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Diploma in Business
Unit Number and Title
Unit18 Human Resource Management IHG Hotel
Intercontinental Hotel Group is of the largest hotel in UK and operate the business in different parts of the world. HRM (human resource management) plays vital role in planning and managing the man power in the organization. The current study depicts the difference between HRM and PM (personnel management) and reflects the function of HRM for achievement of goal. Human resource management IHG hotel report evaluates the role and duty of line manager in human resource management and impact of legal and regulatory authority framework on HRM. It will evaluate the reasons of HR planning in the Intercontinental Hotel Group and stages involved in planning of man power requirement. The study compares the recruitment and selection process in two organizations and throws light on the effectiveness of the recruitment and selection technique of two organizations. The report assesses the link between motivational theory and reward theory and evaluates the process of job evaluation and the factors determining pay. The report assesses the reason for cessation of employment in the organization and employee exit procedure in the organization.
PM is a part of management concerned with employees at work and their relationship within the organization. PM involves obtaining, using and maintaining a satisfied workforce in an organization for the purpose of contributing to organizational, individual and societal goals (Klingner.et.al, 2015). HRM is the process of managing people in organizations in a structured and thorough manner by forming a collective relationship between management and employees.
Figure 1: Functions of HRM
Table1: Difference between Personnel management and HRM
HUMAN RESOURCE MANAGEMENT
Personnel management is a process of managing the people working in the organization.
Human resource management is the process of managing the people and their strength in the organization.
Top management takes all the decisions (Riccucci, 2015).
Decisions are made collectively by top management authorities, employees’, etc.
Transactional leadership style
Transformational leadership style
Treatment of employees
Employees are treated as input for achieving the goals of an organization.
Employees are treated as valuable asset of an organization (DeCenzo.et.al.2010).
Mainly focuses on increasing the productivity and satisfying employees in the workplace.
Mainly focuses on culture, effectiveness, productivity and employee’s participation.
Job design is done by dividing the work.
Job design is done by using teamwork or group work.
Training and development opportunities
Employees are provided with less training and development opportunities.
Employees are provided with enhanced and effective training and development programmes and opportunities.
For example, British Airways uses personnel management.
For example, IHG Hotel uses human resource management in their organization (Hendry, 2012).
The human resource management functions help an organization in achieving the goals and objectives efficiently and effectively. Some of the important functions at IHG hotel are:
Figure 2: Functions of HRM
Line managers have important role as they are responsible for managing the employees who report them as well as plan the strategies to achieve the organisational goals. The line manager directs a revenue generating department in an organization. The line manager of IHG hotel is accountable for successfully achieving the goals and objectives of the organization (). The line manager of IHG hotel has the following roles:
Figure 3: Roles of Line Managers
The line managers play a pivotal role in the IHG Hotel in implementing the people policies and practices and helping them to bring the efficiency in the production. The line managers are supported by HR for performing the specific people-related activities like recruitment and selection activities, providing training and guidance to the workforce, dealing with discipline and grievances, undertaking performance appraisals, etc (). The line manager in IHG Hotel needs to plan strategies which are aligned with the organisational goals and should encourage the employees to give their best.
It is noticed that the employees who feels positive about their relationship with the line managers are more productive, loyal, committed and have higher levels of job satisfaction. The line manager helps in building the strong and effective team and good working environment in the IHG Hotel. The line managers are also responsible for identifying the risk in the IHG Hotel and taking the appropriate course of actions for overcoming with the risk prevailing in the organization
The legislation and legal frameworks related to employment helps in establishing and continuing smooth association among the management and the employees by dealing with the body of laws. The legal and regulatory framework influences the operations and activities of the organization such as IHG hotel including the human resource management. The legislation involved the issues related to the discrimination, working condition, health and safety of employees in the workplace, legal working age, etc (Conley, 2014). Following are the some of the legal and regulatory frameworks which influences the human resource management:
Figure 4: Legal Environment of HRM
The comprehensive human resource planning is must required in an organization such as IHG hotel for its future growth. The comprehensive human resource planning covers all important aspects of the organization including recruiting the talented staff, administration over employee policies, management of payroll and benefits and employee high skilled training programmes (DeCenzo.et.al, 2010). The reasons for having the human resource planning in IHG hotel are as follows:
Figure 5: Need of HRP
HRP ensures that the human resources are used in best possible manner. This is done by using the right resource at the right role and job. Following are the different stages of HRP:
Figure 6: Stages in Human Resource Planning
The process followed foe the selection and recruitment of employees at IHG hotel and Virgin Media is different. The following presents the comparison for the two organisation:
Recruitment and Selection process of IHG Hotel: In IHG Hotel there is no proper HR planning policy in the organization. The current recruitment and selection process in the IHG hotel is followed by inviting the resume of the candidates by giving the advertisements on Medias like television, newspaper and their official websites (French and Rumbles, 2010). The resumes collected are then processed for screening for finding the most suitable resume among all available resumes of the candidates. After screening, the selected candidates are given a telephonic interview before facing the direct interview. The questions asked in the telephonic interviews are the following:
After this, the applicants go through a test to check their aptitude. A psychometric test is also taken. The short listed candidates are then selected for further direct personal interview were their skills and knowledge is tested by following a direct observation of their body language. The most desired one is selected in the last final round i.e. the direct interview and he is hired for the vacant job in the organization by providing the appointment letter.
Recruitment and Selection process of Virgin Media: The Virgin Media uses the online recruitment system. The applications received are further invited for conducting the face-to-face interview. The deserving person with the require skill and knowledge are then selected and an appointment letter is provided to him for filling the job vacancy in the organization (Chaneta, 2014). In direct interview, the organization focuses on job description and job specification features for recruiting the right and capable person.
The recruitment and selection technique used in IHG Hotel is more effective as compared to the recruitment and selection technique of Virgin Media. The recruitment process of IHG hotel is effective because it provides an equal opportunity to all the applicable candidates to have a job in their organization. With the motive of providing equal opportunity, they advertise their job vacancies in various publishing and print media like television, newspaper, magazines and internet and on their official websites (Date.et.al, 2014). This also increases the availability of more number of potential candidates for filling the job vacancy in the organization.
The selection procedure is also effective as compared to the Virgin Media. The selection process for choosing a best potential candidate among all the candidates is done by conducting the telephonic interview, psychometric assessment, an aptitude test and face-to-face or direct interview (Wood.et.al, 1998). The selection process of IHG hotel will become so effective and complete if they also introduced the new policies on HR planning and using the features of job description and job specification for filling the vacant post in the organization.
Motivations are useful to direct the workforce towards the organizational objectives and defined organisation behaviour . Motivational theories are framework to implement effective reward system. Herzberg motivators are useful in reward planning and strategies so that employees can be motivated toward the culture and performance in organization. Virgin media also analyze the requirements of employees on the basis of Maslow’s motivation so that more satisfaction can be delivered to employees to get advantages in improved performance and quality. Also, Virgin media uses the McClelland’s Need Theory in reward systems to ensure the motivation through the power and achievements in workplace. The reward system of Virgin consist the practices and objectives defined by motivational theories so that more effective and satisfactory behaviour can be achieved in workplace (Lepper and Greene, 2015).
The reward system of IHG is somehow different than Virgin media because employees are treated for capital profits rather than loyalty and trust. Reward system is likely to be based on Taylor’s theory which focused on the capital based motivation. Thus, IHG provides rewards those are worthy to compensate with employees’ needs and expectations. Also, IHG uses the reward-personal goals relationship as defined by Vroom to reward the employees to meet the personal goals with organizational objectives. IHG uses the motivation theories those are concentrated more on productivity rather than loyalty with organization (Byron and Khazanchi, 2012). Rewards are back end by bonus and intensives as motivations with parallel load of productive and innovative returns from employees.
Job evaluation process is necessary in order to find the contribution from each member and to offer the transparent and right distribution of rewards to employees those have right on achievements. Virgin media uses the performance, quality and behaviour of employee in work done to consider the overall job performance of employee. This is effective to lead the employees towards the better job performance and work culture of organization. Individual’s job is evaluated with standards defined by organization as goals and targets (Mawoli and Babandako, 2011). In IHG, job evaluation of employees is based on the performance and quality in work. Individual’s behaviour and management is not considered as the parameters. Thus, employees in IHG are assumed as the working units rather than as assets to organization.
Pay determination at Virgin media is simple because there is basic salary to employees and then hierarchical goals are set to meet so that more intensives and benefits can be takeover. At other side, IHG determine the amount of work done and performance by employees as the basis of payment for a specific time. Payment to employee in Virgin media depends on the skills sets, experience and performance in work. Also, organization has options to determine the pay scale as accordance to business conditions in market (Galuscak.et.al.2012). However, IHG is more centric to performance and quality to vary the payment of employees so that they can only be directed towards the productive culture.
As reward system of Virgin media is inclined at the development of loyalty and the trustworthy culture along with the organizational objectives and profits. The strategy of Virgin media to treat the employees as the assets is at core of reward system which makes it more effective in comparison of IHG. Virgin media’s rewards follow the standard practices and principles of motivational theories in implementation of reward strategies so that employees can achieve the compensation for needs as well vision the personal growth in workplace. Hierarchical rewards as accordance to responsibilities and performance keeps the employees motivated to meet the standards of Virgin media organization (Armstrong.et.al.2011). Also intrinsic rewards are good to attract and retain the employees in workplace. Extrinsic rewards are high valued to add the functionality in employees’ performance and knowledge.
Reward system of IHG is also effective but capable only to provide money values to employees. Performance and quality in work of employees are praised with bonuses and intensives so that management need not to worry about the offers and products as rewards. This is effective due to organizational branches in different location. Employees can use the capital received as rewards as they want. However, Virgin media’s trips, fair shopping and vacations as rewards are more capable to enhance the innovative, motivated and positive nature in employees. Also the reward system of HIG seems less transparent to employees (Chen.et.al.2012).
Performance of employees is required to monitor in workplace so that management can vision the advantages with employee for those paying an amount. Also, it is required to guide the employees in right directions as it will increase the productivity and quality in products of Virgin Media. Employees also get the chance to improve their personal skills in order to meet personal objective mapped with rewards. Virgin media mainly uses the two tools to measure the performance of employees:
Employees in an organization are hired to add values to functionalities and performance of organization so that a sustainable position in market can be achieved with a great margin on profits. But Faisal did not played the role for that he was hired accordance to experience in industry. Like every other employees, Faisal also received the booklet of rules and polices defined by Chicken Master. Faisal was observed not capable to manage the organization in term of resources and culture as most of time kitchen and front store were dirty and improper behaviour with customers is seen (Butler.et.al.2010). Faisal used organizational resources for unethical activities and to accomplish personal needs and goals rather than organizational objectives which were against the policies of Chicken Master. Addition to it, wastage of business time and capital were reasons behind the termination of employment contract. Also Chicken Master got unsuccessful attempts of improvements in Faisal’s behaviour. Therefore Bob had no options other than to terminate the employment contract with Faisal.
Normally employment contract is terminated for retirement, resignation and dismissal purpose. It occurs in dismissal form because of poor performance, bad behaviour, work against the policies and rules, high number of absentees and negative perception towards the operations in organization (Lagerveld.et.al.2010). Retirement and resignation are employee relationship will which may be due to achieve more benefits in other organization or due to retire from the industry because of overage.
Organizations need to follow systematic procedures to ensure the proper exit of employees so that any future chances of conflict and confusions between employee and employer can be removed. Chicken Master uses the following procedures:
This is effective due to the restaurant is in development process and have a few number of employees in workplace. However, procedure followed by IHG is more effective for a large and secure organization:
If employee is not satisfied against the reason of firing from job, legal and regulatory framework helps him to protect rights. However, employee as well as organization needs to have sufficient evidence to claim their actions. Employment cessation in Virgin media is fully based on legal laws and regulations so that any mismatch between employer and employee can be eliminated regarding discriminations and biasing in workplace. Legal and regulatory framework helps the employees to stand for rights and equality in Virgin like organizations (Haidar, 2012). In case of cessation, organization must have evidence to prove that employee was violating the policies and rules of organization and not using capabilities for that hiring was made.
However, the claim of Faisal doesn’t looks right because Bob has enough evidence in form of digital media, degraded performance and unsatisfied customers to prove that Faisal was not appropriate selection for Chicken Master. Legal frameworks help the organizations to claim the loss with cessation of employment whereas employees have rights to prevent unfair treatment with them (Gouldson and Murphy, 2013). In this manner, Legal and regulatory framework helps the organization as well as employees in cessations to prevent their rights and claims.
The report has been made comparative study of human resource management and personnel management to identify the differences between them. Also the role of line managers and legal implementations on HRM practices has been concluded. The study has been identifies the importance of human resource planning and the ways in which it can be used in favour of organization. The report has been highlighted the relationship of motivational theories and reward system. The effectiveness of reward system has been concluded along with methods to implement them. Also, various methods to measure the performance of employees have been described in detail. Later section of report has been described the cessation of employment contract and impact of legal framework on cessation of employees from workplace. The report has been detailed the reasons behind the cessation.
Books and Journals
Altman, S., Valenzi, E. and Hodgetts, R.M., 2013. Organizational behavior: Theory and practice. Elsevier.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management practice. Kogan Page Publishers.
Armstrong, M., Brown, D. and Reilly, P., 2011. Increasing the effectiveness of reward management: an evidence-based approach. Employee Relations,33(2), pp.106-120.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave Macmillan.
Bruck, H., 2008. Recruitment and Selection process.
Bryson, J., James, S. and Keep, E., 2013. Recruitment and selection.Managing human resources. Human Resource Management in transition, pp.125-149.
Butler, S.S., Simpson, N., Brennan, M. and Turner, W., 2010. Why do they leave? Factors associated with job termination among personal assistant workers in home care. Journal of Gerontological Social Work, 53(8), pp.665-681.
Byron, K. and Khazanchi, S., 2012. Rewards and creative performance: a meta-analytic test of theoretically derived hypotheses. Psychological bulletin, 138(4), p.809.
Chaneta, I., 2014. Recruitment and Selection. International Journal of Management, IT and Engineering, 4(2), p.289.
Chen, C.X., Williamson, M.G. and Zhou, F.H., 2012. Reward system design and group creativity: An experimental investigation. The Accounting Review,87(6), pp.1885-1911.
Chourabi, H., Nam, T., Walker, S., Gil-Garcia, J.R., Mellouli, S., Nahon, K., Pardo, T.A. and Scholl, H.J., 2012, January. Understanding smart cities: An integrative framework. In System Science (HICSS), 2012 45th Hawaii International Conference on (pp. 2289-2297). IEEE.
Conley, H., 2014. Trade unions, equal pay and the law in the UK. Economic and Industrial Democracy, 35(2), pp.309-323.