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Human Resource Management at Mitchells and Butlers

Paper Type: Free Essay Subject: Business
Wordcount: 2484 words Published: 1st Jan 2015

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For the completion of this assignment many of the resources have been used and analysed. Books for the libraries and information from the internet have been a major source of information. The data and the information have been collected from all the secondary sources. I have not used any primary source of information as personal interview or direct phone calls or have not taken any questionnaire approach.

Internet has been a major source of information as most of the information has been acquired from the internet. Along with that, books related with the courses and the course book itself has been useful for the preparation of the assignment.

Table of context

Introduction of HRM, changing role of business


How HRM helps in productivity………………………………………….1-3

Psychological contract………………………………3-4

HR planning and Strategy……………………………4-8




Human resource management is about how to manage the people and their activities, which helps to mobilise the other resources like financial, social and technical etc.

“Human resource management is an idiosyncratic come within reach of to employment management which seeks to accomplish bloodthirsty improvement through the strategic exploitation of a highly unswerving and proficient work force using an incorporated array of cultural, structural and personnel techniques.”(Storey, 1995)

Basically there are three models in the HRM. These are as follows:

According to hard model, HR policy should be linked or aligned with the organisational objectives or strategy .So to achieve productivity of the company HR need to integrate with organisational objective. However, according to soft model productivity is not possible until and unless organisation gain commitment from the employee. But sometimes HR also consider about the people which mobilize the other resource so they need to develop their employees mind, skills and ability which is about the resource model of HRM.(Armstrong M, 2009)

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The organization and staffing of the HR function clearly depends on the size of the business .Every company want to get more profit from their investment so they need to use good hr strategy like out sourcing and bringing new technology in the business which should be faster and the cheapest for the company work ,greater use of electronic HRM giving more responsibility to line managers, outsourcing transactional or routine activities and the evolution of employment regulations so that the HRM role is changing every day.(Camen-Muller M. et.al.2008)

Role of HRM in organisational productivity

The main aim of the company is optimized the maximum resources and get more profit so HRM policy need to be fit with company strategy .consequently HRM always want to use new method in the organization which should be help in company growth .The main function of the HRM are as follows:


Staffing (recruitment and selection)

Training and development

Performance objective (appraisal and rewards)

Change management and administrative objectives.

Introduction about the Company

Mitchells and butlers is the uk’s leading operator of managed pubs and pub restaurants. They offer food, drinks, entertainment and accommodation to their customer nationwide. It listed on the London Stock Exchange in April 2003 and is a member of the FTSE250.Mitchells & Butlers has a high quality manor, decided on the long-standing enlargement in the informal eating out market where MAB pubs are well placed to detain an unbalanced share.

Every time they are trying to use new method and technology and they are also careful to the customer’s satisfaction, long term growth and the company brand. So they are using new HR function to their company. These are as follow

Function of HRM

Recruitment and selection: It is the process of having the right person in the right place at the right time. It is vital presentation to organizational performance. It is an essential activity, not just for the HR team but also for line managers who are more and more concerned in the selection process. There is some point which is the step of recruitment and selection these are;

Identify the role

Attracting applications

Application and selection process

Making the appointment

It is the most important factor of HR function ,Their target is choose the right people to the right position if they choose right person they can help to company productivity because they will do the good job in a company and company growth will be increase. According to the Mitchell and Butlers they are using interview method in their selection process. Most of the company are using this method because they want to know about the employee behave their activities, style, cultural .and they can easily find out, they are fit in the company or not?


Training and development: Training and development strategy is intended to support the accomplishment of business goal promoting by human capital improvement. It is also about the skill and knowledge about the employee, what type of skill they want and what type of training they want? They need to consider about their interest because of if employee does not happy with their work it will affect in the company aims. So training and development process provide the skeleton for human being and self directed learning, As a result everyone in the company could be optimistic and given the occasion to learn to develop their skills and gen to the highest of other ability.

Nowadays every company are using the new technology in their business about this training and development they started to give online training like video conference because of the cost every company want to minimize their cost and they want to increase the company growth.

Appraisal and reward: It is about the employee motivation like promotion staff facilities, free insurance, promotion etc.HR manager also consider about this thing because if employees are happy they can do the good job and their progress will be increase. According to the Mitchell and Butlers they are providing them staff bonus every month and if somebody did the good job they will give them extra benefit like increase the pay and promotion.

Psychological contract:

“The psychological contract is anxious with assumptions, exceptions, promises and joint responsibility. It creates stance and emotions which from and oversee deeds. It is also self-motivated it develops over time as understanding accumulates, member of staff circumstances change and employees re-evaluate their exceptions”. (Guestetal 1996)

About the employer’s point of view, it covers the employment relationship as an ability, endeavour, obedience, dedication and loyalty but about the employees point of view they want these thing:

Protection of employment

Attachment and pressure

Trust the management of the company to keep their promises. 3

Opportunity to develop their skills

According to the Mitchell and butlers they had good relationship between management teams and employees. So the success of the company depends on the people who work for the organization. They are proud of their staff and they would like to thank all their employees for their hard work and commitment. So that in this way all employees will be satisfy with their team work and they will be motivated. As a result company will achieve the goal.

HR functions depend upon the HR strategy……


Human resource planning at its essence is identifying the number of employees and skills required for the future and ensuring they are available to the organization when required. (Lecture handouts)

Strategy human resource management is about scientifically linking people with the organization. The strategic means company’s long term plan for how it will balance its internal strengths and weakness with its external opportunity and threats to maintain a reasonable benefit.

“Strategic human resource management is largely about integration and adaptation. Its concern is to insure that:

HR management is fully integrated with the strategy and strategic needs of the firm.

HR policies cohere both across policy areas and across hierarchies

HR practices are familiar, acknowledged and used by line managers and employees as part of their every day work”. (Schuler 1992)

The major three generic strategic are:

Innovative: High degree of inspired activities, long term focus, high risk and a judicious degree of concern for value.

Quality: recurring and predicable behaviours, more long term or transitional focus, low risk, high distress for method and worth.

Cost reduction: Short term focus, feature output, low risk, and individual motion primary concern for result. 4

HR strategy also find out from these two analyses, these are

Internal analyses: Swot (strength and weakness) and gap analyses

External analyses: Pest analyses


Strength: Strength is the power of the company but it depends on their resources like human resource, financial resource, quality product, good customers service and team work. Every company want to be strength in the market. So a business Strengths are its possessions and capabilities that can be used as a basic for embryonic an aggressive improvement. Such as:


Muscular brand names

Good character against customers

Approving access to allotment network

Weakness: Sometimes a weakness may be the flip side of strength. Some weaknesses are as follow:

Lack of patent security

High cost constitution,

Lack of the access the best natural funds

Underprivileged reputation among clients

A weak product name,

Opportunity: The external environment analysis may reveal certain new changes for gain and growth, these are:

Loosening of regulation,

Coming of new technology,

A discontented customers needs,

Removal of international trade barriers,


Threats: Changes in the external environment also may present threats to the company such as:

New Regulations,

Changing customers behaviour or test,

Materialization of alternative product,

Increased trade barriers (www.quickmba.com)


It is about evaluate between the present and future situation what are they doing now and what did they want to change in a future.  A breach is occasionally called “the autonomy flanked by where we are and where we want to be.” A gap investigation helps overpass that legroom by stress which requirements are being met and which is not. The tool provides a foundation for measuring the investment of time, money and human resources that’s required to accomplish a particular upshot. (Lecture handouts)

Desire future stages



Current position



Organisation activities

Gap analysis


Political: It is about the political situation about the company and how it affects in the organisation activities, when government change, they can bring the new rules, laws and regulation in the country and atomically it changed everything such as tax and council tax, so HR manager need to be consider about this point:

current legislation house promote 6

global legislation

government policies

government term and change

trading policies

funding, grants and initiatives

home market lobbying/anxiety groups

worldwide strain groups

Economic: Marketers require allowing for the situation of a trading financial system in the petite and extensive -terms. This is principally accurate when scheduling for worldwide advertising. Which are as follow?

Interest rates.

The level of price raises Service level per capita.

taxation explicit to product/services

unambiguous industry factors

market routes and division trends

Social: The community and enlightening influences on trade fluctuate from nation to nation. It is very imperative that such factors are painstaking. Factors embrace:

way of life trends


media views

law changes affecting social factors

brand, company, technology image

consumer buying patterns

fashion and role models

buying access and trends 7

ethnic/devout factors

Technology: Technology is fundamental for bloodthirsty improvement and is a chief driver of globalization. Regard as the subsequent points:

competing technology progress

investigate support

replacement technology/solutions

industrialized maturity and capacity

consumer buying mechanism/technology

familiarity legislation

innovation potential

expertise access, licensing, patents

rational property issues(www.businessballs.com/www.marketingteacher.com)



Mitchells & Butlers has a high eminence, well-located manor, focused on long-term expansion in the casual, value-for-money, eating and drinking-out markets. Their sales approach is based on four principal levers, providing their customers with: high-quality amenity; again and again great value; a wide choice of food and drink; and admirable service.

Their verified knowledge at every level, pooled with a pub estate of incomparable quality in prime locations, continues to convey on their scheme of pouring commercial quantity development and creating shareholder value.

As a summary the HR manager considers about these points, motivation (how to motivate the employee), performance management (increase personal development), recruitment and selection (how to choose the right people to the right place), training and development (increase their capability with training). After that organisation successfully achieve the company goals.



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