This solution is written for theRegent College Human Resource Management Assignment, Human resource management is important unit of HND business course.
In the context of any big organization, human resource and personal development of the employees are the two sides of a coin. These two are related through different activities. In this paper we are going to explore these activities and also the different techniques of motivation. For the success of any organization it is very important that the staff they are recruiting fulfils the requirement of the position for which the recruitment is going on. Another aspect of good human resource is the retaining of the good employees who has the good knowledge of the concerned area and company has invested highly in their development (Kehoe & Wright, 2013, pp. 381).
On the other hand, human resource management includes that the process of hiring the employees and retaining them is following all kinds of legal and regularization techniques. As most of the managers have accepted that the employees they have are the most valuable resources for the company and retaining the good old staff has always been the priority in their job description.
LO1 Personnel management and human resource management
P 1.1 Harrods and Small Businesses
The terms personal management and human resource management have always been the cause of confusion to the managers in any company. Though if looked only at the outer side both of the terms mean same to the common people, but managers have to distinguish between them and use them appropriately. Personal Management is the term which is older than human resource management and used in managing the people in small companies. Human resource management has a wide area than personal management and deals with the overall performance of the company and strengthens the human resources in the company through various activities and also takes care of hiring the quality staff and reward schemes. In Harrods, Human Resource Management is the key department which has contributed a lot in the success of the company. Harrods is a 160 years old business and employs more than 4500 people (Boxall & Purcell, 2003, pp. 84). British; Luxury; Service; Innovation and Sensation are the five values of Harrods and it is the responsibility of the HRM department to engage the employees who could adhere to these values and work towards making these values better. On the other hand professional Development in the small companies is just limited to organize the current staff and hiring the staff as per the requirements given by the managers.
P 1.2 Function of Human Resource Management
As mentioned above the purpose of the human resource department is to take care of the five values of Harrods and to achieve that, human resource has to make sure that they have working people are qualified and productive in the company and also the staff they are hiring is according to the standards of Harrods. It is the job of the human resource that they keep the engaged people in the company because these kinds of people always go for the hard work and accept the challenges happily. Engaged people are the employees of the company who participate in the decision making process at the Harrods and these are the resources which are most important for the Harrods because they understands the responsibilities given to them by Harrods. Respecting these employees and developing more employees like these is the main function of the human resource at the Harrods. Other than these, there are three more activities which human resource follows at Harrods:
- Recruitment and selection – Recruitment and selection of the best talent available in the market is the primary function of the human resource at Harrods. The requirements are given by the developing manager for managing human resource and finds the talents which fulfill conditions.
- Performance – Keeping an eye on the performance of the employees is another function of the human resource. Enabling the employees who are not able to perform their duties effectively is managed by the human resource department. Human resource provides these employees training opportunities which help these employees in doing their job perfectly (Becker & Gerhart, 1996, pp. 780).
- Development – Development of the employees in Harrods is also the responsibilities of the human resource department. To persuade the engaged employees in building their long term relations with Harrods and help them in the process is the one thing which human resource is doing perfectly at Harrods. Human resource provides the career progressive opportunities to the employees in the company.
P 1.3 Roles and responsibilities of line managers
Line Managers at Harrods work as a mentor to the staff and to new employees in the company. They are like the coaches who train the people and also listen to their problems. They are also the advisors and guides to the employees in the company who might not have the knowledge as the line managers and it is the duty of the line managers to fulfil that gap. These activities also help the line managers in developing the managerial skills, leadership skills, communication skills, forming a bond with the employees in the company and also enforcing the trust among the employees at Harrods. Sometimes line managers might not be agree with the decisions of the human resource department and they help the human resource in understanding people and also suggest the different options which could be very helpful to human resource department. In the recent days, a new phenomenon has been developed in the business which is outsourcing the work to other companies and countries (Delaney & Huselid, 1996, pp. 981). It is also the responsibility of the line managers to handle the outsourced work and make these companies deliver the quality work. To do this sometimes line managers have to learn foreign languages which are an extra burden on them. Line managers also take part in the strategic execution of the policies of the company. Line managers also handle the personal management and employees relation programs.
P1.4 Impact of legal and regulatory framework on Harrods human resource management
Taking care of the legal issues and policies is very important for company, especially when company is as big as Harrods which has its presence in many places. All these places have different legal policies as per the state rules. Another issue Harrods faced long time back was the copyright issues with other stores. It is the duty of the brand managers to take care of copyright issues and they may take help from the legal authorities to handle the issues.
The regulatory framework which is followed by the human resource department at Harrods mainly deals with the contracts with the employees. When human resource hires new employees, they sign a contract with the employees which mentions the probation period of 6 months. If the employees performance is not up to the standards, they might be fired based on the probation condition in the contract.
Another feature of the legal framework adopted by the human resource department at Harrods is taking care of the government policies regarding the wages of the employees, health of the employees and safety of the employees.
LO2 Understand how to recruit employees
P 2.1 Reasons for human resource planning at Harrods
Employees in any company is the key to success of the company and when it comes to the company like Harrods which has 45000 employees, human resource department is very much required. It is the human resource department who handles all the employees in the company and manages the task like recruiting the new talent, retaining the engaged employees, deal with the problems of the employees, taking care of the scheduling and rotation of the employees and handle the wages of the employees. Maintaining the employee relationships is also the responsibility of the HRM (MacDuffie, 1995, pp. 203).
Few years ago Harrods was facing the problem of Employee Turnover, which measure the rate at which employees of a particular company leaves the company in their first year of employment. This was the time when Harrods found out the need of a good human resource department. To resolve this problem, human resource department at Harrods conducted a survey of all the employees in the Harrods and found out the problems they were facing and recommended the management to take actions to resolve employees’ issues.
The reasons why human resource planning is necessary at Harrods could be summarized as below.
- Retaining the engaged employees
- Employee satisfaction
- Managing the employees’ training
- Getting in touch with line managers to get the requirement for the job
- Hiring the best talent in the market.
- Negotiating the salary with new employees
- Managing the awards and appraisals.
- Managing the discussion and forums to let the employees participate in decision making.
P 2.2 Stages that Harrods can adapt in planning human resource Requirements
Planning a human resource requirement is an incremental process, which start with the hiring the good HR managers. These managers should be highly qualified and should have the experience in the retail industry in the case of Harrods. For other companies which are in different fields, the requirement of experience is different. Human resource requirements are mostly provided by the line managers who provide the HR exact job description for which the position is vacant in their projects. Once these requirements are received, human resource would go through the following stages to complete the requirement.
- Searching the Company database for existing resumes
- Put the job requirement on different job portals
- Use the referral program
- Shortlisting of the resumes received through the job portal
- Conducting the telephonic interview on the primarily basis.
- Calling the candidates who seem satisfactory in telephonic conversations
- Arrange a panel of managers or subject matter experts to conduct the interviews.
- Negotiating the salary packages with selected candidates
- Once the candidate is on board HR has to make sure that he knows all the policies and processes followed in Harrods.
- Arrange a tour of the company’s different departments
- Completing the formalities like salary account openings and ID cards issuing.
P 2.3 Comparison in the recruitment and selection process at Harrods with another Business
Every company has different policies for recruitment which are based upon the organizational structure of the company and also the type of Requirement Company has at that time. In this part of the paper a comparison of the recruitment process at Harrods and Sainsbury will be covered. Harrods is completely dependent on its Human Resource Department which performs the recruitment process in the way that has been followed since the birth of Harrods. The different stages of the recruitment processes are explained in the last paragraph. Harrods’ human resource department also hires the employees which are referred by the existing employees of the company. Human resource conducts all the processes as they do for other candidates. Referral is not a guarantee of the selection and is not considered a factor when deciding which employee is fir for the requirement.
Sainsbury, on the other hand outsource the recruitment process to other companies or consultancies. By doing this Sainsbury reduces the efforts in recruitment and their human resource department could focus on other issues at hand. The consultancies hired by the Sainsbury selects the candidates on the basis of the requirements given to them by Sainsbury. They conduct the primary interview and the candidates who are selected by the consultancies, sent to Sainsbury for the final interview which is called managerial round or HR round.
P 2.4 Effectiveness of the recruitment and selection techniques in the above two selected organizations
Both of the techniques explained above in Harrods and Sainsbury have their own pros and cons. Since both techniques are so much different than a point to point comparison is not possible and it is also difficult to compare their effectiveness. The technique adopted by Harrods seems to be more time taking and involving many resources of the human resource department which is definitely not good, but the advantage of this technique is that human resource is able to find the resources which match exactly the requirements given by line managers. At Harrods, line managers are included in the interview panel which makes it possible to hire the right talent. It may take more time and resources but finally this technique is very effective.
The technique applied by the Sainsbury depends upon the consultancies they hire fir the recruitment purpose. The biggest challenge in applying this technique is finding the right consultancy to outsource the requirement process. Since the interviewers in the consultancy might not be the subject matter expert, they might not be able to get the best talent in the market. The last interview in this process is held by the HR of the Sainsbury where only managerial questions are asked and negotiating on the salary is done. The line managers are completely absent in this process. This is the reason that this process may take less time and efforts, but may not be effective as the technique adopted by Harrods.