Human Resource Management Models of H&M Clothing Company, UK Essay

Human Resource Management Models of H&M Clothing Company, UK - Essay Example H&M pays close attention to its corporate social responsibility by instituting self-regulating mechanisms that monitor and ensure that the company adheres to set laws and ethical standards of the company. H&M has a long established tradition of a constant long-term growth strategy of opening new stores. This is done through acquiring market share from competitors, and increasing sales, profits and popularity. H&M’s organisational functional strategy is based on research and development that enables the company versatile and diverse making its products and operations unique setting it apart from its competitors. There are various long-term plans that have been instituted by H&M that are meant to improve business operations. These include being vigilant in controling and elimination of intermediaries, bulk buying in order to accrue from economies of scale. Price controls are implemented to protect customers from unscrupulous traders and expertise within the design teams is empha sized to guarantee quality. Mergers and acquisitions are another strategy that is used by H&M as illustrated by the acquisition of FaBric Scandinavian (H&M Annual Report, 2012 p10). H&M is broadening its products range by investing in information technology launching online platforms for its products according to the company’s 2012 annual report (p34). The company’s open-door policy encourages employee and customer input in developing and improving its operations. Reward (Luliia Stakhiva) The H&M Company strives to ensure that it maintains a conducive and suitable environment for its workers and customers. H&M implements reward strategies that give career advancement opportunities in a dynamic and global company, and avail career milestones for motivation. There are training and skill development programs meant to enhance employee capabilities, and the implementation of employee rotation. This gives employees the opportunity to work in diverse fields in which they gain varied experience and skill. In 2010, H&M introduced an incentives program that was meant to encourage and gain employee loyalty, long-term support and commitment to the company’s policies. This avails information and valuable knowledge to workers making H&M an attractive company and place for employees. Reward systems and policies include monetary and non-monetary aspects that are meant to ensure employee loyalty, commitment and support for the company’s policies and goals. According to Beaumont (1993 np), rewards systems have potentially powerful impacts on an organisation’s performance at any level of production and business operations. Rewards systems primary goal is to motivate employees, which affects their behaviour and attitudes to their job and ultimately their job performance capabilities. Sillitoe (2010 np) postulates that H&M’s reward system will benefit the company’s employees and increase its attractiveness and credibility in the job market, which will make it to acquired relevant skilled personnel more easily. Fair remuneration and working hours are another incentive that is included in the company’s reward strategy, and the formation of unions to encourage career growth. H&M