MARKS AND SPENCER

Marks and Spencer



Marks and Spencer

Introduction

The Company to be examined is Marks and Spencer Retail Company. It is one of the largest retail chains in the UK with over sixty thousand employees under its wing. Employee relations within this company are a combination of both positive and negative aspects. (M&S, 2007a)

Over the past several years, interest in the use of public pension fund ratings has increased. A pension fund rating, like other credit ratings, is an opinion on the capacity of the retirement system to meet its financial obligations. One of the major credit rating agencies uses two basic types of pension fund ratings: credit enhancement program ratings and counterparty or issuer ratings. Public pension funds are using the credit enhancement program ratings to support credit enhancement strategies and activities that help to maximize use of their assets. Counterparties use issuer ratings on public pension funds to quantify counterparty risk related to complex financial transactions.

A number of public pension funds have engaged in credit enhancement activities through which they substitute the fund's creditworthiness - its ability to meet its obligations under an enhancement program - for the credit rating of another entity, either public or private. Such transactions can function in the same way as a letter of credit from a commercial bank or an insurance policy from a bond insurance company; however, they are based on the creditworthiness of the pension fund instead of the bank or insurer. In return for the extension of credit, the fund receives a fee, generally on an annual basis. These fees are a source of incremental income, over and above the normal investment and contribution revenues of the fund.

Organizational background

Marks and Spencer is largely a UK based organisation. Consequently, the employee relations adopted by the Company were British style.  In the eighties and early nineties, the company was characterised by a tense relationship between members of the organisation and their superiors.

However, with fast technological developments and greater linkages between various countries around the world, there was greater competitiveness in the retail sector thus creating a need to adopt less adversarial approaches to employee relations. The Company realised that they had to engage their employees a little more. This led to some of the present staff management practices adopted by the company.  The company has tried instituting some sound principles within management but there are still certain problems here and there. (M&S, 2007b)

Part (a)

Past external influences

Changes in working hours

In the past, there were no cases of Sunday trading. Workers in the retail sector counted on the fact that their work arrangements did not necessitate additional efforts. However after introduction of Sunday trading in the UK, there was a need for all retail companies to adjust their employee schedules to suit this change. Marks and Spencer was no exception; in response to this change, it created flexible hours for its employees so that it could allow employees to balance their social life with their ...