HND Business Human resource management Essay
HND Business Human resource management
Personnel Management is essentially an administrative record-keeping function, at the ground level. Personnel Management professionally manages employee’s activities for individual departments for example in Bhs you will have a personal manger for customer services. It is assumed that the outcomes from providing justice and achieving efficiency in the management of personnel activities will result ultimately in achieving organizational success. Human Resource Development –
Human resource management is concerned with the Training, promotion development and implementation of people strategies, which are incorporated with business strategies, and guarantees that the culture, values and structure of the organization, and the quality, incentives and commitment of its members contribute fully to the achievement of its goals.
Human Resources Management is focused with carrying such task as, job analysis, recruitment and selection, employee relations, performance management, employee appraisals, compensation management, training and development. But, the Human Resources method performs these functions in distinct way, when compared with Personnel management. Personnel management is about the continuance of personnel and administrative systems, Human Resources Management is about the anticipation of organizational needs, the continual monitoring and adjustment of personnel systems to meet current and future requirements, and the management of change.
Differences between Personnel management and Human Resources management
Personnel management is more workforces focused, aimed mainly at the organization’s employees; such as, arranging for them to be paid, and justifying management’s actions etc. Whereas, Human Resources management is
more resource centered, Personnel Management is fundamentally an operational function, concerned principally with carrying out the day to day people management activities. While on the other hand, Human Resources Management is strategic in nature, that is, being concerned with directly assisting an organization to gain competitive advantage. HRM is a more strategic and proactive form whereas personnel management is a reactive.
Human Resources Management has been considered as the strategic and logical approach to the management of an organization’s most valued.
The personnel management has functions which are conventional and systematic whereas HRM deals with innovative ideas and are committed to enforcing better business conditions. Personnel management has evolved from being an independent function of the company to human recourses management which is an integral part of the company.
20 Points of Difference between Personnel Management & HRD
Human Resource Development
Beliefs & Assumptions
Careful delineation of written contracts
Aim to go ‘beyond contracts’
Importance of devising clear rules
‘Can-do’ outlook; impatience with ‘rule’
Guide to management Action
Business – need
custom & practice
Managerial Task vis-à-vis Labour
Speed of Decision
High (e.g. ‘parity’ an issue)
Low (e.g. ‘parity’ not seen as relevant)
Prized management skills
Separate, marginal task
Integrated, key task
Job Evaluation (fixed grades)
Performance – related
Collective bargaining contracts
Towards individual contracts
Job categories & grades
Division of Labour
The Role of Human Resource Management in Organizations
Managers in the Human Resources profession have the essential job of organizing people so that they can effectively perform their job description. Human resources professionals work together to develop employees’ skills. For example, HR professionals advise managers and supervisors how to assign employees to different roles in the organization, thereby helping the organization adapt successfully to its environment. In a flexible organization, employees are shifted around to different business functions based on business priorities and employee preferences. Human resources professionals also suggest strategies for increasing employee commitment to the organization. This begins with using the recruiting process or matching employees with the right positions according to their qualifications. Human resources management team helps a business develop a competitive advantage, which involves building the ability of the company so it can offer a unique set of goods or services to its customers. They can do this by hiring the right individuals but it’s not just about hiring talent; it is about keeping people and helping them grow and stay committed over the long term.
The Human resources team has to identify needs of the employees regarding career goals and work upon them to make the employees feel important and motivated by providing them with training related to their field of interest. If the employee does not feel their skills are being utilized fully towards performing their duties they will start to underperform due to lack of motivation. Human resources duties also concern understanding and defining the overall objectives of the organization, its mission as well as vision. It does not only include the present organization requirements but also forecasting the future needs and making strategies for fulfilling them. Human resources team is also responsible for ensuring the availability for training the employees. Human resources management team understand that if the employees are properly trained and developed, it can prove to be the best investment made by the company which will definitely furnish quality returns in future. Human resources team is responsible for selecting the best workforce from the prospective employees by using the recruitment options like, Personal interviews and group interviews Trial etc.
Human resources team is responsible for ensuring employee health and safety by abiding to the employee health and safety regulations and managing grievances and ensuring provisions benefits to keep employees motivated. Human resources team keep a record of the employee profiles and database so that it can be readily available at the time of recruitment and staffing and also ensuring its confidentiality.
The role of line managers in HR Resource
The Line managers are managers to whom individual or teams of employees directly report to and who have responsibility to a higher level of management for those employees or teams. Line Managers are authorized to direct the work of subordinates and are responsible for accomplishing the organization’s tasks. Typically the management responsibilities carried out by line managers might include: Employee management
Managing operational costs
Providing technical expertise
Organisation of work allocation and rotas
Monitoring work processes
Dealing with customers/clients
Measuring operational performance.
Line managers also carry out activities that such as providing coaching and guidance, undertaking performance appraisals and dealing with discipline and grievances. Line Managers are responsible for: ensuring that any staff experiencing performance difficulties are managed appropriately and working with the employee to identify measures that could be used to improve performance. Ensuring the staff member has a full understanding of the consequences of not improving, Setting realistic and measurable standards of performance and an action plan incorporating targets, standards, deadlines. Line managers manage operational functions that are crucial for the company’s survival.
Line Manager Responsibility
1. Ensuring that any staff experiencing performance difficulties are managed appropriately
2. Ensuring the staff member has a full understanding of the consequences of not improving
3. Placing the right employee on the right job
4. Starting new employees in the organization
5. Training employees for jobs that are new to them
6. Improving the job performance of each person
Impact of the legal and regulatory framework on HRM
British legislations have employment laws, affecting topics such as employee criminal record checks, preventing offenders from working in certain professions these legislations are supposed to protect vulnerable people like children or stop unwonted people from obtaining the job.
National minimum wage Act was brought into force to ensure that employees are getting a fair wage in relation to their work. Wage and Hourly rates The national minimum wage establishes the amount of the minimum wage an employee receives per hour. Human resources managers should continuously verify the accuracy of the amount paid to employees
Race Relations Act 1976 Prevents discrimination because of race in employment. The impact this has in the workplace is a Varity of different cultural backgrounds in the work place and this can have a really positive effect if managed effectively
Anti-discrimination Sex Discrimination Act 1975 Protects men and women from discrimination because of sex in the workplace, this legislation is about equal opportunities in the work place across the sexes men and women in the workplace should be treated equally.
Disability Discrimination Act 1995 Prevents discrimination against people because of disabilities in employment. The impact this Act will have in the workplace would be there would be a few more disabled individuals in the workplace which will benefit the economy.
Equal Pay Act (1970) Aspect of the Sex Discrimination Law
Gives the right for men and women to be paid the same rate of pay, for the same, or equivalent, work Gives individuals the right to the same pay and benefits as a person of the opposite sex in the same employment where the man and woman are doing;
1. Same grade work
2. Work rated as equivalent under a job evaluation study
3. Work that is proved to be of equal value
Human resources develop policies to make sure that managers and employees are aware of how these legal restrictions and how to deal with potential violations
There are many reasons for termination. Employee termination also can be voluntary, when an employee decides to leave a company for some reason. Reasons can include unacceptable performance or as a result of a change in business conditions for example a recession.
Termination with just cause
In law, termination with just cause means that an action or error by the employee has irreparably damaged the employment relationship between the employer and the employee. Usually, termination with cause occurs when an employee is dismissed for a serious reason related to the employee’s conduct. There are seven main Examples of misconduct.
1. Theft and dishonesty
3. Drug and alcohol abuse
4. Breach of confidence
7. Misconduct outside of the workplace
Some common grounds used in termination with cause are:
1. Fraudulence – stealing or fraud by the employee that is serious enough to authorise dismissal from organisation. 2. Noncompliance – an employee frequently breaks organizational policies and discipline has not resulted in a change in behaviour 3. Incompetence – an employee is incompetent at their job and performance has not improved even though the employee has been given the direction, foundations, training and time needed to improve.
Incompetent Job Performance
Employee’s contracts may get cut because the person is unable to perform some or all of the necessary aspects of the job. Before dismissal the employer, should point out their deficiencies during a performance evaluation and provide counselling to help her improve. If they show little or no improvement, consider moving them to a more suitable position, if possible.
When employees are hired to work for a company, they are given a job description that outlines the duties they’re expected to fulfill. When employees fall short in achieving their goals, managers are faced with deciding whether or not an employee’s performance warrants his termination. Poor performance can include everything from not hitting target sales goals and overlooking project details to not missing deadlines. Employees may also be terminated because they lack the knowledge and skills needed to fulfill assigned tasks.
Unfavourable business conditions may force you to lay off employees for economic reasons as opposed to poor performance. The layoff may be permanent, or the employee may be called back to work if business conditions improve
A merger or a buy-out usually requires changes within the Company’s’ structure, which might affect employment. Although the employer is not legally required to do so, some employers offer a severance package to employees terminated under these circumstances.
Layoffs if there is a lack of work, or the company is undergoing financial problems the company might lay off employees. The employer must ensure the layoff is fair and legal. Employers must give employees advance notice of closings and mass layoffs. This gives the employees and their families’ time to adjust to loss of employment and to seek alternative support.
Unacceptable Behaviours / for cause
You may need to fire an employee due to unacceptable behaviour; actions can include stealing company property, or verbally or physically threatening another employee. The employee may also display a pattern of disrespectful or insubordinate behaviour directed toward you or your supervisors that results in a disruption of your work environment.
An employee who misses work frequently or is habitually late negatively affects your business’s productivity and can place an unfair burden on your other workers. Chronic absenteeism could be a sign that the employee is dealing with job dissatisfaction.
In a voluntary termination, an employee hands in their notice from their job. Reasons for resignations have that included: a new job, returning to full time education, and retirement. If a contract isn’t renewed
This is considered to be a dismissal, and if the employee has 2 years’ service the employer needs to show that there’s a reasonable reason for not renewing the contract Workers have the right: not to be unfairly dismissed after two years’
Dismissal when your employer ends your employment – they don’t always have to give you notice. If you’re dismissed, your employer must show they have a valid reason that they can justify and also that they have acted reasonably in the circumstances They must also: be consistent – not dismiss you for doing something that they let other employees do
Fair and unfair dismissal
A dismissal is fair or unfair depending on the reason for it and how the employer acted during the dismissal process.
This is when an employee resigns because you’ve breached their employment contract. This could be a single serious event or a series of less serious events. An employee could claim constructive dismissal if you:
cut their wages without agreement
unlawfully demote them
allow them to be harassed, bullied or discriminated against
This is where you break the terms of an employee’s contract in the dismissal process, eg dismissing someone without giving them proper notice.
AC 4.2 describe the employment exit procedures used by two organisations The exit procedures of ASDA
Step One, Resignation handed to personnel manager
Step Two Personal manager informs human resources department.
Step Three Employee has to return the companies possession of equipment and supplies.
Human Resources team is responsible for initiating and following through with the exit process. If the resignation is voluntary HRM invites employee to attend an exit Interview to gather information and improve quality of work life at the organization. The secondary reason is to provide closure to the separating employee The exit interview Primary Purpose is to gather information to improve employee relations practices Spot developing trends
Identify areas of weakness
Identify areas of strength
Exit interviews are also used to understand, and try to identify patterns in, reasons for resignation they are conducted face -to-face, by telephone, or as a survey. Focus is on reasons for leaving, reflections on the positive and negative aspects of the organization, level of satisfaction with various aspects of the organization.
Processing a Resignation NHS West Midlands
Step one The Line Manager gives notice to the Human Resources department upon receipt of a resignation.
Step two the Line Manager recognizes resignation in writing and forwards the letter of resignation to the Human Resources department.
Step Three Line Manager forwards confirmation of employee’s last working day and details of any other relevant information to the Human Resources department. The Human Resources department prepares a Termination Form on the basis of the information provided by the Line Manager and ensures it is forwarded to the Payroll department in time to meet the monthly deadline
Step Four the Human Resources Department writes to the employee offering them An exit Interview and enclosing an exit Interview Questionnaire for them to Complete in preparation for the interview. The Human Resources Department forwards the Line Manager a confirmation of Service Proforma to complete and return. The completed proforma will be retained on the employee’s personnel file and will provide the basis for any employment references given by the Board
Interview is conducted by an appropriate member of the Human Resources team. All information collected remains confidential and is stored in line with the Data Protection Act 1998.
AC 2.1 analyse the reasons for human resource planning in organisations
Human Resource (HR) Planning is the practice of determining and analyzing the requirement for and supply of workforce in order to achieve the organization’s goals and objectives, fulfill its mission and reach its vision (Mathis & Jackson, 2000).
Human resource department know that planning is of paramount of importance to achieving an organizations objective. This part of my assignment will discuss the importance of HR planning and the six steps of HR planning which consist of:
2. inventory audit,
3. HR Resource Plan;
4. Implementation of Plan;
HR Planning involves gathering information, making objectives, and making decisions to enable the organization achieve its objectives types of questions HRM may consider
1. How many staff does the Organization have?
2. What type of employees as far as skills and abilities does the Company have?
3. How should the Organization best utilize the available resources?
4. How can the Company keep its employees?
The most important reason why HR Planning should be managed and implemented is the costs involved. Because costs forms an important part of any Organizations budget. Whenever there are staff shortages, the organization should be in a position to utilize the skills of employees available more readily.
HRM planning determines future employment needs by analyzing current business conditions and current trends within the business, for example over the Christmas period most big high street retailers will employ more short term staff because the demand for goods over the Christmas period. Identifying these trends and planning for them will let the business be in a more positive position to be conducting business. HRP is also concerned with employee turnover within the business as management needs the right employees at the right place to make a profit and benefit the organization.
(2.2) Steps in HR Planning
HR Planning requires that we gather data on the Organizational goals objectives. One should understand where the Organization wants to go and how it wants to get to that point. The needs of the employees are derived from the corporate objectives of the Organization. They stern from shorter and medium term objectives Therefore, the HR Plan should have a mechanism to express planned Company strategies into planned results and budgets so that these can be converted in terms of numbers and skills required.
After knowing what human resources are required in the Organization, the next step is to take stock of the current employees in the Organization. The HR inventory should not only relate to data concerning numbers, ages, but also an analysis of individuals and skills. Skills inventory provides valid information on professional and technical skills and other qualifications provided in the firm. It reveals what skills are immediately available when compared to the forecasted HR requirements.
HR inventory calls for collection of data; the HR audit requires systematic examination and analysis of this data. The Audit looks at what had occurred in the past and at present in terms of labor turn over, age and sex groupings, training costs and absence. Based on this information, one can then be able to predict what will happen to HR in the future in the Organization.
HR resource plan
Here we look at career Planning and HR plans. People are the greatest asserts in any Organization. The Organization is at liberty to develop its staff at full pace in the way ideally suited to their individual capacities. The main reason is that the Organization’s objectives should be aligned as near as possible, or matched, in order to give optimum scope for the developing potential of its employees. Therefore, career planning may also be referred to as HR Planning or succession planning.
The questions that should concern us are:
a) Are we making use of the available talent we have in the Organization?
b) Are employees satisfied with our care of their growth in terms of advancing their career? Actioning of Plan
There are three fundamentals necessary for this first step.
1) Know where you are going.
2) There must be acceptance and backing from top management for the planning.
3) There must be knowledge of the available resources
Monitoring and Control.
This is the last stage of HR planning in the Organization. Once the programme has been accepted and implementation launched, it has to be controlled. HR department has to make a follow up to see what is happening in terms of the available resources. The idea is to make sure that we make use of all the available talents that are at our disposal failure of which we continue to struggle to get to the top.
2.3 Recruitment and selection process.
Recruitment is the process of approximating the available vacancies and making suitable arrangements for their selection and appointment. Recruitment is understood as the process of searching for and obtaining applicants for the jobs, from among whom the right people can be selected. The result is a few eligible applicants from which new employees are selected The difference between recruitment and selection:
Recruitment is identifying and encouraging potential employees to apply for a job. And Selection is selecting the right candidate from the collection of applicants. Goals of selection are to select a candidate that will be successful in performing the tasks and meeting the responsibilities of the position.
Selection process involves a number of steps. The basic ideais to solicit maximum possible information about thecandidates to ascertain their suitability for employment
1).Screening of Applications
Prospective employees have to fill in some sort of application forms. These forms have information about the applicants like their achievements, experience.
2) Selection Tests
Selection tests to know more about the candidates or to reject the candidates who cannot be called for interview.
4) Interview The basic idea here is to find out overall suitability of candidates for the jobs. It also provides opportunity to give relevant information about the organization to the candidates
5) Approval by appropriate Authority
Suitable candidates are recommended for selection by the selection committee or personnel department. Functional heads concerned may be approving authority. When the approval is received, the candidates are informed about their selection and asked to report for duty to specified persons.
After all the formalities are completed, the candidates are placed on their jobs initially on probation period may range from three months to two years. During this period, they are observed keenly, and when they complete this period successfully, they become the permanent employees of the organization.
Recruitment and selection process at Tata
Having received the applications, the next step is to evaluate applicants experience and qualifications and make a selection. Screening purpose is to evaluate the application and eliminate applicants whose profiles do not match the job requirements, Short-listing of CVs received from various sources are screened by the HR function within a week of commencement of sourcing activity.
Knowledge and aptitude test is conducted for all trainees and laterals recruits. The result of test will be criteria for short listing /screening candidates for the purpose of interview. Psychometric Test is done to find out the “CRISP” fit.
While hiring at Tata, they look for the following attributes C – Customer Focus
R – Result Orientation
I – Initiative and Speed
S – Self Confidence
P – Passion for achievement
This is powerful technique used to assess the capabilities/skills of the candidate and to understand the softer aspects that a difficult to measure from resumes. After finalizing a date and time, short-listed candidates are invited for an interview
Selection Process and interviews for Tata motor cars
Duration of written/online tests and interviews
1) Aptitude Test
2) Technical Test
3) Psychometric Test
4) Group Discussion
5) HR Interview
6) Technical Interview
0-30 Minutes Technical Interview
Technical subjects to study for written test Theory of Machines, Automobile engineering, Fluid Dynamics and Machinery. The Psychometric test questions the test the way you handle situations under different circumstances. Recruitment at Asda
Phase one Applications are registered through Asda’s online recruitment system, Asda’s HR team then shortlist appropriate candidates for interview or an assessment centre. Two documents are vital here: a job description and a personal specification. These inform applicants and help managers select the candidates that best match the requirements for the position.
Step two attend the assessment centre known as either ‘Asda Reality’ this provides an opportunity for candidates to demonstrate their strengths which align to Asda’s culture, beliefs and way of working. Step three interview once selected, the final part of the recruitment process involves providing appropriate training. At Asda, each new colleague is put into a specific training plan designed for their role. (2.4)
The first phase of recruitment at Asda is automated you can upload your curriculum vitae and edit your personal details on line, this way it makes it simper for the recruiters to narrow down the employees they would like. Asda’s online recruitment process has improved the speed and efficiency of recruitment, making applications easier for candidates and selection faster for management. On the second phase is really about meeting your potential employer and selling your skills and experience to see if you could fit in with the organisations overall vision.
The recruitment and selection at Tata is far more complicated than that at Asda this is because of the more highly skilled aspects of the work. Phase one is based on receiving applications for the vacant position. Phase two evaluate applicants experience and qualifications and make a selection. Screening purpose is to evaluate the application and eliminate applicants, whose profiles do not match the job requirements, Phase three are tests to test the competence of potential employees theses test consist of technical and written aspects Phase four is the Human resources interview and phase five is the technical interview.
Appraisals and rewards system at Tata Motors are based on key results area. There are reviews at regular intervals, promotions are based on performance, and productivity and rewards comes in the form of profit linked incentives schemes. Positive appraisals can affect your career pathway with fast track options for high performers and interviews for positions above manager’s positions. Tata motor company employees have appraisals twice a year whereby employees get feedback which gives them a chance to look at their approach of working, The necessary steps are also undertaken for employees who deviate from their goals
Tata motors have introduced a comprehensive system of quarterly appraisals whereby each employee selects their own key results areas or goals and every quarter they have the chance to go back and asses their own performance against the parameters. For many front line employees these performance related quarterly payouts designed to reward them with incentives for their performance. Tata Motors have midterm reviews for all employees that have had positive appraisals creating an expectation of a salary rise twice a year if they perform well. At Tata employees and supervisors can set up joint participations goals this method often leads to employee commitment along with smart goals Specific – precise and detailed
Measurable – with criteria for determing progress and success Achievable – attainable
Realistic – Relevant
Time related – Grounded in a time frame
This system is commonly known as 90 degree appraisal system. Performance rating Process at Tata Motors
Performs consistently and substancly above all exceptions in all areas Performs exceptionally well in all areas.
Achieves a final score of greater than or equal to 115%
Achieves final score between 100-114%
Consistently delivers on stretch targets
Versatile in their area
Little or no supervision
Spots and anticipates problems, implements solutions
Sets examples for others
Sees and exploits opportunities.
Take ownership of own development
Delivers ahead of time
Sees wider impact across business
Demonstrates business initiative
Focuses on what’s good for the business
Herzberg motivation theory
Frederick Herzberg in 1966 came up with a theory that job motivators were closely connected to job And the motivator’s appeared to produce motivated behavior whereas hygiene factors produced dissatisfaction From the way Tata motors conducts its appraisals and gives incentives I can see they firmly believe in some key points Herzberg mentioned in 1966 regarding Achievement, recognition, advancement and growth, giving employees with good appraisal reports promotions and pay rises will motivate employees and lead to extreme job satisfaction Factors leading to extreme dissatisfaction
Factors leading to extreme satisfaction
Company-policy & administration
Relationship with supervisor
Relationship with peers
Relationship with subordinates
Asda used 360 degree feedbacks for appraisal in this process employees are assessed based personal and professional skill sets, customer service and multitasking skills to see if they can perform multiple tasks under pressure. For slightly senior employees they consider coaching skills to be an essential part of leadership skills. In this process they judge how a person can train the subordinates. Apart from that it also judges the counseling skills of the people that help them in guiding the subordinates in expanding responsibility and capacity and delegate work according to their individual potential. Asda has redesigned 360 degree program to develop the employee performance through the process like Individual bonus, program
The individual bonus factor is used to promote the best employee from their performance. This process aims the organisational objectives through the employee performance. As the Result of this process, the employee survey conducted in ASDA that shows the individual bonus process will be a great success through the high level of employee commitments and improvements through the self-motivation.
In 1911 the engineer Frederick Taylor published one of the earliest motivational theories. According to Taylor´s research, people worked purely for money this approach of paying workers by results was good for the business. The outcome was greater production but gave little opportunity, encouragement or time for employees to think for themselves or be creative in what they did. This limited people’s development and their use within the company
Peer recognition is the modern performance appraisal process also includes in the 360 degree process. This process is to award and acknowledge an individual for their outstanding performance in the company. This would be could be more non-financial factors based which can motivate employees to improve their output. One such factor may be the desire to serve people; others may be to improve personal skills or achieve promotion. Employees are more motivated if they feel content in their work. This often happens when their employer creates a good working environment where employees feel valued, generally through increased communication and being asked for their opinions. Employee motivation is also likely to be higher if the organisation invests in its staff through training and development. In turn this enhances their knowledge, skills and their sense of job satisfaction. Positive and negative reinforcement plays a vital role in motivation in the work place in the form of 1. Praise for good work
3. Constructive criticism
The organisations leader should always communicate the organisations culture, values and beliefs to the group members. Performance feed back
Team leaders should constantly provide feedback to members on: 1. How they are doing in their task and in the team
2. How results are progressing in comparison to plans and standards set out for them Feed back is essential both for motivational and for learning and development to adjust performance and bring it back in line where necessary to the original plan. The manager should motivate his or her team, both individually and collectively so that a productive work place is maintained and developed and at the same time employees derive satisfaction from their jobs. .
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