INDIVIDUAL ASSIGNMENT FOR MGT162

Prepared by: Muhammad Iyad Ameen Bin Mat Tena ‘ Ain

2021109321(BA1111C)

Prepared for: Madam Sutina Binti Junos

Acknowledgement
First of all I would like to thank to Allah SWT because of His Blessing it is possible for me to
finish this assignment with great determination. I also would like to thank to individuals who
helped me in complete this task. Firstly, I would like to thanks to my Fundamentals of
Management's lecturer, Madam Sutina Binti Jusoh. She had guided me on how to do this
assignment. Then, I would like to thanks to my father, who giving me his time to help me on
this assignment from the beginning untiI finish this assignment. He help me a lot by shared
his ideas.I also would like to thank the company of H&M Group for such a wonderful
contribution.I spent about three weeks to finish this assignment and I had used all my effort
andknowledge on this task. I hope my work will be well receive.

TABLE OF CONTENT
1.0 BACKGROUND OF COMPANY
2.0 PLANNING
2.1 Vision & Mission Statement
2.2 Types of Planning
2.3 Types of Operational Plan
3.0 ORGANIZING
3.1 The Organizing Process
3.2 Organizational Structure
4.0 LEADING
4.1 Power
5.0 CONTROLLING
5.1 The Controlling Process
5.2 Types of Control
6.0 CONCLUSION &
REFERENCES
1.0 BACKGROUND OF COMPANY
The H&M Group's history begins in 1947, when Erling Persson built his first store in
Västers, Sweden. Hennes (Swedish for "hers") was a boutique that only offered women's
apparel. In Norway, a store debuted in 1964. Persson purchased the hunting gear
business Mauritz Widforss in 1968, which resulted in the addition of a menswear range
to the product line and the name change to Hennes& Mauritz.The company was listed
on the Stockholm Stock Exchange in 1974. Shortly after, in 1976, the first store outside
Scandinavia opened in London. H&M continued to expand in Europe and began to retail
online in 1998 when bought the domain hm.com from a company called A1. The
commencement of the company's expansion outside of Europe was marked by the
opening of its first U.S. store on Fifth Avenue in New York City on March 31, 2000. In a
news release in 2008, the company stated that it would start selling home goods. H&M
Home is now available in stores throughout the world, having first been supplied
through the company's online catalogue. Following expansion in Asia and the Middle
East and the launch of concept stores including COS, Weekday, Monki, and Cheap
Monday, in 2009 and 2010,branding consultancy Interbrand ranked the company as the
twenty-first most-valuable global brand, making it the highest-ranked retailer in the
survey. Its worth was estimated at $12–16 billion. H&M operated 2,325 stores at the
end of 2011, and 2,629 stores at the end of August 2012. Its 3,000th store opened in
September 2013 in Chengdu,China. In October 2020, H&M announced that they are
planning to close 5%of their worldwide stores in 2021, as a result of the COVID-19
pandemic.

2.0 The Planning

The primary function of management is planning. Its aim is to ensure thathuman and economic
resources are optimally used in business processes. Itprecedes the other business activities in an
undertaking. It is the method ofcharting out the path to accomplish the ultimate purpose of
businessoperations by outlining a reasonable degree of certainty. It not onlyincludes anticipating
the consequences of decisions but also forecastingevents that can impact a company.

2.1 Vision And Mission Statement

A vision statement is used to describe the future state of theorganization. What the
organization hopes to become in the future, forinstance. It is, thus, a long-term goal that
gives direction for theorganization. In contrast to the mission, it outlines the current state of
the organization and its main goals or objectives. It providescomprehensive information
about what the organization does, how it doesit, and for whom it does. The following are
H&M Group's vision andmission statement:

i. H&M Group VisionThe H&M group’s vision forsustainability is to lead thechange

towards circular andclimate positive fashion whilebeing a fair and equal
company.They work according to theirambitious sustainability strategyproduced
jointly with externaland internal experts. Theirsustainability work spans theentire
value chain, focusing bothon their own operations and,together with other
stakeholders,the industry in general.
 ii. H&M Group MissionH&M mission statement is “todrive long-lasting positivechange
and improve livingconditions by investing inpeople, communities andinnovative
ideas.” The statementemphasizes on the manner inwhich this company offers
theworld its fashions and designs. Itcomprises of the listed mainparts:-Transforming
shopping -Improving lives

The mission and vision statements are important and can best be representedas a guide
and an organization's destination. Therefore, all organizationsshould create a clear
vision and mission statement like U Mobile, as notdoing so would be like going on a journey
without knowing where to go.

2.2 The Types of Planning

There are two types of planning, which are strategic planning and operational planning. For
strategic planning, it is the process of creating specific business strategies, implementing them,
and evaluating the results of executing the plan, regarding the overall 3 long-term goals or desires
of a company. Three types of strategic planning are tactical plan, short-term plan and long-term
plan. Three main strategic plan for H&M for the next five years would be linked with profitability,
competition and technological leadership. H&M has reported a rise in sales and profits and sales
every year. First plan is to maintain financial stability H&M has achieved. H&M plans to increase
sales revenues. Secondly as main strategy of H&M is expansion, in competition is to increase number
of stores by 10% to 15% every year. Today H&M has as1840 stores up from 1618 at the same time
last year. H&M is following all the latest innovations in the clothing manufacturing. It is important to
increase efficiency, cut costs and keep prices low while raising quality. Third plan in the technological
leadership for H&M is to lower maintenance costs by 15% and decrease waste by 10% till the year
2015.

3.0 Organizing
Organizing includes assigning tasks, dividing tasks into departments,delegating authority, and
allocating resources over the organization. Managers need to coordinate employees, resources,
policies, and processes during the organizing process to facilitate the goals defined in the plan. It
is incredibly complex to organize and often includes a systematic review of human resources,
priorities, and finances.

3.1

financial planning as well as analysing the company's financial strengths and weaknesses and
proposing corrective actions. Next is Chief Operating Officer (COO), Helena Helmersson who has
responsibility for the functions Advanced Analytics & AI, Expansion, IT, Logistics, Production and
Insights & Analytics. Other than that, they also have Chief Sales Officer (CSO) etc. Thirdly, also
grouped into logical units and subunits. This can be seen when they have a marketing department.
Marketing department is responsible for promoting the company's products, ideas, mission,
and finding more customers. It arranges all marketing and advertising activities. Then, they have a
finance department. In this department, they need to acquire funds for the company,
managing funds and planning for the use of funds on different assets. Next, Human Resources
are responsible for activities spanning a wide variety of core functions. In short,human resource
activities fall under the following five core functions: staffing, development, compensation, safety
and health, and employee and labor relations. They set standards for recruitment, implement
training and support the development and growth of company's entire organization. All to ensure
they have the right people with the right skills in the right positions – and at the right time. Fourthly,
H&M Group also performs resource coordination. For example, they coordinate financial
resources. Financial resources are active in tasks such as providing financial input for H&M
corporate units and others for the annual Business Plan, preparation and loading budgets. Next,
material resource. In the conduct of their business, H&M uses a range of physical assets. These
assets mainly consist of office furniture, computers, mobile phones and other communication
devices. Other than that, they also coordinate information resources. H&M uses data, articles, books
and internal records that can be used to guide the planning, activities and evaluation of its
operations. Lastly, H&M also does monitoring and feedback. The evidence is they perform regular
system administration, maintenance and support of the Operation Support Systems Elements
Management System to ensure that systems are consistently operating properly and are
available for monitoring. Monitoring and feedback are important because it is toensure that the
organization is adapted to environmental and technological changes that are occurring in the
organization.

3.1 Organizing Structures

"There are six different types of organisational structures: functional, product, customer,
geographical, matrix, and network." The H&M Group employs a matrix structure, which implies
that those in charge of the common group functions are also in charge of the efficiency of work
within their own brand (the horizontal arrows). Each brand has its own has its own organization
and managing director, and all the brands have their own local sales organizations. Internal
control is evaluated annually by the relevant group function, which checks that its function in
each country is working according to the prescribed policies and guidelines. The stores are in
turn checked by internal store auditors.
When H&M Group uses a matrix structure, it allows cross-collaboration between staff and
departments that may not always have opportunities to work together. There are several other
key advantages for matrix organization structure which are collaboration between different
departments, combines project and functional management structures,allows
interdepartmental communication, employees can develop new skills and team members and
managers keep their functional roles. However, the matrix structure sometimes be difficult in
achieving total structure in an environment where managers hold equal superiority over their
shared team members. Additionally, team members might have misconceptions about how they
are expected to divide their time between their functional duties and their project
responsibilities. There can sometimes be several key disadvantages to using a matrix structure
which are managerial roles may not be clearly defined, team roles may not be clearly defined,
the decision-making process can be slowed down, too much work can cause overload, and
measuring employee performance might become difficult.
 Based on the matrix structure, the Chief Executive Officer (CEO) is Karl-JohanPersson. Since
he joined U Mobile in 2009, his leadership and strategic vision have made a difference in
controling H&M Group's revenue development and market development to beat the industry
average. As one of the world’s largest high streetretailers, H&M Group has been thrust under
the spotlight in recent industry debates surrounding the ethics and environmental consequences
of fast fashion. But under Persson, H&M Group led the charge for high street fashion businesses
to become more sustainable. Besides that, the Chief Financial Officer (CFO) of H&M Group is
Jyrki Tervonen, who joined H&M Gruop in November 2008. Jyrki served as CFO, Finland and
Country Manager, Finland, Poland, Czech Republic,Slovakia & Hungar for H&M. Apart from that,
they have Chief Operating Officier (COO), Helena Helmersson. Helmersson graduated with a
master's degree in international business administration at the Umeå School of Business and
Economics in 1997. On joining H&M in 1997, she became a section manager in the buying office
before she went to Dhaka, Bangladesh in 2007 where she was H&M'sproduction manager. After
a further period serving as their department manager for underwear production in Hong Kong
until 2010 when she returned to Stockholm to be manager for social responsibility and supply.
She was appointed as COO in September 2018.

4.0 LEADING
Leading is the use of influence to motivate employees to fulfil organizational goals. As a
manager, he or she should be able to make employees eager to participate in achieving the goals
of an organization. Leading by example makes most individuals see what is ahead and act
efficiently along the way to counter any obstacles. If a organization is headed by a person with
great leadership skills, it will help the organization move toward goal attainment.

4.1Power

Power can be defined as the dominance that someone has over another. It refers to the ability to
accomplish a goal with the assistance of others. There are 2 types of power. Firstly, position power.
It includes legitimate power,coercive power, reward power and information power. Secondly,
personal power. Examples of personal power include expert power and referent power.
i. Position Power For position power of H&M Group, they have legitimate power. In an
organization, legitimate power comes from holding a position of power,such as being the
boss or a central member of a leadership committee. For example, H&M has a Chief
Executive Officer (CEO), Karl-Johan Persson,who is known as the highest-ranking officer in
the company and responsible for taking managerial decisions, managing the general
operations and resources of the company and many other responsibilities. Other than
legitimate power, H&M also has information power. Information power is a type of power
focused on controlling the information that other people need in order to accomplish a
goal. For example, the CEO Karl-Johan Persson provided information on among other things
the strategic plan and goals in response to the great transition that is taking place in the
industry as well as the climate change that is affecting us all. Matters such as the customer
offering and the status of each brand, digital development, sustainability, optimising the
store portfolio along with future store development and the integration of stores and
online.

ii. Personal Power For personal power of H&M Group, they have referent power. Referent
power is obtained by the interaction between the individual exercising gpower and any
icon that literally exercises power and influence. For example, their Chief Executive
Officer (CEO), Karl-Johan Persson was admired because of his great decision, such as after
the 2011 Rana Plaza factory collapse killed more than 1,100 garment workers, Persson
launched a fair living wage initiative that promised to affect around 850,000Bangladeshi
workers. He leads the company’s sustainability plan which includes a fair living wage
initiative. Under the initiative, H&M’s vision is toensure that all textile workers are able to
live on their wage, including an initial focus on the company’s own strategic suppliers. The
goal is to ensure that all suppliers have improved pay structures for fair living wages in place
by 2018, affecting around 850,000 textile workers. But under Persson, H&MGroup led the
charge for high street fashion businesses to become more sustainable.

5.0 Controlling
Controlling is one of the important roles of a manager. A manager should exercise effective
control over subordinate activities to obtain planned outcomes from subordinates. In other
words, it is possible to interpret the meaning of the role of control as ensuring that activities are
performed in the organization as planned. Controlling also means that organizational resources
are used effectively and efficiently to achieve a predetermined goal.

5.1
Controlling The Process
i. Setting Standards for PerformanceThe first step in the control process is to set
performance standards. These standards are the basis for measuring the actual
performance. It includes making decisions over a period of time on the goals that an
organization needs to focus on. These can be production, customer satisfaction, financial
or employee performance-related goals. Also, the standards must be attainable,
measurable, and clear. For H&M Group, their standards for performance are lead the
change towards a circular and renewable fashion industry, while being a fair and equal
company. So, the manager should aim to set these standards in quantitative terms as far
as possible in order to allow easy comparison of actual performance with the standards.
In the case of qualitative standards, however, efforts should be taken to define these
 standards in such a way that comparisons can clearly be interpreted. Using their size and
scale, they are working to catalyse these systemic changes across their own operations
and the wider industry to ensure that they can continue to create great fashion and
design in a sustainable way for many generations to come.

ii. Measuring Actual Performance This includes the creation of measurement tools for data
collection. This tool should be able to report performance as it relates to set standards,
or steps, set in the first step of the operating process. For H&M Group companies, they
measure actual performance. Measuring performance is important because if
performance is not measured, it is difficult to determine whether a standard has been
met. Therefore, managers should start developing measuring tools, such as sales
reports, balances, data collected from customer satisfaction surveys or even employee
performance appraisals to obtain data for each purpose after the goal has been set. For
example, the H&M Group will provide their annual report every year about their
Markets and expansion, Five year summary, The H&M share, Administration report
including sustainability report, Financial reports, Group income statement, Consolidated
statement of comprehensive income, Group balance sheet, Group changes in equity and
Group cash flow statement.

iii. Comparing Actual Performance Standards this step compares actual activities to
standards of performance. Themanagers identify whether actual performance meets,
reaches, or falls shortof standards as they read computer reports or walk around their
plants.Performance reports usually simplify this comparison by putting theperformance
standards for the reporting period along with the actualperformance for the same
period and calculating the variance, which is thediscrepancy between each actual
amount and the associated standard. ForH&M Group, they do compare actual
performance with standards. So, themanager must be aware of the standard permitted
variation with bothpositive and negative sides. Also, in order to keep insignificant
deviationsaway, management by exception is most suitable and practical.

iv. Responding to DeviationsThe last step in the control process includes taking corrective
action. Nocorrective action is taken if the deviations are below reasonable limits.
However, if the deviations exceed reasonable limits, they should be quickly brought
to the management's notice for the implementation ofcorrective measures, particularly
in the appropriate areas. For H&M Group,they did not state that they do respond to
deviations. So, in order to createsolutions for problems with meeting the standards and
allow changes to processes or behaviours, the manager must determine what
haschanged. Maybe the salespeople don't make as many client calls as they didlast year.
In this case, corrective action should be taken against theemployees for non-
performance. The work itself should be looked at by the manager. Perhaps there are a
lot of clients and not enough staff arethere. In this situation, the manager may have to
recruit additional workers. Other than that, the price of the product or service may be
too high andmay impact demand. In this case, a manager may have to look for ways
to add value or lower costs to meet customers' satisfaction.
5.2 Types Of Control

i. Feed Forward ControlFeed forward control also known as preventive control, feed control and
others. They attempt to identify and anticipate problems or deviations from the standards before
they arise (at various points throughout the processes).Inputs that can be subject to feed forward
control include material, finances,people and many other resources that the organization used. For
H&MGroup, they hire the right people, inspect, test equipment regularly andhave enough capital
resources to manage any problems that may occur inorder to meet the standards required for the
transformation process.

ii. Concurrent ControlConcurrent control is sometimes known as screening control. When an activity
is in progress, concurrent control takes place. It requiresregulation of ongoing activities that are part
of the process of transformation to ensure that they meet with organizational standards. For
example, when decisions can simply not be taken based on apreventive approach, H&M Group uses
concurrent controls. During anoperation, certain problems may arise. Therefore, instead of waiting
until the whole work operation is done, concurrent controls allow managers to monitor work
activities as they occur. Production and employee behaviour are some of the areas of an
organization thatbenefits from concurrent controls.

iii. Feedback Control After the transformation is complete, this type of control focuses on the
organization's outputs. Often referred to as post action or output control, it executes a
variety of significant functions. For one instance, where feedforward and concurrent
controls are not feasible or are too costly,feedback control is often used. For customer
satisfaction surveys on the projects, H&M uses feedback controls. This is a focus on outputs
or things that H&M can get out of the planning to ensure that the objective can be met.

6.0 Conclusion

In conclusion, H&M Group is a company with a clear vision and mission in driving their strategy to
lead change towards a round and renewable fashion while being a fair and equitable company. Their
business management process adapted from comprehensive planning and strong organizational
structure along with excellent leadership has been their main success in creating great control in
achieving the objectives of the company and H&M Group that can be achieved at all times focusing
on a work oriented environment in line with The philosophy of "customer first" has proven
themselves to be one of the success company with fashion icon in this industry.
REFERENS :

1. H&M - Wikipedia (https://en.wikipedia.org/wikiH%26M)

2. H&M -History(https://about.hm.com/content/dam/hmgroup/groupsite/documents/en/
Digital%20Annual%20Report/2017/Annual%20Report%202017%20Our%20history.pdf)
3. H&M - Mission & Vision Statement (https://mission-statement.com/hm)
4. Strategic Plan

(https://corporatefinanceinstitute.com/resources/knowledge/strategy/strategic-planning/)

5. Types of Plan

(https://www.toppr.com/guides/fundamentals-of-economics-and-management/planning/types-of-
plans-single-use-and-standingplans/)Departmentalization(https://career.hm.com/content/
hm)Matrix structure (https://www.indeed.com/careeradvise)

6. H&M - Leadership

(https://ukesays.com/)H&M - Karl-Johan Persson (https://businessoffashion.com)

7. H&M - Controlling

(https://about.hm.com/content/dam/hmgroup/groupsite/documents)

8. Meaning of Controlling

(https://www.toppr.com/guides/business-studies/controlling/meaning-of-controlling/)

9. H&M - Innovations

https://cb4.com/blog/hm)