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Unit 18 Human Resource Management Assignment Diageo and Ford
Diploma in Business
Unit Number and Title
Unit 18 Human Resource Management Diageo Ford
Human Resource Management is a term which includes many aspects and the report will include all the aspects of Human Resource Management which are practical in the world of human resources. The Unit 18 Human Resource Management Assignment Diageo and Ford covers the planning, recruitment, motivation, job evaluation, cessation and many more aspects of HRM. These are discussed either by taking an example of a company or by referring the case studies given. Different tasks will provide knowledge that how these issues are handled in the practical world of business. The tasks covers the differences in HRM and personnel management, human resource planning, motivational theories and rewards to the employees and link will be established between the two, termination of employees and the employment laws of UK will be discussed.
1.1 Differentiate between personnel management and human resource management giving examples in two suitable organisations.
Human resource management is a new concept. It can be said that it is an updated version of personnel management. In past years HRM has changed a lot from what it was earlier. Personnel management can be taken as an older version of HRM which is concerned only with the workers of the company and HRM on the other hand covers employees and other functions which are helpful in achieving the ultimate objectives of the organisations. The difference between these two concepts will be explained in a table given below with the help of two organisations which are Diageo and Ford (Foot, et. al., 2016).
Diageo is a global leader in the alcoholic drinks and it creates a business which is closer to the consumers by focussing on their choices. It is a British company which operates in over 30 countries and has around 4000 employees across the world (Diageo.com, 2016).
The second organisation is Ford in UK which is an American multinational automobile company but operates worldwide and is rich in business and culture in organisation (ford.co.uk, 2016).
Human Resource Management
HRM can be referred to the management function which not only maintains the human resource of the company but also integrate their operations with the culture and structure of the organisation so that the goals and objectives of the company can be achieved.
Personnel management is the administrative function of the company which also keeps records and is responsible for maintaining the fair terms and conditions for the employees (Foot, et. al., 2016).
The approach of HRM is modern and they not only focus on managing the people in the organisation but also lead them to achieve the ultimate objectives of the companies. Diageo and Ford have efficient HRM to achieve the objectives (Dessler, 2015).
The approach of Personnel management is traditional as it only focuses on management of human resources. Ford and Diageo have personnel management automatically when they have Human Resource management in the organisations.
The functions of HRM are integrated with the core activities of the organisation which helps it in achieving the goals of the company. That is why, Diageo and Ford have strong HRM so that their corporate objectives can be met.
Personnel management have nothing to do with the core activities of the organisation. Its only function is to manage and satisfy the human resources. Diageo and Ford are very well performing these functions.
HRM is in involvement with the other functions of the management and it gives more focus on handling the employees individually rather than dealing with the trade unions.
Diageo and Ford are the companies which concentrate on HRM and mostly the employees working on salary are managed by HRM.
Personnel management is a separate function which does not have any relation with the other functions and it also makes process with the trade unions by keeping them satisfied (Dessler, 2015).
Normally, the workers who work on wages are managed through personnel management in Diageo and ford.
These differences show that Personnel management is included in HRM and HRM is the present concept which is adopted by all the companies nowadays.
1.2 Assess how human resource management functions help your chosen organisation in achieving its purpose.
- Human resources are the most important asset of the organisation which helps the companies to achieve its objectives and goals and convert ideas of the company into the actions. Managing human resources is not an easy task, it is challenging and dynamic which includes many functions to be performed so that the organisation can achieve its purposes (Beardwell & Thompson, 2015).
Below given are some of the functions of the Human Resource Management in Diageo which are interrelated with each other:
- Planning: Human Resource planning is the estimation of future requirements of the manpower in Diageo for which the current strength of manpower is analysed and calculated and then the difference between the available and required workforce in the organisation and necessary actions are taken to bridge the gap (Lunenburg, 2012).
- Job analysis: Job analysis is the study of the job to determine its requirements or it can be referred as a procedure which includes collecting information about the job in Diageo and its requirements and necessary talent and skills to fulfil the job successfully.
- Recruitment: Recruitment can be referred as the process of attracting maximum no of talents so that they can apply for the vacant positions in Diageo.
- Selection: selection is when the different candidates are analysed on the basis of their knowledge and skills and then they are finally selected for the job, if they meet all the requirements of the job (Kramar, et. al., 2013).
- Training: The employees in Diageo are trained for various operations time to time so that they can be updated and educated with the latest innovative technologies and methods which will help the company ultimately in achieving its objectives. It will develop the employees and their knowledge which will help them expert in their operations.
- Performance appraisal: It is the evaluation of the performance of the employees and to analyse their abilities so that they can be promoted or rewarded for their good performance. The future career growth of an employee is based on his performance which is evaluated through performance appraisal (unisa.edu.au, 2016).
1.3 Evaluate the role and responsibilities of line managers in your organisation or familiar organisation and how it supports human resource management functions.
Line managers are those who are the key persons in the success of the team and the organisation. They play a role from a guide to a colleague. They help the organisation in delivering the goals and objectives of the organisation. The line managers are responsible for many functions in Diageo which are given below:
- To manage employees through planning: The main role of line managers is to manage the employees of Diageo and to make them focussed for achieving the goals and objectives of the company. They also determine the correct no of employees in the team and look out for any requirement for more employees (Lunenburg, 2012)
- Training and Development: the line manager acts as a guide for the employees and conduct training programmes for the workers so that they can develop and grow in their career. Training also make the employees learn to experience and face the difficulties and to manage the critical situations in the organisation.
- Promotion of equality within the team: line managers are responsible to maintain equality within the team members. All the members are given equal rights to present their problems, issues or ideas to the line manager and line manager of Diageo is required to avoid favouritism and give fair chance to every employee to perform.
- Provide reasonable support: Line managers are required to provide reasonable support to the employees of Diageo. They supervise the employees and guide them for giving good efforts. Line managers also encourage the employees to achieve the objectives of the Diageo (CIPD, 2016)
1.4. Analyse how legal and regulatory framework impact on human resource management.
There are some laws and regulations framed by government of United Kingdom for the benefit of employees and employers and which have to be followed by Diageo for maintaining smooth operations in the industry. These regulations are given below:
- Sex Discrimination Act (1995/ 97): This act has been enacted so that no discrimination can be done between men and women on the basis of their gender (employmentlaws.co.uk, 016)
- Race Relations Act (1992): Race relations act is made to stop the discrimination made between different employees on the basis of their caste, creed, colour, nationality or on their marital status.
- Equal pay act (1970): The equal pay act is made so that each employee on the same level in the organisation get equal pay and no favour is been made for a specific employee in the organisation.
- Employment act (2008): This act has been made by the government to solve any kind of conflicts or disputes between the employer and the employee. Both have to abide by the rules.
- Data Protection Act (1998): This act has been made for the protection of all the data which is gathered and stored by the company for its operations (employmentlaws.co.uk, 016).
2.1 Analyse the reasons for human resource planning
Human Resource Planning can be referred as to the process in which an estimation of present workforce in the organisation is done to meet the future requirements of the workforce in the company. Diageo has to maintain an optimum level of workforce so that its operations can run smoothly and no hurdle can stop the process of production of products. A demand and supply analysis of workforce is been done and then the gap between the two is to be filled up by recruiting more employees who are suitable for the vacant positions (Stone & Australian Human Resources Institute 2014).
There are many reasons for Human Resource Planning in Diageo:
- To acquire talented resources: It is very important for Diageo to acquire right people for right job and at right time for which Human Resource planning is needed. There is shortage of skilled people in the company and due to the employees who leave the organisation because of retirement or switching of jobs; there is need of qualified employees.
- To meet up the changes in technology: There is a constant change in technology and because of globalisation it is very important to meet up the latest technology for which human resource planning is needed so that Diageo can cope up with the changes properly.
- To fill up the requirement of no. of resources for new projects: The company come up with new projects every now and then. The launch of new products, production of new variety of drinks in the company lead to the requirement of more employees which can be determined with the help of Human Resource Planning (Stone & Australian Human Resources Institute 2014).
- For maintaining budget of the company: Human Resource Planning is required to maintain the extra costs of the company on the human resources which are not productive for the company and to determine the funds which required for the recruitment, selection or training of employees.
2.2 Outline the stages involved in planning human resource requirements
As discussed Human Resource Planning is an essential function of Diageo which helps in estimating right no. of employees for the company and assessing the present no. of employees for matching the demand and supply of the workforce so that optimum no of workforce can be maintained at the organisation (Samolejová, et. al., 2015). This is done in a proper process which has been explained below:
The following are the steps of human resource planning done at Diageo:
- Analysing the need of Human Resource: First of all, the information about the need of human resources in Diageo is collected so as to determine the organisational objectives
- Forecasting the demand and supply of manpower: This involves considering the future needs of manpower in the organisation. The demand of the manpower is assessed and then the supply is determined to match both and estimate the gaps between the two. Excess supply of manpower will lead to termination of employees and shortage of manpower will lead to recruitment and selection of more employees in Diageo.
- Planning strategies: After determining the excess or shortage of manpower in Diageo, the planning strategies are made. The business strategy can be promotion of existing employees, recruitment and selection, retain the staff or termination of staff. These strategies will fill the gap between the demand and supply of manpower in Diageo.
- Implementing the strategies: The strategies once formed will be implemented with the help of support of organisation and coordinating different functions.
- Evaluating the implemented strategies: Once the strategies are implemented, these are to be monitored time to time to watch out whether these are working properly or not. This evaluation can be done through surveys, meetings, etc. (Samolejová, et. al., 2015).
Process of Human Resource Planning
2.3 Compare the current recruitment and selection process in the organisation with another organisation you recommending.
Recruitment refers to the process in which maximum candidates are attracted to apply for the jobs so that the best suitable is candidate is selected for the position. Selection is finally choosing the candidate who is most suitable for the position. The current recruitment and selection process of the given organisation in the case study will be compared to the recruitment and selection process of Diageo in this task (Hafeez & Aburawi, 2013).
According to the case study, the given organisation is facing a high turnover and it needs to select the best people for the job. There is no HR policy and the recruitment process of the organisation starts with the telephonic interviews of the candidates who applied for the job through online advertisements by the company. The selected candidates in the telephone interview are then called up for face to face interviews where they are asked several questions about their life goals, their past experience and reasons to apply for this job. After the interview, a psychometric test is taken with an aptitude test on the basis of which the candidates are finally selected for the role (Hafeez & Aburawi, 2013).
To compare, the recruitment and selection process of Diageo has been discussed here. Being a drinks company, this company is doing marvellous in the industry which is because of its highly talented and dedicated workforce. The company looks out for the capable graduates who can be the leaders of future. The company gives an option for the eligible candidates to apply for the positions on their official website. Online questionnaires are provided by which the company will get to know the candidate in a better way. The selected candidates are then interviewed by video call where the questions are asked related to the role for which the candidate has applied and they are told about the required roles and responsibilities. The final challenge which is given is the one day assessment of the candidates at the centre of the company where they are again analysed on different parameters like communication, leadership quality, skills and talents of an employee (diageo-careers.com, 2016).
2.4 Evaluate the effectiveness of the organisation recruitment and selection techniques with another organisation you recommending.
The recruitment and selection techniques of both the given organisation and Diageo are completely different. Where the given organisation follows a typical recruitment process of telephonic interview and face to face interview and aptitude test, Diageo follows a very interactive recruitment and selection process where the candidate is evaluated on the basis of his interactive and interpersonal skills, knowledge and practical experience in the past (Härtel & Fujimoto, 2015).
The process at Diageo for recruitment and selection is capable and effective for selecting the candidates who are perfectly fit for the given role and position. For this they are tested through video call, online questionnaire and then assessment at their centre where they can assess the candidates live on the basis of many parameters. The given organisation fails in selecting the suitable candidate because the candidates are shortlisted at each stage which does not give equal chance of presentation to each candidate. Once a candidate fails one round, he is rejected to apply for the next round whereas in Diageo, the candidates after video call are not shortlisted and are called for one day assessment where they are tested and then the final candidates are selected for the given role (Härtel & Fujimoto, 2015).
Task 3- Case study of Virgin Media
Introduction: The task is based on the case study which is about Virgin Media and it includes the discussion about various motivational theories and their role in the organisation. Job evaluation and its process is been discussed below and the methods through which the performance of the employees can be monitored will be discussed.
3.1 Assess the link between motivational theory and reward at Virgin Media or your chosen organisation. Your answer must show if you think there is a link, what connects the two.
Motivational theories are those theories which help in creating motivation in the employees at the workplace and reward is what the employee received in recognition of his performance and achievements. There is a link between these two at Virgin Media. Motivation is that technique or method through which the employees can be encouraged at the workplace to work more or to increase the efficiency. The employee is motivated in Virgin Media through various methods like Pay, promotion, incentives, involvement in the organisation and many more. To understand it in detail, first of all, the motivational theories are discussed under to know their process and concepts and its link with rewards is shown (unisa.edu.au, 2016).
Maslow hierarchy of needs theory: This theory was originated by Abraham Maslow in which the motivation process of an employee is been explained through five stages. According to this theory when an employee reaches one level, he longs for the next level and live this process moves on to the final step. The stages in this theory are:
- Physiological needs: These are the needs which are to be fulfilled by every employee for a basic living like job pay, food, shelter and more.
- Safety needs: This is the next level at which the employees longs for security in the job along with basic pay.
- Love and belongingness needs: These needs arise when the employees longs for good relationships with staff, colleagues and family.
- Esteem needs: These needs are those where an employee demands achievement in his career and want to gain status in the society.
- Self actualization needs: this is the last stage where an employee works for his personal growth and for gaining experience in his life (MCMAHON, 2011).
The below given diagram will make it more clear:
Abraham Maslow Hierarchy of needs Theory: The theory shows that how a worker goes on stage by stage and reaches the position of self actualisation. On working effectively, the worker is awarded by the employer and then he moves to the next level. The link is established when the employee workers hard and rewarded to move on to the next level and by this way an employee is encourages to work more effectively. This clearly shows that there is a link between motivational theory and rewards.
Theory X and Y: This theory of motivation is given by Douglas McGregor in 1960 and he gave two models which were named as theory X and Theory Y. In theory X it is assumed that the worker is dissatisfied with the job and d not wants to work for the company. He does not have any aim and responsibility and the management has very strict control over the employees whereas in Theory Y it is assumed that people are guided properly and given proper freedom to take decisions and they are given responsibilities. Employees have aims and objectives and they maintain healthy culture within the organisation. So, Virgin Media should use Theory Y to motivate its workers for the common goals and objectives (lithespeed.com, 2016).
The link is established between the theory and the reward as when theory Y is adopted by Virgin media, the employees are motivated and they work more effectively which provides them rewards in the form of promotions, bonus or incentives whereas Theory X will make them de motivated and there will be no chances of rewards in that case. The below given diagram clears the different styles of attitudes of employees in the organisation according to different theories (lithespeed.com, 2016).
Theory X and Y
3.2 Evaluate the process of job evaluation and other factors determining pay at Virgin Media or your chosen organisation
Job evaluation is determining the value of the job by comparing it to the other jobs and it can be referred as rating of jobs in the organisation. Job evaluation is done mainly for determining the pay of a particular job and to determine the responsibilities given to every employee in Virgin Media. Job evaluation follows a process which is given below:
- Job analysis: It is the analysis of the requirements of a job. Job specifications are checked and Job description is read.
- Rating of Job: The job is rated according to its requirements, skills and efforts required. Rating can be done through quantitative method and qualitative methods like comparison with other jobs and classification of jobs is quantitative in nature while point rating method is quantitative
- Allocation of money: Money is allocated by the organisation
- Job classification: The jobs are classified so that the pay design and salary structure of the employees can be made fixed (Härtel & Fujimoto, 2015).
The factors which are responsible for determining the pay of a job at Virgin media are given below:
- The working conditions
- The industry rules and regulations regarding salary
- Performance check of an employee
- The experience of an employee
- Growth rate of an organisation (Härtel & Fujimoto, 2015).
Methods of job evaluation: For evaluating the jobs there are various methods available which are Quantitative techniques like ratings by points, factor comparisons and other factors. The qualitative data is collected and evaluation is done through comparisons between different jobs (Härtel & Fujimoto, 2015).
3.3 Assessin different contexts (for e.g. attracting talent, retention, motivation) how effective is the reward systems at Virgin Media or your chosen organisation
Rewards can be referred to something which is provided to employees when they work well by putting their efforts. It helps in motivating the employees and retaining them. It also attracts new talent in the organisation. Te reward systems at Virgin media can be in the financial accounting terms like bonuses, incentives, etc and they are also known as extrinsic rewards and rewards can be in non financial terms like promotion, Positive appraisal, recognitions, etc. which is also known as intrinsic rewards. Rewards systems continuously helps in keeping the employees satisfied in the organisation. Virgin media uses different stages to provide rewards to the employees. The company uses effective recruitment and selection method for attracting the best suitable employees for the positions and also gives training to them so that they can develop themselves. Virgin Media provides extra pay to the employees for their hard work which encourage them to continuously work hard and gain some more from the organisation. They also get recognition in the team which provides motivation to them and more employees are retained in the organisation (Stone & Australian Human Resources Institute 2014).
3.4 Examine the methods Virgin Media or your chosen organisation use to monitor employee performance.
It is very important to monitor the performance of the employees in order to check the continuous development of an employee and growth of an organisation. The desired or expected performance of the employees and different from the actual performance which is to be evaluated and it is done by using various methods. The measures which are used by Virgin media for doing the same are:
- Quality check: The products or services produced or provided by the employee should be checked to see whether the quality criteria is been met or not.
- Self evaluation: here, the employees are asked by Virgin Media to evaluate themselves on every basis like communication, target meeting, attendance, punctuality, etc. The employee answers all by him all these questions related to their performance and the results will help the employee himself and the company to know that what actions should be taken.
- Feedback forms: Here, the feedbacks are taken from the employees for the company that what do they think about the company and what changes are required according to them which will add up to the strengths of the company.
- Client surveys: Here, the customers is asked to rate the services of the employee which tells the company that how an employee is working (Dessler, 2015).
These methods are effective in monitoring the performance of an employee which will help the company to be more productive and to be on right path. Regular evaluation helps the employee himself to bring improvements in his work and help an organisation to increase the overall productivity and efficiency of work (Kramar, et. al., 2013).
4.1 Identify the reasons for termination of Faisal’s employment contract with The Chicken Master and generally explain other reasons for cessation of employment.
Cessation is when an employee leaves the organisation either voluntarily. In the given case study, Faisal was a worker at The Chicken Master and Bob tell him to resign when he confirms that Faisal is hampering the organisation with his unethical activities and he is also using the personal equipments for the use of his personal work which is not allowed and this has been informed to all employee through a rule book (Beardwell & Thompson, 2015).
There are many reasons because of which the employee leaves the organisation:
- Poor performance of an employee: when an employee fails to deliver good performance and perform poor constantly in the company, his chances of exit are more.
- Involvement in unethical activities: When an employee involves in some unethical activities which hampers the image of the organisation, the employee is asked to leave the company as soon as possible.
- Unhealthy environment at the workplace: unhealthy environment at the workplace de motivates employees to work and it makes the employee to leave the organisation on his own will.
- Job dissatisfaction: When an employee is not satisfied or motivated, he leaves the job.
So, basically there are two types of termination one is voluntary where the employee himself decides to leave the organisation and the is involuntary where the employee is asked to leave the organisation by the employer. Voluntary termination may be because of dissatisfaction from job, better opportunities somewhere else, inequality in the company, etc while the involuntary termination is because of breaching the terms of unemployment by the employee, poor performance, etc. (Beardwell & Thompson, 2015).
4.2 Describe the employment exit procedures used by The Chicken Master and another organisation of your choice
The employment exit procedures are different in different companies. The exit procedure of The Chicken Master is according to the laws and rules of employment by the government of UK. There are two ways of leaving the job which are already discussed above- Voluntary and non-voluntary. If an employee have to leave the organisation on his own will then a proper notice is to be given to the reporting developing manager or the owner i.e. Bob in the given case. When the owner gets informed about such decision then they take an exit interview where the employee is convinced to stay with the company and when the employee does not change has mind then he is asked to serve a notice period of one month.
If an employee leaves the company because he is asked to leave by the owner, a notice is been issued against the worker for his dismissal and once he given chance to keep his views and then in case of failure of satisfying answers, he is asked finally to leave the job (Foot, et. al., 2016).
4.3 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.
According to the given scenario, Faisal is not correct as he violated the terms of employment with The Chicken Master. But he filed a case against Bob that he terminated Faisal and appointed a lady which shows that discrimination and gender inequality took place. This comes under the Sex Discrimination Act 1995/97 and it has to be followed by The Chicken Master in order to follow the law system of the country.
In case Faisal proves to be true then he posses various rights against The Chicken Master. According to the employment laws of the country which are made for the benefit of employees and employer both, the termination of Faisal is before his terms of employment with The Chicken Master. The company might have to reemploy him or to pay compensation to Faisal in case he is proved right in the court and in the eyes of law. So Faisal has to be proved wrong in order to terminate him for his unethical work at the workplace (Foot, et. al., 2016).
Human resource management is a very broad term which includes many sub activities like planning, recruitment, selection, training, etc which all together makes up Human resource Management. The process of Human Resource Planning helps in estimating the right no of employees in the company and the difference between HRM and personnel management has also been discussed which shows that personnel management is a narrower term and it is a part of Human Resource Management. Different motivation theories discussed which shows that there is a link between motivation and rewards. At last, the case studies of Virgin Media and The Chicken Master are discussed.