WESTMINSTER BUSINESS SCHOOL
HUMAN RESOURCES MANAGEMENT
SEMESTER 2 2014-2015
COURSEWORK ASSIGNMENT - CASE STUDY
HIRING PRACTICES OF ABERCROMBIE AND FITCH
Student Name: Sze Keat CHEONG
Student ID: W153 9934
TABLE OF CONTENTS
1.1 COMPANY BACKGROUND
1.2 STATE OF THE PROBLEMS
2. CRITICAL EVALUATION ON KEY ISSUES
An ethical HR hiring practice in the organisation is playing an important role in the competitive business environment today. The report critically analyses on how Abercrombie and Fitch as a global organisation, on what appropriate implications will lead to a better equality and diversity organisation, and also the current methods of recruitment and selection. Moreover, three recommendations have been proposed which the management could be taken in account to implement in the future for better outcomes.
Keywords: hiring practices, ethical, discrimination, equality, diversity, recruitment, selection
1.1 COMPANY BACKGROUND
David T. Abercrombie and Ezra Fitch founded Abercrombie and Fitch (hereafter refers as A&F) in 1892 in the Manhattan borough of New City. A&F is casual, all-American clothing that focuses on casual young consumers with laidback sophistication with their headquartered in New Albany, Ohio and expanding internationally.
The company operates three different concept brands currently; Abercrombie kids targeting consumers aged 7 to 14, which is the children’s version of A&F, whereas Hollister Co is targeting consumer aged 14-18, which price range lower than their parent’s brand. (Abercrombie and Fitch. 2012) Also, with the tagline ‘all-American brand with Sydney sensibility’; A&F’s cheeky’s cousin, Gilly Hicks’ stores were closed on March 2014 due to unfavourable revenue and currently they are still selling at Hollister Co. (Olivia, F. 2013) On the other hand, all of Ruehl No.925 stores were closed on January 2010 due to economic environment. 1.2 STATE OF THE PROBLEMS
There were numerous business problems about A&F, specifically on ethical issue such as equality and diversity. Some of the issues were refused to hire employees with head scarf, keeping disabilities employee at the low-visibility, like back-of-store- jobs, cleaning up and stocking, explicit sexual marketing tactics, refused to donate unsold cloths to charity, focused on seeking to hire women and minority racial and ethnic groups, all-American and largely white employees, exclusionary marketing by limiting the biggest shirt size and pants to size 10, and the store entrances are not even wheelchair-friendly. (Sadie, W. 2013) In addition to these, the controversial chief executive officer of A&F, Mike Jeffries and the management team are not considerate how to benefits the entire society as a whole by throwing out the statement;
“A lot of people don’t belong (in our clothes), and they can’t belong. Are we exclusionary? Absolutely.” (Jim, A. 2015)
In addition, A&F’s applicants need to be good-looking, cool in order to consistently portray of their brand image. Thus it is discrimination and violate under both EU and UK law, this can be illustrated by the case of A&F involved in court case as they fired the existing employee who refused to remove her scarf, (Ethical Consumer, 2013) which under the Equality Act 2010 of protected characteristics.
In order to remain the best position on the market amongst the dominant players in clothing industry, it is not the appropriate business strategies being implemented and continuously carries on. If this current issues remain unsolved, A&F will suffer or lose their market share, or competitive advantages in terms of branding and as a clothing big players in near...
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