Human Resource Management: Management of People Within Organization

Human Resource

Management

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TABLE OF CONTENTSLIST OF FIGURES.........................................................................................................................4

INTRODUCTION...........................................................................................................................5

TASK 1............................................................................................................................................5

1.1 Difference between personal management and human resource management .....................5

1.2 The function of HRM in contributing to organization purpose in given scenario.................6

1.3 Roles and responsibilities of line managers of different restaurant......................................7

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

on Italian restaurant .....................................................................................................................7

TASK 2............................................................................................................................................8

2.1 Analyze the reasons for human resource planning in organizations......................................8

2.2 Stages involved in planning human resource requirements...................................................8

2.3 Compare the recruitment and selection process in two organizations...................................9

2.3 Evaluate the effectiveness of the recruitment and selection techniques in two organizations

....................................................................................................................................................10

TASK 3...........................................................................................................................................11

3.1 Assess the link between motivational theory and reward....................................................11

3.2 The process of job evaluation and other factors which determine pay................................11

3.3 Effectiveness of reward systems in different contexts.........................................................12

3.4 Methods used for monitoring employee performance ........................................................12

TASK 4..........................................................................................................................................13

4.1 Identify the reasons for cessation of employment with an organization..............................13




4.2 Employment exit procedures used by two organizations....................................................13

4.3 Examine the impact of the legal and regulatory framework on employment cessation

arrangements..............................................................................................................................14

CONCLUSION .............................................................................................................................14

REFERENCES .............................................................................................................................15




INTRODUCTION

Human resource management is concerned with the management of people within

organization. This department performs variety of activities from employee recruitment, training

and development to performance appraisal of an individual employee at workplace (Kozlowski

and Salas, 2009). In this regard, four different scenarios have been taken to better understand the

difference between personnel management and human resource management. Furthermore,

report also describes the impact of the legal and regulatory framework on human resource

management in different situations. At the end of the report, researcher would be able to identify

the reasons for cessation of employment within company.

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TASK 1

1.1 Difference between personal management and human resource management

Around the end of the 19th century, history of personnel management begins. Initially, it

was framed for the purpose of providing protection to women and girls. The main aim behind

developing HR policies was to improve working conditions. During the First World War,

changes were raised and women were recruited in large numbers to fill the gaps left by men.

After that, job of labour manager or employment manager came into exists and large departments

were made to handle absence, recruitment, dismissal, queries over bonuses and other kinds of

issues in a proper manner (Huemann, Keegan and Turner, 2007). With the changes arise in

economy and global market, a way of recruiting, retaining and motivating employees were also

changed. During the 1945s, the new term personal management was defined which integrated

employment management and welfare work together. During the 1970s and 1980s, motivationTOLL-FREE NO: +44 2038681671 EMAIL: [email protected] NO: +44 7999903324 WEBSITE: www.instantassignmenthelp.com



and organizational behaviour, human resource management and employee commitment and

motivation related theories were framed (Beattie, 2002). As per the given case, David wants to

open a new Italian restaurant chain of 10 Italian restaurants called ‘Mamma Mia’ in London. In

this regard, human resource consultant has been appointed to support new business and deliver

excellent customer service within stipulated time. In order to educate David about HRM policy,

it is essential for HR consultant to provide clear differentiate between personal and human

resource management (Dimba, 2010). .

Table 1: Difference between personal management and human resource management

Personal development Human resource management

Traditional approach to manage people

within organization.

Modern approach of managing people.

It focuses on personnel administration,

employee welfare and labor relation.

It concentrates on acquisition, development,

motivation and maintenance of human

resources. In this technique, job design is done on

the basis of division of labor.

In HRM, job design function is done on the

basis of group work and team work (Kozlowski

and Salas, 2009). Decisions are made by the top

management by considering rules and

regulations (Armstrong 2011).

Decisions are made through enhancing

employee's participation and decentralization

functions.

It is a routine function and focuses on

increased production and satisfied

employees.

HRM is a strategic function and it is concerned

with all level of managers from top to bottom

(Guest, 2007).

1.2 The function of HRM in contributing to organization purpose in given scenario

The major role of HR manager is to plan, develop, and administer policies. Human

resource department is concerned with the people and their management. As per the given case

scenario of Italian restaurant, it is clear that organization will require talented and skillful

employees to carry out different activities in an appropriate manner. In this regard, newly

appointed HR consultant can appoint people from different roles that can be enlisted as follow.




Administration department of company will be able to perform record keeping, historical record

of previous action and measure employee relations (Kinnie and et. al., 2006). Besides that, HR

department of enterprise will perform various functions such as recruitment, safety, employee

relations, compensation and benefits. Despite of that, training and development function is also

performed by HR manager of company to provide training to new employee at workplace.

Along with this, it is responsibility of HR consultant to carry out different human

resource management activities such as reward management and performance management

(planning, monitoring and recording) to grasp business opportunity in an appropriate manner.

The success of recruiters and employment functions can be measured in term of recruiting

number of talented employees (Torrington and et. al., 2009). For example: Training related to

housekeeping and hospitality can be given to the restaurant staff and the their performance can

be judged on the basis of monthly evaluation basis. In order to execute restaurant functions in a

significant manner, it is necessary for HR consultant to provide training to its staff members

because if they will be trained then they will motivate to give their best at workplace so that

quality of services will offer to customers at right time at affordable price.

1.3 R oles and responsibilities of line managers of different restaurant

Restaurants are fast-paced businesses and to attain aim and objectives of HRM, it is

necessary for line managers to perform their duties in a proper manner. Mamma Mia will be a

large Italian restaurant chain and it would be having large number of employees. It is

responsibility of HR consultant to establish communication between different departments and

employees (Tsui and Lai, 2009). In order to manage human capital, it is responsibility of line

managers to perform selection, recruitment, training and coaching activities in an appropriate

manner.




Figure 1: Roles of line managers

Besides that, employee engagement, appraisals and mentoring activities are also performed by

HR consultant in Italian restaurant chain. Apart from this, line managers play crucial role to

maintain discipline in the workplace, decide performance-related pay structure and assess

performance and behavior of employees within organization (Youndt and et. al., 2006).

There are a number of areas in a restaurant for the role of line manager: advertising,

interviewing, selecting, hiring, orientation, and discharge of HR. The responsibility of the line

manager of Mamma Mia is usually heads the safety committee. This committee makes efforts to

keep the belongings as a safe work place through proper policy and operation. Besides that, line

managers are also responsible for performing different operations including monitoring over

operational costs, allocation of work, managing relationship with customers and checking quality

of products. They are also responsible for measuring operational performance of firm as well

(Kinnie and et. al., 2006).

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

on Italian restaurant

Recruitment and selection is very important part for any organization and transparency is

required in this whole process to recruit best talented employees. In order to establish new

restaurant, it is essential for HR manager to follow legal law and regulations developed by UK

government (Jackson, Schuler and Werner, 2011).

Sex Discrimination Act 1995/97: According to this law, it is responsibility of management of

company to equal treat with their employees without any discrimination at workplace. Indirect

and direction discrimination on the basis of the age, gender and their marital status are illegal in




the UK. During the recruitment of new employees, HR consultant of Italian restaurant must be

followed this regulation to decrease chance of discrimination at workplace (Edwards, Scott and

Nambury, 2007).for example: advertising related to Social Care Home must not encourages

gender biasness. For this they can advertise the ad campaigns with a famous female social

worker.



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National minimum wage act: It is essential for organization to follow this legislation

which emphasizes on that employee gets a minimum wage rate per hour (Kozlowski and

Salas, 2009). By considering this law, HR consultant of Mamma Mia restaurants will be

able to provide fair wages to their workforce as per the guidelines set by government.

Equal pay act 1970: As per this law, it is responsibility of newly appointed HR consultant

to ensure that there is no discrimination with the employees in employment on the basis

of financial terms (Lo, 2015).

Data Protection Act 1998: This act was developed to protect anyone to use personal

information of individuals for their own usage. In addition, it can be helpful for

organization to protect people's fundamental rights and freedoms. For example any data

or personal records of the employee and worker must be kept confidential. With is the

company related data must also be kept disclosed.




TASK 2

2.1 Analyze the reasons for human resource planning in organizations

In the context of anticipate future business and environmental forces, human resource

planning process is beneficial for organization. It provides facility of assessing requirement of

manpower to perform organization activities in a significant manner. The main purpose of HRP

is to assess need of human capital to carry out different business functions within stipulated time

and other reasons for HRP are: (Kopp, 2006).

Shortage of Manpower- Despite, the decade full of unemployment, there is a shortage of

human resources with proper qualifications, skills, and ability. That is why human

resource planning is needed.

Casual Vacancies- There are so many uncertainties with employees in a company such

as, uncertain death, physical inability, etc. hence human resource planning is needed for

smooth functioning of an organization (Huemann, Keegan and Turner, 2007).

Facing Dynamic Environment- In a dynamic environment like today, where nothing is

stable. Human resource planning is needed to cope up with risky environment, climatic

conditions

Besides that, in the context of starting up a new Social Care Home locally, new firm will require

4 managers and 20 support workers. In order to perform various activities such as marketing,

recruitment, administration and finance activities, care home will require talented and skillful

workforce. In this regard human resource planning process will be beneficial for company

(Guest, 2007). Despite of that, HRP will be required for organization in conducting different

functions such as analyze enterprise objectives, forecasting demand and supply of human

resource, estimating manpower gaps and formulating the human resource action plan etc.

2.2 Stages involved in planning human resource requirements

In order to ensure right candidates for right job, Social care home can consider human

resource planning process that can be explored as follow.

Analyzing organization objectives: The main aim objective of company is to recruit best

and talented employees for providing quality of services to customers at affordable price.

Inventory of human capital: At this stage, current number of employees, their capacity,




performance and potentials are considered. For the purpose of conducting different

operations, management of organization will require 4 managers and 20 support workers

(Edwards, Scott and Nambury, 2007).

Forecasting demand and supply of human resource: According to their job profile, by

effective use of internal and external sources requirements are measured and fulfilled.

The forcast of demand and supply is doneThen the market research is done. Number of

candidate needed, there qualifications, skills and aptitude are then tested (Lo, 2015).

Their job profile, job evaluation is keenly done. There should be proper matching of job

description with job specification, and the profile of the person should be suitable to the

Social Care Home.

Estimating manpower gap: Comparison of human resource demand and supply is

required in order to identify actual position of workforce such as surplus or deficit of

human resource (Kozlowski and Salas, 2009).

Formulating the HR action plan: At this stage, action plan is implemented with

considering needs of recruitment, training and interdepartmental transfer. Furthermore,

technology change, labour market competition and changing nature of work has to be

identified to implement human resource planning process at Social care home in a

significant manner (Cattell, 2006).

Once the demand and supply is seen, manpower requirement are then evaluated

(Kinnie and et. al., 2006). That means the vacancies are filled according to

comparison between demand and supply. Two type of manpower:

Surplus – it means if employees are more than needed so terminations are done.

Deficit- it means if less of employees are employed then addition of human

resources is done.

2.3 Compare the recruitment and selection process in two organizations

Companies Recruitment Selection Tesco To fill the vacant position,

enterprise is built internal

talent plan.

Organization relies on offline

recruitment method and they

invite candidates on the basis of




Appoint employee for

recruitment

People who have interested in

store job can direct approach

store with their CV (Compton

and et.al., 2009).

If employee will meet

internally then training and

development programme is

developed.

Both internal and external

sources are used for

recruitment such as E-

recruitment method, external

vacancy board and employee

referral and many more.

Firm effectively use social

networking sites to

communicate with candidates

and collect information about

them like personal and

professional details

skills and knowledge

Proper list of candidates are

prepared in which information

about candidate select and waiting

list are mentioned.

If vacancy is still vacant then

suitable candidate is call for

further recruited (Analoui, 2002).

Asda Use online recruitment system

HR management of

organization promotes career

opportunities through internal

staff and taking help of

consultancies firm.

New candidates will call for

Shortlist appropriate candidates

for interview at Asda Reality’ or

‘Asda Magic assessment center

Conduct the interviews base on

critera set by firm

Reference checking task will be

done.




interview on the basis of their

knowledge and skills like

qualification, education, and

expert area knowledge

(Kozlowski and Salas, 2009).

Internal recruitment process to

enhance speed and efficiency

of recruitment process and

save organization cost also

(Jackson, Schuler and Werner,

2011)

Conditional offer of

employmentwill provide to new

candidate.

For internal recruitment, Tesco looks after its “talent plan” to fill the vacancy. Internally the

employee’s performance is judged for promotions (Lo, 2015). If no suitable candidate is there

then it advertises its advertisement on its internal portal. So the Tesco’s plan of recruitment and

selection is more feasible (Huemann, Keegan and Turner, 2007).

2.3 Evaluate the effectiveness of the recruitment and selection techniques in two organizations

The effectiveness of recruitment and selection processes have followed in Tesco and Asda

can be compared on the basis of different parameters.

Table 2: Comparison of recruitment and selection techniques in two organizations

Comparison parameters Tesco AsdaRecruitment policies and

procedures

Relay on traditional

Transparent

Highly depended on modern or

online recruitment system

High transparent Job description and analysis Standardized format

More focus on experience

rather than education

High priority is given to

education and qualification of

candidatesRecruitment methods Both internal and external

source of recruitment are used.

Both internal and external

source of recruitment are used.

High priority is given to

external method and online




method (Kinnie and et. al.,

2006).Assessment centers Recruitment is done

within enterprise.

Different types of tests

of candidates such as

Psychological,

psychometric, aptitude

and practical tests are

conducted (Dimba,

2010).

It was developed Asda

Reality’ or ‘Asda Magic

assessment center to conduct

recruitment and selection

processes.

TASK 3



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3.1 Assess the link between motivational theory and reward

In order to run consultancy business in a proper manner, it is essential of management of

company to integrate link between motivation theory and reward at workplace. In this regard,

Maslow and Herzberg two factors theories can be considered (Huemann, Keegan and Turner,

2007).

Maslow theory: This theory provides information about most fundamental levels of needs of an

individual within organization. As per the presnet case scenario, this theory is appropriate

because it helps HR department of organization to identify and fulfill needs of employees.




For example, if company will provide reward to its employees on time then they will be able to

meet their psychological, esteem and actualization needs in a proper manner. All their needs will

meet then they will encourage for giving their best at workplace.

Herzberg two factors: This theory is based on hygiene and motivation factors. Physiological

needs safety and social needs under the category of hygiene factors. In the absence of these

factors, employee will de-motivate to give their best at workplace. On the other side, esteem and

self actualization needs come under the motivating factors. For example, if will provide

monetary and non-monetary rewards to them on time then they will motivate to retain with the

firm for long time period. By meeting esteem and self-actualization needs, motivation level of

staff-members can be enhanced (Lo, 2015).

3.2 The process of job evaluation and other factors which determine pay

Job evaluation of an individual is highly depended on some dimensions which include

work, knowledge, skills, work complexity, leadership and the complexity of the decision making

role. These dimensions play a crucial role in the context of deciding salary of employee at

workplace. In order to decide payment of individuals, target achieved by employees (sales,

growth and financial) and benchmarking related factors are also considered by HR management

of organization (Torrington and et. al., 2009). Effective procedure of job evaluation is:

Job evaluation: it is is a systematic process for defining the roles and responsibilities of

individual candidates within organization.

Types of Non-analytical Schemes:

Job Ranking: In this process, HR mangerof retail firm can compare the whole jobs with one

factors and arranging them in order according to rank provided

Job Classification: By comparing the whole job with a scale, slotting of jobs can be done into

grades like skill, decision making and responsibility (Edwards, Scott and Nambury, 2007).

Analytical Schemes:

Factor Comparison: It is based on an assessment of factors and it provides opportuinity to HR

manager to assign a large number of jobs to be ranked at one time and decide payment related

decion at appropriate time.This method can be used to prepare adequate payment system. In

addition, by using method, each factors are assessed separately like job role and contribution of

employees so that payment regarding decision can be taken in a proper way (Lo, 2015).




Points Rating: In this method, points are allocated according to the level which are needed for

the job. By applying this method, firm can be able to judge performance of employees on the

basis of skill, effort, responsibility, and job conditions factors.

3.3 Effectiveness of reward systems in different contexts

Reward systems are varying from industry to industry due to change come in working

environments. This fact can be understood with help of taking example of reward system used in

manufacturing companies and software development firm. In manufacturing sectors,

organizations are highly focused on different factors such as child care, extended parental leave,

career breaks, cafeteria incentive schemes and performance-related pay etc. Extrinsic reward can

be provided such as bonuses, share, gifts, commission and target bonuses etc. to motivate

employees to give their best at workplace (Bernardin and et. al., 2011). With adoption of reward

system both the employee and the organization benefited from it. The productivity of the

organisation increased, they got quality work. The relationship between the employees and top

managers became healthy. Performance of the employee increased and they started working hard

to achieve organisational and there own personal goals (Lo, 2015).

The effectiveness of reward system brings advantages and disadvantages both. They are:

Performance With adoption of reward system, both the employee and the organization

benefited from it. The productivity of the organisation increased, they got quality work.

Salaries And Wages-The relationship between the employees and top managers became

healthy. Performance of the employee increased and they started working hard to achieve

organisational and there own personal goals which in turn help the employees to earn

more.

3.4 Methods used for monitoring employee performance

In order to monitor performance of employees, organizations can use different strategies

such as watch employee’s work, one to one conversion with individual, self-monitoring tools and

review work in progress on a regular basis.

Quality of work- Quality depends on the the number of projects an employee is working on. Are

they finishing there projects before deadline? These are the question which will help to

understand the root cause of issues faced by employees of Tesco (Huemann, Keegan and Turner,




2007).

Carrying out client survey- The feedback of client about the employee, his work help the

company to understand the employees performance working in Tesco.

Mentoring: In this training method mentoring is always done by a superior person. They

works to develop an attitude. Managerial employees uses it. It is also day to day

interaction(Patel, Messersmith, and Lepak, 2013)

Lectures and Conferences: This off the job method helps the employees to get knowledge

through lectures and conferences. These program starts with lecture and conference. It is

a verbal way to train employees. These lectures and presentation motivate employees.

The subject must be good enough. All over the corporate sectors and in education

institutes it is the most common form of training.

Simulation Exercises: simulation means creating an artificial environment or situations

related to real world. There are 3 techniques of simulations. They are: Management

Games, Case Study, Role Playing(Saks and Belcourt, 2006).

Job Rotation:It is a training process in which employees get rotated by series of similar

jobs. Rotation help employees in performing their task with quality. It also takes away the

boredom and allows to develop a good interpersonal relationship with large number of

employees.




Figure 2: 360 degree method

(Source: Jackson, Schuler and Werner, 2011)

Along with these strategies, HR manager of companies can measure performance of staff-

members in terms of monetary and non-monetary contributions, 360 degree assessment method,

use whiteboards, dashboards, peer appraisals, observation and taking feedbacks from colleges,

customers, suppliers and other departments (Lo, 2015). Checklist method can be used for the

purpose of performance of an individual at workplace (Kozlowski and Salas, 2009). For

example, to support existing clients, enterprise can develop performance plan that can be

understood as follow.

Figure 3: Employee performance plan

(Source: Tsui and Lai, 2009)

TASK 4

4.1 Identify the reasons for cessation of employment with an organization

As per the present case scenario, client operates a medium-sized firm that produces

seasonal greeting cards. He wants to understand reasons which are responsible for cessation of

employment at workplace. Reducing budget, performance, attitude and behaviour, dismissal of

employees in wrongful and unfair ways are the main reasons responsible for employee’s

termination. In addition, an individual can terminate job due to resignation, retirement,

termination of contract, and redeployment causes (Edwards, Scott and Nambury, 2007). In




addition, employer may terminate the employment of an employee in some circumstances such

as :

Business Conditions- Due to dynamic environment and unfavourable conditions,

sometimes business has to face some difficulties such as low profits. In these conditions

company cannot meet there employees demand and so terminate them.(Kozlowski and

Salas, 2009).

Behaviour- Sometimes the behaviour of the employee creates problem. For

example:some of the companies policies are not shown to the client but the employee did

the same. This makes a breach of contact and so termination.

Complex techniques- Tesco uses these techniques which includes critical reviewing such

as internet monitoring, wire tapping, GPS tracking, interaction on social media, etc.

4.2 Employment exit procedures used by two organizations



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In order to understand exit procedure, Tesco and Asda enterprise can be taken. HR

management of Tesco is followed a particular procedure for all the employees leaving the

organization on a permanent basis. Before the employees leave the organization, some steps are

followed that can be enlisted as follow (Purcell and Hall, 2015). Exit interview, means the face

to face interview of the employee who is leaving the job. This method is used totoknow what

employee is thinking about the work place, the working environment and to know the reason of

their leaving the job (Kozlowski and Salas, 2009). In addition, pension arrangements on leaving

are also provided to some employees (who are above the age of 50 -55) on the basis of their

experience and contribution in firm. On the other side, HR department of Asda is emphasized on




retaining staff if possible or make the exit a well-documented and easy process. Begin transfer of

employee knowledge, document the employee’s key impressions, complete operational

responsibilities and conduct a proper employee exit interview to solve their issues (Compton and

et.al., 2009). Exit procedure follows in Asda is very simple as compared to Tesco and employee

has to give 15 days’ notice period to the manager. Further, by making positive idea, manager will

try to identify the reasons of resignation (Kozlowski and Salas, 2009).

Exit procedures used by Tesco are as follows:

Knowledge Transfer Question-These questions are related to transfer of job or any related

promotion in job. Vital knowledge of the employee cannot be lost. This is the reason why

transfer of knowledge is necessary in company like apple and Tesco where there are large

number of employee.

Responsibilities Related To Operation- Before leaving of the employee, the practical

details of departure is done such as software clean from the personal laptops, office keys

is return, I-cards given back, data erased, salaries account of the employee is closed etc.

As there are large number of workers are there in companies like Apple and Tesco.

Standard Exit Survey- This survey is related to the employee . For example: Is he happy

with the past staff?, reason of leaving the company, etc. Then these data reliability is been

checked with the the statistical data.(Tittel, 2011)

Face To Face Interview-lastly, face to face interview is taken for the workers well-being

and the improvement needed in the company regarding other employees, working

conditions.

4.3 Examine the impact of the legal and regulatory framework on employment cessation

arrangements

Law and regulatory frameworks in the UK directly affects the cessation of employees.

Without any fair reason, any organization cannot terminate employee from employment (Tsui

and Lai, 2009). If employer will not follow legislation developed by UK government then

employees are free to take legal action against the employer. There are two types of

terminations. They are:

Lawful Termination - these terminations are based:




1. On The Basis Of Time- In this type, the employees can be terminated once once they

serve the given notice period. That notice period can be 30 days to 3months.

2. On The Basis Of Contract- in this type, the contract gets terminated once the employees

complete the work for which they were hired.

3. On he basis of behaviour- different individuals come from different background to

complete organizational goal. Some employees behaviour such as absenteeism, not

punctual, not having good relations with other employees, etc creates problem in the

organization. So termination is the option left (Edwards, Scott and Nambury, 2007).

This lawful termination does not affect the organization working. Overall these termination leads

to efficiency and effectiveness in the organization. Where all the targets are achieved.

Unlawful terminations- Unlawful terminations such as a company at loss, fire its maximum

employees without the notice period. These terminations affect the goodwill of the company

(Kozlowski and Salas, 2009).




CONCLUSION

From the report, it can be concluded that human resource management can play an

important role in achieving enterprise goal and retain best and talented employees with company

for long time. Motivation theories and exit procedure are followed within enterprise can be

helpful for firm in term of reducing employee turnover. In addition, legal framework is followed

within company also influence performance of companies and staff-members associated with

company. On the basis of the facts, it can be said that Human resource management play an

important role in term of achieving growth and success in a significant manner.



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REFERENCES

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Human Resource Management: Management of People Within Organization