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Diploma in Business
Unit Number and Title
Human Resources Management for service industry
In today’s working environment every organization needs a healthy and positive culture for the employees and customers. It is required to manage the human resources of the company to enhance growth and productivity. This can be happening only by adopting Human Resource Management (HRM) in the organization culture. The Human Resources Management Assignment for service industry explains all the elements related to the advantages and significance of adoption of HRM in any organization. There is also explained the traditional and modern approach of the resource management in any organization. Difference between personnel management and human resource management, job evaluation, recruitment and selection, planning process and termination all these topics are elaborated in the report. Two UK based companies are taken as examples for comparative study of Human Resource Management tools and techniques.
Personnel management and Human resource management are two approaches for the management and control of the activities related to the human resource department. Personnel management can be termed as the traditional approach of management of work force, whereas human resource management is the modern approach. Personnel management can be defined as the process to achieve the employee satisfaction and retention by enhancing engagement of employees in the organization. This approach focuses on the individuals to improve their performance by maximizing their motivation for work. Human Resource Management (HRM) is dynamic process and includes various elements in it to increase the quality of the human resource in any organization by doing effective recruitments, job designing and effective planning and motivation and leadership in the company. The approach of the HRM includes both individual and organizational growth and development. The main difference between the two is the approach towards organizational growth. Personnel management has an indirect impact whereas human resource management has a direct impact on the growth of a company (Han, Y. & Zhao, 2013).
Companies included in the big five forces Price waterhouse Coopers (PWC) and Ernst & Young (EY) both are UK based companies having their headquarters in UK and working globally. These are the companies which are providing best financial and audit services and consultancy all around the world. So it is required for them to maintain a quality human resource and manage them so that they can provide the best services. These organizations adopt the human resource management process to enhance the quality of performance of employees, and engage them in the organization by making a positive working culture. Both the companies make a process for human resource planning and use it as a framework for the whole process of HRM. Personnel management ultimately included in the human resource management process as in it is to make the positive relation and effective working culture in the organization for the workforce. So by the above study we can conclude that Human resource management is a wider approach than personnel management which can be proved by the impact of the both approaches on the organizational growth (Han, Y. & Zhao, 2013).
In the growth of any organization there is an essential role of effective and efficient workforce. There is a requirement to manage the activities and performance of employees to give them directions towards achieving the goals and objectives. Human resource management works as effective tool for engaging interest of employees in the company and retain them for long term. The following are the functions of human resource management (Jimenez-Jimenez, et. Al 2013).
Line managers work as a backbone of any organization. The organizational structure defines the communication channel and flow of delegation and responsibility. Line managers work as leader motivator and controller for all the human resource management.The role of line managers is very important and essential for the process of HRM. They monitor all the activities executed for effective management of workforce on the daily basis. By this effective monitoring the performance of employees can be evaluated and any variance and reasons behind this difference can be examined. Line managers satisfy the employees by providing them proper allocation of tasks and work. They also establish the deadlines for the tasks to be achieved by the employees. Line managers provide all the guidance and identifies requirement of trainings and development programs. In the companies like EY and PWC the line managers are essential for the effective human resource management. They control the flow of information and delegation of authorities and responsibilities(Townsend, K. et. al 2012).
Various business contract Law work as the safeguards for all the conducts and provide protection from any kind of fraud and mischief. Human resource management is a process which helps to manage the workforce in a company and there are chances where the rights are harmed of the employees. In that case legal and regulatory framework helps them to keep them safe and ensure their protection.There are many laws and regulation which focuses on the protection of the human resource. These laws include Sex Discrimination Act, Equal Pay Act, Disability Discrimination Act, Minimum wages Act and Data Protection Act etc. Every organization has to adopt these laws in the activities of human resource management. Protection is provided to the rights of the employees and enhances the goodwill of the company which leads to increase the employee motivation and retention.In case the organization fails to comply with these rules, this will lead to penalties and legal actions on the organization(Singh, S., et. al 2012).
Planning is the initial stage which defines an overall framework for the flow of activities in the organization. Planning is an approach of strategic management which leads all the activities in the direction of the goals. There is provided a situation in which there is explained the poor management of staff and lack of human resource planning. This leads to high employee turnover and lack of engagement of employees in the organization. The role of line managers is not clear by which the responsibility towards the employees is uncompleted. Lack of motivation, leadership and direction the performance of employees is reduced. In this study we will know about the impacts and process of planning of human resource management. Analysis of different techniques of recruitment and selection is done. The problems facing by the company in the given situation are analyzed and solutions are provided for them.Two companies are taken for the analyses which are PWC and EY, UK based financial and audit service provider (Bates, R. 2014).
Human resource management is the process to manage the human resource of any organization and enhance the productivity by increasing performance of employees.Planning is the initial stage of the HRM and can be defined as the set framework for the process of human resource management. The main aim of the human resource planning is to meet the requirement of the human power in the organization for effective working of company. Companies like PWC and EY make human resource planning to take all the possible benefits by managing the employees. Following are the reasons or significance of human resource planning.
Human resource management cannot be done without planning the requirements of human resource management. Planning is a futuristic approach in which an estimate is made and strategies are decided by analyzing all the aspects.The following are the steps involved in the planning of human resource requirement.
Recruitment can be defined as a process of attracting suitable candidates for the job and giving right job to the right person. For this purpose job designing is necessary which defines the required qualities essential to be there in the candidate.Selection is a process to select or shortlist the best candidate out of the applicants. It is to identify the most suitable person for the particular job. Selection process is completed by considering the goals and objectives of the company (Klimoski, & Chiocchio et. al 2014).
In the given situation the there is no plan for effective recruitment and selection process. The demand is not identified for the human resource required in the company. There are many techniques and methods for recruitment and selection.Recruitments and selection are done first by the telephonic interview of candidates by asking the questions which explains their personal and professional personality. Candidates who are shortlisted in the telephonic interview are called for personal interview and then selection is made by choosing the suitable candidate for that particular job profile.
In the companies like PWC and EY which are in the big five forces of the world, the recruitment and selection process is well planned and managed. The companies provide professional services in the financial sector the employees must be the best. In the process of the recruitment and selection the companies consider both internal and external sources and analyze the applicants in all the perspectives. For the selection process the candidates are analyzed in different levels like group discussion, personal interviews, aptitude tests, psychometric test etc. The best is selected by analyzing the results of all levels.This effective process of recruitment and selection leads to employee relation and enhance the performance (Klimoski, & Chiocchio et. al 2014).
Recruitment and selections are done by two techniques which are by internal and external sources. The company given in the situation is adopting the external sources for the process of recruitments. External sources includecampus placements, advertisements in newspapers, websites, blogs, any consultancy firms etc. Telephonic interview is a technique for the selection by which the candidates are shortlisted on the basis of their basic information. Small capital firms adopt these methods of selection. These companies do not spend much on the process of recruitment and selection hence there is lack of productivity in the company (Stoilkovska, A. & Gjakovski et. al 2015).
Big capital companies like PWC and EY adopts the effective techniques for recruitment and selection of manpower this helps to effective running of the activities and achieve more productivity. The expense on this is treated as long term investments because it increases the employee retention in the organization.These companies use both internal and external sources for the recruitment process. And for selection process there are uses many techniques which includes screening of application forms, taking group discussions, personal interviews, aptitude test and psychometric test. These methods are useful to choose the most suitable candidates among the applicants.These all assessments are useful for completing the process of selection by selecting right person for the right job (O'Meara, B. & Petzall, S. 2013).
In this study we analyze the importance of human resource planning in the process of human resource management.Planning works as overall view of the predicted demand and supply by considering the goals and objectives of the company.There is explained the stages of planning human resource requirements. A comparative study is done of the organization given in the case study and the organization taken for example. Tools and techniques for effective execution of the process of recruitment and selection are analyzed.
Motivation is the process by which a person can be influenced may be in positive or negative way. Motivation can be defined as an approach which helps to increase the engagement of the employees with the organization and increase their loyalty. Motivation is an intrinsic satisfaction of a person which is generated by finding himself happy with existing conditions and environment. A leader should be good motivator who can influence its employees in the direction of achieving the goals and objectives. There are many motivational factors which can be used to provide intrinsic satisfaction to work for the organization. These factors include positive environment, proper allocation of the tasks, and decentralizationof decision making power and rewards. Rewards are the main motivational factors and influence the performance of the employees. There is a direct link between motivation and rewards as in increase in rewards leads to increase in the employee performance by motivating them and vice-versa (Richter, M. 2013).
Rewards can be diversified as monetary and non-monetary. Money is the essential and universal factor to influence the performance of anyone. Employees get compensation or pay for executing any activity according to the value of their performance. Monetary rewards make them motivated towards using their overall capabilities and power to achieve high rewards. This is an approach towards increasing employee performance.Monetary rewards include profit sharing, evaluation of job and giving a bonus or incentives. This is called as performance related pay(PRP).Non- monetary rewards are those which are not in the monetary term but motivate the employees by giving them intrinsic satisfaction. According to the Maslow’s theory of needs there are levels of needs which influence the motivational factors. Once the needs are satisfied it doesn’t work as a motivational factor. The financial rewards satisfy the basic needs of the employees by providing money benefits to them. Non-monetary rewards satisfy the need to get intrinsic satisfaction by making an identity and attracting the attention of the society and respect among them. In an organization the nonmonetary rewards are job evaluation and promotions, appoint as a leader in the group, delegation of decision making power and providing other perquisites and allowances.There are many motivational theories like Maslow’s hierarchies of needs, Herzberg’s two factor theory, Expectancy theory, Equity theory, X and Y theory. The effective execution of these theories cannot be done without using the rewards. Rewards are like the tool for motivating the employees by using the motivational theories. In the companies like PWC and EY there is a clear link between the motivational theories and rewards. There are different types of rewards are defined for effective execution of the motivational theories which may be financial and non-financial rewards (Richter, M. 2013).
Job evaluation can be defined as the process which monitors and controls the activities in the organization. Job evaluation also helps to identify the value of one’s efforts. This also helps to define the pay or compensation of the executed performance of the employees.Job evaluation can be done only when the jobs are systematically designed and provided.Job evaluation process is as follows (Munir & Rahman, et. al 2016).
The companies like PWC and EY are in the big forces of the world and have an effective reward system to motivate the employees and enhance the productivity. The company has a brand name and effective job designing mechanism to attract the new candidates and appoint the best talent from the market. The company gives both financial and non-financial rewards for effective execution of the motivational theory in the human resource management. Rewards gives employees intrinsic and extrinsic satisfaction by providing positive working environment and effective allocation of the tasks, involving them in the decision making process. This leads to increase the engagement of the employees in the organization and enhance the employee retention and loyalty towards the organization. Motivation cannot be done without any factor which influences the performance of an individual and a group. Rewards work as those factors in the organization to motivate the employees (Wright, A. 2011).
PWC and EY use different methods to monitor the performance of the employees. Most common method of monitoring the employee performance is to set targets and goals to be achieved in a particular time period. This method helps to an automatic performance appraisal which defines that the employee has done the work allocated to him or not. This method is the basic element to set pay. The other methods are checking the quality of work from time to time,checking the behavior and attitude of the employees toward the company.Feedbacks are also taken for the performance evaluation. Companies evaluate the performance by analyzing that the deadlines are meeting or not. So these are the methods by which the performance can be evaluated of the employees (Venclová, & Kolácková et. al 2013).
In the given case the employee Faisal was appointed in the management of the restaurant the chicken master owned by Bob. Faisal was terminated after six months of his appointment due to his poor performance and negligence and he was unable to satisfy his employer. There was lack of effective engagement of Faisal in the work and he was doing misconduct on a continuous basis. Other than that he was violating the regulations by not following the rules of the employee handbook of the company.
The other reasons for cessation of employment are-
In the given situation of the chicken master the employee is terminated by the employer and not by employees own will. But in case of voluntary termination of employment the procedure is followed in which a notice is given by the employee to its employer or authorized person. Then an exit interview is organized between the employee and the representative of the company. They discuss the reasons of this termination and try to find solution of those problems. In case the problems are not solved then termination is confirmedand the employee can leave the organization after completing the notice period. The employer and employee can appeal in the court if any side has suffered breach of any contract (Mohd H R Joarder, & Ahmmed, et. al 2011).
If the claims made by Faisal are proven to be true them the employer will be liable to continue him as an employee and will be liable to be punishable under many laws and acts, which are as follows-
The prosecution will be according to the charges made by the Faisal on the employer Bob (Stone, R.J. 2013).
The Human Resources Management Assignment for service industry is about the importance of human resource management in the effective running of the organization. We have studied those aspects which influence the performance of the employees in the company and help them grow. The planning process of human resource management includes job designing, recruitment and selection, motivation by rewarding and job evaluation. The aspects and methods of termination of the employment also covered in the human resource management. So now we can conclude that human resource management is a modern and wide approach towards effective management of the manpower and tends to increase in the growth of the organization.
Bates, R. 2014, "Improving human resources for health and safety planning in developing economies", Human Resource Development International, vol. 17, no. 1, pp. 88-97.Hafeez, K. & Aburawi, I. 2013, "Planning human resource requirements to meet target customer service levels", International Journal of Quality and Service Sciences, vol. 5, no. 2, pp. 230-252.
Dubravska, M. & Solankova, E. 2015, "Recent Trends in Human Resources Management in Selected Industry in Slovakia and the Czech Republic", Procedia Economics and Finance, vol. 26, pp. 1014-1019.
Han, Y. & Zhao, H. 2013, "HRM is strategic at Shanghai Shuozhi: Close ties with top management ensure that personnel policies meet company needs",Human Resource Management International Digest, vol. 21, no. 1, pp. 23-25.
Jimenez-Jimenez, D. & Sanz-Valle, R. 2012;2013;, "Studying the effect of HRM practices on the knowledge management process", Personnel Review, vol. 42, no. 1, pp. 28-49.
Klimoski, R.J., Dugan, B., Messikomer, C. & Chiocchio, F. 2014, Advancing Human Resource Project Management, 1;First; edn, Pfeiffer, US.
Mohd H R Joarder, Sharif, M.Y. & Ahmmed, K. 2011, "Mediating Role of Affective Commitment in HRM Practices and Turnover Intention Relationship: A Study in a Developing Context", Business and Economics Research Journal, vol. 2, no. 4, pp. 135.
Munir, R.I.S. & Rahman, R.A. 2016, "Determining Dimensions of Job Satisfaction Using Factor Analysis", Procedia Economics and Finance, vol. 37, pp. 488-496.
O'Meara, B. & Petzall, S. 2013, The Handbook of Strategic Recruitment and Selection: A Systems Approach, Emerald Group Publishing Ltd, GB.
Richter, M. 2013, "A Closer Look Into the Multi?Layer Structure of Motivational Intensity Theory", Social and Personality Psychology Compass, vol. 7, no. 1, pp. 1-12.
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