H&M Study Case

Hennes & Mauritz (H&M), AN HRM CASE
STUDY

(Source: http://ideasthoughts.erruppackal.com/2009/09/hennes-mauritz-hm-an-hrm-casestudy/)

This is a case study on H&M, from a Strategic Human Resource Management perspective, based on publicly available details of H&M, which has been analyzed and presented within the context of the perspective. This case study was prepared to meet the requirements of an academic exercise.

Contents:

INTRODUCTION & COMPANY STRATEGY:
HUMAN RESOURCE
ORGANISATIONAL BEHAVIOUR
SELECTION AND RECRUITMENT
HUMAN RESOURCE DEVELOPMENT
THE ANALYSIS, HRM’S ROLE IN THE BUSINESS SUCCESS OF H&M
Linking People with strategic business needs
Rewards Management
Performance Management
Managing Diversity in teams and groups
Planning, Recruitment and Selection
Organisational Behaviour
Human Resource Development
International HRM

References:

INTRODUCTION & COMPANY STRATEGY:

Hennes & Mauritz (H&M) is a 100 billion SEK company, engaged in designing and retailing of fashion apparel and accessories. The company offers a range of apparel, cosmetics, footwear and accessories for men, women, children and teenagers. H&M primarily operates in Europe, North
America and Asia, and has a presence in over 33 countries. The company is headquartered in
Stockholm, Sweden and employs approximately 53,430 people on a full time basis (Datamonitor,
2009).

H&M’s strategy is to offer fashion and quality at the best price . H&M’s annual report (AR1 2008) emphasizes that “quality” relates to both; H&M’s products exceeding customer expectations, and also customers being satisfied with the company itself. The report states “Taking responsibility for how our operations affect people and the environment is also an essential prerequisite for H&M’s continued profitability and growth.”
H&M is driven by strong values such as commercial mindset, simplicity, constant improvement, cost consciousness and

References: How does H&M want to get there? To execute its strategy H&M focuses on 3 main aspects of it’s business concept (AR1 2008): • Quality: Central emphasis on quality with extensive testing and ensuring least environment damage (AR1 2008) strength also increases continuously. For 2009, H&M’s Annual report (AR1 2008), forecasts the addition of 6000 to 7000 new jobs come from different cultural backgrounds (Datamonitor, 2009). Their strategy is to recruit locally whenever a new store opens (AR1 2008) The main area for which H&M may have clearly articulated policies are listed below. The policy areas are based on the categorization by Armstrong (Armstrong (2006), pp.148-156 ): (AR1 2008, p.34).At H&M, HR activities are guided by a fundamental respect for the individual (AR1 2008) and the opportunity to discuss any work-related issue directly with management (AR1 2008). They also support their employees’ right and ability to organize and to decide who should represent them in the workplace (AR1 2008). H&M has positive experience of open and constructive dialogue with the trade unions and they welcome such relations wherever they operate the EWC (European Works Council), (AR1, 2008). • Promotion: To quote Mr enable the company to grow quickly” (AR1, 2008). This statement indicates that H&M has policies related to promotion • Employee Development: To quote Mr. Pär Darj, Head of HR at H&M “. I tell employees, if you do not grow neither will H&M” (AR1, 2008) • Rewards: H&M focuses on rewarding people by providing more opportunities and responsibilities, and not through a promotions and job titles (AR1, 2008) H&M operates in 33 countries (Datamonitor (2009))and has a work force belonging to these 33 countries because they recruit locally (AR1 2008, p.34) Interviews with the CEO and Head of HR in the annual report indicate a participative culture where “everyone is made to feel like a part of the company’s success” (AR1 2008)