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Diploma in Business
Unit Number and Title
Unit 18 Human Resource Management
Human resource management refers to management of the workers of an organisation by making best and efficient use of resources. Human resource department plays an important role in an organisation. Without human resources, an organisation cannot able to achieve its goals and objectives because human resources contribute in an organisation’s operations. This unit 18 human resource management assignment copy uses explains various aspects of human resource management in practice. There are many functions and tasks that are undertaken by human resource department in an organisation and that include recruitment, selection, training, payroll management of human resources. They are responsible for providing proper guidance to the employees and resolve their issues. Human resource department has to maintain a healthy relationship with the employees as they are responsible to motivate the employees and resolving their conflicts. Human Resource department is also responsible in evaluating the performance of the employees and performance appraisal. They have to ensure employee safety and healthy environment in the organisation by complying with labour laws of the state or country.
Human resources are a part of an organisation that manages people within the organisation. It refers to acquire developing and supporting staff that can fulfil their role at workplace. Human resource management refers to the effective utilisation of people so that it can achieve both the organizational and individual goals.(Flynn and Stack, 2006). Personnel management refers to the mediators between the management and staff who basically deal with payroll, employment laws related tasks. They are more administrative in nature. On the other hand, human resource is responsible for managing workforce which is one of the main resources that contributes in organisation’s success.
Difference between personnel and human resource management:
Human resource management
As far as the present situation is considered, none of the companies are suing personnel management because they are more concentrated on welfare of thei employees so they have moved towards HRM practices. Cadbury was the company that first uses personnel management when the concept arises. Slowly and steadily, Cadbury also moves to HRM. Difference in the practices of personnel management and HRM of Cadbury have been discussed below:
The personnel staff of the company is involved in :
The HR staff of the company involves in :
Human resource department acts as the foundation of the organisation. All the processes in the organisation can be conducted only with the help of the employees and managing these employees is the task done by the HR department. The HR department functions are not limited to managing of the human resources but it also contributes in achieving organisational purposes. Some of the functions of HR department have discussed below that contributes in achieving purposes of Tesco:
Line managers are the managers to whom individuals directly report and who are responsible to higher authority for those employees. These employees have the responsibilities of the operational functions as well as have to play their part in some of the Human resource management roles. This is because, the modern human resource management is not limited to human resource department but line managers also needs to focus on the performance of the employees that are working under them. They have many different roles that integrate with Human resource functions:
In Cadbury business environment line managers are responsible for developing strategies and designing performance management system so that they can cope up with the changing business priorities and other business activities that are of a higher level. They have the responsibilities to implement HR policies and practices. It is important for strengthening the relationship between employees and managers as it increase employee performance and motivation. That is the reason, why line managers can make a difference in employee’s attitude and behaviour. (Lussier and Hendon, 2013) The role of front line managers is to provide guidance and advice to the employees whenever it is required. They need to control the flow of work by providing direction and guidance to others.
There is a body of law that is called as employee legislation. It is created to govern employer- employee relationship and the safeguard the rights of the employees and employer in reference to workplace. These legal and regulatory framework impacts on human resource management as it have the responsibility to makes all the prescribed Acts applicable on the organisation. There are some Acts of law that describes the rules and regulations that are needed to be followed by every organisation.
Impact on HR policies of Tesco
1. The Employment Rights Act
This Act provides rights of employees like they are entitle to their salary statement and National Minimum Wage. All the terms and conditions of the employment must be provided to all the employees in written. Under this Act, all the employees are protected against unfair dismissal at work.
2. The sex Discrimination Act, 1975
This Act is introduced for the protection of employees against discrimination practices on the basis of gender.
TESCO is the organisation that considers this Act under its HR policies and provides fair salary to the employees. According to this act, TESCO need to pay more than the decided minimum wage to the workers.
Some organisations discriminate employees based on their gender like in advertisements of jobs, recruitment of employees, in promotion practices and in providing training and career opportunities. TESCO consider this Act in its Hr policies. These is no discrimination in the company on the basis of sex and everyone gets equal opportunity.
3. The Equal Pay Act, 1970
This Act is introduced so that both men and women should receive equal pay for the same task or same kind of work.
Equal pat has been given to all the workers working on the same level. Compensation and reward system may create differences but that has been given according to the performance.
Human Resource planning refers to identifying present and future human resource requirement of the organization to achieve the objectives. It is related to business strategies and planning so that it can ensure the availability and supply of human resource. It is a link between the human resources management and strategic plan of an organisation. Human resource planning enables an organization to acquire human resources at the right time, which are perfect for the organisation and contain right skills. Human resource planning is beneficial for an organisation because it helps in cutting the costs and can determine the future requirement of human resources in advance. It helps in succession planning and create reservoir of talent. Human resource department firstly assess the current human resources, then the requirement in future and afterwards develop a program to meet the needs of organisation.
The reason for human resource planning are-
In the given scenario, the company needs to change the recruitment process as the present recruitment process fails to hire the relevant employees that are affecting the company’s turnover. Proper planning needs to be done before recruiting anyone. This planning involves proper job analysis that deals with job description and specification.
Recruitment and selection process of current organization- Current recruitment process of the organization is very much improper as there is no HR planning policy that is very essential for effective recruitment. In their recruitment process, candidates are given a telephonic interview before appearing in face to face interview. The question that is asked is irrelevant as they are not suitable for an interview and they are not the questions which should be asked in telephonic interview.(Jones, 2008)
There is a systematic process for recruitment and selection –
Recruitment and selection process of Tesco:
Recruitment: Two types of recruitment are conducted in Tesco-
Selection: End of recruitment process gives the sign to initiate the selection process. Selection process of Tesco involves following steps:
The recruitment and selection techniques of an organization show the quality of human resources that are recruited. The organization given in the scenario has no planning process that leads to improper recruitment. The result of this is high staff turnover in the organization. All these drawbacks lead to poor results of the recruitment in the company. There is no HR manager in the company and a finance manager was performing all the duties of the HR manager. This results in inappropriate usage of the recruitment and selection method that were not effective for the organisational requirement. On the other hand, TESCO is the company that has proper recruitment and selection process. The process has been discussed in the above task. The process like this helps the company to recruit right people on right place and at the right time. This is what Human resource department is meant for. The selection of the candidates has been done according to the job description and specification. The HR team matches the person specification with the required specification of the job. This helps the HR team to recruit a relevant candidate on the job. Proper analysis of the job determines the requirement according to which recruitment should be done. Proper selection of the right candidate results in low turnover rates and hence enhances the productivity of the organisation. All this suggests that TESCO services uses very effective recruitment and selection techniques.
Virgin Media is an organization that is created from the merger of NTL. It is world’s largest international cable company. (Armstrong, 2003)Motivation is important aspect that influences the behaviour and actions of an individual. It results in achievement of goals by them. By understanding the forces that results in motivating employees at work can ensures that the organisation not only has the employees that possess skills, knowledge and qualification to perform a specific job, but who are also dedicated to the organisation to achieve high work standards. Positively motivated employees can take responsibilities, helps their colleagues and contributes their skills in an effective way. Negative behaviours reflect demotivated employees. It includes irresponsible behaviour, high absenteeism and poor performance that impacts on the performance of the business. Two of the motivational theories that are generally been used by the organisations are:
Maslow hierarchy needs theory: this theory focuses on fulfilling the needs of the employees by motivating them for achieving those needs. The theory suggests that needs of an employee changes with time and the greed of achieving those needs motivate him to work efficiently.
Hertzberg two factor theory: The two factors that are involved in this theory are:
This theory focuses on factors that satisfy employees and also considers the factors that may dissatisfy employees in the organisation. According to this theory, motivation factors are those factors that inspire employees to work efficiently and the factors that create a sense of satisfaction are called hygiene factors. Presence of hygiene factors can be ignored by the employees but their absence may dissatisfy them. There are many factors that motivate employees to work but, every factor does not prove to be effective for every individual.Virgin media considers reward as one of the motivating factor for many people. It offers bonus schemes to the employees, like ASPIRE field pay and reward system and additional benefits like health care, life assurance, pension schemes etc.Research undertaken by Fredrick Herzberg in the 1950’s has clearly described the understanding of motivational theories and job satisfaction at workplace. It is described that employees has two types of needs at workplace i.e. hygiene and motivator factors. Hygiene factors refer to the salary and working conditions. It leads to dissatisfaction of employees if these conditions are not good. Motivators include responsibility, achievement, and progression of opportunities. Herzberg found that these two factors can improve an individual’s performance.(Chanda and Shen, 2009). These two things are connected in this way as motivational theories contain the factors that can motivate the employees.
Job evaluation is the process of analysing the job to determine its worth. Identification of worth of the job helps in determining the pay structure for that job in comparison to other jobs in the organisation. This approach of job evaluation ensures that consistency and fairness has been maintained that offers opportunities for increase in salaries. Job evaluation process involves the following steps:
Following are some of the job evaluation methods that have been used by the organisations to determine the pay.
Other methods that determines the pay:
Virgin Media group commonly used reward system as the basis to determine the pay of the job. Reward system of Virgin Media is very effective as it provides monetary as well as other rewards to the employees like; recognition, insurance benefits, pension schemes, staff saving schemes, etc
Virgin media considers rewards as one of the important motivating reason for many of its employees. It offers a bonus scheme to its employees so that performance of the employees can increase. The name of the scheme is ASPIRE field pay and reward system. The scheme rewards every Net Promoter® score (NPS) of 9 or 10 with £10. It has forward business thinking and due to this Virgin Media understands the importance of motivational factors. It also addons benefits to its employees like private health care services, gratuity, pension schemes etc. There are many motivational factors that affect the performance of the employees like promotions, recognition etc. This organisation uses many strategies so that achievements of the employees can be recognised. One of these methods is NPS Hero championship scheme. In this scheme, employees receive a personal letter of appreciation on a score of 10. Another scheme adopted by Virgin Media is SHOUT in which employees are thanked for maintain the values of the organisation in their work.(Chanda and Shen, 2009)
There are many methods to monitor employee performance. Some of them is discussed below:
Virgin Media has been many methods of performance evaluation of the employees like assessing the behaviour, scoring and recognition etc. The company believes that behaviour of the employee at the workplace determines his performance level and the willingness to work. The people who take initiatives are considered as the employees with high performance level. Another method that has been used to judge the performance of the employees is the Net Promoter Score. The score has been given to the employees out of 10. Scores have been given based on the performance of the employees and the target completion. High scorers get the recognition in the recognition program conducted by the organisation.
Bob owns Chicken Master and he thought Faisal had hit a homerun. Faisal turned out to be one big strike out. After the completion of six months, he terminated Faisal because his performance was poor and he was violating company’s policy. Faisal was not doing any task properly as it was found that the store and kitchen was not properly cleaned, food was unprepared and employees were not provided with proper supervision. Faisal was spending his time for his personal business without informing others. Bob tried to improve Faisal’s performance but all in vain. Faisal was using equipment of the company for his personal use. He was caught watching pornography. Because of all these reasons, BOB remained with no other option and fired Faisal.(Flynn and Stack, 2006)
There are many reasons for cessation of employment. They are as follows-
Employment exit procedure means termination of employees in a professional way. It applies to the employees who have resigned and those that are terminated from an organisation. As far as the exit procedure of Chicken master is considered, the company has uses dismissal as the method of terminating the job if Faisal. The procedure that has been followed in dismissal is discussed below:
The exit procedures of the companies are more or less similar to each other. Tesco uses almost all the methods of termination to terminate the jobs. The general procedure followed by the company is as follows:
It is important to make sure at the time of dismissal that there should be a fair reason for dismissal. An employer must behave in a proper way with an employee. Its procedure should include the set of advices in the Acas (Advisory, Conciliation and Arbitration Service) code of practice, or the Labour Relations Agency (LRA) code of practice for Northern Ireland. Under Employment Rights Act 1996, there are many rules and regulations that are mentioned to safeguard the interest of employer and employees. (Flynn and Stack, 2006)
1. The rules for dismissal and redundancy are-
2. Dispute resolution-
ACAS code of practice-It considers that whether the reason for dismissal is sufficient or not. Guidance should be given to employees related to ACAS code of practice. (Lussier and Hendon, 2013)ACAS code of practice contains-
Impact of the legal and regulatory framework on Chicken Master cessation arrangements: According to the scenario, Faisal filed a case against Bob on charge of race and age discrimination. The case filed against Bob is under ACAS code of practice. Bob should take advice from the ACAS, as it is the case of dismissal. The presence of employment tribunal provides the right to the employees like Faisal who have been dismissed to file a case against the employer. The tribunal is responsible to investigate and give fair judgement. This tribunal also facilitates the employers to file case against the employees in case of any disputes and wrong practices.
Human Resource Management is an important part of an organisation that is responsible for many functions like recruitment, selection, performance evaluation, performance appraisal, stress management etc. An organisation works for the achievement of goal and that goal can be achieved when there is an efficient and effective utilisation of resources. Human resources are the employees who work for the achievement of the objectives and goals of the organisation. They must be provided healthy and proper working environment so that it becomes easy for them to contribute their efforts and skills at right place. Motivation of employee is necessary for an organisation. There are many monetary as well as non-monetary ways of motivating the employees of an organisation like bonuses, health care services and other benefits. They should be provided proper training and development facilities that can enhance their skills and results in an effective outcome.
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