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Diploma in Business
Unit Number and Title
Human Resources Management
Human resource management plays very significant role in ensuring the success of the organisation and also helps to improve its brand image which in turn helps the company or the organisation to sustain in the market for long. The following assignments help to provide a brief idea regarding the concepts of human resource management as well as management with respect to different organisation. The assignment further deals with the case scenario provided and the organisation related to the same one of the organisation provided being the Chicken Master. In the task 2 the given organisation has been compared to the popular organisation Google, in order to get an idea about the recruitment and the selection policies of the same.
Personnel management differs from the human resource management in the following aspects as shown in the table below –
HUMAN RESOURCE MANAGEMENT
Human resources or the employees are most valued asset for the organisations and therefore it is essential to ensure the proper management of the same which will ultimately prove to be helpful in the achievement of the desired results of the organisation (Bratton and Gold, 2012). The most important functions of human resource management are recruitment, selection, training and development, payroll, employee relations, compensation management, employee engagement policies, etc. Google is known for its effective management of the human resources and also makes relevant efforts to ensure the satisfaction of its employees. It believes in empowering its employees in order to ensure the achievement of the goals of the company and also follows a flexible organisational structure which helps to ensure smoothing functioning of the organisation and also provides opportunities to the employees to take the important decisions related to their job roles rather than taking permission from their seniors.
Google always believes in hiring the best talent for their team in order to derive expected results from the same. It also believes in paying unfairly (that is paying more to people who perform better) in order to motivate the employee to work harder in order to achieve the rewards or incentives from the company. It also pays equal attention to the worst as well as the best employees. The human resource management of Google even involves relevant training and development programs in order to ensure continuous development in the performance of the employees as well as to ensure easy implantation of change within the organisation as and when required. Google one of the most famous companies of the world and is probably the only one to use ‘people analytics’ in order to ensure effective and efficient management of the HR functions. After the successful implementation of People Analytics, Google became the third most valuable companies of the world.
Line managers play an important role in order to ensure successful implementation of the human resource policies within the organisation. Line managers for the HR department mostly employed in the large organisations where the number of people working is significantly huge. Line managers play a crucial role in the company Google as well which is indeed a tough as it becomes significantly difficult at time to manage the engineers. The important responsibilities of the line managers includes the following –
Legal and the regulatory frameworks have a significant impact on the human resource management of the company. The rules and regulations or the laws associated with the employment are important to maintain smooth as well as healthy relationships between the employees as well as the employers and is different for different countries as well. Thus, it is indeed becomes very essential to be well versed with the laws related to the employment or the HR policies in order to handle the legal issues efficiently and successfully.
Some of the important laws which has an impact on the human resource management of the companies can be stated as follows –
Apart from the above mentioned acts there are certain policies which are commonly known as the Affirmative Action which is mostly concerned with the involvement of the minorities within the workforce. It usually relates to certain policies which the organisations must follow in order to employ certain group of individuals which includes –
Human resource planning is very vital for the organisations as it helps to determine successfully the number of people required as well as the essential which are required to be possessed by them in order to ensure the growth and the sustainability of the organisation. HR demand forecasting as well as supply forecasting which are considered to be important components of the human resource planning help to fulfil the future human resource requirements of the organisation successfully (Boxall and Purcell, 2011).
It is mentioned in the given scenario that the employee turnover rate of the organisation was increasing rapidly as the organisation did not follow any human resource management policy. The importance of human resource planning for the organisation can be cited as below –
The major reasons for using as well as implementing the policies and the procedures related to the human resource planning are –
Human resource planning can be defined as the process which helps to identify the current as well as the future manpower requirements in order to achieve the growth and success of the organisation. The steps involved in the process of human resource planning involves the following –
The comparison of the recruitment and selection process of the organisation mentioned in the scenario with that of Google has been provided below –
The organisation mentioned in the scenario does not follow a proper recruitment and selection procedure for recruiting its employees and as a result of which they are not able to retain their employee which ultimately resulted in high turnover rate of the employees. The manager cited the reason for the same being that they are not able to recruit good as well as talented people for the organisation as such they lacked commitment towards the organisations. This was mainly because proper HR planning was not undertaken by the company and the company even did not even have an effective and efficient HR manager to ensure the development as well as the implementation of the HR policies within the company or the organisation. Job analysis is very important to identify the needs of the company and to provide an idea to the interviewer as well as the interviewee an idea of their roles, responsibilities as well as the capabilities that are essential for the job vacancy in question
On the other hand Google follows a proper and a well maintained recruitment and selection procedure in order to recruit the best talent for the company. It is one of the companies’ in the world which is well known for its HR practices and is also known for appointing the best talent which helps to add value to their company.
Motivation can be defined as the reason behind the varied reactions or the responses of the people regarding their desires, expectations as well as needs. It can also be described as an individual’s direction towards behaviour or the reason behind the want or the desire of the individual to repeat certain behaviour or restrain form the same. Various authors have put forward different motivational theories which help to provide a clear objective about the entire concept of motivation which are discussed in detail below –
A. Content theories of Work Motivation:
Maslow’s Hierarchy of Needs – It was developed by Abraham Maslow who has identified the basic needs of the individuals which are essential for the individual in order to maintain a satisfactory lifestyle. He has also stated that once the lower level needs are satisfied then only an individual moves up to the next higher level of need (Lin and Lu, 2011).
The diagram below gives an idea about the basic needs and the different levels of needs of an individual –
ERG Theory – It was a revised version of the Maslow’s theory and was put forward by Clayton Alderfer. He reduced the hierarchy levels from five to three and termed it as needs related to Existence, needs concerned with Relatedness as well as Growth needs. The following diagram gives an idea regarding the aforesaid theory –
Theory X and Theory Y – It was developed by Douglas McGregor in which he divided the employees into two categories (Theory X and Theory Y). He further stated while the employees belonging to the category of Theory X disliked work, avoided the same, and required supervision in order to carry out the work, the other category of people who belonged to Theory Y loved and enjoyed their work and were committed towards achieving the objectives of the organisation and did not even require supervision as well (Herzberg, Mausner and Snyderman, 2011).
The following diagram provides a detailed view regarding McGregor’s Theory X and Theory Y –
Herzberg’s Theory of Motivation – This is also known as the Herzberg’s Two Factor Theory or Herzberg’s Theory of Motivation and Hygiene (Tan and Waheed, 2011). The detailed aspects of the same can be shown in the diagram given below –
McClellands Theory – In this theory McClelland has identified the link between the high performance of the managers with the needs of achievement, affiliation and power.
The details about the theory can be seen in the following diagram –
B. Process theories of Work Motivation
The reward management system or the reward framework can be shown in the following diagram –
Virgin media believes the fact rewards are one of the most efficient motivating factors for the employees and encourages the employees to perform better in their respective tasks in order to receive the rewards which may be monetary as well as non-monetary in nature. The company also believes that that it is important to meet the basic needs of the employees in order to derive expected results from them as and when required.Virgin media conducts training and development programs in order to motivate the employees. In accordance with the McGregor’s Theory X and Theory Y, Virgin Media prepares strategies to utilise its workforce and makes efforts to improve their skills as well. Virgin Media also provides various new benefits schemes in order to motivate the people. One such benefit scheme for the employees is known as ASPIRE field pay as well as reward scheme.
Virgin Media currently follows the central medium or system for learning as well as for the management of the performance of the employees of the company. It helps the managers to keep a track record of the performances of the employees on a short term as well as on a long term basis.
The other ways which are used by the company for monitoring the performance of the employees includes the following –
As Virgin Media believes in empowering its employees hence also uses the method ofThe performance of the employees are monitored on the basis of punctuality, quality of performance, attitude, efforts made by the people, etc.Various performance appraisal methods such as 360° appraisal, ranking system, normal distribution system, etc are used for appraising the performance of the individual employees.Task 4
The reasons for the cessation of employment or the termination of Faisal form the Chicken Master has been discussed in detail below –
The Chicken Master did not follow any particular employment exit procedure rather the owner of the company had simply fired Faisal on the grounds of poor performance as well as violation of the policies or the rules and the regulations of the company.
However a proper employment exit procedures as employed by the other organisations includes the following steps –
Organisations have certain rules regarding the exit of the employees (retirement, resignation, etc.) which are in accordance with the National Employment Standards
Exit Interviews – These are conducted in order to find out the reason behind why an employing is leaving the organisation, what does the employee feel regarding the organisation as well his job profile, what are the views of the employees regarding the behaviour and the attitude of the other employees as the seniors or the managers of the company, do they trust their company or its management or not, etc. (Kehoe and Wright, 2013)
Following an Exit checklist – It involves clearing all the dues of the employees, restraining the employee by removing his access from the private information related to the company, by deleting his profile, id or password that were used by the employee for performing his tasks, maintaining confidentiality of the contact and the exit formalities, etc.Policy StatementDefinition of certain terms related to the employment such as permanent employee, temporary employee, unbroken service, contractual employee, notice period, etc. Termination with causeTermination without causeTermination of employment by the employees4.3 Consider the impact of the legal and regulatory framework on employment cessation arrangements with an organisation such as The Chicken Master if Faisal’s claim was proven to be true.
There is a huge impact of the legal and the regulatory framework on the employee cessation agreements or the arrangements of the companies. They can have a positive as well as a negative impact on the company. Faisal claimed that he was a victim of race and age discrimination and was fired by the Chicken Master because of the same. As per the Equality Law 2010, prohibits the discrimination of any sort by the employers against the employees. As such after the investigation if concerned authorities found that Faisal’s claims are correct the company The Chicken Master will have to reappoint and will also have to provide compensation for the same.
Hence it can be concluded that it is indeed very important for the organisations to have a proper and well maintained HR department in order to ensure maximum as well as effective utilisation of the human resources. Moreover the HR managers must be efficient enough to make sure that the human resource requirements of the company as successfully met with as and when required.
Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity. Handbook of labor economics, 4, pp.1697-1767.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
ratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave Macmillan.
Herzberg, F., Mausner, B. and Snyderman, B.B., 2011. The motivation to work (Vol. 1). Transaction publishers.
Kallunki, J.P., Laitinen, E.K. and Silvola, H., 2011. Impact of enterprise resource planning systems on management control systems and firm performance. International Journal of Accounting Information Systems,12(1), pp.20-39.
Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource practices on employees’ attitudes and behaviors. Journal of Management, 39(2), pp.366-391.
Lin, K.Y. and Lu, H.P., 2011. Why people use social networking sites: An empirical study integrating network externalities and motivation theory.Computers in Human Behavior, 27(3), pp.1152-1161.
Milyavskaya, M. and Koestner, R., 2011. Psychological needs, motivation, and well-being: A test of self-determination theory across multiple domains.Personality and Individual Differences, 50(3), pp.387-391.
Paterson, J., 2012. Virgin Media uses social media-based recognition. [online] Available at: http://www.employeebenefits.co.uk/ [Accessed 14 Jun. 2016].