Human Resource management

Plagiarism Clause

Prepared by Dashny Sarvaloganayagan

Edexcel no

Lecturer Mr. Amila Bandara

Unit code K/601/1264 K

Human Resource Management

Human Resource Management Individual Assignment

Batch Number : Page 1 of 10

I, Dashny Sarvaloganayagan affirm that, the attached work is entirely my own, except where the other

words or ideas of other writers are specifically acknowledged through the use of inverted commas and

in text – references. This assignment has not been submitted by any other students at American

college of higher education or any other institutions. I have revised, edited, and proofed this paper

submission.

.........................Signature

……………………….Date



Acknowledgment

I would like to express my deep sense of gratitude to all those who helped me directly and indirectly

in completing this HR assignment for I have completed my project effectively and moreover, on time.

I would like to express my special thanks of gratitude to my Lecture of Mr. Amila Bandara. He gave

me moral support and guided me in different matters regarding the topic. He has been very kind and

helpful, whilst suggesting to me the outlines of this project, and correcting my doubts. I thank him for

his overall support. I would like to thank my college to give me golden opportunity to do this

wonderful project on the topic Human Resource Management and I came to know about so many new

things.

Thanking you.

Dashny Sarvaloganayagan.

Introduction



Human resource management has become more important factor for consideration in an

organisation. HRM has come with new procedures which will affect the organisational goals

and the employees of the organisation as a whole. In the history of managing people within

an organisation was called as ‘Personnel management’ and it was just a traditional method of

controlling people. With the time it has been changed to Human Resource management

which is more flexible and more organized as well. As HRM has shown its effect on

organisational goals and development and also employee controlling, it has now become a

vital part in every organisation.

Contents



1.1 Distinguish between personnel management and human resource

management.

1.2 Assess the function of the human resource management in contributing to

organisational purposes.

1.3 Evaluate the role and responsibilities of line managers in human resource

management.

1.4 Analyse the impact of the legal and regulatory framework on human

resource management.

2.1 Analyse the reasons for human resource planning in organisations.

2.2 Outline the stages involved in planning human resource requirements

2.3 Compare the recruitment and selection process in two organisations

2.4 Evaluate the effectiveness of the recruitment and selection techniques in two

organisations.

3.1 Assess the link between motivational theory and reward

3.2 Evaluate the process of job evaluation and other factors determining pay

3.3 Assess the effectiveness of reward systems in different contexts

3.4 Examine the methods organisations use to monitor employee performance

4.1 Identify the reasons for cessation of employment with an organisation.

4.2 Describe the employment exit procedures used by two Organisations.

4.3 Consider the impact of the legal and regulatory framework on employment

Cessation arrangements



1.1 Distinguish between personnel management and human resource management.

What is Human Resource Management?

Human resource management is an important department in an organization & It is the

process of proper and maximise utilisation of available limited skilled workforce in order to

achieve the goals of the organization.

There are two types of Human related Managements that can be seen in an organization.

Distinguish between Personnel management and Human Resource Management

Traditional approach of managing people

Assume people as an input to achieve desired output

Focuses on personnel administration, welfare and labour relation

Job design is based on division of labour

Employees are provided less training

External controls Low trust Low flexible

Modern approach of managing people

Assume people as an important & valuable resource to achieve desired output

Focuses on acquisition, development, motivation and maintenance of human resource management

Job design is based on group/ team work

Employees are provided more training

Self-controls High trust High flexible

Personnel Management Human Resource Management

Personnel Management Human Resource Management



1.2 Assess the function of the human resource management in contributing to organisational purposes.

Functions of Human resource Management

The functions of HR management may be classified into two categories:

Managerial Functions

Operational Functions

Managerial Functions:

The following are the managerial functions.

Planning:

A Human resource manager plans in advance future demand of the employee, the

trend in wages, labour market, union demands etc. Through planning, most of the

future problems can be anticipated.

Organising:

The Human resource manager has to design the structure of relationships, classes,

departments among jobs, employees and physical factors so that the objectives of the

organization can be achieved.

Directing:

The Human resource manager directs and motivates the employees of his department

so that they work willingly and effectively to achieve the organisational goals

Controlling:

A human resource manager has to constantly watch whether there is any deviation

from the planned path. Continuous monitoring of the personnel policies relating to

training, labour turnover, wage payments, interviewing new and separated employees

etc., is the backbone of controlling.

If deviations are unavoidable, corrective action can be planned in advance.

Controlling helps the personnel manager to evaluate the performance of employees of

the personnel department so far as the operating functions are concerned.



Operational Functions:

The operational functions of the Personnel Management include.

Procurement function: It includes:

Recruitment: Attracting/tapping the right person to the right place at the right

time from Internal or External side.

Getting information regarding prevailing wage rates and job requirements.

Selecting the best candidate by following a systematic selection procedure.

Maintaining the records of employees.

Job induction & Job Orientation: Introducing the new employee to the officers

of the other departments and make them work willingly.

Training & Development

The training of the new employees and also to the existing employees is the crucial

function of Personnel Department. The training & development programmes increase

the skills and abilities of the employees.

Promotion, transfer and termination function

The performance of the employees is evaluated for the purpose of taking decisions

concerning the employment, exit procedures are done by Personnel Management.

Compensation functionThe employees should get adequate and equitable remuneration for the work being done by them.

Welfare functionThese activities relate to physical and social well-being of the employees

Collective bargaining function To assist in the negotiations which are held with the union leaders? To know the grievances of employees and following their problems

properly.

Miscellaneous function To advise the line managers regarding administration of personnel

policies. To secure co-ordination of all personnel activities. To have an effective communication system. To provide good working conditions.



Function of HRM in vehicle manufacturing industry

Recruitment –When recruiting the employee we should select the right person, for

right work, at right time. This should be done effectively when recruiting, HR should

see what kind of qualification and skills they have, according to that they should be

appointed for the particular job. This can be done internally or externally.

Selection - This is also another important function of HR. They have to select the

right candidate for the available vacancy. In the first step they will take deep notice of

the candidates CV’s, from that they will choose the right person from the interview in

that they keep variety of tests including IQ, EQ, written, practical, attitude,

personality & medical Tests for candidates to test their knowledge and skills & etc

according to the available position. From that there will be final interview in that they

select the most eligible candidate for the job.

Training & Development- This function should be applied for new and current

working employees to enhance their knowledge and skills. Then they will work more

proficiently. Basically training programs are given to operational level employees

whereas development programs are given to top/ strategic level managers.

Performance appraisal- This is only done by HRs they are the people who see for

employees’ motivation. When a particular job or a task is done or if they have done an

establishment in the productivity or in their profits they should be motivated by this

function.

Compensation- When an employee is injured or met an accident they will be

compensated only by HR departments,

Employee separation- Each organization must have comprehensive separation policies

and procedures to treat the departing employees equitably and ensure smooth

transition for them. This functions are mostly used by Toyota. What they do is, when

an employee is met a big injury like losing his leg, he want be sent off from the work,

what they do is they will give another opportunity which his able to do.



1.3 Evaluate the role and responsibilities of line managers in human resource management.

Role and responsibility of Line Managers

According to (McDonald, 2013), the responsibilities of line managers can be listed as below,

Employee engagement

Performance appraisal

Disciplining Employees

Performance related pay

According to Slayor Academy (2010), in vehicle manufacturing industry they also have main

role to play, some of the role they have to play is Employee engagement. Line managers

supervise their employees to take the approach of employee engagement, is the most

important factor. The culture in a team is created by the line manager. Line managers who

care about employees and react positively on their performances and focus on their

employees’ strengths and they give freedom of speech and will get more encouraged and

motivated employees.

When talking about Performance Appraisal are architected by HR professionals and are being

practiced by line managers of HRM. Performance is monitored and evaluated by the line

managers and the feedback is given to the employee directly in one to one meeting at

appraisal meetings.

Disciplining is the behavior expected from an employee inside the organization. The

expected behavior is informed to the employees in expressed and implied terms and the

behavior is monitored by line managers. If there has been any breach of the expressed or

implied terms in discipline, the line managers will take actions to correct them.

When it comes to performance related pay, the line managers are responsible for deciding the

performance levels and the deserved pay of an employee. Line managers should make sure

that the above average performing employees should get paid more. And the pay should be

fair depending on the load of work and the quality of work of an employee. And not be

biased or discriminatory. These are the some main roles that line mangers play in vehicle

industry.



1.4 Analyse the impact of the legal and regulatory framework on human resource management.

Legal and regulatory framework

Wages act of payment 1936- here they divide the payment method according to the

classes employees belongs

Bonus act of payment 1965- when an employee establish his goals, profits or

achievements his entitled to get bonus in end of month

Equal remuneration 1976- both male and female employees should be paid same

payment if they are doing the same task in industry

The factories act 1948- this will give a clear idea what are the rights of employees

have in an organization

Employee state insurance act 1948- both managers and employees will share a

amount to cover the insurance that if anything happens when working.

Payment of gratuity- this comes to play when an employee works more than 5years

then he has the right to has the gratuity.

Workmen compensation 1923- this a financial protection for the employees when an

accident happens when working then the organization has to pay him an amount until

he get well

Employment rights act 1996- when a threat or illegal happens for an employee he

have the right to ask the mangers.

Sex Discrimination Act and Race Relations Act - This law is to protect men and

women from any discrimination on their gender or marital status, race, colour,

nationality, ethnic, and national origin in the fields of employment and as in education

and public functions as well.



2.1 Analyse the reasons for human resource planning in organisations.

Human resource planning

According to Price, A (2000), A simple definition to human resource planning is making sure

that the right amount of qualified people are working in the right place and in the right time

in-order to make sure that the organisational goals are achieved.

Human resource planning is a process through which the right candidate for the right job at

the right time is ensured. For an example if there are100 machines and 10 people working on

them, and if the company is going to buy another 5 machines, the Human resource planners

will make sure that another 5 trained people will be there to work on the new machines when

they arrive, but not before it is too early or after it is too late so that there will be production

loss or time lost.

Human resource planning is important to all kind of industries because it develops the

strategies for matching the size and skills of the workforce organizational needs. Human

resource planning help assist organizations to recruit, retain, and optimize the development of

the personnel needed to meet the business objectives and to response to change in the

external environment. Human Resource Planning involves gathering of information, making

objectives, and making decisions to enable the organization achieve its objectives and goals.

According to Dessler, Gary (2010). Human Resource Management, the first step is to

assess and make an inventory of existing man power in the organisation. Then the human

resource planners have to forecast the future demand and supply of human resources. There

are several expertise methods to forecast the man power demands and supplies in the future.

And then the planners have to take actions to fill the imbalances in the areas that were

assessed.

There must be proper utilisation of human and non-human resources in the

organisation. Sometimes the organisation may have adequate non-human resources e.g.

machines, materials and money but inadequate human resources as a result, manufacturing

process/production cannot be started. Human resource planning helps to offset uncertainties

and changes as far as possible and enables to ensure availability of human resources of the

right kind, at right time and at right place. It also helps to anticipate shortages and/or

surpluses of manpower in the organisation & it helps in correcting this imbalance before it

become unmanageable and expensive.



An existing organisation, there is a constant need for right-sizing the organisation. In

the organisation, some posts may fall vacant as a result of retirement, accidents, resignations,

promotions or death of employees. Consequently, there is constant need of replacing people.

Human resource planning estimates future requirements of the organisation and helps to

ensure that human resources of right kind, right number, in right time and right place.

Through human resource planning it is ensured that employees in right number and of right

kind are available when required to meet these needs of the organisation. It provides scope

for advancement and development of employees through training and development etc. Thus,

it helps in meeting the future needs of the organisation of highly skilled employees. It helps

to satisfy the individual needs of the employees for promotions, transfer, salary encashment,

better benefits etc.

Anticipating the cost of human resources e.g. salary and other benefits etc is another

importance of human resource planning. It facilitates the formulation of human resource

budget for various departments/divisions of the organisation. To Check Joblessness, in the

exercise of right-sizing of employees by the organisation, some of the employees may

become surplus. It means their services are no more required in the organisation. It tries to

foresee the need for redundancy. It plans to check job loss or to provide for alternative

employment in consultation with various concerned parties and authorities.

2.2 Outline the stages involved in planning human resource requirements

Process of human resource planning

Forecasting demand and supply of human resources

Inventory of present Human Resources

Analysing Organizational Objectives



Analysing Organizational Objective is the first step of Human resource planning. The

objective to be achieved in future in various fields such as production, marketing, finance,

expansion and sales gives the idea about the work to be done in the organization. After

analysing organizational objectives HR managers have to consider the Inventory of Present

Human Resources From the updated human resource information storage system, the current

number of employees, their capacity, performance and potential can be analysed. To fill the

various job requirements, the internal sources and external sources can be estimated. Then

they have to Forecast Demand and Supply of Human Resource. The human resources

required at different positions according to their job profile are to be estimated. The available

internal and external sources to fulfil those requirements are also measured. There should be

proper matching of job description and job specification of one particular work, and the pro-

file of the person should be suitable to it.

After this process the HR manager will have the Estimating Manpower Gaps. Comparison of

human resource demand and human resource supply will provide with the surplus or deficit

of human resource. Deficit represents the number of people to be employed, whereas surplus

represents termination. Extensive use of proper training and development programme can be

done to upgrade the skills of employees. The next & very important step of Human resource

planning is Formulating the Human Resource Action Plan. The human resource plan depends

on whether there is deficit or surplus in the organization. Accordingly, the plan may be

finalized either for new recruitment, training, interdepartmental transfer in case of deficit of

termination, or voluntary retirement schemes and redeployment in case of surplus. Then there

should be a implementation of the human resource action plan. Human resources are



allocated according to the requirements, and inventories are updated over a period. The plan

is monitored strictly to identify the deficiencies and remove it. Comparison between the

human resource plan and its actual implementation is done to ensure the appropriate action

and the availability of the required number of employees for various jobs.

2.3 Compare the recruitment and selection process in two organisations

Nestle



Nestle UK has been trading as a business since the 1860s. Today, Nestle is the world’s

leading nutrition, health and wellness company. It is a major player within the UK and Irish

food industry, employing over 8,000 people across 23 sites. Nestlé produces some of

Britain’s best loved brands, such as Kit Kat, Smarties, Nescafe, Nido, Maggi, Polo, Smarties,

Milo, Perrier, Friskies, KitKat, and Crunch.Nestle. Nestlé has 447 factories, operates in 194

countries, and employs around 333,000 people. Their subsidiary companies; Nestle Waters,

Purina Pet care, Nestle Professional, Nestle Nutrition, Cereal Partners UK and Lactalis –

Nestle Chilled Dairy Company Ltd.

Tesco

Tesco PLC is a British multinational grocery and general merchandise retailer in United

Kingdom. It is the third largest retailer in the world measured by profits and second-largest

retailer in the world measured by revenues. It has stores in 12 countries across Asia and

Europe and is the grocery market leader in the UK (where it has a market share of around

30%), Ireland, Hungary, Malaysia, and Thailand. The company has more than 500,000

employees worldwide.

Originally a UK-focused grocery retailer, since the early 1990s Tesco has increasingly

diversified geographically and into areas such as the retailing of books, clothing, electronics,

furniture, toys, petrol and software; financial services; telecoms and internet services.

Recruitment: The process of attracting a pool of qualified applicants that is

representative of all individuals in the labour market in sufficient

numbers with the right skills and at appropriate times to apply for open

positions within the organization.

http://en.wikipedia.org/wiki/Telecommunication

http://en.wikipedia.org/wiki/Financial_services

http://en.wikipedia.org/wiki/Diversification_(strategy)

http://en.wikipedia.org/wiki/Thailand

http://en.wikipedia.org/wiki/Malaysia

http://en.wikipedia.org/wiki/Hungary

http://en.wikipedia.org/wiki/Republic_of_Ireland

http://en.wikipedia.org/wiki/Europe

http://en.wikipedia.org/wiki/Asia

http://en.wikipedia.org/wiki/Retail#Global_top_five_retailers

http://en.wikipedia.org/wiki/Retail#Global_top_five_retailers

http://en.wikipedia.org/wiki/Multinational_corporation



Selection: Selection is the process used to identify and hire individuals or groups

of individuals to fill vacancies within an organization

In this case, Nestle Company has been using a new radical method of recruitment called

“Talent puddles” similar to talent pools in order to reduce the common recruiting problems

faced by many organizations. This method of recruiting employees has made Nestle to

identify the required employees for a particular position in the organization this can be called

as “talent gaps” the function of Talented Puddles. This talent puddle is made inside the

organization, so they don’t need to outsource any agencies, when candidates applies for the

job they will record according to their skill, education, and what positions they can work, so

when there is an employee is needed they don’t need to open up CV’s and select . They can

easily access the talent puddle and check the eligible candidate who is fit enough for the

particular position and he/ she will be hired for the job. This is an advantage for organization

because time and money is saved.

The following int methods are also used in recruitment process in Nestle.

Internal Recruitment

Job Posting

Employee Referrals

External recruitment

Employment Agencies

Promotions

Local Advertising – Newspaper, Multi Media

Internships

Executive search firms

Selection – After obtaining the applications from the applicants, CVs are collected from the

all applicants. The human resource team will consider their skills, qualifications and other

background details. After considering them the CVs will be sent to the recruitment team of

the organization. And they will conduct the interviews to the applicants in variety of methods.

The interview will be in the any form of these below,

Phone calls

Online conversation (skype)

Face to face



When conducting the interview by the HRM team there will be also tests for the candidates.

They can be in different forms according to available positions,

Written test

Interview

Practical test

Aptitude

Intelligent test

Personality test

Medical test

After the selection process the job offer will be given by phone or letter to the person. And

the recruited people will be appointed to the particular position and they will be given job

induction & Job orientation to the Nestle’s culture.

On the other hand in Tesco recruitment process, they have been improving there business

with large labour workforce, its calculated that there are 500,000 employees are working

worldwide for Tesco. Tesco’s recruitment and selection process is different when comparing

to Nestle. Tesco practices what it calls 'talent planning, it means selecting a right employee

to right position and establishing the goals of the organization. They have two types of

recruitment Internal and External. Tesco first

they see the internal employees whether anyone

available for the particular position from their

Talent Planning. Tesco main aim is to seek

employees internally to fill many vacancies

from within the company. It recognizes the importance of motivating its staff to progress

their careers with the company. This encourages people to work their way through and up the

organization. Through an annual appraisal scheme, individuals can apply for 'bigger' jobs.

The steps involved in this process of TESCO are,

• Identify Vacancy

• Develop Position Description

Talent Planning



• Develop Recruitment Plan

• Select Search Committee

• Implement Recruitment Plan

• Review Applicants Short List

• Conduct Interviews

• Select Hire

• Finalize Recruitment

Employees identify roles in which they would like to develop their careers with Tesco. Their

manager sets out the technical skills, competencies and behaviours necessary for these roles,

what training this will require and how long it will take the person to be ready to do the job.

This helps Tesco to achieve its business objectives and employees to achieve their personal

and career objectives.

If no employees available even after accessing the talent Planning, Tesco will go for external

recruitment,. They will publish the available vacancies in internet, advertisements.

Applications are made online for managerial positions. The chosen applicants have an

interview followed by attendance at an assessment centre for the final stage of the selection

process.

People interested in store-based jobs with Tesco can approach stores with their CV or register

though Job centre Plus. The store prepares a waiting list of people applying in this way and

calls them in as jobs become available.

Tesco as policy when recruiting employees, they want waste their time or money by

advertising in radio or posters. They make job vacancies in their official site, so anyone can

access the job and everything will be detailed there. If anyone interest they can apply for it.

The selection process of Tesco

Screening of applicants’ CVs to find best with Tesco

Vacancies advertised on Tesco website and other offline media, Television, Radio, on Google / Magazines



The selection process of Tesco also similar to Nestle, here Tesco see the correct person for

the position available. Screening the applicants is the main thing, because it gives the first

impression of that applicant and this should be done correctly, organization should select the

right person, for right work, at right time.

In the first stage the applicants CVs will be scanned carefully. CV shows the applicants’

personal information, background, education, work experience, skills and knowledge. Tesco

will assess whether an applicants’ job description matches to the job specification. To help

the applicant Tesco also provides a “job Type Match” on their official website, this tool will

help the applicant to select what job available and select the appropriate vacancy for them.

Once they have selected from first phase, applicant should go for second phase Assessment

Centre. This assessment centre is managed by the Managers at the stores. Applicants are

given various exercises, including team-working activities or problem-solving exercises.

These involve examples of problems they might have to deal with at work. Applicants are

approved by the internal assessment centres then they will have second interview. Line

managers for the job on offer take part in the interview to make sure that the candidate fits the

job requirements.

2.3 Effectiveness of Recruitment and Selection Process in Both Tesco & Nestle



Talent puddle it’s a proactive recruitment, that help organizations to select the right applicant

to the organization, leading organization are using this tool to improve the way they identify

and access skilled candidates in the labour market. Nestle has a good way of recruiting of

employees, they have also been using a tool “talent Puddle”, where they will have handful of

candidates with all the qualification and skills, when a shortages of employees happens, it

makes Nestle to recruit that required employees for that particular position . The effectiveness

in this process is Nestle is not required to outsource agencies to select employees for their

organization, from this tool Nestle find the right person to their workforce and they can full

fill skill shortages in the organization. This Talent Puddle is not easy; candidates have to

compete each other to capture a place in the list. Organizations know how Talent Puddle is

important for every of them. Using Talent puddle Nestle can reduce the cost of recruiting

employees from outside agents and more accurate view of the candidates. There are some

disadvantages too in this talent puddle, sometimes failed candidates become frustrated, they

make a bad impression about the organization. Only limited applicants are selected,

sometimes they miss the skillful applicants. Keeping the skillful, knowledgeable, energetic

candidates have to wait on list until to get a available job position in the organization.

Even in the selection process Nestle they go deeply in search of the candidates. In first phase

they are able to identify the required candidate by analysing his qualification, skills,

background, working experience. By going through this selection process Nestle can easily

find the person they need.

Tesco by using the “Talent Planning” the effectiveness they can have is, they can have the

right person to right job. Through a proper examination of candidates their skills and strength

are identified. When having a right person to right position they can also increase the

productivity through that employee. Also since there is a better alignment between an

individual’s interests and his job profile the job satisfaction is increased. Retaining the top

talents is also an important thing to leadership and growth of the organization. Organization

when they lose their top talents, they are also losing with their competitors, suddenly there

will be downfall of productivity where they gain from top talents. The focus of Tesco is now

on charting employee retention programs and strategies to recruit, develop, retain and engage

quality people. Employee growth in a career has to be taken care of, while succession

planning is being performed those who are on the list need to be kept in loop so that they

know their performance is being rewarded. The quality of an organization is the quality of

workforce it possesses. The best way to have talent at the top is have talent at the bottom. No



wonder then talent Planning programs and trainings, hiring assessments have become an

integral aspect of HR processes nowadays. It makes Understand the Employees Better,

management get deep insights about their employee after the employee assessments. Their

assessment will initiate their development needs, career aspirations, strengths and

weaknesses, abilities, likes and dislikes. It is easier therefore to determine what motivates

whom and this helps a lot Job enrichment process.

If employees are positive about the talent Planning practices of the organization, they are

more likely to have confidence in the future of their organization. The resultant is a

workforce that is more committed and engaged determined to outperform their competitors

and ensure a leadership position in the market for their organization.

Some weakness also there in this tool Talent Planning. When selecting employees by using

tools like talent planning will de-motivate the employees working in the organization it can

lead to high turnover. Sometimes it can cost high payment for selecting process, induction

orientation cost.

Tesco aims to ensure all roles work together to drive its business objectives. It needs to

ensure it has the right number of people in the right jobs at the right time. To do this, it has a

structured process for recruitment and selection to attract applicants for both managerial and

operational roles.

3.1 Assess the link between motivational theory and reward.



Motivation

Motivation can be referred simply willingness to work. Motivation is about the ways a

business can encourage staff to give their best. Motivated employees care about the success

of the Organization and work better.

Motivation is the process by which the behaviour of an individual is influenced by others, through

their power to offer or withhold satisfaction of the individual's needs and goals".

(BPP Learning Media, 2010)

Motivation theories are divided into two different viewpoints.

1. Content - Content theories emphasis what motivations are,

2. Process - Process theories emphasise the real process of motivation.

One of the most important functions of management is to create willingness amongst the

employees to perform in the best of their abilities. Therefore the role of a leader is to enhance

interest in performance of employees in their jobs.

Reward

Reward, is something that employees may receive depending on their performance.

Reward can be a financial incentive, or that can be non-financial as well. These rewards in

organizations help employees to be more committed and motivated to their job and working

environment:

Managers can motivate staff by paying a fair wage. Payment methods include:

Time rate : Staffs are paid for the number of hours worked.

Overtime : Staffs are paid extra for working beyond normal hours.

Piece rate : Staffs are paid for the number of items produced.

Commission : Staffs are paid for the number of items they sell.

Performance related pay : staffs get a bonus for meeting a target set by their manager.

Profit sharing : Staffs receive a part of any profits made by the business.

Salary : Staffs are paid monthly no matter how many hours they

work.

Fringe benefits : are payments in kind, eg a company car or staff discounts.

Managers can motivate staff using factors other than pay through:

http://www.managementstudyguide.com/role_of_a_leader.htm



Job rotation : staff are switched between different tasks to reduce monotony.

Job enlargement : staff are given more tasks to do of similar difficulty.

Job enrichment : staff are given more interesting and challenging tasks.

Empowerment : staff are given the authority to make decisions about how they do

their job.

Putting groups of workers in a team who are responsible together for completing a certain

task

Security of service

Praise or recognition

Suggestion scheme

Job enrichment

Promotion opportunities

For example, a sales department may offer a monthly bonus to the highest earner. Not all tangible

rewards come in the form of money. Some companies host free lunches, or give away company gear

to good workers. Many managers choose to reward their best employees by simply praising them for a

job well done, or by recognizing the hard work they put in to a project.

Reward can be divided in another different Point of view

Positive incentives are those incentives which provide a positive assurance for

fulfilling the needs and wants.

promotion, praise, recognition, perks and allowances, etc.

Negative incentives are those whose purpose is to correct the mistakes or defaults of

employees.

demotion, transfer, fines, penalties.Motivational theories

There are several theories about motivation invented by Human resource experts.



According to Maslow’s motivational theory there are levels of motivation that people need in

their lives. Staff first want to meet their survival needs by earning a good wage. Safety needs

such as job security then become important, followed by social, self-esteem and self-

fulfilment needs. Moving staff up a Maslow level is motivational. Managers who follow the

Maslow’s theory, try to make their subordinates motivated by giving them more attractive

work, more opportunities for self actualization.

Physiological needs - These are the basic needs of an individual which includes

food, clothing, shelter, air, water, etc. These needs relate to the survival and

maintenance of human life.

Safety needs - These needs are also important for human beings. Everybody

wants job security, protection against danger, safety of property, etc.

Social needs - These needs emerge from society. Man is a social animal.

These needs become important. For example- love, affection, belongingness,

friendship, conversation, etc.

Esteem needs - These needs relate to desire for self-respect, recognition and

respect from others.

Self-actualization needs- These are the needs of the highest order and these needs are

found in those person whose previous four needs are satisfied. This will include need

for social service, meditation.

Self-actualisation

Esteem needs

Social needs

Security needs

Physiological Needs



In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the

motivator-hygiene theory.

According to Herzberg, there are some job factors that result in satisfaction while there are

other job factors that prevent dissatisfaction. In Herzberg’s theory he mentions that there two

factors that motivates people. Those are hygiene factors and motivation factors. The

motivations include recognition, working environment, working conditions, challenging work

etc. hygiene factors are the ones that de-motivates people such as pay and compensation.

According to Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the opposite of

“Dissatisfaction” is “No Dissatisfaction”.

FIGURE: Herzberg’s view of satisfaction and dissatisfaction

No Dissatisfaction Dissatisfaction

HYGIENEE FACTORS

No SatisfactionSatisfaction

MOTIVATION



In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of human

behaviour at work, or in other words, two different views of individuals (employees): one of which is

negative, called as Theory X and the other is positive, so called as Theory Y. According to McGregor,

the perception of managers on the nature of individuals is based on various assumptions.

Assumptions of Theory X

An average employee intrinsically does not like work and tries to escape it whenever possible.

Since the employee does not want to work, he must be persuaded, compelled, or warned with

punishment so as to achieve organizational goals. A close supervision is required on part of

managers. The managers adopt a more dictatorial style.

Many employees rank job security on top, and they have little or no aspiration/ ambition.

Employees generally dislike responsibilities.

Employees resist change.

An average employee needs formal direction.

Assumptions of Theory Y

Employees can perceive their job as relaxing and normal. They exercise their physical and

mental efforts in an inherent manner in their jobs.

Employees may not require only threat, external control and coercion to work, but they can

use self-direction and self-control if they are dedicated and sincere to achieve the

organizational objectives.

If the job is rewarding and satisfying, then it will result in employees’ loyalty and

commitment to organization.

An average employee can learn to admit and recognize the responsibility. In fact, he can even

learn to obtain responsibility.

The employees have skills and capabilities. Their logical capabilities should be fully utilized.

In other words, the creativity, resourcefulness and innovative potentiality of the employees

can be utilized to solve organizational problems.



3.2 Evaluate the process of job evaluation and other factors determined pay

What is Job Evaluation?

"Job evaluation is a systematic process for defining the relative worth or size of jobs within

an organisation in order to establish internal relativities. It provides the basis for designing an

equitable grade and pay structure, grading jobs in the structure and managing job and pay

relativities.

"(Armstrong, 2006)

Job evaluation is really an extensive process and it must follow in an orderly approach. At the

start of this process management must make clear to its staff the reason of this job evaluation

and importance of it. To determine the pay grade and exemption status for a job, Job

evaluations will determine the salary grade of a job and may occur at any time during the

year. Type of Evaluation

Creation of a New Job

Additional Job Responsibilities

Temporary or Interim Duties

After that a team has been set where all the informed HR specialists and workers

are included. In the next step organisation selects the job from each department that they

are going to evaluate, then the chosen job is investigated in detail by the team. Next, the

HR selects a method for the job evaluation. There are two methods that can be followed

to evaluate a job and these are: "Analytical - points rating, factor comparison, proprietary

brands; and Non-analytical - job ranking, job classification, paired comparisons".

Methods designed on the basis of the requirements and elements of the

jobs

Methods designed on the basis of the jobs as a whole

Point MethodFactor ComparisonClassification Methods

Ranking Methods

Analytical MethodsNon-Analytical Methods

Job Evaluation Methods



There are many ways and methods to evaluate the jobs. However it is done, the final outcome

of the job evaluation will be to make decision on fair salary payments, improve the job

design, and redesign the jobs, changes in duties and responsibilities of the person who carries

out the job.

The other factors determining pay:

The pay, which is an award for work, can be influenced by various factors and it creates some

difference between the roles and the organisations.

Those factors are:

Size of the organisation,

Seniority,

Skills and experience,

Industry sector,

Profitability of the organisation,

Employee performance.

Job Analysis and Job Description - Using a "job profile," the content of each job is analyzed

to identify key duties, responsibilities, and qualification necessary to perform the job. Written

job descriptions are then prepared to contain this information.

The job evaluation process

Job analysis describes a job. Job evaluation develops a plan for comparing jobs in terms of

those things the organization considers important determinants of job worth. This process

involves a number of steps

Job Analysis. The first step is a study of the jobs in the organization. Through job

analysis, information on job content is obtained, together with an appreciation of

worker requirements for successful performance of the job. This information is

recorded in the precise, consistent language of a job description.

Compensable Factors. The next step is deciding what the organization "is paying for"

that is, what factor or factors place one job at a higher level in the job hierarchy than

another. These compensable factors are the yardsticks used to determine the relative

position of jobs. In a sense, choosing compensable factors is the heart of job

evaluation. Not only do these factors place jobs in the organization's job hierarchy,

but they also serve to inform job incumbents which contributions are rewarded.

http://www.case.edu/finadmin/humres/compensation/spgloss.html#description

http://www.case.edu/finadmin/humres/compensation/spgloss.html#analysis



Developing the Method. The third step in job evaluation is to select a method of

appraising the organization's jobs according to the factor chosen. The method should

permit consistent placement of the organization's jobs containing more of the factors

higher in the job hierarchy, than those jobs lower in the hierarchy.

Job Structure. The fourth step is comparing jobs to develop a job structure. This

involves choosing and assigning decision makers, reaching and recording decisions,

and setting up the job hierarchy.

Wage Structure. The final step is pricing the job structure to arrive at a wage

structure.

Job Description is a broad and written statement of a specific job in the organisation, based

on the findings of a the job analysis. Job description usually forms the basis of job

specification.

It is a list of job duties, responsibilities,reporting, relationships, working conditions

and supervisory responsibilities ---- Gary Dessler

Job Specifications;

the qualities required by people applying for the job.

Job specification is a statement of employee characteristics and qualifications required for

satisfactory performance of defined duties and tasks comprising a specific job or function.

Job specification is derived from job analysis.

Job specification as a statement of minimum qualification that person must posses to

perform a given job successfully --- Stephen. P . Robbins & Marry Coutler

Job TitleLocationJob SummaryDutiesMachine tools etcMaterial etcSupervisionWorking conditionshazards

EducationExperienceTrainingInitiativePhysical effortResponsibilitiesCommunication skillsEmotional characteristicsUnusual sensory sight etc

Job Description Job Specification



3.3 The effectiveness of reward systems in different contexts

"Reward system is the mix of extrinsic and intrinsic rewards provided by the employer. It also

consists of the integrated policies, processes, practices and administrative procedures for

implementing the system within the framework of the human resources (HR) strategy and the total

organisational system".

Bratton and Gold (2003)

There are two types of rewards:

Employee bonus systems are positive strategies and they can provide actual motivation.

Moreover to monetary thoughts; bonus systems take into account factors such as attendance,

customer service, quality, group and individual performance. Also bonuses increase

employees' motivation and output. It improves employees' morale and increases their self-

esteem. However, a carefully planned bonus scheme can improve retention which helps to

preserve the best employees. When they are treated fairly and in a justifiable way, they will

not have any disputes with the management and will try to improve their performance to get

better rewards in the future.

Salary raise is the other types of reward system and it is one of the most significant

motivators for the employee, also it is the key motivation behind an employee's performance.

Staffs are given more interesting and challenging tasks in Job enrichment system. This can be

done by increasing his responsibilities, giving him an important designation, increasing the

content and nature of the work. This way efficient worker can get challenging jobs in which

they can prove their worth. Sometimes praise & recognition becomes more effective than any

other incentive. The organization should look forward to taking suggestions and inviting

suggestion schemes from the subordinates. This ultimately helps in growing a concern and

adapting new methods of operations. In Job rotation method staffs are switched between

Tangible rewards that employee receives for their good performance, such as bonuses, salary raise, gifts, promotion, compensation and commissions.

They are inclined to give personal satisfaction to an employee, such as information, feedback, recognition, trust and relationship.

Extrinsic rewards Intrinsic rewards



different tasks to reduce monotony, In Job enlargement staffs are given more tasks to do of

similar difficulty, In Empowerment staffs are given the authority to make decisions about

how they do their job, putting groups of workers in a team who are responsible together for

completing a certain task. From these kind of methods employees may be more motivated.

Providing employee Security of service also can be a motivation method. If his job is

secured, he will put maximum efforts to achieve the objectives of the enterprise. This also

helps since he is very far off from mental tension and he can give his best to the enterprise.

Promotion is Promotion is an effective tool to increase the spirit to work in a concern, where

an organisation rewards an employee by moving them from their position to a higher

position. Promotion improves employee's morale and job satisfaction.

However, improved performance is an effectiveness of reward system; it helps the employee

to perform better at work in order to get extra reward from the organisation. At the same time

employees also work hard and put their skills and understanding which assist them to gain

knowledge and learn something new.

Reward system also boosts profit, where a company has good chance to make return because

member of staff works honestly and carefully. It also helps to bring positive psychological

contract between employees and the organisation; it creates a better working environment and

helps organisation to keep gifted, potential employees with them.



3.4 Examine the methods organisations use to monitor employee performance

A good performance appraisal system can greatly benefit an organization. It helps direct

employee behaviour toward organizational goals by letting employees know what is expected

from them, and it yields information for making employment decisions, such as those

regarding pay raises, promotions, and discharges.

Following are the tools used by the organizations for Performance Appraisals of their

employees.

Rating scale

Self-evaluation

Essay evaluation

Paired Comparison

Forced Distribution

Confidential Report

Critical Incident

Psychological appraisals

Behaviourally anchored rating scale

Ranking

Assessment Centre

360˚Feedback method

Forced Choice Method

Management by Objective

Field Review Technique

Self-evaluation is when the employee is asked to evaluate his own performance in

pre-defined categories. The employee is given a form to fill, most of multiple choice

questions, which will help the management to understand the knowledge level of the

employee and the quality standards. In this if the management can identify the

training needs of the employee; the management will take actions to arrange training

Performance Appraisal refers to all those procedures that are used by an organization to evaluate the employees’

Personality Performance Potential of its group members



session to fulfil their training needs. In this method the employee has to honest about

his knowledge in order for the final outcome to be accurate.

In the ranking system it requires the rater to rank his subordinates on overall

performance. This consists in simply putting a man in a rank order. Under this

method, the ranking of an employee in a work group is done against that of another

employee. The relative position of each employee is tested in terms of his numerical

rank. It may also be done by ranking a person on his job performance against another

member of the competitive group. Employees are ranked according to their

performance levels. It is easier to rank the best and the worst employee. The “whole

man” is compared with another “whole man” in this method. In practice, it is very

difficult to compare individuals possessing various individual traits. This method

speaks only of the position where an employee stands in his group. It does not test

anything about how much better or how much worse an employee is when compared

to another employee. When a large number of employees are working, ranking of

individuals become a difficult issue. There is no systematic procedure for ranking

individuals in the organization. The ranking system does not eliminate the possibility

of snap judgements.

Forced Distribution method is a ranking technique where raters are required to

allocate a certain percentage of rates to certain categories (eg: superior, above

average, average) or percentiles (eg: top 10 percent, bottom 20 percent etc). Both the

number of categories and percentage of employees to be allotted to each category are

a function of performance appraisal design and format. The workers of outstanding

merit may be placed at top 10 percent of the scale; the rest may be placed as 20 %

good, 40 % outstanding, 20 % fair and 10 % fair. This method tends to eliminate

raters bias. By forcing the distribution according to pre-determined percentages, the

problem of making use of different raters with different scales is avoided. The

limitation of using this method in salary administration, however, is that it may lead

low morale, low productivity and high absenteeism. Employees who feel that they are

productive, but find themselves in lower grade (than expected) feel frustrated and

exhibit over a period of time reluctance to work.



Under the Critical Incident techniques method, the manager prepares lists of

statements of very effective and ineffective behaviour of an employee. These critical

incidents or events represent the outstanding or poor behaviour of employees or the

job. The manager maintains logs of each employee, whereby he periodically records

critical incidents of the workers behaviour. At the end of the rating period, these

recorded critical incidents are used in the evaluation of the worker’s performance.

This method provides an objective basis for conducting a thorough discussion of an

employee’s performance. This method avoids recency bias (most recent incidents are

too much emphasized) Negative incidents may be more noticeable than positive

incidents. The supervisors have a tendency to unload a series of complaints about the

incidents during an annual performance review sessions. It results in very close

supervision which may not be liked by an employee. The recording of incidents may

be a chore for the manager concerned, who may be too busy or may forget to do it.

Checklists and Weighted Checklists - In this system, a large number of statements that

describe a specific job are given. Each statement has a weight or scale value attached

to it. While rating an employee the supervisor checks all those statements that most

closely describe the behaviour of the individual under assessment. The rating sheet is

then scored by averaging the weights of all the statements checked by the rater. A

checklist is constructed for each job by having persons who are quite familiar with the

jobs. These statements are then categorized by the judges and weights are assigned to

the statements in accordance with the value attached by the judges. It is the most

frequently used method in evaluation of the employee’s performance. This method is

very expensive and time consuming. Rater may be biased in distinguishing the

positive and negative questions. It becomes difficult for the manager to assemble,

analyse and weigh a number of statements about the employee’s characteristics,

contributions and behaviours.



360 degree performance monitoring involves for parties apart of the employee. Those

are the direct reports, peers, customers and his subordinates/ superiors. They will be

asked to monitor and give feedback on the employee’s performance. This method is

the most widely used method to monitor the performance of employees. This method

will be more accurate as there will be 4 parties evaluating one person. Therefore the

probability of getting false information is less. This can be considered as the best

performance monitoring method

Self-Assessment

Colleagues Peers

Direct Reports

Customers Suppliers

Superior



4.1 Identify the reasons for cessation of employment with an organization.

What is Cessation of employment?

Cessation of employment can be simply defined as either the employee leaving the

organisation for his personal reasons or the organisation terminating the employment for any

reason.

' Separation is a negative recruitment. It may be In the form of resignation, dismissal

or discharge, suspension, retrenchment or lay-off." - Yoder

Cessation is classified in two forms:

Employee separation is a sensitive issue for any organization. Usually, an employee leaves

the organization after several years of service. Thus, the permanent separation of employees

from an organization requires discretion, empathy and a great deal of planning.

Each organization must have comprehensive separation policies and procedures to treat the

departing employees equitably and ensure smooth transition for them. Further, each

employee can provide a wealth of information to the organization at the time of separation.

When it comes to employees willing resigning from work, the reason, most of the

time if de-motivation. Relationship with boss, Bored and unchallenged by the work itself,

Relationships with co-workers can be the reasons for voluntary separation. Another important

for leaving job is Retirement.

Expiration of an employment contract or as part of decreasing of the workforce. To

seek better positions, responsibilities and status outside the present organization, employees

leaving their present organization. Efficient employees would seek to expand their knowledge

and skills continuously by working in different capacities/positions in various organizations.

Relocation for family reasons like marriage of the employees and health crisis of family

members, maternity and child-rearing. For instance, when working women get married, they

Voluntary Involuntary

Initiated for various reasons by the

employee( these are often employee who

the organization would prefer to remain

within the organization)

Initiated for various reasons by the

organization ( these are usually

involving employees who would prefer

to remain within the organization)

organization)



often prefer to settle in the partners’ place of occupation. Similarly, an employee may seek

voluntary separation to look after the child or parent.

An involuntary separation is caused by the factors which remain beyond the purview

of the employees. However, these factors may be classified broadly into health problems,

behavioural problems and organizational problems. Major health problems crippling the

employees may make them invalid or unfit to continue in the profession. For instance,

accidents causing permanent disabilities and illness of the employees like brain stroke and

other terminal illnesses can lead to their involuntary separation. Death of employees is

another factor which results in their involuntary separation.

When employees are hired to work for a company, they are given a job description

that outlines the duties they're expected to fulfil. When employees fall short in achieving their

goals, managers are faced with deciding whether or not an employee's performance warrants

his termination. Poor performance can include everything from not hitting target sales goals

and overlooking project details to not missing deadlines. Employees may also be terminated

because they lack the knowledge and skills needed to fulfil assigned tasks. Employees are

expected to maintain a level of respect for the company they work for, their employer, fellow

employees, vendors and clients. Behaviours such as using profanity when speaking to

customers, stealing from the company, defaming the company, visiting prohibited websites in

the office and even drug and alcohol abuse are negative behaviours that may result in an

employee being fired.

While employers understand that employees may need to take occasional time off for

sickness, deaths in their families, vacation and even personal days, employees who are

consistently absent from work may be subject to termination. Frequent absenteeism and

lateness can have a negative impact on productivity, profits and company morale. Employees

who frequently come to their workplaces late, or leave the office before their assigned shift is

up, may also be subject to termination depending on their companies' work schedules. An

employee's objectionable and unruly behaviour within the organization may also lead to his

involuntary separation from the organization. Consistent failure to reach performance goals

by an employee can also result in his involuntary separation.

Organizational problems are another important factor that contributes to the

involuntary separation of employees. If profits are down, or small businesses lack funding

from investors, small business owners may be unable to afford keeping their full staffs. As a

result, they begin terminating employees to maximize their budgets. Termination decisions

may be based on how essential an employee's position is to a company.



4.2 Describe the employment exit procedures used by two Organisations.

Employment exit procedures

Exit procedure in involves 4 steps. Those are,

Processing resignation Exit interviews Reference requests Review

Once a resignation is submitted, the HR department will process it and will confirm the last

working day to the employee. And his line managers will also be notified and if there is any

unfinished work to be done, the line manager will be taking responsibility of them to allocate

them to another person.

Then there will an exit interview to inquire why the employee has decided to leave

and the information will be used to improve the organisation if there’s anything that needs

change.

Liner managers will provide personal reference to the employees if they wish to get reference

from the company when they are applying for new positions.

And finally the managers and the HR department will review the policy of exit and will make

any changes if they identify any needs.

Classified employees, both temporary and regular, should submit a letter of resignation.

Classified employees should give no less than two weeks’ notice and vacation time should

not be requested during this time if they wish to resign in good standing. Classified

employees who are retiring must formally announce their intention to retire in the applicable

manner described above. All terminating employees will be asked to complete an Exiting

Employee Information Questionnaire. A personal exit interview with the Senior Advisor for

Performance and Talent Management may also be requested.

Disposition of the final pay will be deposited to the direct deposit accounts(s) on

record and will take place on the employees next regularly scheduled pay date including

unused vacation, up to the maximum of 360 hours. Arrangements for initiation of retirement

benefits, if any, will be handled by the Benefits Department. Student employees are

encouraged to submit a letter of resignation to their immediate supervisor at least two weeks

prior to their last working day.



4.3 Consider the impact of the legal and regulatory framework on employment cessation arrangements

Framework at the time of cessation of employment is very essential for corporations of the

business world (Grubb & Wells, 1994). Each and every organization must have to follow the

terms and conditions of cessation and exit procedures of employment. The job security is

assured by the laws. This means that no employee will be terminated from employment

without any fair reason. If anything like that happens the employee has the right to take legal

actions against the employer.

And the other is that, any kinds of discriminations regarding the gender, race,

nationality or ethnic are prohibited inside the company. No employee can be dismissed or

terminated owing to his gender, race, ethnicity, nationality or colour.

And also no employees can be terminated owing to any physical conditions like being

disabled or pregnant or any kind of those.

There are laws and acts for the company to support and pay pension to the employees

when the employees are retired.



Conclusion

The core processes of Human resource management have been taken in to consideration and

have been evaluated. The difference between personnel management and human resource

management, human resource management’s contribution to organisational goals,

responsibilities of Human resource departments in organisations have been mentioned with

examples. And also, the motivational theories and its applications, employee performance

evaluation and exit procedures of different organisations, and the legal framework have also

been compared and contrasted. After all the facts that have been considered, it vividly depicts

that the Human Resource management is a vital part in any organisation for its growth and

success.



References

Text Book

Handouts

Banfield, P (2008), Introduction to Human Resource Management, Oxford:

University Press.p83-84

Armstrong M (2003), A handbook of human resource management practice, 9th ed.

USA: Kogan Page Publishers. p361-365

http://www.humankinetics.com

http://www.slideshare.net/

Price, A (2000), Principles of human resource management: an active learning approach.

London, Wiley-Blackwell, p152

Raymond A (2004), Fundamentals of human resource management. London: McGraw-Hill,

p72-75.

http://www.slideshare.net/

http://www.humankinetics.com/

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