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Executive Summary ...................................................................................................................................... 3 Task 01 .......................................................................................................................................................... 4 1.1 Give a clear description of Personnel management. ........................................................................... 4 1.2 Clearly explain the HRM activities in an organization. ...................................................................... 4 1.3 Set out in detail the development and the changing context in HRM in both organizations. ............. 5 1.3.1 Best for less ltd............................................................................................................................. 5 1.3.2 First Base Travels (FBT).............................................................................................................. 6 1.4 Make a judgment on the importance of role and tasks of the HR Practitioner. .................................. 7 1.5 Explain the line managers contribution to effective HR Practices in the organizations? .................. 7 TASK 02 ....................................................................................................................................................... 8 2.1 Identify separate factors; say how they are related and how each one contributes to the need for human resource planning. ......................................................................................................................... 8 2.2 Write down necessary information required for HRP......................................................................... 9 2.3 What are the stages involved in the HRP? .......................................................................................... 9 2.4 Compare the structured recruitment process in two organizations. .................................................. 10 2.4.1 Recruitment process of Best for less ltd. .................................................................................... 10 2.4.2 Recruitment process of First Base Travels (FBT)...................................................................... 10 2.5 Evaluate the methods and media available for recruitment. ............................................................. 11 2.6 Discuss a range of alternative selection methods available. ............................................................. 12 2.7 Evaluate the interview as a selection technique. ............................................................................... 12 2.8 Compare selection practices and procedures in two organizations. .................................................. 13 2.8.1 Selection practices and procedure of Best for less ltd................................................................ 13 2.8.2 Selection practices and procedure of First Base Travels (FBT)................................................. 13 2.9 Evaluate the best selection practice. ................................................................................................. 14 Task 03 ........................................................................................................................................................ 16 3.1 Point out the range of reward systems available in both organizations. ........................................... 16 3.2 Explain the main factors determining the pay................................................................................... 17 3.3 Identify and explain factors the HR manager should consider when deciding on the selection of a job evaluation systems and job evaluation methods available in. ........................................................... 18

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3.4 Discuss the motivational theories used y the organization and how motivational theories are linked with available reward systems. ............................................................................................................... 19 3.4.1 Theory X and Y ......................................................................................................................... 19 3.4.2 Two factor theory ....................................................................................................................... 21 3.4.3 Maslow' theory ........................................................................................................................... 23 3.5 Explore organizational approaches to monitoring performance of employees in both organizations ................................................................................................................................................................ 25 Task 04 ........................................................................................................................................................ 26 4.1 Discuss the employee rights and evaluation procedures available within both organization ........... 26 4.2 Evaluate the retrenchment strategies used by the organization in order to manage the redundant number of employees. ............................................................................................................................. 27 4.3 Analyze selection criteria for redundancy used by both organizations. ............................................ 28 Conclusion .................................................................................................................................................. 30 Reference .................................................................................................................................................... 31

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Executive Summary HRM is the key to ensure the existence of the organization in this challenging business world. HRM is a separate department which manages the entire work force of an organization. This project and the tasks are been completed based on the HRM process and practices. To show the links and to vividly point out the HRM theory, two organizations are been selected and the HRM practices are compared. Two selected organizations are Best for less ltd., a Sri Lankan T and T service provider and First Base Travels (FBT), another T and T service provider in Sri Lanka. Task one show the importance of an effective HRM to compete the international market. The parts of the task one illustrates personnel management, HRM activities in an organization, changing context and the development of HRM in selected organizations, tasks of HR

practitioner and the contribution of a line manager in effective HRM. Task two shows how organizations develop HRM strategies and how they match the size and the skills of the workforce in order to satisfy the organizational need. This identifies the factors affect HR planning and the contribution of those factors in HR planning. Explains the information required to HR planning, stages of HR planning process and recruitment process and the selection methods. Also it compares the selection and recruitment processes in both organizations. Information for the project is collected from the reliable sources like journal articles, books, reports and internet.

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Task 01 1.1 Give a clear description of Personnel management. In all organizations, there should be someone concerned with the welfare and performance of persons who are a part of the operation. When an individual or a team of individuals takes on this task of seeing to programs and setting policies that impact everyone associated with the company, they are engaged in the process of personnel management.

Personnel management was focused on employment contracts, disciplinary issues and compensation. Personnel management can include administrative tasks that are both traditional and routine. It can be described as reactive, providing a response to demands and concerns as they are presented. Personnel management is often considered an independent function of an organization. (Institute of Personnel Management Australia, 1995) 1.2 Clearly explain the HRM activities in an organization. Planning & Analysis - HR planning is a process of analyzing and identifying the need for and availability of human resources so that the organization the organization can meet its objectives, so managers attempt to anticipate forces that will influence the future supply of and demand for employees.

Equal Employment Opportunity (EEO) - Individuals should have equal treatment in all employment-related actions, so compliance with equal employment opportunity laws and regulations affects all HR activities and integral to HR management.

Job analysis- Systematic way to gather and analyze information about the content and the human requirements of jobs.

Job description- Identification of the task, duties and responsibilities of a job Job specification- The knowledge, skills and abilities an individual needs to perform a job satisfactorily.

Recruiting- The process of generating a pool of qualified applicants for organizational jobs
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Training Management Performance Management Compensation & Benefits 1.3 Set out in detail the development and the changing context in HRM in both organizations. Selected organizations are Best for less ltd. and First Base Travels (FBT). Best for less ltd. and First Base Travels (FBT) both are T and T service providers. As their business is service providing both organizations are maintaining an effective HRM. Both have their own development and context in HRM. 1.3.1 Best for less ltd. Best for less ltd. is the leading T and T service provider in Sri Lanka.

Best for less ltd. has its separate HR department for HR activities. The main functions of Best for less ltd.s HRM is Job Analysis, Job Design, Recruitment & Selection, Orientation & Placement, Training & Development, Performance Appraisals, Job Evaluation, Employee and Executive Remuneration, Motivation, Communication, Welfare, Safety & Health and Industrial Relations. The main objectives of Best for less ltd.s HRM are, to be socially responsible to the needs and challenges of society while minimizing the negative impact of such demands upon Best for less ltd.. To recognize that HRM exists to contribute to Best for less ltd.s effectiveness. To maintain the department's contribution at a level appropriate to the Best for less ltd.'s needs. To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual's contribution to Best for less ltd.. There is a major role played by the HRM in Best for less ltd. where it provides services and the services should be effectively maintained by effectively maintaining HR. the HR department of Best for less ltd. follows employee empowerment.

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1.3.2 First Base Travels (FBT) First Base Travels (FBT) is a T and T service provider of Sri Lanka. They have 4500 employees where 47 out of them are working in HRM. The mission of their HRM is To lead the organization in enhancing its human capital and creating a winning environment where everyone enjoys contributing to the best of ones ability. HR department of First Base Travels (FBT) has three sections, Employee services, OD and Effectiveness and staffing and compensation. They have their usual HRM activities and Strategies to implement their HR processes. The Following diagram shows their Whole system for development of HR strategies/policies/practices.

Mobilinks Competitive Environment Economic, Political, Demographic, Competitive and Technological Trends

Companys Strategic Situation

Companys Strategic Plan

Companys Internal Strengths and Weaknesses

Organizational Performance

Companys HR strategies

Formulation of HR policies

Formulation of HR practices

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1.4 Make a judgment on the importance of role and tasks of the HR Practitioner. HR practitioner is one who practices HRM, especially as an occupation, profession, or technique. The role of HR practitioner is important in the organizational success. HR practitioners must have exposure and an understanding in some specific areas of the field. These include management practices, selection and placement, training and development, compensation and benefits, employee and labor relations, and health, safety, and security. HRM practitioners have an understanding of how jobs are filled, the various methods of recruiting candidates, and the selection process. They are concerned more with HRM as they attend HRM as a business. They have the capability to overcome the problems faced by the external and internal factors in HRM. (Armstrong, pp 69) 1.5 Explain the line managers contribution to effective HR Practices in the organizations? Front line managers are directly responsible for production of goods and services, and supervision of clerical staff and shop floor employees. A frontline manager has some specific roles like people management, managing operational costs, organization work allocation, monitoring work processes, checking quality, dealing with customers/clients and measuring operational performance. The main contribution for HR is people management. management practices include: Performance appraisal Training, coaching and guidance Employee engagement (involvement and communication) Openness how easy is it for employees to discuss matters with their front line manager Work-life balance Recognition the extent to which employees feel their contribution is recognized. People

All these are the activities of an effective HRM. And the above people management steps are carried out by frontline managers.

Moreover, operational level work can always make the image of the company poor or good in the eyes of the customers therefore, if the front-line workers are rightly managed and controlled by the front-line manager then it can improve the overall image of the company. (Wright, et al, 1998)
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TASK 02 2.1 Identify separate factors; say how they are related and how each one contributes to the need for human resource planning. There are several factors affects the HRP. These factors affect the supply and demand of staff. Mostly affecting and contributing factors are as follows: The type of organization determines the production process, type of staff, (supervisor and manager). And the strategy plan of the organization defines its HR needs. Organizational growth cycle and planning start up, growth, maturity, decline Environmental uncertainty political, social and economical change affect all organizations. Outsourcing the process by which employees transfer routine or peripheral work to the another organizations Nature of job - job vacancies, promotions and expansion strategies Type and quality of forecasting information - organizational structure, budgets, production Time horizons long term plans and short term plans, the greater the uncertainty the shorter the plan. ICBT, 2009. [Unit guide]

Organisational growth cycle and planning Type and strategy of organization Environ mental Uncertain ties

HRP
Time horizons Outsourcing

Type and Quality of forecasting Information

Nature of job

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2.2 Write down necessary information required for HRP. Internal resources Net migration into and out of the area Education levels of work force Demographic changes in population Technological developments and shifts Population Mobility Demand for specific skills National, regional unemployment rates Actions of competing employers Government policies, regulations, pressures Economic Forecasts for the next few years

2.3 What are the stages involved in the HRP? The stages involved in the HRP are as follows: Analysis of the current staff and the past trends Analysis of the organizations future human resource requirements Analysis of the matches or the mismatches between HR demand and supply forecasts Evaluating the options Selection of the best alternatives and implementation of the HR plans (ICBT, 2009, Unit guide)

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2.4 Compare the structured recruitment process in two organizations. 2.4.1 Recruitment process of Best for less ltd.

Identify vacancy Prepare job description and person specification Advertising the vacancy Managing the response Short-listing Arrange interviews

The recruitment process is immediately followed by the selection process Best for less ltd. uses the following as their recruitment methods commercial recruitment agencies Promotions internal recruitment

2.4.2 Recruitment process of First Base Travels (FBT) First Base Travels (FBT) uses both internal and external recruitment. The sources that FIRST BASE TRAVELS (FBT) uses to attract applicants are: Inviting applications through advertisement Recommendations from the head hunters Applications obtained from the data bank of FIRST BASE TRAVELS (FBT) where direct applications are received from time to time. Process Develop & implement recruiting strategy bearing in mind relevant legislation. Decide whether recruitment will take place externally or internally. Select methods of the recruitment (for example job posting, personnel agencies & advertising) Engage in recruitment.
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2.5 Evaluate the methods and media available for recruitment. There are several recruitment media in HRM. Mostly used medias are as follows:

Internal recruitment - this method can have the advantage of building on existing staff's skills and training, and provides opportunities for development and promotion. It is a good way to retain valuable employees whose skills can be further enhanced.

Job Centers of the Department for Work and Pensions - will display employers' vacancies and refer potential recruits. They also administer some of the Government training programs.

Learning and Skills Council - may well have trained workers available through their recruitment service, and can tailor training to an employer's requirements Commercial recruitment agencies - often specialize in particular types of work, e.g. secretarial, office work, industrial, computing, and might already have potential applicants registered with them

Local schools, colleges and the Careers Service - maintaining contact with schools, colleges and careers advisers will ensure that the organizations needs for school/college leavers with particular skills and abilities are known.

Word of mouth - introduction via existing employees or through an employers' network. Whilst this may be economical, it is likely to lead to a much smaller pool of suitable applicants and does not normally satisfy equal opportunities requirements because any imbalance in the workforce may be perpetuated.

Promotions- The employees are promoted from one department to another with more benefits and greater responsibility based on efficiency and experience. (ICBT, 2009, Handout)

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2.6 Discuss a range of alternative selection methods available. Interviews Aptitude test Behavior-based interviews Training and experience evaluations Character Tests- Character tests help managers avoid hiring problem employees. Character tests expose Work Ethic, Trustworthiness and Substance Abuse. Psychometric testing (ICBT, 2009, Unit guide)

2.7 Evaluate the interview as a selection technique. Evaluating interview, analyses the advantages and disadvantages of interviews. Advantages Disadvantages they can be very time-consuming: setting up, interviewing, transcribing, analyzing, feedback, reporting they can be costly Different interviewers may understand and transcribe interviews in different ways. It can create bias situation Underestimations can be made by the appearance they are useful to obtain detailed information about personal feelings, perceptions and opinions they allow more detailed questions to be asked they usually achieve a high response rate respondents' own words are recorded ambiguities can be clarified and incomplete answers followed up precise wording can be tailored to respondent and precise meaning of questions clarified (e.g. for students with English as a Second Language) interviewees are not influenced by others in the group Some interviewees may be less self-conscious in a one-to-one situation.

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2.8 Compare selection practices and procedures in two organizations. 2.8.1 Selection practices and procedure of Best for less ltd. Best for less ltd. uses variety of selection procedures. The procedure for Call centre selection is as follows: An open invitation to employees who are willing to join Call centre is announced, then Preliminary interview Psychometric testing- Testing the personality In-tray exercise test the typing and other working skills Presentation Language test Selection decisions For executive and managerial posts, Application Collecting Aptitude test Presentations Group discussion Oral/ face to face interviews Selection decisions

2.8.2 Selection practices and procedure of First Base Travels (FBT) The HR Department then issue call letters to the short listed candidates along with blank application forms by Date, time and venue for the preliminary interview is advised and candidates are asked to bring along completed application forms. A two-member panel of HR and line management carries out competency-based interviews focusing on functional skills and managerial and supervisory skills.

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After the preliminary interview is cleared people applying for different jobs are tested in different ways Communication skills Resource management Rational decision making Influencing Creative thinking Business development

The HR department is responsible for overall administration of the assessment centre including training of the assessors

2.9 Evaluate the best selection practice. Normally a single selection method is not effective. According to the evaluations it is good to have at least two selection methods. The best combination is interviews and work test. The interview can be panel, serial or on to one. During interview applicant also has a chance to ask questions about the job and the company. For the applicant, the main purpose of the selection interview is to get the information, which can help him/her to make an informed decision of whether to accept the job. Selection interview enhances the reliability of pre-process (such as application form and reference test). Actions speak louder than words. It is also an opportunity for both ends to clarify misunderstands between them. A trend in selection is to allow applicants to perform activities that closely approximate those they will actually perform on a job. These tests may be part of the supplemental application form or they may be administered during an interview. Performance on the test is assumed to represent an applicant's performance in an actual job situation. This combination can be a good selection method.

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Task 03 3.1 Point out the range of reward systems available in both organizations. Employees are motivated by both intrinsic and extrinsic rewards. To be effective, the reward system must recognize both sources of motivation. All reward systems are based on the assumptions of attracting, retaining and motivating people. Financial rewards are an important component of the reward system, but there are other factors that motivate employees and influence the level of performance. FBT Ltd is aware that rewarding and recognizing employees is a ticklish business. It can motivate people to explore more effective ways to do their jobs - or it can utterly discourage such efforts. FBT Ltd establishes a clear link between what people are rewarded for and the organization's priorities. Profit sharing- This is possible on a micro level by treating the particular activity as a cost and profit center by itself. This is easier said than done, since overheads and other common services have to be charged and this cannot be done completely objectively. Job evaluation- In case of job evaluation, the various component factors have to be isolated and evaluated for purposes of inter-job comparison. Each factor is assigned a rating on the basis of a scale agreed beforehand by the union and the management joint committee. The total rating for each job then forms the basis of wage structure. Paid Leave - Supervisors may award employees up to 32 hours of paid leave annually in recognition of meritorious performance. Merit rating- Merit rating has been used as an indicator of performance. Each employee is rated, typically as excellent, good, average or poor. Employee Staff Quarters Guest House FBT Ltd Products at Concessional rates Company Bus.

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FBT Ltd strategies for rewarding employees performance and contributions include both non-financial and financial mechanisms. Some of the primary ones are discussed below. The individual units/departments may identify additional mechanisms that are appropriate for and support their culture and goals. Job Rating- the best performed workers are been rated in a weekly manner in every outlets and he/she is rewarded. Progression through the salary range - Employees may receive salary increases to recognize the attainment of new and/or the enhancement of existing

skills/competencies or for assuming increased responsibilities within the scope of the current position. Promotions and lateral moves - Promotions and lateral moves may be long term rewards that recognize employees professional growth, expertise, and capacity to contribute to the institution in new roles. Administrative salary supplements - Employees who assume new/additional responsibilities on an interim basis may receive administrative salary supplements that are paid in addition to the base salary. 3.2 Explain the main factors determining the pay. The complexity of the job If the job is more complex with more work load and difficulties the pay will be high. If the work is simple the pay will be low. The skills and qualifications required to carry out the job When a job needs high educational and professional qualifications and very high skills the pay would be higher. If the job qualification and skills are simple the pay will be lower. The ease with which it is a possible to find the right people to fill the particular positions The performance expected of certain roles Some positions like manger are been expected a high performance and if the performance is high up to the expectations the pay will be high. The level of responsibility and the accountability associated with the job
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When responsibility increases the pay will also increase where the company wants no harm. Official laws on wage and salary, labor contract, payment time, wage payment delay, working insurance, and so on. The overall strategy which a company pursues should determine the remuneration to its employees. Where the strategy of the enterprise is to achieve rapid growth, remuneration should be higher than the competitors pay. Where the strategy is to maintain and protect current earnings, because of the declining fortune of the company, remuneration level needs to be average or even below average. Comparative Wages: - Wages paid by the other firms for the same work also influence the wage levels. Wage rates must also be in consistent with the wages paid by the other firms in the same industry so as to increases the job satisfaction among the workers. Productivity of labor:- Higher productivity will automatically fetch more profit to the firm, where in turn workers will be paid high wages in comparison to other firms with low productivity 3.3 Identify and explain factors the HR manager should consider when deciding on the selection of a job evaluation systems and job evaluation methods available in. Commitment- Commitment of the top managers, time and resources in a job evaluation method. Information- when selecting an evaluation method the information needed should be considered. Involving Officers- the evaluating officers panel must have decision makers with the right authority and drive. The company should have to guard against members being self-interested, non-participative and indiscreet. Decision-making authority Degree of supervision required Working conditions Knowledge and skills requirements (Armstrong & Baron, 2002)
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3.4 Discuss the motivational theories used y the organization and how motivational theories are linked with available reward systems. 3.4.1 Theory X and Y The theory X and Y are theories of human motivation created and developed by Douglas McGregor. Theory X says that the average person: Dislikes work and attempts to avoid it. Has no ambition, wants no responsibility, and would rather follow than lead. Is self-centered and therefore does not care about organizational goals. Resists change. Is gullible and not particularly intelligent.

Theory Y says Effort in work is as natural as work and play. People will apply self-control and self-direction in the pursuit of organizational objectives, without external control or the threat of punishment. Commitment to objectives is a function of rewards associated with their achievement. People usually accept and often seek responsibility. The capacity to use a high degree of imagination, ingenuity and creativity in solving organizational problems is widely, not narrowly, distributed in the population. In industry the intellectual potential of the average person is only partly utilized.

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If Theory Y holds true, an organization can apply these principles of scientific management to improve employee motivation:

Delegation and allocation - If firms decentralize control and reduce the number of levels of management; managers will have more minors and as a result will be forced to delegate some accountability and decision making to them.

Job extension - lengthening the scope of an employee's job adds variety and opportunities to satisfy self-esteem needs.

Participative Management - Consulting employees in the decision making process taps their creative capacity and provides them with some control over their work environment.

Performance evaluation - Having the employee set objectives and participate in the process of evaluating how well they were met.

Theory Z Theory Z represents a humanistic approach to management. Although it is based on Japanese management principles, it is not a pure form of Japanese management. Instead, Theory Z is a hybrid management approach combining Japanese management philosophies with U.S. culture. In addition, Theory Z breaks away from McGregors Theory Y. Theory Y are a largely psychological perspective focusing on individual dyads of employer-employee relationships while Theory Z changes the level of analysis to the entire organization. (Donaldson, 1990, pp.369-381)

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3.4.2 Two factor theory According to the Two Factor Theory of Frederick Herzberg people are influenced by two factors. Satisfaction and psychological growth was a factor of motivation factors. Dissatisfaction was a result of hygiene factors. Hygiene factors include: Company policy and administration Wages, salaries and other financial remuneration Quality of supervision Quality of inter-personal relations Working conditions Feelings of job security

Motivation Factors include: - Achievement - Recognition for achievement - Responsibility for task - Interest in the job - Advancement to higher level tasks - Growth

This theory has a tremendous impact on stimulating thought on motivation at work, increased understanding of role of motivation, specific attention to improve motivational levels, job design technique of job enrichment is contribution of Herzberg, double dimensions of two factors are easy to interpret and understand. Applying Hertzberg's model to de-motivated workers These are the evidence of de-motivated employees be in a business
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Low productivity Poor production or service quality Strikes / industrial disputes / breakdowns in employee communication and relationships Complaints about pay and working conditions

According to Herzberg, management should focus on rearranging work so that motivator factors can take effect. He suggested three ways in which this could be done: Job enlargement Job rotation Job enrichment (Maidani, 1991)

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3.4.3 Maslow' theory Maslow's Hierarchy of Needs Self-Actualization

Esteem Needs

Social Needs

Safety Needs

Physiological Needs

Maslow believed that these needs are similar to instincts and play a major role in motivating behavior. Physiological, security, social, and esteem needs are deficiency needs (also known as D-needs), meaning that these needs arise due to deprivation. Satisfying these lower-level needs is important in order to avoid unpleasant feelings or consequences. 1. Physiological Needs: These include the most basic needs that are vital to survival, such as the need for water, air, food and sleep. Maslow believed that these needs are the most basic and instinctive needs in the hierarchy because all needs become secondary until these physiological needs are met.

2. Security Needs: These include needs for safety and security. Security needs are important for survival, but they are not as demanding as the physiological needs. Examples of security needs include a desire for steady employment, health insurance, safe neighborhoods and shelter from the environment.

3. Social Needs: These include needs for belonging, love and affection. Maslow considered these needs to be less basic than physiological and security needs. Relationships such as
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friendships, romantic attachments and families help fulfill this need for companionship and acceptance, as does involvement in social, community or religious groups.

4. Esteem Needs: After the first three needs have been satisfied, esteem needs becomes increasingly important. These include the need for things that reflect on self-esteem, personal worth, social recognition and accomplishment. 5. Self-actualizing Needs: This is the highest level of Maslows hierarchy of needs. Selfactualizing people are self-aware, concerned with personal growth, less concerned with the opinions of others and interested fulfilling their potential.

Implications for Management If Maslow's theory holds, there are some important implications for management. There are opportunities to motivate employees through management style, job design, company events, and compensation packages, some examples of which follow:

Physiological needs: Provide lunch breaks, rest breaks, and wages that are sufficient to purchase the essentials of life.

Safety Needs: Provide a safe working environment, retirement benefits, and job security. Social Needs: Create a sense of community via team-based projects and social events. Esteem Needs: Recognize achievements to make employees feel appreciated and valued. Offer job titles that convey the importance of the position.

Self-Actualization: Provide employees a challenge and the opportunity to reach their full career potential.

(Robert & Richard, 2006, pp.329-342)

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3.5 Explore organizational approaches to monitoring performance of employees in both organizations FBT Ltd

360 Degree Feedback System A 360 Degree Feedback System provides senior managers with valuable inputs through assessment from their colleagues, subordinates and internal as well as external customers. This enables the management to prepare their employee's individual development plans by understanding their potential, interests and goals. Talent management Identifying talent, training and developing them are the pillars of our talent management process. It enables managers to make career moves, which leverage their strengths and focus on areas of development as they prepare for leadership roles. Best For Less Ltd. The Rating Scale- The rating scale is a performance appraisal form on which the manager simply checks off the employees level of performance. The employees are rated and awarded. behaviorally anchored rating scales- It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for e.g. the qualities like inter-personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents. The approaches for performance management in both organizations are different but the approaches are effective. The companies have selected the appropriate approaches to monitor the performance according to the nature of their business.

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Task 04 4.1 Discuss the employee rights and evaluation procedures available within both organization Labor rights are a very broad issue; however, it can be boiled down to the protection and respect of human life in the workplace and the right to work itself. Some components of labor rights are the rights to job safety, collective bargaining, and equal pay for equal work. Other than these the two organizations have the following rights. FBT Ltd Right to observe monitoring procedures and see testing results Working cooperatively to reduce hazards Right to refuse to perform unsafe work Right to confidentiality Establishing a safety and health management system Occupational safety and health training

FBT Ltd

Fair payment Elimination of arbitrary discrimination Job security Right to take medical leaves Right to leave the job Right of job privacy Health and safety right

Both companies have the maximum level of employee rights.

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4.2 Evaluate the retrenchment strategies used by the organization in order to manage the redundant number of employees. Retrenchment revolves around cutting sales. Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity of an organization's operations. Retrenchment is also a reduction of expenditures in order to become financially stable. Retrenchment is a pullback or a withdrawal from offering some current products or serving some markets. In a military situation a retrenchment provides a second line of defense. Retrenchment is often a strategy employed prior to or as part of a Turnaround strategy. There are five activities that characterize retrenchment: Captive Company Essentially, a captive company's destiny is tied to a larger company. For some companies, the only way to stay viable is to act as an exclusive supplier to a giant company. A company may also be taken captive if their competitive position is irreparably weak. Turnaround This strategy, dealing with a company in serious trouble, attempts to resuscitate or revive the company through a combination of contraction (general, major cutbacks in size and costs) and consolidation (creating and stabilizing a smaller, leaner company). Although difficult, when done very effectively it can succeed in both retaining enough key employees and revitalizing the company. Bankruptcy This may also be a viable legal protective strategy. Bankruptcy without a customer base is truly a bad place. However, if one declares bankruptcy with loyal customers, there is at least a possibility of a turnaround. Divestment This is a form of retrenchment strategy used by businesses when they downsize the scope of their business activities. Divestment usually involves eliminating a portion of a business. Firms may elect to sell, close, or spin-off a strategic business unit,

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major operating division, or product line. This move often is the final decision to eliminate unrelated, unprofitable, or unmanageable operations. Liquidation When a company has been unsuccessful in or has none of the previous three strategic alternatives available, the only remaining alternative is liquidation, often involving a bankruptcy. There is a modest advantage of a voluntary liquidation over bankruptcy in that the board and top management make the decisions rather than turning them over to a court, which often ignores stockholders' interests.

(Robbins &John, 1992. pp. 287-309) 4.3 Analyze selection criteria for redundancy used by both organizations.

The selection criteria used by the employer must be carefully and exactly defined so that they can be fairly and consistently applied to each employee. The criteria must also be agreed by the employees' representatives. Below are details of the approved redundancy selection criterias of FBT Ltd.

The overall objective is to retain employees with the appropriate knowledge, skills and experience for effective service delivery in the future

The selection process and application of the criteria will be applied fairly and consistently Overall application of the criteria and selection for redundancy will be validated by HR teams

Only information which is clearly evidenced will be used as part of the scoring and selection process.

Selection criteria include Length of service Work experience Attendance history


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Disciplinary record Qualifications Skills Competencies Performance records

The redundancy selection criteria of FBT Ltd are based on a points system. The criteria are objective, non-discriminatory and applied consistently. The criteria are follows Skills, qualifications and aptitude Standard of work performance Adaptability Attendance/disciplinary record

A redundancy payment will be made after the dismissal. Both the companies have their own redundancy selection criteria. Both the companies prefer Disciplinary records, skills, qualifications and work performance in common when selecting the redundancy. Other than that the companies have their different criteria while their businesses are different.

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Conclusion The project has analyzed the basis of HRM, HRP, recruitment and selection processes. Task one clearly shows the difference between personnel management and the modern HRM. It showed the activities of HRM, importance of HR practitioner and contribution of line managers in effective HRM. Task two has analyzed the need of HRP, importance of HRP and information needed to HRP. Selection is also been analyzed under task two. The theories of HRM and the processes are been clearly sowed by comparing the HRM activities and practices in the selected organizations. The selected organizations are Best for less ltd. and First Base Travels (FBT). Both organizations are T and T service providers and the they maintain effective HR departments. So, the comparisons between both organizations have provided a better view of HRM. The assignment has explained and analyzed the important roles of Human Resource Management. Task three and four both have clearly completed the requirements. Both tasks have established the process and the procedures of the monitoring the employee performance and rewarding and the rights of the employee at the work place and the exit procedure. Task three evaluated the job evaluation and the factors which determine the pay. The range of rewarding systems, the links to motivational theories and the performance monitoring have been also analyzed. Task four justifies the exit procedures and the redundancy plans. To complete these tasks the selected two organizations have been compared and contrasted according to the required criteria. The organizations selected were FBT Ltd and FBT Ltd. Both are different type of organizations and the assessments were made in a better way.

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Reference Institute of Personnel Management Australia, 1995. Personnel management.India: Mital publications ICBT, 2009. [Handout] ICBT, 2009. [Unit guide] M.Armstong, 2007.A Handbook of Human Resource Management Practice.10th ed.UK.Cambridge University press. P.M.Wright, G.C.McMahan, S.A.Snell, B.Gerhart, 1998. Comparing Line and HR Executives Perceptions of HR Effectiveness: Services, Roles, and Contributions.USA: CAHRS. Armstrong, M. Baron, A., 2002.the job evaluation handbook.4th ed. Great Britain: The Cromwell Press. Donaldson.L, 1990. The Ethereal Hand: Organizational Economics and Management Theory.3rd ed. New York. Maidani.A., 1991. Comparative Study of Herzberg's Two-Factor Theory of Job Satisfaction among Public and Private Sectors. Public Personnel Management,vol 20. Robert J., Richard. R., 2006. Maslow's Hierarchy of Needs: A Framework for Achieving Human Potential in Hospice. United States: American Journal of Economics and Sociology, Inc. Robbins, D. John, A., 1992. Retrenchment and Recovery. West Sussex: John Wiley & Sons.

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