“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
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The buyer
Case study example: NEXT
Overview/ conclusion
References
Student activity
Questions
INTRODUCTION
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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)
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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
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there is not a best way of doing either
Organisational culture
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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
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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)
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Cultural analysis level
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Observable behaviour

values

beliefs
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eg Safeway changing culture
HRM & Purchasing
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Human resource management has an
impact on all parts of a business/company

The focus now is on the purchasing
department (Buyer)
Purchasing
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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
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Role of the buyer
further responsibilities
skills in the procurement function
interpersonal skills
technical skills
roles in the purchasing/buying centre
Next
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Buyer qualities:
Manages
Delegates
Recruits
Motivates
Monitors
Going back to the question……..
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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

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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
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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
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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
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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
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RUBYE
NAMHU
CUROSREE
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