Human resource management is concerned with the management of people within organization. This department performs variety of activities from employeerecruitment, training and development to performance appraisal of an individual employee at workplace (Kozlowski and Salas, 2009). In this regard, four different scenarios have been taken to better understand the difference between personnel management and human resource management. Furthermore, report also describes the impact of the legal and regulatory framework on human resource management in different situations. At the end of the report, researcher would be able to identify the reasons for cessation of employment within company.
1.1 Difference between personal management and human resource management
Around the end of the 19th century, history of personnel management begins. Initially, it was framed for the purpose of providing protection to women and girls. The main aim behind developing HR policies was to improve working conditions. During the First World War, changes were raised and women were recruited in large numbers to fill the gaps left by men. After that, job of labour manager or employment manager came into exists and large departments were made to handle absence, recruitment, dismissal, queries over bonuses and other kinds of issues in a proper manner (Huemann, Keegan and Turner, 2007). With the changes arise in economy and global market, a way of recruiting, retaining and motivating employees were also changed. During the 1945s, the new term personal management was defined which integrated employment management and welfare work together. During the 1970s and 1980s, motivation and organizational behaviour, human resource management and employee commitment and motivation related theories were framed (Beattie, 2002). As per the given case, David wants to open a new Italian restaurant chain of 10 Italian restaurants called ‘Mamma Mia’ in London.
In this regard, human resource consultant has been appointed to support new business and deliver excellent customer service within stipulated time. In order to educate David about HRM policy, it is essential for HR consultant to provide clear differentiate between personal and human resource management (Dimba, 2010). By providing details to David, consultant will be able to aware about different HRM theories such as Taylor, Industrial psychology and changes come in the context of human resource management.
Table 1: Difference between personal management and human resource management
Traditional approach to manage people within organization.It focuses on personnel administration, employee welfare and labor relation.
Modern approach of managing people.
It focuses on personnel administration, employee welfare and labor relation.
It concentrates on acquisition, development, motivation and maintenance of human resources.
In this technique, job design is done on the basis of division of labor.
In HRM, job design function is done on the basis of group work and team work (Kozlowski and Salas, 2009).
Decisions are made by the top management by considering rules and regulations (Armstrong 2011).
Decisions are made through enhancing employee's participation and decentralization functions.
It is a routine function and focuses on increased production and satisfied employees.
HRM is a strategic function and it is concerned with all level of managers from top to bottom (Guest, 2007).
1.2 The function of HRM in contributing to organization purpose in given scenario
The major role of HR manager is to plan, develop, and administer policies. Human resource department is concerned with the people and their management. As per the given case scenario of Italian restaurant, it is clear that organization will require talented and skillful employees to carry out different activities in an appropriate manner. In this regard, newly appointed HR consultant can appoint people from different roles that can be enlisted as follow. Administration department of company will be able to perform record keeping, historical record of previous action and measure employee relations (Kinnie and et. al., 2006). Besides that, HR department of enterprise will perform various functions such as recruitment, safety, employee relations, compensation and benefits.
Despite of that, training and development function is also performed by HR manager of company to provide training to new employee at workplace.
Along with this, it is responsibility of HR consultant to carry out different human resource management activities such as reward management and performance management (planning, monitoring and recording) to grasp business opportunity in an appropriate manner. The success of recruiters and employment functions can be measured in term of recruiting number of talented employees (Torrington and et. al., 2009). In order to execute restaurant functions in a significant manner, it is necessary for HR consultant to provide training to its staff members because if they will be trained then they will motivate to give their best at workplace so that quality of services will offer to customers at right time at affordable price.
1.3 Roles and responsibilities of line managers of different restaurant
Restaurants are fast-paced businesses and to attain aim and objectives of HRM, it is necessary for line managers to perform their duties in a proper manner. Mamma Mia is a large Italian restaurant chain and it has large number of employees. It is responsibility of HR consultant to establish communication between different departments and employees (Tsui and Lai, 2009). In order to manage human capital, it is responsibility of line managers to perform selection, recruitment, training and coaching activities in an appropriate manner.
Figure 1: Roles of line managers
Besides that, employee engagement, appraisals and mentoring kinds of activities are also performed by HR consultant in Italian restaurant chain. Apart from this, line managers play crucial role to maintain discipline in the workplace, decide performance-related pay structure and assess performance and behavior of employees within organization (Youndt and et. al., 2006).
1.4 Analyze the impact of the legal and regulatory framework on human resource management on Italian restaurant
Recruitment and selection is very important part for any organization and transparency is required in this whole process to recruit best talented employees. In order to establish new restaurant, it is essential for HR manager to follow legal law and regulations developed by UK government (Jackson, Schuler and Werner, 2011).
Sex Discrimination Act 1995/97:
According to this law, it is responsibility of management of company to equal treat with their employees without any discrimination at workplace. Indirect and direction discrimination on the basis of the age, gender and their marital status are illegal in the UK. During the recruitment of new employees, HR consultant of Italian restaurant must be followed this regulation to decrease chance of discrimination at workplace (Edwards, Scott and Nambury, 2007).
National minimum wage act:
It is essential for organization to follow this legislation which emphasizes on that employee gets a minimum wage rate per hour (Kozlowski and Salas, 2009). By considering this law, HR consultant of Mamma Mia restaurants will be able to provide fair wages to their workforce as per the guidelines set by government.
Equal pay act 1970:
As per this law, it is responsibility of newly appointed HR consultant to ensure that there is no discrimination with the employees in employment on the basis of financial terms (Lo, 2015).
Data Protection Act 1998:
This act was developed to protect anyone to use personal information of individuals for their own usage. In addition, it can be helpful for organization to protect people's fundamental rights and freedoms.
2.1 Analyze the reasons for human resource planning in organizations
In the context of anticipate future business and environmental forces, human resource planning process is beneficial for organization. It provides facility of assessing requirement of manpower to perform organization activities in a significant manner. The main purpose of HRP is to assess need of human capital to carry out different business functions within stipulated time (Kopp, 2006). Besides that, in the context of starting up a new Social Care Home locally, new firm will require 4 managers and 20 support workers. In order to perform various activities such as marketing, recruitment, administration and finance activities, care home will require talented and skillful workforce. In this regard human resource planning process will be beneficial for company (Guest, 2007).
Despite of that, HRP will be required for organization in conducting different functions such as analyze enterprise objectives, forecasting demand and supply of human resource, estimating manpower gaps and formulating the human resource action plan etc.
2.2 Stages involved in planning human resource requirements
In order to ensure right candidates for right job, Social care home can consider human resource planning process that can be explored as follow.
Analyzing organization objectives:
The main aim objective of company is to recruit best and talented employees for providing quality of services to customers at affordable price.
Inventory of human capital:
At this stage, current number of employees, their capacity, performance and potentials are considered. For the purpose of conducting different operations, management of organization will require 4 managers and 20 support workers (Edwards, Scott and Nambury, 2007).
Forecasting demand and supply of human resource:
According to their job profile, by effective use of internal and external sources requirements are measured and fulfilled.
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Comparison of human resource demand and supply is required in order to identify actual position of workforce such as surplus or deficit of human resource (Kozlowski and Salas, 2009).
Formulating the HR action plan:
At this stage, action plan is implemented with considering needs of recruitment, training and interdepartmental transfer. Furthermore, technology change, labour market competition and changing nature of work has to be identified to implement human resource planning process at Social care home in a significant manner (Cattell, 2006).
2.3 Compare the recruitment and selection process in two organizations
To fill the vacant position, enterprise is built internal talent plan.
If employee will meet internally then training and development programme is developed.
Both internal and external sources are used for recruitment such as E-recruitment method, external vacancy board and employee referral and many more.
Appoint employee for recruitment
People who have interested in store job can direct approach store with their CV (Compton and et.al., 2009).
Proper list of candidates are prepared in which information about candidate select and waiting list are mentioned. If vacancy is still vacant then suitable candidate is call for further recruited (Analoui, 2002).
HR management of organization promotes career opportunities on its dedicated careers website.
Job analysis and description of new candidates (Kozlowski and Salas, 2009).
Asda’s online recruitment process to enhance speed and efficiency of recruitment. Effective use of social media (Jackson, Schuler and Werner, 2011)
Use Online recruitment system Shortlist appropriate candidates for
interviewat Asda Reality’ or ‘Asda Magic assessment center
Training and development is provided
Offering competitive salaries and benefits Opportunity to progress their career
2.4 Evaluate the effectiveness of the recruitment and selection techniques in two organizations
The effectiveness of recruitment and selection processes have followed in Tesco and Asda can be compared on the basis of different parameters.
Table 2: Comparison of recruitment and selection techniques in two organizations
Relay On Traditional Transparent
Recruipment Policies And Procedures
Standardized format More focus on experience rather than education
Highly depended on modern or online recruitment system High transparent.
Job Description and analysis
Both internal and external source of recruitment are used.
High priority is given to education and qualification of candidates.
Recruitment is done within enterprise.
Both internal and external source of recruitment are used.
High priority is given to external method and online method (Kinnie and et. al., 2006).
Different types of tests of candidates such as Psychological, psychometric, aptitude and practical tests are conducted (Dimba, 2010).
It was developed Asda Reality’ or ‘Asda Magic assessment center to conduct recruitment and selection processes.
3.1 Assess the link between motivational theory and reward
In order to run consultancy business in a proper manner, it is essential of management of company to integrate link between motivation theory and reward at workplace. In this regard, Maslow and Herzberg two factors theories can be considered (Huemann, Keegan and Turner, 2007). As per the Maslow theory, if basic needs of employees will fulfill and organization will provide monetary and non-monetary rewards to them on time then they will motivate to retain with the firm for long time period. By meeting esteem and self-actualization needs, motivation level of staff-members can be enhanced.
According to Herzberg two factors theory, by considering hygiene factors including reward, job security,salary andfringe benefits, management of consulting company will be able to encourage their employees to increase their contribution in organization growth (Kozlowski and Salas, 2009). It is clear that there is a direct relationship between motivation theories applied and reward provide to employee at workplace.
3.2 The process of job evaluation and other factors which determine pay
Job evaluation of an individual is highly depended on some dimensions which include work, knowledge, skills, work complexity, leadership and the complexity of the decision making role. These dimensions play a crucial role in the context of deciding salary of employee at workplace. In order to decide payment of individuals, target achieved by employees (sales, growth and financial) and benchmarking related factors are also considered by HR management of organization (Torrington and et. al., 2009). Effective procedure of job evaluation such as non-analytical (ranking and classification) and analytical (factor comparison and point method) can be used to prepare adequate payment system and meet expectation of staff-members in a proper manner.
3.3 Effectiveness of reward systems in different contexts
Reward systems are varying from industry to industry due to change come in working environments. This fact can be understood with help of taking example of reward system used in manufacturing companies and software development firm. In manufacturing sectors, organizations are highly focused on different factors such as child care, extended parental leave, career breaks, cafeteria incentive schemes and performance-related pay etc. Extrinsic reward can be provided such as bonuses, share, gifts, commission and target bonuses etc. to motivate employees to give their best at workplace (Bernardin and et. al., 2011). While for increasing productivity and effectiveness, HR management of company can use non-monetary or intrinsic methods such as recognition, promotion, trust, authority and more responsibilities.
On the other side, in software development field, more emphasizes are given to mortgage subsidies, relocation fees, company vehicles, extended parental leave and child care factors (Analoui, 2002). For example, in Microsoft during development of reward system, quality of management, length and size of project and individual person contribution in project and effective use of software artifacts criteria are considered.
3.4 Methods used for monitoring employee performance
In order to monitor performance of employees, organizations can use different strategies such as watch employee’s work, one to one conversion with individual, self-monitoring tools and review work in progress on a regular basis.
Figure 2: 360 degree method
(Source: Jackson, Schuler and Werner, 2011)
Along with these strategies, HR manager of companies can measure performance of staff-members in terms of monetary and non-monetary contributions, 360 degree assessment method, use whiteboards, dashboards, peer appraisals, observation and taking feedbacks from colleges, customers, suppliers and other departments (Lo, 2015). Checklist method can be used for the purpose of performance of an individual at workplace (Kozlowski and Salas, 2009). For example, to support existing clients, enterprise can develop performance plan that can be understood as follow.
Figure 3: Employee performance plan
(Source: Tsui and Lai, 2009)
4.1 Identify the reasons for cessation of employment with an organization
As per the present case scenario, client operates a medium-sized firm that produces seasonal greeting cards. He wants to understand reasons which are responsible for cessation of employment at workplace. Reducing budget, performance, attitude and behaviour, dismissal of employees in wrongful and unfair ways are the main reasons responsible for employee’s termination. In addition, an individual can terminate job due to resignation, retirement, termination of contract, and redeployment causes (Edwards, Scott and Nambury, 2007). In addition, employer may terminate the employment of an employeein some circumstances such as retrenchment and unsatisfactory performance or misconductat workplace. Apart from this, relationship with boss, overall corporate culture, bored and unchallenged by the work itself, relationship with co-workers and management recognition of employee job performance are the other causes which are responsible for cessation of employment with an enterprise (Kozlowski and Salas, 2009).
4.2 Employment exit procedures used by two organizations
In order to understand exit procedure, Tesco and Asda enterprise can be taken. HR management of Tesco is followed a particular procedure for all the employees leaving the organization on a permanent basis. Before the employees leave the organization, some steps are followed that can be enlisted as follow (Purcell and Hall, 2015). Exit interview, retaining methods (offering a better compensation and giving leave options), understanding the reason of leaving and return of property are the major steps followed in Tesco. In addition, pension arrangements on leaving are also provided to some employees (who are above the age of 50 -55) on the basis of their experience and contribution in firm. On the other side, HR department of Asda is emphasized on retaining staff if possible or make the exit a well-documented and easy process. Begin transfer of employee knowledge, document the employee’s key impressions, complete operational responsibilities and conduct a proper employee exit interview to solve their issues (Compton and et.al., 2009). Exit procedure follows in Asda is very simple as compared to Tesco and employee has to give 15 days’ notice period to the manager. Further, by making positive idea, manager will try to identify the reasons of resignation (Kozlowski and Salas, 2009).
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4.3 Examine the impact of the legal and regulatory framework on employment cessation arrangements
Law and regulatory frameworks in the UK directly affects the cessation of employees. Without any fair reason, any organization cannot terminate employee from employment (Tsui and Lai, 2009). If employer will not follow legislation developed by UK government then employees are free to take legal action against the employer. Despite of that discrimination on the basis of gender, age, sex and any other reasons are strictly prohibited in enterprises (Guest, 2007). Any company in UK cannot dismiss their staff on the basis of any discrimination at workplace. Along with this, no employees can be terminated on the basis of the physical conditions, pregnancy or other kinds of reasons. Hence, it can be said that legislations are framed by UK government influence cessation related decisions taken by organizations.
From the report, it can be concluded that human resource management can play an important role in achieving enterprise goal and retain best and talented employees with company for long time. Motivation theories and exit procedure are followed within enterprise can be helpful for firm in term of reducing employee turnover. In addition, legal framework is followed within company also influence performance of companies and staff-members associated with company. On the basis of the facts, it can be said that Human resource management play an important role in term of achieving growth and success in a significant manner.
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