HUMAN RESOURCE MANAGEMENT

SUBMITTED TO: - SAUD SUBMITTED BY: - HAMZA IQBAL

SUBMISSION DATE: - 30-AUG-2011

CONTENTS
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Introduction2 LO 1:- Understand the difference between....3 1.1 Distinguish between personnel management and human resource management and discuss the historical development and changing context in which they operate3 1.2 Assess the role, task and activities of the human resources practitioner5 1.3 Evaluate the role and responsibilities of line managers in human resource practices.5 1.4 Analyze the impact of the legal and regulatory framework in human resource management5 LO2:- Understand how to recruit employees... 2.1 Analyze the reasons for human resource planning in organization 2.2 Outline the stages involved in planning Human Resource Requirements. 2.3 Compare the recruitment and selection process in two organizations. 2.4 Evaluate the effectiveness of the recruitment and selection techniques in two organizations. LO 3:- Understand how to reward employees in order to motivate and retain them. 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 context. 3.4 Examine the methods organizations use to monitor employee performance. LO 4:- Know the mechanism for the cessation of employment 4.1 Identify the reasons for cessation of employment with an organization. 4.2 Describe the employment exit procedure used by two organizations. 4.3 Consider the impact of the legal and regulatory framework on employment cessation arrangement.

Introduction 2

Human resource management is an important aspect of an organisation which focuses on achieving competitive advantage through strategic development of a highly committed and capable workforce using an integrated array of cultural and personal technique (Storey, 2001) which include focus on recruitment of management providing direction for the people who work in the organisation and can be performed by line manager dealing with the issue related to people such as compensation, hiring, safety, benefits, employee motivation, training etc.

LO 1:- Understand the difference between personnel management and human resource management. 1.1 Distinguish between personnel management and human resource management and discuss the historical development and changing context in which they operate. 3

Some experts says that there is no such difference between personnel management and human resource management and both words can be used interchangeably . Whilst on other hand some other came up with many differences between them. PERSONNEL MANAGEMENT: Personnel Management can be defined as obtaining, using and maintaining the satisfied workforce. It is a significant part of management and concerned with employees and their relationship with organization. Personnel management is administrative in nature. Basically it deals with employees, their payroll and employment laws etc. We can consider it reactive, in the sense it provides concern and demands as they are presented. From motivational aspects, it tends to motivate employees through rewards, compensations and bonuses. According to Flippo, Personnel management is the planning, organizing, compensation, integration and maintenance of people for the purpose of contributing to organizational, individual and societal goals. According to Brech, Personnel Management is that part which is primarily concerned with human resource of organization. http://www.managementstudyguide.com/personnel-management To sum up basically Personnel management has certain objectives and aim to fulfil: Creating a congenial and healthy environment for employees or workers to function effectively. To bring about organizational and human resource development through training, development programmes or even managerial succession planning. Selection and placement of right number of people and ensuring proper allocation of duties and responsibilities upon them. Creating better inter-personal relations, developing a sense of responsibility and responsiveness amongst workers and employees. Boosting the morale and sense of initiative amongst employees. Adopting best techniques or conceivable methods to bring best possible development of workers on work. Cooperation between labor and capital as well as labor and labor. HUMAN RESOURCE MANAGEMENT: It is the function within the organization which focuses on recruitment, management and providing directions to peoples who works in an organization. It can also be performed by line managers. Its an organizational function which widely deals with, 4

Compensation Hiring Performance Management Safety Wellness Benefits Employees Motivation Communication Administration Training Human Resource Management is also a strategic approach to managing peoples and the workplace culture and environment. Effective HRM plays an important role to make an employee able to contribute effectively and productively to the overall company directions and the acquisition of an organization's goals and objectives. It is moving away from old traditional personal, administrational and transactional roles. Now a days Human Resource Management is expected to add values to the strategic utilization of employees and that employee program impact the business in measurable ways. New role of HRM also includes, Strategic Direction HRM Metrics and Measurement to demonstrate the values. http://humanresources.about.com/od/glossaryh/f/hr_management.htm 1.2 Assess the role, task and activities of the human resources practitioner. In old days HR department was known as Personnel and employees who worked there were responsible for hiring and firing and leave and all that is all about it. Now a days HR professional are more demanding then it is ever been before. It's also consider as an essential to the success of the business. During last two decades HR functions evolved into popular career choice and now its surrounds a number of areas. In these days HR professional find themselves in range of issues like, Planning Pension Staff Development Training 5

Occupational Health and Safety 1.3 Evaluate the role and responsibilities of line managers in human resource practices. Line managers are those to whom team directly report and who have the responsibility to the higher management for team. Typically line managers responsibilities includes, Day to day Peoples Management Managing Operational Costs Providing Technical Expertise Organizations of Work Allocation and Rotas Monitoring Work Process Checking Quality Dealing with Costumers/Clients Measuring Operational Performance In recent years relationship between line managers and human resource functions has been subjects to a number of changes and tensions. Individualization of employment relationship has placed new burdens and responsibilities in hand of line managers. An evident example is that, with collective pay settings provisions giving way to individual performance related pay awards in many organizations, the role of each employee's line manager has become increasingly influential in determining individual pay increases. The research shows that line managers plays a pivotal role in terms of implementing and enchanting HR policies and practices. Where employees feel positive about their relationship with their front line managers, they are more likely to have higher levels of job satisfaction, commitment and loyalty which are in turn associated with higher levels of performance or discretionary behavior. Discretionary behavior is defined as that which goes beyond the requirements of the job to give the extra performance that can boost the bottom line (or profit levels). Overall, the areas where line managers make a significant difference to people management practices include: Performance Appraisal Training, Coaching and Guidance Employee Engagement (including involvement and communication) Openness (how easy is it for employees to discuss matters with their line manager) Work-life Balance Recognition (the extent to which employees feel their contribution is recognized.) 6

These are all areas where, although the processes may be designed by HR, they cannot be delivered by HR. The line manager role is crucial in a number of respects: Enabling the HR Policies and Practices, or Bringing them to Life Acting upon advice or Guidance from HR Controlling the Work Flow by Directing and Guiding the Work of Others. 1.4 Analyze the impact of the legal and regulatory framework in human resource management

LO2:- Understand how to recruit employees. 2.1 Analyze the reasons for human resource planning in organization. Planning is very important in our daily life's normal activities. Several definitions of have been given by different author that it's all about the importance of achieving our objectives. Surprisingly this important part of HR is mostly ignored in HR. In most organizations those on top are not aware of values of HR planning. Organization without HR planning has less chances of opportunities to cope with challenges ahead. HR planning is defined as systematic analysis of human resources needs in order to ensure that correct number employees with necessary skills are available when they are required. When we prepare our planning, practitioner have to bear in mind that their staff members are well aware of objectives they need to acquire. This is one of the reasons why employees seeks employment. Neglecting these needs can lead towards poor motivation and which will definitely leads to poor performance and even industrial actions. The main goal of HR planning is to ensure that company always has candidates lined up to take over on new positions without losing time and productivity. Forecasting is one of most important component of HR because it lets the company know how long hiring will take and what it can do to speed it up. If HR department decided that organization requires a large number of workers to staff a new division, but the job market is tight for the workers with skill needed, it will have to secure these workers. Because competitors also seek people with these skills, the company has to step up recruitment efforts and increase compensation to attract talent. If the company did not participate in the planning of human resources, it does not know how it would be difficult to hire the workers necessary until very late. Potential employees will be lost to competitors, business will not be able to build a team needs them. 2.2 Outline the stages involved in planning Human Resource Requirements.

Planning is very important to our everyday activities. Several definitions have been given by different writers what planning is all about and its importance to achieving our objectives. The six steps of HR planning that is; Forecasting Inventory Audit HR Resource Plan Actioning of Plan

Monitoring and Control.

2.3 Compare the recruitment and selection process in two organizations. Recruitment Process of Tesco. Tesco announces jobs in different ways. Process depends on available jobs. Recruitment process of Tesco include two stages, Internal Recruitment External Recruitment Internal Recruitment:For internal recruitment Tesco always take first look at its internal Talent Plan to fill the vacancy. Its a process which lists the current employees waiting for a move it can be on same level or promotion. If there is no suitable person on the internal management development programs Tesco advertise the post internally on intranet within the organization for 2 weeks. External Recruitment:For external recruitment, Tesco advertise the vis its website (www.tesco-careers.com) or through the vacancies boards in stores. Application are made online for managerial positions. Successful applicants have an interview followed by participation in an assessment center for the final phase of the selection process. Those interested in store based jobs with Tesco can approach the store with their CV or register if Job center Plus. The shop is preparing a waiting list of applicants in this way and calls for more jobs are available. For harder to fill jobs or more specialized, such as bakers and pharmacists, Tesco announced externally, Through its website and offline media Through television and radio 8

 By placing ads on Google or in magazines such as The Appointment Journal Selection Process of Tesco. Selection involves suitable candidate from those that applied for job vacancy, at the same time keeping it to employment laws and regulations. Screening is very important part of selection phase. It ensures that the person chosen is fulfilling the criteria of job requirements. In the first stage of screening Tesco's selectors carefully go through each candidate's CV (CURRICULUM VITAE). Well written (designed) and positive CV helps to access whether a candidate is matching the specifications for the job. The process Tesco uses to select external management candidates has several stages. A candidate who passes the screening attends the assessment center. Assessment center take place in store and run by the managers. They help to provide consistency in the selection process. Candidates are given the various exercises, including team working activities and problem solving exercises. Mostly it involves the problems they might deal with at work. Candidate approved by the internal assessment centers then have an interview. Line manager for the job take part in interview to make sure that the candidate they are approving fits the job requirements.

Vacancies advertised on Tesco's website or other media, such as national press Screening of Applicants' Cvs to find best fits with Tesco

Successful Candidates invited for Interview Successful Candidates from Screening Attend assessment Center

Unsuccessful Candidates Sent letter

Successful Candidates Invited for 2ND Interview

Successful Candidates sent Offer Letters and Contract http://www.thetimes100.co.uk/downloads/tesco/tesco_13_full.pdf Recruitment and Selection Process of Asda:Asda says that we will like to keep everything simple and straightforward. Asda has divided its recruitment and selection process in 3 simple and easy stages. Stage 1:- Online Application 9

The first stage of the selection process is to fill a number of tests and submit your application online. It takes up to an hour to complete. Stage 2:- Asda Reality If applicant is successful at the stage of application, he will be asked to come to Asda's assessment center called which is called Asda reality. The reality is a great opportunity for a candidate to experience what it's really like working at Asda and gives him an overview of the role he have applied. At the same time it gives a glimpse to Managers of what a candidate is well at and also give the opportunity to identify areas for his development. A candidate have to participate in range of different activities. They can be individual or group/team task. Stage 3:- Interview The interview is the final stage of the whole process. Candidates have the opportunity to show a senior manager and leader in his chosen field that he wanted to be work on. 2.4 Evaluate the effectiveness of the recruitment and selection techniques in two organizations. Tesco will seek the most effective way in terms of cost to attract good candidates. Because it is expensive to advertise in television and radio, and some magazines, but sometimes it is necessary to ensure that the right kind of people has learned about job vacancies. It is easy to for candidates to learn more about employment opportunities and simple application process. Before reaching Tesco site, the candidate can find out local jobs, management positions and head office positions . The site contains the online application form for people to provide directly. ********** LO 3:- Understand how to reward employees in order to motivate and retain them. 3.1 Assess the link between motivational theory and reward. A motivated and increased concentration workforce is less likely to make mistakes, as a result less accident or conflict comes along. It is also likely to appear more loyalty for a company and less absenteeism from work. If the workforce is not motivated this can affect both the quality of work and efficiency of staff. Motivational Theory and Rewards in Practice at Tesco. Tesco believe in motivation and rewarding its employees. About motivation Tesco says, Attract a person to do because he/she wants to do it Tesco believe that the business depends on two kinds of peoples staff and customers. It appreciates that their staff are unique and have diverse lifestyle outside work. To this side Tesco support its staff to create a balance between work and personal life and offers them rewards through, Flexible working 10

 Reduced rate or Free health benefits Discount Gym memberships Staff Discounts Company Share Options Every year Tesco invites its staff to take part in a staff satisfaction survey called Viewpoint which gives them the opportunity to express their views on almost every aspect of their job. The results from the survey help Tesco make sure it is offering the right things to its staff to keep them motivated. Some of the benefits available to staff include: Lifestyle break (4-12 weeks off work and guarantees the job back at the end) Career break (From 6 months up to 5 years away from work with right of return) Pension scheme (This award-winning scheme provides clearly defined long term benefits) 3.2 Evaluate the process of job evaluation and other factors determining pay. The Hay Group Guide Chart Profile Method of Job Evaluation is the most widely used single job evaluation method in the world, being used by over 7,000 profit and non-profit organizations in some 40 countries. While there are many factors which could be considered in developing a job evaluation scheme, these can be grouped into three broad factors Knowledge and the skills required to do the job. Kind of thinking needed to solve problems commonly face. The responsibilities assigned to the job. This provides the basis of the three main factors of the Guide Chart Profile Method Know-how, Problem Solving and Accountability - which are common to all jobs, and which are subdivided into several elements. This can be represented by the simple model; INPUT PROCESSING OUTPUT

Know-how

Problem Solving

Accountability

Taken from Armstrong, Michael, and Murlis, Helen, Reward Management: A Handbook of Remuneration, Strategy and Practice: 5th Edition, 2004

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Factors Determining Pay/Salary. There are so many factors which determine pay of employees. Kinds and levels of Skills Required Supply and Demand of Labor Geographic Locations Employment Setting Compensation Philosophy Gender Difference Profitability of Organization Employment Stability Employee Tenure and Performance http://www.asha.org/careers/job/determinSalary.htm 3.3 Assess the effectiveness of reward systems in different context.

3.4 Examine the methods organizations use to monitor employee performance. Once an annual ritual, performance appraisal has become a continuous process by which an employee understands of a companys goals and his or her progress toward contributing to them are measured. Performance measurement is an ongoing activity for all managers and their subordinates. Performance measurement uses the following indicators of performance, as well as assessments of those Quantity Quality Timeliness Cost-Effectiveness Absenteeism/Tardiness Creativity Adherence to Policy Gossip and Other Personal Habit Personal Appearance/Grooming 12 indicators.

 Manager Appraisal Self-Appraisal Peer Appraisal Team Appraisal Assessment Center 360-Degree or Full-Circle Appraisal MBO (Management by Objectives) http://www.hrworld.com/features/16-ways-measure-performance-021908/ LO 4:- Know the mechanism for the cessation of employment 4.1 Identify the reasons for cessation of employment with an organization. An employer can dismiss an employee at will as long as it does not violate the laws or the contract of employment and fight against discrimination, according to law of Optimum. There are several reasons for the termination. Employee may also be voluntary to leave the company for any reason. Employee termination may have different causes, Layoffs Mergers / Buyouts Poor Performance Behavioral misconduct http://www.education.vic.gov.au/hrweb/employcond/res/cess.htm 4.2 Describe the employment exit procedure used by two organizations. Exit procedure in place at TESCO/SAINSBURY. Usually, there are three procedures in place at Tesco/Sainsbury. Resignation Transfer Termination Resignation:If an employee is not happy with the job or environment of the work place he can write a letter to personal manager or area manager. He / She have to clearly mention what are the reason of leaving the workplace. Transfer:13

For transfer there are two methods in place at Tesco. Either en employee want to have transfer in particular store or the manger want to send him to another place based on his performance. Termination:For termination it has to be according to law and disciplinary regulation. Verbal and written warning Disciplinary Exit Interview Termination Letter 4.3 Consider the impact of the legal and regulatory framework on employment cessation arrangement.

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