ZARA HR Practices

 
KOSTUBH KAKKAR (BFT/17/567)
NEELAKSHI SRIVASTAVA (BFT/17/374)
Dr. RISHIKESH KUMAR PRIYAL SAXENA (BFT/17/475)
PROFESSOR SUKIRTI ARYA (BFT/17/796)
SUMEDH PRAKASH SINGH
(BFT/17/2015)
 INTRODUCTION
HR Practices
 
HR practices are the means through which your human resources personnel can develop the
leadership of your staff. This occurs through the practice of developing extensive training
courses and motivational programs, such as devising systems to direct and assist management in
performing ongoing performance appraisals

HR Practices include
•HR Planning
•Recruitment & Selection
•Induction
•Training & Development
•Performance Appraisal
•Career Planning
•Fringe Benefits
•Reward & Recognition
•Safety, Health and Environment Policy
•Suggestions Scheme
•Promotion & Transfers
•Exit Policy
 Human Resource Management Process
Human Resource

Recruitment Decruitment

Selection

Identify & select competent employees

Orientation

Training

Provide employees with up-to-date skills &

knowledge

Performance Management Career Development

Retain competent &

Compensation & Benefits high-performing
employees
 ZARA
•Zara SA is a Spanish apparel retailer based in Arteixo in Galicia.

•The company specializes in fast fashion, and products include:-

clothing, accessories, shoes, swimwear, beauty, and perfumes.

•It is the largest company in the Inditex group, the world's

largest apparel retailer.

•Zara stores have men's, women's, children's clothing (Zara Kids).

• Zara's products are supplied based on consumer trends.

•After products are designed, they take ten to fifteen days to reach
the stores.
 Long :- Term Strategic Goals of ZARA

ZARA has more or less the same growth than H&M and it base her
focus in:

• Sustaining competitive advantage as “fast fashion”; using incremental

innovative strategy by utilizing information technology.
Example: RFID tags.

• Invest more in information technology and mobile technology; in

order to keep up with economy since its quickly improving due to
technological improvements phone apps improving lifestyle in first
world- countries.
Globally:
- Store managers - 70% of salary come from
commission.
- Individual bonus - the success of the team.
-Training program and avenue for career
development.
- Health insurance and retirement plan.
- 15% discount.
- Annual trip/ gathering.
- Tuition reimbursement.
- Business travel.

Zara Spain:

- Employee’s card (25% discount).

- Management development training program.
- Rapid career progression.
- Annual trip/ gathering.
- Reimbursement 8transportation and phone call.
- Health insurance and retirement plan.
- Hand-phone, car, private driver, apartment for expatriate managers.
 CASE STUDY DESCRIPTION OF ZARA

Abstract :-

•In this case study the relationship between the HRM frames of the HR
professional and the line managers have been analysed together with the
level of employee trust in the HRM system at Zara, a large international
retail company in the Netherlands.

• A mixed methods case study has been conducted at three business

units of Zara. Semi-structured interviews were conducted with 7-line
managers and 1 HR manager, together with survey questionnaires among
employees and document analysis.

•The findings revealed there was observed congruence between the HRM
frames of the HR professional and line managers.
•Thus, this research has revealed the existence of a relationship between
congruence in HRM frames and employees’ trust in HRM.

•In addition, the study proved that good congruence between the two
groups resulted in a relatively high level of trust among employees in the
company.
 Management Summary

Purpose of the Research

•This research departs from the idea that one of the main
conditions for HRM success is that HR professionals and
line managers perform people management in
congruence with each other.

•Line managers become more responsible for the

implementation of HR practices, due to the devolution of
HR responsibilities to the line.

•The purpose of this study is to explore the link between

shared HRM frames of HR professionals and line
managers and employees’ trust in HRM.
 Case Study
Zara was selected as the company to be studied. The people
management at Zara can be traced to the Control oriented HRM
system that aims to improve efficiency, by enforcing employee
compliance with specified rules and procedures.

The strategic objective of this control-oriented HR system is to

increase employee efficiency and productivity through greater
emphasis on rules, regulations, and close monitoring to regulate
employee behaviour.

For Zara, this Control oriented management system goals are to

maintain order, a structured organization, and clarity in rules and
procedures among all the organization members to focus
eventually on the product in order to increase the sales
performance and stimulate growth of the business units
worldwide
 Recommendations to ZARA
•Develop a higher advanced TGT system regarding the registration of
hours and other information concerning HR tasks.

•This saves a lot of time and calculations that can be used to focus
more on the products in the business units.

•In this way, the employees can login and register their hours themselves.

•Regarding applying for holidays, it saves a lot of disappointments

among employees and managers if there are less blocked off
times in which they are not allowed to take vacation time.

• A proposal is to leave the vacation scheduling to the line, as they are

very well aware in which periods, they need to employ their human
resources and in which periods they cannot be missed.

•Scheduling more time for training sessions to train both managers and
employees.
 HUMAN RESOURCE MANAGEMENT IN ZARA
• Ability to make decisions in a short time
• Team of young designers and open mind
• Transmit a young, modern and successful image of the company.
• Promote teamwork
• Continuous training
• High self-demand
• Distribution of employee shares
 HUMAN RESOURCES STRATEGY IN ZARA
The human resource at Zara are one of the components behind the unique efficient and quick
response system. People are highly motivated which reflects Zara HR policy. This part of the
project focuses on how the operations on Human Resources Department of Zara are carried out:
right from :-

•Talent acquisition

• Learning and Development

• Workforce Planning

•Rewards and recognition programs

•Organizational culture versus local culture

Ensuring that ZARA has a better working environment and highly skilled employees to provide
better services to the customer
 Talent Acquisition
Talent acquisition refers to the process of
identifying and acquiring skilled workers to
meet your organizational needs.

The Talent acquisition team is responsible

for identifying, acquiring, assessing, and
hiring candidates to fill open positions
within a company.

Selection and recruitment process

Recruitment is defined as the process of
identifying and making the potential candidates
to apply for the jobs. 

Selection is defined as the process of choosing

the right candidates for the vacant positions
How often do ZARA hire new people?
•From Feb. 2014 until Jan. 2015, Inditex created 8741 new jobs around the world
•Internal promotion: 40%
•External recruitment: job sites, fashion shows, universities, business & design schools, job fairs,
head-hunters, workshops, and though social media.

Training and development

ZARA wants to promote:

•Internal promotion.

•Training and development.

•Evaluation of performance.

•Constant adaptation to the

business
 INTERNAL PROMOTION PLANS
•Inditex is constantly growing and evolving.

•We are commited to internal promotions.

• This is particularly evident in the stores, our business core

•where almost half of Inditex’s product managers and product

department heads started working with us.

•Inditex strongly believes that its stores are a prime source of

talent, very well attuned to its customers’ needs.
INTALENT
Intlent is a system designed to reach out to our store employees and get to know them better by
centralizing the information on their curricula.
 PROJECT GO !
•Project Go! was created in 2013

•As a way to identify, select and develop promising young talent both inside and outside of the
company to fill openings on Zara’s teams.

•Zara Go! was originally developed in response to the needs of the Zara product teams in the
various countries.

•But the programme caught on quickly and successfully, and every year it has expanded to other
product teams and areas.
 Training for internal teams
•We encourage the growth, development and promotion of our employees by investing in
training.

• All of the Inditex Group’s areas of activity offer specific technical or skills-based training
programmes which vary by specialization .
 Attracting talent
•Our Group’s cycle of internal promotions and
employee training is completed by our talent
attraction strategy, the cornerstone being the Inditex
Careers website.

• In 2015, Inditex Careers replaced its predecessor,

Join Fashion, with the goal of centralizing and
channelling job offers from all of the Group’s areas
of activity.

FASHION SCHOOL VISITS

•2011 we began to visit and learn about some of the best

fashion and management schools and universities
in Spain and abroad.

• We currently have a network of 600 designers for the

different brands
 FOR & FROM PROJECT
•The for & from Project is a socially innovative programme run by Inditex to provide jobs for
people with disabilities.

•The model is based on supplying clothing and accessories from past seasons, which are sold at
reduced prices by the franchised social organizations.

•Inditex’s initial donation to build the store, the model sustains itself through product sales

•The for & from project currently generates 95 job positions, 75 of which are filled by people
with disabilities.
 ROLE OF HRM IN THE SUCCESS OF ZARA
The success depend necessary of the context with the region where will be the stores and
shops.

ZARA needs to adapt to the Culture forming: Teamwork, sharing credit, fresh ideas, respectful.

Managing Diversity in teams and groups ZARA

Management group need to leverage knowledge and experience from stablished groups in the
region and have a blend of local experts and experienced ZARA managers.

In effect, HR must have extensive network connections in order to have a presence and
subsequently be effective in each region where the company is implanted. ZARA, as equal of
H&M, has to meet the culture for adapting her own it.
 CONCLUSION

•It can be concluded that the company is growing rapidly and is opening its branches in many
parts of the world.

•ZARA has fully balanced the needs of autonomy, coordination and control and even maintained
the appropriate balance between them.

•The best part ZARA is that the employees can communicate freely and easily
THANK YOU