Qualification - Higher National Diploma in Business
Unit Name - Human Resource Management
Unit Number - Unit 3
Assignment Title - The Role of HRM and Organisational Development
Learning Outcome 1: Explain the impact of the role of HRM in creating sustainable organisational performance and contributing to business success.
Learning Outcome 2: Assess the contribution of HRM in recruiting and retaining talent and skills to achieve business objectives.
Learning Outcome 3: Examine how external and internal factors can affect HRM decision making in relation to organisational development.
Learning Outcome 4: Apply HRM practices in a work-related context for improving sustainable organisational performance.
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An increasing number of workers working for a multinational company see themselves as overworked, underpaid and just fed up with the way their employer is treating them. They are having to work longer hours for less pay. The job security they enjoy just 10 or 15 years ago seems like a distant memory. The workplace that used to be ‘one big happy family' is now the scene of stressed-out workers who fear for their jobs. Most of the mid-level managers and technical staff are recruited from outside instead of resourcing internally. There is no clear-cut career path for managers.
Workforce management is the process of selecting, hiring, and testing employees to best suit the organization and help in accomplishing the goals of the firm. Diageo is a multinational firm that operates worldwide and works in the field of beverage and alcohol sector. The firm has its head office placed in London, England. The firm was incepted in the year 1977 and is running and operating successfully to date. Various HRM practices and the role of HRM in creating sustainable business for the organization will be discussed in the report. It will further discuss the various internal and external factors that contribute to the evolving process of the organization (Esteban-Lloret et al, 2018).
This will be presented as a report to the CEO and should include the following:
1. An overview of the organization.
2. An explanation on different HRM areas and their contribution to organisational performance.
3. An examination of strategic HRM in relation to the changing effects on human resources skills and knowledge.
4. An assessment of relevant HRM practices in relation to recruitment and retention of employees for the achievement of business objectives.
5. An investigation into the internal and external factors that influence HRM decisions in the workplace.
6. An analysis on the effectiveness of a staff selection exercise in the chosen organization. Provide rationale for the application of this specific HRM practice, with recommendations of how the practice can improve sustainable organisational performance.
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LO1 Illustrate the effect of the role of HRM in creating sustainable business for the organization
Diageo is a multinational firm that has its head office in London, England. It is a firm that operates worldwide and works in the field of beverage and alcohol sector. The company operates in more than 180 countries and is known to be the world's largest distiller in the world (Govaerts et al, 2013).
Human resource management plays an important role in contributing to the success of the firm and creating a sustainable business.
The main areas of HRM that help in creating a sustainable business for the firm are detailed below.
• Recruiting: this process includes looking and screening for the right candidate for the firm that will help in achieving the business goals of Diageo.
• Safety and health of the employees have to be maintained and should give the necessary security at the workplace.
• Employee relations have to be built by the HRM and ensure good bonds are maintained between the employees for them to work together and achieve goals.
• Compensation and benefits have to be provided to the employees when working at Diageo because these often motivate the employees to stay loyal and work hard for the company.
• Training and development have to be given to the newly joined employees to ensure they have the upgraded skills and talent to achieve the organizational goals.
The hard model of HRM focuses only on the profits of the firm and treats employees as a source of business and do not treat them any different from machine or tools. In the Soft model of HRM, employees are considered valuable assets and a source of competitive advantage for the company.
There are two types of hiring methods via which Diageo can hire employees for the firm. The internal recruitment method hires staff from within the organization who is a good position for being promoted to a higher position or to shift to another department. The external recruitment method is done by hiring employees from outside by stating and giving ads for vacancies and then selecting an appropriate candidate for the firm. With the changing business environment, it is become important to adopt various HRM strategies to meet the needs of the customers and the employees at the same time. There are various strengths and weaknesses of the internal and external hiring method (Haslinda, 2019). The strengths of the internal method are the expense of advertising the vacancy and the process of selecting an employee is minimized. The weakness of this method is the loss of talent. On the other hand, the strength of the external method of hiring is better talented and skilled candidates can be hired whereas the weakness is the expense is a lot in hiring from a pool of candidates as they also need to be trained as per the expectations of the company policies.
Therefore, with the right direction and right HRM practices the employees can help in creating a sustainable organization and ace the modern business world with ease.
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LO2 contribution of HRM in hiring and retaining talent in Diageo
Differing between training and development is a very essential part of HRM as both of these activities aid in enhancing the performance of the organization. Training of the employee is done to ensure he or she has the necessary skills and talent to achieve the business goals of Diageo. To bring about development in the company, it is very important to understand the gap in training and fix that gap by training the employees in that particular area or skill. Various training methods can be selected to fix the training gap such as induction, vestibule, job, refresher, and promotional training (Hoque, 2013). Post this, an evaluation of training is done to ensure the employees have been trained well and those skills and knowledge to be used in achieving the business goals of the organization. Post this, various intrinsic and extrinsic rewards are given to the employees as per their performance and as an appraisal of their contribution to the organization.
Other HRM practices in the recruitment process are detailed below.
Job design and job extension techniques involve a series of steps namely rotation, simplification, enlargement, and enrichment of jobs. Job design helps in analyzing the data and information related to the job, and the skills and talent required to qualify for that particular job position. Various types of flexibility are practiced in the company to ensure that employees work with full productivity in the organization. The different types of flexibility are numerical which helps Diageo to maintain the demand of employees as and when fluctuations take place in the firm. Structural flexibility makes use of a capability pattern that helps in generating indices that aid in quantifying the system. In the end, functional flexibility aids in introducing labor to take up new activities and tasks whenever required in the organization. The models of flexible firms are Atkinson's model which talks about the different types of flexibility that can be used by the organization to make it more productive.
To bring about retention of employees in the organization, it is important to give them flexible work options and added compensation and bonus with it. Flexible work options include flexible work timings with employees having no standard working hours, and no standard work of place as they can choose the place of work which can include a remote location too. Rewards have to be given to the employees promptly to ensure their work is rewarded and they feel appreciated to work harder for the company (Kwon et al, 2010). These practices will not just help in increasing the loyalty of the firm but will also ensure to bring about retention of employees when they are treated well and rewarded and appreciated for their work. Providing employees with flexibility will not just bring about retention of employees but will also help them to create a work-life balance between their personal and professional lives. They will be able to give time to both areas of life which will greatly reduce stress for the labor and they can work stress-free and with an open mind for the company. These practices will greatly help in boosting the morale of the employees which in turn will boost their performance-enhancing the productivity of the organization as a whole.
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LO3 inspects intrinsic and extrinsic parameters that impact the process of decision-making about the development of the firm
Employee relations is the method of managing and interacting with the employees and getting into a conversation with them to understand their needs and requirements in detail. Therefore, Diageo needs to apply effective strategies to maintain good labor relations which are discussed below in detail.
• Communication is one of the key strategies to bring about good labor bonds. For example, the employees need to be updated with the right amount of information about the products sold in the company and the necessary information for them to perform well in the tasks and achieve the goals (Noe et al, 2017).
• Career development opportunities should be provided to the employees working at Diageo which will help in adding to the personal growth of the employees. In this way, they would be more loyal to the organization and will stay and work for the firm more intently.
• Motivation should be provided in the form of rewards, bonuses, compensation, and performance appraisal methods that makes the employees feel valued. All of these strategies will help in maintaining good bonds with the employees and enhance the productivity of the organization.
Employment legislation also has an impact on the decision-making process of the company.
Employment protection act: as per the act, Diageo should provide its employees with a fixed wage, standard working hours, positive and secure work environment.
Equality act: as per this act, the firm should ensure to provide equal opportunities for all the labor in the organization. This should be followed irrespective of the gender, race, ethnicity, religion, or color they belong to.
Apart from this, Diageo should also maintain social and ethical duties by respecting the privacy of the workers and by not intruding on their personal space both offline and online. For example, the labor working at Diageo should be informed well in advance if they have to monitor. The electronic monitoring of the workers should not be placed without the consent of the labor and should not take place in private places such as bathrooms, locker rooms, or dressing rooms.
The role of trade unions is to supply different services to the firm and provide guidance to laborers who are finding difficulty in working and are bargaining for an increase in pay at work. It is also their duty to bring about improvement in public services that are given to the employees at Diageo (Kaufman, 2010). A collective agreement is a form of contract between the employer and the trade union that lists down the terms and conditions of the agreement and also the rules of employment that happen in a bargaining unit. Grievances and problems faced by the employees can be brought to notice if any decision is taken against the employee. If the employer does not require any employee in the firm they can give a genuine redundancy and the employer can dismiss the employee.
LO4 Apply different HRM practices in a work-related context
A portfolio of an intern in the HR department of Diageo for the position as an HR assistant is detailed below.
Job specification involves the process of describing the skills, duties, and knowledge of employees for the position (Stone et al, 2015).
• The qualification of the candidate should either be a BBA or MBA graduate.
• Person specification- young, energetic, effective communication skills, good knowledge about HRM, and effective interpersonal skills.
• As per the policy of the company, the candidate should have a minimum of three years of experience.
• The candidate should be aged between 24-32 years to be qualified for this particular job role.
Technology has played a very vital role in the hiring and selection process as it has made it easier to hire and select people. The effect of technology is seen in all fields and professions and it has helped the firm to recruit better and more talented candidates from a large pool of applicants. Telephonic interviews, online surveys, and online questionnaires have made it easier to understand the applicant on a basic level which has made it easier for the recruiter to recruit the employees and select them easily. The remote selection also has become easier with video calling apps that will help in taking online interviews via skype, sample tests, etc. it has now become very easy to design and place job placements both on online and offline portals. The job description has to be very specific, easily readable, and concise for the reader to understand the requirements. The pro of this method is Diageo gets to choose the best candidate from a large pool of candidates and gets the best fit for the organization.
Once the application is finalized, they can be shortlisted and the CV can be processed to the next level where the candidates will be interviewed and the selection process will be taken further. Once the shortlisting process is done, the interview process begins where the selected candidates will be interviewed further for the job position. Based on the location of the interviewee, the mode of the interview can be decided. When the candidate is from a remote location interview can be done by online video calling apps (Robbins, 2003). When the candidate is visiting in person a face-to-face interview can take place. The selection practices have to be wisely planned which will help in understanding the knowledge and qualifications of the candidate deeply. Post selection effective training has to be provided to the candidate as per the job position to ensure the necessary skills, talent, and knowledge is present within the candidate to execute the tasks in a timely manner. This will help the employee accomplish the tasks and add productivity to the organization. It is important to know the background of the applicant to ensure he or she is the right fit for the organization and ensure to choose the right fit and train them in the right manner to achieve greater productivity.
Diageo is a multinational firm that operates worldwide and works in the field of beverage and alcohol sector. The firm has its head office placed in London, England. The firm was incepted in the year 1977 and is running and operating successfully to date (Wright, 2018). Workforce management is the process of selecting, hiring, and testing employees to best suit the organization and help in accomplishing the goals of the firm. Human resource management plays an important role in contributing to the success of the firm and creating a sustainable business Various HRM practices and the role of HRM in creating sustainable business for the organization have been discussed in the report. It will further discuss the various internal and external factors that contribute to the evolving process of the organization.