Unit 18 Human Resource Management Assignment Tesco and VK
Diploma in Business
Unit Number and Title
Unit 18 Human Resource Management Tesco and VK
In human resource management Tesco and VK report the aspects of the Human Resource Management will be focused. At very first section the disguisable features with the Personnel management and Human Resource management, responsibilities of the line manager, impact of the regulatory framework will be discussed by assuming the organisations like Tesco and VK Associates. In the second part of the report, the analysis of the Human Resource Planning as well as recruitment and selection process will be briefed. At the third part, the discussions will be done based on the organisation Virgin Media regarding the motivational theory and reward system in the organisation. At last the report will consider a case study where the employment cessation, exit procedure will be highlighted.
1.1.Differentiate between personnel management and human resource management giving examples in two suitable organisations.
Personnel management is concerned with the utilisation and controlling of the manpower of an organisation in order to maximise the efficiency level. The prime objective of Personnel management is to establish cooperation and coordination among the workforce. Apart from that focus is also given to the monetary and non monetary benefits to the employees for maximising their level of commitment and satisfaction in the organisation (Harzing and Pinnington, 2014). For example, V K associate is a small medium enterprise engages Personnel management in their management functions for optimum utilisation of the human resources and to establish a positive working environment in the organisation. Under the Personnel management approaches the management of VK associates design the salary structure, incentives and other non financial benefits for utilising the human capital effectively in the organisation.
On the other hand, Human resource management is an advanced approach which integrates the employee’s welfare and business objective in to a straight line (Harzing and Pinnington, 2014). The approach of the human resource management is scientific and practical due to the involvement of the business objectives. For example in Tesco, Human resource management is mainly focus where the business objective that is to serve the customers effectively by the quality products of Tesco and the need of the human resource is done equally. Under the Human resource management, Tesco identifies the need of the human resource in order to achieve the target. Thus selection procedures and retention is done based on the business targets (DeCenzo et al, 2015). Apart from that employees benefits like discount cards, medical insurance, flexible working times are also provided to motivate the employees.
Thus it can be observed in both the techniques productivity is given focus but human resource management is much more effective due to the integration of the business objectives in to the process.
1.2. Assess how human resource management functions help your chosen organisation in achieving its purpose
Human resource management is to design the plan, allocate the activities and manage the actions in order to motivate the employees as well as to achieve the desired objective of the organisation. Based on the supermarket chain Tesco, the functions associated with the Human resource management are as follows:
- Planning: It is the important function of the HRM which determine the demand and supply of the employees in relation with the business objective. Currently the market share of Tesco is nearly 28% and it is dominating the supermarket chains in UK by its top position. The objective of Tesco is to increase the market share by providing quality products to support the daily lives of the people. Based on the objective, job analysis is conducted by considering the skill gaps and requirement of the employees for achieving the target. It will help Tesco to address the demand and supply of the workforce along with the target achievement (Huselid and Becker, 2010).
- Staffing: The second function is to give priority to the recruitment and selection procedures for extracting the best talent from the market and to retain them successfully for achieving the competitive advantage (Chuang and Liao, 2010). The benchmark is being set up at Tesco where the recruitment board examine the candidates based on that. Internal and external sources are the ways which help the management to conduct the staffing function. It will help Tesco to allocate right people to the vacant place.
- Employee development: It is the competency level of the employee which determines the quality service to the customers or the clients. For increasing the competency, adequate training and development can be applied. It was effective when the sales turnover of Tesco was going down and at that time adequate training was given to the employees at all the levels in order to boost their productivity.
- Employee Maintenance: Apart from the training and development, the management should also measure the performances of the employees in order to detect the progress report. As per the HRM functions, employee maintenance is the only way to check the actual level of productivity with the desired level. 360 degree feedbacks are taken to measure the performances of the employees.
Thus the functions of the HRM are interrelated with each other which are needed to be implemented in the organisation for achieving the desired profitability and productivity as per the business strategy.
1.3. Evaluate the role and responsibilities of line managers in your organisation or familiar organisation and how it supports human resource management function
The line manager of Tesco is responsible to allocate the duties to its subordinates or the employees in the shopper’s level. The top management communicate the plans and the strategies of the organisation and based on that line manager divides the responsibilities of the team under his supervision. It is the line manager who observes the progress of the teams of the shopper’s level at Tesco and based on his observation certain feedbacks are given to all the members of the team at the time of training period (Snell and Bohlander, 2010). The new employees are oriented and briefed about the work process of Tesco by the line manager. All the issues and problems faced by the teams are being communicated to the line manager for solution. It is the line manager who coordinates with all the team leaders for tracking the progress of the work and assessing the productivity level. The requirements of the candidates are also examined by the line manager and share the details to the top management for notifying the vacancies.
Evaluation of the responsibilities in respect with the line manger at Tesco can be done by drawing the positive and negative sides that are as follows:
Misunderstanding, doubts will be cleared due to the orientation session conducted by the line manager at Tesco
During the feedback, sometimes the negative relation of the line manager and employees does not reflect the true picture
Assumptions towards the requirements of the workforce can be get from the line manager (Bratton and Gold, 2012)
Sometime the target allocation is not done perfectly which creates excessive pressure for the team (Guest, 2011)
All the communication process to the management or to the employees are connected and coordinated by line manger that establish a positive working environment
Entertaining all the issues of the employees are done properly that creates conflict
Skill gaps can be identified by the line manger by observing the team performance which help the top management to get the idea about the work process
Workings with team members are not possible for the line manager always which establishes a lack in proper guidance.
1.4. Analyse how legal and regulatory framework impact on human resource management
Legal and regulatory framework influences the human resource management of any organisation. The Government establishes the rules and laws which are mandatory to be followed in order to manage their operation in the concerned country. All the organisation irrespective of the origin need to follow the guidelines or the framework for managing the workforce or human resource in the organisation otherwise penalties are there in the provision. In case of Tesco,
the Government of UK has set certain legal and regulatory frameworks which are as follows:
- During the selection and recruitment process, the management of the organisation need to follow the Equality Act 2010 where the discrimination based on the recruitment, selection, gender, culture, religion and race are neglected and restricted. Any employee feels that they are discriminated; they can opt for the help from the management, employment tribunal and trade unions (Gov. UK, 2016).
- Flexibility in the working environment should be there in the organisation. As per the Government of UK, any employees working more than 26 weeks can appeal the concerned management of the organisation for approving their flexible working time.
- As per the legislation passed by the UK Government regarding the minimum wage is needed to be followed. For example in case of the apprentices the rate will be minimum 3.30 pound and the age group above 25 years is minimum 7.20 pound (Gov. UK, 2016). Thus the management need to follow the compensation structure while designing.
The positive implication is the safeguard from the exploitation of the management towards the employees. The motivation of the employees will be high due to the support provided by the Government. On the other hand the negative side will be on the side of the organisation where the productivity can be affected due to the flexible hours (Daley, 2016). Approving the flexible working time brings conflicts among the employees that can influence the negative working conditions. Sometimes the organisation is not in a position to follow all the rules and laws due to the inadequate fund and human resources which are the negative implication.
2.1 Analyzing the reasons for human resource planning
Human resource planning is the process that addresses the present and future need of the workforce in the organisation for achieving the business targets. The strategic plan designed by the top management is considered while designing the HRP. Several benefits are associated with the HRP which support the organisation like Tesco to achieve the target (Ferguson and Reio Jr, 2013).
- From the HRP, the requirements of the workforce can be identified by measuring current the performance level with the desired performance.
- It is the HRP that consider the micro and macro factors which influence the decision making process of the organisation. Thus the transition that is required in the organisation can be traced and applied with the help of HRP.
- Recruiting the exact workforce for the concerned place can only be possible with the HRP. It identifies the position that is vacant and conducts the recruitment and selection process based on the concerned vacant place.
- After the recruitment and selection process with the help of HRP, training and development session is organised based on the concerned department nature. The exact information is identified that are shared among the new staffs with the help of the sou7nd HRP in the organisation.
- It closes the gap of the uncertainties which help the organisation like Tesco to achieve the desired business targets.
Apart from the reasons to set up the HRP in the organisation like Tesco, the external and internal factors influencing the HRP in the organisation are needed to be identified. It has been observed that Tesco has come up with the online delivery services to the people of UK which influence the HRP in the organisation in order to set up the new service. The external factors will be the changes that are being introduced by the Government in relation with the labour market like the flexible practices, standard wage rate or vocational training that influence the HRP process in the organisation. It can also be the political reason like the separation of UK from EU which can affect the HRP in the organisation due to the formation of new rules and regulations.
2.2 Outlining the stages involved in planning human resource requirements
Human resource Planning is a process that consists of five steps that determines the current and future requirements of the human resource in the organisation. The five steps associated with HRP are as follows (Torrington, 2014):
- Step 1 [Business plan will be reviews]: The first and foremost step in the HRP is to understand the goal of the business. For example, Tesco is dominating the supermarket chain in UK with 28% market share and in the next year they are willing to target more share by giving enhanced service to the customers both in the brick and mortar format as well as online medium. After understanding the goal, it is needed to prioritise the business objectives, allocation of the budgets and the performance benchmarks.
- Step 2 [Environmental Scanning]: It is the second step where the internal and external factors are needed to be identified in order to determine the level of influence in the decision making process of the organisation. The external factors like the trends in the labour market of UK, changes or the modifications in the legislations or the cultural values in the related area. The composition of the workforce in the terms of skills and trends or the initiatives of the Government in the areas like vocational training, diver4sity as well as equality.
- Step 3 [Identification of the Gaps]: It is the third step where the shortage in the skills or competencies will be figured out. The supervisors and the line managers will create a succession planning based on the observation and feedbacks. The deficiencies if arise will be overcome by conducting the training and orientation session.
- Step 4 [Development of the plan]: The plan will be prepared keeping all the previous steps in consideration. The factors involved in the budgets and setting of the priorities of the human resources. The time frame, methods, and possible budget will be prepared in order to create the plan.
- Step 5 [Checking the progress]: This is the last stage in the HRP where the monitoring and measuring the activities will be involved. The performance management tools like observation, 360 degree feedbacks, matching of the departmental targets will be given emphasis to measure the progress.
2.3 Compare the current recruitment and selection process in the organization with another organization you recommending
Recruitment and selection is the process that ensures the exact people in the vacant place of an organisation. Recruitment is the step where the organisation analyse the vacancy or need for the new position in the organisation for achieving the target effectively. On the other hand, selection is the process which confirms the candidature of the candidate for the particular position in the organisation based on certain interview rounds. The size of the organisation and the capability of the management influence the recruitment and selection process of the organisations. In order to compare the recruitment and selection process it is recommended to select two organisations with different size that is Tesco and V.K Associates.
The recruitment and selection process of Tesco consider certain steps that are as follows:
- Evaluation of the need and identification of the vacancy are done at the first priority. In case of new position Job Analysis is needed to be done. When the attrition rate goes up, replacement is mainly done (Morris and Venkatesh, 2010).
- The description of the position are developed by designing the interview questions, reference patterns and accordingly the documentation is done by recording all the activities. The duties as well as responsibilities, job functions, purpose of the position, requirements that are the basic qualification will be figured out in this step.
- In the third step, recruitment plan are developed where the job advertisement will be designed. The resources will be planned like the websites, third party consultancies, websites etc.
- In the fourth step a recruitment committee is prepared involving the members who will be responsible to conduct the entire recruitment and selection process.
- In the fifth step the plan will be implemented. The candidates will apply for the advertised position in different mediums.
- In the last stage, the committee will shortlist the names that are matched with the desired criteria.
- All the selected candidates will be informed via email about the interview venue.
- The selected candidates have to face the three stages of the interview which are aptitude test, group discussion and face-to-face interview. The first round is the rejection round where maximum of the candidates will be rejected based on the cut of scores. Later they have to qualify the group discussion and final round in order get selected at Tesco.
- Finally the selected candidate will be communicated by email and phone for the date of joining and medical test.
In case of VK Associates, the recruitment and selection process are as follows:
- When the vacancy will be created, they will advertise the position with the help of an recruitment agency
- The recruitment agency will shortlist the profiles and those candidates to VK Associates
- The HR department is under one manager who is also responsible to take care of operation functions too in the organisation.
- The shortlisted candidates from the recruitment firm will be called for the two rounds of interview which are group discussion and personal interview.
- All the candidates who will be selected are infirmed by phone and e-mail. The date of joining will also be confirmed when the offer will be selected by the candidate in the e-mail.
2.4 Evaluating how effectiveness is the organization recruitment and selection techniques with another organization you recommending
The effectiveness of the recruitment and selection process of Tesco with VK associates can be done from the following ways:
- In Tesco, the basic approach to start the recruitment and selection process begins with the need evaluation and vacancy identification. The positive side will be the recruitment and selection will be done as per the need of the organisation. Future needs and current competencies can be observed in Tesco but not in VK Associates (Price, 2011).
- The recruitment process of Tesco considers a formation of the committee but in case of VK Associates, the committee is not there. One manager is there at VK Associates who look after the operation as well as Human Resource Management and there is a high chance of getting incompetent candidates for the position.
- At Tesco all the resources like outsourcing, internal recruitment are considered which will help to gather potential candidates from the market but in case of VK Associates the dependency in the third party recruiter can restrict the collection of the potential candidates along with that discrepancies can be there in this process which will be overlooked by VK Associates (Price, 2011).
- Sound structure of the recruitment and selection process of Tesco will give exact candidate that will be required for the position. The development of the position in the recruitment process is absent in VK Associates which can restricts the productivity level.
3.1 Assess the link between motivational theory and reward at Virgin Media or your chosen organization. Your answer must show if you think there is a link, what connects the two.
Motivation is termed as the desire which influence the people to act in a certain way. In this perspective motivational theory can be related with reward structure of Virgin Media. One of the popular motivational theories is Maslow’s Hierarchy of Need which highlights five distinct needs that the human being has or expects.
The five distinct needs can be related with the reward structure of Virgin Media in the following way (Sims, 2013):
- Physiological Needs: It is the needs of a human being which involves the shelter, food, medicine for living in this planet. The organisation Virgin Media provides sound remuneration structure in order to support the basic needs of the employees.
- Safety Needs: When the basic needs are fulfilled, there comes the safety need which involves the job security, medical benefits, pension schemes of an organisation. In this context Virgin Media provides job security for the employees and along with that medical cards, pension schemes are also provided
- Psychological Needs: It is the need which is directly related with the family, belongings, friends, societies etc. Virgin Media supports the employee by providing holiday packages and creating groups in the organisation for achieving the targets.
- Self Esteem needs: The organization Virgin Media supports the employee to fulfill their self-esteem needs by rewarding the employees in the form of promotion, recognition and prizes for giving best performances. The magazine “Your Story Framework” reveals the handwork of the employees for getting the promotion (Virgin Media, 2008).
- Self Actualization needs: The last need is the self actualization which the organization support their staffs by providing challenging works in order to achieve the creativity. Social responsibilities are also undertaken in the form of Corporate Social Responsibilities by providing employment opportunities and donations to the charities.
In the same way, Herzberg’s two factor theory can also be related with the reward system of Virgin Media. The two factors are motivators and hygiene factors which can be linked with the policies of HRM at Virgin Media. The hygiene factors that create satisfaction among the employees are done in the way of standard salary structure, positive working conditions, high level of supervision etc. On the other hand motivators are the recognition, reward; responsibility sharing etc. that will ensure high motivation and strong commitment from the employees (Harzing and Pinnington, 2014).
3.2 Evaluate the process of job evaluation and other factors determining pay at Virgin Media or your chosen organization
Job evaluation is the basic step in the recruitment and selection process which determines the responsibility with the concerned post along with the compensation structure. Basically the importance of the job or the value of the job is being determined in the job evaluation. In the organisation Virgin Media the evaluation of the process of the job evaluation can be done in the following way:
The basic steps in the job evaluation are as follows:
- Job Analysis is done by considering job description and specification at the very first step in Virgin Media. Job description collect the details of the responsibilities that are required to undertake the concerned job and job specification ensures the skills and knowledge required to perform the concerned job.
- The second step is the rating process which is also known as Job rating, where the details of the activities are ranked as per the priority
- Accordingly after the rating the pay structure is defined by considering the internal and external factors by the management of Virgin Media.
- Lastly the design is being made which will reflect the hierarchy of the organisation based on the responsibility and position which is also known as job classification.
The factors that are responsible to fix the pay structure at Virgin Media are as follows:
- In case of the external factors, the trade union like USDAW plays a major role in creating coordination with the employees and management. Secondly, the legislation based on the Minimum wage rate for the part time personnel is needed to be followed as per the guidelines of Government. Thirdly, the living cost is considered where the rate of inflation that is 0.2% is assumed in order to determine the wage rate
- In case of the internal factors, performance evaluation, competency level of the employee’s growth rate of the company is considered in Virgin Media.
The positive side of the job evaluation process in Virgin Media is the anticipation of the factors that can motivate the candidates is done effectively. The candidate will get a transparent view in the work process and the compensation structure which will motivate them to give their best performances. On the other hand the negative side can be the dynamic business environment that requires flexibility that is absent in the rigid process of the job evaluation at Virgin Media.
3.3 Assess in different contexts (for e.g. attracting talent, retention, motivation) how effective is the reward systems at Virgin Media or your chosen organization
In the context of Virgin Media, the management is focus on the productivity of the organisation and hence the utility of the performance management is there. For making the performance management successful, Virgin Media has a structured reward system which can motivate the employees effectively in the following way:
- Attracting talent: Virgin Media attract the required talent from their own organisation’s website. The vacancy notice is being displayed at the career section where the candidate can apply via online. Attracting the potential candidates is the main motive for Virgin Media which can be observed from the recruitment process that do not involve any third party recruiter.
- Retention: The selected candidates at Virgin Media are provided with the best salary in the industry. Apart from that rewards like promotion, appraisal, medical facilities and holiday packages are attached in the policy for retaining the talents. All this facilities will trigger the employees to stay back in Virgin Media and hence the attrition will be reduced. On the same time, management must update the policies by examining the factors periodically (Ferguson and Reio Jr, 2013).
- Motivation: For motivation, the management of Virgin Media creates a participative and supportive environment in the workplace in order to give importance to the opinions of the employees for any decision. The line manager used to communicate all the information in advance for removing the confusion and to enhance the level of motivation. It is also required to give importance on the issues faced by the employees for adding the motivation towards their performance.
3.4 Examine the methods Virgin Media or your chosen organization use to monitor employee performance.
Performance Management is the function of the Human resource department in the organisation which reflects the skill gaps between the desired level and expected level of competency in the organisation (Snell and Bohlander, 2010). The progress report of the employees can be tracked from the tools used in the performance management of an organisation. The methods used to evaluate the performance at Virgin Media are done by the following ways:
- Performance Appraisals: It is the method where the performances are rated by the feedbacks of all the participants be it a colleagues, senior, junior and customer. 360 degree feedback can be observed which will give true picture about the performances of the employees and also the conflict will not be there. On the other hand the negative side can be the strong personal relation of an employee with all the staffs can give false picture regarding the performances.
- Observations: It is done by the immediate senior to a fresher in the organisation. All the approaches of the fresher regarding their performances are observed by their immediate senior to determine the progress. The positive side is the true picture of the performance that is observed by face-to-face. On the other hand the negative relation can influence wrongly about the performance level.
- Quotas: This is literally the targets set by the management for the individual employees in order to achieve the collective business goals. The fulfilment of the targets will ensure the progress. On the other hand the sometimes the targets are not practical with the circumstances which can negatively reflect the picture of the performance (DeCenzo et al, 2015).
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.
As per the case study, Termination is the end of the contract between the employer and employee relationship due to the violation of the contract terms and conditions. In the case study the reason that are observed are the negligence in the responsibility, using office equipments for personal purpose, ethical practices are held responsible for the cessation of the contract. Faisal is the employee and Bob is the owner of the organisation that is Chicken Master as per the case study. The main reasons for the cessation of the employment as per the case study are as follows:
- Negligence in the duty and responsibility constantly like the unclean condition at the front of the restaurant, lack in the supervision, using the office equipments for the personal uses are the sole reason for the cessation of the employment for Faisal.
- Secondly the unethical activities like doing personal activities like planning his own business, doing sort of work that is not related with the organisation are not permissible in the premises of the workplace and Faisal was doing continuously.
- Watching illegal stuffs in the office computers by Faisal at the premises in the Chicken Master
The other reasons that can be linked with the cessation of the employment are:
- The productivity was going down which cannot be affordable for the small restaurant like Chicken Master and for that reason termination is processed
- Illegal activities can affect the goodwill of the organisation and for that reason Faisal was terminated.
- As the fund is low for the Chicken Master and keeping an unproductive employee will not be feasible for Bob
4.2 Describe the employment exit procedures used by The Chicken Master and another organization of your choice
Employment exit procedure is the process that the organisation applies during the termination and resignation of the employee. In this process all the privileges and benefits will be stopped and at the end all the dues will be paid to the concerned employee after the meeting of all the terms and contracts (Torrington, 2014). In case of Chicken Master the exit procedure did not involve the structured process. In the exit procedure of Chicken Master, the provision for the notice period is not served from both the end. The owner of the Chicken Master terminates the employee Faisal without giving him a scope to justify the activities that he was doing at the office premises.
In case of Tesco, the exit procedure contains several steps which are as follows:
- When the employee will apply for the resignation, he/she needs to state the reason orally before the manager and after hearing the reasons the manager will try to negotiate with the employee. If the negotiation is not done, then the exit procedure initiates.
- In the second step, the manager will give forms regarding the resignation, feedback and exit procedure. He needs to fill up the form and duly signed by his/her immediate senior. The parameters like work process, behaviour of the manager, working environment is mainly focused.
- A notice period is needed to be served for 1 month by the employee. In the notice period the holidays left outs can be utilised by the employee.
- After the completion of the notice period, the employee will be discharged with certificate and due payments.
As per the ACAS code of conduct, Tesco follows the provision of the notice period and negotiation with the employee. The trade unions are also entrained as per ACAS in order to bring the mutual understanding between the employee and the management. At last the written statement is needed to be provided to the employee regarding the unprofessional behaviour which is not followed by Bob towards Faisal.
4.3 Consider the impact of the legal and regulatory framework on employment cessation arrangements with an organization such as The Chicken Master if Faisal’s claim was proven to be true.
The legal and regulatory framework as per the Government of UK gives several guidelines that are needed to be maintained by the organisations operating in UK. First of all it is needed to understand the legal guidelines as per the Government on the ground of employment cessation that is follows:
- Equality Act 2010 declares that discrimination in the employment are restricted and penalised. The grounds like recruitment, selection, race, gender, religion will not be there in the employment terms and conditions. If the employee thinks that he/she is discriminated then he/she can approach to the quality management once again or to the trade union for the negotiation. Otherwise he/she can appeal to the employment tribunal. In the employment tribunal all the views will be recorded from the both the employer and employee’s end for giving decision (Gov. UK, 2016).
- Secondly as per the ACAS code of conduct, a written statement declaring the reason for termination is to be given to the employee. The notice period is to be given for the employee in which he/she may find another job and in the same way the employee should also serve the notice period for giving opportunity to the organisation for finding the replacement (Gov. UK, 2016)..
The positive impact will be on the employees who will get motivated from the Government due to the support and security. The organisations following the rules and regulations can also create good will in the market and that can attract best talents. The cost of recruitment and selection will also be reduced. On the other hand the negative impact will be the wrong motive of an employee to affect the goodwill. For the small organisation like Chicken Master, fund is the main issue and maintaining all the legal norms will increase the cost of the operation and that cannot be feasible.
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In order to conclude this report has given emphasis on the human resource management. The differences with the Personnel management and Human Resource management, responsibilities of the line manager, impact of the regulatory framework are discussed by assuming the organisations like Tesco and VK Associates. In the second part of the report, the analysis of the Human Resource Planning as well as recruitment and selection process is briefed. At the third part, the discussions are done based on the organisation Virgin Media regarding the motivational theory and reward system in the organisation. At last the report has consider a case study where the employment cessation, exit procedure are highlighted with the reference to an organisation Chicken Master.
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