This is solution of HND human resource management assignment, this discuss about the various aspects of HRM
The aim of this report is to discuss different aspects of human resource management in the context of a multinational company from UK. We have chosen Tesco PLC for the purpose. Tesco is a multinational chain of grocery and general merchandise. We will discuss all the aspects of HRM in the perspective of a deputy HR manager working with Tesco. This company was founded by Jack Cohen in Hackney, London in year 1919 and is now a multinational company. It was founded as a group of market stalls to help the customers with their needs under a roof. It was renamed as “Tesco” in year 1924. Now company has spread across the world with its stores operating in 14 countries across Asia, Europe and North America. It has 30% market share in the grocery market of UK and is operating with more than 60000 stores worldwide. The main products of company include cash & warehouse club, superstores, hypermarkets, department store, supermarkets etc for the sale of different products related to grocery and general use. As we know, human resource is the most important resource for any organization. The company employs more than 500,000 employees across its all stores over the world generating revenue of approx. 64 billion Euros. All the resources have been well managed by the company and have spread with a good speed over the time to become the leader in its operating market.
Human Resource Planning
Ensuring the availability of correct resource at the correct time is important for all organization to achieve the defined goals. Human resource planning performs this task as its main objective. As we know that human resource are the key resource for any organization, so the planning of human resource becomes strategically important for any organization. Human resource department along with the strategic planners perform the task of human resource planning to ensure the availability of the right workforce at the right place and the right time. They strategically plan for the recruitment process of the employees and their training so that organizational goals are met within the defined time period. Most of the organization declares the strategic goals at the announcement of their financial results and it become important for them to achieve those goals to ensure the good market position. These goals are defined by considering the availability of the workforce within the organization also. They also give outlook of the company for the recruitment drive in the future time to make candidates ready for the process of the organization. Tesco has defined standards to perform human resource planning. Basically with the introduction of new stores at the different locations, exit of employees from the company, introduction of new department within the organization results into the need of more employees for the organization. They do the human resource planning in the above stated situations mainly.
Stages in Human Resource Planning
Human resource planning is the important activity within the organization since it assesses the human resource requirement within the organization and ensures the availability of the resources at time. The process follows following defined steps within Tesco:
Assess the human resources: All the available resources within the organization are assessed to know about the skills, talent and competency level available within the organization. This step tells the strength of the organization in terms of human assets.
Forecasting Demand: According to the defined goals of the organization, the need of the employees is identified to meet those goals within the defined timeline.
Forecasting Supply: As per the industry data available and the last years’ trend, the forecasting for the employees that may join the company in the specified is done. The factors related to economic and industry environment are also concerned in the forecasting.
Balancing Demand and Supply: Once the need and the expected entry in the organization are assessed by human resource department, they try to balance both to come on an exact number of human resource required at a defined time.
Action Plan: After getting the exact number of resources required by a specified time within the organization, human resource department along with strategic planner plans for the recruitment and selection of the workforce to meet the goals. This step also includes planning for the training of employees as well if required.
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Recruitment and Selection process
Recruiting new people is the recruitment process for any organization and selecting the right people for the organization is the selection process in basic terms. These processes may differ from organization to organization. However, these processes may find similarity for the organization working in same industry. We will discuss the recruitment and selection process of Tesco and Walmart in this section. Tesco performs recruitment drive on continuous basis with the help of external, internal and some different ways. These processes ensure that company receives the applications from all matched candidates. They first check for the internal resources to fulfill any profile available within the company and then look for external resources by short listing the CVs of the candidates according to the profile. Referral process is also followed within the organization. The recruitment and selection process of Walmart is different from Tesco since it recruits most of the employee on the contract basis which is performed by receiving application from candidates. These candidates undergo an assessment test and interview and then selected candidates are provided with the orientation program. Overall, the recruitment and selection process of both the organization aim at selecting the best available talent within the employee market.
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Effectiveness of recruitment and selection process
The above discussed two processes for recruitment and selection are different in nature and have their own importance within the organization. We will assess the effectiveness of these processed in this section. However, there are some similarities in the processes in some aspects. Tesco looks for all type of resources available at large to select the best candidates with the help of internal, external and other possible ways while Walmart follows the basic recruitment approach which is followed by most of the companies to assess the skills of the candidates from different perspective. Tesco basically tries to pool the internal resource from one department to another department to get best out from the employees of the organization. Walmart recruits employees on contract basis so we can say the approach followed is effective for such type of recruitment. The process of Tesco can be considered as more effective in comparison to that of Walmart.
Responsibilities and roles of Line Manager
The human resource department of Tesco has designed the designation of store line managers to lead the employees working in their stores. Line managers ensure that they correct decision which can support their colleagues in working in proper manner and are helpful for customers in their visits to store. Line managers lead their colleagues working in the stores and work as a supervisor to them. Line managers also take care of all the working staff in their store and ensure that the customers are leaving from the stores after being served in best possible manner.
Providing coaching to the team working under the line managers is another responsibility handled by them including leading the team. They ensure that all the required resources are available at time and according to the defined standards. They make decisions that support the team in their daily work, ensure the processes, routines and systems within the store are working properly and are being completed at the defined time. They also plan all type of activities like trade driving, promotional and seasonal in order to get maximum impact from these activities on the sale of the firm. So, line managers are the main resource for Tesco as they contribute a lot towards the achievement of goals of the company.
Legal and regulatory framework in context of HRM
Organizations behaviour in an economy have to follow different laws that are necessary in that particular economy. These laws are applicable in different manner for different department of the organizations. HR department of any organization can’t be put aside from these legal and regulatory frameworks. Different laws like labor law, safety and security law etc have direct impact on the activities of HR department. These laws are related to the safety, security, and leisure and job satisfaction of the employees working within the organization. Most of the governments have defined different legal frameworks for the gender discrimination, labor relations, unfair treatment, sexual harassment, safe and clean environment, compensation policy, privacy of the employees’ actions etc and these laws are considered as base for defining different policies related to the employees within the company. These defined laws are helpful for both employees and the organizations to ensure the correct working within the organization and the satisfaction of the employees working in the organization. Tesco follows all the laws defined in context of the human resource by UK legislation for its operating decisions and follows the legislation of the countries where it is operating to ensure that domestic laws are taken care properly.
Linking Motivational Theory and Reward
Various leaders have defined different motivational theories at time to motivate the employees of their organizations according to their experience over the period of time. Main theories that are applicable and famous in most of the industries are Maslow’s hierarchy of needs theory, achievement motivation theory, self determination theory, cognitive theories, attribution theories, and Herzberg’s two factor theory. These theories help in increasing the motivation level of employees working within the organization. These theories are important for any organization to help in achieving the organizational goals and objectives. These theories motivate the employee to work in best possible way and get best out of the employees during their stay at work. Some theories have defined on the basis of the reward that employee can receive after working in defined manner while some theories has defined other benefits that an employee may receive by his particular behavior at workplace. So, the reward system of organizations has direct link with the motivational theories. If the application of a theory in the organization leaves all employees motivated in same manner, then the link can’t be observed since all employees have same level of intellectual but if only some employees get motivated in positive manner then companies can link the reward system with motivation theory directly.
Compensation can be considered as a main motivational factor for most of the employees. Job evaluation task is mainly concerned with the evaluation of job in terms of its nature, kind of efforts put by the employees, skill sets of the employees, competence level of workforce, qualification earned by the employees etc in order to define the pay of the employees that an organization should pay to the employee. Job evaluation becomes important part of the human resource management due to the application of different compensation related laws by the legislations. The other factors that play important role in deciding the pay for employees of an organization can be external to the employees and organization both as well. These factors are the industrial scenario at a particular time, economic environment of the country, financial health of the organization, scenario of the competition in the industry etc. All organizations decide upon the pay for its employees by considering all these factors.
Effectiveness of reward system
As we have already discussed that reward system play an important role in the organization in achieving the goals and objectives in effective and efficient manner. An effective reward system helps the employees to get motivated for working in an effective and efficient way. Reward system of an organization defines the types of benefits and employee may receive on performing his job in a defined manner. The reward that an organization may provide its employees for his work behavior in the organization may differ from organization to organization. These can be in the form of progression, promotion, compensation, business trips, relocation according to the employees’ desire etc. Tesco has an effective reward system that keeps employees motivated to work for the organization in best possible way. The success of many organizations highly depends on the effectiveness of the reward system applicable within the organization.
Employee Performance Monitoring
Employees perform within the organization according to their defined roles and responsibilities. Organizations monitor performance of the employees over the period of time to assess the strength of its workforce. Assessment of employee performance becomes critical in organization where incentive based reward system is applicable. The monitoring of employee performance is important for the organization in terms that the organization performance as a whole highly depends on the performance of its employees. The employee performance over a period of time tells the kind of ability, skills, capability the employees possess. Tesco monitors the performance of its employees by the help of feedbacks from the line managers for the store staffs and for the line mangers higher staffs give feedback about their behavior at workplace. The main applicable method for assessing the performance of the employees is the assessment of the employee’s effectiveness and efficiency over a period of four months. The another methods that are applicable for the monitoring of employee performance are target based mechanism, continuous assessment, online portal mechanism, direct monitoring of all activities etc.
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Reasons for Cessation
An employee can be terminated from an organization or can get terminated himself due to following reasons:
- Avoidance of organizational rules and regulations by the employees for their personal benefits that may have adverse impact on the organization.
- Unaligned organizational and personal goals creating conflict in the work for the employees and reduced performance by the employees.
- Non performance of the employee according to standards that reduces the effectiveness and efficiency of the organization.
- Unfavorable business conditions for the organization like recession or the reduced sales from the organization.
- Unacceptable behavior of the employee that may hamper the image of the organization.
- Legislative orders for termination of particular employee by the court of law.
- Personal reasons of employees like job switch, location change, marriage etc.
This list of reasons is not exhaustive and can differ from employee to employee and from organization to organization.
Employment Exit Procedures
The exit procedures followed by the organizations differ from one organization to another. The employees are shown the exit doors to its employees on the basis of different factors and keep in mind the legislative procedures as well that can put the organization in hot water. The exit procedure followed by Tesco and Walmart differ in nature and processes. Tesco terminates the employees on the basis of their performance and behavior according to the defined rules for notice period and as the rules defined at the time of offer of employment to its employees. Walmart mostly follow the contract based mechanism for its employees, so with the end of the contract the employment of employees with the organization get terminated by itself. Employees have to follow the defined rules and regulations discussed at the time of offer in order to avoid the unwanted termination from the employees. Both the company provides the employees with the job security and do not easily terminate their employees in the case of economic slowdown. The organizations follow different procedures to show exit door to the employees.
Legal and regulatory framework in Cessation
We already talked about the legal and regulatory framework for the human resource management of an organization, so these rules and regulations are also applicable in the case of termination of employees from the organization. These laws help the employees from avoiding the termination by the organization in undefined or unacceptable manner. Labor relation laws, compensation policies, job safety and security laws are some of the important laws that are applicable in the cessation of employment of employees with the organization. These laws differ from country to country. Tesco follows all the rules and regulations defined by UK legislation in this context for the employees working at strategic level and working within the boundaries of the country. However the local laws that are applicable in the operating countries are considered for the termination of employees in those countries.