Unit 22 Practical Issues in HRM Assignment

Unit 22 Practical Issues in HRM Assignment

Introduction

The promptly revolutionizing scene of business has lead to various challenges in human resources, which is assumed to increase in the years to come. Hence, it is essential that the HR departments add real business value to the organization. Most the companies around the globe have recognized the importance of HRM for retaining the employees. HRM can be helpful in employee retention by emphasizing on events like training and engagement or by making investment into areas like integrated systems of technology, schemes for improving candidate attraction which eventually will help in optimizing the expense

It is proven fact that any organization irrespective of its sector can never build a good professional team in the absence of good  human resources . HRM’s primary functions in general revolve around recruitment, employee training, performance appraisals, employee motivation along with establishing effective communication, workplace safety etc.

Task 1

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

Human resource management means management of resources i.e. people within an organization in a macro perspective. In other words it means managing the collective relationship between the management and the employees by focusing on objectives and outcomes of HR function. This HR function is concerned with employee empowerment, development and fulfilling employee relationships. Whereas, The British Institute of Personnel management defines that personnel management is a management function that aims to focus on the well-being, development of manpower that constitute an enterprise to enable them give their best contribution for its success. In the process it also works in maintaining their relationship with the enterprise. 

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

Harrods as a company has the objective of having higher sales figure, rise in revenue generation, increase in market share and expanding its business in the global platform. For the fulfilment of these objectives, it is important that the objectives are reachable, demanding and executable. Efficient handling of human resources is essential for growing the output which eventually is needed for achieving the objectives. (Armstrong and Taylor, 2014)

At Harrods more emphasis is given on the employee training function of HRM which is been imparted to employees at every level. Employee training at Harrods is highly structured and is initially provided to end level workers who are made aware of the very basic way of working together as a team. The training at times is on-the- Job and is broadly vocational. In the initial stage of the training, employees are oriented about the functions, rules and policies of Harrods. The staffs that are already trained and ready for promotion are provided training for managerial roles. In the management development training, primarily technical and management skills are imparted to employees. (Armstrong and Taylor, 2014)

Harrods has tied up with professional trainers for training the front line crewmembers. Apart from training the crewmembers, the managers are trained once in a year for enhancing their knowledge and leadership skills. They are trained about how to set a goal and build a team, development of employee etc. Harrods also focuses on satisfying the employees with rewards, recognition and other perks like lunch discount coupons, health insurances, annual bonus etc. for motivating and boosting their morale. Customer satisfaction is the ultimate objective of Harrods and hence, its HRM focuses on training and developing the employees for keeping them updated with the ever change concept of serving customers and preparing them to satisfy the customers with exemplary services during their shopping. At Harrods, attention is given to the preferences of every customer and one can easily see that the HRM implemented has been helpful in the key objective of achieving customer satisfaction. (Armstrong and Taylor, 2014)

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

The kind of leadership role played by line managers at Harrods is imperative in nature. Despite of exhibiting a calm attitude and conforming a workplace atmosphere that is flexible, the only objective in their mind is customer satisfaction. It has been observed that the line managers in Harrods act as a link amid the HRM and employees and are responsible for conveying the employee’s issues to the HR Manager. Playing the role of line manager, they ensure that every employee is aware of the consequences and see that the job allocated is accomplished within the stipulated timeframe and no comprise is made on quality. Identifying the areas of problems affecting the employees’ productivity is also an essential role played by the line managers. Out of the various roles played by the line managers, there are many which support the HRM functions. (Anantatmula, 2010)

• Employee Engagement: line manager supports the HR department by allocating jobs amongst the employees and keeping them engaged with the various tools of employee engagement. Moreover, they also encourage the employees through establishing open communication
• Performance Appraisal: other than allocation of tasks, Harrods line managers are responsible for evaluating employees’ performances and report it to the HR department which further helps them at annual appraisals.
• Disciplining Employees: the line managers help the HR department by cultivating disciplinary culture at workplace for controlling the employees effectively. The employee’s governance of rules and policies designed by the HRM is monitored by the line manager. (Anantatmula, 2010)

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

The enforcement of legal and regulatory framework is helpful in maintaining equality amid employees and elimination of discriminative practices at work. This restores employee satisfaction at work further binding the HR department to value the employees. (Jackson and Seo, 2010)

Impact of legal and regulatory framework on HRM

• Equal Wage: Harrods pursues the Equal Wage Act for assuring that equal wage is paid to the employees in similar job roles and skills irrespective of their gender. They can face legal penalties if found of being discriminative in paying equal wages and thereby, it is the prime accountability of the HR department to ensure wage equality. (Jackson and Seo, 2010) The impact on employees working at Harrods is that they get equality of opportunities which is based on merit and is not discriminative in approach which helps to motivate and retain talented workforce. The impact on Harrods itself is that this legislative framework has helped it maintain goodwill image and commitment among the employees and being a fair employer to them. Whereas, the impact on society is the positive influence for practising Equal Wage Act at Harrods which helps to maintain its reputation and positive brand identity. 
• Minimum Wage Act: according to this act, every employee has the right to get minimum wage for the job done and it is equally important that Harrods adhere to this act. Under this act, employees across UK are eligible of being paid with the minimal wage which means that an employee above the age of 21 is likely to get £7.20 for every hour whereas employees coming in the age group of 18-20 years are likely to be paid £5.30 per working hour. The impact on employee of Harrods is that their well being is seen by the employer and they are fairly compensated for their contribution which helps to make them work at best for Harrods success. The impact for Harrods being it maintains good working policies, conditions practising legal framework making it maintain fairness and equality. Whereas, impact on society is the goodwill of Harrods being a fair employer.
• Data Protection Act: under this act, an employee has the right to know the information Harrods holds about them and simultaneously provides a structure ensuring that the information is neither made public and mishandled. The act restricts the HR department from using employee information for company’s benefits. (Jackson and Seo, 2010) The impact on employees of Harrods is that as their privacy is maintained it helps to make them feel secured and satisfied. For Harrods it means being responsible to their employees for maintaining information privacy and giving them a secured environment to work. For society the impact is the trust gained. 

Thus it can be concluded that maintaining legal framework helps organizations including Harrods maintain HRM functions of considering employee empowerment, development and maintaining relationships by providing equality of development opportunities, fair working environment, supportive and secured culture that helps to nourish well being of employees making them more contributed towards their objectives and outcomes.

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Task 2

2.1 Analyzing the reasons for human resource planning

Human Resource Planning is a systematic analysis of the need of manpower with suitable skills and expertise so that the set objectives of the organization are fulfilled. Thus it is an integral part of organization and ensures its success by linking HR planning to  business strategy  and operations. There are various reasons for human resource planning which can be classified as internal and external.

Internal reasons for Harrods

• Human resource planning is required at Harrods to ensure the availability of manpower in future to continue smooth running of organization. It assures that suitable number and specific skilled personnel are available to fulfil the activities and purposes of Harrods.
• HR planning is required for recruitment of skilled manpower at Harrods. This helps to determine the organizational need, assess the manpower inventory and then finally recruit the capable personnel to perform the job.  (DeCenzo, Robbins and Verhulst, 2010)
• HR planning at Harrods identifies the skill requirement of employees to perform various levels of jobs and then designs training and development programs to enhance their capability so that tasks are performed more effectively and efficiently.
• HR planning at Harrods ensures optimum utilization of manpower so that their capabilities are utilised efficiently to achieve panned outcomes. Thus this helps to reduce the overall cost of operations.   

External reasons for Harrods

• HR planning at Harrods help to cope with changes in external environment i.e. it measures the current HR inventory and then plans to empower them to changing needs of technology, political, socio-cultural and economic forces.
• HR planning at Harrods also helps to reduce impact of uncertainty i.e. impact of sudden changes in environment, management of manpower such as turnover, cessation, conflicts etc. (DeCenzo, Robbins and Verhulst, 2010)

Hence, both internal and external reasons for HR planning at Harrods is significant as it helps to match the skills and expertise of personnel with the specific necessities of activities so that desired outcomes can be achieved more efficiently and effectively. Thus it ensures smooth flow of operational activities by analysing the HR inventory and then planning for further skill development if required. So, proper utilization of resources can be carried out with suitable planning to cope with uncertainties and changes within external environment, so that long term sustainability of Harrods can be ensured.   

2.2 Outlining the stages involved in planning human resource requirements

Stages involved in the planning of human resource requirements:

• Assessing Human Resource: in the very first stage of HRP, Harrods manager identifies the exact number of employees it currently owns along with the internal and external factors leaving an effect on it. This makes further easy for the management to determine its strengths and weakness apart from identifying the opportunities and threats. (Armstrong, 2010)
• Demand Forecasting: with the help of HRP Harrods can determine the demand and supply of human resources in the labour market and in analyzing the exact number of employees it would need in future and the sources through the HR Manager can recruit the new employees. Hence, it is very important that the business strategy and Harrods future objectives are effectively and clearly understood then the demand forecast can be done in a way which can align the organizational goals and contributes to the planned business strategy.
• Supply Forecasting: the HR department determines the supply side of human resources by taking into consideration both internal and external supply. The internal supply of human resources can be availed through employee transfers and their promotions, retirement of employees, job enrichment etc. whereas the external supply of human resources can be availed from labour market and recruitment. (Armstrong, 2010)
• Matching: in this stage, the demand and supply of human resources is matched. In case of surplus number of human resources Harrods might remove them and if there is shortage, the HR department would hire new employees for filling in the gap.
• Action plan: in the final stage of HRP once the surplus and shortage of human resources has been identified, the HR department of Harrods can implement adequate plans for resolving the problems. (Armstrong, 2010)

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

For answering this question the recruitment and selection of Harrods is compared with that of Tesco.

Recruitment and selection of Tesco: In Tesco, screening of candidates is a very important stage in the process of selection further ensuring that the candidates chosen for interview meet the requirements of the job. In the screening’s initial stage, the HR executives thoroughly scan all the applications received and shortlist the ones that fulfils the job requirements. Tesco in its corporate site has added a tool naming it 'job type match'in the career section which makes it easier for the potential employees to look in for the vacancies matching their skills and qualifications ahead of applying. (Keep and James, 2010)

Selection of external management candidates in Tesco involves several stages

The candidates who pass the screening round are then scheduled for attending the assessment centre in any of Tesco’s stores organized by the manager. Assessment process helps in providing consistency in the selection process. The selected candidates are made to face multiple exercises such as activities of teamwork, problem solving drills etc. The applicants who survive the assessment round are finally called for a face to face interview with the HR Manager and the line manager. The chosen candidate is then offered the job. (Keep and James, 2010)

Recruitment and selection ofHarrods: The candidates register in the corporate website and submit their applications in the online recruitment system of Harrods. The HR executive then scans and shortlists the eligible applications who have to undertake a short telephonic interview before they are invited for face-to-face interview and assessment centre process. The interview is conducted by the HOD and a minimum of 2 candidates are selected and informed to the HR Manager. The HR Manager then calls for a final interaction where the employment terms and conditions and pay is discussed and the candidate who agrees first is given the offer letter. In the assessment centre, candidates are provided with opportunities of demonstrating their strengths aligning the culture, beliefs and working style. In case Harrods opts for internal recruitment, the appraisal form is implemented for informing the selection process. The employees who are selected for the appraisal are finally provided with an adequate training. (Keep and James, 2010)

2.4 Evaluating how effectiveness is the organization recruitment and selection techniques with another organization you recommending

The recruitment and selection process that is followed by Tesco is mostly external in nature which means hiring is done by searching and then interviewing the external pool of applicants. Whereas, in case of Harrods recruitment is made from internal resources which means that the current HR inventory is promoted to fill upcoming vacancies. The process of internal recruitment at Harrods has its own natural advantages compared to external recruitment being done at Tesco because when employees are promoted from within the existing HR inventory then many stages of screening followed at R& S process gets eliminated. (Lin, 2010) Secondly, the internal recruits are familiar with Harrods business model, culture and process so no additional time or orientation is needed before they assume the new position. Hence, internal recruits can easily and faster contribute to their specified new roles without wasting time and cost on training, understanding formalities etc. Thirdly, internal recruitment serves as strong motivation for employees as they get opportunity of carrier advancement from promotions.  So, it is beneficial both for Harrods and its HR inventory.

In contrast, the external recruitment process at Tesco helps to maintain a complete new flow of ideas when external prospects are hired. This on one hand bring freshness of creativity and diversity as external recruits may have new information or methodologies that can be put into use for Tesco’s best practise which is always not possible in case of internal recruitment. Further, external recruitment at Tesco eliminates the problems that may arise by promoting within diverse workplace and groups thereby bringing more team stability. (Lin, 2010)

Task 3

3.1 Assess the link between motivational theory and reward at Virgin Media

Virgin Media is UK’s first provider of broadband, TV, fixed and mobile phone and home phone services. They have company headquarter at Hook, Hampshire. They are a leading communication provider who is interested not only in digital technology but also work for the cause to improve lives and prospects with use of digital invention. At present they are part of Liberty Global Plc, the world’s largest international cable company providing services to 24 million customers across fourteen countries. 

It has been observed that Virgin Media is in urgent need of certain changes for its overall growth and development and for this the  employee relationship  needs to ensure that the changes are implemented in the work process. An improved and effective performance of employees ensures that the kind of changes Virgin media desires to bring in is successfully implemented. For escalating employee’s performances it is important that they are constantly motivated and in order to uplift the employees morale Virgin media needs to adopt different motivational theory. (Pearsall, Christian and Ellis, 2010)

Maslow‘s theory of motivation states that every individual has a certain set of needs and requirements and for fulfilling those needs and requirements they work as employees in an organization. Hence, it is important that Virgin media as an organization focuses on fulfilling the factors that eventually will satisfy the employees’ needs. It is a proven fact that as soon an employee’s one need is fulfilled, he/she will feel motivated in achieving the other needs. Implementation of this kind of motivation will ensure that employees work hard in attaining Virgin Media’s objective and targeted objectives. (Pearsall, Christian and Ellis, 2010)

Herzberg’s Theory on other hand classifies factors into two i.e. Motivators and Hygiene factors. Factors such as achievement, advancement, recognition and responsibility help to motivate employees at Virgin Media during any period of change when the management explains the benefits and outcomes. These motivators act as intrinsic rewards which are intangible in nature and inspire employee’s quest for development, empowerment and growth. On the other hand, hygiene factors such as salary, policies, working condition etc helps to provide employee satisfaction at work and has no contribution on motivation. These factors can be considered as extrinsic rewards.

On the other hand, rewards are helpful in ensuring that employees are motivated in working hard and that the organization can easily achieve success in the market.

The data above depicts the percentage of companies in marketing using rewards as a tool for motivating employees to work more effectively.

3.2 Evaluate the process of job evaluation and other factors determining pay at Virgin Media

Job evaluation is a step wise process which consists of:

• Job Analysis: in this step information about the different aspects of job is obtained through two dimensions namely job description and job specification. In job description information about roles and responsibilities, duties associated with job, working conditions etc are outlined whereas in job specification information about skills, knowledge and abilities required to perform the job is outlined.
• Job Evaluation Program: in this step the relative worth of job is evaluated and then determined by examining the job description and specification. Some of the methods used are ranking, point rating factor comparison relative to industry and market.
• Wage Survey: in this step a pay structure i.e. reward, compensation and benefits is allocated to job after determining its worth as per rating arrangements.
• Employee Classification: in this final step of job evaluation categorization of jobs are done as per their pay structure and value like entry level employees, mid management employees etc. This helps to outline hierarchy within organization. (Münstermann, Eckhardt and Weitzel, 2010)

The other factors that determine pay are:

• Demand and supply: the condition of labour market or the demand and supply forces determine the pay structure i.e. when the demand for a specific skilled employee is higher and relative supply is lower then payment offered is higher comparative to when the supply is higher to demand ratio.
• Market Rate: the standard compensation that is paid according to the job within an industry determines the base level for fixing pay for employees. If low rates are offered then it is difficult to retain good employees for long period.
• Cost of Living: the standard cost of living or price index in a place determines the pay. Example when price index is higher then purchase capacity of employees decreases as a result they demand pay hike. And if price index is stable then pay hikes are not required.
• Government Regulations: to empower the bargaining capacity of employee’s government in some place may frame legislations that fix pays as per defined conditions. This provides standard pay structure and level of living.

In case of Virgin Media, use of Job Evaluation helps to determine pay structure of job by analysing the complexity of responsibility involved in contribution made for outcomes achieved and the relative value involved in terms of productivity. Also, factors such as demand and supply are useful for Virgin Media to determine the pay as per changes in labour market conditions. More experienced employees with quality of education and skills are offered better pays so that their information and methodologies can be used for more improved outcomes. Further, market rates, cost of living and minimum wages Act are followed by Virgin Media to determine pay so that quality, skilled and competent workforce is maintained who can cope with changes in environment and industry demands. 

3.3 Assess in different contexts how effective is the reward systems at Virgin Media

At Virgin Media focus is always being given in creating employee engagement and motivating them with rewards, bonus schemes and competitive salaries. Example, ASPIRE which is a bonus reward scheme where every employee who scores 9 or 10 Net Promoter Score (NPS) is given a bonus of £ 10. In addition to these employees are also provided benefits such as private health care, insurance, pension schemes, staff saving schemes etc. These rewards and benefits act as motivating factors. Also, career progression is another factor at Virgin Media that helps to attract, motivate and retain employees. Example, Benjamin who joined in 2011 as apprentice at Virgin Media was promoted to service technician and then network engineer within 18 months. This progression in career helps to support employee’s ambitions and is a motivating factor for them to continue with Virgin Media.

Virgin Media not only uses extrinsic reward but also uses intrinsic rewards like recognition to motivate employees. Example, NPS Hero Championship is a scheme where personalised congratulation letters are provided to employees who score perfect 10. Secondly, Virgin Media’s online peer to peer recognition scheme, SHOUT is a platform where individuals involved can be thanked for appreciating and contributing to companies value making them turn into reality. Another forum VOICE is a platform where Virgin Media empowers employee engagement. Thus all these tools help to motivate employees at Virgin Media as they feel worthy, participated and involved with company where measures are taken to create an environment and culture that makes everyone feel heard.

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

Virgin Media has adopted a set of process for monitoring employee performances and ensuring that the tools used are helpful in evaluating the performances and simultaneously recognizing the star performer in workplace. An employee’s performance can be monitored by reviewing their performance on a weekly basis, manager can monitor the employees by frequently visiting their desks, evaluation and review of the work done report made on an employee’s performance can be monitored. Apart from these, employee performance can also be monitored by conducting a face-to-face discussion with the employees. (De Jong and Elfring, 2010)

Methods used for monitoring employee performance in Virgin Media

• Holding a morning roll call: the line manager conducts a morning brief where employees share their small wins and problems in work or any other related information for others to know. This kind of meetings proves to be beneficial for Virgin in generating organization and responsibility sharing amid team members. When employees commit in finishing a project in a given timeframe, then they are more likely to fulfil the commitment.
• 360-degree assessment: in this kind of method, an employees’ formal evaluation is done through various sources like co-workers, manager and subordinates. With the help of this tool the HR Manager of Virgin openly discusses the outcome with every employee so that they learn where they need to improve, if any. (De Jong and Elfring, 2010)

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

In Chicken Master, number of reasons is observed ahead of an employee’s termination for keeping itself in a strong and safe position with a valid reason behind terminating any staff. Under UK governance and employee laws, an organization can face legal actions if found guilty of unreasoningly terminating an employee. The key reasons behind Faisal’s termination where his constant violation of the restaurant’s policies. The owner Bob Jones found that Faisal’s performance was very poor despite of having 15 years of experience. Bob found that Faisal failed in keeping the store and kitchen clean and stocked, employee supervision. Moreover, Faisal would take the store’s equipment for personal use and watching pornography on his computer which was against the restaurant’s policies. In spite of Bob coaching Faisal, no improvements were seen finally leading to his termination on the grounds of unethical behaviour. (Arnow-Richman, 2010)

Other reasons for cessation of employment

• Resignation: a number of reasons are involved behind the resignation or self- termination of an employee. It might be that he/she is not happy with the current job or have grabbed a better opportunity somewhere, might be relocation or any personal reason.
• Redundancy: an organization might make employees redundant in case of going through a financial crunch, a lack of work or no longer need of a particular job
• Merger or take-over: one can usually see a change in the organizational structure might affect employment.

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

In case of Chicken Master, Faisal has been dismissed by his employer. The general dismissal procedure is:

• In order to ensure that a dismissal is fair an employer must carry out detailed investigation for the allegations and must inform the employee about the nature of allegations further stating that dismissal would be possible outcome of disciplinary process.
• The employee should be provided with an opportunity to be heard and should have the option to get support from his counsel during the hearing.
• The employee should be warned to stop misconduct or improve poor performance through oral warning, formal written warning and then final written warning. Also, in appropriate cases, assistance should be provided to employees.
• Before dismissal, the employee should be stated the reason for such decision by the employer and on request the employer must provide a written statement for the same within 14 days.
• Finally, the dismissal should be given in writing.

As Bob has not followed the general guidelines for dismissal process, so Faisal filed a case in Tribunal against The Chicken Master on the discrimination charges.

Tesco’s employment exit procedure: An employee wanting to quit his/her job must first fill up a form and submit a resignation letter to the HR Manager who tries to know the reason behind resignation and if the employee is skilled tries to retain him/her by offering a hike in pay or facilities. But if the employee has made up his/her mind then must attend an exit interview with line and HR manager. Then Tesco provides an experience and reference letters for the employee’s future career. On the last day of work, the employee needs to return equipments including uniform provided by Tesco and due salary is credited in the account. (Pilbeam and Corbridge, 2010)

4.3 Consider the impact of the legal and regulatory framework on employment cessation arrangements with an organization such as The Chicken Master if Faisal’s claim was proven to be true

Under UK legislation, Chicken Master needs to follow numerous rules and regulations in employment cessation arrangements. The impact of legal and regulatory framework on employment cessation arrangements are:

• Wrongful Dismissal: this is considered as a breach of employment laws and in such a case the employee can file a case and drag the company to the tribunal. In case the company is found guilty can even pay a huge penalty mounting to the kind of loss the employee has faced, say a minimum of £25,000. Therefore, Chicken Master must ensure that employee termination is not based on discrimination, retaliation, employee refusal to commit illegal act or violation of company policies. (Smith, 2010)
• Unfair Dismissal: if Chicken Master is found to be indulged in any kind of wrongful dismissal of an employee will lead in paying a maximum of £9900 as a basic award and £63,000 as compensation.
• Claim for Redundancy Payment: it is yearly reviewed by the UK government. On a weekly basis, the total redundancy payments are calculated to be paid every week is capped at £280.

ACAS Code of Practise on discipline and grievances is a basic guideline to the employer, employee and their representatives to handle situations at workplace. This does not hold to dismissal due to redundancy or non renewal of fixed contracts after expiration. Any failure to meet to these codes is liable for proceedings at Employment Tribunals. If Tribunal finds that the employer has unreasonably failed to comply with the codes, then upto 25% increase in award can be made. Similarly, if Tribunal finds that employee has unreasonably failed to follow the Code of Guidance then reduction upto 25% can be made in awards. Both ACAS and Employment Tribunal states that issues at workplace should be resolved for which either employer or employee can seek third party mediator ship who should not be directly or indirectly involved in the disciplinary or grievance issue.

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Conclusion

At the end it can be concluded that an organization for managing its internal process must first manage its human resources for which it must ensure that it has implemented an effective HRM system. In addition, organizations must also adhere to the legislative rules and regulations for further maintaining the culture in the workplace along with the discipline of employees. Thorough this project we have also developed an understanding about the process of employment cessation and the legal frameworks that are attached with the process.

References

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