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Unit 18 Human Resource Management Assignment Prudential Plc
Unit 18 Human Resource Management Assignment Prudential Plc assignment relates to the human resource management processes at different organizations such as Virgin media, Prudential Plc., Virgin Atlantic and JBC. The various activities forming the part of human resource management process are discussed in context of these organizations and comparison between them under different circumstances and situations. These activities include personnel management, human resource planning, selection and recruitment, motivation, retention and reward systems and termination and dismissal of employees. The objective of this assignment is to analyse and evaluate the activities related to human resource management process at different organization on the basis of which the human resource manager will be able to plan and implement human resource policies within the organisation and achieve the purpose of human resource management by getting good and talented people to work for the company.
1.1 Difference between personnel management and Human Resource Management with examples in two suitable organization
JCB is a British multinational company which is largest manufacturer of equipment related to agriculture, construction, waste handling and demolition. Virgin Atlantic Airways Limited is another organization which is a British Airline. The differences between human resource management and personnel management with examples in these two organizations are explained in the following table:
Human Resource management
It refers to as the development and adoption of strategic practices related to the people in an organization integrated with the organizational objectives to make sure that the activities and jobs performed by the staff contribute in achieving the goals of the organization.
It relates to the administration and record keeping of people in an organization so that the terms and conditions of employment are managed and adhered to efficiently.
Level of operation
Operational or administrative level
It is resource centred. For example at Virgin Atlantic the focus in relation to human resources is on three main areas i.e., people development, rewards and HR systems and employee relations which is the part of Human resource management process.
It is workforce centred. For example JCB provides learning, guidance and assistance to its employees for enhancement of their skills and knowledge which is truly part of personnel management process.
Under HRM job is designed on the basis of team work to achieve the goals of organization. For example at Virgin Atlantic team or group of employees are assigned the role of handling each flight as a team with job of each staff specified.
Under personnel management job is designed on the basis of division of labour. For example at JCB division of labour is made on the individual manufacturing project or contract basis.
The purpose of HRM is to develop effectiveness, employee participation, culture and productivity like in Virgin Atlantic the code of conduct is made for the staff so as to define the culture of company.
The purpose of personnel management is to increase production through employee satisfaction like in JCB; the ‘can do’ attitude is developed among personnel so as to de3al with urgency and achieves success.
It involves all the mangers of the organization from top to bottom so as to co-ordinate the job role with organizational objectives.
It involves only the personnel manager since the process relates to employees and staff members only.
1.2 Assess how human resource management functions help Prudential Plc.in achieving its purpose
Prudential Plc. Is an international financial services proving company having its operations in UK, US and Asia. In UK it has been established as leading provider of life and pensions. The human resource management strategy of company focuses on five main elements of human resource management process. These elements are getting right and suitable people into the business for the business, building and rewarding performance of people at company, growing strong and capable talent pipeline within the company, developing credible successors as human resources for future, develop the company as an organization which works. The human resource management functions of the company completely focus on these elements as a part of HR strategy to achieve long term success for the company. The purpose of the company is to create long term value through long term thinking strategy. The human resource management functions of company which emphasize on human resource development for present as well as future have the potential to achieve the long term value for the company since the development of personnel at the organization will be for long term. (Jackson, 2010)
1.3 Evaluate the roles and responsibilities of line managers in Prudential Plc. and how it supports human resource management functions.
Roles and responsibilities of line mangers:
The roles and responsibilities of line managers at Prudential Plc. and the ways in which they support the human resource management functions are as follows:
- Leading, developing and managing people - The line mangers are responsible for the management and development of people in their respective departments including the recognition and motivation methods adopted and implemented by them within their area of operation and team members. In this way the development of all human resources of the company take place through different processes for management adopted by various line mangers in their departments.
- Conduct regular meetings - The role of line manger to conduct regular meetings and implement effective communication within the organization support the human resource management functions as the regular meeting help in developing good employee relations along with understanding and resolving employee grievances Through regular meetings the irregularities in performance can also be monitored which helps in performance evaluation and performance appraisal.
- Setting standards and parameters – The line mangers are responsible for planning and organising the tasks to be performed by their team members in order to achieve the goals through optimum use of resources assigned to their area of operation. For execution of these plans they need to set standards and parameters for the activities and operations to be performed. These standards can be used as the criteria for performance evaluation by human resource managers as a part of their human resource management process.
- Promoting equality and diversity – The line mangers comply with the equality legislation for promoting equality and diversity in the tasks performed by him and his team members. Therefore it results in compliance of human resource regulation efficiently. (Sekhri, 2010)
1.4 Analyse how legal and regulatory framework impact human resource management.
Impact of legal and regulatory framework on human resource management:
The legal and regulatory framework relates to the protection of rights and interests of employees in an organization along with providing them justice and right of equal employment opportunities. The legal and regulatory framework in UK and its impact on human resource management is analysed as follows:
- Equal employment opportunity – The Employment Rights Act 1996 provides to protect the interests of employees in an organization through giving them right of equal opportunities without any discrimination. The Equal Pay Act 1992 also states that no discrimination shall be made in the employees on the basis of gender in financial terms. This means that the payment of wages shall be equal for men and women based on their work performance.
- Minimum Wages and compensation – The National Minimum Wage Act 1998 ensures that every employee working in an organization gets a minimum wage rate per hour for the work performed by him as specified. Thus it affects the compensation and wage payment process of human resource management in an organization.
- Employee Safety and health – The health and safety laws provide to ensure that the health and safety of employees is not affected during the working hours or due to the effect of work done by them. It directs the human resource processes more towards healthy and safe work environment within the organization for the employees.
- Labour relations – The legal and regulatory framework helps in developing good labour relations in organizations as a result of compliance of labour laws. In this way the human resource management process becomes easy due to less conflict of interests among employees and developed healthy relations among them. (Hall, 2010)
2.1 Analyse the reasons for human resource planning
Human resource planning is the process undertaken by the human resource managers in order to fulfil the manpower requirement in an organization. It helps in the assignment and mobilisation of recruited human resources for the activities and operations relation to production in an organization.
The reasons for which human resource planning is done are as follows:
- Fulfilment of future manpower needs: Human resource planning helps in determining in advance the needs of manpower in the organization currently as well as the future needs. Thuds the recruitment and selection of suitable employees for the specific job role can be done well in time and this helps in the fulfilment of requirement of manpower efficiently and appropriately so that the vacancies can be fulfilled in accordance with the job requirements and delay in recruitment process can be avoided.
- Managing and coping up with changes: Through an effective human resource planning the jobs are assigned to the suitable candidates. The changes which incur due to internal and external environmental factors in an organization can be easily managed by the use of a well-defined plan under which the shuffle of resources can be made between the areas of operation if they are having the relevant knowledge and skill for the job. The resources can also be used efficiently for emergency situations.
- Efficient use of human resources: The measurement of requirement is done in the process of human resource planning. This helps in the utilisation of human resources in the best possible manner. Thus the human resource planning helps in saving the best resources for best job role so that the output can be maximum through maximum productivity of employees. The employees which cannot be used for the job processes can be used in other processes. (Hafeez, 2013)
- Reduction in uncertainty: The pre determination of requirement of needs of employees and recruitment and selection of employees in time helps in avoiding the delay and non-availability of employees during uncertainties. Thus human resource planning helps in coping up with changes and dealing with uncertainties efficiently.
- Recruitment of talented personnel: Human resource planning helps in identification of need of human resources and specifications and requirements of job role to be performed by them which results in recruitment of suitable employees for the job. Since the delay in the process is avoided this helps in recruitment of talented personnel only. The unsuitable candidates can be rejected as the company will have plenty of time to search and recruit more talented employees having the potential to perform better.
2.2 Outline the stages involved in planning human resource requirements
The stages involved in planning the human resource requirements are as follows:
- Analysis of organizational objectives: The first stage in human resource planning process is analysis of the objectives of organization so that the human resource requirement can be ascertained in accordance with the gaols and objectives of the organization. The plan is integrated with the organization strategy and objectives. Thus analysis of the long term objectives of the organization is made so that an effective human resource plan can be made and implemented.
- Inventory of existing human resources: The next stage includes evaluation of existing human resources in the organization and taking an inventory count so that it can be ascertained that how many resources are currently working with the company at different positions and matching them with the requirements so as to identify the gaps.
- Forecasting demand and supply: After obtaining the inventory of existing human resources the next stage involves forecasting the demand and supply of resources at present as well as for future. This will help the organization in estimating the need of human resources and determination of availability of resources for the company in the market.
- Estimating manpower gaps: The next stage after forecasting the demand and supply of human resources in the context of organization is to make an estimation of the gaps in the availability and need of resources for various job positions in the organization. This is done in order to determine the requirement of human resources for specific job role so that the recruitment and selection of suitable and eligible candidates can be done by the company well in time in accordance with the human resource plan prepared by the company. This estimation is the basis of the action plan formulated for the human resource.
- Formulating human resource action plan: On the basis of estimation of gaps and requirements of human resources the human resource action plan is formulated by the human resource planning manager. The action plan included defining the processes and methods that will be used by the company for the recruitment and selection of current and future employees in accordance with the job specifications and vacancies with the company as estimated through forecasting. The procedures will also be determined as a part of the plan in accordance with the Human Resource Management Policy of the company.
- Monitoring, control and feedback: After the action plan is prepared by the company the same is evaluated and monitored so that the discrepancies and omissions in the plan can be identified and changes can be made to make the plan effective and efficient for human resource acquisition and maintenance. The feedback and suggestions are received for the human resource plan and the changes are incorporated into the plan in accordance with the requirements of the suggestions feedback and recommendation. This is the last stage of human resource planning process after which an effective human resource plan will be ready to be implemented within the organization. (Compton, 2014)
2.3 Compare the current recruitment and selection process in Prudential Plc. with Virgin Atlantic
The comparison between the current recruitment and selection processes at the two organizations is as follows:
The Finance manger handles the human resource matters that have little knowledge on these matters.
The human resource matters and activities are handled by Human Resource Manager who has the requisite knowledge and experience in human resource management.
There is no Human Resource planning Policy with the organization at present.
The company is having an effective Human Resource Planning Policy on the basis of which the recruitment and selection of employees is being done.
The recruitment and selection process involves telephonic interview followed by a face to face interview, after which psychometric and aptitude test is conducted.
The process of recruitment and selection at Virgin Atlantic includes interviews, assessment centres and testing. The processes differ in accordance with the job positions.
The questions asked from the employees at Prudential Plc. during face to face interviews are general in nature and are not sufficient enough to judge the eligibility of the candidate for the specific job role and it also could not be determined whether the candidate will be able and willing to be the part of organization for long term.
The interview questions asked from proposed candidates at Virgin Atlantic emphasize on the evaluation of candidate in terms of his potential and willingness to be a part of company for long term and achieve stability in his job role. The test performed by the candidates after the interview help in evaluating the technical knowledge and skills of the candidate to be eligible for the job role.
There is no policy or procedure of conducting pre-employment screening of proposed employees who are offered the job with the organization before their joining.
The company conducts the pre-employment screening of the proposed employees to whom the job is offered for a position with the company. This is conducted through an external agency so as to identify the potential of candidate with respect to compliance of standards and set procedures.
2.4 Evaluate effectiveness of recruitment and selection techniques of Prudential Plc. with Virgin Atlantic
The recruitment and selection techniques used at Prudential Plc. are less effective as compared to t6he techniques adopted by Virgin Atlantic for recruitment and selection of prospective employees. There is a high staff turnover at Prudential Plc. due to less efficient techniques adopted by the company for recruitment and selection of employees with relevant qualification, skills and experience that can be best suitable for the job. The company also does not have the Human Resource Manager for the purpose of conducting human resource management activities and recruitment and selection of employees, due to which these activities are handled by the Finance Manager who does not possess the required knowledge and skills to recruit eligible employees. Thus the process of recruitment fails to achieve its purpose since it is implemented by Financial Management . Due to lack of an appropriate and effective HR Planning policy with the company also the requirement and fulfilment of positions cannot be matched which results in high employee turnover with the company. Although telephonic interview, face to face interview and psychometric tests and aptitude tests are also done by the company for evaluation and judgement of the eligibility and skills of the employees but the interview questions asked from the candidates are not able to effectively evaluate the stability potential and capability of employee to survive with the company for long term. As a result of lack of effective techniques for recruitment and selection of employees, Prudential Plc. is unable to find good people for it in comparison with Virgin Atlantic. Also the pre=employment screening of candidates done by external agency for Virgin Atlantic help it overcome the deficiencies in its methods of recruitment and selection. (Abdul, 2016)
Task 3: Case Study of Virgin Media
3.1 Assess the link between motivational theory and rewards at Virgin Media. Your answer must show if you think there is a link, what connects the two.
- Motivational theories: Motivation refers to as the pro0cedures and processes which are adopted to affect the performance of an individual as an employee working for an organization in a manner that he willingly puts efforts for the improvement in his work methods. The motivation may be both positive and negative where positive motivation results in enhanced performance and vice versa. There are many motivational theories such as Maslow’s theory of five levels of human needs, Herzberg’s theory of hygiene factors and motivation factors in an enterprise, Mc Gregor’s Theory X and Theory Y where Theory X identifies the reasons of job dissatisfaction and Theory Y emphasize on factors leading to motivation.
- Rewards: Reward refers to as the achievement which is acquired due to good job performance. The reward is achieved by the employees during their work. The reward may be financial or non-financial where company pays cash rewards as well as kind rewards such as appraisals, praise and promotion.
Link between motivational theory and reward systems at Virgin Media:
There is a direct link between motivational theory and rewards. The motivational theory leads to the motivation of employees towards increasing their performance during the job. As a result of enhanced and improved performance the employees achieve good results which provide them with the rewards. On the other hand when rewards are given to the employees for their exemplary performance they are motivated to perform better so as to receive more rewards in future through achieving best results from their job performance. In this way motivational theory and rewards are directly linked to each other from both the sides. At Virgin Media the motivational theories adopted by the company focus on increasing the business performance by increasing the individual performance of employees. Consequently, the employees work hard to achieve the rewards as a part of motivation process. Thus the motivational theories of the company are directly linked with the rewards given to the employees. (Madan, 2013)
3.2 Evaluate the process of job evaluation and other factors determining pay at Virgin Media
- Process of job evaluation at Virgin Media: Job evaluation refers to as the process which is used to define and identify the worth of the job for the organization along with determining the activities and tasks required to be performed for the job so that the pay structure can be determined on this basis to be offered to the employee performing the job for the company. The job evaluation process at Virgin Media follows an orderly approach. At the first instance the need for job evaluation is identified after which a team of HR specialists is used to conduct the job evaluation which select all the positions within different departments at the company and evaluate them one by one in terms of pay structure for the job. The methods used for job evaluation are factor comparison, job classification, job ranking etc.
- Other factors determining pay at Virgin Media: The factors other than job evaluation which are used to determine pay at Virgin Media include size and reputation of organization, level of position in the organizational hierarchy, skills, experience and qualification, industry and sector of business, profit potential of the business, employee performance, payment policies of the company etc. These factors contribute to the determination of payment to be made to the employees at Virgin Media.
3.3 Assess in different contexts how effective is the reward systems at virgin Media
Effectiveness of reward systems at Virgin Media:
Reward systems refers to as the framework which includes all the policies and procedures which determine the identification of achievement to be rewarded and method which is used to reward the employees. At Virgin Media the reward systems include both tangible and intangible rewards where tangible rewards include bonus, gifts cash incentives, compensations, commissions etc. and intangible rewards include promotion, appraisal, praise etc. The reward system focus more on attracting talented employees, retention of talented and good employees and motivating them to work hard through job satisfaction. The reward systems are inclined towards bonus, salary increase and promotion which attract more and more talented personnel towards the company and motivate the existing employees for lo9ng term retention with the company. This results in decrease in employee turnover of the company. Thus the reward system at Virgin Media is effective in terms of attracting talent and retention and motivation of them. (Ven, 2014)
3.4 Examine methods Virgin media use to monitor employee performance.
The methods used by Virgin Media to monitor the employee performance include at the foremost feedback received by other employees which is obtained in confidential manner. The other methods include observation of performance of employees for different periods and comparing them, ranking given to projects handled or assignments completed, and evaluation done on the basis of performance standards. Through these methods Virgin Media conducts the monitoring of job performance of employees regularly on different assessment criteria so that the overall evaluation and monitoring of individual performance of each employee can be made. The unbiased approach is used for the evaluation so that the genuine performance results can be used for the basis of evaluation without any discrimination among the employees and each employee may get equal rights and opportunities for growth and success.(Garaus, 2016)
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.
The reasons for termination of Faisal’s employment contract with The Chicken Master are as follows:
- The major reason for termination of Faisal by Bob was his poor performance and violation of company policy in relation to employees.
- Faisal was the manager of The Chicken Master and under his management it was found by Bob that employees were not being supervised by him as the actions were not taken for maintain cleanliness at the store and the kitchen. Neither the front of the store nor the kitchen was properly cleaned regularly. The store was not stocked. The food was also not found prepped.
- Faisal involved himself into personal business during working hours at the company. He frequently took time off from work without giving any information to anyone which is extreme carelessness and lack of responsibility 0on his part.
- Even after coaching given by Bob to him, he did not put any efforts by himself to improve his performance.
- Faisal was found looking at pornography on his computer at the office. Faisal was caught red handed by Bob and on further investigation into the matter it was found that he regularly looked at pornography during work hours.
- It was also found that a major part of his work hours was spent by him in emailing his wife, helping his daughter in her homework and designing his own restaurant and not doing the work he is supposed to do for The Chicken Master. The employee handbook of the company clearly stated that the employees shall not use the company equipment for personal use. Since even after receiving and acknowledging receipt of employee handbook, Faisal used the computer for personal use, therefore he is guilty of violation of company policies. (Waterfill, 2015)
The other general reasons for cessation of employment are as follows:
- Unfavourable business decisions – The unfavourable conditions of business such as huge losses or other situations may result in the termination of employment so as to reduce the cost for the business. The termination may be either temporary or permanent depending on the impact of the unfavourable events of factors.
- Unacceptable behaviour of employees– The behaviour of employees sometimes spoil the culture of the organization or violates the code of conduct prevailing within the organization which results in the termination of such employee. The behaviour which is not professional and accountable may be against the policies of the busi8nerss and its working environment leading to cessation of person responsible for the same.
- Absenteeism – Another reason which generally results in the termination of employees of a company is the absenteeism from work without prior information or proper permission from the concerned authority or excessive absenteeism for unnecessary reasons. Since the work is affected due to this therefore it results in the termination of employee. (Employee termination, 2016)
4.2 Describe the employment exit procedures used by The Chicken Master and another organisation of your choice.
The employment exit procedures used by The Chicken Master and Prudential Plc. are as follows:
- Resignation or dismissal – In case of resignation the letter or notice defining the intention to resign and last date of employment is sent by the employee to the Human resource department whereas in case of termination the Line manger informs the Human Resource department about the reason and date of termination and termination letter or notice is sent to the employee. The notice is provided in accordance with the contract of employment and Human Resource Management Policy of company. At Chicken Master such notice will be given by Bob directly to Faisal.
- Exit Interview – The interview is conducted of the proposed ceased employee with the supervisor or CEO/ Manager as the case may be. This interview is conducted with the view to obtain information from the employee and make improvements for future employees. The interview is conducted confidentially so that the private information of employee is protected. Such information and knowledge is used by the organization for reference.
- Written Reference – On the request of employees a written reference may be provided by the employer containing details about the performance and service of employee during employment. It can be used by the employee as experience certificate for applying another job. This is not provided when employee is terminated due to poor performance or unacceptable behaviour as in case of termination of Faisal from The Chicken Master
- Return of property – Before the last date of employment of the ceased employee with the company the employee has to return all the property of the company possessed by him such as documents, keys, laptop and other equipment. The reimbursement or return of petty cash as the case4 may be is also done. The electronic records with passwords are also handed over to the supervisor by the employee.
- Administration– The calculation of leave entitlements and other settlement is also made the details related to the forward contracts, superannuation funds etc. are also discussed for administrative purposes.
- Record Keeping – The resignation letter or termination letter is held by the company in the personal file of the employee as a record for future reference. After this the staff exit checklist is tallied so as to confirm that all the requirements related to exit procedures have been complied with. (Duncan, 2014
4.3 Consider the impact of legal and regulatory framework on employment cessation arrangements with The Chicken Master if Faisal’s claim was proven to be true.
After firing of Faisal by Bob he immediately filed the case in Employment Tribunal against Bob.Faisal claimed that he was replaced by a female who was under the age of 40 and this case of race and gender discrimination against him. In case if Faisal’s claim was proven to be true against The Chicken Master, the impact on legal and regulatory framework shall render The Chicken Master guilty of charge of race and gender discrimination among employees. The dismissal of Faisal will be unfair and the claim of Faisal will be accepted under Section 94 of Employment Rights Act 1996. Also the contract of employment entered into by The Chicken Master will be unlawful and not legally enforceable. Thus the impact on employee cessation arrangements of the claim will be that the cessation of Faisal will be unlawful against the company and The Chicken Master will have to reverse the cessation arrangements made by the company against Faisal. (Blacker, 2016)
From the above mentioned case studies which relate to the human resource management process at various organizations and comparisons between them it can be concluded that the organization must have an effective human resource management policy for its human resource management activities so that it will be able to recruit and select good people for its organization and retain them for future. The human resource management includes many activities which include personnel management, recruitment and selection, human resource planning, termination and cessation motivation and retention etc. This assignment will be able to assist the human resource managers in developing policies and procedures for management of its human resources.
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