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Unit 3 Human Resources Management Assignment Copy
In the Unit 3 Human Resources Management Assignment Copy the focus is laid on the human resource management and personnel management practices followed in the organisations. The study has focused on different activities like recruitment and cessation of employees and the strategies followed by organisations for retaining employees. This study would also review how to recruit and retain staff of right skills and their contribution to the achievement of organisational purposes. This report has identified that it is important for the organisation to follow motivational strategies to retain the employees. Report has also identified that the HR needs t focus on policies and processes that helps in retaining the employees.
1.1 Difference between human resource management and personnel management
Personnel management and HRM is a part of management which deals with relations of human in the organization. The objective of personnel management in Tesco is to maintain relationship which will result into enhanced contribution of personal in working of organization. Human Resource Management deals with application and understanding of procedures and policy which affect the working of people directly within working group and project team. At Tesco HRM practices includes the policies related to retention, recruitment, reward, training, personal development, career and training development (Boxall and Purcell, 2011).
Table1: HRM v/s Personnel management
Basis of comparison
The people mostly related to file rank are involved such as top management and board
All the people working within organization are involved including part and full time staff, resource person or consultant, middle and top management and board
Flex, part-time and full-time
Only formal setting
Both informal and formal setting
Types of function
1. few and simple
a. Management-labour relationship, b. screening social activities and recruitment,
c. personnel information
1. varied and complex
a. evaluation, designing and analysis of job
b. acquisition of human resources
c. planning, screening, recruitment, selection,
d. orientation, evaluation and assessment and motivation
e. movement analysis, compensation administration, benefits
f. management labour relations, services and participation program
5. Office in charge and department
Chief executive officer and administrative officer (Guest, 2011)
Human resource department
Records clerk and lawyer
Social science researcher and behavioural scientist
Line of managers at lower level
Chief executive officer and general manager at higher level
Emphasize on accomplishment of goals
Emphasize on accomplishment of both individual and organizational goals
a. structural and technical
b. reactive and inflexible
c. organization and control oriented
a. innovative and creative
b. proactive and flexible
c. socio-technical oriented
1.2 HRM contribution to organisational purposes
Following is the contribution of HRM to organisation purposes of Tesco-
- HR development- According to American Society of Training and Development, HRD is integration of career development, organizational development, training and development to improve organizational, group and individual effectiveness.
- Recruitment and Staffing- Recruitment is the process of employing new employees by following suitable assessment for a job position. In Tesco the employees are appointed to a job position based on their qualification and skills.
- Remuneration- It is the act of providing reward to employment in form of wage, salary and pay including benefits, allowances, incentives, bonuses and monetary values (Lengnick-Hall.et.al.2011). The remuneration in Tesco is done as per the job analysis
- Ethical issues- Human resource deals with ethical issues such as harassment and discrimination, privacy issues and employment issues, safety and diversity, health and safety, disability and race, layoffs and restructuring.
- Employee relations- The effort of company to manage relationships between employees and employers are called as employee relationship. Tesco’s organization mission is accomplished by effective use of people.
1.3 Role of line managers in HRM
Following are the role of line managers in Tesco:
- Recruitment and selection: Recruitment is the process of finding deserving candidates for anticipated or actual vacancies in organizations or it is an activity which link or bring those seeking jobs and those with jobs together. Selection is the filtering and screening process of job applications for vacant position.
- Compensation analysis: Compensation analysis utilises data collected about employees to determine and compare market value for compensation. It helps organization to frame compensation strategy and understanding labour market (Armstrong and Taylor, 2014). It results into improvement of productivity and employee retention.
- Benefits administration: It is the process of maintaining, establishing, managing benefits for employees of organization. Employee benefits include pension plan, medical insurance, vacation time, individual retirement accounts (IARs), maternity leave and sick time.
- Training and development: It is a function of HRM which is concerned with activities organization aimed at improving the performance of groups and individuals in organizational settings (Van Buren.et.al.2011).
- General employee administration: General employee administration includes enrolling new hire, billing, performance tracking, payroll, training and development, etc.
1.4 The impact of the legal and regulatory framework on human resource management
The legal and regularity framework influencing HRM at Tesco are as follows-
- Race Relations Act 1992
- Sex Discrimination Act 1995
- Race Relations Amendment Act 2000
- Equal Pay Act 1970
- European Working Time Directive
- Disability Discrimination Acts 1995
- Employment Act 2008
- Work And Families Act 2006
- Employment Relations Act 2004
- Data Protection Act 1998
- National Minimum Wage
- Employment Tribunals
Tesco policies comply with the above mentioned legislations. For example, employees can enjoy both paternity and maternity leave that are their legal right. Organizations may face penalties, complex and complicated legal battles and suits, if they are not complying with mandatory legislations (Boxall and Purcell, 2012). Legal and regulatory framework protects employee’s rights, provides standardization of HR practices, prevent discrimination, attract talented labour market and develop good reputation and image of organizations.
2.1 Need of HR planning in organisations
HR planning is the procedure of estimating the future requirement of human resource in the organization and then taking required action to fulfil this need. The reasons for human resource planning in Tesco are as follows-
- To estimate the future need of manpower: For smooth operation of Tesco, it is required to assure the future availability of manpower. Human resource planning acts as a tool to estimate the future need of manpower.
- Managing change: Tesco is exposed to external factors of business environment and it is required to cope up with the change in environment. HR inventory adapts the change in political, economic, social and cultural, and legal environment.
- Recruitment of talented employee: Human resource planning at Tesco helps in recruiting the qualified and talented employees in the vacant position. Human resource planning estimates the requirement of human resource, HR inventory level, and finally recruit HR to perform business operation smoothly (Goetsch and Davis, 2014).
- Development of HR: Human resource planning recognizes the skills required for a particular job. Then it plans training and development program for employees to impart the skills required to complete the task.
- Proper utilization of HR: Human resource planning estimates the acquisition and utilization of HR to achieve goals. It also helps in acquiring skilled and talented HR. It maximises the utilization of HR and minimises the cost.
- Reducing uncertainty: Human resource planning reduces the impact of uncertainty in the procedures and processes of HRM in organization.
2.2 The stages involved in HR planning requirements
- Job analysis- It is the primary process which is used at Tesco to collect information regarding job through survey, observation, interviews and questionnaire. It involves job specification and job description. Job specification includes the characteristics required for the job such as skills, knowledge and capabilities. Job description includes the details of the task associated and responsibilities of a given post.
- Forecasting- It includes both demand and supply forecasting. Demand forecasting includes estimating the number of employees of specified abilities, skills and knowledge that company will require in future. Supply forecasting is estimating the availability of employees both internal and external (Goetsch and Davis, 2014).
- Selection of candidates for employment- Recruitment is the procedure of identifying and selecting the right person for right job. It is of two types- internal and external recruitment. Selection is the process of choosing and evaluating best candidate out of the pool of qualified candidates applied for the position.
- Training- It is the planned effort to improve the performance of employees by training them job-related behaviour. Trained employees act as asset for organization as they help in achieving organizational goal.
- Performance appraisal- It is the process of evaluating the strengths, weakness, job related achievements and improving performance. It results into employee motivation, personnel movement, identify the requirement of training and receive employee feedback (Stone, 2013).
- Compensation- It includes the direct wages paid for the amount of worked, indirect benefits as part of employment and incentives for good performance received by employees.
2.3 The recruitment and selection process in two organisations
Recruitment is a public relation exercise concerned with obtaining a field of suitable applicants. The objective of recruitment is to obtain right kind and right number of people. Thus, it can be concluded that recruitment is the process of finding the right person of right kind at right time for right job to fulfil organization’s objective. The common methods of recruitment are advertising, word of mouth, agencies, head hunting, consultants, career fairs or exhibitions and internet. Selection is the process of identifying the most suitable candidate among the applicants. The study compares the recruitment and selection process for the position of store manager. At Tesco, preference is given to the employees within the company. The notification for the internal vacancy is given on the company portal. The notification has the details about the requirement. Interested candidates can apply through internal job portal. Shortlisted candidates undergo the interview process and a candidate is finalised. In case Tesco does not find the appropriate candidate within the organisation, it looks to hire external candidates.
The selection of candidate at ALDI starts with resume collection and their short listing of candidates followed by a personal interview which is popular and an interviewer requires high skills to identify the suitability of the candidate. References from employees are again a method of recruitment and selection which is popular at ALDI but it is difficult for HR manager to predict the results of the candidate. Psychological tests are another method of selection which is not very popular but its predictive results are good (Sarkis.et.al.2010). Assessment criteria are method of selection which is becoming popular these days and is a useful predictor but this method involves cost. Work sampling and work test is less popular method of selection which is not used often but it is one of the best predictors. Computer recruitment networks are also useful resource of recruitment and selection.
2.4 evaluate the effectiveness of the recruitment and selection techniques in two organisations
Effectiveness of recruitment in Tesco –
- Tesco considers its employees for higher position for internal recruitment. This increases the morale of the employees as they are given preference over outsiders
- It develops a good relation between management and employees
- It provides a growth opportunity to well-experience, qualified and talented employees
- Already existing employee will perform better as they are well aware about the system
- It involves less time and cost in recruiting employee
Effectiveness of external recruitment in ALDI –
- It gives wider choice of selection for company as external recruitment provides large pool of qualified and talented candidates.
- It introduce new ideas and fresh talent into organization
- It introduces new skills, knowledge and process in organization
- It develops a culture of healthy competition within organization (Daramola and Ibem, 2010)
- It provides opportunity to other candidates to apply for position in the organization and provides wide option to organization to select.
Effectiveness of aptitude test as selection criteria in Tesco–
- It provides a basis to assess the suitability of candidate for the job
- Mental capacity and aptitude of candidate helps the selection committee to evaluate the suitability of the candidate for the required job
- This method is not subjective but objective
- It provides a uniform base to compare the performance of candidates. The score of test helps to set a criteria of selection
- It will give more customer satisfaction to the candidate that he has qualified a test to gain the position among others
- It reduces the employee turnover ratio as the right candidate will be selected for right position (Perrow,2011)
Effectiveness of interview method for selection in ALDI-
- It helps in accessing the communication skills required to perform the job
- It helps in gaining supplementary information about applicant
- It helps in checking the verbal fluency, confidence and knowledge of applicant
- It helps to choose few candidates among the pool of equally qualified candidates
- It helps in accessing the compatibility between employer and employee
- Employer can ask candidate to reveal important information which is vital for making selection decision
- Important information can be collected through interview
3.1 The link between motivational theory and reward
Motivation can be defined as a procedure which directs an individual to achieve a goal or objective. There are three types of reward which are extrinsic, intrinsic and social rewards. The tangible benefit an employee receives in return of his efforts is called as extrinsic reward. The psychological reward that an employee receives from his work experience is intrinsic reward. The sense of belongingness, common purpose and being with other people acts as social reward for employees. The forms of extrinsic rewards at virgin media are performance bonuses and cash rewards.. The forms of intrinsic rewards are feeling of accomplishment and satisfaction from work (Castellanos?Ryan.et.al.2011). Intrinsic rewards can motivate an employee by helping him finding his personal meaning, by developing a positive and open atmosphere, varying the roles in work, being enthusiastic and developing an environment of learning.
Maslow’s hierarchy of needs (1954) defines the internal and external needs of a person at five stages and a manager can motivate an employee to perform better by fulfilling his needs. According to Maslow, the first need is physiological need, followed by safety and social needs, then esteem needs and lastly, self-actualization. A person reaches to next level of need only when the first level of need is fulfilled. To fulfil the physiological need, a manager should arrange seats and should ensure proper light and ventilation, comfort and adequate breaks. To fulfil the safety needs, a manager should follow safety rules, treat employees fairly, and maintain privacy and confidentiality.
Social needs can be fulfilled by developing a sense of belongingness by encouraging participation in groups, offer interactions with others and providing cohesive environment (Bühler.et.al.2010). The esteem needs of the employees can be fulfilled by welcoming ideas, praising, offering recognition and treating staff with dignity. The self- actualization needs can be fulfilled by developing and supporting career structure, being positive about future, promoting enthusiasm and optimism.
3.2 The process of job evaluation and other factors determining pay
Factors determining pay are as follows-
- Job evaluation: It is the process of systematically assessing and analysing various jobs to identify their relative importance in the organization. The job is evaluates on the basis of set of skills and qualifications required to complete the job. Thus, it helps in determining which job should be paid more than others.
- Cost of living: Generally, the wages are determined on the basis of cost of living in terms of consumer price index and general price level (Cocca and Alberti, 2010).
- Government legislation: The policies related to wages and salaries paid to employees also influences the pay for a job as the pay cannot be fixed below the level set by government. Government has set the hours of work, minimum wage rate, payment of allowances or bonus, equal pay for equal work, etc.
- Ability to pay: When a firm prospers and is able to pay high wage to labours, then they demand an increase in wages. If the organization is not paying the competitive wages and salaries to employees then they will switch their jobs to other organization.
- Demand and Supply: The skills required by firms create demand for employees or labours and the number of skilled labour available in the market constitute the supply (Danish and Usman, 2010). If the supply of labour is low, then it will increase the wages and vice-versa.
- Productivity: productivity of the organization increases, then only it is able to reduce costs and increase wage rate. Thus, an organization can motivate employees to increase productivity to increase pay.
3.3 assess the effectiveness of reward systems in different contexts
The organizations which are performing well manage their reward system in a way to that predicts the best way to achieve desired result. There are different approaches to reward systems. Scientific and evidence based approach is one of such approaches. To form a scientific and evidence based benefits and incentive plans is costly. Organizations are widely using pay benchmarking and balanced scorecard to justify and evaluate reward practices. (Odom.et.al.2013) studied the impact of change in pay structure on the performance of employees and they concluded in their study that the management should keep realistic view while evaluating the performance of employees. (Domínguez.et.al.2013) suggested that evaluation of reward system is last but not the least step in compensation management.
(Campbell.et.al.2012) suggested that the reward system should be redesigned of reformulated on the basis of evaluation of reward system. Scott et. al. (2006) described the approach with following six steps (i) setting objective and goal (ii) recognizing criteria of evaluation (iii) choosing an evaluation method (iv) collection and analysis of data (v) interpretation of finding (vi) developing and implementing strategies. For identifying the appropriate rewards, it is important to carry out analysis internally as well as use benchmarking.
3.4 The methods organizations use to monitor employee performance
The methods used by organizations to monitor employee performance are as follows-
- Rating performance –
- There are two approaches to rate the performance which are behaviour oriented and result oriented.
- Halo effect- when a manger rate the employee high or low on the basis of one characteristics
- Manager develops a pattern to rate employees and there may be errors in the rating by the manager (De Stobbeleir.et.al.2011).
- Helps in gathering information related to developing and managing performance
- Helps in identifying the problem faced by employee in achieving goal
- Find the best way to complete the task
- 360 degree feedback
- One-on-one conversation with each employee
- Difference between expected and actual results
- Asking for the reasons behind failure in achievement of goal
- Helps in keeping track of performance
- It includes checklists and activity log
- Employee can track his performance on the basis of meeting deadlines and goals (Eckerson.et.al.2010)
- Review work-in-progress
- Estimating whether the employee is working well during the process of job
- It tracks work-in-progress than evaluating finished goods
- It makes employee more careful with his work
4.1 The reasons for cessation of employment with an organisation
Following are the reasons for the cessation of employment with in Chicken Master-
Table 2: The reasons for the cessation of employment with an organization
When an employee misconduct or there are large number of complaints against employee for unfair dismissal
When the employee does not have required skills, qualification and ability for the post and unable to perform the job satisfactorily.
In case of redundancy, the employer may fairly dismiss the employee (Yang.et.al.2012).
The loss of important document which make the candidate eligible for a job, will prevent the continuation of employment.
Other situations such as misrepresentation or fraud
4.2 The employment exit procedures used by two organisations
The general employment exit procedures or steps used by organizations are as follows-
- Right to notice from both parties of contract- employer and employee
- Written reasons for dismissal
The employment exit procedures or steps used by Boston University are as follows-
- employee should provide resignation letter in writing
- date should be mentioned in resignation letter (DeTienne, 2010)
- payroll coordinator should have correct balance information
- the termination form is completed on SAP by payroll coordinator
- employee is required to contact HR consultant to know about status of benefits
- disable email account, close computer access, deactivate long distance access code, remove the name of employee from website, email group, building directory, phone list and distribution list
- collect keys of cabin and drawers, ID card, business card, tools, laptop and uniform provided by organization
The employment exit procedures or steps used by Chicken Master are as follows-
- Employee is required to remove all the personal e-mails from the computers accesses by the employee (Mowday.et.al.2013)
- Employee is required to contact benefits specialist in case of retirement to review situation of retirement
- Organization has an exit e-mail alert where employee is required to mention his name, contact number, department, updated address and last date of work.
- Employee is required to submit formal resignation letter and separation form to HR and payroll department.
4.3 The impact of the legal and regulatory framework on employment cessation arrangements.
It is vital for Chicken Master to maintain legal and regulatory framework on employment cessation arrangements in this competitive business world (Grubb & Wells, 1994). The conditions and terms of cessation and exit procedure of employment are to be followed by each and every organization. The legal and regulatory frameworks bound the organization from dismissing any employee wrongfully or unfairly (Abdi and Aulakh, 2012). The organizations are required to give prior notice period to employee before dismissing him.
Wrongful dismissal means employer is breaching the contract of employment. In such case, employee can sue employer in court. Thus, it is required that employer perform all the paper work; ensure that no contract is breached. Unfair dismissal means the fair reasons defined in the statutory grounds which can terminate a contract. There are six such fair reasons which are incapability, redundancy, misconduct, planned retirement, illegality and other substantial reasons. The employer is required to follow these six fair reasons to terminate an employment contract (Leighton and Wynn, 2011). An employer is required to follow fair procedure before terminating an employment contract even in the case of fair reasons. The employer is required to first give warnings to the employee.
Personnel management is a part of management which deals with relations of human in the organization while Human Resource Management deals with application and understanding of procedures and policy which affect the working of people directly within working group and project team. Legal and regulatory framework protects employee’s rights. Human resource planning is the process of estimating the future requirement of human resource in the organization and then taking required action to fulfil this need. Recruitment is the process of finding the right person of right kind at right time for right job to fulfil organization’s objective while selection is the process of identifying the most suitable candidate among the applicants. Rewards can motivate an employee to perform better. The organizations which are performing well manage their reward system in a way to that predicts the best way to achieve desired result. It is vital for organizations to maintain legal and regulatory framework on employment cessation arrangements in this competitive business world
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