Delivery in day(s): 5
Diploma in Business
Unit Number and Title
Unit 22 Practical Issues in Human Resource
Personnel management deals with tasks such as employee’s payroll, welfare and administrative kind of role which is a traditional approach. This kind of management is common in construction companies working in Dubai or Saudi Arabia where workers from developing countries are working and the manager’s role is to see that the proper employment laws and regulations are followed. It is workforce centered and there is no scope of programs such as skill development or talent nurturing (Introducing Human Resource Management, 2016).
On the other hand human resource management is a modern approach which considers employees as a resource which can be developed and nurtured to achieve the organizational as well as individual goals. An enterprise like Greka Drilling Limited has vibrant and dedicated human resource department which continuously perform performance evaluation and training programs for skill development of its employees. The company has a pool of technicians who have bachelor’s in technical faculty along with experience personnel who have diplomas or have done certifications courses of short durations. The HR management has to manage the technical team where new technical graduates could work with experienced technicians who may not have gone to good schools and it is the only way of imparting training to freshers.
The HR team monitors the training and also performs on job performance analysis based on criteria set by the various departments like environment and safety, maintenance department along with its own analysis based on workplace behavioral conduct. The entire process helps an individual to improve his/her performance along with benefits that are offered for competence.
The function of a human resource management circles round these three objectives
Based on these objectives the function of a HR management can be divided in to five categories:
The role of line managers consists of activities which were considered for HR managers traditionally. The difference is that the HR managers are responsible for human resource planning for the entire organization whereas line managers are responsible for planning for a team or an individual of a team. Line managers act as a link between higher management and a team assigned to them(Human Resource Management Journal, 2012).In Greka Drilling, Tool Pushers acts as a line manager whose responsibility is to train and guide the technical team throughout the all kinds of jobs and take decision making regarding the operations. He is responsible for the disciplines and sorting out small grievances on the field. His role in performance evaluation has been explained in the upper section.
During everyday team meeting which is known as “tool box talk” he assigns work responsibility to each crew member and discuss about the role of each individual in every job. Any individual can approach to him for work related problem and he would try to seek it out on his level. Even he can recommend for promotion of employees to the next level of hierarchy. He is responsible for the implementation of organization policy of human resource on the unit level.
The legal and regulatory framework is devised for the safeguard of the rights of employees and employers in order to make the workplace safer and pleasant for all of the stakeholders. It prohibits HRM to discriminate on the basis of race, gender and religion. It ensures that same wage is given for same work to all of the employees. The Employment rights act empowers the employee to voice against improper dismissal from the work. It also ensures that national minimum wage is paid and no manager could ask for more working hours than 48 hours per week until unless the employee wishes to work for more hours.
The various rules and regulation forced the HR managers to change their policies on the guidelines of the government. The fear of being dragged to the court of law ensures the fair behavior with each and every employee. The HR managers plan for the carrier development for each individual according to their performance without biasing. The health and safety act has forced the HR managers to work for better ergonomics for the work place which has gained importance a lot for people who have long hours of desk jobs (Employee Relation Act, 1999 and 2003).
The reasons for human resource planning in an organisation are:
The human resource requirement planning based on organizational goals and aims can be divided into following stages
Recruitment is a process of finding about candidates who are willing to work for an organization whereas selection is the process of choosing suitable candidate for the post. There are two types of recruitment- Internal and External recruitment process. Internal recruitment is done when the vacancies can be filled by the employees already working in the organization. This process is saves time and cost involved in the recruitment. External recruitment is done when candidates outside the organization is required to be hired. It is done by posting the job vacancies on online portals and other job platforms. Sometimes the management takes help from various recruitment consultancies also.
For comparison purpose the recruitment and selection process of Maersk Corporation and Pizza Hut is discussed below.
Maersk advertises the openings on various online job portals and seek applications from candidates who have relevant knowledge and expertise. It also tries to fill the vacancies through internal recruitment process. For external candidates it advertises vacancies on its website. Maersk makes sure that people know about the openings and make the application process simple. The applicants search for the job openings from various fields available on the website according to their experience and area of expertise. They fill the application form and submit to the website directly. An automated email regarding the application submitted successfully is sent on the applicant’s email address. Then the management sorts out the most desirable candidates for the post and are contacted through email and various kinds of exercises are given to analyze their team work and problem solving attitude methods. Then they are contacted on phone for first round of interview. If the performance is satisfactory then second round of face to face interview of interview through video conferencing or through Skype is done. All this process ensures the selection of most competent individual who applied for the job.
On the other hand the Pizza Hut advertises the vacancies in their own restaurants and local job fairs or job centers. Normally they hire younger people with decent personality with average communication skills. Since no particular qualification or experience is required a lot of people apply for the job. Here the manager sort out the applications of those criteria and call the applicants for face to face interviews. Then the candidates are selected on the basis of this interview and their induction process starts.
The recruitment and selection process for both the organization are designed and planned to get the best candidate for the job. The organisation’s effectiveness depends on the work force it has hired so it’s the key responsibility of the HR management to induct competent employees in order to achieve the organisation’s goal.
Maersk through its website advertise the post and the qualification and experience required for the post. The candidates who fulfill the criteria apply for the job. So the HR manager has a pool of desired candidates and he/she has the select best among those who possess the required expertise for the post. The application process in itself designed in the way that no discrimination on the basis of sex, religion, and race is done. The selection process is designed to identify the most competent individual among who have applied for the job. Similarly the Pizza Hut recruitment drive attracts many individuals who want to work for the joint. There is no such screening process involved in the selection method so a lot of candidates are interviewed. The selection is totally based on the performance in the interview with the manager. The process is time consuming and a lot of effort is required to select the right candidate.
Motivational theories can be broadly divided into two viewpoints- content theories and process theories. The content theory deals with motivates and process theory deals with the process of motivation. Motivation is a process of influencing the behavior of an individual either by offering or withholding the satisfaction of the needs (BPP Learning Media, 2010). On the other hand reward is something that is awarded by an organization in lieu of good performance of an employee which gives the sense of achievement. Rewards could be either financial or non-financial.
Frederick W Taylor put before the earliest of the motivational theory. He believed that work could be broken down into step wise task activities using scientific methods to find the most efficient way of doing a job (The Principles of Scientific Management). Taylor believed that money motivates the worker so he introduced the method of payment on piece work basis. Virgin Media still follows these principles (not entirely) and has introduced bonuses for better performances.
Herzberg in his theory states that there are two sets of need of workers at the work place- Motivational factors and Hygiene factors. The combination of these two factors can give better results in the employee’s performance. Virgin Media based on this theory hire apprentices based on their behavior and talent and give them proper mentoring and training. The Virgin Media also provides on job training to its employees to increase their confidence level and competence.
Maslow’s Theory speaks about five hierarchy levels of human needs which every individual starting from the first level of fulfilling of basic needs tries to climb up to the next level to attain the fifth level of self-actualization. Virgin Media does a survey every year where questions related to job profile, training and development are asked. In this way everyone’s contributes to the HR policy. The career progression of the employee relationship is a part of the policy and is drafted with the help of employees.
Job evaluation is an extensive process and is done through a systematic approach. The approach defines the relative worth or size of the jobs within the organization in order to establish internal relativities. The systematic approach provides the basis for pay structure, structure of the grade of the job and pay relatives. At the initial stage of the approach, the management must sort out all the reasons of the entire process and its importance. A group of HR managers and employees of all departments are formed for the evaluation process.
The group formulates the method of evaluation of the job. There two methods for this task:
The other factors of pay determining are as follows:
The effectiveness of the reward system depends on the type of reward. There are mainly two types of reward:
Extrinsic Rewards- These are tangible in nature which an employee receives due to their performance. These include bonuses, salary hike, gifts, commissions and promotions.
Intrinsic Rewards- These are intangible in nature and are in the forms of recognitions for good performance, appreciations, trust and relationship.
Employee bonus system and pay hike are positive strategy and can provide good motivation. These can improve performance and attendance as well as customer service and quality of the work. The organization profit increases as result of the reward system due to the increased effectiveness and interest of towards the work.
There are several methods by which the employee performance can be monitored. The Virgin networks uses observation and feedback system for monitoring the performance. The company hire third party for the monitoring along with its own HR management. The observation is analyzed which gives accurate result based on the feedback. The company also sets the standards for its employees and expects to follow the standards. The training programmes help the employees to fulfill the expectation. The employees performance is evaluated on the fixed criteria which is quality, cost, quantity and manner of performance.
The employees are interviewed to know about their performance and to identify their strength and weaknesses and ways to improve them
According to the context given, Faisal from the The Chicken Master was terminated due to poor performance and violation of company’s policy. According to the owner, Faisal neglected his duty as a manager of the store. On further investigation, many reasons for his termination were found.
The owner was forced to terminate him as he also tried to coach Faisal for improving his performance but no result forced him to terminate him.
Other reasons for cessation of employment with an organization are
In case of The Chicken Masters, the employer tried to coach Faisal gave him appropriate time to show improvement in his works. But no good result came out so on the basis of poor performance and violation of company’s policy, the owner terminated Faisal. The exit procedure involved these steps
The exit procedure depends on the type of organization. For a person in R&D of a sophisticated technological field the exit procedure would be completely different with a person working in a bank. For a person in R&D, there would be completely different protocol.
The dismissal or cessation of employment should comply with the regulations set by the legal bodies of the country or state. A fair and reasonable behavior of employer is expected for cessation. The employee has a right to go to the Employment Tribunal if he/she feels that any kind of discrimination or injustice is done. Employers are advised to follow ACAS code which has the guideline for cessation process along with the company’s own contractual procedures.
If dismissal notice is served then specific areas are reviewed so that a decision could be taken. The areas which are reviewed include performance, responsibility, absenteeism and special achievements (Truss &Gratton, 2004). In The Chicken Master case, Faisal failed in all areas of job. At the same time company’s policy of not using the company’s property for personal work was not followed, even was misused for pornography which is a kind of misconduct at the work place.
Employment Right Act states that proper warning and time should be given to improve performance. Faisal was given prior training by the owner to improve his performance as manager. Employment Right Act also provides with the compensation if the tribunal finds that proper guidelines have been not fallen. So if Faisal’s claims are found to be true than the tribunal can order The Chicken Master to reinstate him as a manager or to some other post in the joint or in some cases compensation and job also.
Human Resource Management Journal
The Financial Times and other quality newspapers. Many business stories will appear in the news sections.
Harvard Business Review (Harvard Business Publishing)
The Economist (The Economist Newspaper Ltd)
Helen Shipton, Karin Sanders, Carol Atkinson, Stephen Frenkel, Sense-giving in health care: 2016, the relationship between the HR roles of line managers and employee commitment, Human Resource Management Journal
HosseinSamei, AlirezaFeyzbakhsh, 2015, Predecessors competency framework for nurturing successors in family firms,International Journal of Entrepreneurial Behavior & Research
DamianosGiannakis, Michael J. Harker, 2014, Strategic alignment between relationship marketing and human resource management in financial services organizations, Journal of Strategic Marketing
VasanthiSrinivasan, Rajesh Chandwani, 2014,HRM innovations in rapid growth contexts: the healthcare sector in India, The International Journal of Human Resource Management,
Voselsang John, 2013, Handbook for Strategic HR
Thomas H, DiezFermin, Smith R. Richard, 2013, Human Capital and Global Business Strategy