“How important in your view is human resource management for the purchasing department”

1. “How important in your view is human resource management for the purchasing department”

2. Format of presentation • Introduction • HRM and the business • Human resource and retail management • Internal marketing • organisation design • organisation culture • HRM and purchasing • purchasing

3. Format of presentation • The buyer • Case study example: NEXT • Overview/ conclusion • References • Student activity • Questions

4. 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.

5. 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)

6. People = most important asset a company has (Redman and Wilkinson 2001)

7. HRM and the Business External ‘triggers’ External ‘triggers’ VISION MISSION STRATEGY of the business intensification of competition Internalisation/globalisation Educational changes Technological changes Demographic changes CULTURE Government & legislative changes HUMAN RESOURCE MANAGEMENT & DEVELOPMENT STRUCTURE

8. 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 structure and culture Attract and select people to fit the business plan positive policies for redeployment & termination of employment Induct, train & manage effectively Performance & growth Appraise and develop for the short and long term Achieve meaningful career planning source: Harrison 2001) Motivate & reward in ways that will ensure people’s commitment to the business and its customers

9. 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)

10. 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)

11. 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)

12. The internal customer-service profit cycle Employee retention & profitability Employee satisfaction External service quality Internal service quality Customer satisfaction Customer loyalty Profitable growth

13. Internal marketing • Reasons for internal marketing • employees should…… • establish 2 way communication

14. Internal structures • What type of structures • bureaucracy • autonomy

15. 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

16. 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)

17. …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)

18. 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)

19. Cultural analysis level • Observable behaviour • values • beliefs • eg Safeway changing culture

20. HRM & Purchasing • Human resource management has an impact on all parts of a business/company • The focus now is on the purchasing department (Buyer)

21. 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)

22. The buyer • Role of the buyer • further responsibilities • skills in the procurement function • interpersonal skills • technical skills • roles in the purchasing/buying centre

23. Next • Buyer qualities: • Manages • Delegates • Recruits • Motivates • Monitors

24. 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

25. 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

26. 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 managementPrentice Hall • Dibb S, Simkin L, Ferrell OC (2001) Marketing concepts and strategiesHoughton Mifflin • Harrison R (2001) Employee developmentCIPD

27. 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

28. 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

29. Student activity Anagrams TULUCER

30. RUBYE

31. NAMHU CUROSREE

32. ANY QUESTIONS????