Managing Human Resources

Contents

Introduction................................................................................................................ 2
Task 1......................................................................................................................... 3
1.1 Human resource management and its approaches..............................................3
1.2 Guest model and Storey model of human resource management........................3
1.3 Stages of HRM development................................................................................ 5
Task-2......................................................................................................................... 6
2.1 Flexibility in organization...................................................................................... 6
2.2 Maintaining flexible working condition.................................................................6
2.3 Human Capital Flexibility...................................................................................... 6
2.4 Benefits of flexibility from employees perspectives.............................................7
Technology:............................................................................................................. 7
Training and Support............................................................................................... 7
Culture of flexibility................................................................................................. 7
Work life balance..................................................................................................... 7
Reduce stress.......................................................................................................... 8
Task-3......................................................................................................................... 8
3.1Workplace discrimination...................................................................................... 8
3.2 Ensuring equal opportunities................................................................................9
Task-4......................................................................................................................... 9
4.1 Approaches of performance management...........................................................9
4.2 Performance appraisal methods.........................................................................11
Ranking method.................................................................................................... 11
Graphic rating scale form...................................................................................... 11
MBO method.......................................................................................................... 11
BARS form............................................................................................................. 12
Critical incidents method....................................................................................... 12
The narrative method............................................................................................ 12
Paired comparison method.................................................................................... 12
Forced distribution method................................................................................... 12
4.3 Health and safety concerns................................................................................ 12
4.4 Rewarding and management strategy...............................................................13
11. Conclusions........................................................................................................ 13
12. References.......................................................................................................... 13

Introduction
The journey of Innocent Drinks is very much interesting. It started its operation with a simple
party arrangement, and now it has complex business selling its product more than 15 countries.

Innocents operating areas are smoothies, juices and veggies. The mission statement of this
company is to make natural, delicious food and drink that helps people live well and die old. As
the firms demand of product increasing day by day it needs to expand its capacity. For these a
large number of workforces are needed. It is very much important and sensitive to recruit, select,
hiring the right skilled person for the specific job. So Innocent Drinks Company needs to develop
a strong flexible human resource department for these activities. The company passed the initial
stage of business development so the company now boosting up its position so normal human
resource policy will not work here a composite package is needed here. It is the tasks of human
resource manager to compile whole human resource policy including training, motivating,
workplace safety, measuring performance, equal employment opportunity, scope for showing
skills, reducing the turnover rate of the company. Only a skilled determined goal attaining
manager can do this for the betterment of Innocent Drinks.

Task 1
1.1 Human resource management and its approaches
We can define human resource management as a set of activities of acquiring, training,
appraising and compensating employees and improving their labor relations ensuring their safety
and fairness concerns. Innocent Drinks Company has started their journey as a small enterprise
and sells their products more than 15 countries. As the company expands its business rapidly the
most important factor is to manage its human resource. Managing human resource is a complex
task, so a human resource manager needs to analyze several approaches of human resource
management. Organizations HR systems can be transactional based, corporate style or the center
of expertise systems. Innocent drinks as a small enterprise here human resource management
technique should be taken in considering various aspects such as costs, number of labors,
hierarchy of management etc. In strategic management system HR (Human Resource) policies
are directed to the organizations aims. Here employee knowledge, training and skills are
resources which are known as human capital. In performance based human resource
management employees job activities are evaluated. On the other hand in evidence based
management system use of data, analytics, facts, scientific rigor, research/case studies to support
human resource decision making. (Dessler 12th edition).

1.2 Guest model and Storey model of human resource management

Several renowned authors provide different model of managing human resource management. In
analyzing the HR need of Innocent Drinks it is helpful to take the help of guest model and storey
model of human resource management.

HRM

HRM

HRM

Behavioral

Performance

Financial

strategy
Differentiatio

practices
Selection
Training

outcomes
Commitme

outcomes
Effort

outcomes
Greater quality, Profits

outcomes
profits

nt

(innovation)

(innovation)
Focus
(quality)

productivity
Appraisal
Reword

Quality

Co-operation

Reduced Return on

and

(quality)

involvement

absenteeism,

Return on

involvement investment
labor

turnover and conflict

Cost

Job design

(cost

Involveme

reduction)

nt
Status and

Flexibility

Organizational
citizenship

security
Table : The guest model of HRM

Above table shows that strategy taken for bringing differentiation in the organization, reducing
cost, and quality enhancement both are important for innocent drinks. In this process the human
resource activities are selection, training, appraisal, reword, job design, involvement, status and
maintaining security etc. If the company follows the model it can get the outcomes of greater
commitment from employees, outcome and quality services. Some of the behavioral outcomes

are organizational citizenship, cooperation and job involvement and greater effort to achieve
organizational goals. By following this model the company really can achieve its desired
outcomes such as high rate of profit, skilled manpower, lower turnover, attracting investors etc.
Storey identifies four categories of human resource management techniques which are beliefs
and assumptions, strategic concepts, line management, and key levers, which include the
functions of HR such as selection, pay, and so on. Storeys model can be used as a tool for
research and analysis of organization. He identified personnel management as being
bureaucratic, based on rules and procedures and seen as a separate function from general
management. On the other hand, HRM is seen as related to the business need, and central to the
corporate plan and the responsibility of all managers. Storey not only identified the shift towards
human resource management, he also described two approaches to HRM as hard and soft. By
considering the both theory we can easily make a differentiation of personnel and human
resource management. Views people as a resource used as a means of achieving organizational
goals is known as hard HRM (human resource management) on the other hand encourages
employers to develop strategies to gain employee commitment is called soft HRM.

1.3 Stages of HRM development

As in the case there are four stages of developing human resource management. These are
Entrepreneurial edge, Emerging enterprise, Consolidating organization, Established organization.
The Innocent Drinks Company belongs to consolidating stage. Because the company passing
through the stage where a formal structure is needed to manage its whole human labor. Need to
build a group of expertise to monitor the HR department of the firm. A strategic human resource
policy can help the innocent drinks company under these headings

Placing the right person on the right job

Orientation of new employees
Proper training
Improved job performance
Satisfactory job performance from each employee
Ease way of interpreting companys policies and procedures
Monitoring and controlling labor cost
Employees health and mental satisfaction

 Motivation technique selection etc (Dessler 12th edition)

Task-2
2.1 Flexibility in organization
Although Innocent Drinks is a small enterprise but its business activities expands rapidly, but the
question is that in near future flexible localized HR policy need to be changed. Flexible HR
policies also have some benefits. It may be difficult to control the sub branches directly in case
of flexible policy but it motivates the local manager and employees to do their best for the
organization.

2.2 Maintaining flexible working condition

For the betterment of Innocent Drinks flexible human resource policy is desired. Some of the
benefits for the company are as follows Human resources practices can be defined those
activities that are designed to manage organizations human capital. With these activities firms
try to drive employees behavior and increase their skills for the firm. For the betterment of
Innocent Drinks flexible human resource policy is desired. Some of the benefits for the company
are as follows.
Helps to identify and hire workers with higher skills through recruitment, selection and

job-design practices
Increase staff motivation and empower employees
Establish performance appraisal systems to increase workforce productivity
Performance management
Compensation and incentives
Communication

2.3 Human Capital Flexibility

Human capital refers to the knowledge, information, ideas, skills, and health of individuals. As
Becker (1996) also argued, human capital would include behavior, conduct, accumulated labor,
harmful addictions and other habits of employees. This human capital provides improved

efficiency at the individual level, and can also create unit-level value if the organization is able to
articulate the process of accumulation of human capital. It increases capabilities and skills of
labor forces.

2.4 Benefits of flexibility from employees perspectives

In modern world it is very for employees to make their job more flexible. Now it is no more need
to work in office with the fixed desk. They can work at home or at tour. Flexible work practices
can be possible for Innocent Drinks by using following tools

Technology:
Technology can be well used to support flexible working practices through internet, phone and
other tools. There are mixed responses with regard to the support for technological difficulties
which may arise. Some argues that concerns whereas others are happy with the level of support
available. These variations are found within the firm.

Training and Support

In case of providing training and relative support to the employees or labor here there is a scope
of flexibility. The can get training from video tutorials, e-learning, modulation of work etc.

Culture of flexibility
As a new trend in Innocent Drinks it seems to be new to the top management launching flexible
working conditions for this reason congenial culture of work environment should be created.
Mutual belief of managers and employees is a prerequisite for flexible working conditions. If
flexible workers are not present in the office, or are present at different times, then it may be
harder for managers to monitor their performance on a day-to-day basis and consequently a
degree of trust is required.

Work life balance

If flexible working conditions ensure by managers such as remote works, holiday work etc there
is a positive relations between normal lifestyle and motivating to do the job. Workers will be
mentally motivated even with heavy load of tasks.

Reduce stress
Flexible working environment reduce stress that can only achieved through this strategy. Several
surveys conducted by different organizations in UK have found positive feedback and hope so in
case of this company would be fruitful.

Task-3
3.1Workplace discrimination
Work place discrimination is a great hinder to the success of attaining organizational goal. It
creates conflicts among employees and they dont provide their full capacity to the firm and the
firm lack maximum output, it also damages the congenial working environment and launched
dirty politics within the organization. Discrimination in workplaces has become one of the most
debated issues around the world. Discrimination in the workplace can be happened through
gender biasness, religion, political view, national extraction, HIV/AIDS nationality, sexual
orientation, workers with family responsibility, trade union or other types of units, disability etc.
In case of Innocent Drinks it is important to look at every aspect that no mistake is made by the
company. Older workers are liable to make difficulties in employment and occupation because of
prejudices about their capacities and willingness to learn; a tendency to undermine their
experiences; and market pressures to hire younger workers who are often cheaper to employ.
Younger workers may also face discrimination. Biased treatment to the younger workers can take
in many forms, including assign them in casual jobs with lower benefits, training opportunities
and career prospects; payment of lower entry wages. Men and women workers may suffer from
discrimination if they are known or believed to be lesbian, gay, bisexual or transgender; and may
be subjected to verbal, psychological and physical intimidation or violence from other workers.
Innocent Drinks is encouraged to eliminate discrimination against workers based on sexual
orientation. Immigrants lawfully within the territory should be treated no less favorably than
nationals concerning wages and benefits, hours of work, overtime, holidays, training,
membership of trade unions benefits of collective bargaining, accommodation and social security
etc.

3.2 Ensuring equal opportunities

For innocent drinks company maintaining equal opportunity for all is most important because of
proper conducting the existing labor laws. The company should be more careful to ensure this.
Several activities can be taken by the company such as

Make a strong commitment from the top Senior management should has the
responsibility for equal employment issues and shows a commitment to diversity, they
transfer a strong signal to other managers, supervisors and workers.
Conduct an assessment To determine if discrimination is taking place within the
enterprise, for example using a self assessment questionnaire.
Set up an enterprise policy Establishing clear procedures on non-discrimination and
equal opportunities; and communicate it both internally and externally.
Provide training At all levels of the organization, in particular for those involved in
recruitment and selection, supervisors and managers, to help raise awareness and

encourage people to take action against discrimination.

Set measurable goals and specific time frames
Monitor and quantify progress
Ensure equal opportunity for skills development
Address complaints Handle complains and provides best positive solutions to employees
in cases where discrimination is occurred.

Task-4
4.1 Approaches of performance management
As a human resource manager it is very crucial to appraise the performance of the department or
individual level. Performance appraisal means evaluating an employee performance relative to
his or her performance standards. Based on the performance employees future career growth or
benefits are dependent. A normal way of thinking is that workers will provide their feedback and
they will be treated as same. A common way of measuring performance is setting work
standards, assessing the employee actual performance and lastly provide feedback to the
employee for the purpose of encouraging him to eliminate performance deficiencies and to
motivate to do above average.(Dessler 12th edition)

Step 1
Job analysis

Organizational mission and objectives

Step-2
Develop standards and
measurement tools,
communicate standards with
workforce

Step-4
Step-3

Prepare and
conduct
formal PA

Informal performance
appraisal

Figure: performance appraisal techniques

4.2 Performance appraisal methods

Some popular methods of performance appraisals are

Ranking method
Graphic rating scale form
BARS form
Narrative method
MBO method
Critical incidents method
Paired comparison method
Forced distribution method

Ranking method
The formal performance appraisal usually involves the use of a standard form developed by the
HR department to measure employee performance. In ranking method employees are ranked
from best to worst on a trait basis. Here firstly lists all subordinates and cross out the names of
any not known well enough to rank. Then the employees having highest characteristics will be
treated in high position of rank and so on.

Graphic rating scale form

In rating scale form is a checklist is prepared and on the basis of the list a manager simply rates
performance on a continuum such as excellent, good, average, fair, and poor.

MBO method
The Management by Objectives (MBO) method is a process in which managers and employees
jointly set objectives for the employees, periodically evaluate performance, and reward
according to the results. Although it is a three-step process, no standard form is used with MBO.
MBO is also known as work planning and review, goals management, goals and controls, and
management by results.

BARS form
The Behaviorally Anchored Rating Scale (BARS) form is a performance appraisal that provides
a description of each assessment along a model. Such as rating scales, the model often includes a
numerical scale from low to high.

Critical incidents method

The critical incidents method is a performance appraisal method in which a human resource
manager keeps a written record of positive and negative performance of employees throughout
the performance measurement period.

The narrative method

The narrative method requires a manager to write a statement about the employees performance.
There is no actual standard form used, but there can be a form, so narrative can be a method or a
form of appraising performance.

Paired comparison method

This method helps to make ranking more precisely. Here every quality of traits are paired and
compared every subordinate with other subordinate.

Forced distribution method

In this method we have to place predetermined percentages of rates into several performance
categories. The proportions in each category need not to be symmetrical.
By understanding above methods of performance appraisal techniques the best suitable appraisal
methods for Innocent Drinks is MBO method. Because it is a small enterprise and the
management set goals and employees are directed to do and management can easily evaluate the
traits and it also cost friendly technique.

4.3 Health and safety concerns

It is important to maintain health and safety issues as a famous company. It not only influences
the performance of the employee but also goodwill of the company. The company can ensures
safety by crating good working conditions, provide periodical health checkup, medicines, proper
investigation of machinery, insurance policy for workers, provide leisure time to get mentally
refreshed etc.

4.4 Rewarding and management strategy

Innocent Drinks as a small enterprise it should be concern about rewarding its employees. Cost
factors be considered and side by side the reward which is provided by appraising the
performance should be attractive to employee. If something wrong in terms of delivering reward
to motivation employee will not be satisfied although it incurs costs. So the management should
develop those strategies that support firms capability and also ensures employee satisfaction.

11. Conclusions
The future of the Innocent Drinks is more prospective. And for this proper management of
human resource is important. Although the company has still lack of expertise human resource
manager and belongs to small enterprise needs to very much careful that additional cost burden
is not created. The company should be friendly with the employees so it must choose the soft
human policy but the management control should be implemented. Workers flexibility should be
maintained in accordance with Innocents established norms and rules and overall the industry
norms. National labor laws should be maintained for further harassment by the authority. No
biasness is acceptable in all cases of activities and employees are motivated and proper reward
be given to satisfy their hard effort to the company. Remuneration and bonuses should be logical
in terms of their qualification. So lastly a successful human resource manager can help to attain
the desired target of the Innocent Drinks small business and overall profitability and goodwill.

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