). HMs espoused values are stated to be the foundation for a multinational company in a multi cultural market where great respect is paying(a) to the individual.Interviews with the CEO and Head of HR in the annual report indicate a participative finis where everyone is made to feel like a part of the companys succeeder (AR1 2008). To quote Par Darj,(Head of HR) The secern words for continual addition are responsibility and commitment. We have perpetrate employees and we are prepared to legate responsibility at every level, (AR1 2008, p.34). The company encourages what it calls t he The HM spirit employees perpetrate to their work and prepared to take on new contends, common sense, austere work and police squad spirit are encouraged. All their operations are typified by an native respect for the individual including reasonable wages, reasonable hours, and opportunity to grow, and develop within the company (AR1 2008, p.34). Quotes from employees about the governingal climate indicate that the values above are values in use. These quotes can be found on the Careers site at.Based on this data, the prevalent enculturation searchs to be primarily task oriented (E H Schein 1985). Such a culture can support HMs HR related strategies and policies (like Open door, job rotation, freedom of association etc.). They also have a operative daze on HR aspects recruitment needs to focus on determination candidates with the right fit to the organisational culture irrespective of local culture, facilitating expatriate of experienced staff when new stores are u ndecided, facilitating rewards schemes aligned with organizational culture, change HRD that can empower employees to take on new challenges and work in new teams. needal issues at HM. HM is a flat organization, which might give the impression that its hard to move up within HM, but actually, the opposite is stated to be true on the careers site(at ). HM as an organization is constantly evolving and is growing fast, thus providing more opportunities to its employees. Employees are move by providing new challenges in some other department, another role or, another country. HM encourages employees to try many different roles within their organization (AR1 2008 and AR2 2008).HM recruitment advertisements indicate possibilities like working abroad, furthering education and accomplishment new things. Their websites promotes that many in management today, actually started on the computer memory floor. HM also provides a comprehensive benefits package. HM fulfils employee aspirations by providing opportunities to take more responsibilities. (Ref careers site at )To quote the Head of HRM at HM, By the same token, if titles and pay structures are what motivate the employee, and then were most definitely not the ideal company for you. As we said at the beginning a perfect relationship is all about balance and mutual understanding(AR1 2008, p.34).The information above, together with information about HMs HR strategies and policies, resonates with Herzbergs 2 factor case of motivation. Advancement, responsibility and satisfaction gained from the work itself are main motivators, while benefits, fair treatment etc. prevent dissatisfaction (Herzberg and Snyderman, 1957).The main motivational issue and challenge at HM could be nurturing and maintaining a balanced relationship with employees. billet managers may need good awareness of their reportees aspirations, to enable motivation by providing responsibilities and opportunities aligned to the employees perception of growth. The strategy to motivate using job-rotation (across sites, roles, functions) and promoting learning could be an HRD challenge, especially considering the pace of growth. A potential issue could arise during periods of easily growth, since employees might be frustrated by the lack of opportunities. This could manifest locally too, since travelling abroad might not be feasible for many employees.Individual development versus organisational developmentHMs annual report (AR1 2008) and website (Careers website), emphasize that working at HM is about commitment, both from the individual and the organization. HMs Head of HR emphasizes that organization can grow only if the individuals grow (AR1 2008, p.34). HM drug abuse make a career plans for its employees, but will provide them with tools to go as far as they possibly can on their own.This indicates that at HM, individuals are expected to drive their own development, within the framework that the organization provides. The or ganization appears to facilitate and promote cross-functional and cross-boundary development opportunities for individuals, which is aligned with its own development and growth strategies.To quote Pr Darj, (Head of HR), We have committed employees and we are prepared to delegate responsibility at every level. I tell employees, if you do not grow neither will HM, (AR1 2008 p.34). This indicates that HM treats individual development and organizational development as tightly linked areas. option AND RECRUITMENTHM values personal qualities much more than bollock qualifications. Pr Darj, Head of HR states that at HM, great grades and all the university credits in the world are no guarantee of a job or a fast-track career. They look for, more than anything, people with the right character. HMs belief is that people can gather clevernesss as they go along, but personality and attitude cant be taught (AR1 2008, p.34). Since HM is a fast company and the tempo is always lofty, they need em ployees who are self-driven and capable of direct communication well (SR 2008). Hence HM recruits people who like responsibility and ending-making. Information from the careers site (at ), and from interviewed candidates ( Ref Int1, Int2 and Int3) indicates that a love of fashion have with a focus on sales is perceived as an advantage. These appear to form the basis for HMs recruitment requirements (and person specifications), programmes and drive its survival lickes.Feedback from candidates indicates that the selection interview nuzzle is usually face to face and mostly integrated situational base (Armstrong (2006), p.447), covering customer service and fashion trends. This is followed by gore interviews and aptitude/work sample tests (as defined by Armstrong (2006), p.447). It appears that candidates are filtered at each stage of the process (Int1, Int2, and Int3).Sources of candidatesInternal Recruitment This is their first excerption for a new job opening. External recru itment is considered only if no internal options are available.External recruitment Potential recruits (minimum age is 16 years) are encouraged to apply directly to the local store, from the careers website. HM does not offer summer jobs or work experience placements. Buying is centralise in Stockholm, and so is the recruitment for the same.HM recruits locally to its new stores (AR1 2008, p.34).HUMAN RESOURCE DEVELOPMENTOrganisational learning and management development issues at HM.The average numbers of training days per employee in 2008 are, 10 for new sales staff, 1 for existing sales staff and 5 for existing management positions. HM usually conducts all training in-house (classroom, stores and one to one), written and produced by HM staff. External training has been considered for some areas like buying. E-learning has also been initiated for a few subjects (SR 2008).However, indications are that HM today focuses more on on-the-job, just- in time, hands on learning. For exampl e, when they exposed their first HM store in Japan, locally recruited employees were sent to Norway and Germany for gaining experience in existing operations. Also, during the sales intensive opening phase of a new store, colleagues from other countries are brought in temporarily (SR 2008). To quote the head of HR at HM,As an employee of HM, you can be an entrepreneur and you will be given responsibility early on. HM claims to provide structured opportunities for on-the-job, hands on and work place based training. (AR1 2008 and Careers site).To summarize, it appears that HM focuses on experiential Self-directed learning today ( as defined by Armstrong (2006), p.557) , however, they are moving towards incorporating a blended cost with simulation and e-learning included (Armstrong (2006), 570-582)REWARD MANAGEMENTThe reward management process of HM and its potential influence on human resource management.HMs careers website (at )indicates that the company offers a comprehensive bene fits package, which includes staff discounts, incentive bonuses, company sick pay, cloak-and-dagger health care a pension scheme. Share options are not provided. The head of HR, indicates that they do not consider titles and pay structures as motivational tools. Opportunities to fulfill an employees aspirations by wanting more responsibility, as a means of getting on with in the organization quickly, are provided (AR1 2008, p.34). Apart from these, as stated by different categories of employees on the careers site and the annual report, the main reward is the job satisfaction they derive.Thus, HM appears to provide a aggregate reward framework, with greater emphasis on relational rewards even though transactional rewards are provided (Armstrong (2006), pp.639-631). HMs reward management is consistent with other HR areas, including organizational culture, recruitment/selection etc. and is also in sync with the overall HR strategy of open doors, job rotation etc. which is essential to fulfill HMs strategy of fast growth.HUMAN RESOURCE MANAGEMENTS ROLE IN HMS SUCCESS, AN ANALYSIS.The previous sections illustrate the various HRM practices at HM. This section details how these practices add to the success of HM as an organization, in the context of the SHRM course literature. These are categorized under the various aspects of SHRM belowLinking People with strategic business needsH M today is a hugely triple-crown multinational company. The success of HM is primarily based on the business model of entire design being done internally and centrally, manufacturing all in all outsourced, but quality ensured and local retailing with hired places, local staff and local shop managers empowered to take decisions. The success, business growth and intricacy plans were possible because HM have formatted their HR strategy in line with the corporate strategy. As evident from their Annual Report (Ar1 2008), when they expand into new markets they do not lose sight of their n itty-gritty values. They have succeeded to manage all components of HRM effectively to ensure that core values are upheld in all parts, regardless of country and cultural differences. Their strategic and coherent approach in recognizing that the organizations most valued assets are the people working there is evident from the statement issued by their CEO, It is our employees that make the corporate strategy possible. Our committed employees are essential to HMs ability to grow and continue to be extremely profitable. At HM we share the same goals at the same time as we minimize bureaucracy and focus on the individual. We delegate a lot of responsibility to local markets, stores and individual people and we encourage people to take their own initiatives at all levels(AR1 2008). These are in concurrence with Armstrongs definition of HRM (Armstrong (2006), p.3).The various elements of HR strategy, (Armstrong (2006), pp.123-146), like improving setance through local recruitment, in house training, and total reward, job rotation (external skill base), increasing commitment (selection based on personality, learning experience, rewards based on core values etc. ) have been built in to the HR Policy and Procedures, and are seen to be practiced, thus proving that the business success of the company has been supported effectively by the HR linkages.Rewards ManagementHM has utilise the concept of Total Reward Management very successfully. Apart from the fiscal compensation, job satisfaction as a reward has motivated the employees to perform and contribute their maximum to ensure customer satisfaction and business success through increased sales. This is evident in the statements by the employees from various levels on the Careers site at . As a stated policy, there is more emphasis on personality development through delegated authority in the decision making process and greater autonomy to local elements of the organizational structure. Being a multinational company with employees of different cultures, this decentralized decision making process and say-so of employees have proven direct electrical shock on the success of HM (AR1 2008) versatile techniques associated with Intrinsic Motivation (Armstrong (2006), p.254) have been given more enormousness and priority than the extrinsic aspects. Work environment related parameters like leadership, employee voice, recognition, contactment etc. have been built in to the HR policy and practiced to leverage the faultfinding business goals of continuing growth and increased profitability.Performance ManagementHM has adopted a strategic and integrated approach to achieve organizational success through improved carrying out of its employees (Armstrong (2006), p.115). HM employees have been told that the growth of the employees and the organization are closely linked (AR1 2008, p.34) .The practice of Shop Managers going through a process of reviewing that days business with their subordinates on a daily basis, is part of the performance management activity. This underlines the fact that HM has recognized the importance of such a practice, and built in that process by which managers and their subordinates work together, agree on what needs to be done and how it is done (Armstrong (2006), pp.499-513). They are able to plan, prioritize and develop their sales team in a customer-focused environment (AR1 2008, pp.31-36 and Careers Site). At HM a shop manager is in press of the daily pasturening of the store it is like running their own business (AR1 2008, p.34). The HR strategy of delegating authority for managing the shops activities is a key factor contributing to the success of the organization.Managing Diversity in teams and groupsHM operates in 33 countries and is expanding its business to open new shops in countries where they are currently not present. By their HR policy and procedures, when a new shop is opened the staff are recruited locally. They also have the practic e of job rotation and movement of employees from one location to another based on internal recruitment (promotions). This brings together people of different cultural back grounds together in the same team, and successfully managing such a team is crucial to the success of the organization. The HR strategy is, not to have very rigid procedures, and the corporate culture of respect to the individual. As stated in their Annual Report (AR1 2008), the HR strategy ensure the following1. In order to meet peoples expectations of HM as an attractive employer, company develops globular guide lines on diversity, equal rights and against discrimination.2. HMs objective is to be a good employer, including in those countries whose laws and regulations fall short of their own requirements. The whole of their activity is mold by a fundamental respect for the individual. This applies to every aspect from fair wages, working hours and freedom of association to the opportunity for growth and develo pment within the company (AR1, 2008).3. HM has positive experience of open and constructive dialogue with the trade unions and they welcome such relations wherever they operate. They consider that cooperation is essential if they are to become even better. Examples of collaboration on staffing issues include their engagement with UNI (Union Network International) and the work they do with the EWC (European Works Council). (SR (2008))HMs success in instruction execution their strategy of continuous international growth and expansion, while maintaining its Swedish organizational culture, indicates that its HR practices have contributed to the successful management of diversity in teams and groups.Planning, Recruitment and SelectionThe HR strategy, which is closely aligned with the organizational strategy to achieve continuing growth and profitability, envisages recruitment of people every year to run the new stores scheduled to be opened. For example, as per their Annual report (AR1 2008), about 6000 7000 employees are to be recruited during this financial year, to meet the requirements of the 225 new stores being opened worldwide. The planning and recruitment is based on the HR policy to recruit locally when a new store is opened (Armstrong (2006), pp.363-388). Future employees are evaluated and chosen (Armstrong (2006), pp.409-471) according to certain criteria practiced by HM and based on the companys culture.They look for people with personality who can perform well within the culture, growth and motivational framework provided at HM. To quote Pr Darj, Head of HR, At HM, great grades and all the university credits in the world are no guarantee of a job or a fast-track career. Of course, we do welcome those things, but what we are really smell for, more than anything, is people with the right personality. This is based on the belief that one can always gather skills as you go along, but personality and attitude cant be taught. Either youve got it or you d ont. One of the most important things we look for is drive. (AR1 2008, p.5-34).Organisational BehaviourAt HM, a lot of importance is given to personality development and for opportunity for the employees to grow within the organization. Various practices empowering the employees like a Shop Manger being allowed to take autarkic decisions, and managing the business like an entrepreneur etc. are designed to increase employee loyalty and commitment to the organization and are great motivators (Armstrong (2006), pp.239-316 and AR1 2008). The HR strategy for employee motivation total reward with emphasis on Intrinsic Motivation (Armstrong (2006), p.254), has been proven, to be directly related to forming the success of the organization. All their operations are typified by an essential respect for the individual including reasonable wages, reasonable hours, opportunity to grow and develop within the company (AR1, 2008) The prevailing organizational culture at HM encourages team work, su pports effective leadership and provides adequate growth opportunity for employees. These HR strategic initiatives in turn make significant contributions to the organizational goals of continuing growth and profitability.Human Resource DevelopmentEnsuring learnedness and Development opportunities for its employees is an integral part of the HR strategy at HM (AR1 2008), and these essential ingredients contribute significantly to the success of the organization. Human Resource Development is a continuing process at H&M the new recruits being sent to already existing shops for gaining valuable experience, experienced employees being brought to new shops to support the new local recruits during the intensive opening period activity etc. This is critical to the process of organizational learning and helps them rise the learning curve faster (Armstrong (2006), p.554). Keeping employees highly motivated is essential to the success of HM, due to the nature of its business of dealing in h igh fashion consumer goods. The various concepts that can be adopted to increase performance (like job satisfaction as a reward management tool) are very effectively employed and as the employees themselves state, Im happy to be here and every day is a challenge (Careers site at ). presentiment Theory, which states that if individuals feel that the outcome of learning is likely to benefit them, they will be more inclined to prove it (Armstrong (2006), p.556) has been proven on the shop floors of HM.The HR practice of giving responsibility to the employees early on in their career, treating them as entrepreneurs rather than just employees, (AR1 2008, p.34) is a definite and positive step towards their development. Considering the employees as capable of shaping its results and improving it in big and small ways, is key to HMs approach to learning and development.International HRMHM is a multinational company with operations in 33 countries and new countries being added every year as the organization grows. The strategy of local recruitment when a new shop opens leads to the situation of a collective work force belonging to different nationalities adjusting to a common organizational culture. This is the big HR challenge, which the company has very successfully overcome. The HR strategy of delegation of authority and empowerment of employees has played a very important role in this success. The shop manager runs the business as an entrepreneur and is authorized to take independent decisions with in the overall guide lines.Think globally and act locally, Laurent (1986) (from Armstrong (2006), p.104), has been sufficient as the mantra for success at HM. They have identified the core and non core activities (design and manufacturing being core, done centrally, and distribution noncore, done locally) , they have built global brand equity while honoring local customs, they share their learning and create new knowledge.ConclusionTo conclude, HM has balanced the need s of coordination, control and autonomy and maintained the appropriate balance between them. These are critical to the success of any multinational company ( Bartlett Ghosal (1991) from Armstrong (2006), p.104) .-

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