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Unit 3 Human Resources Management Assignment
This Unit 3 Human Resources Management Assignment is a study about the importance of human resource management and personnel management and explains difference between the traditional and modern approach of work force management. A company works for achieving its goals and objectives by increasing the performance of the employees. Job evaluation and motivation by rewarding system helps to increase the engagement of employees in the company.There is a detailed study of the role of human resource planning process in the effective human resource management.Some companies of UK are taken as examples like Amway, The Body Shop International and case study of Virgin Media. A comparative study is done of these companies for the applicability of human resources management and process of termination of employment.
1.1 Differentiate between personnel management and human resource management giving examples in two suitable organizations.
Personnel management can be defined as approach to manage employees and maintain the workforce satisfied. This approach concentrates with the relationship of the employees with organization. This relationship can be positive or negative but personnel management makes an effort to keep the positive relationship of employees with the growth of organization. Personnel management includes all the activities which are related to employee retention like organizing, integrating and compensating the work force. Basically the approach is a traditional approach which is a general management of entire activities of work force in organization, whereas Human Resource Management is a modern approach to employee management and managements of their capabilities. Human resource management is an approach which is work for the optimum utilization of human resources. In human resource management an overall development is done in the direction of achieving the goals and objectives of organization. in personnel management job design is executed according to the distribution of work but in case of human resource management the job is designed in team work and tasks where a team and a group is constructed to do a particular task (Tran, H. 2015).
Human resource management is adopted in the human resource in FMCG Company of UK Body shop international. The company is investing in the activities of human resource for expanding the human resources of the company and overall development of man power. Activities of personnel management are covered in the human resource management as in it is wide approach. The company’s staff management, organization, integration, compensation and development are the activities covered in the process of human resource management(Tran, H. 2015). The leading FMCG Company Amway has adopted the approach of personnel management. The company recruits selects and then trains the entrepreneurial managers. By personnel management approach an overall development is created of employees who give them direction to meet their personal requirements in the company asemployee.Human resource management helps to increase the involvement of employees in organization and help to achieve optimum utilization of workforce. These approaches are used to motivate the employees in the company (Tran, H. 2015).
1.2. Assess how human resource management functions help your chosen organization in achieving its purpose.
The main purpose of human resource management is to manage the human resource in a manner that the best can be abstracted from them. In present business scenario employees are not just an input for the company they plays important role in the success of the organization. In an organization following activities are covered in the process of human resource management (Parry, & Tyson 2011).
- Planning: Planning of human resource is the initial function of human resource management in any organization. Planning is defined as making an estimation of the number of employees and staff required in organization. Required quality and standards are defined which will be the basis for the recruitment. In Amway the planning for resources is very important for the management of all the activities.As the company is one of the biggest FMCG Companies in the world, and have its business around the world so it is necessary to have sufficient workforce.
- Staffing: Staffing includes recruitment process and selection of people for achieving the goals and objectives of organization.Every company has its requirements for the selection of employees. Predefined objectives and requirements works as the benchmarks for selection of human resource. Amway have staffing policy in which the employees are selected according to the methods and techniques within the different qualified applicants. Job designing is also done in the process of human resource management as in work and tasks are defined according to the ability of the human resources (Parry, & Tyson 2011).
- Orientation and trainings: Orientation is a period which works as a helpline for the new appointed employees. In this period employee adjust himself in the working environment of the company and helps to know about the company’s working strategies. Amway provides proper orientation programs to its employees and entrepreneurial managers in which presentation about the company and its working culture is shown to them. Trainings and development programs are executed to increase the quality of employee’s performance.
- Performance appraisal and compensation: Performance appraisal is a technique which helps to monitor and control performance of employees. Performance appraisal depends upon the feedbacks and reviews of the supervisors and managers.Incentives, bonuses, promotions are includes in the techniques of performance appraisal. Compensation is the value of performance of employee and is defined as a major cost in organization. Amway has a framework for the distribution of compensations and policies for performance appraisal (Parry, & Tyson 2011).
1.3. Evaluate the role and responsibilities of line managers in your organization or familiar organization and how it supports human resource management functions.
Line manager: In organizations there are levels in structure and hierarchy is also there. Line managers are the authorities which are have responsibility to manage activities of employees. In this type of management communication is from top to down level and feedbacks are down to top level.Line manager helps to proper execution of human resource management(Nankervis, A.R., et. al 2013).
Roles and responsibilities of line manager-
- Day to day activities is managed by line managers of employees which help to monitor employee’s performance. Amway have a quality of line manager which manages employee’s activity.
- Line manager provides his expertise information if required to employee. In Amway the line managers are responsible to guide its employees by their expertise knowledge.
- In Amway the line managers are liable for the allocation of tasks to team of employees or individual.
- He is the responsible person for controlling the performance of company’s employees. The line manager of company evaluates the performance of employees on a regular basis and avoids unethical activities (Nankervis, A.R., et. al 2013).
1.4. Analyze how legal and regulatory framework impact on human resource management.
Human resource management is a methodology for the overall development of human resources in organization.In the process of human resource management legal and regulatory frameworkworks as safe wards for the employees against any kind of misconducts (Bratton, J. 2012). Following are the acts and regulations which make impact on the human resource management-
- Sex discrimination Act 1995/97- The act was established to protect the employees at work place by the discrimination on the basis of gender.
- Equal pay Act 1970- according to this act there should be no discrimination for compensation on the basis of gender, religion,cast etc.
- Employment rights Act 1996- The employment rights Act is incorporated to protect rights of the employees in the work place.
- National minimum wages Act 1998- The national minimum wages act provides minimum wages to every employee for per hour work which is decided in the act and categorized (Bratton, J. 2012).
Human resource management plays an important role in the growth of organization. The company cannot achieve its goals and objectives without effective work force. In the given scenario there is a high staff turnover which means the human resource management does not effectively adopted in the company. There is lack of human resource planning in the company which is estimation by the human resource manager about the requirement of staff and demanded qualities in the applicants. The finance manager is playing the responsibilities of the HR manager which is creating the problem of lack of motivation and direction in the employees and leads to decrease the ratio of employee retention. There are no policies for any human resource planning and recruitments are done by telephone interview before the face to face interviews. Human resource management is a process in which planning, staffing, training and development, and compensation are included.The initial stage of human resource management is planning. In which a data is analyzed and predefined for the requirement of staff in the organization and there should be a benchmark set for the applicants, these standards can be based on their degrees and diplomas and experience.To understand the importance of effective planning and selection we will study this report. The companies taken for the study of human resource management are two big FMCG Companies, Amway and Body Shop International having their business all over the globe (Bach, S. & Edwards, 2013).
2.1 Analyzing the reasons for human resource planning.
Human resource is a technique to optimum utilization of human resources in a company. It is a direction for the achievement of goals and objectives. For an effective management of work force in the organization planning is required and has its benefits in managing the work force. Planning is a futuristic approach and includes an estimation and analysis of data and makes a framework for the entire process of human resource management. In the companies like Amway and Body Shop International, human resource plays crucial role. The effective manpower generates more profits and increases the productivity of the company. The requirement of human resource planning can understand by following points (Bach, S. & Edwards, 2013).
- Ensure the required work force: A company cannot achieve its objectives without the adequate and efficient work force. If there is excess in the number of employees then the cost of production will be high of company as in the compensation is one of the largest costs of any company, and if the number of employees will be less than the required then it will reduce the productivity of the company.So there should be effective estimation of the required work force in the company. Amway and Body Shop International are Multinational companies so the need of work force is estimated by analyzing the requirements by different techniques.
- Cope up with changes: In today’s business environment where there is globalization, privatization and liberalization is there in the market, every company have to change itself with the change in the business culture. These changes are necessary for the growth of the company.Amway and Body Shop are multinational companies and have to plan according to the culture of every country. These changes can be organizational, cultural, technological and legal (Bach, S. & Edwards, 2013).
- Expansion and diversification of organization: Amway and Body Shop International are most profit earning companies of UK and have so many opportunities for expanding and diversifying their business. For applicability of these strategies and plans there are required many resources, and human resource is one of them. Human resource planning helps to manage these resources for these plans.
- Optimum utilization of resources: When the work force is effective and work efficiently it leads to the effective and optimum utilization of other resources.Goals and objectives cam be achieved by these effective utilization of resources.
The above points are the reasons and importance of human resource planning in the process of human resource management.
2.2 Outlining the stages involved in planning human resource requirements.
Planning – planning can be defined as a technique by which it is ensure that right candidate is for right job. In the planning process the requirement is estimated of number of work force by following the process which is given below.
- Analyzing the organizational goals and objectives: It is essential to analyze goals and objectives of organization, which will help to estimate the required work force to achieve these goals. The priority must be identified of company which will help to categorize the resources.Goals and objectives are wide of Amway and Body Shop and they analyze the motive which will influence human resource management (Mitchell, R., Obeidat,et al 2013).
- Gap identification by analyzing existing human resources: Analysis is done to identify the existing human resources and then gap is identified by calculating difference between goals and existing resources.it is an estimation of demand and supply of human resources. Companies like Amway and Body shop International keep analyzing their demand and supply of human resources in the company which helps to maintain the requirement of man power.
- Developing the plan: A plan is developed to fill this gap by recruitment of employees in the company. The plan includes all the decisions related to the methods and strategies going to be used in the human resource management, the prioritized aspects of the organization in the process of human resource management.Budgetary control and methods of communication and marketing are also defined in the plan of human resource management.
- Control: Control can be expressed as the monitoring of the activities of human resource planning. The process should be monitored effectively which helps to evaluate the variation in the performance and identify the reasons for that. Amway and Body shop controls their process of human resource planning by monitoring all the activities (Mitchell, R., Obeidat,et al 2013).
2.3 Compare the current recruitment and selection process in the organization with another organization you recommending.
Amway and Body shop International are taken for the comparison of recruitment and selection process. Both companies are FMCG companies of UK.
Recruitment is the technique to maintain the work force in the company by giving right job to right candidate. On the other hand selection can be defined as a process of choosing the appropriate candidate by analyzing the required qualities among the applicants. The process of recruitment and selection can be done by using various sources. Every source has its merits and demerits. Every company chooses sources by analyzing the goals and objectives of the company. In Body Shop International the current recruitment procedure is to take telephonic interview of the candidates and then shortlist them and call for face to face interview. We can see that the company is focusing on the external sources for the recruitment. External recruitments can be done by advertising the vacancy, placements from educational institutions, recommendation of existing employees.And selection from the applicants is done by choosing the appropriate candidate. This is an expensive technique for recruitment and time consuming also. There are advantages of collection of new talents in the company (Aravamudhan, & Krishnaveni et al 2015). On the other hand the recruitment policy of Amway is less expensive and effective also. The company adopts internal sources for recruitment of work force. Internal sources include promotion and demotion of existing employees, transfers in different departments and recommendations of existing employees. This approach for recruitment and selection is less time consuming and also removes the requirement of orientation period and initial training requirements.
2.4 Evaluating how effectiveness is the organization recruitment and selection techniques with another organization you recommending.
There are two types of techniques and sources for recruitment and selection process, internal sources and external sources.The Body shop is doing recruitments by external source in which the advertisements are given in newspapers, blogs, websites and trade publication announcements. The company is taking telephonic interviews to shortlist applicants and then face to face interview of remaining candidates. In the external technique of recruitment the time and money consumption level is high as in there is also required proper training about the work in the company and expenses over advertisement activities (Aravamudhan, & Krishnaveni et al 2015). Amway has adopted both the sources of recruitment in which the company tries to fill the gap by internal sources of recruitment but for the other requirements they applied for external sources. Internal sources include promotion and demotion, transfer of existing employees. This is a cost efficient approach to fill the gap in the work force. The company organizes promotions and transfers time to time to manage the human resource in the company.External sources are also used to appoint the managing human entrepreneurship managers in the company. The benefits of internal sources results as cost efficiency in the company and more productivity.This leads to the growth of the organization.
By doing this analysis we can conclude that in the process of human resource management, planning plays an important role to cover the gap in the quality and quantity of the human resource in the company.The study of two companies recruitment and selection policies are done to understand the effective and efficient methods of human resource planning.
3.1 Assess the link between motivational theory and reward at Virgin Media or your chosen organization. Your answer must show if you think there is a link, what connects the two.
Virgin Media is a part of the world’s largest international cable company Liberty Global Plc. The company virgin media is formed by the merger and amalgamation of NTL, Telewest and Richard Branson's. The company is providing broadband service to 4.49 million subscribers as per the estimation in first quarter of 2013.The company ownsUK’s largest fiber optic network which is making the company biggest privately built network (O'Meara & Petzall et al 2013). Motivation can be defined as the physiological process which leads the performance of individual or a group in the direction of achieving the goals and objectives of the company.Motivation is an approach towards increase in the intrinsic and extrinsic level of willingness of work and also enhance the involvement in the company if employees. The level of motivation is the parameter for the performance of the work force in an organization. Rewards works as tool for increasing motivation. Reward includes intrinsic, extrinsic and social rewards. Extrinsic reward includes the level of compensation employee gets by doing any work. Intrinsic reward is the satisfaction an employee gets by achieving a particular task. There are so many theories to develop motivation which relates by reward system.
Maslow’s hierarchies of needs, Herzberg’s two factor theory, Expectancy theory, Equity theory, X and Y theory is the well-known theories of motivation.In the process of human resource management motivation is a must factor which leads the activities of human resource in the direction of goals of the company. Human resource manager is responsible to motivate its employees by giving them reward and increasing involvement of employees in the company. Virgin media is a company with high goals and objectives and wide resources. Company has huge investments and number of customers so it is necessary to achieve quality performance. The company follows the following theories for motivation (O'Meara & Petzall et al 2013). In the Herzberg’s two factors theory the motivation level is determined on two factors. These two factors influence performance of the employees. These factors are as follows-
- Hygiene factors- Availability of these factors in the business environment helps to reduce any inconvenience in the work. It helps to motivate employees lead them in the direction of more productivity. These factors include security in the company, management quality, relations with the superiors and subordinated and rules and policies of the company.
- Motivation factors- These factors includes the self-achievement and self-recognition and a sense of responsibilities. When the employee found interest in his work it works as a motivational factor. Personal growth of employee is considered in this approach.
3.2 Evaluate the process of job evaluation and other factors determining pay at Virgin Media or your chosen organization.
Job evaluation is a process which analyzes the rank and value of the job. This evaluationhelps to categorize task and job on the basis of some criteria. This process is essential to execute human resource management. The company Virgin Media is the biggest privately built network so there should proper categorization of jobs and tasks to manage the human resource effectively. The following points are included in the process of job analysis (Hallman, G et al 2011).
- Job description and planning
- Job classification
- Job ranking and point rating
- Paired comparison
The company does the job analysis by two methods which are non-analytical method and analytical method.Non-analytical method includes job ranking, job classification and paired comparison.And analytical method includes point rating, factor comparison, and proprietary brand etc.
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 organization.
Reward is a tool to increase motivation and engagement of employees in organization. The objective of reward is to attract the most efficient staff which can increase growth of the company. Rewards help to maintain the staff retention in company as in it increases their involvement by motivating them that they are important for effective working of organization. There are different types of reward, intrinsic, extrinsic, and social reward. The company uses intrinsic and extrinsic rewards to increase the employee engagement by providing the organizational environment which have organizational values and effective work life balance, extra benefits, sense of responsibility, self-analysis, trainings and personal and professional development etc.Virgin media has effective policy for reward system (Hearn, S. 2011).
3.4 Examine the methods Virgin Media or your chosen organization use to monitor employee performance.
To control and evaluate the activities and performance it is required to monitor the performance of employees. It is a technique or method to maintain effective human resource management. Evaluation of performance is termed as to calculate the difference between the set goals and actual performance of the employees. This is a process to calculate the variance. The company Virgin Media choose the following methods to control and monitor employee performance.
- Checking the attitude and reviews- Line managers monitor the performance of the employees by checking attitude and taking reviews from their superiors and subordinates. He monitors that all the activities are executed by considering the organizational culture and ethics (Foss, N.J et al 2015).
- Ensuring the quality of work- The best way to monitor employee performance is to check the quality of work of employees and calculating any misinterpretation. It is also checked that the deadlines are meeting properly and to find out reason in case of delay in deadlines.
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.
As given in the case study that the owner of the chicken master Bob hired Faisal a 54 year old Asian male having experience of more than 15 years. There are clear instructions given in the company’s employee handbook which includes all the rules and policies of the company.The reasons for termination of Faisal are listed below.
- The capacity of employee is not highlighting in his work. He was unable to satisfy the employer with his work even after the trainings given by the employer.
- The misconduct of Faisal was also a reason for his termination from work. He was not mentally present in the work he was doing some unethical activities which is against the company’s culture (Quiñones, M et al 2013).
- This is a statutory or legal reason for termination by the employer. There is employee handbook which should be followed by the employees. This handbook explains that there should not be done any personal work by the office equipment. Faisal has not followed these rules and terminated by Bob.
4.2 Describe the employment exit procedures used by The Chicken Master and another organization of your choice.
According to the scenario in case study the procedure followed by the employer of Chicken Master is involuntary termination. In this type of termination the employee do not want to leave but fired by the employer and have a right to appeal in the court. In voluntary termination the employee leaves the company willingly for example retirement. There is no termination procedure is followed by Bob. But we can explain the process of termination as follows (Quiñones, M et al 2013).
- A written statement or a notice is given by the employer to the employee, including all the reasons which are base for this termination. It is a call letter also for a meeting of employer and employee.
- A meeting must be conducted before taking any action. This meeting is an interaction between the employee and employer. In this meeting all the reasons are explained to the employee.
- After the discussion the employee can appeal in the court for his rights.
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.
In the country UK there are a legal and regulatory framework is established to protect the rights of the employees in different prospective. There are so many Acts and regulations established to protect and manage employee’s problems in civil cases. If the employer of Chicken Master has terminated Faisal on the wrong statement of problems and the claim of Faisal was proven right then Bob will be punishable in accordance the following Acts and laws (Duncan, M. et al 2014).
- Sex discrimination Act 1995/97- The employer has replaced Faisal for a woman under the age 40.
- Employment Relation Act 2004
- Race Relation Act 1992
In case the claims of Faisal will be proven as true then he can demand his job as well as a good compensation from his employer Bob.
The Unit 3 Human Resources Management Assignment is covering all the aspects which are essential for effective human resource management in organization.It explains difference between human resource management and personnel management. Importance of all the aspect of human resource management are explained, like human resource planning, recruitment and selection, job evaluation, motivation and rewarding system, and process of cessation or termination of employment.
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Locus Assignment Help UK posting units solutions so scholars can explore assignment help and get review the quality of our work. ,this Unit 3 Human Resources Management Assignment is a study about the importance of human resource management and personnel management and explains difference between the traditional and modern approach of work force management.