Management Control of H&M
Management Control:
1) Identify and discuss the control alternatives used in the selected company. Is each form of control loose or tight? What is the overall impression of the selected company’s Management Control System? Why?
1- People Controls
a) Personnel controls:
Selection:
Personality is the most important asset that H&M employees have. H&M believes that people who are allowed to be themselves do a better job, which is why H&M welcomes diversity and personal style.
H&M believes in theirs people, and always encourage new ideas and initiatives.
Over the last five years,H&M growth created a net job contribution of accumulated 24,019 full-time equivalent jobs globally. This amounts to an average net creation of more than 4,800 jobs or 10% per year.
Training: In 2010 H&M introduced a new programme for all employees, the H&M Incentive Program, which aims to encourage long term commitment and support future recruitment. This program prevents myopia.
All employees of the H&M group, regardless of their position or salary level, are included in the programme and are rewarded to the length of their employment and whether they work full-time or part-time.
The rapid expansion of H&M requires ensuring that all employees are welcomed into the organisation in a consistent, efficient and high quality manner. H&M offers a blended approach to training, whereby e-learning and classroom sessions are combined to create a teaching methodology that is easy to duplicate internationally. H&M strives to make relevant training tools as accessible as possible to its target groups.
b) Cultural Controls:
* Code of conduct
Of particular importance is that management documents such as internal policies, guidelines and manuals exist in significant areas and that these provide the employees with solid guidance. Within H&M there exists above all a Code of Ethics; a policy that permeates the en- tire
1) Identify and discuss the control alternatives used in the selected company. Is each form of control loose or tight? What is the overall impression of the selected company’s Management Control System? Why?
1- People Controls
a) Personnel controls:
Selection:
Personality is the most important asset that H&M employees have. H&M believes that people who are allowed to be themselves do a better job, which is why H&M welcomes diversity and personal style.
H&M believes in theirs people, and always encourage new ideas and initiatives.
Over the last five years,H&M growth created a net job contribution of accumulated 24,019 full-time equivalent jobs globally. This amounts to an average net creation of more than 4,800 jobs or 10% per year.
Training: In 2010 H&M introduced a new programme for all employees, the H&M Incentive Program, which aims to encourage long term commitment and support future recruitment. This program prevents myopia.
All employees of the H&M group, regardless of their position or salary level, are included in the programme and are rewarded to the length of their employment and whether they work full-time or part-time.
The rapid expansion of H&M requires ensuring that all employees are welcomed into the organisation in a consistent, efficient and high quality manner. H&M offers a blended approach to training, whereby e-learning and classroom sessions are combined to create a teaching methodology that is easy to duplicate internationally. H&M strives to make relevant training tools as accessible as possible to its target groups.
b) Cultural Controls:
* Code of conduct
Of particular importance is that management documents such as internal policies, guidelines and manuals exist in significant areas and that these provide the employees with solid guidance. Within H&M there exists above all a Code of Ethics; a policy that permeates the en- tire