Questions

This case describes the complex organizational issues facing Marks and Spencer. Assess the following HRM issues for the company.

1. What might be the strategic HRM issues facing the company in deciding to create business units?

2. To what extent does the company need to overhaul the relationship between HRM and its core businesses?

3. Using the styles and approaches to HRM outlined in this part, suggest a suitable HRM approach that Marks and Spencer might adopt for the medium term.

the picture has the case study info

AT A CRUCIAL TIME-FEARS OF DOUBLE-DIGIT FALL IN SALES M\&S to split into seven business units. By Susanne Yoxle Marks and Spencer yesterday reshumed its mantagement and split the group into seven business units to improve its focus on customers. M\&S, which has suffered a dramatic fall from grace in the fiercely competitive UK retail environment, has changed the job description of three board members and appointed seven executives just below board level to head the new units. The news came at the start of the crucial pee-Christmas trading week. M\&S is believed to be suffering a steep fall-off in sales as rivals slash prices. The group has refused to comment ahead of a trading statement due in January. But people close to the company believe the fall in like for-like sales has hit double digits. The group has yet to make its most eagerly awaited appointment - that of a chairman to replace Sir Richard Grsspbuck, who took early retirement in the summer. Shares in M\&S, currently the center of bid speculation, rose 31/4 points to 2773/4 points. Last week, Philip Green, the retail entrepreneur, admitted he was considering a bid after the group's shares jumped on repeated rumors. M\&S yesterday stressed that the management changes were not a reaction to the possibility of a takeover. "The changes are a continuation of the move to more customer focused, flater structures which were announced with the interim results in November,' it said. M\&S said the new business units would each be fully profit accountable. 'This means no one underperforming part of the business will be able to hide behind results of the group as a whole, said one insider. The biggest change comes for Barry Morris, formerly head of the food division, who has been put in charge of womenswear retail. Guy McCracken and Joe Rowe saw their roles changed slightly to reflect the devolution to buying power to the new business units. The group has been split with immediate effect into retail units for womenswear, menswear, lingerie. children's wear, home, beauty and food. The heads of each unit will report directly to Peter Salsbury, chief executive. Most of the unit beads are long serving M SS employees, in line with the group's tradition of promoting from within. But there are fwo exceptions. Rory Scott, who heads lingerie, joined the group less than two years ago from logistics group TNT, while Jacqueline Paterson, at beauty, joined from Boots just four months ago. The changes left some analysts unimpressed. 'In the middle of one of the most important trading weeks in the calendar they have decided to reshuffle the deckchairs," said one. Another said: "Most people don't know the insiders at M\&S well enough to know whether changes like these will make any difference." Some institutional shareholders said the changes were unimportant while the chairmanship remains vacant. 'The only interesting news will be when they appoint a chairman, and we don't know when that will be,' said one. M\&S yesterday repeated that it had a preferred candidate and hoped to announce an appointment in the New Year