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Zara - A Human Resources Perspective

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stephen carruthers

on 27 August 2013

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Transcript of Zara - A Human Resources Perspective

The initial approach: What to consider
A high performing
model

Zara's next top model
Recommendations: How to prevent fashion faux pas
Highly performing workforce
High quality learning and development
High volume of sales
Increased profit margin
Reward and recognition program
Workforce planning
Attraction and retention of talented staff
Maximum utilisation of staffing resources
Talented staff are in high demand and will be easily attracted and retained with a substantive remuneration package
Talented staff will remain with Zara and disperse effort on behalf of the organisation
By providing both on the job training, and talent management - staff will perform effectively.
By considering the store type, size and location a suitable number of staff is determined and wastage is minimised
Issue 1 March 2012 $7.95 (GST INC)
Special Report
The finishing touches
The less staff wastage that occurs ensures that each team member is required to perform to their fullest extent
A high performing workforce is motivated, engaged, and supported. This workforce is well placed to meet corporate targets.
More sales, at a lower cost to the organistion means an increased profit margin
Retaining employees reduces turnover
Reduced recruitment costs
Lowering recruitment costs affects the organisations bottom line
Revenue saved on unnecessary employment
Team members will only be hired if there is appropriate work for them to do
Lowering employment costs affects the organisations bottom line
Profts are reinvested in reward and recognition programs
Profts are reinvested in learning and development research and implementation
Profts are reinvested in workforce planning metrics and systems
Already existing HR systems
New requirements
Entering a new international Asian market
Learning & development
Workforce planning
Reward & recognition programs
Organisational culture verus local culture
Integration of existing HR systems
Legend
Choices
HR decisions made by the organisation
Consequences
Impact on the organisation
Theories
Suppositions on how choices & consequences are related
Zara's HR Business Model (Baum & Singh, 1994)
Zara is a well established, highly performing international organisation
Innovation distinguishes a leader from a competitor
Zara is already established
within Asia, but not on a large
scale
ON THE COVER
3 MARCH 2012 ZARA
WHAT TO CONSIDER
ON THE COVER
3 MARCH 2012 ZARA
ENTERING THE ASIAN MARKET
Challenges to new and existing HR functions
Learning & development
Workforce planning
Reward & recognition programs
Organisational culture verus local culture
Other
ON THE COVER
3 MARCH 2012 ZARA
ENTERING THE ASIAN MARKET
Learning & Development
Current HR processes
On the job training
15 day suitability period
Asian Learning & Development trends
Malaysian government develops a national HRD plan with a focus on lifting employability (Zhu et al., 2007)
Basic training is provided to most employees (Zhu et al., 2007)
Recommendations:
Try and engage relevant governments to establish a Joint Human Resource Development plan that serves the interest of both Zara and the local community
ON THE COVER
3 MARCH 2012 ZARA
ENTERING THE ASIAN MARKET
Workforce Planning
Current HR processes
Staffing is determined according to sales volume versus selling area
Employees are identified on merit and supported in their development
Asian Workforce Planning trends
Collectivist society (Guzman et al., 2011)
Only recently shifted from an age/tenure to a performance based approach to promotion (Poon & Rowley, 2010)
Predominantly male workforce (Zhu et al., 2007)
ON THE COVER
3 MARCH 2012 ZARA
ENTERING THE ASIAN MARKET
Reward and Recognition
Current HR processes
Financial incentives for store manager to identify, 'design mistakes'
Financial incentives for store manager to financially perform
Individual performance perspective
Asian Reward and Recognition trends
Collectivist society (Guzman et al., 2011)
Lifetime employment (Sano, 1995)
Loyalty is formed via individual/personal relationships rather than towards an organization (Kim and Briscoe, 1997)
ON THE COVER
3 MARCH 2012 ZARA
ENTERING THE ASIAN MARKET
Organisational Culture
Zara's Culture
Teamwork
Sharing credit
Fresh: Team members are switched around to keep ideas fresh
Respectful
HR has a presence
Asian Organisational Culture trends:
Focus on harmony & teamwork (Zhu et al., 2007)
Company is seen as the 'family'
Enteprise labour unions (Sano, 1995)
Traditional management styles
Asia has religious diversity (Bhopal and Rowley, 2002)
ON THE COVER
3 MARCH 2012 ZARA
ENTERING THE ASIAN MARKET
Other Recommendations
Management group need to leverage knowlede and experience from established groups in the region and have a blend of local experts and experienced Zara managers (Guzman et al., 2011)
HR must have extensive network connections in order to have a presence and subsequently be effective. Confuxian philosophy (guanxi) (Guzman et al., 2011)
Management must alter the Asian perception of HR being a female role (Guzman et al., 2011)
Management must reaffirm the benefit of HR as many Asian organisations are, "HR fatigued" due to experimentation over the past decade (Zhu et al., 2007)
Asian employers are normally hesitant to dismiss employees at the risk of disharmony in the workplace and community. Because of this, management must actively manage poor performance and support managers (Zhu et al., 2007)
Recommendations:
A hybrid approach to promotion that considers tenure and individual performance
Workforce planners must generate a new staffing model that considers 'selling area' in asian stores will generally be smaller.
HR needs to identify teams, not individuals, on merit and support their development.
Recommendations:
Store/group incentives to identify design flaws
Develop career pathways and development plans to enable lifetime employment
Western management is to be upskilled in forming personal relationships with staff
Recommendations:
Zara needs to reastablish an Asia specific corporate culture, focusing on Zara as 'family'
HR policies need to be adapted to suit a religiously diverse workforce
Management development needs to occur, integrating traditional management styles with contemporary ones
Full transcript