,HRM3701 PORTFOLIO SEMESTER 1
DUE DATE: 12 JUNE 2026
QUESTION 1:
HR Issues Analysis at MKN Fashion (6 marks)
MKN Fashion is experiencing several interconnected human resource management (HRM)
challenges that reflect the difficulties of managing growth from a single store to a national
retail chain. The case highlights weaknesses in recruitment and selection, workforce
planning, job design, employee retention, HR systems, and overall operational efficiency.
These issues collectively contribute to employee dissatisfaction, high turnover, and
declining organisational performance.
1. Ineffective Recruitment and Selection Practices
One of the key HR issues is the lack of a standardised recruitment and selection process.
MKN Fashion relies mainly on employee referrals and, when necessary, external
recruitment agencies such as PNet, Kelly, and Careerjet. While referrals may reduce costs
and speed up hiring, over-reliance on this method limits access to a diverse talent pool and
may lead to informal and biased selection outcomes (Armstrong & Taylor, 2023).
In addition, interviewing practices are inconsistent across the organisation, as each
manager conducts interviews differently. This results in unequal selection standards and
raises concerns about fairness and reliability. The case further shows that hiring decisions
have previously been based solely on interview performance, which is problematic because
interviews alone are subjective and do not always predict job performance accurately
(Dessler, 2020).
2. Lack of Strategic Workforce Planning
, MKN Fashion follows a reactive recruitment approach, meaning employees are only
recruited once a vacancy arises. This indicates weak or absent human resource planning.
Reactive staffing is inefficient in growing retail organisations because it does not anticipate
future labour needs, seasonal demand, or expansion requirements (Boxall & Purcell, 2022).
As a result, stores are often understaffed, and employees are required to perform multiple
roles such as sales, merchandising, and stock control. This reflects poor workforce
forecasting and inadequate planning for organisational growth.
3. Employee Overload and Poor Job Design
Employees are experiencing excessive workloads due to limited staffing levels. The
requirement to perform multiple roles indicates poor job design and a lack of clear job
descriptions. Poor job design leads to role overload, stress, and reduced productivity, which
ultimately affects service delivery in retail environments (Robbins & Judge, 2021).
The case clearly indicates that employees are struggling to meet deadlines and are feeling
overworked, which contributes to dissatisfaction and turnover.
4. High Employee Turnover and Retention Problems
Although MKN Fashion offers competitive salaries and benefits, it continues to experience
high employee turnover, with skilled employees leaving for competitors. This suggests that
monetary rewards alone are not sufficient for retention. Non-financial factors such as
workload, career development opportunities, and job satisfaction are being neglected
(Armstrong & Taylor, 2023).
The loss of key employees also increases recruitment and training costs, placing additional
financial strain on the organisation.
5. Inefficient HR Systems and Manual Processes
DUE DATE: 12 JUNE 2026
QUESTION 1:
HR Issues Analysis at MKN Fashion (6 marks)
MKN Fashion is experiencing several interconnected human resource management (HRM)
challenges that reflect the difficulties of managing growth from a single store to a national
retail chain. The case highlights weaknesses in recruitment and selection, workforce
planning, job design, employee retention, HR systems, and overall operational efficiency.
These issues collectively contribute to employee dissatisfaction, high turnover, and
declining organisational performance.
1. Ineffective Recruitment and Selection Practices
One of the key HR issues is the lack of a standardised recruitment and selection process.
MKN Fashion relies mainly on employee referrals and, when necessary, external
recruitment agencies such as PNet, Kelly, and Careerjet. While referrals may reduce costs
and speed up hiring, over-reliance on this method limits access to a diverse talent pool and
may lead to informal and biased selection outcomes (Armstrong & Taylor, 2023).
In addition, interviewing practices are inconsistent across the organisation, as each
manager conducts interviews differently. This results in unequal selection standards and
raises concerns about fairness and reliability. The case further shows that hiring decisions
have previously been based solely on interview performance, which is problematic because
interviews alone are subjective and do not always predict job performance accurately
(Dessler, 2020).
2. Lack of Strategic Workforce Planning
, MKN Fashion follows a reactive recruitment approach, meaning employees are only
recruited once a vacancy arises. This indicates weak or absent human resource planning.
Reactive staffing is inefficient in growing retail organisations because it does not anticipate
future labour needs, seasonal demand, or expansion requirements (Boxall & Purcell, 2022).
As a result, stores are often understaffed, and employees are required to perform multiple
roles such as sales, merchandising, and stock control. This reflects poor workforce
forecasting and inadequate planning for organisational growth.
3. Employee Overload and Poor Job Design
Employees are experiencing excessive workloads due to limited staffing levels. The
requirement to perform multiple roles indicates poor job design and a lack of clear job
descriptions. Poor job design leads to role overload, stress, and reduced productivity, which
ultimately affects service delivery in retail environments (Robbins & Judge, 2021).
The case clearly indicates that employees are struggling to meet deadlines and are feeling
overworked, which contributes to dissatisfaction and turnover.
4. High Employee Turnover and Retention Problems
Although MKN Fashion offers competitive salaries and benefits, it continues to experience
high employee turnover, with skilled employees leaving for competitors. This suggests that
monetary rewards alone are not sufficient for retention. Non-financial factors such as
workload, career development opportunities, and job satisfaction are being neglected
(Armstrong & Taylor, 2023).
The loss of key employees also increases recruitment and training costs, placing additional
financial strain on the organisation.
5. Inefficient HR Systems and Manual Processes
