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Unit 22 Difference between Personnel Management and HRM Assignment
Diploma in Business
Unit Number and Title
Unit 22 Difference between Personnel Management and HRM
In every organisation, there are different departments that are responsible for handling their tasks related to their department. Like finance department needs to handle all the financial aspects of the organisation, sales department needs to meet with their sales targets. Likewise human resource department needs to handle the activities related to recruitment selection, performance measurement, performance appraisal, payroll management etc. Human resource department plays an important role in an organisation as there is a workforce in every organisation who works for achieving the goals and objectives of the organisation. It is important to handle the human resource in proper way so that they can effectively contribute their skills and efforts to the organisation. They have to maintain a good relationship with the employees and help them in stress management and providing guidance whenever it is needed. Human resource department has to ensure that employee safety has been maintained and employees are provided with a proper environment to work with.
1.1 Differentiate between personnel management and Human resource management giving examples in two suitable organisations.
PM is the aspect that works as the link between the management and the workforce working at the workplace. It helps in managing the payrolls and wages of the workforce as well as the legal aspects. Nature of PM is administrative. It basically works to maintain a relationship between employer and employee within the organisation.(Onsongo, 2012) Human resource management refers to manage people within the organization in relation to providing training and guidance etc. (Sparrow, 2006)They are responsible for hiring human resource and develop them so that they can able to work in the organisation. They work for achieving different organisational goals as well as individual goals.
Diff b/w PM and HRM is as follows-
Basis of differentiation
Personnel management includes management activities that are concerned with the relationship between manpower and organisation.
It is an approach of management which is related with the effective use of manpower of an organisation in order to achieve the goals and objectives of that organisation.
Assumed as tools.
Assumed as an asset.
Approach used in this is traditional.
Approach which is used in this is modern
Flow of communication is not direct
It have a direct flow of communication
It works on daily basis
It involves functions that are strategic in nature.
Basis of pay
As per Job evaluation.
As per performance Evaluation.
It includes slow decision process.
It includes fast decision process.
In HSBC, performance evaluation is used as a way for determining the basis of pay by human resource department. To ensure that the performance of the employee is up to the mark, evaluation of the qualitative as well as quantitative aspects is being done. Their basis of pay is totally according to job evaluation. It is necessary that HRM of TESCO should provide proper set of training so that stress of the employees could be managed. On the other hand PM did not provide any kind of training so as to manage the stress of the employees working at the workplace. Assess how human resource management functions help your chosen organisation in achieving its purpose. HRM is responsible for many function and they have different roles and responsibilities that are need to be fulfilled. Audi is a British Company that is involved in manufacturing of cars. There are different managerial and operational functions in Audi.
Managerial functions are as follows-
Operational functions are as follows-
- Recruiting the human resources
- Development of human resource skills
- Compensation of management
- Maintaining records
- Creating strong relationship
- Human resource planning and evaluation
Performance evaluation is an important process for measuring performance of employees in Audi. Evaluation of the work done by the employees is being done so as to gather the information regarding whether the standards that are set for the performance are met or not. They believe in providing proper training and induction to the employees that can help in enhancing their skills.(Grieves, 2003) Training is an important requirement to perform the task in the best way. They are required to ensure that proper working condition should be provided to employees and there should be a safe and secure working environment. Human resource department has the responsibility of providing remunerations and rewards to the employees. Rewards refer to employee benefits that are given in addition to salary for motivating the employees. These benefits are perquisites, bonus, gratuity etc.(Sparrow, 2006) Human resource department works on stress management so that stress cannot affect the performance of the employees.
1.3 Evaluate the roles and responsibilities of line managers in your organisation or familiar organisation and how it supports human resource management functions.
- Line manager acts as the link between the employees as well as the management. Employees are required to report daily to the line managers. Their roles are-
- Performance appraisal process
- To ensure that the work life balance of the workforce could be managed
- To carry on disciplinary activities
- Grievance handling
- Recruitment and selection.
Responsibilities of line managers are-
In Audi, strategy formulation and performance management system is designed by line managers. They work to cope up with the changing business situations and other high level business activities. They are responsible to develop human resource policies and procedures.(Onsongo, 2012) It works on maintaining a healthy relationship between the employees and managers so that performance of employees and their motivation can increase. Because of all these reasons, managers can change employee’s attitude and behaviour. There are different front line managers in the organisation who are responsible to provide advice and guidance to the employees at the time of requirement. They provide time to time guidance to the employees so that it can control flow of work.(Sparrow, 2006)
1.4 Analyse how legal and regulatory framework impact on human resource management.
Employee legislation is known as the body of law who works for maintain employee -employer relationship and safeguard their interest in relation to workplace. This regulatory and legal framework creates an impact on human resource management as they are responsible for the applicability of the prescribed Acts in the organisation. There are certain legal rules and regulations which are necessary to be followed by the organisations doing business in the market (Lussier and Hendon, 2013). The Acts which are followed by Audi are-
- The Employment Rights Act- There is some rights of the employees like they are entitle to receive their salary statements. They all are mentioned in the Employment Rights Act. According to it, employee has the responsibility to provide all terms and conditions of employment in writing. With the applicability of the Act, the employees are protected against unfair dismissal by the employer at work.
- The Sec Discrimination Act, 1975- This Act is applicable to protect the employees from discrimination practices on the basis of their gender. They use discrimination practices like hiring employees, promotion of employees etc. on the basis of their sex. They discriminate employees in reference to provide trainings and guidance.(Sekhri, 2010)
- The Equal Pay Act, 1970- According to this Act, an equal pay should be paid to both men and women for the same task.
- The Race Relations Act, 1976-It is necessary that organisations should avoid discrimination related with the race of the people and provide them, equal opportunities at the workplace.
- The Disability Discrimination Act, 1995- This Act is applicable for the organisation, where there are more than 20 employees. This Act states that both abled and disabled employees should be treated equally in working premises. No discrimination should be done in terms of transport, education etc.
2.1 Analyse the reasons for human resource planning.
HRP provides a set direction to the management regarding the requirement of human resources at the workplace. It is important to achieve goals. Without planning, nothing can be done in a proper way. Planning of human resources ensures the availability of current human resources as well as their future requirements. It helps in developing the strategic plans and helps HRM to manage the work accordingly. HRP ensures availability of human resources at right time and right place. It helps an organisation to acquire individuals with right skills. Firstly, HR department evaluate the number of candidates available at the workplace then assess the future requirements and take actions accordingly by developing a program so as to fulfil organisational needs.(Jones, 2008)
The main reason that describes the human resource planning are-
- Proper human resource planning can helps an organisation to increase volume of business.
- It solves issues regarding employee turnover.
- Human Resource planning can cope up with the changes to the required skill sets.(Lussier and Hendon, 2013)
- It contributes in controlling labour cost.
- Helps in fulfilling the requirement of manpower in emergency situation
- It enables efficient use of manpower in the organisation.
- It helps in forecasting the future requirements in advance.
Planning can helps a process to be conduct in a proper way. It helps in proper implementation of the plans and can determine the future requirements of human resources.
2.2 Outline the stages involved in planning human resource requirements.
HRP is a lengthy process in which there are many steps. All steps have their own importance. These steps includes-
- Analyse objectives of organisation-It is important to know the goals and objectives as every organisation needs to know that where they want to reach. There are many parts of an organisation like finance, HR etc. and each part has its own goal so, it is important to know about their goal.(Sekhri, 2010)
- To know about present human resource requirements- Every organisation should know about present human resource requirement so as to predict the future requirements. It is important to know about their present capacity, their potential and skills in order to achieve organisational goals.(Grieves, 2003)
- Estimation of human resource requirements- It is important to know demand and supply so that surplus and deficit can be calculated. Deficit here refers to the number of employee that is required by the organisation. Surplus defines that how many employees are needed to be terminated. It is important to provide time to time training programs to the employee relation in order to enhance their skills and make them perfect for a particular job.(Shields, 2007)
- Creation of final plan- Final plan has been prepared according to the estimation of human resource requirement i.e. as per the surplus and deficit. So, the final plan should be related to the termination of the employees or hiring new recruits.
- Monitoring, controlling and feedback- It is a situation of implementation of final plan in that allocation of human resource has been done according to the requirements. By controlling the plan, errors can be detected in an easy way.At last, it is important to compare human resource plan and implementation of the same so that necessary actions have been taken.
2.3 Compare the current recruitment and selection process in the organization with another organization you recommending.
Human resource planning policy plays an important role in recruitment process, as current recruitment process has some deficiencies that can be fulfilled by proper planning. Candidates appeared in telephonic interview first. The questions that were asked are irrelevant and they are not matching the requirements. These are the questions that should not be asked in telephonic interview because of irrelevant nature.
Process used to recruit and select the people by HRM is:
Screening interview- HRM conducts screening interview of the candidates. Certain direct questions are asked by the interviewer in a telephonic interview. Candidates who are unqualified or do not have effective communication skills are eliminated in this round.
Selection Tests- Selection tests are the tests which are undertaken to know about basic capabilities of an individual as per the requirements of the job. These are of different types like aptitude, psychometric test, general knowledge etc.(Jones, 2008)
- Work sample test-It shown the capabilities of an employee at workplace.
- Job knowledge test- It is based on the individual’s knowledge about the job.(Sparrow, 2006)
- Personality Test-It shows the personal features of an individual that determines his personality.
Interview- Interview is a process in which direct questions are asked to an individual based on his education, experiences, trainings etc. This involves more time as recruiters analyses a candidate in a very deep manner so that they can ensure the authenticity of candidate.
Background verification check- It involves overall verification of background of the candidates, his past experiences etc. This is important and adopted by most of the organisations because usually candidates lie about their experiences and education.
2.4 Evaluate the effectiveness of the organization recruitment and selection techniques with another organization you recommending.
Recruitment and selection process involves the overall procedure of hiring an employee.It shows the criteria and skills of an individual that are required by an organisation. Every organisation plans their recruitment and selection process according to the job specification and what qualifications they need in their employee. Improper recruitment and selection leads to more employee turnover.It is very important to identify the skills and qualities of an individual because it is necessary to hire right candidate for right profile. Recruitment practices should not be very complex because it can create difficulties for the organization as it is not able to find out the suitable candidate because of the crucial recruitment process.
Cadbury has a proper recruitment and selection techniques. It is important to consider both internal and external candidates for recruitment. Internal recruitment is more effective as there is no induction and training cost involved the employee that is hired from an internal recruitment is known to the organisation and it helps him to understand things quickly.In internal recruitments, an organization can easily rely upon a candidate because of the reference already exist in the organization. It becomes less costly as well as less time consuming for an organization behaviour. Selection techniques are based on interviews and other test in those candidates are judged on different basis. As Cadbury believes that it is essential for an organization to test the different capabilities of the candidate, it conducts different tests and It decides the selection by evaluation of the tests. With the help of various selection techniques, an organisation can find out the best suitable candidate for the organisation.(Onsongo, 2012)
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.
Virgin Media was formed at the time of NTL merger. It is an international cable company. Employees are treated as an important asset in virgin media and it uses many techniques for the motivation of employees. Motivation is an important part of an organisation as it influences the performance of employees in an organisation. It can make an employee more comfortable with the organisation and create a sense of belongingness within them. By adopting motivational practices at work, an employee can ensures that organisation have employees who are dedicated to achieve goals and objectives of the organisation. Employees who are motivated can easily accept challenges and can take responsibilities. They always provide helps and guidance to their juniors and colleagues. Negatively motivated employee shows dullness and is unable to provide an effective outcome.(Jones, 2008)
Virgin Media believes in providing many rewards to employees for motivating them. It uses motivational schemes like ASPIRE field pay and reward system and different benefits that includes health benefits, pensions etc. There were certain researches that were done by Fredrick Herzberg in which he evaluated that there are two aspects that are important for every organisation they are motivational factors and hygiene factors. This theory is also known as two factor theory of motivation. Maslow provided a hierarchy in which information related with the needs of the employees is given which helps them to remain motivated at the workplace-
- Biological and physiological needs- It is related to basic needs and requirements of an individual like food, water, shelter etc.
- Safety needs- It means the safety of an employee. It can be related to lay, stability, security etc.
- Belongingness and love needs- It refers to the affection, relationships with friends and family etc.
- Esteem needs- It means to build a status and achieve something that will result in the feeling of esteem.
- Self- Actualization needs- It is related to self- fulfilment and personal growth.
3.2 Evaluate the process of job evaluation and other factors determining pay at Virgin Media or your chosen organisation.
Job evaluation has been done by a predefined procedure. It includes meetings in that employee’s performance and their review has been discussed in relation to the objectives. They make plans according to employee’s performance so that they can determine the progress of the organisation. It results in more fairness and consistency as it offers chances in increase salaries of employees. Virgin media has adopted an approach that is concerned with “doing right things’ so it can make people happier and increase efficiency of their performance (Obeidat, 2012). It uses corporate social responsibility initiatives that ensure that workers could move on the path which is full of opportunities and could motivate themselves. Job evaluation consists of this following procedure-
- Job Analysis- It means to analyse a job by inspecting all of its elements. It consists of the description of a job that is to define different roles and responsibilities and job specification, that means to describe necessary skills and knowledge that is essential for a candidate to perform a specific job.
- Job rating- It is same as job analysis that consists of job description and job specification.
- Allocation of money-It is related to the allocation of money that decides pay structure for each job according to its value.
- Job classification- It is a step in which categorisation of job has been done according to their pay structure.(Lussier and Hendon, 2013)
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.
Rewards are considered as one of the most effective way for motivating employees. Virgin Media has adopted different ways by that it can motivate its employees. It has adopted a bonus scheme that affects performance of the employees. This scheme is known as ASPIRE field pay and reward system.(Grieves, 2003)
- Virgin Media considers different strategies for improving employee’s performance and to highlight their achievements. Two of them are-
- Under NPS Hero championship scheme, organisation gives a personal letter of appreciation to its employees, when he scores 10. (Sparrow, 2006)
- Under SHOUT, organization appreciates its employees for maintaining organisational culture and values within the organisation.
3.4 Examine the methods Virgin Media or your chosen organisation use to monitor employee performance.
It is important to monitor the employee’s performance as it shows the contribution of employee’s efforts towards the goal. The ways of monitoring employee’s performance are-
- Performance reviews-Performance review sheets help managers to track performance of the employees and their progression towards achieving the objectives. (Shepherd, 2006)There are different categories in performance review sheet that includes everything like customer complaints, interpersonal skills etc. it is subjective but it is a very convenient source for measuring and tracking employee’s performance.
- Peer Appraisals-Peers always have some opinions about their colleagues’ performance. Appraisals are recorded on a database or a sheet and provide an important feedback source for employees and managers. It can be tracked over different time periods that can reflect favourable and unfavourable behaviour patterns.(Obeidat, 2012)
- Dashboards- Many organisation uses dashboards to analyse and track employee’s performance. It includes much type of matrices that are based on critical success factors of an organisation. Dashboards help business managers and employees to track their performance in an objective way.(Shields, 2007)
- Voice of the customer-Many companies tracks the voice of the customer so as to take actions on their complaints that is important for quality assurance. It can include excel worksheets to know about product or service failure. Tracking customer complaints help an organisation to fulfil the needs of customers.
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 was run by Bob in whom Faisal was employed to manage the work. It is claimed by Bob that Faisal was running his home business in the working hours and was also using the assets of the company for personal use. According to the claim made by Bob, Faisal has violated the policies of the company (Grieves, 2003. There were several warnings given by Bob to Faisal but he continuingly indulged in the practices of breaching the policies of the company. By not seeing any kind of change in Faisal, Bob decided to terminate him from the job.
Employee cessation can be done for several reasons they are:
- Retirement-It means a situation when a person has completed his specific time period of providing services on attaining a particular age.
- Resignation- Voluntarily action of discontinuing providing services to an organisation due to any reason.
- Redundancy- When a job is no longer necessary of a person, that situation is known as redundancy.(Lussier and Hendon, 2013)
- Death- It is situation when a person discontinue in providing services because of his death.
- Dismissal- It is a situation when an employer dismissed an employee from the job. There should be a fair reason for dismissal.
4.2 Describe the employment exit procedures used by The Chicken Master and another organisation of your choice.
Employment exit procedures refer to the professional termination of an employee from an organisation. It consists of the employees that are terminated from the organisation or that have resigned.The exit procedures used by Chicken Master are as follows-
Dismissal- Dismissal is a situation when an employer ends the employment contract due to a genuine reason. Types of dismissal are as follows-
Fair Dismissal-It means when an employee has dismissed due to a fair reason. It can be-
- Legal Reasons
Unfair Dismissal-It is a situation where there is no fair and authentic reason for the dismissal of an employee. Reasons may include race, colour, caste, unfair compensation etc. There are different penalties for the organisation that uses this practice. (Shepherd, 2006)
Constructive Dismissal- In this employer breaches the laws of contract due to which employee resigns from the workplace. Employee has the right to claim the dismissal in some circumstances like-
- Cutting down wages
- Wrongly demotion
- Harassment or discrimination
- Location Change
- Improper working conditions
Wrongful Dismissal-Decisions made by the employer to terminated the employee without providing proper reason or terminating the employees for non performance of any illegal activity.
Own will Resignation- It is a situation when employee doesn’t want to continue to work with an organisation because of any reason. He requires serving notice period and fulfilling all the requirements that are prescribed.
Employment exit procedure used by Tesco are-
- Retaining methods- it includes offering a better compensation to retain an employee.
- Exit interview- If an employee wants to leave the organisation even after the application of retention offer then organization conducts an exit interview with the manager.
- Referencing- It refers to give all the required documents and a letter of reference to the employee.
- Return of Property- Employees has to return the official property to the company including uniforms, equipment’s etc.
- Pensions- If an employee is entitled for pension then it is the responsibility of the organization to pay it on time.
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 the management to give a proper reason before dismissing the employee from the organisation. It is necessary that employee should follow all the ethical aspects and behave in a proper way at the workplace. There certain legal processes set by the advisory which are necessary to be followed by the employees. Employees should have the proper set of information regarding the employment right act and should work accordingly at the workplace (Armstrong, 2003).
The rules for dismissal and redundancy-
- All organisations need to lay down their dismissal procedures.
- Employees have the right to receive a fair remuneration at the time of unfair dismissal.
Dispute resolution- To lay down the organisation’s requirements to adopt a proper procedure in relation to grievances and discipline. Provides employee’s right related to employment disputes.
ACAS code of practice- It shows that the fairness of dismissal is sufficient or not. It is important to guide employees regarding ACAS code of practice. For ACS code of practice on Disciplinary and Grievance procedures, there is not any specific law. So, if an organisation fails to apply it, then it is not assumed as an unfair dismissal.(Lussier and Hendon, 2013)
Human resource department has its own importance in an organisation as it is responsible for handling many tasks includes selection, training and development, grievance handling etc. It is important for an organisation to use its resources in an effective and efficient way so that it leads to achievement of goals and objectives. Human resources are the employees or the workforce of an organisation that contributes their efforts, skills and knowledge in fulfilment of objectives. Employees should be provided with safe and healthy working conditions so that they can remain motivated and feel comfortable. It is important to provide them rewards for their achievements and make them feel proud. Organisations also provide monetary as well as non-monetary benefits to employees for motivating them.
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