JOHN LEWIS PARTNERSHIP

John Lewis Partnership's strategic human resource management (HRM)



John Lewis Partnership's strategic human resource management (HRM)

Introduction

John Lewis Partnership, 3rd largest private company in the UK according to the Times in 2008, specializes in distributing high quality products with 27 John Lewis department stores for non-food and 170 Waitrose supermarkets for food; the group includes the direct services company Greenbee. Founded in 1864, the company became an employee-owned company in 1950, when the founder's son sold the title to a fund held by employees at a price well below market value. The participatory system allows sharing between the partners not only responsibilities but also advantages - profits, information and power (www.johnlewispartnership.co.uk).

The business organization is primarily based on partnership and shared responsibility with employees: each employee has the opportunity to influence the company through industry forums and in the stores, each major unit operational group has its own body of participatory decision. All partners are represented by the Partnership Council group (82 people, 80% elected by employees) employees who appoints five members to the Board and who has the power to dismiss the President (www.johnlewispartnership.co.uk). In the cooperative model of society has developed John Lewis, there are no outside shareholders and all shares are held in a specially created fund for employees.

Regarding the sharing of profits, employees receive an annual bonus, calculated according to company profitability and by the same percentage, whatever the hierarchical level.

John Lewis Partnership, one of the leading department store chains in Britain, has set new standards for highly efficient order picking in a “multichannel” thanks to the launch of its new distribution center “Magna Park” fully automated, located near the town of Milton Keynes.

Discussion

The purpose of this paper is to enlighten and explore the significance of human resource management in John Lewis Partnership (JPL). This paper aims to enlighten different perspectives of human resource management; in addition, the paper discusses that the human resource management is concerned with employee management in JPL. Human resource management is a dynamic field, evolving quickly from its early focus on understanding the patterns of impact of HRM practices and systems on performance to embracing the mediating mechanisms. At the same time, researchers in this area continue to push the boundaries of what we know and are engaging in exciting research that delves deeper into the mediating mechanisms of how HRM systems work. The definition of HRM reinforces the notion that HRM practices create valuable resources within the firm that are capable of producing competitive advantage through people. Human resources management (HRM) is a term that encapsulates the approach and process of managing people who work for an organization. This work can be either paid or undertaken in a voluntary capacity. HRM frames all people-related matters within an organization, including planning for new appointments, recruitment and selection, induction, performance management, reward and incentive structures, training and development, and when and how to let people go. Effective HRM is a vital component in the operation and success of any sport ...