Managing Technological Change Strategic Management of Human Resource

Question: Discuss about the Managing technological change for Strategic Management of Human Resource? Answer: Introduction Core department of any organization is named as Human Resource Department. Human Resource Department is one of the niches which are required for any organization, no matter if that is a small or large organization. The strategic development of organization depends on the Human Resource department. This essay is based on the Mark and Spencers strategic human resource department. They treat as a public limited company, and they are based on retailing industry. They have their other activities like LSE: MKS, OTCQX, and MAKSY. The organization had founded in the year of 1884. The first step of the organization was a single market stall and now they are the market leader in the UK and as well as in the world. They have their international market and over 33 million customers in their organization. They have 852 UK stores and their e-commerce business. The chairman of the organization is Robert Swannell and the key stakeholders of the organizations are Marc Bolland, Helen Weir and Martha Lane Fox who are directing the organization in every steps. Their revenue of 2015- 16 is 10.300 billion Euro. Their operating income states as 762.5 million Euro. Their profit of 2015 is 481.7 million Euro. internal and external environment of Mark and Spencer PESTEL analysis The PEST analysis of the organization is: Figure: 1 Political Factors: The UK government set some specific regulation for different types of companies including health and safety British Standards such as preparation for hazard identification, risk assessment and risk control (Woods, 2007). If any company does not obey the regulation or stands for theses regulation, the government charges fine against them and even some cases they have been forced to close down the business. On the other hand, Marks Spencer did not follow the British standards and they were charged for avoiding the health and safety regulation after the door fell on an employee. George Blair was one of the employees in Marks Spencer injured after a warehouse door in their store situated at Braehead. In addition, near Gasgow left on loose fixture which was left hanging. Moreover, the management of Marks and Spencer ignored the request of repairing the door and allowed the door to fall again. Apart from that the management of marks Spencer did not feel guilty for this accident. However , there is still no results show of this trial. According to the BBC News 30th January, 2006, the Marks Spencer would be the first major retailer which introduced the fair-trade route for both clothing and food. The fair-trade policy includes the cut salt and fat in Marks Spencer food, animal welfare protection and recycled packaging (Borner, Bodmer and Kobler, 2004). Economic Factors: Economical force is a great concern for any organization no matter if it is small or large (StuÃÅ'ˆrchler, 2009). The price of products and customer behavior both build a solid impact on the economic value of the organizations directly. Thus, the economy of the organization also depends on the market share value such like the impact of stock exchange.The UK government has given a huge subsidy to recover the loss of retail industry(Jellinek, 2000). The economic recession of 2009 set the nation's economy battling for survival however it has managed to get back on its feet once more. The outlook of current economic session is very uncertain and it creates an effective impact on the retail sales(Warner, 2010). Due to the huge economic lose many people do not have sufficient money to spend on luxury items such as expensive food, designing cloths etc. Marks and Spencer had to face lose and forced to close a numbers of stores. On the other hand, over 70,000 staffs of Marks and Spencer were become unemployed and they made job cuts of 2%. Apart from that, in order to the impact of recession they provided 20% discounts to attract more customers. Social Factors: In few last decades, the society has changed very much. According to Guardian, the chief executive officer of Marks and Spencer wanted to extend the brand value of the company through various steps, such as he planned to sell the food online to convert into multi-channel retailer. In order to compete with ASDA he took that kind of decision. On the basis of social class and other demographics, ASDA and Marks and Spencer belong from different markets. With the help latest fashion trends the current cheap clothing industry supermarkets was increasing rapidly in few years. Marks and Spencer have their clothing ranges up to date with the latest trends. On the other hand, customer purchase decision depends on some factors which cannot controlled by marketers. These factors are social, psychological, personal and cultural factors. Technological Factors: Nowadays, technology is very much improved in the world and as well as in the UK also (Bates, 2000). The Mark and Spencer improved their technology to lead the retailer industry. Technology is playing effective role in the organization. In this case, the advertisement through technology is also very effective to meet the customers' requirements. Appropriate use of technology can lead towards Marks and Spencer to success in retailer field. Major companies spend lots of amount for the advertisement to create brand awareness. Marks and Spencer covers all areas with their advertising campaign. Moreover, they have user friendly website with updated new Marks and Spencer brands. Porters 5 Forces Figure: 2 Threat of New Entry In the retail market of UK, Mark and Spencer holds a market share of 31.6%; trailed by Saisbury's, Asda, and Morisons with a market share 15.3%, 16.6%, and 11.1%. From the discussed facts, it's unmistakably comprehended that, it is exceptionally troublesome for another market to enter in the current market; furthermore difficult to withstand and rival these current surviving markets(Case presentations, 2009). Power of suppliers: The suppliers offer their items in the retail stores. As a rule, the suppliers will be pressurized to acknowledge the modest cost when it is sold to the trade stores. The costs given by Mark and Spencer (retailers) are significantly less than the value set by the suppliers. In the event that they contradict there is a chance for the suppliers to lose Mark and Spencer (Leibner, Mader and Weiss, 2009). Power of buyers: Buyers additionally attempt to lessen the greatest retail value set by MS. In the event that they feel that the cost of the item can't be diminished or on the off chance that they feel that the cost of one item is unreasonable in Mark and Spencer, then they clearly purchases the item in one of the Mark and Spencer s driving rival like Asda or Saisbury's. So Mark and Spencer must be extremely watchful while setting a cost. This intrudes on Mark and Spencer and different supermarkets revenue driven battle (Scott, 2007). Threats of Substitutes: Mark and Spencer centers both on non- food things and food things. The danger for the sustenance things is less when contrasted and the non-nourishment items. Consequently, the risk of substitutes is less. Though there is a high risk as the technology is getting more developed and the small companies are using to overtake each other (Pepall, Richards and Norman, 2008). Rivalry: Amid the time subsidence, the clients were pulled in by rebate stores, so Mark and Spencer has confronted challenges at the quality and cost of the items from its contention rivals. Consequently, the contention among the contenders is high. Rivals like MS, Sainsbury is making a great impact in the organization. SWOT analysis of MS SWOT analysis: Figure: 3 Strength: MS has a solid brand embodying quality, value-for-money and reasonableness, which appeals to numerous people and promotes customer dedication. MS' benefits have been rising steadily since 2001 and the money position was very solid as at the year ended 31 March 2007(Composites industry gets SWOT analysis, 2001). On the other hand, Marks and Spencer had successfully established their brand on the international retailer market. Many people across the world recognize Marks and Spencer as popular UK brand. Another strength of Marks and Spencer is quality products which available in every shop. They have a website which is very easy to use and lots of latest cloths and foods are selling online. Moreover, they have a wide range of quality products in their collection. The latest financial report of company shows the strong cash flows. Due to all strengths of Marks and Spencer, the management develops the supply chain as well. Weakness Talking about the weakness of Marks and Spencer, they cannot adopt changes in a regular mood. In other words, they take a long time to change. For an example, the production process changed after a many years. On the other hand, they produce expensive products with comfort. The raw materials are also very costly. So, they have high cost of production. The investors pay a huge amount for production. Marks and Spencer fixed their focus on old things so, the lack of newness is observed in their process. Moreover, the management always pay attention on the brand rather than products. Finally, Marks and Spencer have poor management which unable to recognize the changing market trends. Opportunity: In terms of opportunities of Marks and Spencer have different platforms to perform. They have many departmental stores. They should implement effective strategies to make their stores attractive. They should use innovative decoration and lighting in their stores. In order to draw the attention of customer Marks and Spencer should represents their stores attractive. On the other hand, they should use better customer recourse management to understand the need of customers. Threats: Marks and Spencer sell expensive products which is not may acceptable for all people. Most the customers want good product in low price. So, it is one of the important threats of Marks and Spencer to lose customers due to high prices of products. Another threat is customer sophistication and knowledge about products. Moreover, the existing companies are one of the significant threats of Marks and Spencer. Apart from that, the changing global economic recession influence many organizational threats which hit UK the most inside of Europe. Finally, the low cost retailers are playing a very significant role in the threats of Marks and Spencer. Business model of strategic human resource management and human resource policies Business model Appropriate business model is always important for any organization to develop the business with profitability (Taylor, 2012). In, MS the existing business model is not making so much profit as in the previous year they have just made 20% profit from the model. In this, way the Business model is highly important for the organization to increase the profitability. Now a day's technology has improved and it is making a great impact on the customers in the world business environment. Therefore, the organization should apply the Business model in their organization (Grantham, Ware, and Williamson, 2007). The strategic human resource department is also liable for the implementation of the new business model in the organization. The Business model is described below: EBusiness is more than the use of technology to a current business model yet incorporates the formation of new eBusiness models that depend on the utilization of new technology. The business model as giving design to item, administration and data streams where the wellsprings of income are portrayed and the advantages to the different business performing artists are clear. Figure: 4 Source: https://www.tutorialspoint.com/e_commerce/images/b2c.jpg There are different e-Business models received by retailers. MS utilizes an intuitive model called the Market Portal Model. The model incorporates the purchaser and the supplier side and includes capacities and elements which empowers both the gatherings to work together viably. This kind of model is likewise utilized by organizations such as Walmart as it's extremely powerful in stock administration and dissemination. The Market Portal model is a value-based model where the items are acquired through the MS site. The data as to purchaser's exchange goes the suppliers and Mark and Spencer all the while. Suppliers just see the data they have to see and other client subtle elements are covered up. The supplier, then straightforwardly manages the dispersion and conveyance. Policies There are various acts in the organizations which should be maintained by the strategic human resource department. The acts are like: MS organizational policies for Strategic Human Resource Management employment relation act 2004 Equality pay act 1970 and 1983 disability discrimination act 1995 Figure: 5 employment relation act 2004: This is based on the relation with the employees which established in the year of 2004. The HR department should make good conduct with the employees and should motivate them properly towards their job. Equality pay act 1970 and 1983 According to, the act the organizations should pay the same pay according to the job role and position in the organization. The HR department should not be secular in this part (Fraser, n.d.). 3: disability discrimination act 1995 This act represents the sex discrimination acts and race relation act. This is to identify the main theme of adjusting the employees with the equality and loyal towards the people who are working in the premises no matter if he or she is disable by their organs or mentality (Doyle, 2008). Recommendation of mark and Spencer The organization has to maintain the ethical and legal consideration to meet the UK governments agreements. There are a high chance of getting take over by the new and competitive organizations according to the porters five forces. So, the Mark and Spencer should understand the target market and the customers to make them stronger than other companies. The retail sector of UK is very competitive and the organizations in the market are searching for developing their business by going over the other organizations in the future. In this case a proper business model is important for the organization(Vaaja, 2013). The Mark and Spencer is very much efficient to make their business developed and they can acquire a new strategy for their business. In the next part of the recommendation the strategic development and its recommendation for the near future has been developed. There are various policies in the UK to make a effective cultural and legal work environment which can lead the organiza tion to make more improved workable institute. Above mentioned laws like; employee retention law, equality pay and disability discrimination act should be followed by the organization which can give the employees of Mark and Spencer a employee satisfactory work environment. Thus, it is also important for the organization to implement those policies and should maintain those in the organization. However, the HR should understand the requirement of the organization and they should train the employees to make proper ethical behavior while they are working in the organization(Vaaja, 2013). The strength of the organization should be understood by the human resource department and they should utilize those strength to make opportunity in improving the business in the international sector. From the research it is visible that the Mark and Spencer can not adopt a new work environment or a new industrial culture. So, it is recommended to the organization to make proper training season for the workers and also for the management to adopt any working environment. The human resource department is liable to undertake such activity in the organization. The strategy of making an adoptable diverse culture in the organization the human resource department should consider all the ethics and laws to make employees understandable of the acceptability of work and pay equality(Buyers' Guide, 2015). This can help the organization to understand the new environments where they will deal with many different peoples and also different cultures. However, the price hike and the economical standers are changing rapidly in the world economy. Therefore, the organization is liable to understand the economic factors of the organization and the human resource department will prepare proper busine ss plan to adopt the changes which may affect the organizations financial structure. The research also represents that the company is producing the products with a high price which is not acceptable for any customers. They are shifting towards the other companies like TESCO, Sainsbury and so on. This is affecting their customer base. The customers are very much important for any organization. So, this is also necessary for the company to take responsibility of their customer base. The human resource department should make proper communication with the supplier to bring raw materials with low costs and make products according to the customers desire. In this way the organization can get back their customer base within a span of time. The quality should be improved and they should focus on the price and quality which is very important. They have to maintain the proportion of the quality and price accordingly which is important. The investors are paying a huge amount to produce good pr oducts with quality(Buyers' Guide, 2015). So, human resource department should make proper plan how to utilize the amount and get a proper outcome in the context of product production of mark and Spencer. They are based on the cloths and this should be improved as the organization is famous for their clothing. He Company is focused on their old activities which is not acceptable to the customers. They have to focus on the now trends which the customers are accepting widely. In this way the organization can get their lost popularity in the UK retail industry. One of the best opportunity for the company is they have different sectors to expand their business with different business. As like they have a huge market with their cloths. They can expand their business in the international areas where the customers will accept the products with the quality. They have many retail stores all over the UK and world as well. This is one of the best opportunity for them to make more profit. In th is way, if they want to make profit they have to make effective strategy for their shops(RaÃÅ'ˆthzel and Uzzell, 2013). Thus, the organization can implement more shops in the UK. The decoration is also very much important for the organization. They have to decorate the stores and the offices where they are operating their businesses. It is also noticed that the organization has many competitors in the market. The UK retail industry is not easy to deal with. Thus, the organization should use most important and effective structure for developing the business more to compete with the other competitors in the UK retail sector. They have to understand what the customers are willing to have from them. In this way the most effective nosiness model like E-Business is very important for Mark and Spencer. The low cost product presenting organizations are playing a great role in the UK retail business. Thus, the organization should make their products with low cost which the customers pre fers most. Their business model should improve with good quality production and the pri8ce. Which is most important(RaÃÅ'ˆthzel and Uzzell, 2013). They had made only 20% profit in the past years. So, this is very much serious for the organization where they have to think for the new way to increase the profit. The business model which they should use to implement in their business should be profitable and should increase the customer base and the productivity within the budget. From the PEST analysis it is clear that the organization is not maintaining the policies which they should implement properly in the mark and Spencer. It is visible that the organization has been charged for not to obey the health care policies. It is recommended for the organization to maintain the safety acts in the organization and should obey according to the laws. A few laws which they should follow are health care act, employment retention act, equality act and disability discrimination act. These all acts are very much important for the organization to make proper work environment. The human resource department should train the employees of the acts which can make them understandable of the equality in the workplace. This also make all the employees to work together and helps them to perform their best and increase the profitability. There are few recommendations for the MS to improve their business in the near future. Among all the important recommendations are: Recommendation for future performance As exhibited in the inner and outer review, MS's quality lies in its capacity to peer inside clients shopping bushel and break down what they are purchasing. It is generally trusted that clients over a significant time span conduct is a decent indicator of their future buy goals. The organization should understand what the clients and buyers are desiring from them (Buyers' Guide, 2015). It is visible that the organization is producing the products with high value. They should not make the price tag that much high which the customers do not accept. In this case, the supply chain should be modified and they should do proper bargaining with the suppliers. Many times the organization is violating some political acts like health and care act of UK. This should not be neglected as a small part of mistake (Vaaja, 2013). They should maintain the policies to make proper working environment in the organization. Apart from that the customers are not satisfied with their service. In this case th e organization should use proper training season to the employees to make them understand about the customers satisfaction level according to the research E-Business model is most effective business model for any retail sector which the organization should use to make their profitability more improved. Here, the business model will give proper understanding of the customers need and their desire (RaÃÅ'ˆthzel and Uzzell, 2013). The online business will give customers a flexibility of buying products from their home. So, using the e-business model the organization can improve their customer base and can make their profit more than 20% (Caren, n.d.). Recommended HR approach: The traditional approach of human resource department is important for the HR department to improve the organizational culture and its profitability (Dubois, 2004). Traditional approaches of Human resource management concentrate on practical exercises, for example, human resource arranging, work investigation, enrollment and determination, keeping up worker relations, execution evaluations, remuneration management, and preparing and improvement (Morris, Willey and Sachdev, 2002). Figure: 6 References Bibliography Bates, T. (2000). Managing technological change. San Francisco, Calif.: Jossey-Bass. Borner, S., Bodmer, F. and Kobler, M. (2004). Institutional efficiency and its determinants. Paris: OECD. Buyers' Guide. (2015). LTJ, 12(4), pp.53-56. Caren, J. (n.d.). The recommendation. Case presentations. (2009). Journal of Neurology, Neurosurgery Psychiatry, 80(11), pp.e2-e2. Composites industry gets SWOT analysis. (2001). Materials Today, 4(3), p.21. Cook, S., Macaulay, S. and Coldicott, H. (2004). Change management excellence. London: Kogan Page. Doyle, B. (2008). Disability discrimination. Bristol: Jordan Publishing Ltd. Dubois, D. (2004). Competency-based human resource management. Palo Alto, Calif.: Davies-Black Pub. Fraser, J. (n.d.). The school in the United States. Grantham, C., Ware, J. and Williamson, C. (2007). Corporate agility. New York: AMACOM-American Management Association. Jellinek, D. (2000). Official UK. London: Stationery Office. Labov, W. (2001). Social factors. Malden, Mass: Blackwell. Leibner, J., Mader, G. and Weiss, A. (2009). The power of strategic commitment. New York: American Management Association. Morris, H., Willey, B. and Sachdev, S. (2002). Managing in a business context. Harlow: Financial Times Prentice Hall. Pepall, L., Richards, D. and Norman, G. (2008). Industrial organization. Malden, MA: Blackwell. RaÃÅ'ˆthzel, N. and Uzzell, D. (2013). Trade unions in the green economy. New York, NY: Routledge. Scott, D. (2007). The new rules of marketing and PR. Hoboken, N.J.: John Wiley Sons. Sturchler, N. (2009). The threat of force in international law. Cambridge: Cambridge University Press. Taylor, S. (2012). Model business letters, emails and other business documents. Harlow, England: Pearson. Vaaja, T. (2013). Wittgensteins Inner and Outer: Overcoming Epistemic Asymmetry. Nordic Wittgenstein Review, 2(1). Warner, A. (2010). Strategic analysis and choice. New York: Business Expert Press. Woods, M. (2007). Linking risk management to strategic controls: a case study of Mark and Spencer plc. IJRAM, 7(8), p.1074.