Program |
Diploma in Business |
Unit Number and Title |
Unit 3 HRM Planning |
QFC Level |
Level 4 |
Unit 3 Assignment on HRM Planning describes the concepts of human resource management regarding the retention, motivation and appraisal of employees. This unit also focuses on the legal matters for cessation of employment and exit procedures. Learners will learn about the difference between the personnel and human resource management. It gives the idea about the hr management and the role of line managers in HRM. The unit continues with the description of human resource planning. Planning of human resource is very crucial and involves the decision of recruitment and selection techniques. The importance of right people on right job is described very clearly in the unit.
Learners will learn about the motivational theories and their link with the reward system. Reward system is described as the system or process of providing benefits to the employees according to their performance. Mechanism of cessation of employment is very well explained in this unit and it further provides the knowledge about the legal framework and its impact on the cessation arrangement of the organisation.
Both the terms, personnel management as well as human resource management are related to the management of the employees in the organization. Traditionally the practice that was used to manage the employees is known as personnel management and the modern practice of employee management is the human resource management.(Mahmood, 2014)
There are some differences between both the management approaches in consideration with their functioning. (Armstrong and Armstrong, 2009)
Personnel management |
Human resource management |
Managing employees using traditional ways |
Managing employees using modern ways |
Department works according to pre decided rules and regulations |
Department works according to the situational changes |
Personnel department is only related to administration |
Human resource department has relation with all other departments as the managers of each department works for human resource functions.
|
Treat employees as inputs for organizational goals. |
Treat employees as asset for the completion of organizational goals. |
Personnel manager act as the mediator between the workers and the top management people. Personnel department is only for the welfare of employees on the executive posts |
Human resource management is for the top management also. |
Let us take examples of the organizations that are using the above approaches.
The achievements of organisational goals are not only dependent upon the operations but also deals with the human resource department. Human resource department is the foundation of the organisation. Recruiting right people on right time and at right place is a very crucial work to be done by the human resource department. The management of employees in the organisation is very important for the completion of short term as well as long-term goals of the organisation. The satisfaction of the employees leads to efficient working. It is the duty of the human resource department to bring this feeling of satisfaction in terms of money as well as the working environment.
Human resource management in HSBC: HSBC has very wide employee strength with 26000 employees. This suggests that there is diversity of workforce in the organisation that helps in dealing with different situations. The employees of HSBC are the priority of the organisation and this is the reason that the organisation has one of the best human resource management departments. (HSBC.com,2016).
Functions of human resource department in HSBC that contributes in organisational purposes:
Above all practices of human resource management leads to better performance of the employees that contributes in the organisational purposes.
Line managers are the direct reporting managers. Each department in the organisation has the line manager to manage his team. Suppose if there are three departments in an organisation like marketing, finance and HR than all the three departments are controlled by a manager who heads that particular department. Human resource department has the duty of managing all the employees in the organisation but the line mangers have the duty of managing their team. Line managers support the functions of HRM.
HR functions of line managers:
Duty of line managers in HSBC:
The legal and regulatory framework affects the HRM policies formed by the organisations in UK. Some of the government regulated acts such as Employment Act (1996); Minimum Wages Act (2016), Sex Discrimination Act (1975) etc influence the HRM practices of the organisation. The organisations cannot form the HRM policies according to their will. The policies are formed in consideration with the regulatory framework by the government.
Impact of legal acts on HRM:
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Call us: +44 – 7497 786 317Human resource planning means observing the present human resource and mapping out the plan of staffing by linking it to the goals and objectives of organisation. Human resource department determined the need of taking decisions regarding the rightsizing of the organisation in consideration with the achievement of organisational objectives by the process.(Armstrong and Armstrong, 2009)
Reasons for human resource planning:
If we look at the scenario given in the task, it suggests that there is a need to change the recruitment process according to the requirement of the human resource in the organisation. The new HR manger should be appointed to make the human resource planning policies.
Employee planning is very necessary for the organisation to achieve its goals. If there is no appropriate human resource present in the organisation, it will badly affect the functioning of the organisation in achieving its objectives.(Hoch and Dulebohn, 2013)
Human resource planning provides the framework according to which the staffing decisions have been made by the human resource department. It is a systematic process and involves the following steps:(Lussier and Hendon, 2013)
Recruitment and selection process in the organisation given:
The process is very simple. It involves the following steps:
Recruitment process of Tesco:
Tesco has a very systematic process of recruitment and selection:
Selection process of Tesco:
Recruitment and selection process plays a very vital role in the organisation. It is very important recruit the right people on right job. As we know that, the human resource is the foundation of the organisation so it is very necessary to recruit right candidates with right skills. The process or techniques used to recruit and select candidates should match with the goals of the business organisation .
In Tesco, the recruitment and selection process or techniques are very effective as it helps in filling the vacant position with the skilled candidates. It is an expensive process but in turn provide the organisation with the appropriate employees. Tesco has low turnover rate as the candidates who has been selected by the employer highly skilled.
In the given organisation, the techniques of recruitment and selection is not that much effective. The criterion of judging the candidates is not appropriate. There is no HR manager to select the candidate as the finance manager is acting as an HR manager. The organisation is not getting the right candidates because the recruitment process is so weak. The information of the vacancy is not reaching to the correct candidates. (Sparrow, 2006).
As we know that motivation at workplace is very necessary for the employees to perform. Many factors can motivate employees. The factors could be rewards, recognition, involvement, etc. The motivation factor of an individual depends on his choice. Different individuals may have different factors to motivate. (Gilbert, De Winne and Sels, 2015)
Different theorists have introduced many motivational theories. All the theories are related to the rewards either monetary or other benefits. Virgin Media identifies that one of the factor that motivates its employees is reward.
If we talk about the human relation theory, virgin Media again realised that by this theory the employee’s performance is affected by the attention they get during performance. Virgin Media stepped forward to apply this theory and introduced programs like NPS championship, SHOUT, VOCE, etc to provide recognition to its employees.
Maslow has also proposed a need hierarchy theory that was criticized by saying that it has no relation with the motivation of employees. Media accepted this theory also and introduced an employee survey in which question is asked regarding training and development, work environment etc.
The application of these theories results in the motivation of employees by providing them with the rewards in terms of monetary rewards, recognition, involvement, etc.
Job evaluation is the process of identifying the worth of job. It refers to determining the skills and characteristics that are related to the job. Evaluating a job helps in comparing the job specification with other jobs in the organisation. The job evaluation process also helps in determining the pay scale of the job. According to the responsibilities and skills, the pay scale of the job has been decided. (Lussier and Hendon, 2013)
Process of job evaluation:
The reward system in Virgin Media is very effective. They have introduced almost all the theories of motivation to provide appraisal to its employees. The reward system in Virgin Media is based on the performance of the employees. Virgin Media provides the apprenticeship program for the trainees and train them properly. They organise an event for recognition of the apprentices after their successful completion of the training programs. It gives the trainees opportunity to continue their career with Media. This recognition attracts the new talent to work with Virgin Media.The reward system of Virgin Media is also effective in motivating the employees. The employees who get 9 or 10 awarded with monetary reward. The score is known as net promoter score. Employees who score 10 also get recognition in NPS hero championship organised by Virgin Media. This somehow motivates and retains employees or talent within the organisation. The organisation also focuses on engaging the employees by taking feedback from them. The yearly survey has been organised to get the relevant answers of the questions from the employees. This gives them a feeling of belongingness and in turn motivates them to work for the organisation efficiently. (Businesscasestudies.co.uk, 2016) Employees stick to the organisation that focuses on their career progress. The top management from Virgin Media conduct regular meetings with the employees to take reviews about the performance, set objectives, discuss progression, etc. This helps in retaining employees within the organisation. The progression in an individual’s career also helps in the growth of the organisation. The reward system of Virgin Media is very effective to retain, motivate and attract employees. The employees get the rewards in the form of recognition, career progression and monetary rewards.
It is very necessary for the organisation to monitor the performance of its employees. Monitoring performance lets us know about the quality and quantity of the employee’s work in concern with the goals of the organisation. The need of training can only be analysed by monitoring the performance of the employees. There are many methods to monitor the performance of the employees. Some of them are: (Noe, 2006)
Assessing quality of work
The reasons for the termination of Faisal:
There are following exit procedure by which the job of an employee can be terminated. Either the employee himself leaves the job or the employer terminates the job without employee’s concern.
4.3 Consider the impact of the legal and regulatory framework on employment cessation arrangements.
The cessation process of the employee is bind by some legal and regulatory framework. The contract has been signed between the employee and the organisation. That contract comprises all the legal rules associated with the job. The major legal regulations regarding the cessation of employment are:(Edralin, 2008)
Human resource is the asset to organisation. It needs to be managed properly. Human resource management includes managing all the processes starting from recruitment to the exit of that employee. There is a very important role of line managers in human resource management. Human resource management is also about motivating the employees not just by monetary rewards but also by providing them with other benefits. These other benefits includes open working environment, recognition in the organisation and involvement in the decision-making processes. For managing the human resource, it is very necessary to plan. Human resource planning refers to determining the need of the number of employees in the organisation in concern with the achievement of goals and objectives. Exit procedures or cessation employment is also the part of human resource management. Cessation and termination of employees is very much affected by the legal framework and regulations by the government.
Books:
Armstrong, M. and Armstrong, M. (2009). Armstrong's handbook of human resource management practice. London: Kogan Page.
Lussier, R. and Hendon, J. (2013). Human resource management. Thousand Oaks: SAGE Publications.
Sparrow, P. (2006). International recruitment, selection, and assessment. London: Chartered Institute of Personnel and Development.
Noe, R. (2006). Human resource management. Boston, Mass.: McGraw-Hill.
Sekhri, A. (2010). Human resource planning and audit. Mumbai [India]: Himalaya Pub. House.
Journals:
Gilbert, C., De Winne, S. and Sels, L. (2015). Strong HRM processes and line managers' effective HRM implementation: a balanced view. Human Resource Management Journal, 25(4), pp.600-616.
Mahmood, M. (2014). Strategy, structure, and HRM policy orientation: Employee recruitment and selection practices in multinational subsidiaries. Asia Pacific Journal of Human Resources, 53(3), pp.331-350.
Hoch, J. and Dulebohn, J. (2013). Shared leadership in enterprise resource planning and human resource management system implementation. Human Resource Management Review, 23(1), pp.114-125.
Edralin, D. (2008). Innovative human resource management (HRM) practices as predictors of employee job involvement and organizational commitment. Asian Journal of Technology Innovation, 16(2), pp.67-81.
Website:
HSBC.com.(2016). HSBC Group corporate website | HSBC Holdings plc. (2016) [online] Available at: http://www.hsbc.com/ [Accessed 1staugust, 2016].
J-sainsbury.co.uk.(2016). J Sainsbury plc / Management and board (2016). [online] Available at: http://www.j-sainsbury.co.uk/about-us/management-and-board/ [Accessed 2nd august, 2016].
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