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Diploma in Business
Unit Number and Title
Unit 22 Human Resource Management
Human resource management works as a key to open all the locks of success for an organization. It is one of the most desired fields in this dynamic environment. Today, employees are equally important for the business as capital because these employees are the only assets which help in attaining the objectives and goals of the organization. This is the reason that Human Resource Management is gaining more and more popularity as a field. The assignment is thus going to focus on human resource management and making the learner able to understand the process of recruitment management along with the techniques to motivate employees according to the job requirements. The various ways to reward the employees are also discussed in the assignment along with mechanisms of cessation of employment.
Tesco is an example of British based grocery and general merchandise retailer headquartered in England, UK. It is a human resource Management Company empowering employees to develop their skills. Personnel management is simply an older version of human resource management. There is no hard and fast difference between the two.
Personnel management functions on its own with the little help from line managers. Power lies in the hands of the top level of management. On the other hand, the human resource management remains unified. There is a decentralization of power where duties are divided among all the departments. For example at Tesco the head of the departments distributes their duties to sales manager, production manager, safety manager and maintenance manager which is further divided to supervisors.
Personnel management based on rules and norms that are so rigid that employees have to follow the regulations as per the employment contract. Tesco aims to go beyond contract. It does not focus on life-time contract and believes in flexibility of work. The flexible approach at Tesco motivates employees to dedicate their knowledge and skills towards organization’s objectives. (Alturkistani, 2015)
The human resource team at Tesco offers effective structure and culture to meet its business requirements. The functions of human resource team in achieving the organizational goals are:
Integration: This function is related to balancing the healthy relationship between managers and employees. The HR team of Tesco focuses on making the industrial relations with other companies as well. The human resource management team at Tesco establishes the application of the program related to industrial relations and fair activities.
Training and Development: the success of the organization depends upon the talented workforce it hires. The employees need to be trained as well as developed. Tesco plc gives the training to the employees and they also conduct various development programs at their premises in order to make their employees more developed and updated.
Effective leadership: it is not easy for every individual to hold the leadership qualities. The HR team at Tesco effectively instructs and directs its employees towards organizational goals. They focus on redirecting HR goals from transactional to strategic assuring the effective path of innovation and forward thinking business ideas.
Performance management: HR managers at Tesco ensure that employees are motivated to achieve the organizational goals. They use different motivational approaches to accelerate the performance of the employees such as incentives, bonuses, promotions and reward system. Compensating employees is not only done to appreciate their current performance but encouraging them to work and improvise harder to achieve future targets at Tesco. (Bianca, 2015)
HRM of Tesco encourages an autonomous and healthy work culture that exhibits a model of transformation.
The Line managers at Tesco have the responsibility of managing the individual employees and teams and they report to the seniors about the performance of the teams they manage. The term “front line managers” is usually used to refer to line managers in lower level of management. The line managers of Tesco have the following responsibilities:
Monitoring Work and Checking Quality: They provide guidance and instruction to the employees about the work details. Managers try and become the role model for the employees. They are clear about the expectations and standard of the behaviour and type of work of the employees. At Tesco, they develop the spirit of teamwork and give equal opportunity to everyone in the team.
Disciplining employees: Discipline at organization starts when line manager spread out his expectations with his team. The HR team is responsible to generate the policies and rules supported by the line managers. The rules enforced by the line managers control the behaviour and performance of the employees. Disciplining employees promotes dedication and seriousness at Tesco.
Promoting Equality and Diversity: They interact with the employee and know them personally so they could treat everyone equally. At Tesco, they create an inclusive environment so that everyone has equal access to all the allowances. Managers ensure that everyone has fully participated in learning process and develop their full potential.
Employee Engagement: The line mangers focus on employees’ strength and encourage them to utilize their potential. They work upon all the negative aspects of the employee and help them overcome it. In order to increase productivity, the line managers influence employees to cooperate, engage and coordinate towards common goals. The line managers who give importance to the negative factors of the employees are more likely to disengage employees.
Safety and health: Another duty of the line manager at Tesco is to care for the safety of the employees. Safety is concerned with preventing injuries and accidents at work. The line managers ensure the regular check-up of devices whether they are working well. It is also the responsibility of a line manager to keep employees free from physical and mental stress. (CIPD, 2015)
At Tesco the following legislations and laws are followed. These are as:
The Equality Act, 2010: This act was revised in year 2010that states that there should be no discrimination while providing opportunities to the employees. The company makes sure that no one is biased by any opportunity to excel in the field. Tesco keeps the following factors that no one should be deprived on the basis of sex, race, religion, caste, creed and physical and disability.
The Data Protection Act, 1998: The data protection act is also followed at Tesco. The data protection makes it compulsory for all the employers to use the data of the employees with utmost care and they should not be used other than the stated purposes.
Sex discrimination act, 1975/1995/1997: this law states that no male or female should be biased on basis of their gender in terms of job position. Job should be given on basis of their capability and not gender.
Race relations act (1992-amended 2000): this law is to sage guard the employees against racism, caste, creed, colour, nationality and religion in the field of employment.
The National Minimum Wage Act, 1998: Tesco also complies with the national minimum wage act 1998. Although according to the changing rates of the economy the amount of the wages also changes. Right now according to the year 2015 the minimum wage rate of the employees of UK is £6.70.
Disability discrimination act (1995-amended 2005): this law has protected the disabled people from being deprived of employment. People can’t discriminate other people on the grounds of their disabilities. (Legislation.gov.uk, 2015)
The human resource planning is a process for estimating the number of employees required to complete the task. It is the planned procedure to improve the skills of the workforce keeping in mind the present and future demands of the company. Thus we can define the significance of human resource planning at Tesco in following way:
Ensuring equal opportunities to all: At Tesco, the HR team assures that no employee is biased on the basis of any kind of discrimination. It guarantees equal employment opportunities to all the workers to maintain dignity of the organization. For example, at Tesco the female employees are offered higher positions if they are eligible and capable of performing the task.
Future manpower needs: it ensures if the number of the individuals working is sufficient for better functioning of the organization. Human resource planning is considered as the apparatus to insure the approaching availability of employees to endure the organizational duties. The number of individuals required for the project is estimated through human resource planning.
Employment Improvement: The main aim of the HR team of Tesco is to improve the skills and calibre of their employees at every possible stage so that they can deliver as much as they can to the organization. They ensure that employees optimize their full potential and give their best to achieve organizational goals.
Recruitment of diverse Workforce: The human resource planning helps the HR team to believe that diversification in workforce will help them in maintaining their brand image which will help them to meet the customers worldwide. The purpose of HR planning at Tesco is to hire and recruit the qualified and diverse staff to capacitate job vacancies.
Cope with change: human resource planning at Tesco is important as it determines the rapidly changing work environment. It supports in analyzing the current human resources with HR catalogue and accommodates according to the social, economic, technological and political pressure. (Accounting Management, 2016)
The human resource planning is an approach of ensuring that all the demands of business and customers are met on time. Various factors affecting the planning process at Tesco are opportunity to employees having specific skills, pending retirements, changes in organization for training old employees. The stages involved in human resource planning:
Analysing Organizational Objectives:The organizational objectives must be analysed first. These objectives could be from increasing the sales to expansion of the functional areas of the company.
Inventory of Present Human Resources: Tesco has Information Storage System; through this information system the HR team gets assess the numbers of the employees in the organization currently and their potential also.
Forecasting Demand and Supply of Human Resource: The demand and supply of human resources is then forecasted at Tesco. The different job positions are analysed in order to predict the requirements of the human resources. The availability of internal and external sources to fulfil job requirements is calculated. The internal sources include promotions and transfers whereas external sources include recruiting new candidates, their job description and specialisation and their skill to perform for the company.
Estimating Manpower Gaps: after the comparison between demand and supply of human resource, the management evaluates the shortage and surplus of the workforce requirement. This estimation points out the equilibrium position where the situation can be solved. Shortage leads to hiring of new employees and surplus results in termination of internal human resource.
Formulation of the Human Resource Action Plan: The formulation of human resource action plan is done than at Tesco. New recruitment and transfers is formulated in case of shortage of human resource, termination and voluntary retirement schemes is executed in case of surplus.
Monitoring, Control and Feedback: The monitoring, control and feedback is the last step in the human resource planning of Tesco. It refers to the comparison between actual plan with implemented plan. (Chand, 2016)
Recruitment and Selection process at Tesco: The first step at Tesco is the registration process. The applicant has to fill the mandatory online form in order to apply for the post. Second step includes the telephonic interview in which the recruiting team evaluates the applicant’s language and communication skill. The further step is the online process where the candidates undergo the four tests-verbal reasoning, numeric reasoning, inductive reasoning test, talent stimulation. The fourth step involves the competency based interview in which the organization needs to know why the candidate wants to work with them. The challenging questions will be asked to understand the applicant better which is further followed through the assessment centre in which greater projects are given to the candidates and are kept under supervision. Group discussions and individual exercises are also involved in this process. The last step includes business interview in which final interview is conducted by the hiring manager. If the candidates clear this round they will be selected and hired by the company. (UCR, 2015)
Recruitment and selection process at Harrods: The candidates have to fill the online form posted on company’s official website. These applicants are called for screening test. Then the eligible candidates have to clear the written test (aptitude, reasoning etc.). The selected candidates receive the confirmation through e-mail and then they have to clear the telephonic or video interview. After this they are called face to face debate with the line managers. The last step is the final interview where candidate goes to assessment centre for his individual analysis. (Harrods, 2016)
The effectiveness of the recruitment and section process at Tesco as well as at Harrods can be described as:
Transparency: At Tesco and also at Harrods the company discloses its strategies and policies regarding the recruitment and selection of the company. This develops the policy of transparency in the organization which is very necessary for the success of the company’s policy.
Training: the correct procedure used for recruiting and selection of candidates exempts the training cost required for the new employees. Giving training to talented and skilled employees results in high productivity which ultimately increases the profits of the company. It is easier to train the employee who is good at particular task than to the one who has soft skills in every task.
Job Satisfaction: The recruitment and selection process also involves the analysis of the job and assessment of its value. Thus the job satisfaction is also ensured through recruitment and selection techniques adopted at Harrods and Tesco as it inculcates high morale in candidates as dull candidates tend to be the reason of absenteeism and sooner or later they quit organization.
Avoiding problems: the recruitment and selection technique ensures that the process is completed without any problems. Ineffective recruiting process costs bucks to make a mediocre employee into a shining star. Well developed hiring process saves time, energy and resources and reduces the hindrances.
Legal Compliance: Tesco also has various advantages as it follows the laws and legislations of UK. The appropriate recruitment and selection process is also very essential to comply with the laws and legislations of the country. (Slezak, 2012)
Motivation: The process that stimulates a person to work diligently towards the attainment of the desired objectives is referred to as Motivation.
Physiological needs: The physiological needs of individual are the basic requirements i.e. food, water and shelter. Virgin media provides competitive salary to their employee which is necessary to complete their basic necessities.
Safety: employees expect its organization to provide job security. Virgin media facilitates various schemes for protection and interest of employees such as staff protection schemes and pension scheme.
Social needs: every individual needs a social environment at the workplace. At Virgin media, employees feel the sense of belonging which fulfils their social wants.
Self-esteem: At virgin media, management inculcates the feeling of self-confidence in employees. They provide platform to raise the standards of employees by challenging them with different projects which increases their confidence level and efficiency as well.
Self-actualization: it is the term used to assess individual’s calibre. Once the potential is identified by the team at Virgin Media, employees are offered different challenging roles where they can use their skills.
Herzberg's theory of motivation: Herzberg in his theory of motivation stated the two kinds of factors that influence the behaviour of the worker, i.e. the motivating factors and the hygiene factors. Motivating factors keep the employees motivated and the hygiene factors inhibit motivation. He observed that these factors have positive impact on the employees. At Virgin Media, employees are highly motivated and are giving best of their capacity. They are working in good environment maintaining healthy working relationship with team and are well paid.
Management thories and reward systems at virgin media: Management at Virgin Media follows the Maslow’s and Herzberg’s theory of motivation. The managers offer benefits to the employees at every level of achievement. Achievement of one objective encourages the employees to achieve the higher goals. Management also motivates the employees by enhancing the factors of satisfaction by providing a healthy work culture and encouraging employee participation in process of decision making. The company offers an appropriate package of tangible and intangible reward system such as bonuses, incentives, rewards to employees along with extra benefits and discounts in insurance policies as well. It offers schemes like ASPIRE field pay and reward scheme. (Hewett, 2015)
The processes in which jobs are evaluated at Virgin Media are:
Analysis of Job: Initially job is evaluated at Virgin Media. It is a manner in which value of the job is evaluated while comparing it to the other departmental jobs in the organization. It makes efforts to compare between jobs in order to analyze their approximate worth for the reason of building a balanced pay structure. This analysis is done in two steps:
Description: In this process, all the responsibilities and role of an employee which Virgin Media expects is mentioned. This section defines the expectation of the company from employee in future.
Specification: This section talks about the skills, experience and competencies that the company is looking for. It is necessary that the candidate should posses these qualities in order to apply for the job.
Factors determining the pay at Virgin Media:
Job experience: the job experience and knowledge is counted while hiring the new employee. If he holds a good experience and knows the job position then he is paid well. Outstanding experience might lead to extraordinary pay.
Awards and honours: the employees who have excelled in their field of work are generally honoured with awards at Virgin Media. It will further help in areas of job promotions which prove to be helpful in making a difference to salary.
Salary history: the salary the employee made at his previous jobs is a crucial factor in determining his future remuneration. At Virgin media, employee is paid higher than his previous job when he is recruited.
Educational achievements: the employees are well qualified at Virgin media. The degree they attained from the institutions matters. The one who holds master’s degree are paid higher than the ones who holds bachelor’s degree. (Mathis, Jackson, and Valentine, 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 organization.
Virgin Media offers an effective system of bonus that has a positive impact on employees and the management. The employees work hard to earn the bonus and incentives. The company considers the factors such as service offered to the customers, quality, and attendance, performance as an individual and in group as well.
Virgin Media possesses ways of monitoring the performance of its employees. The Virgin Media applies different approaches to monitor employees’ performance without making them anxious:
All organizations and its employees are co-dependent. The organization is responsible for the enhancement of its employees whereas the employees are responsible for being dedicated to the organization and make best out of circumstances to obtain the organizational goals. This assignment has helped in understanding the various aspects of HRM such as the difference between personnel and human resource management, job evaluation, job specification, recruitment, selection and termination procedures existing in the companies and the regulatory framework within which the organizations operate.
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