Human Resource Essay
1.1 Distinguish between personnel management and human resource management: There is not a really big difference between Human Resource Management and Personnel Management, in actual fact “Human Resources” have largely replaced the term “Personnel Management”. Human Resource Management is basically much broader in scope than Personnel Management.
Personnel Management can be described as reactive. The reason why I would say this is because of the way they operate. An example of this would be that they respond to demands and concerns as they are presented. Personnel Management could also be seen as a independent way of managing. It is a sole responsibility of the organization.
On the other hand, Human Resource Management could be described in two ways: Strategic and Proactive. The reasons behind those there strategies are ongoing and they constantly work towards managing and developing an organizations workforce. It can be seen as Proactive because of their continuous development and functions to improve the company’s workforce. Human Resource Management is the type of Management where almost everybody
in Managing Position can play a part in Training and Development. They aim to have many different Managers in various departments with the necessary skills to handle employee tasks at hand.
When a difference between personnel management and human resources is recognized, human resources are described as much broader in scope than personnel management. Human resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization. A primary goal of human resources is to enable employees to work to a maximum level of efficiency.
1.2 The function of the human resource management in contributing to organizational purposes: Human Resources Management is an important asset to any business. It provides expertise in: Managing change and facilitating training and development
Recruitment, selection and employee relations
Pensions and benefits
Communicating with employees
The main functions of HRM are to employ people, to develop their resources and to utilizes maintain and compensate their services for the organization. Other HRM functions and activities are falling under the following categories: Firstly the organizational design, because acquiring HRM capability should begin at the origins and involves interactions between people, technology and the tasks to be performed in context with the organizations objectives, goals and strategic plan (e.g. job design, team building, restructuring etc.). Furthermore the staffing, which involves recruitment, employee orientation, selection, promotion and termination processes and the performance management including individual assessments, improving and measuring work performance. HRM is also concerned with employee and organizational development programs to maintain and improve employee skills as well as reward systems, benefits and compliance available for staff (also: laws, policies, health and safety).
1.3 The role and responsibilities of line managers in human resource management: Line managers are those managers to whom individual employees or teams directly report and who have responsibility to a higher level of management for those employees or teams.
The term ‘front-line managers’ is rather more specific and normally refers to line managers in the lower layers of the management hierarchy – that is, where the employees who report to them do not themselves have any managerial or supervisory responsibility. Front-line managers are often promoted from within and are unlikely to have formal management education.
An HR manager’s role is to ensure that business managers apply HR policies and procedures consistently through all business units. This helps to develop partnerships across different teams, which supports corporate aims and objectives. Typically the management responsibilities carried out by line managers might include: Day-to-day people management
Managing operational costs
Providing technical expertise
Organization of work allocation and rotes
Monitoring work processes
Dealing with customers/clients
Measuring operational performance.
1.4 The impact of the legal and regulatory framework on human resource management: The legal framework governing human resource development in organizations can be as important as other human resources laws, but it is seldom fully reviewed. Factors defining this framework are presented, followed by a model for identifying the domains of HRD for which laws and regulations can apply. Legal mandates for training, particularly in the areas of drugs, safety, and for certain occupational training, are examined. Rules governing apprenticeship programs are reviewed in this context, too. The features of intellectual property law, ethics, and privacy as they relate to the practice of human resource development are presented. Tax laws
and regulations also impact human resource development; those rules are reviewed. Laws covering employee compensation are then examined.
Legislation involved in recruitment:
There are various laws which must be considered during the recruitment process which includes legislation regarding discrimination and equality as well as other ethical issues. Employers could risk heavy penalties if they were found to be breaching the laws.
The Equality Act 2010 brings together a number of old legislations together into one law. This covers all aspects of discrimination in the workplace including age, sex, orientation, race and religion. It also includes gender realignment and pregnancy and maternity. Victimization occurs when an employer treats an employee unfairly because they have brought a claim under the Equality Act. The Sex discrimination act 1975/97 states that employees are protected from discrimination on the basis of their gender or sexuality under the Equality Act 2010. Protection from discrimination applies to recruitment; terms of employment; access to training and promotion; access to benefits, facilities/services and dismissal. Sex discrimination occurs when an employee or potential employee receives unfair treatment because of his/her sex.
2.1 The reasons for human resource planning in organizations: HR Planning involves gathering of information, making objectives, and making decisions to enable the organization achieve its objectives. Surprisingly, this aspect of HR is one of the most neglected in the HR field. When HR Planning is applied properly in the field of HR Management, it would assist to address the following questions: How many staff does the Organization have?
What type of employees as far as skills and abilities does the Company have? How should the Organization best utilize the available resources? How can the Company keep its employees?
HR planning makes the organization move and succeeds in the 21st Century that we are in. Human Resources Practitioners who prepare the HR Planning
program would assist the Organization to manage its staff strategically. The program assists to direct the actions of HR department.
The program does not assist the Organization only, but it will also facilitate the career planning of the employees and assist them to achieve the objectives as well. This augment motivation and the Organization would become a good place to work. HR Planning forms an important part of Management information system.
2.2 The stages involved in planning human resource requirements: Human resource planning is a systematic analysis of HR needs to ensure the availability of the correct number of employees with the necessary skills at the right time. The increased competitive nature of business that makes workforce flexibility – an imperative need has raised the importance of human resource planning.
The steps for effective HR planning encompass demand forecasting, supply forecasting, audit, reconciliation or affecting a demand-supply fit, and control.
The steps to HR Planning start with forecasting the number and type of employees needed in the future. This requires a good understanding of the internal and external environment of the enterprise. The major aspects of the internal environment that affect HR Planning include short-term and long-term organizational plans and strategies, and the status of the organization’s human resources.
Inventory Analysis and Supply Forecasting
The second step in HR planning is inventory analysis or keeping track of the current employees in the organization to determine the extent to which this meets the forecast. The HR inventory analysis entails Skill inventory, or keeping track of the number of employees, and the age, locations, qualifications, and skills of each employee Forecasting resignations and recruitment and understanding their impact on the skill inventory levels
Forecasting leaves, transfers, dismissals, sabbaticals, prolonged illness, and deaths of employees and their impact on inventory levels
The third step in HR planning is audit, which includes reconciling inventory with forecast through a systematic analysis of demand and supply forecasting, and identifying areas where shortages and surpluses exist. The audit phase also involves, among other tasks: Identifying reasons for resignations and devise retention plans to retain key talent, if required Review the effectiveness of the recruitment activities, training and development initiatives, career planning exercises, succession planning, and other interventions
The next step in HR Planning is developing action plans to bridge the gap between forecast and supply. The various alternatives include: Strategy to recruit new employees
Retrenchment of downsizing strategy to shed excess workforce Training and Development plans to right-size the workforce
Career Planning and Succession Planning to identify key personnel Changes in work regulations such as timings, overtime policy and the like Control
The last step in HR Planning is monitoring and controlling implementation of the HR plan. This entails ensuring implementation proceeds in accordance with the plan and taking timely course corrections. The external and internal environment of an enterprise always remains in a state of flux, and a good HR Plan incorporates mechanisms to make timely revisions in accordance with such changes.
2.3 Compare the recruitment and selection process in two organizations: The process of recruitment & selection deals with the attainment of organizational objectives by selecting the most appropriate candidate. Internet has become the most effective method of recruitment as it saves time and cost of the Recruiters and the Candidates too.
In order to achieve the objectives of the organization the HR also follow some practices like Ability Tests, Behavior based interviews and also analyze the candidate’s knowledge required for the concerned job. Initially, it involves short listing of those candidates who are eligible for the mentioned profile. Then, the candidate is required to present his ability and knowledge by undertaking some tests which are based to analyze the knowledge of the candidate. Then the candidates are required to take interview on the basis of which the skills of the candidates are evaluated. Then after this stage, HR selects those candidates whom he thinks will prove to be beneficial for the organization.
Recruitment and Selection Process of Tesco:
Tesco first looks at its internal Talent Plan to fill a vacancy. This is a process that lists current employees looking for a move, either at the same level or on promotion. If there are no suitable people in this Talent Plan or developing on the internal management development program, Options, Tesco advertises the post internally on its intranet for two weeks.
For external recruitment, Tesco advertises vacancies via the Tesco website www.tesco-careers.com or through vacancy boards in stores. Applications are made online for managerial positions. The chosen applicants have an interview followed by attendance at an assessment centre for the final stage of the selection process.
Selection involves choosing the most suitable people from those that apply for a vacancy, whilst keeping to employment laws and regulations. Screening candidates is a very important part of the selection process. This ensures that those selected for interview have the best fit with the job requirements.
In the first stages of screening, Tesco selectors will look carefully at each applicant’s curriculum vitae (CV). The CV summarizes the candidate’s education and job history to date. A well-written and positive CV helps Tesco to assess whether an applicant matches the person specification for the job.
A candidate who passes screening attends an assessment centre. The assessment centers take place in store and are run by managers. They help to provide consistency in the selection process. Applicants are given various exercises, including team-working activities or problem-solving exercises. These involve examples of problems they might have to deal with at work.
Recruitment and Selection Process of British Airways:
“Recruitment is closely monitored to ensure that it is only authorized if the Company is confident that the business need is critical”
So, it can be concluded that BA is following a balanced combination of both models in order to maintain efficiency and cost effectiveness by carefully hiring and training employees and on the other hand self-satisfaction and benefit of workers by using a humanistic approach.
British Airway’s focus on establishment of effective recruitment and selection methods and more importantly on training and development of employees can be understood by this increase of 5% on the employee costs.
Townley argues that “organizations are increasingly likely to focus on more general attributes and values than narrow task-based criteria.” Barclay explains the fitness of organizations are expressed in terms of personality, attributes, flexibility, commitment and goals rather than the ability to do specific job for which person is being recruited. Torrington and Hall termed these general but valuable attributes as organizational criteria. It now depends on the nature of organization that what attributes are much valuable for them than other. In case of British Airways, the massiveness and expanding nature of organization requires candidates with flexibility and adoptability and ‘utmost professionalism’.
2.4 The effectiveness of the recruitment and selection techniques in two organizations: Recruiting staff is a very costly exercise. It is also an essential part of any business and it pays to do it properly. When organizations choose the right people for the job, train them well and treat
them appropriately, these people not only produce good results but also tend to stay with the organization longer. In such circumstances, the organization’s initial and ongoing investment in them is well rewarded.
An organization may have all of the latest technology and the best physical resources, but if it does not have the right people it will struggle to achieve the results it requires. This is true across the whole spectrum of business activity e.g. schools, hospitals, legal practices, restaurants, airlines, and diesel engine manufacturers.
Cummins is well aware of the importance of ‘getting it right’. Poor choices at the recruitment stage can prove expensive. The company needs to be sure of a candidate’s technical competence. For example, if an engineer designs a component that fails and has to be re-engineered, the company loses both time and money and may incur penalty charges on any delay in fulfilling particular contracts. Time and money spent in recruiting that particular employee will have proved expensive and wasteful whilst a better candidate may not only have ‘got away’ but also gone to a competitor.
3.1 The link between motivational theory and reward:
Motivation in simple words may be understood as the set of forces that cause people to behave in certain ways. It is a process that starts with a physiological deficiency or need that activities behavior or a drive that is aimed at a goal or an incentive.
The concept of motivation occupies a central place in the discipline of Organizational Behavior. It is a concept, which has received the maximum attention from the academicians and researchers alike. Since a motivated employee is highly productive and highly quality oriented, the managers are also interested the concept of motivation.
Most people understand the concept of intrinsic satisfaction or intrinsic motivation, i.e. when an activity is satisfying or pleasurable in and of itself. Naturally, these activities are things we like and want to do. For most of us, intrinsically enjoyable activities are things like eating, resting, laughing, playing games, winning, creating, seeing and hearing beautiful things and people, being held lovingly, having sex, and so on. To do these things we don’t need to be paid, applauded, cheered, thanked, respected, or anything–commonly we do them for the good feelings we automatically and naturally get from the activity. Intrinsic rewards also involve pleasurable internal feelings or thoughts, like feeling proud or having a sense of mastery following studying hard and succeeding in a class.
Money is understood to be powerful motivator for more than one reason. In the first place, money is fundamental for completion of a task. The employee takes pay as the reward for his or her work, and the employer views it as the price for using the services of the employee. Second, as a medium of exchange, third, money is one of the hygiene factors, and improving maintenance factors is the first step in efforts directed towards motivation. Fourth, money also performs the function of a score card by which employees assess the value that the organization places on their services and by which employees can compare their values to others. Fifth, reinforcement and expectancy theories attest to the value of money as a motivator.
Sixth, money acts as punctuation in one’s life. It is an attention getting and effect producing mechanism. Money has therefore tremendous importance in influencing employee behavior. Seventh, money is easily vulnerable to manipulation. Finally, money will be a powerful motivator for a person who is tense and anxious about lack o money. But behavioral scientists think otherwise. They downgrade monetary rewards as a motivator. They prefer, instead, other techniques such as challenging jobs, goals, participation in decision-making and other non-monetary rewards for motivating employees. The financial rewards are basically of three types: Profit sharing
Job evaluation; and
3.2 The process of job evaluation and other factors determining pay: Evaluating Jobs
The job evaluation process establishes the relative value of jobs throughout the University. There are two steps involved in this process: Job Descriptions – Each position has a job description that identifies the job’s major responsibilities, decision making, accountability, qualifications, and organizational relationships. Job Evaluation – this step measures three major factors: knowledge required for effective performance; the complexity of the decision making role; and the authority or control invested within the position.
Salary surveys are another of the tools used by Compensation Services to compare Brown’s staff salaries and compensation policies with a cross-section of other employers. Brown participates in multiple surveys to capture information about the breadth of positions represented on campus. Compensation Services analyzes this survey data and prepares a report each fall recommending pay practices for the next fiscal year.
In formulating salary offers for employees in new positions, the following considerations are taken into account: departmental budget; external equity; internal equity and relevant education, experience and skills. Routinely, salary offers fall within the first quartile of the applicable salary range for the position’s grade level. No offer or promise of an offer can be made without authorization by Human Resources. External Equity is the term used to describe comparative salaries paid in the marketplace. Compensation Services participates in various salary surveys to determine competitive pay practices. Internal Equity is the term used to describe the comparison of salaries paid to employees working in the same grade or level. Department head level positions and above: national markets
Professional and administrative positions below department head level: regional markets Support staff and entry level exempt positions: local markets
3.3 The effectiveness of reward systems in different contexts: A corporate culture that rewards excellence motivates employees to do their best. An employee wants to know that his employer recognizes the skills he brings to
the workplace and appreciates his contributions on the job. Having a motivation and reward system in place for your employees acknowledges their accomplishments and demonstrates their importance to the organization.
There are a number of reasons why recognition may be as important as, or even more important than, money as a reward for today’s employees. One of the most obvious is that enterprises typically have pay systems that are designed to review performance and give incentive payments only once or twice a year. So if someone does an outstanding good job in July, the manager may be unable to give the person a financial reward until after the annual performance review in December. Nonfinancial rewards, on the other hand, such as genuine social recognition, can be given at any time. It is these more frequent nonfinancial rewards that have a big impact on employee productivity and quality service behaviors.
Research shows that there are many types of recognition that can lead to enhanced performance and loyalty. One of these that is receiving increased attention is recognition of the fact that many employees have work and family responsibilities and when the organization helps them deal with these obligations, loyalty increases.
3.4 The methods organizations use to monitor employee performance: Great employee performance is a key to business’s success. Employees are the first line of many businesses’ offense and their performance makes a direct impression on the customers. Customers are the primary source of business’s income and normally factor their overall experience at the establishment into whether they may return or become a regular customer. This is why monitoring employee’s performance is invaluable. There are some techniques to monitor employee performance: Planning employee’s job tasks in advance
Consistently supervising and evaluating employee’s performance Providing feedback by administering
Training employee that focus on improving positive work flow, time management, and introducing new skills and responsibilities Identifying best employee and use him/her as a model for current and future employees
4.1 The reasons for cessation of employment with an organization: Many jobs will have a probation period lasting several months for new employees. During this period, the employer can often terminate the employment of an employee without giving much of a reason or continuous benefits. The word “termination” covers both employees leaving the company voluntarily and the employer letting an employee go, according to Small Business Notes, but it is typically used to refer to involuntary termination. There can be numerous reasons why an employer decides to terminate an employee early. The reasons behind cessation of employment are:
Needs of the Business
The business may discover that the job position the employee is currently working is not needed in order to operate the business. While some companies will offer the employee another position in the company, smaller businesses may not have other positions available or may not have the budget to keep an extra employee on the team.
Poor Employee Performance
The employer may terminate an employee’s employment because of small details pertaining to poor employee performance. For example, employee tardiness, poor performance on projects and tasks, general incompetence, lack of contributions in teamwork settings, or working slowly and missing deadlines.
Violation of Company Policies
An employer may also terminate the employment of a new employee if the worker has violated or broken company rules and regulations. Examples of these include lying about education or experience on the resume, being negligent when working with machinery or other employees, violating strict company rules and policies, harassing other workers, violation of safety regulations, stealing from the company, using unauthorized property or tools, damaging company property, or sleeping on the job.
Closing of the Business
The business may also terminate an employee because the business is closing, being sold or going bankrupt. The employer may not have an option to terminate the employees, but as with the first section, this termination has nothing to do with the employee’s capabilities, performance level or skills.
4.2 The employment exit procedures used by two organizations: The purpose of an employee exit policy is to gain the perspective of an employee during his time with a company and to document the reason he decided to leave. The policy helps companies learn how they can improve upon employment practices and the work environment, as well as identify problem areas within the company.
When an employee resigns from her position, she should submit a written letter of intent to her supervisor or human resources department at least two weeks prior to the date she intends to resign, per the company’s policies and procedures..
Before an employee’s last day, the company’s human resources office should conduct an exit interview in person. Exit interviews conducted over the telephone are appropriate for employees who do not live in the area or are not able to meet in person.
After an employee submits a letter of resignation, her supervisor may provide her with a checklist of activities to complete before her last day of work. Out-processing procedures an employee needs to complete include providing an employer with a forwarding address and surrendering company keys, key cards, computer passwords, company credit cards, identification badges and the employee handbook.
All information collected during an employee’s exit, including details regarding the exit interview, should remain confidential. Moreover, the company should not hold any information the employee provides during the exit process against the individual.
4.3 The impact of the legal and regulatory framework on employment cessation arrangements: Termination of an employment relationship is one of the most important institutes of labor law because it closely affects both parties in their contractual relationship. Therefore, it is necessary for the legal regulation to comply with the fundamental principles governing labor law and expressed both in international instruments and national regulation. These fundamental principles can be considered as follows: The right to work together with the protection of stability of employment Prohibition of discrimination
Freedom of work together with the prohibition of forced labor
There are many reasons today for owner-managers of businesses to look at the legal structure of their firms. The changing tax laws and fluctuating availability of capital are just two situations which require alert mangers to review what legal structures best meet their needs. Going into business requires strategy and planning. Most important, to be successful in business, you must understand the rules (or the laws) by which a company must conduct business. All planning and strategy must consider the multitude of local, state, and federal laws and business practices that govern the operation of the business. Before entering the complex arena of business and the myriad of laws which influence the freedom of choice and mobility of action, one must first choose the legal structure for the business that will best suit the needs of the particular business.
HRM has significantly increased the need of a department that can proportionate the motivational factors once required to do a job in a manner where everything is under a specific control. Creative, self-controlled and motivated are the traits every company nowadays should have. Thorough knowledge of business as well has of human resource functions, the ability of an organization to overcome and lead a change, problem solving techniques and to influence other organizations in the competition can be greatly controlled. Starting from the very core of it, success of any organization relies on the ability to manage a vast majority having various talents that can innovate and revolutionize the whole concept of workforce. With the mixture of talents of different cultural backgrounds, genders, ages and lifestyles, an organization can respond better to business opportunities more rapidly and creatively especially in the global arena which must be one of the important organizational goals to be attained. More importantly, if the organizational environment does not support variety broadly, one risks losing talent to competitors
In today’s workplace, the environment is constantly evolving. Many of the ideas that will be driven in HR firms will be based upon working to adapt to these changes while being proactive as well. This is the eventuality that must be confronted while trying to maintain a balance work life for employees and manages alike.
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