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Unit 3 Sainsbury HRM Assignment
Diploma in Business
Unit Number and Title
Unit 3 Sainsbury HRM
Sainsbury is belonging to retail industry and they are operating business in various countries. The present study will define difference between personnel management and human resource management. Further, study will assess functions of HRM and roles and responsibility of HR manager and line manager. The unit 3 sainsbury HRM assignment will also explain legal and regulatory framework followed by the HRM. The study comprises purpose of HR planning for Sainsbury and stages that are involved in HR planning and development. Moreover, the study also defines processes which are used for selection and recruitment of candidates. The study also presents the relation between motivational theories and rewards & process of job evolution and pay scale according to related factors. At the end, the study will elaborate the methods used by Sainsbury in order to monitor the performance of its employees The last section of the report will review the exit procedure of Chicken Master & legal and regulatory frame work.
1.1 Difference between Human resource Management and Personnel Management
Human resource management (HRM) and personnel management are interrelated and have few differences. Sainsbury is the second largest supermarket chain in United Kingdom use HRM for recruitment, staffing and compensating human resources where as personnel management is used to manage employee-employer relationship and human resource capabilities. Personnel management is the conventional way to develop an organization with human power (Storey, 2014). The term “Human resource management” is said to be a modern approach of personnel development as it handle the growth of organization and its human resources.
Sainsbury’s management helps it to parallelize the growth of organization and the employees. Company’s human resource department makes the policies to motivate and enhance the capabilities of employees. Personal management which is a sub part of human resource management helps to obtain maximum outcome from the input of available human resource. Besides management task, Sainsbury also focuses on relation of workers and recruiters. Personnel management in Sainsbury is at top of authority to take decisions whereas human resource management is liable to take judgment in a group based on employer’s rights and responsibility (Bratton and Gold, 2012). Also personnel management specifies the job for a specific division of workers and this is the task of human resource management to distribute the task among the team to accomplish it. Personal management is not liable to report human resource management team.
1.2 Human Resources Management assists the organization in achieving the goal
Sainsbury’s human resource management helps it to attain organizational objectives in an efficient manner. Achievement of specified goals depends on the skills of employees and training provided them to accomplish the task. Sainsbury’s human resource department performs following functions:
- Human Resource Planning: Main functionality of human resource management is to analyze the need of human resources to accomplish organizational goal. So that, exact number of employees can be predicated to perform the task (Stredwick, 2013).
- Distribution of job: Sainsbury’s management is responsible to distribute the responsibility and job among team members according to their skills and experience. So that, individuals capability can be used to attain organizational goal.
- The selection of skilled and experienced candidate is required for welfare of company. Sainsbury’s management is liable to provide such candidates to company to ensure right task can be performed with their skills. Recruitment is based on the analysis of human resources.
- Another main function of Sainsbury’s HRM is to convert and direct the human resource in right direction so that specified goal can be achieved within time frame. Company uses the positive approach like motivation and trainings to achieve goal.
- Training and development: Crafting of skills into business need is an important task of HRM. Development of proper training strategy and training material is necessary to enhance the employees’ capability and to make them trained to achieve quality in result. Training is useful to reduce the efforts required to achieve a goal (Bamberger.et.al.2014).
1.3 Roles and Responsibilities of Line manager in Human resource Management
Employees can convey their queries and obscurities with HR department via Line manager. Line manager is the communication channel to provide the right solution and knowledge to employees either by self or the instructions received from the HR department. It governs the process of task to accomplish in time and with a quality standard. Line manager also indentifies the trouble sources to increase the productivity (Kerzner, 2013). Line manager’s roles towards human resource management are:
- Employee Engagement: Main role of line manager is to keep the workers’ interest in task until the accomplishment of task. Line manager distributes the task among team to reduce the burden on individual. Sainsbury’s management uses the open communication to interact with employees. Also, various types of tools are used to measure employees’ interest in task.
- Performance Appraisal: Individuals performance is measured by line manager to decide appraisal. Also, performance measuring helps to reduce the operational cost. Rating provided by line manager helps HRM to calculate the appraisal for employees at the end of task.
- Disciplining Employees: Line manager monist the use of polices and rules within team so that a disciplined and sincere working environment can be created. In Sainsbury, employees discipline has a great impact on their appraisal (Hill.et.al.2014).
- Performance based Pay: various factors are taken into consideration to decide the employees’ performance and their pay scale is decided by the line managers of Sainsbury. Line manager measures the performance and forwards it to HR managers to praise or dispraise an employee by a certain amount of pay.
1.4 Impact of Legal and regulatory frame work on Human Resource Management
Governmental rules and regulations help employees to protect their opportunities in equal to all and remove the discrimination issue. Employees feel free and satisfied when their welfare and work is considered equal in an organization. Sainsbury provides equal opportunity to all to express the talent and ideas. Employees work is appraised with bonuses. Following points list the effect of legal and regulatory framework on HRM:
- Equal salary for equal task:It is the responsibility of HR management to follows Equality Act which stated that every employee should get equal amount of payment for equal amount of work. Employees can report and claim supportive fund if any discrimination happens regarding pay (Bratton and Gold, 2012).
- Minimum pay rate: Act of minimum wage- 1998 ensures the minimum payment of an employee in an organization to manage daily expenditures. Sainsbury’s management pays efficient amount to employees to keep their interest and satisfaction in job and helps to motivate the employees indirectly.
- Personal data of an employee in Sainsbury is protected by governmental rules so that company cannot reuse/ share with third parties without acknowledgement of employee. It also helps company to build branding values among the employees and outside the organization (Wilton, 2016). This is the responsibility of human resource department to keep the information secure and inaccessible from unauthorized users.
2.1 Reasons for human resource planning
The company is required significant planning of human resources in order to systematic analysis of HR needs. HR planning gives surety to the company about correct number of employees with appropriate skills. The HR department of Sainsbury Company is completing several tasks such as recruitment, training, retirement services and career development. The most important task of HR planning is employment advertises and recruitment (Armstrong and Taylor, 2014). The HR planning also identifies business promotion , salary and career improvement of employees. Following points depict the reason for human resource planning:
- Evaluate Under supply and Over supply of man power:HR planning is mainly collecting the information about number of employees in the company and what are their skills. It evaluates human resources against demand. If demand is high and lack of labor then it recruit employees in order to fulfill demand.
- Training:HR planning is required to provide for recruited employees at empty place. HR department of Sainsbury improve the skills of employees and train them for better productivity. The training session is required to maintain quality of standard for company.
- Selection of right candidate: HR planning also analyze about skills for empty place so the HR manager is able to select right candidate at right place and at right time. It organizes test and interview to evaluate knowledge of candidates before recruitment. Apart from this, Company is also involved effective planning process to engage the candidate for long time (Storey, 2014).
2.2 Stages involved in planning human resource requirements
Human Resource planning includes various stages so that Sainsbury Company can identify manpower needs at work environment. It also defines required skills in order to select right candidate. The stages are given as follows:
Figure 2: Stages involved in planning human resource requirements
- Inventory of Present Human Resources:The first stage is related to maintaining records of present employees. The record explains number of employees, their performance, capacity and potential. The labor requirement can be fulfill on basis of internal source. Therefore, records are updated on timely manner (Armstrong and Taylor, 2014).
- Demand forecasting:Human resources are required at various positions at workplace. This stage identify job profile according to demand. A proper job description and job specification is designed on the basis of demand. In order to fulfil such demands internal and external resources are measured.
- Indentify Manpower Gaps:This step matches demand and supply of manpower that would lead to surplus and deficit of human resource. In case of low demands, Sainsbury surplus the human resource that means terminates them. Whereas, in case of high demand, it deficit human resource which means hiring candidate to fulfil gaps. It analyzes the requirement of manpower at this stage (Flamholtz, 2012).
- Supply fore casting: In this step HR department identify supply resources like internal resources to fulfil human resource demand. If the demand cannot be fulfil by internal resource then it jump into external resources i.e. institutions, recruitment agencies, consultancies etc.
- Formulate Action Plan: This is last stage of HR planning which is implemented according to surplus or deficit. This is final planning about new recruitment, interdepartmental transfer and training. In case of deficit, this step designs a plan for termination, and retirement schemes.
2.3 Comparison of recruitment and selection process between two organisation
Sainsbury Company is implementing equal opportunities for the candidates who apply for interview. The company is offering salary on the basis of talent of applicant whereas Tesco Company is paying the candidate on the basis of experience. The recruitment process of Sainsbury Company is including online form submission of candidate. Then the candidates are called for interview. Sainsbury Company is including three stages for selection. All the stages are performed at various shops of company. It includes aptitude, group discussion and technical interview (Scott and Davis, 2015).
On the other hand, candidates can apply for job at Tesco Company by performing an online test. The company is calling only those candidates whose performance is good. In this way, it would reduce burden on HR manger at work place. Now, the HR manager is able to start recruiting process from next stage. The next stages at Tesco includes mathematical aptitude, analyze mental ability, capability to handle various situation and personnel interview. Therefore, Tesco Company is using advanced tools for selection and choosing best talent for their company. The next stages of recruitment are including some video clips related to different situation. The applicants need to analyze video clips and give suitable answer according to situation. This would give a mental idea and thinking to HR manager (Armstrong and Taylor, 2014). Apart from this, candidates required to solve mathematical test and puzzles. It would express speed and accuracy of candidate. They are selecting best performer on the basis of two stages. This would be beneficial for HR manager to select and recruit talented people in their work place. Sainsbury should adopt such selection and recruitment scheme to choose right person for right place. This would also give competitive advantage to company.
2.4 The effectiveness in recruitment and selection techniques in two organisation
The recruitment and selection planning is significant for any company to meet future needs of employees. This process is select fresher staff to fill empty post and train existing staff to make them responsive. The performance of the organisation is based on selected employees. Inappropriate selection decision would decreases effectiveness of organisation and development strategies. It has been seen that unfair individual selection process difficult for manager and also deal with unsuitable candidates. The major effectiveness of selection and recruitment of Sainsbury and Tesco is to gain competitive advantage (ALDamoe.et.al.2012). They are able to take appropriate decision to fill gaps. Their effective process is finding most suitable candidate with accurate qualification and skills to do the job. Their fair selection process does not create discrimination on the basis of colour, race, nationality, age and sex. Both the organisation is using effective selection process. Sainsbury Company is mostly choosing their applicants from educational institute so that they are sure about the candidate are capable in particular field. Interviews and background checks ensure the company that they are taking reliable candidate and able to provide quality of services and goods to consumers (Snape and Redman, 2010).
3.1 The link between and reward at Sainsbury
Motivation is a procedure by which individual desire and willingness to work is increased by management. It analyzes goals of the organisation and defines needs of staff in order to achieve goals. Motivational theory and rewards are used to offer financial and non financial rewards. The motivational theories are divided into two types:
Figure 3: Types of motivational theories
- Process Theories
- Content Theories
Process Theories are mainly influence procedures which are followed by motivation. On the other hand, content theories are used for develop procedures for company. Rewards are related to achievement that workers get due to their hard work and efforts. The reward can be financial or non financial. Sainsbury Company is giving financial awards when an employee is achieved benchmark performance (Chevallier.et.al.2012). The organisation increase payment, bonus and promotion for better performance. The management set a motivational strategy also. Sainsbury Company is using them to improve behavioural activity for work. The company is creating positive and healthy environment at work place. The HR department of Sainsbury is analyzing the individual performance according to objectives and standard of task. The rewards are given to employees according to their performance. Such kind of activity would motivate other employees to increase their level of performance. A manager is using process and content theories to motivate employees. The organisation is using motivational theories to motivate their employees by weekly, monthly or yearly bonus (Lepper and Greene, 2015). It has been cleared that financial and non financial rewards play vital role in order to motivate employees. Therefore, motivation and rewards are related to each other in order to increase performance and employee engagement.
3.2 The process of job evaluation and other factors determining pay
Job evaluation is a process to find verity of jobs in order to gain goals of company. It also determines value of employee within organisation. The aim of job evaluation is to verify worth of job. This would used to define salary structure on the basis of ob evaluation. There are some organisational factors which are used to evaluate individual performance of the employees and further, job evaluation influences their performance. Sainsbury Company is offering wages as per international standards related to each job. The candidates which are recruited are first test on the basis of respective job (Rummler and Brache, 2012). The test methods are differed for different jobs. The management wants to gain competitive advantage so they need to hire new staff member. Pay estimation is also required to set before selection of staff.
The hiring procedure is first going to job evaluation procedure which defines knowledge, skills, qualification and ability. A person’s qualification, skills and knowledge are best meet then he/she would be selected. The salary is offered according to job evaluation. Sainsbury Company is set pay scale of a person based on government legislation criteria of minimum wage rate. The company is determining demand and supply of human resource. Job evaluation is helpful to set target at each level. The organisation is allotting target to individual and set performance standards. The staffs are paid according to target completion (Bratton and Gold, 2012). The rewards are used to motivate the employees to achieve performance standards and targets. Therefore, job evaluation is improving job hierarchy and pay structure for employee.
3.3 Effectiveness of reward systems in different contexts
The reward system is used by Sainsbury to motivate their employees in order to gain bench mark performance. The reward system is of two types one is financial and other one is non financial. Financial rewards has included bonus, increment in salary and improve commission. Second one is non financial rewards which include promotion. The organisation is using such rewards to encourage the staff. Reward is method that encourages staff to improve their work quality and improve employee commitment (Armstrong and Taylor, 2014).
Sainsbury’s manager is implementing both the methods to encourage their employees. But they are considered and mostly used financial method to motivate employees. They gain result from such methods like improve productivity and efficiency. Motivators are also considering financial method as best method which positively impact on workers. The organisation is wanted to gain core skills and capability in order to fulfil demands rapidly. Therefore, motivation is required to include reward system (Lepper and Greene, 2015). The performances of the workers are improved by sharing profits. It has been analysed that Sainsbury Company is using reward system mainly for influencing performance and overall productivity. The customers would gain rapid services and quality of products also. Therefore, this would give competitive advantage to the company. In this reward system are include for best use of human resource of the company.
3.4 The methods organizations use to monitor employee performance
Organisations are using various methods for monitor the staff members and analyze their performance. Sainsbury is generally used observation method to monitor individual performance. The HR manager is observed utilization of resources according to company standard. This method is used to provide a better support to employees (Rummler and Brache, 2012). The employees are motivated for better utilization of available resources. The management of Sainsbury is able to make training program. The monitoring methods evaluate individual performance so it would find out need of training. The training program is implemented due to overcome performance issues. Another method for monitor employees is 360 degree. The HR managers of organisations collect information knowledge about employees from customers, supervisors, department head and peers. It would find out effectiveness and work ability of each employee. 360 degree method is generally preferred by companies because it evaluates actual performance of workers (Bratton and Gold, 2012).
4.1 The reasons for cessation of employee in an organization
Company needs to provide a genuine reason behind the termination of employees. Termination is possible in probationary or employment period. In case of Sainsbury, termination of an employee is possible due to the following reasons:
- Poor Performance: There is no need for the employees with poor performance. Business demands productivity within the given salary. Continues inadequate performance results from employees may become the reason for their termination. Benchmarking on individuals performance by HRM is considered to take decisions to retain or fire an employee.
- Business Conditions: Economic situations of business like high operational and managerial cost may force to dismiss the employees. Termination may be temporary to get ride the conditions and employees can be called back to join or may be permanent to terminate the business (Shanock.et.al.2013). Legal procedure is followed to terminate employees.
- Many leaves: Employees may be terminated due to many and irregular leaves. Behaviour of many leaves reflects that employee is not giving proper attention toward job and may fail to complete the assigned task within time. Considering these facts, employee can be terminated by management.
- Behaviour and manners: A company always tries to find an employee with positive thinking, personality, well behaviour and manners. Company expects that employees will behave well at workplace. Company may fire employees due to their short temper and misbehave (Bardoel.et.al.2014).
4.2 The employment exit procedures used by two organizations
Sainsbury defined a specific procedure to follow when an employee retires or leaves the company. Every employee needs to inform in written at least two weeks prior to resign so that management can arrange alternatives and start the exit procedure. Within those two weeks, employees can roll back decision or may stay on it to leave the company (Klotz and Zimmerman, 2015). HR department follows the following steps to complete the request of resignation:
- Inform to HR to left the company on a specific date.
- Written letter from employee to ensure resignation.
- Procedure on resignation letter.
- Acceptance of resignation.
- Handover of all documents of employee.
- Clean out financial terms and cancelation of signature authorization.
- Return company’s assets back to company like ID cards, bank cards and other documents.
- Organize a proper employee exit interview to satisfy the closure (Buckley.et.al.2015).
Legal documents are prepared with the authorized signature of HR managers and company owner to finalize the exit procedure. Feedback is taken from employees to know the reason of resignation and any further improvement that is expected from company. So that further changes can be made toward the satisfaction of employees.
4.3 The impact of the legal and regulatory framework on employment cessation arrangements
Legal and regulatory framework is designed to manage the employees and company behaviour under several conditions. Chicken master follows a legal procedure to employ a candidate. Addition to it, another legal procedure is also followed to ensure the right existing of an employee. These procedures help to avoid any future contradiction between employee, company and rules. Chicken master’s human resources are managed and arranged by human resource management department. Proper exit procedure is followed by HR department in cessation of an employee. However, this has negative impact on company’s brand value but may help to overcome temporary economic conditions (Kassinis and Stavrou, 2013). Also termination of unproductive workers helps company to plan new ways to build brand value.
Although, company follows all the legal rules and regulatory in the cessation of an employee but modification in global HR management has a great impact on existing structure. As Sainsbury, defines a set of rules to clarify the criteria of termination in documents when a candidate joins the team. Also organization needs to provide strong reason to dismiss an employee from work because it cannot use the discriminations of age, sex and religion to fire an employee. Thus, the impact of governmental rules can be easy predicted on an organization (Kruppe.et.al.2013). Some time, company with minor business uses the pre-existing agreement under the regulation of ICE to give importance to legislative criteria to emphasis on business target rather than to puzzle with rules.
This report concluded about distinction between human resource management and personnel management. It has analyzed impact of legal and regulatory frame work on Hr planning. The study has also identified effective recruitment and selective selection process of Sainsbury. The company is select candidate by follow fair selection process and no discrimination with candidates. The research also defines importance of HR planning for Sainsbury organisation in order to gain competitive advantage. The company is followed guidelines which are designed by regulatory authorities. The company is recruiting candidates in order to fulfil demand of human resource. They are choosing interview methods for ease of applicants. The report indentify that company is implementing financial rewarding method to motivate their employees. The report elaborates exit procedure of Chicken master in work environment.
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