Human Resource Management

Unit Code: k/601/1264 Lecturer: Siham Aboujanah Submission Date: 29/07/11 QCF Level 5

Submitted by:

Acknowledgement I wish to begin by thanking lecturer, Mr.Siham Aboujanah, thank you for the wisdom, understanding, and compassion that you have imparted to me and my ideas. I am grateful to my parents, brothers and sisters for their extreme moral support, encouragement and patience during the course of studies as well as throughout my academic career. No personal development can ever take place without the proper guidance of parents.

Contents Topic Page No. Introduction 1.1 Human Resource Management and 4 Personal 4

Management 1.2 Functions of Human Resource Management 1.3 Role of Line Managers in HRM 1.4 Impact of Legal and Regulatory Framework 2.1 Human Resource Planning 2.2 Stages in Human Resource Planning 2.3 Recruitment and Selection process 2.4 Effectiveness change of Recruitment and 5 6 7 8 8 9 selection 12 13 13 13 14 15 16 18 18 19

techniques 3.1 Link between Motivational Theory and reward 3.2 Job Evaluation 3.3 Reward Systems 3.4 Monitoring Employee Performance 4.1 Reasons for Cessation of Employees 4.2 Exit Procedures 4.3 Legal and Regulatory Framework Conclusion References

Introduction
People are the important resource of organization. Managing them well can improve the performance and efficiency of organization. In this report human resource management is discussed. It also includes the recruitment and selection method and performance management.

Task 1
1.1 Human Resource Management and Personal

Management
It is true that human resource management has been developed form personnel management. According to Storey (1995) cited by Pinnington A. et. al.(2007), HRM in more specific sense is involves line and top management in pursuing the belief that a committed and capable force will give the organization a competitive advantage. Personnel management was used in old times. In old days human resource departments main functions were administrative in nature. This department used to do transactions and employee advocacy. It used to respond according to demands of employees. The concerns and demands were presented to Personnel managers and they used to react according to those demands. Personnel department used to be considered as free function of an organization. It was usually concerned with the things like payroll, promotions etc. If we talk of motivation, personnel department employees were being motivated with monetary rewards like bonuses, incentives etc. In old times it was thought that the job satisfaction provides the motivation to employees for performing well. The personal management philosophy is to control the employees to get the work done. It has clearly defined procedure to do a job. The employees used to
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be under regular supervision in the personnel management and didnt have any independence to use their own ideas. In later times when world changed like globalization occurred and it was felt that employees are an important resource for organization, the concept of human resource management developed. They are not considered as machines or tools to accomplish the tasks of organization. Human resource management do the functions same as personnel management but in a different way. Human resource management it explained in the wider scale than personnel management. Enableing employees to give their maximum to organization are the main goal of human resource management. It develops the employees to achieve this goal. Along with performing administrative tasks its functions also includes developing strategies to manage the human resource of organization. It keeps developing the policies and functions for workforce. It is not static function. Human resource department is the essential part of organization. Almost every manager is involved in the human resource activities in one or other form. It is not independent function like personnel department. Coming to employee motivation, human resource department motivates employees with making them to work in teams, encouraging them to met challenges. It let them to use their own creativity in working ways.

1.2 Functions of Human Resource Management

The main functions of HRM (Human Resource Management) are to employ people, to develop their resources and to utilises maintain and compensate their services for the organisation. HRM practices can be

classified in terms of their impact on organisational performance through employee's skills, ability, motivation and the way that work is structured. Each and every of these functions influences simultaneously organisational performance. One can say that HMR is concerned with
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maintaining and ideally maximising organisational performance and profit. This is done by managing the human resources with a focus on expanding customer base that gives profit to the company. Under this directive it is obvious that there are many opportunities for HRM to influence organisational performance as HRM plays an important part for the functioning of every single department in an organisation due to the fact that it can take direct influence on the people working there.

1.3 Role of Line Managers in HRM

The line managers are responsible for the various functions of

organisation like finance and marketing. On the other hand the staff managers are responsible for functions related to human resources like employee policy and laws. They are the link between top management and employees. They are means of communication and pass the information from top to the employees. Line managers could be very helpful in implementing the strategies formed by human resource director as they can directly contact the employees. They can monitor them closely and help in implementing the policies in a better way. They can make employees understand the strategy and how their jobs contribute in reaching the goals of organization clearly. The line managers intermediate between employees and human resource director. They guide employees, listen to their problems and convey it to the human resource director. The decisions come from top level and those should be implemented by the staff and connection is line managers and they have and ability to inspire the staff to getting things through by the people.

1.4 Impact of Legal and Regulatory Framework

As all the activities are bound by some rules and regulation, recruitment and selection is no exception. Recruiters should always follow the related laws. Disability Discrimination: Any kind of discrimination against disable candidate is unlawful. There is an act called disability discrimination act which prevents this type of discrimination. Race Relation Discrimination: In this act, discriminating against any person on the basis of race, religion, color, nationality is unlawful. Sex Discrimination Act: Any kind direct or indirect discrimination on the basis of sex is unlawful according to rules. Employment Equality (age): All the candidates irrespective of age should be given equal opportunity in selection process. All the above acts make the discrimination unlawful on the basis of the above motioned criteria. The motive behind binding the recruitment and selection process is to avoid the discrimination and give equal opportunity to everyone regardless of sex, race, gender etc. There are different types of penalties for different types of discrimination offenses. Both direct and indirect discriminations are prohibited according to law in the recruitment and selection process.

TASK 2
2.1 Human Resource Planning
Human resource planning is important in the similar way as planning is done before any important task is done. Employees are very important for organisation and planning to manage them is equally important. It is about gathering information and data about the employees. In this important decisions are taken about employees. HR planning enables organisation to make best use of employees and utilize their talent and abilities fully. HR planning helps employees along with organisation as it helps them in their career planning and moving up in their career. This leads to motivate employees and makes their performance better it helps in developing the strategies related to the employees. If HR planning goes wrong, organisation could suffer a lot of financial losses and other losses. The second reason for which human resource planning is important because it helps in utilizing this resource fully. If the planning is done demand in the future could be forecasted, hence reducing the wastage. To meet the objectives of organization, this panning is done. If strategy has to be implemented at root level it has to be implemented to the people of organization. Thus to implement the strategy, planning has to be done before the actual implementation to make it successful.

2.2 Stages in Human Resource Planning

Forecasting: In this stage, it is analyzed that how many employees are required and where. It is assessed that for a particular job how many employees are needed. This looks at the factors like in near future what changes can be made in the workforce. Scanning the External Environment: The external environment is studied to know about the opportunities available and threats for the
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organization. The external environment is studied because the workforce in the market is always same. It gets to know the characteristics of workforce. In this the economic conditions of the market is assessed. It is about studying the trends of market. It checks that market is going up or down in future. Market trends also influence the workforce available outside the organization. Internal Assessment of organizational workforce: In this stage it is checked that what kind of jobs is to be done in the organization. It also considers that what kinds of skills are required to accomplish those jobs. It checks that how many positions are to be filled in the organization. Organizational Capabilities Inventory: By going through all above steps the data which is required to forecast the demand and supply is collected. In this step the forecasts on the basis of that data are done.

2.3 Recruitment and Selection process

Recruitment involves attracting the right standard of applicants to apply for vacancies. Here two organisations taken are Tesco and McDonalds. Their recruitment and selections process is compared. Tesco Recruitment and Selection Tesco advertises jobs in different ways. The process varies depending on the job available. Tesco first looks at its internal Talent Plan to fill a vacancy. This is a process that lists current employees looking for a move, either at the same level or on promotion. If there are no suitable people in this Talent Plan or developing on the internal management development programme, Options, Tesco advertises the post internally on its intranet for two weeks.

For external recruitment, Tesco advertises vacancies via the Tesco website www.tesco-careers.com or through vacancy boards in stores. 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 Jobcentre Plus. The store prepares a waiting list of people applying in this way and calls them in as jobs become available. Selection involves choosing the most suitable people from those that apply for a vacancy, whilst keeping to employment laws and regulations. Screening candidates is a very important part of the selection process. This ensures that those selected for interview have the best fit with the job requirements. In the first stages of screening, Tesco selectors will look carefully at each applicants curriculum vitae (CV). The CV summarises the candidates education and job history to date. A candidate who passes screening attends an assessment centre. The assessment centres take place in store and are run by managers. 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. Candidates approved by the internal assessment centres then have an interview. Line managers for the job on offer take part in the interview to make sure that the candidate fits the job requirements.

McDonalds Recruitment and Selection Under McDonald's recruitment policy, each individual restaurant is responsible for filling hourly-paid positions. The Management Recruitment department co-ordinates the recruitment of managers in McDonalds.

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For recruiting hourly-paid employees McDonald's use several avenues. Positions are generally advertised in the restaurant. The company's recruitment history shows this is the best method of hiring quality staff e.g. people living locally and/or friends of existing employees. McDonald's also uses local job centres, career fairs and other local facilities. It is vital to use effective hiring material with a clear message targeted at the right audience. A recruitment exercise often generates more applications than there are positions available. The manager will select the applicants to be interviewed and will conduct the interviews. A well-run interview will identify an applicant's potential to be a successful McDonald's employee. To find people who will be committed to excel in delivering outstanding service, McDonald's has an interview guide that helps the company predict how an applicant's past behaviour is likely to influence future performance. The questions look for actual events or situations rather than allowing applicants to give a general or theoretical response. Interviewers look for behavioural evidence in the applicant's life history that fits with the requirements of the job. The interviewer rates candidates on their responses and offers jobs to Wherever possible, McDonald's directs applicants towards applying on line at www.mcdonalds.co.uk. People who cannot access the web can call the Recruitment Hotline, or pick up a pre-paid Business Reply Card from a McDonald's restaurant. The selection process includes an initial online psychometric test. This test produces an initial score. The applicant then attends a first stage interview and is offered "On Job Experience" (OJE). This is a 2-day assessment in a restaurant. Successful completion at OJE will lead to a final interview, after which the manager decides whether or not to hire the applicant.

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2.4

Effectiveness

of

Recruitment

and

selection

techniques
Recruitment and selection process in Tesco and McDonalds is different according to the requirements of organisation. Comparing the effectiveness of process both processes are quite effective according to the requirement of these organisation. They are fulfilling the needs of human resources. The chosen employees work for them and both organisation are profiting from their employees. In Tesco, the organisations look for people for long term at basic level. But in McDonalds looks for the hourly paid employees who are able to work adhoc basis. It also gives its temporary staff opportunity for build a career in it, but at first place it looks for hourly paid employees for short term. While this is not the case in Tesco. Tesco from beginning look for the employees who can work for them for long period. The technique used by McDonalds is based on the behavioural questions already formed. This looks at the behaviour of candidate that he will be showing in different situation during the job. In Tesco there are no such questionnaires to judge the candidates. It depends directly on the interview

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Task 3
3.1 Link between Motivational Theory and reward
Motivating employees is an important function of human resource management. Keeping employees motivated is not easy. There are many motivational theories given by management thinkers. Some of these theories produce a clear relation between the motivation and reward. One such theory is Maslows theory. In this theory the pay comes second from the bottom in motivating employees. If such theories are studies correctly and applied to the organization reward system, it will defiantly help in increasing the performance of employees and motivating them. There will be positive results from relating the motivational theories with the pay of employees. The organization should be able to identify the needs of employees. The rewards should be given according to the needs of employees. Along with motivating them to perform well, rewards should be able to retain the employees. Retaining and promoting the best people and paying people according to their performance should be ultimate aims of reward system in an organization. Thus in view of above findings it could be concluded that the organization should be able identify the appropriate motivational theory such as Maslows theory, Taylor Instrumental Theory, Victor Vroom Theory etc and link them with the reward system. This will affect the human resource in positive manner and help in forming an effective reward system.

3.2 Job Evaluation

To ensure the achieving targets of any organisation have to regular monitoring system to check the track where organisation towards. The job evaluation is very important for the maintaining the output of employees. Although publicly-owned, NDA offers pay and conditions that
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are in line with similar private sector industries. This is important in enabling the company to attract talented and highly qualified staff. Pay may also be structured to reward performance. The factors that determine the pay are : Place-rate: It is a traditional method of payment but is only relevant if output can readily be measured. Commission payments: It is directly reward staff for achieving sales, are also unsuitable for NDA. Performance: This rewards employees who achieve their agreed targets. NDA sets personal and organisational targets that trigger additional payments.

3.3 Reward Systems

The reward system can be classified on the basis of the giving out the pay to employees. There are many payment systems. Some of them are performance related pay, Bonus, Merit pay, Profit sharing and financial incentives. The merit rating is also important factor in deciding the pay for employees. This is the level of the employee which decides the pay for him. There is generally four levels beginner, qualified, experienced and outstanding. The beginner is the lowest level of an employee from whom only efficiency of doing the job is expected. The next level is qualified who able to do a normal job. Then comes the experienced who can deal with all aspects of job. The last level is outstanding who is giving very good performance. Thus the rewards are also based on this merit rating of employees. Reward System and Employees performance
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Employees performance is very much affected by the reward system of organization. If it is seniority based and less weight is given to the performance, there wont be much emphasis on performance. Employees will not perform as they know their pay is not going to be affected much by their performance. If rewards are according to the performance employees will put their best efforts in order to win maximum pay for themselves. Thus effective reward system helps in enhancing the performance of employees hence increasing the overall output for organization.

3.4 Monitoring Employee Performance

NDA needs flexible people, able to work in teams and learn continuously from experience. Employees must accept and act on feedback. Team is working links with mayos human relations school of motivation. This is particularly crucial when looking for innovative approaches to decommissioning. Within the team, each person is assigned the roles for which they are best qualified. Each person needs to be committed to the highest standards of quality in their role. To fulfil the duties staff must build the required duties. This is assessed by the authority. Every employee has personal development plan with SMART objectives. These plans lead them to professional accreditation where relevant. NDA ensures that its staff become proficient across range of skills making work more interesting and challenging.

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TASK4

4.1 Reasons for Cessation of Employees

Resignation: An employee can resign, or terminate his own

employment, for a number of reasons. For example, he might be unhappy with his job, he might have received a better offer elsewhere, he might be moving or he might have other personal reasons for leaving. Layoff: If there is a lack of work, if the company is undergoing financial problems or if a particular job no longer is needed, the company might lay off employees. Indiscipline: The employer can terminate the employee if he violates the company policy or behaves in a manner that endangers the company or his coworkers. For instance, if he physically attacks a coworker, the employer can terminate him for cause. Poor Performance: The employer can terminate the employee if he consistently fails to meet the standards associated with his position.

4.2 Exit Procedures

When an employee leaves an organisation he has to follow the exit procedure as formed by the organisation. Exist procedures are similar in all kinds of organisation. The exit procedures in two organisations are discussed below. The first organisation is the OFT(Office of Fare Trading ). The OFT is the UK's consumer and competition authority. Employees leaving OFT on permanent basis have to follow the procedure.

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1. Notification: If an employee intends to leave the organisation he must notify before one month and give his resignation letter to his staff manager who forwards it to the HR department. 2. Exit Interview: the next step is the exit interview which is designed to know about the reasons of leaving. It also helps in measuring the effectiveness of the HR policies. The exit interview is taken by the staff manager and its aim is to ask about the experience of working in OFT. 3. Payment in lieu of notice: The due payment is made to the employee with the salary. 4. Return of Property of OFT: the OFT property with him. The second organisation is from education industry. Here the exit procedure of the University of Virginia situated in USA is discussed. 1. Resignation Letter: Employee has to submit his resignation letter. Employee should mention the reason for exit which should help organisation to fill the position efficiently 2. Contact HR: The employee contacts the human resource manager for knowing about the benefits that he would get and rest of the procedure. Employee is responsible for returning

The exit procedure followed by OFT is better. The procure include an interview with the employee and reasons for leaving is noted for the improvement in HR policies

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4.3 Legal and Regulatory Framework

Whatever be the reason of cessation an employer has to follow to follow some rules and regulations while carrying out the process. There is regulatory and legal framework for such processes. When terminating and employee on the basis of behavioural indiscipline, The employer should thoroughly document the employee's behaviour when terminating for cause. In case of poor performance, before terminating the employee, the employer should advise him of his performance deficiencies and give him a reasonable amount of time to correct them. The employer also should document the steps taken before the termination occurred. When laying off employees the employer must ensure the layoff is fair and legal. For instance, under the Worker Adjustment and Retraining Notification (WARN) Act, employers must give employees advance notice of plant closings and mass layoffs. This gives the employees and their families time to adjust to the employment loss and to seek alternative support, such as unemployment benefits.

Conclusion
Thus a human resource management is an important function of an

organization. Right for the planning of human resource to selecting right candidate and his training and development the all the task should be done carefully to take maximum out of people of organization. This can help in

organization performing well and competing the market.

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References

Torrington

D.,

Hall

L.,

Taylor

S.

(2008),

Human

Resource

Management, 7th Edition, Pearson Education Ltd., London.

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http://managementhelp.org, [accessed on 12/07/2010 ] http://www.hrmguide.co.uk, [accessed on 13/07/2010]

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