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Unit 22 Human Resources Planning Assignment
Diploma in Business
Unit Number and Title
Unit 22 Human Resources Planning
For the long-term success organizations are dependent on the significant role played by HRM because of competitive business environment and the need to survive the market competition. Organizations mostly rely on its capability of countering the rapidly changing business scenario that is both aggressive and unstable. With the emergence of modernization in business, one can see a tremendous change in the HRM approaches which has moved ways ahead of the traditional personnel management towards a can-do approach. Today, HRM is just not restricted to dealing with employees but has expanded in playing a key role in choosing the best potential employees through recruitment and selection, driving their personal and professional aims by aligning it with organisational goals.
Organizations can gain competitive advantage by endorsing the policies, processes and practicesof effective HRM thereby, producing committed workforce eventually making significant contributions in the overall business growth. This assignment will focus on understanding the importance of HRM in various aspect of work life through its numerous theories and practices.
One can describe HRM as a vital and systematic approachthat organizations adopt for managing its most valuable asset in the form of employees who are the key contributors either independently and collectively for attaining the business objectives. HRM is an organizational function mainly dealing with issues like recruitment, pay and performance management, employees’ safety, wellness, benefits, training and motivation, organizational development, communication and administration.(ITKnowledgePortal, 2016)For example, Coco Cola has conceived a cognitive terminology ‘Think globally, Act locally’further depicting its cross border management outlook thereby, building a new critical role for the HRM functions granting the brand the privilege of doing business with its subsidy markets. Furthermore, Coca Cola encourages its employees in participating and sharing their learning hence, has created and implemented a robust HRM function amid the employees at all levels and eventually succeeding in spreading its ideology at workplace.(Alsaif, 2015)
Personnel management, on the other hand can be described as to obtain, use and maintain a workforce, which is satisfied. Moreover, PM is a significant part of employee management and the employer-employee relationship. With PM’s role heightening over time, global car manufactures like Nissan Motors for example, are making the best use of it to build a key relationship with trade unions because the management understands the savings it can make by centralizing the employee related processes. It has also helped Nissan in unifying and upgrading its CSR activities and voluntary social care programs.(MSG, 2016)
Differences between HRM and PM:
Human Resource Management
Nature of relations
Leadership and Management
Contract of employment
The key focus of PM in small organizations is on every employee where preference is given on individual interest over team. The relation between management and employee is just contract based(MSG, 2016)
PM practiced in small organizations stress on transactional leadership
Small organizations practicing PM expects its employees to rigorously follow the employment contract which one set is never amended.
Focus of HRM exercised in MNC’s like Coca Colais on sharing a healthy working relationship amid the employer-employee and practically achieving its vision and mission that are goal-oriented. Both employer and employee take care of mutually fulfilling their interest and needs.
Power is decentralized in Coca Cola where management focuses on moving ahead with the employees thereby, considering them as business partners. Harrods encourages transformational leadership style at the workplace.(MSG, 2016)
Coca Cola does not emphasize on being rigid towards the employment contract, working hours and company policies and maintains a flexible approach.
With the emergence of modern day business HRM is not just limited to personnel administration anymore but rather is considered as a centralized and omnipresent management function eventually executed by specialized personnel. (CreativeHRM, 2016)
The process of valuing and employee development is known as HRM and comprises of recruitment and selection, employee engagement and communication for retaining them, leadership, training and development. The key objective of HRM is aligning employees’ personal and professional goals with that of Coca Cola. The HR department at Coca Cola emphasizes on proper planning where every employee can coordinate his/her career path with the fulfilment of organizational goals. For employees it is essential that they remain motivated for achieving higher business goals of Coca Cola hence, the HRM functions exercised at workplace focus on human resource planning to provide employees with more opportunities thereby, enabling them in getting promotions and growth. HRM functions within Coca Cola further determine its requirement of human resources and simultaneously identifying their training needs. (CreativeHRM, 2016) Through training Coca Cola can enhance the employees existing skills sets for meeting the organizational change thereby, managing its subsequent business goals. HRM functions ensure that being a global brand Coca Cola endorse various CSR programs, which should necessarily include lessening Coca Cola carbon imprintsfor benefitingEarth. HRM has driven Coca Cola encouraging and exercising green practices at its stores and warehouses, fostering a culture of social responsibility,celebrating successes and ultimately publicizing the activities amid the public.
Being an MNC, one expects Coca Cola’s HRM system to be robust, effective and efficient for successfully executing its functions discussed above. Moreover, Coca Cola’s HRM ensures that employees are motivated in giving their best performances. (Lokhandwala, 2016)
Roles and responsibilities of line managers are:
- Ensure that performance difficulties employees face are accordingly handledby working together with them for determining measures to be undertaken for improving performances.(HRSouthwales, 2016)
- To ensure that every employee at Coca Cola is aware and understands the consequences of not improving themselves and setting prudent and perceptible performance standards consisting of action plans, targets, standards, deadlines and support.
- Setting a feasible timeframe for employees’ self-improvement and regularly organizing progress review meetings.(HRSouthwales, 2016)
- Furnish fair support, supervision and employee encourage to drive them towards Coca Cola’s objectives.
Line managers have an integral role to play in Coca Cola’s HRM and their roles and responsibilities primarily revolve around employee engagement, performance appraisals, performance based pay and disciplining the employees. Since it is the line managers working closely with the employees they are aware of their plus and minus points thereby taking care of theirtraining and development and further acts as mediator amid the employer and employees and helping and managing them for achieving Coca Cola’s business objectives. Moreover, the roles and responsibilities played by line managers supports in smooth execution of HRM functions like recruitment and selection, appraisal, training and development, public relation, performance measurement etc. further ensuring that employee remain motivated, productive and competent.(HRSouthwales, 2016)
Legal and regulatory frameworks can be described as set of certain rules or guidelines imposed by the UK government which all organizations operating in the country are bound to adhere with. (Guest, Paauwe and Wright, 2012)
Positive and negative impact of legal and regulatory framework on HRM:
- Equal Wage: this act is followed at Coca Cola to ensure that all the employees in similar job roles and skills are equally paid without being gender biased. The positive impact of the act is it has allowed Coca Cola to emerge as the most preferred place to work for employees especially the females whereas being discriminative in paying equal wages, Coca Cola will invite legal penalties and decline of the brand’s market image, hence, impacting negatively.
- Minimum Wage: this act allows the employees to seek minimum wage from Coca Cola who understands the importance of adhering to it. Under the act, an employee above 21years is likely of getting £7.20/ hour while employees belonging to18-20 years should be paid £5.30/ hour. Coca Cola ensures that it employees are paid the minimum wage which makes them one of the best places which follows employment laws and seeks employee welfare at work hence, impacting positively whereas the negative impact can be Coca Cola might fail in establishing ethical work practices thereby, employees exploitation.(Guest, Paauwe and Wright, 2012)
- Data Protection: this act empowers the employees in knowing the information Coca Cola holds about them and ensure that the information held will never be mishandled and made public. The positive impact is that it restricts the HR department from exploiting employee information for Coca Cola’s benefits. In case, Coca Cola is found guilty of mishandling employeeinformation can face legal actions hence, impacting negatively. (Guest, Paauwe and Wright, 2012)
One can describe Human resource planning as a process in which the HR department of Coca Cola can efficiently plan its functions and the operationsin advance for averting emergency situations. Since past few decades HRP has emerged as an integral part of HRM practiced in organizations. Coca Cola through HRP can ensure that it always enjoys the perks of having the exact number of employees having appropriate skills. HRP allows Coca Cola to meet the demands and supply of workers in labour market. (Majumder, 2014)
Coca Cola through HRP can easily identify the current capabilities of the employees and the ones they need to possess i.e. gap analysis to attain the organisational goals and overcome the market competition. The key purposed behind Coca Cola using HRP is prediction of the number of employees it might in future for expanding its operations or improving the existing services. Moreover, HRP allows Coca Cola to evolve its understanding of the labour demands and supply .Much of Coca Cola’s global success can be credited to the effectiveness of its HRM functions where employees are promoted as the face of the business. Coca Cola emphasizes on HRP for acquiring personnel with functional skills, knowledge and experience to smoothly execute its everyday operations. Through HRP, Coca Cola keeps itself prepared tracking the number of employees reaching the retirement age and filing the positions immediately.(Majumder, 2014)
Coca Cola needs HRP while making business expansions and locating the areas where more than required number of employees are there and vice-versa.
Stages involved in the planning of human resource requirements:
- Assessing Human Resource: in this stage the HR Manager of Coca Cola determines the current manpower strength it owns across all its stores and which internal and external factors influence its business. This makes easier for the management to conduct a business SWOT.
- Demand Forecasting: HRP allows Coca Cola in identifying the demand and supply of labour market thereby, evaluating the exact number of employees the business will require in impending future and the resources of engaging the potential employees. It is important to effectively and clearly understand Coca Cola’s business strategy andfuture objectives for forecasting the labour demand in coordination with the organizational goals and planned business strategy.(AccountingManagement, 2016)
- Supply Forecasting: Coca Cola’s HR department identifies the labour supply by considering the internal and external supply of workers. Coca Cola avails the internal supply of workers either by transferring employees, promotions, job enrichment etc. while it can avail the external supply of workers from labour market and hiring.(AccountingManagement, 2016)
- Matching: Coca Cola’s HR Manager matches the demand and supply of labours. In case of surplus workforce, Coca Cola might take measures of removing them whereas in shortage, it would indulge in recruiting to fill the vacant positions.
- Action plan: finally, once the identification of surplus and shortage of human resources is done, HR Manager can implement adequate plans for resolving the problems.
One can describe recruitment as a process to find and hire the best and qualified applicants either from in-house or external resources for filing up a vacant job position in a manner that is timely and cost-effective. The process further comprises of evaluation of job needs, intriguing potential employees, applicants screening and selection, hiring and new employees integration within Coca Cola. The process of selection involves choosing of a suitable candidate from hundreds to fill the vacancy. (Mayhew, 2016)
- Process of recruitment and selection:
- Coca Cola’srecruitment and selection process: The process at Coca Cola is designed for being profound and far-reaching with an aim to provide the applicants with a great experience. The various stages of the hiring processallow in understanding the candidates and offer them with a scope to experience the practical working life at Coca Cola. The process is fair where transparency is maintained and applicants’ queries are promptly responded and are guided throughout. (Coca Cola, 2016)
- Coca Colanever asks the applicants to share their personal information or any payment for applying. The job advertisements on partner websites and job portals like MonsterUK, jobs.ac.uk, Fiverr etc. directly take the applicant to Coca Cola’s corporate website. In the first stage, applicants CV’sare screened and are allowed to complete the process through a form submission. Applicants applying for a sales job need to complete a Talent Screener questionnaire and the successful ones are requested to attend a telephonic or videointerview. The applicants who pass the round are forwarded to assessment centre where they participate in a group interview. An interview with the line manager is then organized for the shortlisted candidates who if chosen are informed through an email notification. (Coca Cola, 2016)
- Tesco’s recruitment and selection process: Screening of applications is the vital stage of Tesco’s selection process to ensure that shortlisted candidates fulfil the job requirements. The career section in Tesco’s corporate website has an additional tool naming 'job type match' making searching of jobs easier for the applicants. (BusinessCasestudies, 2016)
Applicants surpassing the screening round are invited to attend the any of Tesco’sassessment centre which provides flexibility in the selection process. The shortlisted applicants are grilled through various parameters like teamwork, problem solving etc. and the finally survives are requested to attend final discussion round with the HR and line manager and the job offer is made.(BusinessCasestudies, 2016)
One can observe that although there are similarities within Coca Cola’s and Tesco’s recruitment and selection process there are also certain variations. Coca Cola’s process is much more pertinent when compared to that of Tesco because it assess the abilities of applicants through online questionnaire and rejects those who fail the test thereby, saving much of time and in cost effective way.Moreover, through the online questionnaire Coca Cola can easily evaluate theapplicants’ personality traitsand recognize their attitudes, team spirit etc. ahead of moving forward to second phases. (Schatz, 2016)
In Tesco, the HR Manager conductsinterviews for understanding the abilities and personality traits of the applicants which means been involved physically. The HR Executives have to manually shortlist the bests from hundreds of applications they receive which are time consuming and painstaking. However, Tesco’s processof skill testing is more effective compared to Coca Cola because it puts the applicant in real time scenario in any of its stores for evaluating their problem solving skills, working under pressure, customer dealings etc. (Schatz, 2016)
One can describe motivation as forces that drive human behaviour and actions either as an individual or employee hence, Virgin Media should understand and identify the factors motivating them and fulfilling them efficiently for extracting desirable employee performances. Theorists have proposed various motivational theories for dealing with employee motivation. At Virgin Media, employees are kept motivated by keeping them engaged and firmly believes in rewarding thereby, offering its employees with competitive pays and reward schemes like ASPIRE field pay. Virgin Media pursues Mayo’s theory of human relations and hence, has introduced recognition programs like NPS Hero Championship scheme, SHOUT scheme and VOICE giving employees a platform for sharing their views and opinions. (Alegbejo, T.B., 2013)
Motivation at Tesco Plc is steered by Taylor’s scientific theoryand has introduced an Employee Reward Program which is in line with the theory. Although Tesco focuses on non-financial rewarding system, Taylor’ Scientific theory give a solid base to the management practices aimed towards employee motivation. Every year a survey known as Viewpoint is organized where the employees are encouraged for taking part and expressing views about their experiences at Tesco. Other than Taylor’s theory, utilization of Mayo’s human relation theory has empowered Tesco in cultivating communication between line managers and floor staffs through team meetings, 360 degree feedback and designing a PPD plan for them. (Alegbejo, T.B., 2013)
One can describe Job evaluation as a methodical process used for determining the relative worth of jobs with organizations like Virgin Media and Tesco. It further helps organizations in identifying an adequate pay structure and designing unbiased grades for managing the jobs and paying comparatively to the employees. (Bratton and Gold, 2012)
The process of Job Evaluation process within Virgin Media relies on the competitive remuneration packages offered by the competitors apart from its internal tall organisational structure. The lower level employees are given less compensation in comparison to the higher level employees. Non-analytical method is used by Virgin Media for jobs classification and ranking them according to their level and roles within the organisation.
Factors determining pay in Vrigin Media:
Organisation Size: size has an important role to pay in employees’ compensation because pay reduces if the company size is big as profits generated has to be distributed amongst more number of employees and vice-versa. However, for Virgin Media it is important to compensate proportionately to its competitors despite of itshuge size.(Bratton and Gold, 2012)
Level: Virgin Media follows the theory of Maslow hierarchy of needs for compensating the employees because of its hierarchical nature. The employees serving at lower levels are paid comparatively less for fulfilling their needs whereas employees at higher levels are paid according to their seniority and experiences
Skill and experience: Virgin Media is always in need ofemployees with specific skill set and experience hence, the newly recruited employees are paid based on prior packages which may vary when compared to the existing employee at similar position. (Bratton and Gold, 2012)
Profitability: Virgin Media distributes profits amongst employees based on its annual business performance thereby, their pay is determinedbased on the generation of profits
Employee performance: at Virgin Media, rewards are distributed based on employee performance further determining the employeespay structure.
Bratton and Gold has described reward system as blend of both intrinsic and extrinsic rewards organizations offer its employees apart from unified policies, administrative procedures and management practices in order to implement the system according to HR strategies and the organisational objectives (Legnerová, 2010)
- Extrinsic rewards: is usually the physical reward that Virgin Media distributes amid its employees and often an employee’s emotions are attached to an extrinsic reward because he/she values such rewards. This kind of reward is directly related to employees’ job performance. Pay, bonus, fringed benefitsfree life health and safety insurance, pension plan, employee discount scheme etc., promotion, profit sharing, improve working conditions are few examples. (BusinessTopia, 2016)
- Intrinsic rewards: are basically non-physical rewards which although cannot be touched but leaves an emotional impact on the employees and are also directly related to employees performance. Achievement, recognition, praise, work freedom are few examples.(BusinessTopia, 2016)
The rewards system been exercised in Virgin Media is a significant part of its HRM strategy further playing a key part in keeping the employees motivated. Virgin’s reward system focuses mainly on non-financial rewards referring to the fulfilment of employees needs and satisfying them with a sense of achievement, power of decision-making, team contributions and key role in driving the business towards desirable goals. Distribution of rewards within Virgin Media enhances employee motivation thereby, driving them to give their best performances. Reward system further empowers Virgin in retaining just not the employees but also the apprenticeships candidates by offering them a full-time position. Virgin’s reward system is highly effective in attracting young and dynamic talents to work with the global brand and gain lifetime experiences. (BusinessTopia, 2016)
Methods Virgin Media use to monitor employee performance are:
360° feedback: by using this tool Virgin Media empowers every employee in giving feedback about their colleagues and even superiors thereby giving employees more power and thus motivated. He/she can give feedback about team members, managers and subordinates which helps the management in monitoring employees’ performance.(Brown, 2010)
Personal Development plan: for monitoring the employee performance Virgin Media also encourages them to use PPD plan where the line managers set every employee’s objectivesand targets based on their skills and knowledge for a given timeframe. Once the time period expires, the achievements and growth are reviewed. This technique helps Virgin to maintain clarityamid employee and employer.(Brown, 2010)
Reasons for termination of Faisal’s employment contract with Chicken Master were his inadequate job performance. Bob had discovered that Faisal failed miserably in keeping the front of store and the kitchen clean and stocked which turned away many customers empty handed, staffs were not supervised, he used to take frequent time offs while work without notifying anybody. Faisal’s employment was also terminated because he lacked supervision skills despite of have 15 years of similar experience and would utilize much of business time in mailing his wife and assisting his daughter in her homework and would regularly watch pornography and violated the restaurant’s policy by taking away store’s equipments for personal use and even designing his own restaurant while at work. All these forced Bob to immediately terminate him
Other reasons are:
- Business Conditions: organizations might lay off employees because of adverse business conditions due to downfall of the economy. Employees might be permanently laid off or are often called back once the business improves.
- Absenteeism: employees who are indulged in regularly remaining absent from work are terminated if they failed to change despite of repetitive warnings
- Attitude and Behaviour: employees found guilty of practicing unacceptable behaviour at work either with their co-workers, vendors and customers are terminated after being warned. (Joseph, 2016)
Bob the owner of Chicken Master did not pursue any legal method while terminating Faisal from his employment despite of having valid reasons. Although, Bob had confronted him and has personally investigated, he failed to document them neither has informed Faisal about the decision in advance. He just terminated Faisal without following the employment exit procedures. (Ross, 2011)
Tesco’s employment exit procedures are regulated and more legal where everything is documented which works like evidences in case the employee file a legal suit against the company. During voluntary employee exit, the employee needs to submit an exit form citing the reason of exit with the last working day duly signed. The HR Manager then arranges for an exit interview where he/she tries in retaining the employee by offering benefits if that is the reason of exit, however, if the employee is adamant ofleaving, the form is passed and employee is informed to return office equipments, uniforms, documents etc. and a notification is send to the Accounts department for clearing the dues ahead of the last working day. (Ross, 2011)
To protect the employees from been exploited by the organizations legal and regulatory frameworks has been imposed so that employers cannot indulge into unfair or wrongful practices for terminating the employees.
- Wrongful Dismissal: Bob terminated Faisal’s employment without even notifying him in advance or even was not been compensated for the notice period. Hence, the dismissal process followed by Bob comes under wrongful dismissal. (Kahn, 2010)
- Unfair Dismissal: an employer needs to have fair reasons namely incapability, misconduct, illegality, planned retirement, redundancy for terminating employment. Furthermore, an employee should be warned ahead of terminating him/her. Bob only confronted and on investigated personally before terminating Faisal which he easily claimed unfair in court. (Kahn, 2010)
According to UK laws, Chicken Master is bound in giving job security and despite of being wrong Faisal claimed of being wrongfully and unfairly terminated since Bob had no written documentation or evidence against Faisal. In case Faisal allegation of been terminated because of gender discrimination proves, Chicken Master might face legal actions and will have to monetarily compensate Faisal.
Through this assignment various aspects of HRM and its role and importance in organizations success is discussed. HRM emphasizes on organizations structure and policies for establishing aneffective communication process thereby, reducing workplace conflicts and confusion. Employee motivation is the key consideration of HRM for identifying the psychological approach enhancing employee behaviour. Organisations focus on employee motivation for maximizing the business productivity. Job evaluation and pay structure is also HRM’s prime consideration for allowing the employees understanding their job roles and hence, letting the business management in keeping track of employeesprogress.