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Unit 18 Human Resource Management Assignment for Service Industry
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.
1.1 Differentiate between personnel management and human resource managementgiving examples in two suitable organisations.
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-
- Quantitative measures
- Qualitative measures
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)
1.2 Assess how human resource management functions help your chosen organisation in achieving its purpose.
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-
- Recruitment and selection of manpower.
- To develop skills of human resource.
- To manage compensation of workforce.
- To maintain proper and timely records.
- To create a strong relationship with the organization.
- Planning and evaluation of human resource.(Hancock, 2002)
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)
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 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 –
- They need to provide trainings to the employees.
- They need to undertake performance appraisal process.
- They need to maintain employee’s work- life balance.
- They need to handle employee’s grievances.
- They are responsible for recruitment and selection activities.
- They have to maintain disciplinary activities in the organization.
Their responsibilities are-
- Management of operational cost
- Management of people(Noe, 2006)
- Allocation of work(Browne and Brody, 2009)
- Provide technical help
- To check the quality
- To monitor the work process
- To deal with customers.
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)
1.4. Analyse the impact of the legal and regulatory framework on human resource management.
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)
- The Sex Discrimination Act, 1975- It is related to the discrimination practices that are prevailing in the organization. There can be discrimination according to the gender, race, colour, religion, caste of an individual. The discrimination practices that are used in organizations are different pay for similar jobs, promotions, appraisals etc. Some employees discriminate their employees in providing training and guidance.
- The Employees Rights Act- There is different rights of employees and employer in every organization. It is important for both of them to be aware about the rights like entitlement for remuneration. Employer has the responsibility to make his employees aware about the rights and duties. It helps in safeguard the interest of both the employer and employee against unfair practices.
- The Equal Pay Act, 1970- There should be an equal remuneration for the same job that involves the same efforts. Employer cannot discriminate employees by paying them different pays for similar job.(Noe, 2006)
- The Disability Discrimination Act, 1995- According to this Act, there should not be any discrimination between the abled and disabled employees related to pay scale, facilities, rewards etc. at the work location. Applicability of this Act is for the organizations, where there are more than 20 employees.
- The Race Relations Act, 1976- There should not be any discrimination practices according to the race of the employees. In some organizations, employees are treated unequally due to their race.(Hancock, 2002)
2.1 Analyse the reasons for human resource planning in organisations.
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-
- It helps in reducing the problem of employee turnover.
- Human resource planning assists an organization to increase volume of business.
- It helps in facing challenges due to change in required qualifications and skill sets.(Bhattacharyya, 2009)
- It helps in controlling cost of labour.
- It supports manpower supply whenever it is required.
- It helps in efficient manpower utilisation.
- It helps to know the future requirements by forecasting.
- It helps in better implementation of plans.
Human resource planning process consists of different steps-
- To find out the main objectives behind human resource planning.
- Calculation of available manpower in the organization.
- Forecasting demand and supply
- To determine manpower gaps.
- Preparation of an employee plan.
- To provide trainings to the employees.
- To conduct appraisal of manpower planning(Schermerhorn, 2005)
2.2 Outline the stages involved in planning human resource requirements.
There are many stages involved in planning human resource requirements. It needs to be followed in order to design a proper plan.
- To know the organizational objectives- Before doing any task, it is important to find out the reason or the objectives behind this. Every organization should know the purpose behind its all activities and deeds. As there are different teams exists in an organization, they all work for the fulfilment of the team goal.
- To assess present requirement of workforce- It is important for every organization to know the present human resource requirement in order to determine the future needs. It is necessary to calculate the efforts and capacity of the present workforce so as to find out the requirements of more efforts to reach the objectives.(Grensing-Pophal, 2010)
- Preparation of an estimation of human resource requirements- It is important to calculate the surplus and deficit by the assessment of supply and demand. Deficit defines the requirement of more employees by the organization and surplus defines the termination of the same from the organization. Time to time training programs should be conducted for the employees in order to enhance their knowledge and skills.
- Designing of final plan- After the preparation of estimation, the final plan has been created according to the surplus and deficit. It can be in accordance to new hiring or existing terminations.(Lussier and Hendon, 2013)
- Controlling and feedback- It refers to a situation when final plan has been implemented and proper allocation of human resource has been done as per the requirements of the plan. Controlling has been done in order to find out the errors in the plan. At last, a comparison has been done between the plan and its implementation so as to take relevant actions.
2.3 Compare the recruitment and selection process in in the organisation with another organisation you recommending.
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-
- Job knowledge test- It identifies the required knowledge of an individual for the job he has applied.
- Personality test- This test is for knowing the personal traits of an individual that can show his personality.
- Work sample test- It is related to the qualities of an employee at workplace.
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.
2.4 Evaluate the effectiveness of the organisation recruitment and selection techniques with another organisation you recommending.
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-
- Internal recruitment- There is an internal talent plan that is used by Tescoto fill the vacancies. This is a method of listing down the present employees looking for a move, into the same level or on promotion and then recruit the same for the vacancy.(Browne and Brody, 2009)
- External recruitment- Tesco advertises on its website for external recruitment. A candidate can apply online for the desired profile. Then the candidates have been called for the assessment or interview process.
Its selection process is as follows-
- Screening- Firstly, selectors of Tesco services selects the best CV according to the candidate’s education, job experiences and afterwards they ensures that whether the applications are matching with the job specifications for the job.
- Assessment centres- It is for the candidates who have passed the screening test. This test consists of various problem solving exercises, activities related to team work. After the approval of assessment centres, the candidates requires to appear for an interview. Interviews are conduct by line manager and they have to ensure that the candidate is suitable for the job or not.(Mcreynolds, 2012)
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)
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.
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-
- Biological and physiological needs- These are the basic needs of an individual that are essentially required to survive like food, shelter, water etc.
- Safety needs- They are the needs related to employee’s safety at workplace. There should be a proper healthy working environment for the employees.
- Belongingness and the need of love- It means the love and affection of friends and family members.
- Esteem needs- It means the status of an employee that can result in a proud feeling.(Rudolph, 2016)
- Self- actualization needs- Self- actualization needs are related personal growth of an individual.
3.2 Evaluate the process of job evaluation and other factors determining pay at Virgin Media or your chosen organisation.
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)
- Job analysis- It is related with the analysis of different factors of a job. It includes the basic information related to a job that describes the different roles and responsibilities to be done by an employee. It defines necessary skills and qualification that are necessary for an employee to perform the job in the best way.(Browne and Brody, 2009)
- Allocation of money- It refers to the allocation of money into different tasks that can identify the pay structure for each job.
- Job rating- It possess the same characteristics of job analysis.
- Job classification. - It means to categorise job as per the pay structure.
3.3 Assess in different contexts (for e.g. attracting talent, retention, and motivation) how effective is the reward systems at Virgin Media or your chosen organisation.
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)
- Virginmedia gives appreciation letters to its employees, when they achieve a score of 10 under NPS Hero championship scheme.
- It provides appreciation to its employees for the maintenance of organizational culture and values under SHOUT strategy.(Korzynski, 2013)
3.4 Examine the methods Virgin Media or your chosen organisation use to monitor employee performance.
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-
- Performance appraisal- Performance appraisal helps the managers to take reviews of the employee’s work and performance. The review sheet contains various types of categories that include complaints of the customers, the skills and knowledge of the employees, etc. It is one of the subjective way of calculating the performance of the employees. (Schermerhorn, 2005)
- Peer appraisal- it is related to the suggestions and the opinions of the employees, managers, colleagues, etc. a feedback has been provided by managers and colleagues that has been recorded in a database. It needs to be tracked for different durations so that an employer can know about the unfavourable and favourable structure.
- Dashboards- It has been used as a source to analyse and examine performance of the employees. It involves different type of matrices based on critical success factors. Dashboard is important for managers and employees to examine the work in a direct way. (Sparrow, 2006)
- Voice of the customer- it is the policy of many companies to track and record the voice of the customers to take actions and to improve the quality of the employees. These can be calculated through excel sheets to get the knowledge about the failure of the service and products. One of the major advantages of tracking the customers is to improve and also to fulfil the need and wants of the same. (Armstrong and Armstrong, 2009)
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.
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-
- Retirement- Retirement refers to a situation when a person attains a specific age or he has completed the tenure of providing services. After the retirement, an employee is entitled for pension if it is mentioned in the employment contract.
- Resignation- It is a situation when an employee voluntarily leaves an organization or discontinues providing services to the same.
- Redundancy- It means a situation when there is no longer necessity of a job for a person.(Edenborough, 2005)
- Death- It refers to a situation, when a person dies and stops providing services to an organization.
- Dismissal- It means when an employer terminates an employee from the job due to a genuine reason.
4.2 Describe the employment exit procedures used by The Chicken Master and another organisation of your choice.
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-
- Fair dismissal- It refers to a situation when an employer terminates an employee because of a fair reason.
- Reasons related to law
- Unfair dismissal- It refers to the termination of employee by an employer due to an unfair or wrong reason. It can be related to discrimination as per race, caste, colour etc. Employers who terminate their employee by unfair dismissal are penalised as per the complaint of the employee.
- Constructive dismissal- It is a situation when an employee resigns from the job because of the breach of employment contract by the employer. In such situation, employee has a right to claim dismissal.
- Wrongful dismissal- This is a situation, when an employer takes any action against the employment contract.(Mcreynolds, 2012)
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-
- Retaining methods- It refers to the practices that havebeen done in order to retain an employee in the organization by providing him a higher compensation or any other benefits.
- Exit interview- If retaining methods did not work then organization needs to conduct an exit interview in that manager asks some relevant questions to the employee.(Sekhri, 2010)
- Referencing- It includes providing necessary documents to the employee for future purpose.
- Return of property- An employee needs to return the property belongs to the organization before leaving the organization.
- Pensions- It is the responsibility of an employer to pay pension to the employee, if he is entitled for the same.
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.
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-
- It is important for every organization to lay down its procedures related to dismissal.
- It is the rights of the employees to receive an equal and fair remuneration.
2. Resolution of disputes-
- It is necessary to lay down the requirements of an organization in order to adopt a procedure related to discipline and grievances.
- Employee’s rights should be provided to minimize disputes between employer and employees
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.
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