H&M Organisation

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Lillebaelt Academy of Professional Higher Education MM 226

Organisation Communication Semester I, October 2012

SEMESTER PROJECT – H&M

Stoian Ioan Stefan Soc. Reg. Nr. 300693-3397

Keystrokes: 21.663 Teachers: Casper Christensen Mary.M.I Sønderlund

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Table of Contents

Executive summary ........................................................................................ 3 1.0 Introduction ............................................................................................4 1.1 Problem Statement ..................................................................................4 1.2 Delimitations ...........................................................................................4 1.3 Report structure ......................................................................................4 2.0 Methodology ............................................................................................5 3.0 Analysis ..................................................................................................5 4.0 Discussions .............................................................................................8 5.0 Conclusion ..............................................................................................8 6.0 Bibliography ...........................................................................................9 7.0 Appendices ............................................................................................. 9 7.1 The log ...................................................................................................9 7.2 Social contract ........................................................................................9 7.3 Memos ....................................................................................................9

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Executive summary

Hannes was opened in 1947 in Västerårs, Sweden, it was a women clothing store. In 1968 , Erling Persson bought Mauritz Widforss, a hunting store located in Stockholm. Since 1968, the company was called H&M. In 2012, H&M exists in 47 international markets, it has over 2600 stores all around the world and over 94.000 employees. The company is ranked the second largest global clothing retailer. This report gives an insight into the internal organizational and motivation factors of employees which influence H&M growth. The basis for this report is an analysis of the organizational structure and theoretical factors motivating of H&M. First, H&M is a tall organization, because it has a big number of managers how has a low number of subordinates and the relationship between them is informal. Secondly, H&M`s structure contain the 2 types of organizational design: Mechanistic and Organic. Finally, motivation factors are maybe the biggest part of the interpersonal relationships which influence the company success. H&M encourages employees to try many roles within their organization and provides them new challenges, for example in another department or another country. The company also gives priority to an internal recruitment in that way employees can easily evoluate in the hierarchy. They ensure that work conditions and atmosphere are favorable to motivate employees. This report conclusion is that employees of H&M are very well motivated in their work. For a future development H&M will thank employees with the same motivated factors, but the structure of the company will increase because H&M is in a continue growing. “H&M’s growth target is to increase the number of stores by 10–15 percent per year.”

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1.0 Introduction
In a world of fashion, where t rends change in every day and the image of your own person matters, H&M pleased the needs of every person with their product s and their motto: “low prices and good quality”. Not always H&M was a global company, but like any other company, they started from a lower level. The first store was opened in 1947, in Västerårs, Sweden. This store was a...
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