“How important in your view is human resource management for the purchasing department” Format of presentation Introduction HRM and the business Human resource and retail management Internal marketing organisation design organisation culture HRM and purchasing purchasing Format of presentation The buyer Case study example: NEXT Overview/ conclusion References Student activity Questions INTRODUCTION HRM is an important component of an organisation it plays a vital role in the development and training of employees HRM has an impact/influence on all departments within an organisation. Definition The concept of human resource management is workforce-centred, directed mainly at the organisation’s employees; finding and training them, arranging for them to be paid, explaining management’s expectations, justifying management’s actions, satisfying employees’ work related needs…. (Torrington and Hall 2001) People = most important asset a company has (Redman and Wilkinson 2001) HRM and the Business External ‘triggers’ VISION Internalisation/globalisation MISSION STRATEGY of the business Technological changes CULTURE Government & External ‘triggers’ intensification of competition Educational changes Demographic changes legislative changes HUMAN RESOURCE STRUCTURE MANAGEMENT & DEVELOPMENT The wheel of HRM and the business Business vision, goals and strategy HRM goals and strategy Human resource management Help to build an appropriate work Attract and select people to fit the structure and culture business plan positive policies for redeployment & termination of employment Achieve meaningful career planning source: Harrison 2001) Induct, train & manage Performance & growth effectively Appraise and develop for the short and long term Motivate & reward in ways that will ensure people’s commitment to the business and its customers Human resources & retail management The organising, selecting and training of personnel must be part of the retail planning process. Human assets are of the utmost importance to retail success, but often plans are made with little regard for the people who will carry them out. (Cox and Brittain 2001) Internal Marketing Employees are the essential ingredient in increasing productivity, providing customer service and beating the competition. Thus, in addition to marketing activities targeted at external customers, firms are use internal marketing to attract, motivate and and retain qualified internal customers (employees) via satisfaction. (Dibb et al 2001) Importance of internal marketing Employees are a crucial factor in determining the success of a business (Broady-Preston and Steel 2002) satisfied employees makes all the difference (Arnett et al 2002) The internal customer-service profit cycle Employee retention Employee satisfaction & profitability External service quality Internal Customer service quality satisfaction Profitable growth Customer loyalty Internal marketing Reasons for internal marketing employees should…… establish 2 way communication Internal structures What type of structures bureaucracy autonomy Organisational design Organisations have both a structure and a culture organising both requires both DIFFERENTIATION & INTERGRATION there is not a best way of doing either Organisational culture Structure is firm; culture is soft structure is clear; culture is intangible structure is about systems to which people have to adapt; culture is about people who have norms and values in common structure is about the distribution of authority; culture is about how people work together.(Torrington et al 2002) …continued Organisation structure should be adaptable, with as few hierarchical levels as possible because fewer hierarchical levels means greater adaptability. Instead of permanent and unchangeable departments. (Vranesevic et al 2002) Culture The culture of an organisation can be defined as the impact of influences on it over time in forming its value and belief systems. (Cox and Brittain 2001) Observed in the long term, one of the basic responsibilities and rights of the managing structures is creating company culture. Every company has some features which make its culture different from others. (Vranesevic et al 2002) Cultural analysis level Observable behaviour values beliefs eg Safeway changing culture HRM & Purchasing Human resource management has an impact on all parts of a business/company The focus now is on the purchasing department (Buyer) Purchasing Undergone tremendous change influenced by factors outside the organisation companies forced to adapt the structure, roles and operations of their purchasing departments to operate in an external environment which is turbulent. (Humphreys, McIvor, McAleer 1998) The buyer Role of the buyer further responsibilities skills in the procurement function interpersonal skills technical skills roles in the purchasing/buying centre Next Buyer qualities: Manages Delegates Recruits Motivates Monitors Going back to the question…….. Human resource management is VERY important for the purchasing department because…………………. They work closely together with other parts of the business therefore they must strive for the same goal Over view/conclusion How human resource management fits into the wider picture of RETAILING Improving all aspects of the business, start internally first, then that will help to improve other parts of the business add value internally HR department do this References Anonymous (2002) “BMW’s training management undergoes a quite revolution” MBC university press Anonymous (2001) “perceptions of the value of the HR function” Human resource management journal vol 11 p70 Arnett DB, Laverie DA, McLance C (2002) “using job satisfaction and pride as internal marketing tools” The cornell Hotel Quartly Vol 43 Broady-Preston J, Steel L (2002) “internal marketing strategies: a strategic management perspective” Library Management Vol 23 p294-301 Cox R, Brittain P (2001) Retail management Prentice Hall Dibb S, Simkin L, Ferrell OC (2001) Marketing concepts and strategies Houghton Mifflin Harrison R (2001) Employee development CIPD References Humphreys P, McIvor R, McAleer E (1998) “The purchasing function as a professional service firm: implications for training and development” Journal of European Industrial Training p3-11 Linder J (2000) “paying the personal price for performance” Liu W, Lepak DP, Takeuchi R, Sims HD (2003) “Matching leadership styles with employment models” Human Resource Management Review Vol 13 p127-152 Strategy and leadership Vol 28 p22-26 Mattila H, King R, Ojala N (2002) “Retail performance measures for seasonal fashion” Journal of fashion marketing management vol 6 pg 340-351 Redman T, Wilkinson A (2001) Contemporary Human Resource management Prentice Hall References Torrington D, Hall L (2002) Human resource management Prentice Hall Vranesevic T, Vignali C, Vignali D (2002) “Culture in defining consumer satisfaction in Marketing” European Business Review Vol 14 p364-374 www.next.co.uk Other sources: D Ryding (2002/3) Lecture notes Student activity Anagrams TULUCER RUBYE NAMHU CUROSREE ANY QUESTIONS????