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Diploma in Business
Unit Number and Title
Unit 18 Human Resource Management for Service Industry
It is important to know the concepts and different practices of human resource management that can focus on managing recruitment, selection, and retention and employment cessation.It is necessary to get knowledge about various theoretical aspects of human resource management for knowing the differences between several approaches. This unit 18 human resource management assignment for service industry plays a very important role in any industry as it deals with the management of human resource, which is the most fundamental resource of the company. This helps in understanding the differences between human resource management and personnel management. Human resource management explains the methodologies for recruiting the employees of right skills and retaining them for a long time period that can contribute in achieving organizational goal. There are some motivational theories that define the needs of an individual. It is important to provide motivation to employees on a regular basis by giving appreciation, rewards etc. to retain them in the organization for long duration. It is necessary to hire skilled employees as they are responsible for contributing efforts in an effective way that leads to the success of the organisation.
Personnel management refers to the mediators who are responsible to act between the employees and the management of an organisation. They have the responsibilities like payroll management, laws maintenance etc. They have an administrative nature. Main objective of personnel management is to maintain a healthy relationship between the employees and the employer belongs to an organization.(Armstrong and Armstrong, 2009). Human Resource Management is responsible to manage the workforce within the organization by providing trainings, guidance, and support at the time of requirement. They have the responsibility of recruiting and selecting the employees. They have to ensure that they hire human resource according to the required skills and qualifications because employees contribute efforts in achieving organizational goals and objectives. There are many differences between personnel management and human resource management that can describe them in a more proper way.
Human Resource Management
It is the basis for the relationship between an employer and an employee. It is concerned with the activities that can help in management of relationships within the organization.(Noe, 2006)
It is related to the effective and efficient use of human resource in an organization. It focuses on the attainment of goals and objectives by the efforts of manpower.
In personnel management, employees are treated as tools.
In human resource management, employees are considered as an asset.
It uses traditional approach.(Edenborough, 2005)
It uses modern approach.
It includes an indirect communication.
It includes direct communication.
There are daily routine functions that are done by personnel management.
There are strategic functions that are done by human resource management.
A slow decision making process exists there.
A fast decision making process exists there.
Basis of pay
It depends upon job evaluation.(Rudolph, 2016)
It depends upon performance evaluation.
Performance evaluation is a method to evaluate performance of employees and assess the need of improvement. HSBC bank uses this method to determine the basis of pay of employees. Job evaluation has been done for this. There are two measures that are used for job evaluation-
In Tesco, there are different trainings that are provided to the employees that help them in stress management whenever there are not any predefined training procedures available by personnel management.(Lussier and Hendon, 2013)
There are many departments in an organization that are responsible to perform various functions. These departments have some roles and responsibilities in consideration to their field of work. One of them is human resource department that is responsible to manage the human resources in the organization.(Schermerhorn, 2005). Jaguar is a British organization that involved in manufacturing of cars. In this organization, functions are divided into two parts i.e. managerial and operational. Managerial functions are-
Operational functions are-
The method that is used in Jaguar for measuring efficiency of employees is performance evaluation. They measure the quality and effectiveness of the tasks done by the employees to ensure that they are able to meet the set standards or not. They prefer to provide best trainings so that the skills of the employees can be improved. Training plays an important role in the welfare of the organization as it helps the employees in converting their theoretical knowledge into practical job work. Audi focuses on the satisfaction of employees by providing them proper and safe work environment. It provides timely rewards and remunerations to the employees. Rewards are the motivating force for an employee that is given in addition to the salary to motivate them. It includes incentives, gift cards etc.(Schermerhorn, 2005)
Line managers are responsible to directly contact with the employees for defining their roles, responsibility, trainings etc.(Grensing-Pophal, 2010) Employees have to report their line managers on a daily basis. Line managers are answerable to higher authorities and they act as a mediator between the employees and top level management. They have several roles –
Their responsibilities are-
In Jaguar, line managers have the authority for strategy formulation and designing performance management system. They focus on the changing business situations and high level business practices. They are the one who are responsible for the development of human resource policies and procedures. They give importance on maintaining a good relationship between managers and the employees in order to increase the performance and motivation of the employees. Due to this, managers have a control on employee’s attitude. Front line managers provide guidance and suggestions to the employees at the time of difficulties that can control the flow of work.(Armstrong and Armstrong, 2009)
There are many laws that act as a regulatory body for the maintenance of employer- employee relationship in the organization and in order to safeguard their interest at workplace. This framework creates an impact on human resource management because they have the responsibility for the application of the laws in the organization. Law includes various rules and regulations that need to be followed by every organization. There is an applicability of these Acts on Jaguar-(Mcreynolds, 2012)
Planning is a very important aspect before organising any task. Planning creates everything in a very systematic manner. Human resource planning is also an important activity before the implementation of any action. For every organization, it is very important to achieve its goals and objectives and planning is necessary to do the same. Human resource planning helps an organization to assess the present human resources and then estimate the future needs. It acts as a link between strategic plans and human resource management. It assists an organization to acquire suitable candidates with high skills to get the tasks done in an effective manner.(Sekhri, 2010). In this process, firstly human resource department calculates the present human resource availability in the organization and then calculates the future need so as to create a program to fulfil the requirements of the organization. The main reasons behind human resource planning are-
Human resource planning process consists of different steps-
There are many stages involved in planning human resource requirements. It needs to be followed in order to design a proper plan.
Recruitment of human resources has been done in an organization according to the planning policies and procedures as it is important for human resource department to fill the vacancies with the human resources that possess skills and knowledge. There is a proper procedure for the recruitment and selection of the people. Candidates needto appear in a telephonic interview first then it is decided that they are qualified for the next round or not. The following rounds will test the skills, knowledge and education of the candidate.(Edenborough, 2005). The process is as follows-
1. Screening interview- It is a common interview that consists in most of the interview process. Most of the time, it is a telephonic round in which direct questions are asked to the candidates. Interviewer asks questions about family background and basic information of the candidate. Under this round, there is an elimination of unqualified candidates.
2. Selection tests- This is to know the basic knowledge and intelligence of the candidate. This test ensures the employee’s capability to perform a specific task. Selection tests are of different type-
3. Interview- Interview is the main round in that interviewer asks many direct questions to the candidate. In an interview, a candidate is evaluated from each dimension as per his educational qualifications, projects, experiences etc.(Noe, 2006)
4. Background verification- It is related to the authentication of the given information by the candidate including the checking of education, trainings, projects etc. It is an important step to ensure safety as usually candidates lie about their education and trainings.
Recruitment and selection techniques are different in every organization as there requirement varies from each other. This process reflects the main skills and criteria for judging a candidate for a particular profile. Organizations have their own recruitment and selection procedure as per the job specifications. It is easy for an organization to acquire latest technology and best quality physical resources, but if it does not have the right human resources then it becomes difficult to achieve the desired outcomes. There should be a simple and flexible recruitment policy so that it does not become difficult for an organization to hire desired candidates. Tesco uses two methods for recruitment-
Its selection process is as follows-
There is an effective recruitment and selection technique in Cadbury. It also considers both internal and external methods of recruitment. Selection technique consists of many tests and interviews. Cadbury believes that it is essential to test different skills of the candidate by conducting different tests. It assists in finding out the perfect candidates for the organization.(Grensing-Pophal, 2010)
The formation of Virgin Media has been done by the merger of NTL. It is one of the largest international cable companies. Virgin media treats their employee like assets and it believes in motivation of employees. Motivation is an important part of an organization that focuses on providing motivational techniques to the employees. It is responsible for increasing performance level of employees. It can increase comfort level of the employees and create a sense of responsibility within them. With the adoption of motivational practices, an organization can ensure the dedication of employees to achieve goals and objectives of the organization. Motivated employees can easily accept difficult challenges and always get ready to take responsibilities. They always remain energetic and never get bored of doing work. They help their colleagues by providing guidance to them. Employees that are negatively motivated always show dullness in work and are unable to provide an effective output.(Lussier and Hendon, 2013). Virgin media always focuses on providing several rewards to employees in order to motivate them. It uses an ASPIRE field pay and reward system to provide rewards and benefits to employees like pensions, health benefits etc. There is a research conducted by Fredrick Herzberg in 1950 that defines motivational theories and measures for job satisfaction at workplace. According to him, there are two important factors that influence employees at workplace. They are hygiene factors and motivational factors. Hygiene factors include working conditions and salaries of the employees and Motivator refers to the achievements, promotions etc. (Sparrow, 2006). There is one more theory of motivation i.e. Maslow’s Hierarchy of needs theory. It is based on five needs of an individual-
There is a proper procedure for job evaluation. It includes periodic meetings in which the employee’s performance has been discussed in reference to the company’s objectives. Plans have been made in order to determine the performance of the employees and the progress of organizational goals. It offers opportunities for the employees by increasing their salaries and promotes more fairness and consistency. Virgin media group believes in a method related to ‘doing right things’. It helps in making the employees happier and increases their working efficiency. Initiatives related to corporate social responsibility are used to ensure that the employees have an access to many opportunities which results in the fulfilment of self- motivation needs. It has a procedure-(Sekhri, 2010)
The best way to motivate an employee is to give him rewards for his achievements. Virgin media also believes in providing rewards to the employees for their effective outcome. It has started using a scheme that is known as ASPIRE field pay reward system. The scheme rewards each Net Promoter® score (NPS) of 9 or 10 with £10. Virgin media thinks in a forward direction, it knows the value of motivational factors at workplace. There are many facilities provided by it to the employees like pensions, gratuity etc. It uses promotions, appreciations and certification to motivate employees. There are some strategies that are used by virgin media for highlighting the performance of the employees. They are-(Bhattacharyya, 2009)
It is necessary to control the work and performance of the workers as it helps in performance appraisal of the same and leads to achieve the goal of the employees as well as the organisation. There are different type of methods to control and monitor the performance and working of the employees. They are as follows-
Bob owns chicken master and he terminated Faisal from the job because Faisal was not doing his job properly and according to Bob, he had hit a homerun. He was also found violating company’s policies. He was not doing his work in a proper way as food was not prepared and kitchen was not cleaned. He was spending time for his own business activities without informing others. He did not able to understand that he was doing the wrong things. He was using company’s equipment’s for his personal tasks. Once he was caught by Bob while watching pornography and after the investigation Bob found that he do this regularly. He was spending his work time by sending mails to his wife and helping his daughter in her homework. It was mentioned in the employment terms and conditions that official equipment’s are not meant for personal use. These are the reasons for Faisal’s termination.
Other reasons for cessation of employment are-
Employment exit procedures are the ways by which an employer terminates an employee from the job in a professional way. It includes different reasons or ways by that an employee can exit from an organization. The exit procedures of Chicken master are-(Schermerhorn, 2005)
1. Dismissal- It is a situation when an employer dismisses an employee from the organization due to any particular reason. Dismissal are of four types-
2. Own will resignation- It refers to a situation when an employee wants to discontinue his job in an organization due to any particular reason. In this situation, it is the responsibility of an employee to serve a notice and fulfil the necessary requirements before leaving the organization.
Exit procedures used by Tesco are-
It is important for every organization to apply lawful implications in the organization in order to maintain everything in a proper way. Every organization must ensure a fair dismissal that is due to a fair reason. It is the duty of employer to behave with the employee in a nice and proper way. It has a proper procedure that includes a 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. There are many regulations under Employment Rights Act 1996 that are meant for protecting the rights of both the employer as well as employees.(Lussier and Hendon, 2013)
1. The regulations for dismissal and redundancy-
2. Resolution of disputes-
ACAS code of practice- It reflects the fairness and genuineness of the dismissal process. It is important for employees to know about ACAS guidelines. There is not any particular law for Disciplinary and Grievance procedures. If an organization fails to do so then it is known as an unfair dismissal.(Bhattacharyya, 2009)
It is very important to manage human resources in an organization. There is a human resource department in every organization that possess different roles and responsibilities. It includes stress management grievance handling, recruitment etc. It is necessary for an organization to use their resources in an efficient and effective way. Human resources are responsible in contributing their efforts for the attainment of the organizational goals. They should be motivated so that their efficiency can be maintained. Rewards should be provided to employees in order to motivate them. There should be a healthy and safe environment for employee to work in. Monetary as well as non-monetary benefits should be provided to employees for motivation.
Armstrong, M. and Armstrong, M. (2009). Armstrong’s handbook of human resource management practice. London: Kogan Page.
Bhattacharyya, D. (2009). Human resource development. Mumbai: Himalaya Pub. House.
Browne, F. and Brody, L. (2009). Hiring and firing. New York: Law Journal Press.
Edenborough, R. (2005). Assessment methods in recruitment, selection, and performance. London: Kogan Page.
Grensing-Pophal, L. (2010). Human resource essentials. Alexandria, Va.: Society for Human Resource Management.
Lussier, R. and Hendon, J. (2013). Human resource management. Thousand Oaks: SAGE Publications
Mcreynolds, J. (2012). Motivational theories & psychology. Delhi: English Press.
Noe, R. (2006). Human resource management. Boston, Mass.: McGraw-Hill.
Schermerhorn, J. (2005). Management. New York: J. Wiley.
Sekhri, A. (2010). Human resource planning and audit. Mumbai [India]: Himalaya Pub. House
Sparrow, P. (2006). International recruitment, selection, and assessment. London: Chartered Institute of Personnel and Development.