A Case Study of Marks and Spencer (M&S) (Case Study Sample)

HRM and Organizational Change: A Case Study of Marks and Spencer (M&S)
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HRM and Organizational Change: A Case Study on Marks and Spencer (M&S)
Introduction
In the wake of growing competitive setting, organizations have been forced to turn their attention towards the value of Human resource investments as a primary source of competitive advantage. Even though business strategy or policy as a way of competition is a common discussion in the executive board, adopting a strategic tactic can be particularly valuable for staff roles within organizations. Because, staff are often required to rationalize their need for resources or funds and their contribution to the organization. This paper presents a detailed analysis of the human resource management (HRM) issues found in the case study on the organizational change of Marks and Spencer (M&S). The paper discusses the strategic HRM issues which the organization is faced with, in deciding to adopt structural changes and create business units, and the degree to which the company needs to renovate its core business as well as HRM. The author also put emphasis on of the significance of HRM approaches and styles for medium-term business tactics, being incorporated into the overall organizational strategy of M&S.
Strategic HRM Issues for M&S’s Organizational Change
The conventional astuteness in the literature on organizational change is that the participation of employees is critical to successful change. Particularly, in circumstances that require cultural and attitudinal change. Hence, any rapid organizational alterations can only be successful if the organization emphasize on structural change as reverse to cultural transformation. With the case of M&S is an incident of rapid organizational change that was founded on a vision levied on the firm in a directive manner (Top-down), by the CEO and the management (Mellahi, Jackson, & Sparks, 2002). However, this change could potentially result in an extensive change of behaviors and attitudes in the organization. The transformation in the middle of the financial year was a risky accomplishment and would result in a big confusion amongst the staff and the imposition of a high pressure on employee performance (Caldwell, 2002). The employees experienced it as an emergent transformation that they had to adjust to and develop new ways of adulate organizational structure and new methods of operations under the new business units.
In M&S’s case, it is evident that the organization intentionally set out to transform the rationale on which it competed by transforming into a service-based organization. One of the standard discernments for prosperous organizations is that they must know their own weaknesses and strengths, the needs of their customers and the nature of their business environment. Therefore, by introducing new business entities, M&S intended to create them entirely profit-accountable, emphasizing on the performance of each department. This would empower M&S to effectually control their business operations and indicate where the developments need to be applied. By this new method of business practices, the organization had to closely take into consideration HRM strategic issues.
One of the reasons behind the planned change is to adjust the behaviors and attitudes of the staff. Individuals are being required to review their insolences towards how work is executed and their insolences to their external colleagues. Irrespective of the form it assumes, if it has to be effective, there are three individual-related activities, which are required to be executed: creating an inclination to change; concerning individuals, and supporting the momentum (Burnes, 2004; Doorewaard &Benschop, 2003). In seeking to create an inclination and a readiness for transformation, M&S need to be acknowledge that emphasizing the positive factors of the planned transformation may have much an adverse impact on the performance of the organization. Thus, M&S have to ensure that individuals are fully cognizant of the pressure imposed by such transformations during the trading period, providing them with a continuous response on the performance and expanses of activities within the organization, and understanding the concerns and fears of employees. Regular communication and participation would have to be present, offering explanations and resources for change. Affiliated line managers would have to provide all support needed to the agents of change, develop new skills and competence and emphasize desired behaviors, such as bonus or better pay (Kelliher & Perrett, 2001).
The new modifications to adulate organizational structure and business entities, are likely to escalate employee responsibility and empowerment, amassing more of direct customer contacts and creating new knowledge. Contemporary theories propose better flexible approaches, accepting change in the power relationships structure, where they specialize in their field of responsibilities (Johnson & Scholes, 2002; Francis, 2003). In order to become flexible, M&S made the decision to apply a horizontal approach to its style of management organization. Through a vibrant leadership role of appointed heads of business units, the level of centralization will be elevated only to a certain extent, not to undermine the flexibility and adaptability of the employees. Coordination will required to be in the form of a strong structured hierarchy and labor division. In order to encourage employee satisfaction and job enrichment, M&S might create one or more explicit coordinating roles. Departmental committees, liaisons, project groups and task forces are examples of probable structural coordinating instruments. Most contemporary theorists consent that in order attain success, the business culture should be change-oriented. Therefore, M&S should adapt to differentiating internal work force and changing environments and internal workforce diversity.
HRM Approaches for M&S’s Medium Term Performance
HRM interpretation is founded on incorporating either a hard situational contingent approach or soft developmental humanist approach (Liao, 2005). In the soft developmental method, effective HRM is understood necessarily to include an emphasis on nurturing employee commitment, development and motivation. This approach acknowledges the significance of HRM to the business goals, while reflecting the management’s efforts to create a work setting that focuses on employee induction and development, through various practices such as participation, communication and training, and the prominence of having flexible, committed and innovative staff member who are valued resources.
On the other hand, the hard approach to HRM is strictly aligned to strategic HRM (Liao, 2005). In such instances, HRM is tightly connected to the business strategy. Consequently, the hard situational approach considers staff as a resource that can be used dispassionately and in an officially rational way. In essence, the effectiveness HRM can be more dependent on minimization procedures rather than upon major HR investment. The hard contingency-based approach to HRM is regularly viewed as an indispensable component of a cost minimization strategy. Nonetheless, with M&S, the soft developmental humanist approach for medium-term success is required in order to successfully implement the proposed changes. Since, all people in the organization need to cooperate and realize the importance of transformation.
For M&S, the commitment of the appointed heads of the business entities and senior management, to HRM is crucial to the effective operation of the organization. It would be indispensable to possess the skills and knowledge required to implement a reliable HRM program within the organization. In order to attain a medium-term success, M&S should consider a number of HRM approaches. First, the management should have a clear understanding and commitment to the necessary change in order to prevent any operational barriers and conflicts. An effective and vibrant leadership will have to occur and reinforced by M&S’s senior management (Campbell, & Abdul Rahman, 2010). It is also important to take into consideration teamwork when making decisions. All employees have to be involved and integrated into the management of the change process.
M&S will also have to examine the culture of communication in order to become a more service-oriented firm. This move will allow individuals to take advantage of a good workforce leading to the success and progress of the organization. Mayo’s theory of motivation also puts forward that effective communication is an indispensable component of organizational changes and an operational basis of modern organizations (Pichault & Schienaers, 2003). Therefore, M&S has to put emphasize greatly on enhancing interpersonal communication skills of each member of the organization. McGregor’s theory also suggests that employees tend to be inspired by self-esteem and achievement goals (Pichault & Schienaers, 2003). By leading individuals and rewarding employees, M&S would create a good management for a medium term success. Employee participation and involvement are likely to lead to a sense of ownership and responsibility, and, hence, loyalty and organizational commitment (Pichault & Schienaers, 2003). The beliefs and norms that improve the ability of the organization to receive, analyze, and interpret signals from the external setting into internal organizational and behavioral change will foster its growth, survival and development.
According Huang (2001), it might also be important to clarify the approach throughout the hierarchy to each employee. An operational two-way communication and inf...