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Unit 22 Practical Issues in Human Resources Management Assignment
Diploma in Business
Unit Number and Title
Unit 22 Practical Issues in Human Resources Management
This unit 22 practical issues in human resources management assignment has been prepared over Practical issues in the world of Human Resource Management so as to develop an understanding of the issues faced in human resource management. Human resource management is one of the crucial aspects of an organisation which contributes towards the enhancement of the performance of the organisation. This report covers various aspects related to the management of human resource of an organisation which helps in developing an understanding of these aspects so as to enhance the knowledge of an individual. It discusses the difference between human resource management and personnel management and the role or function of human resource management in attaining the objectives or purpose of the organisation. There are various roles and responsibilities of line managers in managing human resource and evaluation of these roles and responsibilities have been done in this program. Analysis has been made of the impact of the legal and regulatory framework on management of human resource and the reasons behind human resource planning in an organisation. There are various stages involved in the planning process of human resource requirements and these stages have been discussed, a comparison has been made between the recruitment and selection process of different organisations and the effectiveness of this recruitment and selection process have been explained. A link has been established between the motivational theories and rewards; evaluation has been done of the process of job evaluation and various factors which determine pay and the effectiveness of the reward systems adopted by an organisation. For the attainment of the objectives of the organisation there is a need to monitor the performance of the human resource management certain methods need to be adopted. It also discusses the reasons of cessation of employment with an organisation, the exit procedure adopted by an organisation and the impact of the legal and regulatory framework on the arrangements of employment cessation.
For better understanding of the various aspects of the sections discussed in this section, a company of United Kingdom has been selected named as “Sainsbury” second largest supermarket of United Kingdom. It was founded by John James Sainsbury in 1869 in Holborn, London, UK. It offers variety of products with high quality to its customers so as to enhance their satisfaction level.
1.1. Differentiate between personnel management and human resource management giving examples in two suitable organisations.
Personnel management and human resource management are two different aspects which enhances the performance of an organisation. The differences between personnel management and human resource management are as follows:
- On the basis of meaning: Personnel management can be understood as the management tool which deals with the human resource of an organisation and managing people or workforce of the organisation. And human resource management can be understood as the branch of management which is concerned with the use of the human resource of an organisation in an effective manner so as to generate the desired outcomes by managing the human resource (Chiva, 2014).
- Definition: this tool of management can be defined as the measure which deals with recruitment, selection, staffing, development and offering compensation to the human resource for the attainment of the objectives of the organisation. Whereas human resource management can be defined as the organised and specialised tool of management which is focused towards the appointment, management, development, utilisation and coordination of the human resource in the organisation so as to maximise their efficiency and to divert the efforts towards the objectives. Sainsbury has adopted human resource management so as to manage the human resource of the organisation in an effective manner (Kramar, 2014).
- Approach: Personnel management is a traditional approach which is concerned with the administration of personnel, welfare of the employees and maintaining healthy relations with the human resource of an organisation. whereas human resource management is a modern approach which is concerned with the development of the skills and knowledge of the human resource, acquisition of human resource, motivating and leading human resource and managing them in an organisation. Sainsbury is using HRM as it is an advance version of personnel management.
- Treatment to the human resource: in personnel management human resource of an organisation is treated as machines or tools. Whereas in human resource management human resource is treated as an asset of the organisation. Sainsbury is treating its human resource as an important asset of the organisation as it performs the activities of the organisation (Kramar, 2014).
- Decision making process: in personnel management decision making process is slow in comparison to human resource management. For the better and fast decision making process Sainsbury is using HRM.
- Basis for job design: in personnel management the basis for job design is division of the work whereas in human resource management job design division of human resource is done into groups or teams for the execution of the tasks or activities. Sainsbury is using HRM so as to divide its workforce in groups according to the activities or tasks of the organisation (Chiva, 2014).
- In personnel management the basis of pay is job evaluation. On the other hand, in human resource management the basis of pay is evaluation of performance. Sainsbury has used HRM practices so as to evaluate the pay of its employees on the basis of their performance so as to provide equal opportunities to every employee.
- Example: Bestway Group a conglomerate United Kingdom is using personnel management so as to place its focus over the management of human resource of the organisation as a tool or machine for the attainment of the objectives of the organisation. Whereas Wates is a construction company of United Kingdom is using HRM so as to treat its human resource as an asset and to manage them for effective results.
1.2. Assess how human resource management functions help your chosen organisation in achieving its purpose.
Human resource management is an important aspect which helps an organisation in different manners. Human resource management manages the human resource of an organisation in an effective manner as well as manages the various aspects related to human resource so as to attain the objectives of the organisation. Human resource management is providing support to Sainsbury in different ways. There are various functions which are performed by human resource management. These functions include recruitment and selection, management of performance, training and development and motivating human resource so as to direct them in a common direction for the attainment of the goals or targets of the organisation. The manner or way in which these functions of human resource management help Sainsbury in achieving its purpose is discussed below:
- Human resource planning and organising: it helps in planning of the requirement of the human resource in the organisation so as to execute the activities in an effective manner and allocate the tasks among the human resource according to the requirement of the activities (Raj Adhikari, 2010).
- Directing and controlling: there is a need to guide and control the activities of human resource of the organisation so as to move towards the objectives of the organisation. Human resource management checks the performance of the human resource so as to analyse the deviations from the desired performance.
- Recruitment and selection: this function of human resource management provides the effective human resource to the organisation by conducting recruitment and selection process so as to attract the prospective candidate (González-Loureiro, et. al., 2014).
- Job analysis and design: job analysis is an important aspect as it helps in the identification of the requirement of the skills and knowledge for a particular role. It helps in analysis of the tasks, duties and responsibilities of a role.
- Performance appraisal: performance appraisal is an important function of human resource management as it is crucial to analyse the performance of the human resource for ensuring the targets are achieved (Raj Adhikari, 2010).
- Training and development: for the development of human resource there is a need to identify the requirement of training so as to enhance the skills and knowledge of the human resource. This function is an effective tool for the development of the employees for the future roles.
- Maintenance and employee welfare: there is a need to communicate with human resource so as to manage the human resource and to prepare them for performing in a better manner. For this purpose there is a need to motivate the employees for enhancing their performance. Motivation can be in monetary or non-monetary form.
- Relationship management: the most important aspect is to manage the relationship with the employees, with the customers, investors, creditors and other stakeholders so as to maintain healthy relationship with the various stakeholders and this task is executed by human resource management (González-Loureiro, et. al., 2014).
All these functions help Sainsbury in the execution of the functions in a better manner so as to attain the objectives of the organisation in a better manner.
1.3. Evaluate the role and responsibilities of line managers in your organisation or familiar organisation and how it supports human resource management functions.
There are various responsibilities of a line manager of an organisation. A line manager in Sainsbury performs executes various responsibilities so as to conduct the activities of the organisation and to achieve the objectives and goals of the organisation. For the execution of the responsibilities of a line manager, an individual need to be responsible, honest and knowledgeable. Line managers of Sainsbury guides, encourages and motivates other employees so as to get the tasks performed by them in an effective manner. Line managers listen to the problems or issues faced by the employees so as to solve these issues and problems. Line managers of Sainsbury ensure that the ethical code of conduct is maintained so as to manage the activities of the organisation within the legal framework. The responsibilities of the Line manager of Sainsbury are discussed below:
- Involving employees: for the purpose of boasting the morale of the employees, there is a need to manage and motivate employees and engaging employees in the functions of the organisation. And this responsibility is fulfilled by the line manager of Sainsbury (Evans, 2015).
- Evaluation of the performance and appraisal: line manager analyse and keeps a check over the performance of the employees so as to facilitate attainment of the objectives of the organisation. On the basis of the evaluation of the performance it offers appraisal to the employees.
- Maintaining discipline and ethical code of conduct: ethical code of conduct helps in managing the environment of the workplace of an organisation. Line manager maintains the environment by guiding the employees and setting examples. This helps the organisation to create a good image in the society and low employee turnover ratio which reduces the wastage of time, efforts and money (Hassan, et. al., 2015).
- Developing human resource: line manager keeps a check over the performance of the employees so as to identify the need of training and development. Training helps in the development of the skills and knowledge of the human resource of the organisation which enhances the performance of the organisation (Hassan, et. al., 2015).
- Minimisation of the risks: it minimises the risk by reviewing the activities so as to ensure the less or no occurrence of the errors (Evans, 2015).
1.4. Analyse how legal and regulatory framework impact on human resource management.
There are various laws, rules and regulations framed by the government of United Kingdom so as to ensure that the human resource is managed in an effective manner and fair treatment is provided to the human resource. These laws or legal and regulatory framework are discussed below with their impacts over the human resource management.
- Equal pay act 1970: according to this act, every employee need to be treated fairly and equally and equal opportunities should be provided to them and equal payment should be made to the employees who are working on the same post.
- Sex discrimination act 1997: this act bounds the organisation to eliminate and to restrict the discriminatory practices so as to provide fair treatment to the human resource of the organisation. Discrimination can be based on the caste, colour, sex or religion.
- Disability discrimination act 1995: according to this act discriminatory practices should be avoid on the basis of disability of an individual.
- Data protection act 1998: According to this act the private or confidential data of the employees or human resource need be kept confidential (Self, et. al., 2014).
- Work and families act 2006: according to this act, a balance needs to be maintained in the personal and professional life of an individual.
For the purpose of understanding the different aspects of this section, two companies have been selected named as “Sainsbury” and “Wates” of United Kingdom.
2.1 Analyse the reasons for human resource planning
Human resource planning is an important aspect which helps in effectively utilising the human resource for the attainment of the objectives of the organisation. Human resource planning is an effective tool which helps an organisation to ensure that right quantity of human resource possessed with the required skills and knowledge are performing the activities of the organisation in the right time. The reasons for human resource planning are discussed below:
- Estimating the requirement of human resource: human resource planning helps in the estimation of the present as well as future requirement of the human resource of an organisation.
- Execution of the activities of the organisation: human resource executes the activities of the organisation so as to achieve the objectives of the organisation. Sainsbury is using human resource planning for the execution of the activities of the organisation.
- Retaining the talent: human resource planning helps in retaining the talented and effective human resource so as to hold the skills and knowledge within the organisation (Saad, 2013).
- Development of human resource: human resource planning focuses over the development of the human resource so as to enhance the performance of the organisation. Human resource planning helps in identifying the need of training and development of the human resource.
- Dealing with uncertainties: there are various changes which occur in the environment and for the purpose of coping with the uncertain situations there is a need to plan in advance.
2.2 Outline the stages involved in planning human resource requirements
For the purpose of planning human resource requirements there is a need to adopt process which includes various stages. These stages are discussed as follows:
- Identification of the requirement of human resource: this is the first stage of the process adopted by Sainsbury for the purpose of planning human resource requirements. In this stage of the process the requirement of the human resource for the execution of the activities of the organisation is done so as to provide a base for the future stages. In this stage the requirement is estimated of the human resource for the execution of the activities.
- Forecasting of the demand of human resource: From the identification of the requirement of the human resource for the present and future periods forecasts are made so as to make arrangements of the human resource accordingly. This stage helps in the analysis of the future demand of the organisation for the execution of the activities (Hafeez & Aburawi, 2013).
- Forecasting of the supply of human resource: In this stage of the process, the availability of the human resource is analysed in the environment or market so as to analyse the means through which the demand can be met for the fulfilment of the requirement of the organisation.
- Meeting the demand and supply: in this stage the actual requirement of the human resource is match with the supply of the human resource so as to effectively perform the activities of the organisation.
- Action plan: In this stage all the previous stages are reviewed so as to eliminate the chances of errors for effective results.
2.3 Compare the current recruitment and selection process in the organisation with another organisation you recommending.
Different organisations have different recruitment and selection process so as to appoint or hire the required employees or human resource for the purpose of execution of the activities of the business. Recruitment and selection process of an organisation creates an impact over the quality of the human resource of the organisation. For the better understanding of the recruitment and selection process, comparison has been made between the process adopted or followed by Sainsbury and Wates. Sainsbury is using internal as well as external sources for the purpose of recruitment and selection. For the purpose of filling the higher posts it is using internal sources as the internal sources or human resource of the organisation have knowledge of the manner in which tasks or activities are performed in the organisation. It is conducting using advertisement or promotion activities at its stores for the purpose of hiring of employees. It is conducting face to face interview and a written test so as to identify the knowledge and skills of the candidate for the management of the stores and for analysing the manner it uses for dealing the customers and their issues. After this stage it provides training to the candidate so as to develop it for the job and after the successful completion of the training, the candidate is appointed (Russell & Brannan, 2016). Wates is a construction company which is using external sources for the purpose of recruitment of human resource. It has delegated this task to the third party so as to save the time and efforts involved in recruitment and selection process. After the candidates are shortlisted by the outsourcing company it conducts a skills and knowledge test and interview for analysing the potential of the candidate and suitability of the candidate for the post.
2.4 Evaluate the effectiveness of the organisation recruitment and selection techniques with another organisation you recommending.
The method or process adopted or followed by Sainsbury is effective as it provides the internal sources of the organisation a change to develop their skills and knowledge for better career opportunities and to avail the better future prospects. This has helped Sainsbury to deal with the issues and problems in a better manner as the internal sources are well aware of the way in which these issues or problems are handled or dealt. It provides better opportunities to its internal sources which help in reducing the employee turnover rates of the organisation as well as saves the time, cost and efforts for providing training to a new human resource. It is conducting tests and interviews for the recruitment from external sources which has helped in maintaining a person touch and analysing the suitability of the individual with the posts it has to fill. This process of recruitment and selection has helped Sainsbury to deal with the issues in a better manner and to develop the personnel for the attainment of the objectives of the organisation. On the contrary, the method or process used by Wates for recruitment and selection of the human resource is less effective as it is using outsourcing facility for the purpose of appointment of the human resource for the organisation. As the company has the better knowledge the skills and knowledge it is looking for in the candidate so as to match up with the requirement of the job or posts. It is also lacking in creating a personal touch with the human resource which bounds the organisation from acquiring the knowledge of recruitment and selection process (Baum & Kabst, 2014).
For the better understanding of the different aspects discussed in this section of the program an organisation has been selected named as “Virgin Media” which has been created or formed from the merger of NTL, Telecast and Richard Branson’s Virgin Media. It is a part of Liberty Global plc which is the largest international cable company of the world.
3.1 Assess the link between motivational theory and reward at Virgin Media or your chosen organisation. Your answer must show if you think there is a link, what connects the two.
Motivation and reward both are related to each other. Motivation can be understood as a method used for the purpose of encouraging, boasting the morale and supporting employees for the purpose of attainment of the objectives of the organisation. It is used for influencing the behaviour of a person for performing an activity in a better manner. Reward can be seen as a part of Motivation as motivation includes monetary benefits and non-monetary benefits as well . Virgin Media is using two theories of motivation which were given by Abraham Maslow and Herzberg. The theory given by Abraham Maslow was named as Maslow’s hierarchy of needs. This theory explains that there is various need of a person, when one need of a person is satisfied it moves towards the attainment or fulfilment of the other needs. And according to the Herzberg’s two-factor theory of motivation, there are various aspects or factors which creates satisfaction and dissatisfaction in an individual. For the purpose of motivating a person, those aspects or factors which create satisfaction need to be improved and the factors which create dissatisfaction need to be eliminated so as to motivate the employees for enhancing their performance.
These theories have helped Virgin media in motivating its employees by providing monetary and non-monetary benefits to the employees. Monetary benefits include rewards, incentives, bonus and increments. Non-monetary benefits include promotion, appreciation, recognition, working conditions, environment at the workplace, support of other employees and managers and acknowledgement (Sell & Cleal, 2011).
3.2 Evaluate the process of job evaluation and other factors determining pay at Virgin Media or your chosen organisation
Job evaluation can be understood as the method in which the pay of a person is decided. Pay can be explained as the payment or compensation given to an individual for the purpose of execution of the tasks or activities of a business. The pay of a person or the payment to an employee is made on the basis of the evaluation of its performance. All the information related to the job position or role is analysed so as to set the standards for the job evaluation for the post. Virgin Media is using a performance based job evaluation technique for the purpose of evaluation of the job of an employee. There are various factors which help in determining the method of job evaluation. These factors include size of the organisation, skills or experience, pattern of pay in the industry, profitability of the organisation and performance of the employee. All these factors form a base for determining the pay for a job at Virgin Media (Wright, 2011). Virgin Media is using fair methods for job evaluation so as to evaluate the pay of the employees in a better manner which helps in satisfying the needs of the employees and meeting their expectations. This helps in reducing the employee turnover ratio and generating trust and loyalty among the human resource of the organisation. This has helped in the better execution of the activities of the organisation by the human resource of the organisation and managing an effective and satisfied human resource.
3.3 Assess in different contexts (for e.g. attracting talent, retention, and motivation) how effective is the reward systems at Virgin Media or your chosen organisation
Reward act as an attraction or a pool which drags the talent towards the organisation and well as helps in retaining the talent and motivating the employees or human resource of the organisation. Virgin Media is using rewarding system so as to motivate the employees at different stages. Virgin Media is using the two types or forms of rewards for boasting or motivating or encouraging or inspiring the human resource. These forms are intrinsic rewards and extrinsic rewards. Intrinsic rewards can be understood as the form of rewards which is intangible and non-financial incentives given to the human resource of encouraging them. Intrinsic rewards include appreciation, acknowledgement, recognition and feedbacks. Extrinsic rewards can be understood as the form of reward which are tangible and financial incentives given to employees for enhancing the performance. Extrinsic rewards include increment, bonus, gifts, and hike in salary, commission and target bonuses. Both these forms of rewards are used by Virgin Media which has helped the organisation in maintaining a satisfied workforce for the execution of the activities of the organisation in an effective manner (Srivastava & Srivastava, 2011).
3.4 Examine the methods Virgin Media or your chosen organisation use to monitor employee performance.
For the purpose of maintaining the performance of the employees every organisation need to monitor the performance of the employees. This monitoring will help in evaluation of the performance of the employees. Virgin Media evaluates the performance of the employees by using different methods so as to analyse the performance and the deviations of the actual performance from the desired performance. These measures for monitoring the performance of the employees which are used by Virgin Media includes check over the quality of the performance, self evaluation, matching of actual performance with the desired performances, conducting customer surveys with the help of questionnaires and interviews and attentiveness of the human resource. Check over the quality of the performance helps in meeting the desired quality which was estimated by the organisation. Self evaluation has helped the organisation by fixing the responsibility of one’s performance on themselves so as to make them self dependent and capable to manage their performance well. It is also matching the actual performance of the employees with the past performances or with the set standard so as to analyse or evaluate the deviations from the desired outcome. Conducting the customer surveys has helped the organisation in analysing the effectiveness of the organisation in satisfying its customers and the performance of the employees as well as of the organisation. And the attentiveness of the employees helps in the evaluation of the seriousness of the employees for its work or job (Nandan, 2010).
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.
For the purpose of cessation of the employment, there are various reasons. These reasons include failure in complying with the commitments, lack of completion of the duties, involvement in unethical practices, disclosure of confidential information of the organisation and breaking rules of the organisation. For the termination two ways are used. These ways are voluntary and non-voluntary termination of the employment. An employee can leave the job due to various reasons. These reasons includes for better opportunities, unfair treatment in the organisation or lack of interest in the job. In voluntary termination the breach of the contract of employment is according to the wish of the employee. In non-voluntary termination of employment, the employer breaks the contract of employment due to the above discussed reasons. In the given scenario, Faisal was terminated from the job by The Chicken Master due to his involvement in the unethical practices and not fulfilling the responsibilities assigned to him. It was mentioned in the handbook of the organisation that employees cannot use the equipments of the company for their personal use. He has violated the rules and regulations of the company and misused the power and authority assigned to him. So the contention of Faisal is wrong (Carruthers, et. al., 2014).
4.2 Describe the employment exit procedures used by The Chicken Master and another organisation of your choice
Employment exit procedure used by The Chicken Master and Sainsbury are framed after considering the rules and regulations. The Chicken Master and Sainsbury are using an employment exit procedure in which not against the laws of United Kingdom. Employee can vacate the job in two ways. One is Voluntary and another one is non-voluntary. In the first case the employee need to give a notice for leaving the organisation to the company so as to make the organisation aware of its decision. Then after providing a notice to the company in a written form it is asked to attend a exit interview in which company and its officials makes efforts for convincing the employee for not leaving the company and about the reasons for such decision. After this exit interview if the employee still wishes to leave the job it need to save the notice period as per its contract of employment. And in the second case, company issues a notice against the employee for the dismissal and the employee is given a chance to present its views in front of the officials of the company so as to safeguard itself from such action. In not presenting a reliable proof, company issues a notice to vacate the job (Suzan J W Robroek, et. al., 2015).
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.
In the given scenario the contention of Faisal was wrong. But in case his contention was right, then it has various rights against the company. The government of every country has framed various rules and regulations for safeguarding the employees from the unethical practices adopted by the organisations. If the cessation was before the expiry of the contract of employment then Faisal has a right to file a case against The Chicken Master for breaking the contract of employment which is against the rules and acts framed by the government of United Kingdom. If the cessation is after the expiry of the contract of employment then the organisation is not liable. If the contention of Faisal was right then it has the right to sue The Chicken Master for breaking the contract of employment and the company need to pay a fine or to face the imprisonment or both (Hill, et. al., 2011).
In this program various aspects related to human resource management have been discussed. This report has helped in enhancing the knowledge of the various aspects of human resource management. This report has generated an understanding of the differences between personnel management and human resource management and of the functions of human resource management which helps in enhancing the performance of the organisation. It also discussed the link between motivation and reward and the two theories of motivation provided by Maslow and Herzberg. This program also discussed the methods used by organisation for the purpose of monitoring the performance of the employees which helps in the evaluation of the job. It also discussed various aspects related to cessation of employment.
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