Qualification - Higher National Diploma in Business
Unit Name - Human Resource Management
Unit Number - Unit 3
Unit Level - Level 5
Assignment Title - Human Resource Management
Learning Outcome 1: Explain the purpose and scope of Human Resource Management in terms of resourcing an organisation with talent and skills appropriate to fulfil business objectives.
Learning Outcome 2: Evaluate the effectiveness of the key elements of Human Resource Management in an organisation.
Learning Outcome 3: Analyse internal and external factors that affect Human Resource Management decision-making, including employment legislation.
Learning Outcome 4: Apply Human Resource Management practices in a work-related context.
Human resource management is the process of selecting and monitoring efficient staffs for an organization. Different people are recruited from different kinds of selection processes in an organization. Then a personal interview or screening is scheduled. From this, the best candidate is selected for the vacant position. HRM is also responsible for the smooth functioning of the organization. HRM helps the organization for gaining profits possible through the efforts of staffs, and having a successful business ahead. HRM is a management level that is appointed in every company and they are responsible for selecting the best candidates, giving the best benefits to the employees. The skills of employees directly affect the performance of the organization. So there is a need for the development of their skills (Michael, 2019).
Recapitulation of the case study in brief
Tesco PLC had recently been laying off excess employees who had been subjected to prolonged long durations of work daily, less compensation, absence of job security, feelings of being stressed out and burned out. Even staffs belonging to technical and managerial posts are acquired by means of outsourcing rather than acquiring them through internal recruitment process. Even managers are not clearly aligned towards work goals. The management is concerned about taking strategies by which they can ensure productivity and even curtail costs. In case of other staffs, the only means to save their jibs is to adjust or face getting fired. To avoid negative aspects, the only means is to develop flexibility in management and generate motivation among staffs for work, provide them with right space, right duration and benefits for work. Staffs are in need of better work environment, flexible job conditions, and keeping pace with all team members and hierarchy levels. Therefore it the duty of the human resource concerns to identify these conditions and work for betterment so as to study the staffs. Once staffs are satisfied, their behaviors and attitudes towards will reveal it.
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PURPOSE AND FUNCTIONS (SCOPE) OF HRM
HRM is responsible for recruiting and hiring employees even though they are also responsible for firing the people at many times. The management is responsible to conduct a selection and interview process for the candidates and select them and give them proper development training. This management plays a vital role from behind and makes a successful organization. It develops well-skilled employees in an organization.
Human resource planning is a very important function as a human resource manager does not hamper the strategic plan of management and he is held responsible for appointing skilled employees. It goes efficiently rather than the organization to directly hire employees or relying upon some strategic plan formulation. The employees who are qualified, adequate for the position, and are devoted to organization goals rather than being concerned about achieving self goals, are recruited, by HRM held responsible. The strategies of future human resource requirements are also decided by HRM.
1. Selection practices: An organization's selection practices will determine who gets hired. If properly designed, they will identify competent candidates and accurately match them to the job.
The function of HRM in a company is as follows:
• A healthy relationship between the employees, employer, and the laborer i.e. management of every hierarchy can be enabled, and they should have a better relationship with all the employees at different management levels.
• Benefit and compensation provided to every employee should be made clear at the time of recruitment so that it may not hamper the working of the organization.
• Proper training should be provided from time to time so that employees stay updated with the working method.
• Proper human resource planning, recruitment, and selection should be done so that the best candidate is selected for the opening. A proper plan should be made with the organization manager so that the selection criteria could be decided and candidates could be recruited according to it.
• A better working environment for the employees i.e. safe and healthy for them so that it does not hamper the growth of the organization (Macke and Genari, 2019).
RECRUITMENT AND SELECTION
Recruitment deals with selecting a workforce of potential candidates with acquired skills, learning, and experience. The selected employees should fulfill the requirement and should be eligible for the opening. There are 2 types of recruitment i.e. internal and external. Internal recruitment means to recruit employees within the organization and finding the eligible candidates for the opening from the organization itself. External recruitment means recruiting different employees from the outside for a job opening (Delery and Roumpi, 2017).
There is different strength and weakness for both the recruiting process, the parameters of internal recruitment would be discussed.
1. The candidates recruited are known to the organization.
2. It consumes less time for hiring candidates, as there are a full record and information about the employee.
3. The morale of the employee is boosted as he or she is trusted again by the organization (Nankervis et al., 2019).
1. It may hamper the company's environment and culture because if an employee becomes more comfortable in the organization then they will be used to the process of selection and hamper it.
2. Fewer candidates, as the variety of candidates available may not be vast.
3. Increased the cost of training as an employee working in the same organization for the same role is transferred to different then the training would be given more.
1. Variety of candidates.
2. Less training cost.
3. New to culture.
1. The hire cost is high.
2. Candidates are new to the organization.
3. It requires more time and has more cost.
The selection process deals with selecting the candidates through interviews, screening, tests online, and writing on print media. It helps to assess the candidate's skills and training and development different tests are taken for selecting the employees.
The techniques are:
• Preliminary screening,
• Telephonic interview,
• The candidate selected according to the working culture,
• Suggesting employees.
1. Gets the best candidate,
2. Can judge the candidate and get time to access them,
3. Their gesture could depict if they fit an organization or not,
1. It is time-consuming.
2. It acquires more cost as many tests need to be conducted for different approaches.
2. Training and development programs and compensation: Training programs can affect work behaviour in two ways. The most obvious is by directly improving the skills necessary for the employee to successfully complete his or her work job. A second benefit from training is that it increases an employee's self-efficacy. A major goal of performance evaluation is to assess accurately an individual's performance contribution as a basis for making reward allocation decisions.
APPLICATION AND BENEFITS OF DIFFERENT HRM PRACTICES
Tesco PLC's practices many kinds of functions to motivate their employees i.e. giving extra benefits, compensations, and incentive holidays all these help in achieving the goal of the organization and helps the organization to meet profits and even develop better "employee relations" with all employees. So these all decisions are taken by HRM so that the employees feel motivated and have a target to achieve organization goals. The HRM tries to make a healthy environment for working so that it has a positive effect on working (Shamim et al., 2016).
P3. One important role played by HRM of Tesco PLC has been that, the key stakeholders have identified the needs of all socio economic groups. This has increased sales, helped to meet needs of all customers, and has benefited both the employer as well as the employees of the organization. HRM is even responsible to make this happen by support of skilled employee recruited for the organization.
P4. Upon further evaluation on effectiveness of different HRM practices on organizational productivity and profit, one fact has been identified. Since Tesco identifies needs of all customer groups, it has been able to establish its business in several areas like electronics, clothing, petrol, financial services and diversified needs. The HRM managers check for all necessary criteria, and adopt new means like keeping skilled staffs only (primary activity), identifying whether there is any culture gap, and other means.
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Benefits of developing relation management
For motivating the employees and having a healthy relationship in the organization HRM follows different kinds of practices that are as follows:
Extrinsic and intrinsic rewards: The rewards are provided to employees to motivate them so that they can achieve organizational goals. Intrinsic rewards are no tangible assets like self-motivation, confidence, problem-solving experience that motivates the employees. An organization named Tesco PLC, practices an intrinsic reward system and gives chance to employees so that they can showcase their talent in the organization and managers could praise them by watching their talents. Whereas, extrinsic rewards are touchable rewards that are offered to employees for appraisals. For example, Tesco PLC provides incentive, compensation, benefits, holidays, so all these things are monetary benefits which act as a reward and an employee feels motivated (Cooke, 2018).
1. Motivational theory: Maslow's motivation theory strives in fulfilling the needs of the employees and providing them with all benefits including rewards accordingly so that the employees are satisfied and motivated for work. It can help to retain the staffs within the organization for several years.
2. Flexible working: Motivation can be given only if employees have flexible working hours and they have a relaxed mind and also the working structure of the organization ABC is not complex. The working environment should be healthy and the management levels should have a healthy relationship so that it does not create stress amongst them (John and Taylor, 2016).
Application and Rationale for developing HRM practices in work-related contexts:
Tesco PLC and its HRM practices many different kinds of benefits that motivate employees
For example, they use:
• Payroll: Organization: It has started to reform its existing practices and now it provides 6 months' payroll to each employee so that the organization employee feels motivated.
• Time and attendance: Working hours has been brought back to normal to employees and if any case they are made to work for extra working hours (as indicated clearly in the case study) incentives should be provided by Tesco PLC to the staffs. The attendance-based salary is given to employees like Tesco PLC allows 5 holidays a month after that the salary is deducted which is for each employee of Tesco. Earlier to this, staffs were threatened of adjusting with 10-15 working hours or get laid off.
• Benefits: Tesco PLC now provides extra benefits for the employee's like a family holiday of 3 days, and then residence is considered as free. Thus, organization gives extra benefits to some hard-working employees as a reward (Boon et al., 2018). Earlier employees used to work more, and get less pay, feel physically and mentally stressed out, and getting replaced by part-time employees. HR policies and practices were even not satisfactory.
P7: Selection process for retail staffs with Tesco
Tesco followed external recruitment processes whereby they place recruitments over social and print media as well as on their website. For candidates who are recruited for the post of a manager, the application process is done online. The candidates are called on a certain day, followed by assessment center that completes the selection process for retail staffs for Tesco.
Key elements of HRM as follows:
- Payroll: It deals with the proper collection of data of the employees for the income and tax.
- Employee self-service: The main work of HRM is recruiting, selecting, and firing the employee as well as the proper working of employees. And HR also keeps a record of personal actions of an employee in a file.
- Recruiting: Recruiting is the main essential element of Tesco PLC as the most eligible candidates need to be selected (Zaid et al., 2018).
- Training: The training is provided before the job and on the job by the manager so that the employees are fully updated. Tesco PLC provides proper training to employees before the office hours start 15 minutes of training and one session is conducted.
1. The burden of HR is less on the organization as HRM is responsible for recruiting employees and maintaining a proper environment for working.
2. The rules and regulations made for maintaining a business are all in hands of HRM (Kianto et al., 2017).
1. All the privacy is shared between the HRM, and the working of an organization is also hampered.
2. It may hamper the relationship between the employee and manager as the employees may have a more comfortable relationship with HRM.
3. Labour-management interface: The existence of a union in an organization adds another variable in their search to explain and predict employee behaviour. In addition, the formal norms that union cohesiveness fosters can encourage or discourage high productivity, organizational commitment and morale.
INTERNAL AND EXTERNAL FACTORS THAT AFFECT HRM
Every organization must have a healthy working environment because an environment where the organization works has a direct relationship with the organization's profits and goals. The more positive the environment is the more the goals could be achieved by an employee for the organization (Brewster, 2017).
Some rules and regulations and acts are been made for the safety of employees that are as follows:
1. The employment relation 2004 act: This act tells that every employee should get a healthy environment within workplace so that an employee can work well and achieve organization goals.
2. Employee agreement: The agreement which states the whole safety of the employee working.
3. Employee's involvement: In every decision of the organization, there must be involvement of the employees.
All the people working in an organization have a direct impact on the growth of the organization. The organization environment is the reason for its success and failure. If an organization has a healthy relationship amongst them then they will focus on achieving the goal of the organization and would be able to produce double the units they produced earlier just because of the favorable environment they get.
• Group decisions are more effective than an individual decision: The decisions made by the group members have a strong viewpoint and as in a group many people have many different kinds of ideas and suggestions that may help an organization. An individual will have one idea only but many individuals have any ideas which will lead to effective decision making.
• The workload is less: When work is shared amongst different people, this implies that the work is divided equally among the members who show that the workload is less and each employee could do work in a comfortable manner. Even the different levels have different teams and managers where they can report so no one person has an increased burden at all.
• Happiness amongst employees: When the organization works as a family and involves a healthy environment, then the employees are happy to do work there. The environment among them is so peaceful and they can do work and could also maintain informal and formal relations.
• Giving responsibility: If each employee is given a set of responsibilities, then he would be able to work with enthusiasm and would be proud that he accomplishes work goals. This will boost their morale and confidence and would motivate employees. This is the best way to involve the employees in the organization and motivating them.
Elements of employment legislation and its impact upon HRM decision making
The laws and rules are made for protecting every employee working in the organization. This means that employee's rights should not be harmed or threatened while they are working in an organization. In an organization, the following laws are kept in mind while making decisions.
1. Equality act 2010: This act says that every employee should be treated equally in terms of monetary and working. The cast, sex, gender, nationality does not matter if he is working in an organization. In this organization ie Tesco PLC, every employee is treated equally.
2. Minimum wage act 1998: Every organization must provide a minimum wage to its employees and labor. The wage differs from country to country. In this organization, the act is followed strictly.
So, all the factors that may be internal or external affect the decision making of an organization.
HRM practices in work-related context: The objective of effective selection is to match individual characteristics (ability, experience and so on) with the requirements of the job. When management fails to get a proper match, both employee performance and satisfaction suffer. In this search to achieve the right individual - job fit, where does management begin? The answer is to assess the demands and requirements of the job.
HUMAN RESOURCE MANAGEMENT PRACTICES IN A WORK RELATED CONTEXT
HRM plays an important role in finding a specified person for a specified job. HRM need to have job specification i.e. what are the requirements of the company, the qualification that a candidate must have, the job role, the opening position that needs to be fulfilled by the employee, the skills, the experience a candidate must have, duties that he needs to perform. Then HRM takes an interview of candidates. The interview may differ as it could be a telephonic or walk-in-interview. The selection is done on the criteria given and then the best suiting employee is been selected by HRM.
1. The policies of business rules must be aligned by HR. that is the HR policies and the plan needs to be aligned with the business objectives. The HRM objective and function like selection, recruitment, training, development should be discussed with the business plan management.
2. Recruitment and selection of the candidates must be done. The shortlisted candidates must have an interview and the selected one should be given the job position. In ABC organization, there is internal and external recruitment both and the shortlisted candidates are interviewed and a proper process is followed.
3. A proper format should be created that how the work would take place i.e. a proper workforce planning should be done so that the workforce gets the work on time and could also complete the work on time.
4. The proper training should be given to employees before the job role is given. In our organization easy employees get 6-month training with a stipend before they take a job position. This is a practice so that the employee is properly trained and developed for the job role.
5. Motivating employees is the most important thing as they can be motivated by giving them rewards, incentives, and benefits so that they work for achieving the organizational goals (Papa et al., 2018).
The strategies that need to be applied in Tesco PLC as given above so that the organization can fight with the competitive market and could get success in the business. The issue that has been recognized in this organization is the workforce planning is very less. The employees are not happy with their job nor are they motivated towards working. So the most important asset of Tesco PLC is that, the employees must be recruited generously, and proper training should be given, proper motivation should be given to employees so that all employees have zeal to achieve the organization's goals. As a consultant in this organization, I would say that the workforce should be happy, satisfied, and motivated because they are the ones who will help the organization to achieve its goal and the organization should give rewards to motivate employees. Several steps are been taken to ensure fulfillment of such criteria within the organization.