1.1 Personnel Management & Human Resource Management

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Introduction:

Human Resource Management or HRM is the art and science of managing people in an
organization. The process Human Resource Management is like a circle. It may start from
recruiting employee and then may end in rewarding or terminating employee. In this modern
business world, the job of a human resource manager is facing various challenges. Finding a
right employee for the right job and in the right time is very much challenging. Moreover, it is
not only about recruiting a right employee; developing the recruited employee for the job is a big
issue for the Human Resource Management department of the organization.

Bestway Group has been selected for this assignment, which is a multinational company. Its head
office is in London, United Kingdom. Its total number of employee is about 35000 in all over the
world. Its process of Human Resource Management is excellent. It has a great reputation of
selecting and retaining worthy employees.

Task- 1

1.1 Personnel Management & Human Resource Management

Attaining efficiency & justice is the main objective of personnel management. According to
Storey (2007), these two terms (efficiency & justice) are interdependent to each other. That
means, one cannot be achieved without establishing the other one. Its main aim is satisfy the
people who are working in the organization. It is a routine approach, which aims to increase
more production and satisfaction of the workers. It does not encourage employee
participation in the decision-making. For example, employee cannot give opinion on
selecting market segment for the business. The top management fixes everything.

On the other hand, Human Resource Management is the revised or updated version of
personnel management (Boxall et al. 2008). This approach has removed the limitations of
personnel management system. For example, it ensures the participation of the employees in
the decision making process. It is a strategic function, which aims to achieve organizational
goal with the proper participation of the satisfied employees.

As a promising organization, Bestway Group follows Human Resource Management


process. It gives more importance on teamwork in various activities. It develops its
employees by providing proper training and workshops.

1.2 Functions of Human Resource Management in Bestway Group

The Human Resource Department of Bestway Group manages the human resource of the
organization efficiently. It aims to attain organizational goals through employee satisfaction. It
believes, employees’ performance is directly linked to the job satisfaction. The higher the level
of satisfaction, the higher the performance will be.

Human Resource Planning: The Human Resource Department of Bestway Group performs
this function largely through various research programs. Bestway Group has several businesses
like pharmacy, cement, banking and wholesale. Every business organizations under Bestway
Group have separate Human Resource Department for individual businesses. They make human
resource planning through job analysis, forecasting, staffing, training, performance appraisal and
compensation.
Job Analysis: This process is done by collecting information through observation,
questionnaires, surveys and various interviews. It has two parts, one is job description and the
other one is job specification.

Forecasting: Two types of forecasting is done here, demand forecasting and supply forecasting.
Bestway group gives more importance on demand forecasting.

Recruitment: By attracting qualified job seekers, Bestway Group fill its various job vacancies.
Recruitment can be two types, internal recruitment & external recruitment. It encourages people
from the inside of the organization through internal recruitment process and it influences the
people from outside of the organization through external recruitment process.

1.3 The Role & Responsibility of Line Manager in Bestway Group

Line Manager do the direct interactions with the individual employees. They perform a routine
function in Bestway Group.

Day-to-Day People management: As a line manager performs a routine function, he has to report
to the higher authority on a daily basis.

Managing Operational Cost: Line managers of Bestway Group have to keep the record of
operational cost daily.

Providing Technical People: Well Pharmacy is an organization of Bestway Group. Line manager
of Well Pharmacy has to be careful about the requirement of technical experts.

Allocating Work: Line managers allocate work to individual employees and supervise how they
are performing.

Checking Quality: By continuous supervision, line managers check quality of employees and
then switch workers to other departments if it is necessary.
Customer Relationship: Sometimes, line manager has to deal with customers or clients.
Customers provide feedbacks about their experience of using the organizations product or
service.

Operational Performance: Line managers measure operational performance of the employees and
then report to the authority time to time.

Limitations: As shown in an investigation, line managers of Bestway Group have got some
disqualifications and some limitations.

Confusion: There is no clear indication of job responsibility between line managers & staff
executives.

Inattentiveness: As there is a confusion about the area of operation between line manager & staff
executives, sometimes some carelessness are seen in their job responsibilities.

1.4 The Legal & Regulatory Framework of U.K:

UK employee legislation has two parts. One is about equality and the other one is about
diversity.

 Equality
 Diversity

In the eye of law, it is unlawful to not provide the equal opportunity to anyone because of
gender, age, marriage and relationship, disability, race, sexual orientation and religion.

Sex Discrimination Act, 1975: Since 1970 equality between male & female has been the prime
issue in employment law of UK.

Race Relations Act, 1976: Race discrimination is a very offensive event on the eye of law in UK.
Disability Discrimination Act, 1995: According to this law, disability employees get some
special facility in the workplace.

Employee discrimination is divided into two types, one is direct discrimination and the other one
is indirect discrimination.

Direct discrimination is occurs when one is discriminated directly on the ground of race, sex,
disability etc.

Indirect discrimination occurs when one has to fulfill special condition or requirement than the
other members in a group.

Task- 2

2.1 Importance of Human Resource Planning Process for Bestway Group

As demonstrated by Kuchinke & K.P (2010), Human Resource Planning determines the future
human resource needs in accordance to the strategic plan of the organization.

Understanding HR: Managing employees is a prime concern for Human Resource Management.
That is why; proper planning is a crucial aspect for Human Resource Manager. Without
understanding employees’ qualification and specialization, it is impossible to manage right
people for the right job.

Forecasting Demand: Financial achievement of the organization is directly linked to the human
resource management process. Therefore, Human Resource Planning plays a key role to forecast
demand for Bestway Group.
Human Resource Development & Performance: Human Resource Planning formulates various
development program for the organization. For example, Bestway Group conducts many
workshops regarding to Customer Relationship Management.

For Strategic Purposes: HRM department of Bestway Group meetings to ensure whether they are
on right direction or not.

2.2 The Stages Involved in Planning Human Resource Requirements

In this challenging business environment, organization has to be prepared themselves for any
kind of situations. In this case, HR has to be ensured about the availability of the right number of
employees with the required expertise.

Analyzing Organizational Objectives: Different organizations have different objectives. First of


all, the top management has to set the organizational objectives. Then, the assigned department
has to formulate HR plan in accordance with the organizational objectives.

Inventory of Present Human Resources: To make future decisions or planning the Human
Resource Department has to analyze the current information of HR from the human resource
information storage system.

Forecasting Demand and Supply of Human Resource: For every individual employee, there
should be a job profile. The requirement of employee should be based on the job profile. The HR
department of Bestway Group tries to match the description and job specification for every
individual employee.

Estimating Man Power Gaps: The current work force in the company and the future requirement
of work force has to be analyzed.

Formulating the Human Resource Action Plan: In case of requiring more people in the
organization, the HR department hast to recruit new people or train the current employees to
make them more efficient.
Monitoring Control and Feedback: It deals with the implementation of the human resource
strategy. Here, some modifications can be made.

2.3 Recruitment and Selection Process:

Finding eligible or skilled employees is a complex process. Recruitment and selection process
can be done by several methods.

1. Internal Sourcing: By this method, organizations advertise for a new post or any
existing post towards its existing employees. It is a popular method for many
organizations, as it takes less money & less time (Sun et al. 2007).
2. External Sourcing: According to this method, organizations use various external
tools to recruit for a post. Job boards, newspaper advertisements & trade
publication announcements are some popular tools among those external tools.
3. Third- Party Sourcing: For the limitation of time or to find skilled employees,
organizations hire recruiting agency to do the job for them.
4. Interviewing or pre-selection: An insightful interview can find out eligible
candidate by examining them with a hypothetical scenario. Interviewer then asks
candidates to solve the case.

Bestway Group use both internal sourcing and external sourcing method for their
recruitment process. Sometimes, the organization needs experience employees. In this
case, the invites its ex-employees to provide their experience by joining the
organization again.

On the other hand, AKCS limited, a private limited company, completes its
recruitment & selection process by hiring a third party recruiting agency.
2.4 Evaluation of the Effectiveness of the Recruitment & Selection
Techniques Used by Bestway Group & AKCS Limited:

Bestway Group is flexible in considering both internal sourcing and external


sourcing. In this case, it can choose any technique between the two techniques. That
is why; the organization can make a choice & select more suitable technique between
the two, by considering some situational factors.

On the other hand, AKCS limited can make fast decisions by hiring a third party
agency. It saves their time & resources. However, this technique has some demerits
too. The hired agency may not perform their responsibility as per the expectation of
the organization. As a result, the organization may give the job to the wrong
candidate. The organization may suffer from the low performance employee in the
end.
Task-3

3.1 Link between Motivational Theory & Reward

Motivation directs people towards goal-directed behavior. It is not a simple concept. Not
everyone gets motivated in a same way. However, money is an influential motivator factor;
motivation is not just about providing money or giving financial support. There are also many
non-financial issues that are needed to motivate employees (Mathis et al. 2016).

Goal theory: All the actions are done by people is based on some goals or some reward. Some
goals can be related directly to monetary reward and some goals are related to non-monetary
reward or benefit (WCDHP, 2006). For example, in wholesale business, Bestway Group sets
target for sales people, employees who achieve the target get a certain amount money as a
reward. Sometimes, they also arrange tours for highest target achievers.

Acquired needs theory: Largely, the needs for achievement, power and affiliation influence
people in the work place. For example, in Bestway Group, promotion is made quickly for the
employees who are very much promising to their job responsibilities.

Herzberg`s two factor theory: Different things influence workers in job satisfaction and
dissatisfaction. However, some things do not motivate employee, but the absence of those things
highly demotivate employees. For example, in all the offices of Bestway Group have clean
toilets, filling systems and clean office floors.

Recognition contributes in employee satisfaction. That is why; Bestway Group arranges a


celebration program to reward the most promising employees in every year.
3.2 Pay and Benefit Policy of Bestway Group:

Money is considered as the most influential motivator. As a big organization, Bestway Group
provides employee with a satisfactory pay scale.

Pay Grade: Bestway Group pays employees, considering job position of individual employees. In
an organization like Besteay Group, not every employee has the same job responsibility.

Job Experience: Experience is considered as an asset to Bestway Group. Experienced employee


gets higher salary and other financial benefits. Therefore, the organization has a good job
retention rate.

Location: Living expense is not the same in every cities in United Kingdom. That is why, the
employee who works near Westminster gets higher salary than the employee who works at
Newport.

Bonuses: Promising employees get financial incentive in Bestway Group.

3.3 The Effectiveness of Reward Systems in Bestway Group

Rewards can be both financial and non-financial. The reward system of Bestway Group meets all
the required four area to motivate employees effectively.

 Compensation
 Benefits
 Recognition
 Appreciation

Compensation: Employees of Bestway Group are provided with a good pay scale. Employees
can fulfill their basic needs.
Benefits: Employees are given some financial and non-financial benefits. For example, Life
Insurance, Pension Plans, Health Care Insurance, Flexible Compensation, Disability Insurance
and paid leave.

Recognition: Promising employees get a quick promotion. Therefore, they are encouraged to
work harder.

Appreciation: The organization appreciates high performers by giving them financial and non-
financial rewards.

3.4 Monitoring Employee Performance:

Organization monitors employee performance to know whether they are on right track or not.
Bestway Group monitors employee in several ways.

Quality of Work: The supervisor investigates the quality of employees` work. As a result, the
organization can find out quality workers.

Punctuality: Punctuality is practiced in Bestway Group strictly. Employees must join their work
schedules on time.

Personal Presentation: Bestway Group has its own dress code. Employees have to follow the
dress code carefully. It also determines the seriousness of the employees to the job responsibility.

Peer appraisals: In some instances, the organization takes opinion from the co-workers.

Consumers’ opinion: Inquiring about customers opinion about the customer service of
employees is a good way to monitor employee performance.
Task-4

4.1 Reasons for Cessation of Employment:

Under some circumstances, the organization has the right to terminate any employee from his or
her employment. Bestway Group considers some valid reasons before the termination of any
employee.

Lack of Capacity: Every job position has got some job responsibilities to perform. Some special
capability may require for certain job positions. For example, In Well Pharmacy of Bestway
Group, a medical officer should have the proper knowledge about medical science. Therefore, a
person who lacks knowledge about medical science can treat customers in a wrong way. In this
case, the organization has the full right to terminate that employee from the job.

Misconducts: Employees having serious misconducts like theft, fraud, and failing to perform
lawful actions can be terminated.

Poor Performance: Some employees can perform very poorly in a consistent basis. After giving a
certain number of notice, company can terminate them.

4.2 Exit procedures of Bestway Group & AKCS Limited

A clear exit policy makes things easier for both of the parties (the organization & employee).
Bestway Group follows a clear exit policy. Employees can leave the employment for several
reasons, such as- end of contact, resignation or retirement (Armstrong & Taylor, 2014).

Resignation: A letter of resignation has to be submitted to the supervisor or to the related official
on that area. Before the completion of all the procedures, the employee is assumed as other
regular employees.
End of Contract: After the end the contract, the employee can leave anytime.

Retirement: In Bestway Group, employees are given farewell by arranging a farewell party. The
employee also gets many kinds of benefits as per as the organization policy.

On the other hand, AKCS Limited follows an exit checklist. This is system is constituted with
some steps like, conducting an exit interview, sending messages to other employees about the
issue, reminds keeping confidentiality about the organizations privacy and so on.

4.3 Legal & Regulatory Framework on Employment Cessation:

The Period of Notice: In order to end the contact of an employee, a minimum period of notice
must send. In this case, the employee should have a minimum of working period of one month.

Payment in lieu of Notice: Any of the parties of the employment contract can accept payment in
lieu of notice.

Dismissal without Notice: Under some circumstances, Bestway Group can dismiss employees
without any formal notice.

Redundancy: It can be made under the reason of incapability in performing the job
responsibility. Downturn of business is the another reason of redundancy.
Conclusion:

Managing employee is the main objective of Human Resource Management. The organizations
success depends largely on the effective & efficient management of people inside & outside the
organization. In this era of acute competition, a human resource manager can make a difference
by his or her innovative ideas and knowledge.
References:

 Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human


resource management practice. Kogan Page Publishers.
 Boxall, P., Purcell, J. and Wright, P.M., 2008. Human Resource
Management.
 Kuchinke, K.P., 2010. Human development as a central goal for human
resource development. Human Resource Development International, 13(5),
pp.575-585.
 Mathis, R.L., Jackson, J.H., Valentine, S.R. and Meglich, P., 2016. Human
resource management. Nelson Education.
 Storey, J., 2007. Human resource management: A critical text. Cengage
Learning EMEA.
 Sun, L.Y., Aryee, S. and Law, K.S., 2007. High-performance human
resource practices, citizenship behavior, and organizational performance: A
relational perspective. Academy of management journal, 50(3), pp.558-577.
 W.C.D.H.P., 2006. Human resource management: Gaining a competitive
advantage.

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