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Unit 21 Human Resource Management Functions Assignment
Diploma in Business
Unit Number and Title
Unit 21 Human Resource Management Functions
The functions of HRM are indispensible for any business in its long-term success and usually revolve around recruitment, managing and directing the employees. Business advisors consider that the modern form of HRM is highly influenced by various paramount principles, which might be an elementary recognition that employees are an organization’s invaluable asset. Any business can never be successful in long run without effectively managing its employees.
Michael Armstrong in his book A Handbook of Human Resource Management has enunciated another key principle that a business is most likely of achieving success if employee policies are closely related with the company policies further making large contributions in achieving the objectives and strategic plans of the organization.
1.1. Differentiate between personnel management and human resource management giving examples in two suitable organisations
In this section difference between PM and HRM is illustrated with examples of Breakfast Club Cafe and Pret A Manger. The former is a local cafe in Soho district, London which follows personnel management whereas later is sandwich shop chain in UK which practices Human resource management . (Stredwick, 2013)
Human Resource Management
It defines managing administrative functions of personnel to achieve aims of business.
It defines managing human resources to utilise their potentials to meet business objectives with mutual benefit.
On planning, organising and controlling resources. Example, Breakfast Club Cafe delivers excellent customer service by planning and organising activities of personnel. (Stredwick, 2013)
On improvement of policies and enrichment of resources. Example, Pret A Manger has HR policies that nurture growth for organization as well as resources.
At Breakfast Club Cafe control of decisions is with management
At Pret A Manger control of decisions related to human resources is with HR department. (Stredwick, 2013)
Objective of Breakfast Club is administrative improvement
Objective of Pret A Manger is improvement of human resources
1.2. Assess how human resource management functions help your chosen organisation in achieving its purpose
Functions of HRM help Pret A Manger in achieving their objectives by:
- Scheduling work and labour: work is allocated as per capabilities of labour and demands of production. This function even assesses future demands and needs of change to plan supply of labour or enrichment of their talent to fulfil objective of Pret A Manger. (Watson, 2013)
- Recruitment and Selection: when future demands are predicted and internal capacities are assessed then recruitment planning is made to fill in shortage. Thus this function acquires best talents as per potential roles to satisfy purposes of Pret A Manger.
- Salary and Appraisal: compensation is designed according to skill and job description therefore Pret A Manger obliges employee contribution with standardised payment and benefits like bonus. Additionally, depending on performances employees are rated for appraisals like promotions, salary revisions etc. This keeps employees satisfaction and growth needs fulfilled which is necessary to achieve goals of business. (Watson, 2013)
- Skill development: to achieve future demands Pret A Manger develops potentials of their employees by imparting skill enrichment training. This adds to competitive advantage of organisation as well as resources to meet futuristic purposes. (Watson, 2013)
- Employee relations: friendly working environment, flexible policies and welfare of employees is maintained in Pret A Manger to keep employees satisfied and encourage positivity. This reflects on employee’s productivity and purposes of company.
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 in Pret A Manger are liable for execution of work procedures at various levels.
They support HRM functions by disposing their purposes through:
- Allocation of task and labour management: line managers distribute task by assessing employee’s talent to ensure accuracy and better performance. This helps in better process fulfilment and management of labour where line managers encourage participation and coach them for supporting higher outputs. This even builds better relations between team and line managers. (Alfes, Shantz, Truss and Soane, 2013)
- Improving relationships: line managers in Pret A Manger encourage employees to increase their yield and meet targets. They even support and guide them to build positive relationships and friendly environment where communications are open. This helps to meet goals as well as keep them engaged helping in betterment of HRM practices.
- Designing Training and Appraisals: line managers in Pret A Manger assess employee’s performance and help HRM functions like training and performance management. Weak employees are provided training to develop employability skills whereas competent resources are appraised with benefits. This helps to meet growth of resources and company which is another function of HRM practise. (Alfes, Shantz, Truss and Soane, 2013)
1.4. Analyse how legal and regulatory framework impact on human resource management
Legislative framework supports HRM functions and impacts on practices of Pret A Manger through:
- Equality ACT 2010: which states that employees in Pret A Manger are protected against any discrimination based on gender, race, nationality. Thus every staff irrespective of these grounds receive equality of pay which depends on job description and experience. This helps to maintain diversity of labour at Pret. (Budhwar and Debrah, 2013)
- National Minimum Wage ACT 1998: states that pay of employees in Pret A Manger are subject to changes in labour market and employee legislation policies framed by government. Thus they are protected with minimum cover of wage structure. (Budhwar and Debrah, 2013)
- Employment ACT 2008: states that employees in Pret A Manger should be given in writing agreements that includes statements of payments and benefits received in addition to information on work environment, safety and timings. It should also state termination procedures and code of conduct which protects employees from wrongful discharge and preserves their well being.
- Disability discrimination ACT 1995: states that Pret A Manger should offer opportunities and access for all irrespective of disability. Also working conditions, transport and utilities like toilets should be made adaptive to impaired employees to prevent distress. Thus it protects rights of impaired employees. (Budhwar and Debrah, 2013)
2.1 Analyse the reasons for human resource planning
HRP is process that examines existing and subsequent need of labour to achieve production demands of organization effectively. In the scenario, there is need for HRP, which can be seen as:
- Internal Analysis for HRP: it is seen that current organization lacks proper human resource planning which is major cause for employee turnover and poor resources. Good planning will help to acquire competent resources after assessment of skill gaps and needs of job role, therefore helping to fulfil demands with good outputs. Additionally, it will help to ensure satisfaction of resources who would be capable to understand work process leading to reduction in workloads and errors. Thus, it will help in proper work and labour management cost effectively. (Renwick, Redman and Maguire, 2013)
- External Analysis for HRP: In current organization, there is no systematic recruitment process, which has resulted in employing poor resources. Thus proper HRP is needed which will analyse functional needs and competency of resources helping to choose right match for job. It will even help in minimising employee turnover with strong HR practices and policies. Hence, recruitment pattern need to be revised with structured process, which will assess knowledge, skill and personality closely to attract and retain quality resources. (Renwick, Redman and Maguire, 2013)
2.2 Outline the stages involved in planning human resource requirements
In the current organization various stages that will be included in human resource requirements are:
First the current strength of organization is analysed to review on capacity planning with organizational objectives. Thus shortage will be identified here which will help to roughly plan and organise future requirements. (Ulrich, 2013) In next step, employee assessment will be carried to estimate current capacity and future need of development or new acquisition. In addition, work environment including policies will be scanned to identify shortcomings and reasons for employee issues. After all assessments are made in above stages, a plan will be drafted here which will establish balance between employee expectations, labour supply and futuristic needs of organization. (Ulrich, 2013) Once planning is done, a process will be designed for recruitment which will test skill and competence of potential resources according to need of job role and production demands. This will help to attract and retain quality resources. Now the process will be executed and progress will be recorded which will help to identify success rate and lacking against established standards. This will help to control and finalise the outline for planning. (Ulrich, 2013)
2.3 Compare the current recruitment and selection process in the organisation with another organisation you recommending
- Recruitment Process in current organization and Pret A Manger: Recruitment process followed in current organization is lacking in several parameters to hire quality resource which has led to high rate of their turnover. The existing process has no resume scanning & selection and candidates are called for telephonic interview without any valid process. Also, those who are called are asked very basic details which fail to examine their true potential. Thus it has several flaws in current procedure. Whereas, recruitment process in Pret A Manger is very systematically carried out. First potential vacancies are identified and then needs related to job function are examined. Then proper job description and person specification is drafted and announced on their online job portals. Candidates are encouraged to submit online applications which are then processed and sorted to find potential match on basis of preliminary information. (Ahsan, Ho and Khan, 2013)
- Selection Process in current organization and Pret A Manger: The process of selection in current organization is also weak to select fitting match according to job role. The candidates who pass through telephonic interview are called for psychometric assessment and aptitude test during which final selections are made. It lacks scheduled testing of potentials of candidates under real work situations thus is improperly designed. Whereas, selection is an elimination process in Pret A Manger where candidates who pass through preliminary round are invited at recruitment centre. Various tests are conducted here like written examination to test technical knowledge and communication skills. Those who qualify are given work related exercises which are reviewed by respective line managers. Final candidates are called for interview round with HR managers who review and make final selection. (Ahsan, Ho and Khan, 2013)
2.4 Evaluate the effectiveness of the organisation recruitment and selection techniques with another organisation you recommending
Recruitment and selection process in current organization is ineffective in attracting and finalising quality employees. Firstly it lacks call for Application or CV on which preliminary sorting is made. Then, it has inadequate telephonic interview system where candidates are asked basic questions on their background. This lacks in examining true skills and experiences of candidates. Next, sort listed candidates are called for psychometric assessment and aptitude test which is followed by final selection. Thus, this too lacks proper assessment criteria to find right fitting candidate who can be retained for long. (Schneider, Ehrhart and Macey, 2013)
Whereas, recruitment and selection technique practised in Pret A Manger is more systematic and well built to examine competency of candidates according to needs. This is because firstly vacancies are internally identified and assessed against skill demands which help to design proper job description and person specification. Then applications are invited online to increase reach to multiple locations and pool of talent. Next, these applications are sorted to find fitting match according to initial information who are then invited at recruitment centre. Here, candidates are first examined on subject based knowledge and those who qualify are asked to participate in simulation tests. This helps to examine their real response and tactical knowledge. Further selected candidates are called for interview with HR managers who make reviews and final decision. Thus, multiple elimination and filtering process initiates best fit for job which is more effective compared to current organizations technique. (Schneider, Ehrhart and Macey, 2013)
3.1 Assess the link between motivational theory and reward at Virgin Media or your chosen organisation.
One can describe motivation as an employee’s intrinsic devotion, which drives him/her in accomplishing a given task at work. Biological, intellectual, social and emotional factors influence an employee’s motivation. Motivation is a complicated intrinsic driving force, which cannot be defined easily and hence is influenced by external factors. Various motivational theories have been developed that can be applied at workplace. For example, Herzberg’s two-factor theory emphasizes on two factors namely hygiene and motivators, which certainly leaves its impact on rewards at Virgin Media. Hygiene factors such as pay, working conditions and organizational policies although do not motivate the employees but they do affect their dissatisfaction levels. Authority, opportunity and recognition, on the other hand help in improving their motivation levels and are reward for the employees. At Virgin Media, recognition is related to the added benefits and authority is related to the level at which employees work. Other than Herzberg’s theory, Virgin Media also considers Maslow’s Need hierarchy theory where the employees’ expectations are ranked in a bottom- up approach in terms of job security to self-actualization. Conferring to this motivation model Virgin Media frequently designs programs of training and motivation for satisfying the personnel needs. (Lent, Brown and Hackett, 2013)
3.2 Evaluate the process of job evaluation and other factors determining pay at Virgin Media or your chosen organisation
Virgin Media with the help of job evaluation process establishes relative value of the jobs within the company. Job evaluation comprises of two stages that are job description and evaluation where in job description the HR department determines the key job aspects like responsibilities, accountability, decision-making, qualification needed etc. Three major factors are analysed in job evaluation namely knowledge needed for competent performance, complexness in the role of making decisions and authority or control in the position. The pay structure at Virgin Media is developed based on these factors. Apart from job evaluation, pay surveys is another important tool that is used by Virgin Media where the HR department compares the employees’ salaries and the company’s compensation policies with its competitors. Once the survey is done, the outcome is analyzed and subsequent changes are determined and made in the payment structure, if needed. At last, the jobs are rated based on the job designations within the company, responsibilities, physical involvement and qualifications required. (Bernardin and Wiatrowski, 2013)
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 organisation
At Virgin Media, reward system has been the main concern of the business management , as they understand the importance of having an effective reward system for maintaining employees motivation levels and representing a harmonious management style when compared to its competitors. At Virgin Media, the rewards include both monetary and non-monetary beneficial items. (Burke, 2013)
Effectiveness of reward system at Virgin Media:
- Attracting Talent: at Virgin Media, the HR department emphasizes on providing various options for getting associated with the company in the form of apprenticeships, internships, fulltime, flexible working hours for attracting talents. In addition to these, the employees are also given added benefits such as medical covers, educational and personal loans, family insurance plans etc. This kind of reward system has been helpful in attracting talented undergraduates and professionals who are looking for a better opportunity or are about to start a career. The effectiveness of Virgin Media’s reward system is high in terms of attracting younger and dynamic applicants in getting associated with the brand. (Burke, 2013)
- Motivation: Virgin Media has successfully determined the factors of motivation and furnishes it to the employees in the form of several benefits, which can either be monetary and non-monetary. By joining the company’s apprenticeship programs university going students can easily pursue both their education and career at the same time. Securing employees and their dependents through medical benefits, insurance, family plans etc. eventually motivates the employees in displaying their 100% best performances knowing that the company is always there for them and their families. (Burke, 2013)
- Retention:this approach adopted by the company has been helpful in retaining the student-cum- employees who successfully complete their apprenticeships at Virgin Media by offering them a full-time position of their choice with attractive packages. Moreover, retaining the apprenticeship students also lessens the recruitment and training costs.
3.4 Examine the methods Virgin Media or your chosen organisation use to monitor employee performance
Virgin Media makes use of various techniques for monitoring the employees’ performances. The HR department believes in making the best use of the approach of perception and opinions for keeping a tab on employees’ performances. In this process, the management outsources a third person for monitoring the employees’ performances at work who consequently gives inputs to the concerned authority. In addition, the company also has set a performance standard which plays a key role in measuring the employees’ performances. Under this kind of framework, an employee’s performance is ought to be realistic, measurable and communicated in terms of time, quality, impact on business and way of performance. Apart from these, performance dissection is another method used in Virgin Media for measuring a specific employee’s performance against expected performance. The HR department encourages the line managers to openly discuss with the employees and give feedbacks on their individual performances that further will be helpful in spotting the areas of shortcomings and identifying the measures for overcoming the performance failures and enhance employees’ productivity. (Appelbaum, 2013)
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 Chicken Master’s proprietor Bob has hired 54-year-old Faisal for managing the restaurant hoping of a hitting a homerun but had to terminate him within six months on the grounds of poor performance and policies violation. Bob noticed that Faisal never maintained cleanliness in the restaurant and kitchen was never stocked, staffs were never supervised. Faisal would take frequent time off for personal reasons during work hours and would regularly watch pornography on his computer, spending is working hours by mailing his wife, helping daughter with homework and planning his own restaurant. In spite of knowing the restaurant’s policies and signing the employee handbook, Faisal would take the company equipment for personal use, which was a straight violation of policies. (Lepage-Saucier, Schleich and Wasmer, 2013)
Other reasons for cessation of the employees are:
- Lack of capability of getting promotions
- Employee looking for a career change
- Employee’s performance is below satisfaction
- Job redundancy
- Inadequate business conditions
4.2 Describe the employment exit procedures used by The Chicken Master and another organisation of your choice
Chicken Master’s exit procedure is swift and can be related with the business growth at the time of financial crisis. However, termination based of employees’ performance is lower and is linked with training, growth opportunities and reward system. The employee to be terminated is notified in advance so that he/she can get mentally prepared and look for other jobs. Same goes for the employees terminated because of inadequate business conditions. Except termination due to unacceptable behaviour, Bob organizes an exit interview for getting the employees feedback. (Mowday, Porter and Steers, 2013)
At Tesco’s, exit procedures the employee needs to submit a resignation letter to the HR Manager citing the reasons to resign. Depending on the employee’s creditability, the HR Manager tries to retain him/her but in case the employee wishes to quit anyway then an exit interview with Floor Manager and HR Manager, where he/she is offered with reference letters upon request for future endeavours and the last working day is notified to the concerned authorities. On the last day due salaries are credited in the account and the employee handovers all equipments provided during the tenure to the HR department. (Mowday, Porter and Steers, 2013)
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
The legal and regulatory framework on employment cessation arrangements leaves an impact on Chicken Master while designing of the policies. Equality Act 2010 constrains the restaurant from practicing discrimination in the form of age, gender, religion etc. Conferring to the case study Faisal claimed that he was discriminated at Chicken Master and is a victim of age and race discrimination. According to the act, an employee can make an appeal with the trade union or drag the employer to the tribunal if been discriminated where if the employer is found guilty can face legal actions or pay the damages to the employee however, if Faisal’s claims are found to be untrue then he can lose his employment permanently and face a defamation case from Chicken Master. (Cappelli and Keller, 2013)
The assignment throws light on how Pret A Manger has successfully overcome various challenges in implementing HRM policies and strategy at work and how the importance of the role played by HRM has enhanced while growing in size. Evaluation of HRM under different aspects like PM and HRM, recruitment and selection, reward system and employees’ motivation and termination of employment defines that its implementation is a planned process, which evolves over the period.
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