ZARA

Human Resource Management

[Type the author name]

Table of Contents
Introduction....................................................................................................................................2

Overview of Zara...........................................................................................................................2

L01...................................................................................................................................................4

1.1 The Purpose along with the Scope of HRM in the Context of Zara...........................4

1.2 Strengths and Weaknesses of Multiple Recruitment and Selection Approaches....5

1.3 Explaining HR Functions in Fulfilling Organisational Objectives................................7

L02...................................................................................................................................................9

2.1 Benefits of HRM Practices in the Context of Zara........................................................9

2.2 Evaluating the Effectiveness of Multiple HRM Practices...........................................10

L03.................................................................................................................................................12

3.1 Employees Relations in HRM Decision Making..........................................................12

3.2 Demonstrating Key Components of Employment Legislation...................................14

L04.................................................................................................................................................15

4.1 Application of HRM Practices in Zara...........................................................................15

Conclusion....................................................................................................................................18

References..............................................................................................................................19

1
Introduction
Human Resource Management is the specific study that reviews the emphasis that
should be put on personnel management as well as management related human
resources. Along with the evaluation process, it distinctively demonstrates both the
traditional and today's approach towards the management process of the workforce.
The better the performance of the employees the more successful the respected
organisation is in attaining its set goals. The employees become more engaged in the
organisation's overall function when they are properly utilised through motivation as well
as job evaluation. By that sense, the management of human resource plays a vital role
in the organisation when it is planned properly. And when the implementation of HRM
practices is effective the organisation is bound to succeed with proper governance. Zara
has been taken as an example and a comparative analysis of it regarding the
application of HRM practices has been presented in the report (Anderson, 2007).

Overview of Zara
Zara is widely known as a retail chain having a spree of stores numbering to two
thousand two hundred and fifty nine stores spreading around in over ninety six
countries. It has established itself to be a well-known and unique brand of clothing. The
unique approach about Zara that has made it so appealing to women all over the world
is its unique yet simple designs at a relatively cheaper price than other clothing brands
such as Calvin Klein, Ralph Lauren etc. Being trendy with today’s fashion world it
produces and sells accessories, swimwear, shoes, perfume along with clothing. It has
recently secured the place of being the largest apparel retailer of the whole world having
over twenty collections in a year. Zara operates implementing a policy that includes zero
advertising instead it increases availability by opening new stores. For them being
available attracts the potential buyers (Zara.com, 2020).

2
Date: 10/01/2020

To: Senior Manager, Zara, London, UK.

From: X, Human Resource Manager, London, UK.

Subject: Assessing the application of HRM practices in Zara

Dear Sir,

I, hereby, disclose that this particular report provides a comprehensive discussion of the
roles, functions and practices of human resource management. Along with different
approaches to HRM the application of them in the context of Zara is also being
discussed.

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L01

1.1 The Purpose along with the Scope of HRM in the Context of Zara
The desired result of an organisation is being linked to its workforces by the process of
workforce planning. By distinctively determining the required skills, knowledge and
experience of the employees and linking them with the supposedly appropriate number
of recruits in the appropriate situation as well as in the appropriate time, HRM planning
functions (Thornhill, Saunders and Skinner, 2004).

The purposes along with the functions of HRM in order to achieve effective planning
and workforce resourcing are provided below.

 Identifying any vacant position and further taking an initiative of appointing

recruits or staffs can be designated as the primary function of HRM. Planning is
the 1st function of the department of HR including identifying vacant positions,
outlining requirements of jobs as well as recruitment sources.
 The development of organisational structure and designing the required multiple
operations come next after the establishment of objectives and development of
plans. Co-ordinating activities, delegating authority to right people, assigning
multiple functions to them etc. are the functions related to it.
 Motivation is an integral function with the purpose of encouraging staffs with
effectiveness and willingness and leading their skills toward the goal dog the
articular organisation. Provisioning welfare and safety requirements, developing
warm workplace relationships, career planning along with ensuring morale are
some of the processes of providing motivation (Torrington and Hall, 1995).
 Proper monitoring, controlling from the governing body along with proper
direction is must in order to put the appropriate personal possessing the proper
skills to the required position. Monitoring comes with the additional function of
evaluating current performance and making a comparative evaluation with the
standard performance.

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  Training along with development is another integral HRM function as it assists
the development of standard competency. They also ensure such an
environment that can bring out the fullest potential of the employees.

The purposes in Zara in case of HRM are planning, developing as well as administrating
programs and policies. Zara has the purpose of making the most effective use of their
staffs and workforce while planning and applying HRM practices.

1.2 Strengths and Weaknesses of Multiple Recruitment and Selection

Approaches
For a worldwide retail chain like Zara, the recruitment process is very crucial. Whereas
recruitment is a process where the organisation identifies the vacant positions as per
organisational requirements of skills, the selection is a process where the suitable
applicable is chosen as per pre-set requirements (Meijerink, Bondarouk and Lepak,
2015).

Best fit vs
best practice

Contingency
Recruitment
Recruitment Internal vs
external
and
selection
approaches
Job
Job analysis
Description

Figure 1: Recruitment and selection approaches (Jones and Martain, 2013)

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 “Best Fit” vs. “Best Practice”: The “best fit” approach assumes that strategies
regarding HRM become more effective when it is applied with consistence with
the environment upon which the organization operates and produces outputs. On
the other hand, “best practice” approach suggests that organizational
performance can be enhanced if the best of human practices can be achieved as
a commitment from the employees (Meijerink, Bondarouk and Lepak, 2015).
1. The best fit approach links HRM practices to the environment on the other
hand in best practice approach employees are supposed to act on own
best logic.
2. Because of the different environment of a different organization, the best
fit approach is applied to create a competitive edge of others. On the
contrary, the best practice approach is suited to every industry in every
country.

 Internal vs. External Recruitment: Internal recruitment indicates to the process

of supplying workforce or staff from the organization itself, on the other hand,
external recruitment refers to the process of collecting prospecting employees
from the outer layer of an organization (Feng, 2004).
1. The internal recruitment process can be denoted to be faster in
comparison with external recruitment. This maybe because of the fact that
external recruitment is a consecutive process of advertisement, collection
of applications, screening as well as developing shortlist from them,
implications of a number of tests such as training, interviews etc.
2. The process of external recruitment can be said to be a lot less cost
effective than the internal process as external recruitment requires huge
investments.
3. Hunting fresh talents are necessary for fresh ideas and perspectives and
in case of internal recruitment the scope of finding so is less.

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  Job Analysis: Job analysis is a process involving the functions of observing
critically acclaimed incidents, making checklists, conducting interviews maybe by
using questionnaires.
1. Observation has the advantage of disclosing first hand and appropriate
information. But on the other hand, the interview process is a time
consuming function that requires an unbiased observer it has its
disadvantages (Svetlik and Stavrou-Costea, 2007).
2. The interview can collect qualitative data but it fails as it makes it hard to
combine data from various interviews.
3. Checklist and diary are cheap but can’t possibly content all required data.

 Job Description and Person Specification: Concise and proper information

regarding any particular job is exclusively provided by job description. The hunt
for qualified candidates becomes easier.

 Contingency Recruitment:
The agreement that is established between the employer and the agency of
recruitment is about filling a particular vacancy and the recruiter gets a
commission in case his candidate is chosen by the organization. The process is
faster and easier but it comes with the risk of non-guarantee of payment (Feng,
2004).

1.3 Explaining HR Functions in Fulfilling Organisational Objectives

Increasing Profit:

Zara was not able to attain a significant amount of yearly profit in recent years in its
United Kingdom market despite the fact that their sales have increased. Cost cutting
can be applied in profit maximisation objective. HRM can assist by skipping the
payments such as unnecessary overtime, wasteful bonuses etc. avoidable costs and
cut cost (Martínez Barreiro, 2008).

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Increasing Customer Satisfaction:

By creating a healthy and mostly safe environment for work and providing utmost
motivation to its staffs HRM can increase Zara’s staff performance and thus can satisfy
the customers visiting their stores.

Maximize Employee performance:

The performance of the staffs of both the office and stores can be enhanced by creating
a healthy and mostly safe environment for work and providing the utmost motivation
(Martínez Barreiro, 2008).

Ensure Effective Administration:

As maintaining a healthy workforce balance is the job description of HRM this can
ensure that the administration of Zara is effective.

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L02

2.1 Benefits of HRM Practices in the Context of Zara

HRM engages itself in multiple practices including relationship management, training
and development, performance management etc. Balancing the workforce balance as
well as attaining their best potential is achieved when their benefits are utilised.

 Performance Management: This practice is effective in maintaining a huge

retail chain like Zara. Zara has supervision in every one of their stores along with
a check and balance performance measurement system. Central supervision is
also exposed upon which performance based bonus is provided (Thornhill,
Saunders and Skinner, 2004).

 Training and Development: In operating business, for Zara like every

organisation humans are the most valuable of resources along with their staffs,
designers etc. By training their employees especially salesmen they can make
them skilful at persuading the consumers and can expect repeat purchase.

 Relationship Management: As mentioned before a healthy workforce

environment as well as proper teamwork among the staffs requires a healthy
existing relationship between them. By developing an appropriate work culture,
HRM can create a relationship of understanding among them.

 Greater Profitability: The job of HRM is to ensure that every employer, as well
as employee, performs to his fullest potential thus gaining a competitive
advantage over other competitors. HRM achieves the superior performance by
proper direction, control and motivation to staffs (Anderson, 2007).

 Flexible Working: Providing job rotation opportunities along with flexible hours
of working HRM can make their staffs feel safe and welcoming. As the staffs are

9
 given the benefit of balancing their personal and professional lives they become
more involved with the spirit of the organisation.

2.2 Evaluating the Effectiveness of Multiple HRM Practices

Augmenting profit and productivity are the two basic goals of any HRM team of an
organisation. These can be achieved by maintaining the set of HR practices properly.
Being such a diversified retail chain like Zara, it has to continuously evaluate its
performance. In terms of those goals the effectiveness of multiple HR practices are
evaluated below (Anderson, 2007).

Performa
nce
Appraisal

Reward Career
System Management

HR
practices

Recruitment
Training and
&
Development
Termination

Figure 2: HR Practices (Anderson, 2007)

 Performance Appraisal: The proper set of evaluation, measurement as well as

influencing staffs job-related outcomes, behaviours, attributes is called
performance appraisal. The underlying objective is managing the staffs in
achieving the goal. Here, the supervisor uses the system to let the staff know that
his performance is being recognized and thus motivates him.

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 Career Management: A process of planning entailing to choosing and setting
own goals over a lifetime and establishing strategies of achieving them is one's
career. People at the management level should be given the charge to control
their carer. By assessing the employee's values, abilities, interests the
organisation can provide learning opportunities and development opportunities
through training and seminar to their empoyees. Zara can hold an on-site
workshop for this purpose which in long term will motivate its employees and
increase the gross productitvity (Dickmann, Brewster and Sparrow, 2008).

 Training and Development: Training develops the skills of a particular

employee on a great scale. As candidates are trained as based on their own
organisational structure and culture it is most sure that they will better perform
maintaining the cultural integtrity of the organisation. By enabling them to perform
more efficiently and effectively in current times they are made more cautious of
their future performance as well.

 Recruitment and Termination: In case of vacancy, talented candidates are

hunted and recruited from both outside and inside of the particular organisation.
Candidates, when hired from outside, can assist in gaining a competitive edge
over others by providing crucial and confidential information of the existing
competitors. While internal recruitment can be used as a motivational factor.

 Reward System: The performance of an employee is measured using a set

scale and the superior performance holder achieves rewards both extrinsic and
intrinsic in nature. It leads to a form of Job satisfaction and thus increases
productivity. The urge to achieve a set target is pushed by this motivation. A
sustainable business environment and sustainable profit maximization are
achieved here (Dickmann, Brewster and Sparrow, 2008).

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L03

3.1 Employees Relations in HRM Decision Making

The major driving force behind organization operations is its respective employees. In
building an appropriate workplace environment the most integral thing is to develop
good relationships and flow of authority among the subordinates, supervisors and
colleagues. The better outcome can be expected from an organization based either or
how there exists a proper relationship management system within it. Also, a decision
taken using collective opinion as well as mutual agreement is supposed to be more
fruitful. The more the sharing of ideas, views, thoughts, opinions, the more dynamic the
organization is. Along with that, the employees feel more connected to the organization
if they feel comfortable. Effective communication system helps a great deal in
developing a proper relationship in the workplace. While making decisions a number of
steps can be followed by Zara regarding relationship management that is being
provided below (Anderson, 2007).

Figure 3: Decision making steps through relationship management (Anderson,

2007)

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1. Defining and assessing the existing problems is the 1 st step of decision
making in HRM. While maintaining a good relationship in the workplace,
the collective effort can make it faster to identify a problem.
2. The next step that comes after the identification of the problem is to solve
it. By extracting the best from every staff through an existing healthy
relationship the problem can be solved in an optimized way. According to
interest, every particular staff should be assigned responsibilities so that
they feel connected to the organization and more motivated to derive
multiple alternative solutions.
3. In the next step, the extracted alternative approaches to a solution are
evaluated. By working in a team, unique ideas of evaluating are most
likely to emerge. A team leader can be assigned responsibility to
supervise and control and co-ordinate the activities of the involved
members (Jones and Martain, 2013).
4. After evaluation comes to a collective gathering of opinions. Each and
every involved member will assess the evaluation and engage themselves
to come up with the best available alternative. If the sense of organization
value is created properly every employee will suggest what is best for the
company rather than create conflict.
5. In the next step, the selected best alternative solution is implemented with
the help of the staffs. The organization containing staffs strongly believing
in organizational value, belonging to its culture sincerely uses his creativity
and improves his efforts in implementing the measure.
6. The final step is the control and review step. It follows up by reviewing the
process of implementation and takes precautionary measure if not. Often
a deviation in the actual performance is noticed when the involving
employees are not committed to the process. Effective communication is
integral to make them committed (Jones and Martain, 2013).

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3.2 Demonstrating Key Components of Employment Legislation
A certain set of laws are to be used and also maintained by every organisation. For
Zara, this can prove to be difficult as it has its activities spreading over ninety six
countries and each country has its unique set of laws. In the case of employees
regulations, the laws can include collective bargaining and labour law. Legal rights, as
well as the duties of both the employers and employees, are covered here. The
common objective of all these legislations is to protect the rights of each and every
worker. Zara offers minimum standards in the employment legislation where it allows
employees to develop policies and thus embed them into the organisational culture.
Evidently, a significant influence of these legislations is noticed in the case of HRM
decision making. The key elements regarding employee legislation are provided below.

1. Equal Pay Act 1970: The right to attain equal treatment as well as compensation
for every employee regardless of their gender with respect to their conditions and
positions of employment is protected here (Thornhill, Saunders and Skinner,
2004).

1. Sex Discrimination Act 1975: Within the border of UK, this act works as a
protection from any existing discrimination based on gender or marital status as
well. In multiple areas including disposal of the premise, provision of services and
goods, education, harassment, employment, training are covered here.

2. Race Relation Act 1976: Any ground of discrimination on the ground of race
which includes the criteria of education, employment position, ethnic, religion,
nationality and race (Thornhill, Saunders and Skinner, 2004).

3. Employment Relation Act 1999: The development, as well as maintainance of

warm relationships among the employees, are covered in this act.

4. Work and Families Act 2006: The certain rights of any employee to take either
paternal or maternity leave, flexible arrangements of work for taking care of
adults, adoption leave is protected here.
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 5. National Minimum Wage Act 1998: The minimum level of wage in the UK area
is specifically mentioned here. A wage of £7.50 per-hour is determined for an
employee over 25 years and a wage of £7.05 per-hour is determined for
employee of 21-24 years and finally, the wage of £5.60 per-hour is determined
for employee of 18-20 years old.

6. Employment Tribunals Act 1996: The tribunal public body for the employees is
the employment tribunals. Any dispute arose between the employee and
employer in relations with redundancy payments, employment inequity, unfair
dismissal is resolved under this act.

L04

4.1 Application of HRM Practices in Zara

Zara has achieved today’s success by maintaining the excellent practice of human
resources management. HRM practices in the context of Zara are demonstrated below.

 Recruitment and Selection: The process of appointing qualified candidates to

fill up any vacant position from different sources is called recruitment and
selection. In case of vacancy, talented candidates are hunted and recruited from
both outside and inside of the particular organisation. Candidates, when hired
from outside, can assist in gaining a competitive edge over others by providing
crucial and confidential information of the existing competitors. While internal
recruitment can be used as a motivational factor. Zara does both internal and
external recruitment. Designers from rival frims are often appointed to gain
competitive advantages. CV from applicants is requested via advertisement by
the HR team. After shortlisting them they are selected based on aptitiude test
and interview (Anderson, 2007).

A CV is being included later as an example of the recruitment process.

15
Sajeda Hossain

Address:

Contact Number:

Mail Address:

Career Objective

I am seeking to obtain a job opportunity in Zara where I can grow in terms of

knowledge, skills, and attitude.

Academic Background

Degree Name of Passing Group/Department GPA/CGPA

Institutions Year

Communication Skills
 Fluent in both written and oral communication in English and Bengali.

 Excellent presentation skill.

Computer Skills and Competencies

 Good command over Microsoft Word, Microsoft Excel, and Microsoft PowerPoint.

Extra-curricular Activities

 Involved in several social activities with different organizations.

 Involved in cultural activities.

Job Experience

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Personal Attributes

• Strong interpersonal skills

• Adaptive to dynamic working environments
Personal Information

Name :Sajeda Hossain

Father’s Name :
Mother’s Name :
Nationality :
Date of Birth :
Marital Status :
Reference:

Certification

I certify that all the information stated in this resume is true, and has been completed to
the best of my knowledge. I authorize any organization to verify the information provided
in this resume.

Signature :

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  Reward System: An employee gets job satisfaction with this system. The
performance of an employee is measured using a set scale and the superior
performance holder achieves rewards both extrinsic and intrinsic in nature. It
leads to a form of Job satisfaction and thus increases productivity. The urge to
achieve the set target is pushed by this motivation. A sustainable business
environment and sustainable profit maximization are achieved here. Profit
sharing, promotion, salaries are some of the examples of reward. The following
two kinds of job contexts are used in the UK (Jones and Martain, 2013).
 Blue Collar Labour Job: The employees whose job description involves
physical labour are indicated by this. Additional working hour fees,
increments, bonuses are receieved by them.
 White Collar Labor Jobs: The employees whose job description
involves clerical and mental labour are indicated by this. These workers
possess special skills and are highly educated. They receive both intrinsic
as well as extrinsic rewards.
.

Such practices motivate the employee to perform in a competitive manner thus making
them more productive. This results in greater profitability.

Conclusion
Human Resource Management is the specific study that reviews the emphasis that
should be put on personnel management as well as management related human
resources. The better the performance of the employees the more successful the
respected organisation is in attaining its set goals. The employees become more
engaged in the organisations' overall function when they are properly utilised through
motivation as well as job evaluation. By that sense, the management of human resource
plays a vital role in the organisation when it is planned properly. And when the
implementation of HRM practices is effective the organisation is bound to succeed with
proper governance in an organisation like Zara.

18
References

Anderson, N. (2007). Fundamentals of HRM. London: Sage.

Dickmann, M., Brewster, C. and Sparrow, P. (2008). International HRM. London:

Routledge.

Feng, J. (2004). The impact of human reource management practices and information
technology implementation on Canadian workplace performance. Waterloo, Ont.:
University of Waterloo.

Jones, R. and Martain, S. (2013). HRM fundamentals. Nollamara, W.A.: HRVET.

Martínez Barreiro, A. (2008). Towards a New System for the Fashion Industry. The Zara
Model. Revista Internacional de Sociología, LXVI(51).

Meijerink, J., Bondarouk, T. and Lepak, D. (2015). Employees as Active Consumers of

HRM: Linking Employees’ HRM Competences with Their Perceptions of HRM Service
Value. Human Resource Management, 55(2), pp.219-240.

Svetlik, I. and Stavrou-Costea, E. (2007). HRM in a knowledge-based economy.

[Bradford, England]: Emerald.

Thornhill, A., Saunders, M. and Skinner, D. (2004). HRM and change. [Bradford,
England]: Emerald Group Pub.

Torrington, D. and Hall, L. (1995). Personnel management. London: Prentice-Hall

International.

Zara.com. (2020). ZARA Official Website. [online] Available at: https://www.zara.com/

[Accessed 15 Jan. 2020].

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