There is a disconnect from management beyond the store level to that of the store level management and sales associates. Communication is handed down via conference calls and second hand name dropping rather than utilizing memorandums or written documents.. Training information is outdated as far as methods of training. The inventory tracking process is archaic, the POS systems are nearly 20 years old, there is no way for a salesperson on the selling floor to call other stores from the floor to check on product availability. Sale prices do not automatically ring up when an item is scanned at the register, leaving potential for loss or fraud. Also, the methods of preventing fraudulent refunds are too simplistic and don't really allow for true loss prevention, just holding up lines.
The organization relies heavily on faxes and makes limited use of email. There is a great deal of paper driven activities within the stores rather than automated programs like Microsoft Excel or Access.. The margin for human error is tremendous and the resulting high shrink numbers are preventable with some carefully measured investments into the Operational infrastructure. H&M has great potential as a brand, but loses that behind the scenes and thus its integrity with its team, resulting in stressful situations,high turnover, and less retention of engage employees.
The HR areas of progressive discipline are not clearly defined in many areas and subject to one person's interpretation rather than a specific, clearly detailed policy. Infractions that one could be held accountable for are vague, at best. Also performance reviews are not specific, consistently issued on time, and merit increases are not always above cost of living increases, there are none for 2009 for the company, but this information was not widely broadcast. While there is a process in place for promoting internal candidates, the process for ongoing career development and goals are not followed and there is little or no mentoring at the store level.
