Unit 22 Human Resources Management Assignment Next Plc

Unit 22 Human Resources Management Assignment Next Plc

Introduction

For every organization be it small or an MNC, human resources are essential for areas that range from strategic planning to build the image of a company. One can considered HRM as a vital and comprehensible approach adopted by the management of an organization in order to manage the most valuable asset i.e. human resources who both collectively and independently make ample contributions in achieving the business objectives. The organizational functions of HRM mainly deals with employees related issues like pay, recruitment, performance management,  development and training , wellness and safety, employees motivation, administration etc. There are many organizations where the line managers play the functions of HRM.

The main purpose of HRM is to make the best use of available human resources in order to attain the two primary goals of an organization irrespective of its sector. The first goal is to make an effective use of employee expertise and abilities for successfully achieving the working objectives, which is an organization’s eventual aim. In addition, HRM also pursues in getting ensured that all employees are contended with the work atmosphere along with the allowances and other benefits they are provided with.

Task 1

1.1. Differentiate between personnel management and human resource management giving examples in two suitable organisations

Personnel management deals with managing of personnel within organization by planning, directing and controlling their requirements and the manner they contribute to various functional areas to achieve objectives of organization. Whereas, Human resource management is utilization of human resources to attain organizational objectives effectively that meets interest of both human resources and company. (Hendry, 2012)

The difference between personnel and human resource management is discussed with example of Deliveroo and Next Plc. At Deliveroo as it is a start-up company with limited investment and resources currently operates with personnel management. They are deliver agents that serve customers enjoy restaurant quality food at comfort of home. Whereas, Next Plc is multinational retailer of clothes, footwear and home decor products in UK. They follow HRM process to look at various functions and employee management.

1.2. Assess how human resource management functions help your chosen organisation in achieving its purpose

Human resource management functions assist Next Plc in achieving effectiveness of both managerial and operational activities by:

• Planning work process and labour: this HRM function identifies, assesses and plans management of labour according to work process, changing demands and future competency needs of Next Plc. Thus initially available competency is assessed with predicted goals and talent needs to plan supply and demand flow of labour.  (Buller and McEvoy, 2012)
• Acquiring labour: after available capacity of manpower and future requirement is analysed to find out skill shortage then it needs to be filled in by acquisition of labour which is another function of HRM. This is done through hiring where talent is matched with needs of position to acquire a potential match. Thus this helps in better fulfilment of roles and employee satisfaction in Next Plc, reducing employee turnover and saving production cost.
• Compensation: in Next plc, compensation of employees is designed by assessment of job description, skill needs and  labour market . Thus employees are offered a standardised remuneration packet which includes salary, incentives, performance related pay and other benefits like insurance, health etc which keep employee’s satisfied and competent to cope with industry changes. (Buller and McEvoy, 2012)
• Appraisal: growth opportunities, achievement and recognition is provided to employees in Next Plc to keep them motivated and oriented to their work. This also helps to meet employee’s aspirations with employer and they feel to walk extra mile to deliver excellent performances and achieve business aims of Next Plc.
• Training: at Next Plc existing talent resources are developed with another function of HRM i.e. training. Line managers identify strengths of individual employees and provide training arrangement to develop their weak areas to make them competitive to industry demand. Thus growth is offered to employees which is cost effective compared to acquisition of labour to meet futuristic purpose of company profitably.
• Labour Relations: at Next Plc, line managers coach employees working under them to make them understand and fulfil their works efficiently.  This not only builds teamwork, better cooperation but also improves labour relations through support and effective administration. Good relation with employees helps to maintain positive working environment and reduce conflicts so that their potentials can be utilised fully for constructive aims.  (Buller and McEvoy, 2012)

1.3. Evaluate the role and responsibilities of line managers in your organisation or familiar organisation and how it supports human resource management functions

Line managers are people concerned with implementation of process that supports achievement of functional activities.

They support functions of HRM by following below discussed roles and responsibilities in Next Plc: 

• Distribution of work and process management: at Next Plc, the line managers allocate work according to skills and capacities of individual employees. This helps in better fulfilment of expected performance levels and simultaneously uses resources to their full potential. Also, line managers help in facilitating process by micromanagement of employees to increase their involvement and contribution at work which helps to reduce concerns of workloads, employee dis-satisfaction, frustration etc to accomplish business aims of Next Plc.  (Weske, 2012)
• Employee Relation and support: at Next Plc, the line managers support teams under them to make them understand and process their roles in best possible manner to achieve better outputs. They also promote open communication, access to senior management and freedom to express concerns which helps employee’s engage with line managers thereby improving better relationships. Thus line managers contribute to dispose HRM policies, development of employees and better working practices.
• Training and performance management: at Next Plc the line manager’s work closely with respective teams so they are the concerned persons who can better evaluate their performances and assist HRM functions like designing of appraisals. HR managers also collect line manager’s review, feedback scores to design training programs that can increase competency of teams in specialised areas to better achieve business goals and future needs.  (Weske, 2012)

1.4. Analyse how legal and regulatory framework impact on human resource management

Legislative and regulatory framework helps to implement human resource management policies to provide employee welfare and protect interest of both company and employee in best manner.

The impact of legal framework can be analysed through effect on HRM functions of Next Plc, which are:

• Equality ACT 2010: under this employees working in Next Plc are entitled to receive equal amount of payment depending on nature of work and skill needed which cannot be discriminated on grounds of gender, nationality, race, religion etc. The payment structure has to be equal for all irrespectively to maintain diverse workforce. (Emerson, Nabatchi and Balogh, 2012)
• National Minimum Wage ACT 1998: under this ACT employees working in Next Plc are entitled to receive a minimum wage as framed under legislative policies in UK. However, remuneration of various roles is designed based on skill, complexity and labour market which are revised as per changes of employment laws. Further, employees in Next Plc are compensated additional rewards and benefits which are linked to performances.
• Employment ACT 2008: under this ACT employees working in Next Plc are given contractual agreements which include standard payment, benefits and performance linked pays that depend on skills and experience involved with job design. Also the contract mentions working conditions provided by Next Plc, work timing and structure of pay for overtimes or rotational shifts. In addition it mentions that employee cannot be dismissed or terminated unfairly without notice from employer. Thus this framework protects interest of employees and seeks their welfare. (Emerson, Nabatchi and Balogh, 2012)
• Disability Discrimination ACT 1995: under this ACT, impaired employees working in Next Plc are liable to be provided with working conditions that provide easy access for disabled such as washrooms, work stations, transport etc. Also Next Plc provides fair employment opportunities for all irrespective of disability so it encourages their participation whenever vacancies are announced to protect rights of disabled employable mass. (Emerson, Nabatchi and Balogh, 2012)

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Task 2

2.1 Analyse the reasons for human resource planning

Human resource planning is the process that maintains planning of activities within organization by identifying supply of labour and demand for production, availability of resources, estimated needs and future forecasts to achieve organizational purposes optimally. (Monk and Wagner, 2012)

• Analysis of internal human resource planning: In the case study organization, it can be analysed that there are problems of high employee turnover due to hiring of incompetent employees. Thus proper Human resource planning is needed because it will help to predict skill shortage by analysing the current need of labour and needs of business. So determining demand and supply will help to plan manpower requirement by acquisition of labour. Also assessment of skills with job function will help to acquire quality staff who can perform tasks with expected outcomes. Thus HR planning will help to identify estimated reasons behind employee turnover so that proper cost effective planning is made to provide synergy of work process.  (Monk and Wagner, 2012)
• Analysis of external human resource planning: In this case study organization it has been analysed that current recruitment and selection process requires to be changed as it is not effective to route competent and talented employees according to job role therefore leading to high employee turnover. The existing R&S needs to be redesigned to check technical know-how, personality as well as practical response to stimulated work exercises. These will help to assess and review quality knowledge, logical response dedication and aspiration of applicants in order to attract and acquire quality employees who can be retained for long term.  (Monk and Wagner, 2012)

2.2 Outline the stages involved in planning human resource requirements

In the case study organization major concerns are high employee turnover and current recruitment and selection process which are ineffective in hiring quality resources. Thus proper human resource planning has to be undertaken and the stages involved can be outlined as:

• Stage 1: the management of the organization in consultation with the HR department needs to first review the objectives of business and existing capacities. After this a draft needs to be documented that proposes current position and future need of staff to achieve established objectives and process activities. (Bratton and Gold, 2012)
• Stage 2: in this stage environment within the organization has to be scanned for identifying proper reasons behind increasing employee concerns to identify the loopholes for rectification. Hence, assessment of employee needs need to be considered in this step. 
• Stage 3: in this stage a proper market research needs to be initiated to design a plan that sets equilibrium of employee needs and supply of labour to meet the current demands of production in the organization.
• Stage 4: after the above assessments are made and reviewed a proper recruitment process has to be designed which is effective in hiring quality employees. For this current process needs to be redesigned where more structured format has to be added to attract competent resources.
• Stage 5: in this stage human resource requirement planning needs to be implemented to check results and identify the shortcomings.
• Stage 6: in final stage progress of planning needs to be measured under set quality parameters to monitor and control final outcomes. (Bratton and Gold, 2012)

2.3 Compare the current recruitment and selection process in the organisation with another organisation you recommending

2.4 Evaluate the effectiveness of the organisation recruitment and selection techniques with another organisation you recommending

The current R&S technique applied in case study organization is not appropriate to find out right employees for right job at right time. This is because the process is not structured and is very simple to identify the true potential of applicants. Also it misses sort listing of CV’s to find potential match according to preliminary information received. The candidates are called for telephonic interview and asked very basic questions that lacks proper format to identify true skills, experiences and useful information that can be related to person specification and job description for the vacancies. Further, the psychometric and aptitude test conducted to select final candidate lacks assessment criteria that can be used to identify quality of candidates. Thus the current R&S process needs to be redesigned to match competency of candidates with needs of job. (Stahl, Björkman, Farndale, Morris, Paauwe, Stiles, Trevor and Wright, 2012)

On the other hand, the R&S technique followed in Next Plc is more structured to determine competency, skill and logical ability to handle various work related problems and demands. The resume sorting process matches eligibility of candidates according to initial information received to fit in job requirements. Then preliminary interview followed by written test helps to decide on actual subject knowledge and technical abilities of candidates. Thus extra applications are eliminated in the first two steps of the process. The successful candidates are assessed further during simulation exercise followed by interview with line and project managers. This helps to filter only best and deserving candidates who fully justify the needs of job position. Finally the medical examination helps to test fitness of candidates before appointments and contract letter is handed to selected employees.  (Stahl, Björkman, Farndale, Morris, Paauwe, Stiles, Trevor and Wright, 2012)

Task 3

3.1 Assess the link between motivational theory and reward at Virgin Media or your chosen organisation

The term motive can be described as a notion precipitating an individual to act in a certain way. Moreover, motivation is a subjective process further making a person step ahead towards the goal. One cannot directly observe motivation like intelligence rather it can be understood only by observing the behaviour of a person. Desire and ambition mechanize motivation therefore, in the absence of these elements, motivation too is missing. Motivational theory is a concept describing the stimulation of resourceful behaviour within the employees. With rise in market competition and pressure of retaining the skilled employees more and more organizations are now keen in applying the motivational theories to keep the  employee relationship  motivated because of the fact that motivated employees are more dynamic at work further making the best use of available resources. (Deci and Ryan, 2012)
On the other hand, reward comprises of monetary provisions that are usually provided to the employees and might include cash pay or other broader benefits such as pensions, paid leaves etc. Employees in general get motivated in seeing a fat paycheck and doing a kind of work, which makes them satisfied. When an organization offers the employees with additional rewards, they tend to get motivated in walking extra miles for achieving the company’s business goals.

Link between motivational theory and reward in Virgin Media: Employees with increased concentration and motivation are likely to make fewer blunders at work thereby, resulting into minimum workplace conflicts, more sincerity towards the company and less absence from work. Lack of motivation further leaves a negative impact on employees efficiency and ultimately at the work quality. One can see that Virgin Media firmly believes in motivating and rewarding its employees. The management believes that its business is relatively dependent on the customers and employees thereby, encourage the employees in being unique in their work and maintain varied lifestyle outside work. Moreover, Virgin Media assists the employees in striking a balance amid personal and professional lives and rewards them through flexible working, free health benefits, discounted Gym memberships, paid holiday trips etc. At the end of every financial year, Virgin Media urges the employees to participate in an employee satisfaction survey allowing them to express their views on every aspect of their job. By taking feedbacks from the employees, the company ensures that the employees are satisfied with the measures undertaken by the HR department for keeping them motivated. (Deci and Ryan, 2012)
There is a very relationship amid reward system and motivation. An employee can get motivated from many ways and having an adequate reward structure is one of them. Fulfilment of intrinsic needs result into strong motivation within the employees. A person as an employee craves for the fulfilment of his/her psychological needs such as acceptance at workplace or in team, recognition and respect, encouragement from superiors etc. At Virgin Media, such needs are fulfilled through promotions, empowerment to make decisions, team contributions, job rotation, employee engagement etc. that eventually cultivates a strong link between the management and employees.

3.2 Evaluate the process of job evaluation and other factors determining pay at Virgin Media or your chosen organisation

One can describe Job evaluation as a methodical process adopted by the HR department in order to assess the relative value of all the jobs within an organization. For assessing a job’s value to the employer and providing an internal ranking, Virgin Media conducts a thorough analysis of tasks of each position and its responsibilities, expertise and skills needed. Job evaluation is the assessment of a certain position’s internal prospect and not the person holding the position.  Job evaluation, in addition also contribute in designing a job by further endowing the organizational situation and job’s value to the process of recruitment and promotion by furnishing job analysis on the competencies and skills that are needed for meeting the requirements of a job. (Armstrong and Taylor, 2014)

Job analysis is the starting point of job evaluation and any job cannot be assessed unless it is analysed. By analysing a job, one can determine the duties and responsibilities, job’s nature and accordingly decide on qualifications, skills and knowledge needed for performing a certain job. Job analysis is helpful in analyzing which tasks are important and how to carry them.

Job evaluation process concentrates on certain factors that are simultaneously considered while determining pay in Virgin Media. The factors are:

• Accountable for results: it describes the corresponding business activities role in producing the products or services Virgin Media offers to its customer. Furthermore, it also defines how dependent a certain business activity is on revenue generation for the company in the markets it operates.
• Ability in solving problems: it describes the capabilities in detail an employee who will be assigned with a certain position need to posses. At Virgin Media, the ability of resolving business related problems at work further specifies the importance of an employee in the workplace, which allows the management in designing an appropriate pay structure.
• Technical knowledge: a job position’s need of technical knowledge construes the skills and expertise an employee must have for efficiently carrying out any task. Moreover, with the help of this factor the HR department can easily determine an apt pay for every employee. (Armstrong and Taylor, 2014)
• Management knowledge: it specifies the management knowledge an employee needs to posses for executing a given task further allowing the management in identifying a suitable pay for the employee designated with the corresponding role and responsibilities.
• Legislation: Virgin Media’s pay structure is regulated with the minimum wage structure laid by UK government and salary provided to the employees is comparatively higher than its competitors in the market.  (Armstrong and Taylor, 2014)
• Cost Of Living: pay structure at Virgin Media is also determined by the inflation rate where the management identifies the normal prices of the products and services it offers in UK market. At present, the inflation rate in UK has declined from 0.5 % to 0.3%.
• Growth rate: Virgin Media’s growth rate is high because of its merger with NTL, Telewest and Virgin Mobile for reaching more number of urban and provincial customers. Communication demand has increased resulted from approximately 90% rise in use of internet services further making the industry competitive
• Company Policies: Virgin Media’s policy is providing more opportunities of employment while subsequently satisfying the customers. For achieving so, the management has designed a unique pay structure, which is comparatively higher than its competitors are.  

One can see a close relation amid job evaluation and pay although the strategy of payment might differ from company to company across the globe. At Virgin Media because of its large size, job evaluation is one of various criteria’s that have been embraced for determining pay. Based on the case study of Virgin Media, three methods of job evaluation are practiced namely ordering, classification and point method. The ordering method commonly known as ranking method ranks every position available within the company, from highest to lowest. The best example of the ranking method is the hierarchy of an organizational chart. Ranking method is difficult in establishing and maintaining in large sized companies with multiple layers in hierarchy. (Armstrong and Taylor, 2014)

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

One can describe reward system as an approach that is both planned and structured of rewarding one or more persons for acting in a desirable way and achieving an expected outcome. With rise in business competition more number of organizations is looking ahead in improving the products/services quality while lessening costs. Hence, as companies are in need of getting more output from the employees, employees too are looking to get more benefit from the companies. Reward system is a key method of keeping the employees motivated in rapidly changing work habits and key behaviours that eventually benefits the business. (Rummler and Brache, 2012)

Effectiveness of the reward system at Virgin Media:

• Attracting Talent: the company has introduced various choices of employment opportunities such as apprenticeships, internships and full time and part time jobs, freelancing etc. in order to attract the talents. In addition, Virgin Media provides a wide range of facilities to the people working for them such as medical assurance, child care plans, loan at 0% interest rate for purchasing a home or car. All these added advantages also are helpful in attracting the talents.
• Motivation: benefits provided to the employees by Virgin Media aims in fulfilling both personal and professional needs thereby, cultivating a feeling of satisfaction amid the employees further allowing them to focus on work. The added benefits provided to the employees are helpful in motivating them in giving their 100% best performance at work while also being there for the family. (Rummler and Brache, 2012)
• Retention: Virgin Media focuses on employees’ retention for lowering the attrition rate thereby improving the brand’s image in the UK’s labour market. Students who get associated with the company through Apprenticeship programs are further given opportunities of fulltime jobs on successful completion of the program. It reduces the cost involved in recruitment and training.

3.4 Examine the methods Virgin Media or your chosen organisation use to monitor employee performance

Performance management can be described as a methodical process in which the employees of an organization are involved either as an individual or as a group member for developing its effectiveness in achieving of the predefined goals and missions. Performance management covers work planning and setting expectations, constant performance monitoring, evolving employees performing capacity, annual performance rating and rewarding. (Gomez-Mejia, Berrone and Franco-Santos, 2014)

Methods used in Virgin Media for monitoring employees performances:

• Performance Appraisals: Virgin Media practices the technique of 360 degree feedback where employees are allowed to rate the performance of their co-workers on the parameters of punctuality, positive approach, efficiency in teamwork etc. The points are then calculated and the average scores are considered. At the end of the financial year, the HR department calculates the points for giving their feedbacks to the employees and making appraisals. In this technique all employees participate in rating their colleagues however, the rating process can be influenced by a particular employee’s popularity or bad professional relations.
• Management by objective: this method of evaluation is practiced at Virgin Media by further setting targets for the department and individually for every team and the employees involved. The set targets are then matched with the actual and desired performances, flaws are recorded and shared with the team members. MBO is systematic and scientific approach where Virgin Media’s objectives are coordinated with the targets. (Gomez-Mejia, Berrone and Franco-Santos, 2014)

Task 4

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

Cessation of employees involves different methods by which a company can terminate an employee’s employment contract. Key reasons behind employees’ cessation mainly are inability of getting promoted, poor performance, job redundancy and misconduct. (Bardoel, Pettit, De Cieri and McMillan, 2014) According to the case study of Chicken Master, Bob the owner has hired 54-year-old Faisal by getting impressed by his 15 years of experience as a restaurant management but soon he turned out to be a bad judgement. Despite of been experienced Faisal never kept the front of store and the kitchen clean and stocked and never supervised the restaurant staffs. Bob noticed that he regularly took time off for personal reasons, watch pornography on the computer, email his wife, helping his daughter with homework and even designing his own restaurant. He would also take restaurant’s equipment for personal use that was against the policy mentioned in the employee handbook which he was aware of. Hence, Bob had to terminate Faisal for his poor performance and unacceptable behaviour at work.  (Bardoel, Pettit, De Cieri and McMillan, 2014)

Other reasons of cessation of employment:

• Business Conditions: In case an organization is going through a financial crunch or adverse business situations, it may be forced in serving pink slip to a large number of its employees for overcoming the poor performance of the business. However, the layoff might be permanent and the employees can be called back once the condition of the business improves.
• Absenteeism: employees who remain absent at work frequently or have a habit of reporting late at work leaves a negative impact on the productivity of the company further overburdening the other. Continuance in violation of attendance policies despite of remainders can move towards termination. (Bardoel, Pettit, De Cieri and McMillan, 2014)

4.2 Describe the employment exit procedures used by The Chicken Master and another organisation of your choice

The employment exit procedure the Chicken Master is conducted by the owner of the restaurant Bob. He ensures that the exit procedure is smoothly executed and easy for the employee to understand. Bob makes sure that the employee is made aware in advance in case of termination so that he/she can look out for another job while if an employee wishes to resign Bob tries to understand the reason behind the decision. Chicken Master ensures that fair methods are used in the entire process and the employee needs to fulfil an exit form. Once the process is over, a notice period of two weeks is mandatory to serve but in case an employee refuses to serve the period, 25% of pay is deducted. On the last day at work the employee is offered an experience certificate and a thanking letter. (Si and Li, 2012)

At Citigroup, employment exit procedure has a systematic approach where in the first stage the HR Manager aims in retaining the employee if he/she is valuable for the company. However, if the employee is determined to resign then a feedback form is provided where they mention the reason behind resignation and details of their experience with Citigroup during their tenure. After the form is submitted in the HR department, the employee is briefed about the notice period of a month and the line manager is informed so that he understand all the projects he/she handled and take over all official documents. The accounts department is also notified and on the end of the notice period, the salary is cleared and closed. The HR Manager offers the employee with references for future endeavours and a memento as a parting gift. (Si and Li, 2012)

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 impact of legal and regulatory framework on the arrangements of employment cessation is very high with respect to the Chicken Master. The UK government has enforced employment laws to safeguard the employees rights and ensuring that companies do not practice any sort of unfair practice while cessation of employment. The legal and regulatory framework protects an employee form being unreasonably terminated on the grounds of discrimination, retaliation etc. Moreover, the legal and regulatory framework prohibits the restaurant from getting involved in any unfair practices while terminating any employee. Hence, when Bob found that Faisal was constantly violating the company policies and was indulged into unacceptable behaviour at work, he gathered enough evidences against Faisal to prove that the decision to terminate him was not unreasonable when Faisal dragged Bob to the employment tribunal with a false claim that he was a victim of age and race discrimination. The panel will cross check all the evidences submitted by both the parties and if Chicken Master is found guilty then Bob will have pay the penalties imposed by the tribunal. On the other if Faisal’s claims turn out to be untrue he might lose the chance of getting back at work and might also negatively affect his future. (Jennings, 2014)

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Conclusion

Finally, we can conclude by say that every organization for gaining success in the long-term period must efficiently manage its most valuable asset know as human resources. In order to do so, organizations must implement an effective HRM system which will also help them in smoothly governing the internal processes. In this report an evaluation of the HRM process has been done by considering the example of Next Plc allowing having a broader insight into the implications of HRM into an organisation’s business model.

References

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