Unit 21: Human Resource Management

Unit 21: Human Resource Management

Task 1
What is Human Resource Management?
 According to R. Roosevelt Thomas Jr. Human Resource Management can be describes as: “a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques.”
What is motivation?
Motivation can be described as internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal.

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Reward management involves the analysis and effective control of employee remuneration. It covers salary and all benefits. Reward management assesses the nature and the extent of rewards and the manner in which they are delivered.

There are few key points that define the difference between PM and HRM

Difference between Personnel management and Human Resource management
Personnel management is a traditional approach of managing people in the organization.
Human resource management is a modern approach of managing people and their strengths in the organization.
Personnel management focuses on personnel administration, employee welfare and labour relation.
Human resource management focuses on acquisition, development, motivation and maintenance of human resources in the organization.
Personnel management assumes people as an input for achieving desired output.
Human resource management assumes people as an important and valuable resource for achieving desired output.
Under personnel management, personnel function is undertaken for employee's satisfaction.
Under human resource management, administrative function is undertaken for goal achievement.
Under personnel management, job design is done on the basis of division of labour.
Under human resource management, job design function is done on the basis of group work/team work.
Under personnel management, employees are provided with less training and development opportunities.
Under human resource management, employees are provided with more training and development opportunities.
In personnel management, decisions are made by the top management as per the rules and regulation of the organization.
In human resource management, decisions are made collectively after considering employee's participation, authority, decentralization, competitive environment etc.
Personnel management focuses on increased production and satisfied employees.
Human resource management focuses on effectiveness, culture, productivity and employee's participation.
Personnel management is concerned with personnel manager.
Human resource management is concerned with all level of managers from top to bottom.
Personnel management is a routine function.
Human resource management is a strategic function.

Tesco is the largest retailer in UK as well as the third biggest in the world in termsof revenue was founded in 1919 by Jack Cohen. In 1924 the brand Tesco was firststarted its journey and in 1932 it became a private limited company. Tesco is the biggest private sector employer in the UK. The company has more than 360,000 employees worldwide. According to Michael Armstrong - „A strategic and coherent approach to the management of an organization’smost valued assets – the people working there who individually and collectively contribute to theachievement of its objectives.‟ Therefore, some of the key functions on Tesco’s HRM are: recruitment, selection, training and development, and reward.

Recruitment can be perceived as a positive activity generating an optimum number of job-seekers, selection is inherently negative in that it will probably involve rejection of applicants.
In their issue “Business Case Studies” The Times 100 are stating that: “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.For external recruitment, Tesco advertises vacancies via the Tesco website www.tesco-careers.com or through vacancy boards in stores.Tesco makes it easy for applicants to find out about available jobs and has a simple application process.

 According to The Times 100 selection process 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.

Tesco’s slogan is “Every Little Helps”, and they claim that: “our commitment to our people is that we will give them the opportunity to get on so that they are able to get the training they need to do their job and to develop their careers at Tesco.We want Tesco to be a great place to work for all our colleagues. “

Tesco is offering  number of ways support their people to achieve this, be it through an Options Development Programme, offering an Apprenticeship or encouraging the studying for a qualification whilst at work. Their management is stating: “we’ve trained ourselves to be obsessed... about training. At any one time we've got 7,000 colleagues on development programmes specifically designed to help them gain the experience and skills they need to move on to the next Tesco challenge.”

Tesco’s management believe that their staff are unique and have diverse lifestyle outside of work. They encourage and motivate their people offering number of rewards such as: flexible working hours, discount gym membership, competitive salaries, free or reduced rate health in insurance, staff discount, company shares are also available.

The roles and responsibilities of HMR managers in Tesco’s are crucial to the organisation. The organizational objective of Tesco is very definitely based on human resource management because it has adopted a strategy that puts its employees directly at the centre of things, which has contributed to it being the United Kingdom's number one retailer with an annual turnover of £2 billion, even in the midst of an economic slump that has other retailers closing their doors.
Judith Nelson is the personnel director for Tesco in the UK and Ireland, but that is not how she thinks of herself. “I tend to view myself as a general manager who happens to focus on people,” she said. “I am not a professional specialist. I don’t have a personnel degree. I am a generalist who has worked her way up through the business.”
She began 17 years ago on Tesco’s graduate scheme — despite having a hospitality qualification rather than a degree — and moved up through a variety of HR roles in Britain and abroad. “It helps me to say to myself, ‘okay, you are personnel director, but you also have a contribution to make on property, on online strategy and so forth’. That way, people see you as a general manager as well as a personnel manager and you get real credibility with your board colleagues.”
Business strategy and people management are entwined in a company that relies on its 300,000 workers to shape their customers’ experience, said Nelson. “The people agenda is critical to everything we want to do . . . The service given by our employees to our customers [governs] the performance of our business.”
As one of world’s largest retail organisations, Tesco must comply with a broad range of industry regulations.
The legal and regulatory requirements with regards to HRM in Tesco include the following:
Employees should not be discriminated on any basis (race, ethnicity, religion and gender) and should be given equal opportunity. The organisation is obliged to provide its employees with a safe, healthy and clean working environment. Tesco also follows the appropriate policy to prevent sexual harassment within the premises of the organization. They are claiming to be ensuring that both men and women are paid equally (if they are doing the same job).Tesco also compliance with child labours laws (i.e. not hiring under age employees who are not allowed by the government to work).Another compliance with the legal requirements is protecting the investment of the employees in the form of pension schemes. Tesco is allowing trade unions to operate in the organization and establishing their operating procedures. Another aspect of their regulatory requirements is preventing forced retirements. Main aspect in the organization is the dismissal on unfair grounds. Two other major legal requirements that organisation is enforcing are the Data Protection Act 1998 and protecting female workers on maternity leave.

Task Two
Former COO of GE, Lawrence Bossidy ones said: “I am convinced that nothing we do is more important than hiring and developing people. At the end of the day you bet on people, not on strategies.” And as one of the smartest men on earth Steve Jobs said in his book You need to have a collaborative hiring process.”
As we are monitoring in our case study of Tesco recruiting, training and developing their personnel is important part of their organisational strategy.  There are few stages that need to be followed in the recruitment process: Defining the role, attracting applications, managing the application and selection process, making the appointment. Recruitment can be made internally in the organisation end external.
Human resource planning in an organization is essential for a number of reasons.  Employees are the most important asset of every business; therefore it is vital appropriate planning to be done to have the right number of employees with the required skills and experience. Efficient human resource planning can help a business to achieve its operational objectives which take part in accomplishing the corporate goals of the business. Also, through succession planning, the human resource department identifies key personnel who are competent and have the ability to take key positions in the future. This this gives solid ground for the future of the business. In addition, human resource planning also helps in designing an effective performance management system which ensures that the performances of employees are up to the mark. That’s why many organisations are using the reward management system, performance appraisal, motivation, etc.   In the absence of such a system, poor performances cannot be measured and the employer would continue their payroll which could lead to wastage of resources. Human Resource Planning is essential because of frequent staff turnover which is unavoidable in every organisation. Staff turnover arises because of number of different reasons such as: discharges, marriages, promotion, transfer etc. These factors cause a constant gap in the staff turnover flow in the organisation, which increases the recruitment cost. Therefore, low staff turnover is very important for the organisation.
Human resource planning is very important and is essential part of achieving the organisation’s goals and strategies.

HR planning is a continuous process which starts with identification of HR objectives, move through analysis of manpower resources and ends at appraisal of HR planning. Following are the major steps involved in human resource planning:

1. Assessing Human Resources
The assessment of HR begins with environmental analysis, under which the external (PEST) and internal (objectives, resources and structure) are analysed to assess the currently available HR inventory level.
2. Demand Forecasting
HR forecasting is the process of estimating demand for and supply of HR in an organization. Demand forecasting is a process of determining future needs for HR in terms of quantity and quality. It is done to meet the future personnel requirements of the organization to achieve the desired level of output
3. Supply Forecasting
Supply is another side of human resource assessment. It is concerned with the estimation of supply of manpower given the analysis of current resource and future availability of human resource in the organization. It estimates the future sources of HR that are likely to be available from within an outside the organization.
4. Matching Demand and Supply
It is another step of human resource planning. It is concerned with bringing the forecast of future demand and supply of HR.The matching process refers to bring demand and supply in an equilibrium position so that shortages and over staffing position will be solved. In case of shortages an organization has to hire more required number of employees.
5. Action Plan
It is the last phase of human resource planning which is concerned with surplus and shortages of human resource. Under it, the HR plan is executed through the designation of different HR activities. This step is followed by control and evaluation of performance of HR to check whether the HR planning matches the HR objectives and policies. This action plan should be updated according to change in time and conditions.

As two of the leading companies of the industry Tesco and Sainsbury’s have similar recruitment and selection process.

Recruitment Strategy
Tesco Recruitment involves attracting the right standard of applicants to apply for vacancies. Tesco advertises jobs in different ways. The process varies depending on the job available.
Sainsbury’s however uses two approaches for their recruitment processes which are: internal recruitment and external recruitment.

Internal Recruitment
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 programme, Options, Tesco advertises the post internally on its intranet for two weeks.
Sainsbury’s internal recruitment involves the recruitment team first looking at the Sainsbury Internal Talent Programme ( SITP). This Programme allow all current employee of Sainsbury who are either looking for move within the same department or seeking a more higher level position in form of promotion.However, if there are no positive responses from any employee under the Sainsbury Internal Talent Programme, the vacancies are now officially advertised on the intranet for the entire employee to see and apply. During this stage, there is a timestamp such as submission of application deadline date.

External recruitment
For external recruitment, Tesco advertises vacancies via the Tesco website www.tesco-careers.comor through vacancy boards in stores. Applications are made online for managerial positions.For harder-to-fill or more specialist jobs Tesco advertises externally:
• Through its website and offline media
• Through television and radio
• By placing advertisements on Google or in magazines such as The Appointment Journal.
Sainsbury’s external recruitment   process to advertise their vacancies most of which are done on the internet and Sainsbury’s website for their managerial position   while others are done using various other means such as advertising on local papers, job centre and in their stores.

Recruitment Policy

People interested in store-based jobs with Tesco can approach stores with their CV or register though Jobcentre Plus. The store prepares a waiting list of people applying in this way and calls them in as jobs become available.
Sainsbury's generally operate a strict no CV policy. This means that if you go to your nearest store and give them a copy of your resume, you are unlikely to hear from them ever again.
Instead, Sainsbury's handle recruitment through their website. All vacancies at their supermarkets, store support centres, logistics depots, pharmacies and convenience stores are listed there as soon as they become available.

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. A candidate who passes screening attends an assessment centre. The assessment centres take place in store and are run by managers. Applicants are given various exercises, including team-working activities or problem-solving exercises. Candidates approved by the internal assessment centres then have an interview. Line managers for the job on offer take part in the interview to make sure that the candidate fits the job requirement.
The selection process involves the Sainsbury’s recruitment selector(s) carefully studying each applicant Curriculum Vitae (CV) to further determine their suitability for the position. Successful candidate at this stage are then invited for interviews,
The interview takes two stages:
Stage one is: Customer Service, Attention to Detail, Mathematics and Values Test
Stage two is: Motivation questionnaire
Successful applicants will be asked to attend two induction days. If the candidates are not successful they will be sent an official letter to inform them that.

Using the above answer evaluate the effectiveness if the recruitment and selection process of the organisations.
The recruitment process has been developed to ensure that organizations have “the right people in the right place at the right time doing the right things”. Therefore, both the recruitment process and the skill of the recruiters need to be assessed on an annual basis. To do so, establishing meaningful metrics are key. As published in the Winnipeg Sun.            One of the most frequent comments in today’s workplace is that “people are our most important resource.”
Having said that selecting and recruiting the right personnel in the most efficient and cost effective way is crucial for achieving the business strategies and organisational goals. As we saw in our case studies both companies are highly focused on recruiting the right personnel for their organisations, which makes the two of the leaders in the industry.

Task 3
To support its growth, Tesco needs staff that are motivated, flexible and well-trained and who recognise customer needs. Tesco recognises that employee motivation is important for the continued growth of the company.
“Motivation is the process by which the behaviour of an individual is influenced by others, through their power to offer or withhold satisfaction of the individual’s needs and goals” (BPP Learning Media, 2010).
Reward is something that workers achieve during their job. It can be financial when the company pays for their performance and it can be non-financial which in this case means that the company rewards employees by promotion, achievement and praise.
“Maslow puts forward a theory that there are five levels of human needs which employees need to have fulfilled at work” (Mullins, 2005).
Maslow mentions in his theory that managers following this theory deflect their attentiveness to offering complementary pleasing relationships, more attractive work, and more opportunities for self-fulfilment.
Herzberg on the other hand in his theory suggests that there are two basic needs of individuals such as hygiene factors (environmental factors) and motivation factors. Managers following Herzberg’s theory reject money as a motivator and pay attention to supplying more job enhancements.
According to McGregor’s theory, managers may follow two different theories which is theory X and theory. However, McClelland focuses interest on providing employees with the capability to persuade their needs for success, power, and relationship.
Managers may use positive motivation techniques to persuade employees to create good quality job. Some managers may use negative motivation techniques to encourage employees and stop them from bad manners. However, companies reward their employees with both touchable products, as well as admire.
For example: Tesco uses two motivation theories – Maslow’s and Herzberg’s. Tesco uses Maslow’s theory because it suggests the company if they achieve one level then it motivates them to achieve the next one. Also Tesco aims to motivate its staff both by paying interest to sanitation factors and by enabling satisfiers. For example, Tesco motivates its staff by good communication, by giving responsibility and involving employees in decision making. Tesco allows the staffs to be part of the talks on pay rises. This shows credit of the work that staff does and rewards them.
In Tesco, they reward staff for their works because it keeps motivating them at work and will carry on applying different motivation theories at work. Monetary reward uses by Tesco in a way of getting employees to welcome the complete value of their benefits package. Tesco also follows pension system. They also reward employees by giving them extra benefits such as car insurance and private medical insurance, by special offers and discounts.

Job evaluation is the process of analysing and assessing various jobs systematically to ascertain their relative worth in an organization.Job evaluation develops a plan for comparing jobs in terms of those things the organization considers important determinants of job worth. This process involves a number of steps that will be briefly stated here and then discussed more fully.
·         Job Analysis
·         Compensable Factors
·         Developing the Method
·         Job Structure
·         Wage Structure
Properly introduced and maintained, job evaluation can help lay the foundation of fair and orderly pay structures.
Common determents for pay are education and experience. A person with Master’s degree is more likely to get a better pay than a person with high school diploma. Same goes for experience – the more the better. Large factor determining pay is location. A person in London or New York should be making much larger wage than person in Manchester or Texas. Other factors determining pay are: government legislation, particularly wage legislation such as minimum wage; the level of demand that exists for the type of labour; the number of others who have similar or better skills who can compete for the job; the state of the economy; the effectiveness and impact of unions on the negotiated wage; profitability and success of the organization for which you work; chance – being at the right place at the right time or the wrong place at the wrong time.

Organisations use a range of rewards and benefits, both tangible and intangible, to recognise the efforts of its employees towards the business. These can be in the form of; incentives, performance related pay, bonuses, overtime pay, career opportunities, holidays and flexible working hours. Employee rewards are beneficial as they act as a motivator for employee and increase their loyalty to the company. They benefit the employer as a more motivated work force means increased productivity which helps the company to reach its goals. Reward schemes are beneficial to employees and employers as they boost motivation and thus increase productivity and profitability. Rewards can come in many forms such as monetary or career opportunities depending on what they are capable of and what the employee needs. Rewards can increase employee loyalty and reduce staff turnover, saving the company money. Rewards and benefits are most effective when they are used properly to recognise the efforts of valuable employees, if they are not used properly they can be ineffective and a waste of company resources.

There are five ways to monitor employee performance.
Number one: Watch employees work. One of the most effective ways to monitor an employee's performance is with your own eyes. Watching an employee perform a task will tell you more much about that employee's performance than just about any batch of data removed from the action.
The second way to monitor performance is ask for an account. In every one-on-one conversation with every employee, you need to be asking for an account of what that person has done since your last conversation: "What concrete actions did you take? Did you meet the clearly spelled-out expectations?" Then you need to listen very carefully, make judgments, and ask more probing questions.
The third way to monitor performance is to ask employees to use self-monitoring tools to help you keep track of their actions. They can use project plans, checklists, and activity logs. Employees can monitor whether they are meeting goals and deadlines laid out in a project plan, they can make notations within a checklist as they are accomplishing tasks, they can report to you at regular intervals.
The fourth way to monitor performance is to review work in progress on a regular basis. That means you need to check your employees' work carefully in process along the way. If an employee is not responsible for producing a tangible end product, then watching that employee work is the same thing as reviewing the work in progress. But if she is responsible for an end product, then you can spot-check the work that person is doing on an ongoing basis
The fifth way to monitor performance is the one that most managers rely on inadvertently: hearsay. Well I call it asking around a little because you are going to get hearsay about how your employees are doing. The question is: do you become proactive about it? Do you go out and gather intelligence? Ask customers, vendors, co-workers, ask other managers about the interactions they're having with your employees.

Task 4
Termination occurs when an employer or employee ends an employee's employment with a particular employer. Termination can be voluntary or involuntary depending on the circumstances.

Voluntary Termination
In a voluntary termination, an employee resigns from his or her job. Resignations occur for a variety of reasons that include: a new job, a spouse's acceptance of a new job in a distant location, returning to school, and retirement. With valued employees, employers expend efforts on employee retention to limit preventable turnover.
Involuntary Termination
In an involuntary termination, an employer fires the employee or removes the employee from his or her job. An involuntary termination is usually the result of an employer's dissatisfaction with an employee or an economic downturn. Reasons for involuntary termination range from poor performance to attendance problems to violent behaviour.
Involuntary termination, such as a layoff, can also occur because an employer lacks the financial resources to continue an employment relationship. Other events that trigger termination can include mergers and acquisitions, a company relocation, and job redundancy.

Leaving Tesco
·         Retirement
·         Notice Periods
·         Pre-retirement scheme
·         Leaver pay
·         Overpayments
·         Debt recovery for leavers
·         Returning company property
·         References for leavers

Leaving Sainsbury’s

·         Giving the employee notice of their termination with at least one other witness. When possible, hold a private meeting to perform the firing activity.
·         Immediately disable the terminated employee's network access
·         Retrieve any keys, smart cards, IDs, or other physical access devices
·         Perform an exit interview
·         Escort the ex-employee off the premises
·         Arrange for the return of any off-site equipment that the ex-employee may possess, such as notebooks, documentation, PDAs, etc.
·         Notify human resources of the termination and have them arrange the final pay check including vacation pay. HR should also discuss the cessation or transfer

The decision to terminate an individual’s employment carries with it the risk of a possible legal challenge. Depending upon an employer’s policies or whether an employee has an employment contract, an employee may, for example, have a breach of contract or wrongful discharge claim
Possible Claims of Discrimination upon Employment Termination
All employers need to be cognizant of possible discrimination claims arising from employment termination. To prevail, the former employee would have to prove that he or she was terminated, at least in part, because his or her employee’s protected status (gender, religion, race, national origin, age, disability, etc.).
In addition, discharged employees could claim that their former employer defamed them by: making false, disparaging comments about them to co-workers or other parties; treated them in a manner intended to cause emotional distress; invaded their privacy by improperly disclosing the reason for an involuntary termination; or terminated them in retaliation for exercising a legal right, such as reporting discriminatory or other unlawful employment practices or taking a leave under the Family and Medical Leave Act or the Military Leave Act.
Legitimate Business Reasons for Employment Termination
Even though at-will employers may terminate employees for any reason – or for no reason at all – terminations are easier to defend when they are justified by a legitimate business reasons. Legitimate business reasons could include problems, misconduct, a reorganization resulting in elimination of the employee’s position, or financial considerations.

Regardless of the nature of the employment relationship, an employer should consider establishing work rules that list conduct that could result in discipline or termination. Employers (at-will or otherwise) should include a disclaimer stating that the reasons listed are not all-inclusive and that the employer retains the right to terminate employees who, in the employer’s discretion, have either engaged in misconduct or who have not performed at an acceptable level. In addition, if progressive discipline is provided for, the employer should retain the flexibility to discharge employees immediately when circumstances warrant.
Before deciding to terminate an employee, the employer should ask themselves the following questions:
·         Does the employee have a legitimate explanation for his/her actions or poor performance?
·         Does the punishment “fit the crime”?
·         Is the decision to terminate inconsistent with previous actions of the company?
·         Is the decision to terminate premature?
·         Does the employee have any pre-termination rights?
·         Has the company administered discipline in a consistent manner?

Following an employment termination, an employer can reduce the likelihood of a challenge in a number of ways:
·         Ensure that post-termination procedures are followed
·         Respect the employee’s feelings
·         Respect the employee’s privacy.
·         Obtain a release.
·         Avoid inconsistent post-termination statements.
·         Maintain relevant documents
·         Help the employee find other employment.
·         Disclaimer