In this unit I will explain how important it is to

make human resources planning and how to

reward, motivate and get and keep competent
HUMAN and well skilled employees.
michiel hamming
Unit 16

RESOURCES
MANAGEMENT
IN A BUSINESS
Unit 16
Table of content
Task 1 P1................................................................................................5
Introduction.............................................................................................................................5
Human resources planning......................................................................................................5
Internal planning factors......................................................................................................5
External planning factors.....................................................................................................6
Walmart...................................................................................................................................8
Internal planning factors Walmart.......................................................................................8
External planning factors Walmart......................................................................................9
Task 1 M1............................................................................................11
Conclusion.............................................................................................................................11
Task 1 P2..............................................................................................12
Introduction...........................................................................................................................12
Employee skills.....................................................................................................................12
Job role..................................................................................................................................14
Conclusion.............................................................................................................................16
Task 2 P3...................................................................................17
Introduction...........................................................................................................................17
Motivation theory..................................................................................................................17
Task 2 P4...................................................................................20
How gain my selected organisations committed employee co-operation?...........................23
Task 2 P5...................................................................................25
Introduction...........................................................................................................................25
Measuring performance.........................................................................................................25
Managing performance.........................................................................................................26
How does Altrex measure and manage employee performance?.........................................28
Conclusion.............................................................................................................................29

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Task 1
P1
Describe the internal and external factors to consider when planning the human resource
requirements of an organisation.

Introduction
In this P it goes about the internal and external planning factors. I will explain the theory of
internal and external planning factors and later on applied on an organisation.

Human resources planning

Human resources (HR) planning is looking to the current employees skills and motivation
techniques and comparing them what is needed in the future. To do this business need to look
to both inside and outside the business. There are three different factors for:
 Internal planning factors
 External planning factors
 Employee skills
I will explain the internal and external planning factors in this P and employee skills will be
explained in P2.

Internal planning factors

Internal planning factors are all those to what is already happening inside the organisation.
This includes how the organisation is dealing with new methods of working or new demands,
also the introduction of new technologies, new product or new services. If you introduce new
technologies you need to consider if there is a new skills for required. The organisation needs
to consider all the time if they improve or change something if it needs new skills to let it
work. It is very bad if there are gaps so it is very need to fill in all the gaps. There are three
things where the company looks at:
 Organisational needs
 Skills requirements Assessing
 Workforce profiles current
workforce
Organisational needs
Organisations are changing all the time, the
fast growing technological improvement has
also influence on the HR, the workforce, and
they need to change to. The demand for Developing Human Analysing
strategies
products and services will have influence on to fill the resources future
workforce
the amount of workforce needed. Before the gaps planning
organisation introduces new product or new
services they need to consider to contracting
the workforce or expanding it.

Identifying
the gaps

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In HR planning is the cycle here on the right very important. An organisations needs to follow
all those steps to fill in the gaps and create no unnecessary gaps.
Skills requirements
Every organisation needs to assess its workforce and build up a profile of the training,
experience and qualifications that employees already have. It doesn’t matter if the
organisation is capital intensive or labour intensive.
Every organisation has it own certain skill what an employee requires and the requirements
changes all the time. So every organisation needs to have a clear profile of every employee so
that they can plan future trainings and recruitment.
Workforce profiles
Many organisation creates for workforce profiles to view and monitor the types of employees
working for the business. Workforce profiles usually include details such as age, gender,
ethnicity and ability.
Knowing the age of the workforce can help managers to see which employees may retire in a
few years. The manager can than handle direct and fill in the gap that the employee may
leaves behind.
Profiling the qualifications, skills and experience is an important one because with that
information the organisation can look if there are improvements and if some employees need
trainings.

External planning factors

External planning factors are those that have directly influence on the direct control from
outside the business. The factors outside the business are more than inside the business.
Factors outside the business are availability of employees to work, amount of money that is
needed to pay but also government policy, labour market competition, changing nature of
work and employee expectations. Those are examples of external factors that affect human
resource planning in organisations.
Supply of labour
It is important to consider what is going on to the supply of labour on a local, national and
international scale. All the labour areas in the world are changing often for example; local
areas with primary factories like mining etc. are becoming more technological factory like
microelectronics. This means that there are needed new people and that maybe people who
worked in primary factories need to have a training to get the skills needed for modern
factories. So does local areas depends on the business in their community and if the change
the community may need to change also.
Nationally, the supply of labour is dependent on trends in unemployment and the types of
skills that are needed by employers.
The international labour supply also has implications for UK employers. This is because
people from other countries move to the UK to find work, partly due to the major expansion
of the EU to 27 countries. By national and international labour supply has the government big
influence because they can make certain policies that have big impact on the labour supply
like in the EU that people can work in the Netherland due the live in Poland. The government
can also invest in new employees and often does employers that also because they need new
people with certain skills and qualifications.
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Labour costs
By capital intensive companies is the labour cost much lower than labour intensive, this could
be 60%. Labour is often the highest costs inside a business because the companies needs to
have employees to run the business.
Workforce skills
Organisations can use different documentations of the government or other statistic
companies. With different documentations organisations can find out the types of skills that
are available in their local area or region. So can the organisation see if there are potential
employees in their area. Businesses need to use this information in their advantages because
with this information businesses can plan the future and make themselves attractive for
potential employees and maybe if there is a skills-shortage give potential employees extra
benefits like free education etc.
In some areas it is impossible to find the right person with the right skill than it is also
possible to search abroad for potential employees.
Government policy
The government has big influence on external factors affecting human resource planning. This
is because the introduction of policies for education, work and training has implications for
the number of potential employees available, as well as their ability and skills levels when
they leave education.
Labour market competition
When businesses plan workforce for in the futures they need to consider if there are enough
potential employees available. If not the businesses can attract potential employees with
benefits. Businesses will only give benefits when there is a shortage on potential employees
and other competitors want also new employees.
Business need to secure to give not too much benefit because labour costs are already the
highest.
Changing nature of work
businesses nowadays ask employees to have more skills than one specific skill. For example a
teacher Dutch can also be a supervisor or a teacher German. This makes the employee more
skill fuller than he was before.
Many business organisations have also opted to have flat organisational structures. This
means that instead of remaining with an employers and being promoted to more senior posts,
employees either need to change jobs at the same level to experience different work or may
need to change employer to get a promotion.
Also working flexibility is nowadays a hot item. More jobs are not the standard working
hours of 8 am till 5 pm. For example, air traffic controllers are working 24/7 or factory jobs.
Working at home is also very popular because some employees live far away from their work
and then is working at home very useful and smart for employee and employer.

Walmart
Walmart is an American multinational retail corporation that operates a chain of discount
department stores and warehouse stores. There headquarter is in Bentonville, Arkansas. The
company was founded by Sam Walton in 1962. It has over 11.500 stores in 28 countries.
Walmart had in 2014 revenue of $ 485 billion and 2.2 million employees over the world.

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With 2.2 million employees Walmart needs to have a big HR department. I will look at the
internal and external planning factors of Walmart.

Internal planning factors Walmart

Organisational needs
Walmart is a very labour intensive company because they have many employees to run the
supermarkets around the world. Labour intensive means that Walmart needs to plan their HR
very well because missing one person can has big consequences on the process at Walmart.
Walmart is continuing working on new employees.

Walmart tries to get employees through having connection with universities who prepares
students to work at Walmart. This is very smart of Walmart because they don’t have to pay
the education but have well prepared students to work at Walmart.
Skills requirements
Walmart is a big company with many different function, departments and so different skills
required. One of the ways that Walmart makes sure that the employees have the required skill
is through the cooperation with the university.
Workforce profiles
To create a good overview of all functions Walmart has made different workforce profiles.
Walmart have done that by doing the following:
 Separate the function in different departments
 Give every function an unique function name

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The picture here above shows exactly how Walmart it has done.

External planning factors Walmart

Supply labour
Walmart is a multinational and operates in many different countries. Walmart is constantly
searching for employees with the right requirements. Walmart operates in all the labour areas.

Local area because Walmart has many supermarkets all over the countries in local townships
or in big cities. Those local supermarkets need also employees and that is often found in the
local areas because employees on those supermarkets don’t want to travel to long and far
National area because
Walmart has office
buildings in different
countries. In each
country is a office
building where
employees all over the
country work. So the
office building attracts a
wider area of people.
International area
because Walmart is standing open for international employees. As a Dutch citizen I could
apply on jobs in the USA or in other parts in the world where Walmart is. Walmart sometimes
move employees from countries to countries because that employees is needed with the skill
he got in that country.
Labour costs
The labour costs at Walmart are is very high because Walmart has many supermarkets where
are employees needed but also on transportation, office, distribution centres etc.
So Walmart is a labour intensive company what doesn’t mean that they don’t use order
systems but that is still less than the amount of employees needed for Walmart.

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Workforce skills
I think Walmart will use documentation about skills in local, national and international areas
to find the right person. Walmart has also a foundation where is give unemployed or
underemployed people the change to study and learn a workforce skill. Walmart invest every
year around the $ 2 million into the project.
Government policy
As I told before, the government has big
influence on the company with different
policies like minimum wages, good working
space, amount of breaks.
In 2013 Walmart was under pressure because
they paid according to the government not
enough wages to their employees. The
government in the USA has said that Walmart
needs to pay higher wages otherwise they
need to pay a fine. The employees of
Walmart had also the plan to boycot different
stores and don’t let customers come in.
This is an example of the power of the
government policy. The government can
force companies to do something.
Changing nature of work
Walmart gives employees who work hard and have the right education the promotion they
deserve. That promotion could be from assistant shop manager to shop manager somewhere
else in the country or where you are already working.

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Task 1
M1
Explain why human resource planning is important to an organisation
Every company want to work as
efficient as possible and then are Assessing
current
gabs not very useful. It’s than workforce
important that the HRM planning
is optimal and that they identify the
gabs so early as possible to fill the
gabs.
Developing Human
If there are gabs the company can’t strategies
Analysing

work efficient enough and the to fill the resources future

workforce
operation won’t be go smooth plus
gaps planning
there will be work left over.
With a good HRM planning you
can recruit the most capable people
to fill vacancies. Identifying
the gaps
HRM planning also identifies the
skill requirements for various
levels of jobs. Then it can organize
different training and development campaigns to increase the level of the certain employees to
the required level.

Conclusion
So why is HRM planning important? HRM is important because when the planning well you
can till your business to the next level because with good HRM planning you can hire capable
personnel and have smooth operation.

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Task 1
P2
Describe how the skills that employees require to carry out jobs in an organisation are
identified.

Introduction
In this P I will explain the employee skills. Employee skills is very important to businesses as
they can add value to the organisation.

Employee skills
The skills and talents of employees are very important for businesses. Employees with good
and high skills and talents add value to the organisation. Employees with the right skills and
talents can make organisations better or more efficient. It is important to plan human
resources but also other resources like finance and buildings. If you don’t plan this resources
efficient enough it will cost you money.
I will explain the following:
 People as organisational resources
 Skills sets
 Skill acquisition
 Skills audit
 Skill transferability
 Impact of technology
People as organisational resources
Human resources is not the only resource in a company but it is the only resource where you
have to be the most sensitive because they are people, people with feelings. Organisations
need to deal sensitively with human problems for example when they are getting fired you
need to help them to re-train or find further employment.
Skill sets
There are two types of companies, capital intensive and labour intensive.
Capital intensive are companies who have invested a lot in machinery and fewer employees
for example food manufacturing and car making.
Labour intensive is that companies need lots of people and that it invest in people for example
restaurants, supermarkets and other shops.
The types of human skills that are required to do a job effectively are known as a ‘skill set’.
Examples of such skills might include:
 Speaking and presenting
 Time management
 An ability to work a piece of machinery
 An ability to use a piece of software
 Data analysis
 Coaching

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Every job has its skill level. If a job is complicated and demands a high level of education and
training, it is going to need a high level of skill. If it is a job that can be performed with a
minimum amount of training, then it is likely to be low skilled. Taking into account the range
and complexity of skills that are needed is important for human resource planning.
Skill acquisition
Acquiring skills during work is extremely important for both employers and employees.
Employers must make sure that they have got new people being trained to do a job in case
employee leaves the organisation. For employees, gaining new skills can help motivate them
and make them more efficient in the workplace.
Skills audit
Skills audits are very useful for companies to do. By doing skills audits companies can find
new skills of employees. Employees may already use it but often companies find new skills
and then the company can decide to let the employee do another job.
Companies may also carry out skills audits routinely to establish the skill level within the
company. For example a firm with mechanic want to know witch mechanics need to have a
training or an extra training. The company can than see witch mechanics has a qualification
and witch not. To register all this information companies often use software called Human
Resource Information Systems (HRIS).
Skill transferability
The biggest threat for a company is that very experienced employees leave the company and
go work at other companies. The company needs to look if the skills required for the job is
easy to do also at other company. If you have jobs that have very specific skills could be not
experienced well because the employee have not the freedom when his job is easy to reverse.
Impact of technology
Technology is changing the way we work and it has significant impact on the number of
workers that organisations need to employ. Companies needs to employ more technical
employees than real workers for in factories.
Technology has also impact on the working hours of employees. Often are the normal
working hours, 8 a.m. till 5 p.m., gone and are employees and businesses working 24/7. That
came because people can order product at any time in a day instead of during working hours.
They can orders through their phone and online. Customers want also everything as early as
possible so companies need to work 24/7.
Because many things goes online companies need to have problem solving or customer
service online but employees need also new skills to solve problems or customer service in
order to answer telephone calls and deal with emails.

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Job role
I will apply the skills on a job role
of area floor manager (grocery) at
Walmart
Position description
What an area floor manager
(grocery) have to do are many
different things
Those tasks are:
Δ Communicate with/or to
individuals or groups
verbally and/or in writing.
For example with customers, suppliers, employees.
Δ Identify associate, customer and or supplier concerns
Δ Implement the business plan for area of responsibility
Δ Maintain quality and safety standards in area of responsibility
Δ Monitor and manage productivity of area of responsibility
Δ Supervise and develop associates and leaders in area of responsibility

Minimum qualifications
Walmart has set minimums on this job.
Walmart wants that you are guarded in:
Δ Associate’s degree in Business, logistics or related field and 1 year supervisory
experience, or Bachelor’s Degree in Business, logistics or related field, or 1 year
Walmart Logistics management experience, or 2 years Walmart logistics experience,
or 2 years supervisory experience.
Additional preferred qualifications
Δ 1 year Microsoft Office experience
Δ 2 or more years Walmart logistics supervisory experience
Δ 3 or more years supervisory experience
Δ Both Bachelor’s Degree in business, logistics or related field and 1 year supervisory
experience.
Walmart requires a lot of experience and knowledge.

Communication skill
Like you can see in the requirements you have to be communicative, verbally and/or written
with customers, suppliers associates etc.
Communication is very important for this job because you are responsible for different area.
They need to achieve goals and do the job well, if they don’t the management of Walmart ask
you why and how it comes because you are responsible for them. So you have to
communicate much and often with the responsible areas.

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Employability skill
Walmart prefer a lot of experience, regular and more specific. So do they want one year
experience with Microsoft Office, most of the people have that, minimum of two years
logistics supervisory experiences and minimum of three years of supervisory experience.
That´s a lot experience. You need different employability skills like I described here above.
So do you need ´´ Effectiveness in meeting personal and team targets´´, ´´ Experience of
specific industry´´ and ‘’ Ability to observe and raise professional standards’’.
Effectiveness in meeting personal and team targets, why?
As area floor manager (grocery) your are responsible of a area with different stores. You get
targets from your manager and you need to tell the stores where you are responsible for about
the targets and may improve the stores with different upgrades of changes.
So you need to reach your personal goal but also the goal with all the stores where you are
responsible for.
Experience of specific industry, why?
Walmart is searching for employees who want to change to another job because Walmart
wants that the potential employee have two or more years Walmart logistics supervisory
experience, those experiences is only possible to gain if you work at Walmart.
Ability to observe and raise professional standards, why?
As area floor manager (grocery) you have to maintain quality and safety standards, monitor
and manage productivity and supervise and develop associates in your responsible area.
Maintain quality and safety standards.
You have to maintain quality of the products and the safety of all the employees in the
responsible area. You got your goal and you need to reach it. To reach the goal you can
choose to change some standards or to improve the knowledge of employees.
Monitor and manage productivity.
You have first to monitor how fast employees work. If the results are bad, how can you
improve, develop and change it so that employees will be more productive.
Supervise and develop associates.
You have to look how associates are doing. Are they doing their work well, are they happy,
do they have complaints. You have to deal with all those problems and changes them if
necessary.
Personal skills
As area floor manager (grocery) you deal with a lot of customers, suppliers and employees.
You need to require different personal skills to accomplish this.
Δ Patient and hard-working
As manager you can’t let everything happen in one second. If you change something
you won’t directly see the changes. That needs time to develop and that employees get
used to it, so you need patient. Because you are manager of different stores you have
to work hard to accomplish all the targets.
Δ Team worker
You are responsible for an area of stores who have around 150 employees per store
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 but also with suppliers and customers.
You need to be a good team player to work with them.
Δ Negotiation
Negotiation is an important skill to have for this job. You need to negotiate with many
difference parties to reach the target. With employees about complaints or good
things. Or with suppliers about deliver time. So are there enough negotiation skill
needed.
But how does Walmart find all those skills. Through skill audits.
Walmart did skill audits on the job role and looking what is minimum need for this job.
Area floor manager (grocery) needed to be communicative verbal and written, he also need to
maintain quality and safety standards.
With that information Walmart did skill audits on employees looking if their where
employees that have this skill or could do this after a training.

Conclusion
Skills are very important for companies. How more skills and better skills an employees has
the more value the employee could add to the company. It is also important to do skill audits
routinely to ensure the level of skills is high inside the company. Companies need to be aware
of that employees will go to other companies so companies need to have a backup plan if
someone is leaving.

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Task 2
P3
Outline how an organisation motivates its employees

Introduction
In this P I will explain the motivation theories of sir Taylor, Mayo, Maslow, Herzberg,
McGregor, McClelland and Vroom. After explaining the theories I will apply it on a business.

Motivation theory
There are seven men who write different theories about how to motivate employees. Each
men have his own idea and I have explained it here below
Δ Frederick Taylor
Taylor’s idea was to pay employees with the piece rate. What means that an employee
get paid per piece of work done. This motivates employees because it’s their own
choice how much money they earn. For example, employees get € 5,00 for everything
they had made a t-shirt.
Δ Elton Mayo
Elton took the ideas of Taylor and explored them further. Mayo found out that not
only financial was motivating them but also management involvement, team working
and communication.
Δ Abraham Maslow
Abraham suggested that the
needs of individuals can be Self-actualisation
ranked into a hierarchy. The
lowest are the basics, water,
food, sleep etc. If you want to Self-esteem
move to the next level the
previous level needs to be met. Love and belonging
Second level is safety and
security. As employer you need
to give your employees safety Safety and security

and security. The third level is

love and belongings. Employees Physiological: air, water, food,
sleep, shelter etc.
love ones and belongings are
happier than people who lost
love ones or belongings or don’t
have. The last two levels are the most important for the employer. Fourth level is self-
esteem and fifth level is self-actualisation. You need to give employees self-esteem to
let them perform the way they are the best. You need to give them confidence to do
their job. Self-actualisation is very important because employees need to know what is
going on. Employees need also to be trained if there is an improvement or a new
strategy.
Δ Frederick Herzberg.
Frederick has almost the same theory as Maslow but Frederick has two elements,
hygiene factors and motivators. The theory of Frederick is that the employee first need
to meet the hygiene factors before motivators could be used.
Δ Douglas McGregor
Douglas has two main ways of managing employees called theory X and Y. Theory X

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 is where employees are managed as if they are lazy and need to be punished and
threatened if they do not work hard enough.
Theory Y is about employees managed as if work is a good activity for them and they
will feel rewarded from being with other human beings and doing a good job. Both
theory is for different employees because some employees need to be punished to
work harder and other employees not.
Δ David McClelland
David thinks that there are three main types of motivational need: Need for
achievement, authority and power and affiliation. Each employee and manager has
differencing levels of these needs.
 An employee or manager who is achievement-motivated wants challenging
goals and to be able to reach them. They need feedback on how they are doing
and need to feel they are being a success.
 An employee or manager who is authority and power-motivated needs to have
big influence on others and make an impact. They want and need to lead as this
helps them feel better about themselves.
 An employee or manager who is affiliation-motivated wants friendly
relationships and likes being with other people. They are team players and are
often popular at work.
Δ Victor Vroom
Victor Vroom statement is that employee work harder if they believe that the outcome
of their efforts will be better. He produced a kind of formula: M = E x I x V
M = motivation E = expectancy I = Instrumentality V = Valence.
If each of the variables are high the motivation is also high.

Reward systems
To motivate your employees you have to possibility to use different reward system. Every
reward system has its own positive and negative influence on the employee. I will give you a
full description of the most common and most chosen systems.
Δ Pay
Every company pays its employee for the work they have done. That is standard and
so the most common system.
Δ Performance-related pay (PRP)
Performance-related pay is often paid when the person is analyse and the evaluation
has been done. When the person has excellent performance he gets a bonus paid as
PRP. This system is often only used at the sales department because it is easier to
measure the performance of the employee.
Δ Pension schemes
Pension is for the most employee’s standard in
their contract. You pay over you wages a sum of
money for your pension. You may think you get
less pension and that is true but you will get your
pension because when you retire. An example of
a big pension company is Delta Lloyd. They are
known in many countries around the world.
Δ Staff discounts
Staff discounts is often given by supermarkets, clothes shops etc. So do they stimulate
their employees to wear their brand. It is indirect marketing because employees wear it
and they will talk about it or people will see it and think ‘’those clothes are beautiful, I

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 want them also’’. You also keep you employee close because they like discounts and
clothes for less.
Δ Cafeteria incentive schemes
This schemes is the favourite by employees because they can choose between different
things. They can choose the following:

Δ Holidays Δ Company car Δ Bicycle loan

Δ Insurance, e.g. house Δ Loans Δ Childcare
Δ Health screening Δ Season tickets for sporting events Δ Computer
Δ Discounts Δ Pension

Employees like this kind of freedom because they can choose what they and what they
like to do or have instead of that the employer chooses for the employee.

Altrex
The Maslow theory fits perfect with the way Altrex motivates its employees. Altrex is very
focused on the employee and to look if they are on the right place and if they are happy.
Altrex want to create the ‘’Altrex family’’. Doesn’t matter if you are an intern or a normal
employee you are part of it. So does Altrex have a yearly BBQ to create a nice time with your
colleagues.
I was an intern for 20 weeks and in that time they didn’t have all the time enough employee
available, so it was busy for intern and employee. To reward us they gave us a breakfast at
Van der Valk hotel in Zwolle near the company location. This rewards is to motivate and also
give them self-esteem for the company and they feel valued.

Altrex also uses bonuses for the sales. If sales reach a certain amount of sales they will have a
bonus on top of their standard salary. This motivates the employees each year to reach that
number of sales.

In the Netherlands are the minimum vacation days for someone who works 5 days per week
20 days. This number could also be higher because there are different CAO’s in the
Netherlands. Altrex has around 45 days per year what is extremely higher than what the
minimum is.

Conclusion
Altrex is a company what focus on employee and want that employees are happy. They
motivate their employees very well. They let them feel valued because people like to be
valued and that they do good work. When there are problems or heavy discussions between
employees what not is solved by themselves the HRM will talk with them and solve it
because it can damage the ‘’Altrex family’’.
If I were manager at Altrex I would more use the cafeteria method to boost the motivation
because they choose their own reward. Nowadays Altrex often choose for you if you do a
training or the number of vacation day.

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Task 2
P4
Explain how organisations obtain the cooperation of their employees
Introduction
In this P it will go about how to let your employee as much cooperative with the company.
You all know that person what works for 30 years for the same company, why do people want
that and what do companies to let people work so long for them.
Contracts of employment
By outlining the entitlements and expectations of both employer and employee and the
different groups and schemes that can help both parties to work effectively together.
Contractual entitlements include arrangements for the employment including:
 Holiday pay
 Sick pay
 Hours of work
 The type of employment, e.g. temporary or fixed
 Notice period
 Disciplinary rules
 Pension benefits
With these primary employment employees are satisfied on the basic level but to let
employees be more satisfied, motivated and more committed to the company you need
secondary employment.

Secondary employment
With secondary employment you level the commitment, loyalty and satisfaction of the
employee up. Secondary employment are for example reward systems, explained in P3.

Employee and employer rights

An employee has different rights, for example, right:
 To receive equal pay
 To not be subject to discrimination
 To not be unfairly dismissed
 To receive maternity or paternity pay
 To receive notice of termination of employment
 To receive redundancy pay
 To receive statutory sick pay
 To receive annual leave
 To be paid at least minimum wage
Those are only the right for employees but employers has also rights including that the
employee works within health and safety legislation, that they will give notice to the employer
if they decide to leave and that they give notice before they go on to paternity or maternity
leave.
Types of employment contracts
There are  10 different employment contract. Those are the following:
 Permanent
This type of contract is the most common because this give the employee the

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 safety of work and loan. This is also for the employer, he knows that the
employee can’t leave the company without notice him.
 Temporary
This means that the employee gets a temporary job instead of a permanent one.
This give that the employee can leave the company after the agreed period of
time. This type of contract is often on fixed term basis, i.e. for 35 hours for 4
month or 1 year.
 Casual
A casual contract is that the company uses you when they need you. For
example there is someone sick they call you to fill in.
 Full-time
Often is this type of contract for people who want to work 40 hours in 5 days
per week. It is almost the same as permanent but this contract says more about
the amount of work instead of how longer the employee will work here.
 Part-time
Part time is almost the same as full time but the difference is that part time has
less working hours than full time.
 Zero hours
This is the best contract for employers because a zero hours contract means
that the employer only needs to pay the hours the employee works. What
means more flexibility and less costs because you don’t pay the employee
when it is doing nothing.
 Annual hours
This one is very similar to the zero hours. The only difference is that this
contract guarantees the employee an amount of hours.
 Fractional
Here an employee performs part of a fraction of the hours in contract, for
example 0.7 or 0.9. This can be a good way to divide up a full-time job with,
say, one person doing 0.4 of the full-time contract and anther 0.6.
 Term time-only
Term time-only contracts are often offered in schools and colleges to help
employees with children.
 Self-employed
This is when a person is asked to a job but on the basis that they are doing it as
if they are running their own business

Disciplinary procedures
Disciplinary procedures is a guidelines and rules given to employees by the employer. So do
employees know what would happen in the event that they did something wrong, known as a
breach of contract. There are six areas to consider as part of a disciplinary procedure, and
mediation is strongly encouraged.
 Establish the fact of each case
 Inform the employee of the problem
 Hold a meeting with the employee to discuss the problem
 Allow the employee to be accompanied at the meeting
 Decide on appropriate action
 Provide the employee with an opportunity

There are three different types of warnings:

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  Oral | The employee is told about their behaviours verbally
 Written | The employee is told about their behaviour in writing. This is usually
for more serious offences
 Final written warning | This is used if steps have been taken to get the
employee to improve without success.
Sometimes employees do things which are so serious they are termed ‘gross misconduct’.
Examples of gross misconduct include:
 Violence
 Drug or alcohol abuse
 Damage to property or equipment
 Serious breaches of health and safety
 Fraud
 Theft

Union membership
A trade union is very useful because it protects and discuss your rights and interest. It often
negotiate about issues such as pay or working conditions.

Open communications
Open communications means that there are two people communication open face to face. To
talk with employees open they get the feeling that they are involved in the company.
Δ List of open communications:
 Formal | This is the official communication of the organisations. So does
employee talk to customers or when they have a presentation in front of the
directors.
 Informal | This communication is when you talk with your colleague or with
your friends. This is more relaxed and you talk about non-business items.
 Top-down | When information passes from the top of the organisation.
 Bottom-up | Where employees pass information up to the directors through the
layers of management.
 Lateral | Communications that take place between members of staff who are at
the same level but working in different parts of the organisation.
Δ There are 7 different methods of communication.
 Face to face in a meeting
 Telephone
 Memo
 Email
 Text message
 Company newsletter
 Company intranet

Investors in People
IIP stands for Investors in People what means that the employer who invest the most in his
employee gets this award. This award is based on three core principles:
 Plan | Develop strategies to improve performance
 Do | Take action to improve performance
 Review | Evaluate and improve performance

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International standards organisation
ISO stands for International Standards Organisation (ISO). This organisations develops
standards for many different industries. Standards are ways of working or solutions to
problems.

How gain my selected organisations committed employee co-operation?

Altrex
Employees at Altrex are very committed to colleagues when they are for example sick but
they are also very committed to Altrex as company. They are committed because Altrex uses
different methods. I think those different methods are needed because you need to stimulate
different employees and every employee is simulated on another method.
Altrex want that your feel valued and that you like your job. Every employee at Altrex has its
own responsibility for example the sales department for the Netherlands has 4 employee with
2 interns. The Netherlands is separate in two parts and for each part 1 employee is
responsible. The employee needs to help the employee of the responsible part of the
Netherlands. The other two sales employees are responsible for the return and the guarantee
of products. To give responsibility to your employees they feel more valued and maybe also
proud.
Altrex as two different types of contracts, permanent and zero hours. Permanent contracts for
all the employees who fulfil a job description and is needed daily, like people at sales. Zero
hours for employee in storage those are often young people.
People are sensitive for opinions, feedback etc. and also like attention. Altrex gives much
attention to its employees. When someone is ill he has to call the boss of the department and
explain what wrong and the boss will give him attention have a little conversation about when
he/she thinks he is better when he says about a few days or about a week the boss of the
department will call the employee everyday about how it is going. When someone is seriously
ill they will visit the employee or send a card.
Altrex has two times per year a performance appraisal what means that the employ has a close
eye on the performance of the employee. It could be that the conversation is short because the
employee is doing well and there are no improvement for now but it could also be much
longer because the employee as some issues are the performance is to low.
This all is mostly tertiary employment but you can also gain commitment through secondary
employment and Altrex has that. Account managers who are often on the road could get a car
of the business for free or for a monthly fee he can drive the car private. Also could account
managers who call a lot get a phone of the business.
Conclusion
Altrex creates on a perfect and good way committed and cooperative employees. They use the
perfect motivation theory of Maslow what also influence has on the commitment of the
employees.

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Task 2
P5
Explain how employee performance is measured and managed.

Introduction
In this P I will explain how employee performance is measured and managed. To explain how
they measure and manage it I will explain the different measurements of performance,
including the different types of targets and goals employees are set.

Measuring performance
It is important to measure the performance of employees because when you have measure it
you also know how motivated they are. If the performance is outstanding you know their
motivation is very high. If the performance is low you know they are not motivated.
Performance indicators
In every business they measure employees different. In the one they measure during a specific
time period they might measure how many customers an employee serves, how many
products they have made, how many sales they have made or how many reports they have
written.
Sometimes it is hard to compare certain employees. For example a nurse who has the
responsibility about a room with 10 beds but those people need extra attention or there is
something happen and that takes time it is hard to compare with someone who has two rooms
with 20 beds and that is only giving its meal and a little conversation. It is hard because the
job as nurse cant measured quantitative. Nurses needs to be measured qualitative and not
quantitative.
Goal Theory
Goal theories are very important because it will motivate and stimulate the employee to
achieve. To get good goals the employee and employer needs to work well together and find
out which goals are important for the both of them.
SMART targets
Where SMART for stands can you see in fig. A.
Smart is a very important and useful business tool to set goals brief and to the point. It gives
in one sentence beautiful the strategy and the targets of the business. It is also very useful
because at the end of the SMART targets you can analyse easily if you have passed the targets
or not

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Figuur A
Figure
Benchmarking
To know and measure how well the business is doing against competitors you have to do
benchmarking. This means that you compare your company with competitors and try to be
better than them.

Managing performance
previous part of this P I explained how to measure and also set goals and in what ways. In this
part I will explain how to manage the progress of your employees.

Probation
When an employee is new they will look in a period of time if he is still suitable for the job.
This means that the performance of the new employee will be closely monitored. During
probation has the employer still the right to say no and kind of fire the new employee often
that is not happening. It is also the right of the employee to say no to the job.
Appraisal
Appraisal systems in any organisation should be designed to motivate and encourage
employees to give their best performance.
It is important to get the balance between the need of the business and what the employee
needs/wants, to get that it is very important to listen and look to the both parties.

The targets could be different. Some employers may give an employee eight relatively simple
targets to achieve, whereas others may get one or two more complex targets. At the review
meeting, targets will be measured against what has actually happened and then a judgement
can be made of how well the employee has done.

It is also possible to do self-appraisal. The employee will then consider its own performance
and to set themselves personal targets to achieve. By completing a self-appraisal employees
can help to manage their own performance and make improvements making them more
motivated in the workplace

Supporting employees
To support your employees there are three methods mentoring, monitoring and buddying.
i. Mentoring
A mentor is someone in the workplace who supports and encourages another employee
to help them achieve the best performance possible.
The great thing about mentoring is that the relationship between the mentor and the
mentee is one-to-one. It is the job of the mentor to pass all relevant knowledge,
experience and skills to the mentee. Mentoring is also very useful because you can have
a quick discussion with your mentee about methods and may change them a bit.
ii. Monitoring
Monitoring is the process of checking that an employee is making progress. Monitoring
usually takes one of two main forms: formal monitoring or informal monitoring.
Formal monitoring is that the manager check and watch an employee in an obvious way
and informal monitoring is that managers make more discrete judgements about how
employee is fitting into the workplace or not. When not the employee has to be trained.
iii. Buddying
Buddying in the workplace is where an employee usually new to the job or company, is
supported by another more experienced or established employee, so the buddy. The

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 employee can ask the buddy questions or discuss a matter. Buddy is very useful
because the buddy stands closer to the employee than for example a line manager.

Occupational health
Humans can feel pressure in the workplace called stress. To let the employee work as hard as
possible they employer needs to relief the pressure what gives happier employee and they are
less stressed.

Managing workloads
It is important to have shared your workload fair because employees will be less stressed. It
sounds easy but it has to be done properly. Flexible working hours and the use of part-time
staff can help to even out the workload in some organisations.

Delegating authority and responsibility

It is important to monitor delegating authority and responsibility to avoid employee errors,
which can be costly for the employer in terms of both money and damage to reputation and
may even result in dismissal for the employee.
Capacity
Capacity relates to the amount of work or products that can be produced or is being produced.
To lower the cost the capacity of each employee has to be as high as possible. You need to
reach the highest point without giving your employees to much pressure that they will get ill.

Competence
If someone is competent in their job, it means that they are fully trained and experienced
enough to be able to carry out the tasks associated with it. Having competent staff leads to
more efficient organisation and one that can provide better service or products to customers.
Autonomy
Autonomy means giving power and control over decisions to an individual worker or team of
workers. This may involve an employee becoming responsible for monitoring their own
performance, rather than managers doing this. Giving autonomy to employee has two sides. A
good side because they are more likely motivated to work as hard as they possibly can
especially if they feel their targets and goals are achievable. The other side is that if you give
to much autonomy employee give themselves a to low goal.
Linking rewards to performance
Making direct links between rewards and performance requires the monitoring of employee
performance in order to ensure that desired outcomes have been achieved.
Discipline
Discipline is also linked with managing employee performance because disciplinary
procedures set out what will happen to an employee if they are not working at the desired
level. There are different motivation theories who say that employee has to be punished when
they are not working hard enough. Under-performing employees are often a disaster for the
company because when an employee doesn’t work hard enough another employee(s) has to
work harder, what will give stress and demotivation.
Employee development
Employee development helps employees to keep developing and become better at their jobs,

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thus improving their performance. Employee development is varied, as what suits one
employee will not suit another. If the company comes to a conclusion that the employee needs
to develop they need to look carefully witch type of employee develop they choose.
Employee development type Details
Training Training might involve attending a one-day course on a
specific aspect of the job or being trained at work ‘on the
job’
Learning Learning take many different forms, from learning through
formal courses run by professional organisations to learn
more about the organisation by studying its history.
Job rotation This involves an employee doing other jobs at the same
level of pay. For example, an employee working in the
finance department may go to work in the customer service
department for a while.
Accelerated promotion Accelerated promotion schemes exist in many different
organisations. For example, new employees starting with
the police force, often graduates, join a programme to help
them move up the organisation very quickly.
Personal Personal development can take a variety of different forms,
but they often involve developing skills that can be used
outside of the workplace too, such as learning a language
or taking part in a hobby.
Professional Professional development can completed in a number of
different ways, including the attendance of workshops and
seminars. Many organisations now insist that their
employees have at least 30 hours of professional
development every year.

How does Altrex measure and manage employee performance?

Altrex is has two times per year an appraisal conversations with all the employees. That cost a
lot of time but it is very important to measure, manage and analyse the performance of
employees. In an appraisal conversations Altrex discuss the results of the past months/year
with the employee and analyse if it has improved or not. If not they look why that could be is
there something bad happened or were you not feeling well. Also will there a new target set
and the new target will be analysed at the next appraisal conversation.
Altrex has different methods to measure employee performance at sales they look to the
amount of orders, turnover per month etc. In the storage is it different, there they measure
how many pick up orders they have accomplished or in the factory how many ladders you
have made in a certain time.
It is Altrex’s job to make sure that the employees have enough knowledge and skills to do
their job. Therefor has every employee a yearly training, it is more an update than that they
learn something really new, in their job field. The storage people get information/updates
about the storage and sales about new trends, ways to talk with customers etc.
Next to trainings has Altrex information meetings for example when a new sale is to launch,
sales needs than to know everything about the sale and when engineering changes a little

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thing of a stepladder sales and also other departments like storage needs to know that because
it could have another article number but also to inform customer correct.
When you are new at Altrex you have in your first two weeks interview with all the
departments at Altrex. That is from sales to storage and from storage to marketing. They do
that because they know what every department does and they know the person who they need
to contact for certain problems or questions and for the employee who already work there
know the new employee and what his job is.

Conclusion
Competent and well skilled employees are very important because they are they do their work
most efficient and they can inform the customer best because they know enough to give a
clear explanation and when the customer is well informed they are happy and will come back
because they like the service and the way they were be helped.
But to keep competent and well skilled employees you need to give them trainings job
rotation and may send to a cursus to learn another field inside the company better.

Overall conclusion
I have learned in this unit that is important to plan HRM and to make sure that you have
happy employees. To have happy and motivated employees you need to reward them but
look to the kind of employee you go to reward because not all the employees want to be
rewarded on the same way.
It is also important that you employees are competent and well skilled to inform and help you
customers well. To keep good employees you can let them do a yearly training or job rotation.

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