Human resource management (HRM) is an organizational function whose focus is on the recruitment, management, and provision of direction to the individuals who work in an organization. Importantly, the role of HRM is to capitalize on the productivity of an organization by maximizing the effectiveness of its personnel. The purpose of this paper is to give an understanding of the roles and function of HRM within the primary areas of resourcing, rewarding, development, legislation, and relations to an organization business. All this will be outlined in a sequence of tasks beginning with the first task up to the fourth task.
Differences between Personnel Management and Human Resource Management
The term personnel management refers to a range of activities applied to a workforce that include staffing, contractual obligations, payroll, and other administrative tasks. In this regard, personnel management includes the set of activities that concerns managing the employees rather than resources (Saiyadain 2009). HRM entails management practices and decisions that influence or affect people directly. Precisely, HRM deals with people-centric issues in management. Even though HRM and personnel management focus more on individual’s management, when examined, it is possible to spot some differences between them. In personnel management, the distribution of power is centralized, and the top management is responsible for all decision-making processes. In contrast, HRM sees the decentralization of power. In this case, the power of the top management is shared with the lower and middle management groups. Secondly, personnel management emphasizes transactional leadership style where the leader is viewed as a task-oriented person. On the hand, HRM uses transformational leadership style where both employees and management share business objectives (Lussier & Hendon 2015). Both models focus on the importance of integrating HRM/Personnel techniques with organizational objectives. Both emphasize developing employees’ competencies for their personal satisfaction to make their effective and best contribution towards the organization success. Further, both models of personnel management focus on recruiting and selecting the best candidate for the positions applied. Both utilize same method of selection, competence analysis, training, and similar reward management methods (Lussier & Hendon 2015).
Assessing the Functions of Human Resource Management in Contributing to Organizational Purposes
The functions of HRM entail planning, developing, and administering programs and policies created to make expeditious use of the human resource in the organizations. However, the management is still concerned with individuals at work and their relations with the organization. One of the key functions of HRM is recruitment and selection. HR department is responsible for recruiting the best candidates for the organization. Training and development are also other functions that HR department carries out (Lussier & Hendon 2015). For this reason, they have to undergo regular development and training programs to improve employees’ efficiency level. This department carries out all development and training. The training is performed at workplace and sometimes, it can be performed out of workplace. The third function is performance appraisal. This happens after recruitment since the HR department is responsible for reviewing the recruits’ performance on a regular basis. Performance appraisal majorly focuses on measuring and improving employees’ performance as well as the future of the potential employees. HR department should tell when an employee needs training. The fourth function is employee relations. HR department is responsible for measuring employees’ satisfaction at the workplace through job satisfaction, resolving workplace conflict, and employee engagement (Lussier & Hendon 2015). The fifth function is rewarding employees and compensating them for the effort they put in their work. The reward can be in the form of gift cards, money, salary increment, and much more. The final function is compliance with employment legislations. The employment law becomes complex day by day. Thus, HR department has to make sure the organization compliance with legislation in the organization is greater than ever.
Evaluating the Role and Responsibilities of Line Managers in Human Resource Management
Currently, line managers have taken up several roles and responsibilities of the HRM functions. Performance appraisal is one of the line manager’s responsibilities. The HR department designs the performance appraisal process, but the line managers implement them. They are also responsible for selection and recruitment process (Lussier & Hendon 2015). They determine the candidate that suits the job well, depending on how they perform during the interviews and their work experience as well. In the case of underperformance, line managers should identify what was the cause, and how the problem can be solved. They also set realistic and measurable performance standards that include an action plan, incorporating standards, targets, deadlines, and further support. Line managers also ensure that any employees experiencing difficulties are well managed. This includes handling staffs grievances and resolving all sorts of conflicts that may arise within the organization. Line managers plan and organize for an organization as well. This includes planning the priorities, objectives, and aims of their area of work (Lussier & Hendon 2015). Line managers also ensure that that the organization works in compliance with legislation since this is very critical in every organization.
Analysing the Reasons for Human Resource Planning in Organizations
HR planning helps in forecasting future manpower needs. Before forecasting future of manpower needs, it is significant that managers analyse the current manpower status. With HR planning, the management develops employment programs. It works with recruiting and selecting candidates for jobs with different job specification. Further, HR planning identifies the need for training in an organization (Sims 2007). Proper planning is essential to cope with changes in diverse aspects that could affect a company negatively. The changes require continuation of allocation or reallocation as well as effective utilization of HR in organizations. Other reasons why HR planning is essential in organizations include enhancing HR development process and minimizing redundancy at work.
Outlining the Stages Involved in Human Resource Planning
HR planning has several stages. The first stage is demand forecasting. HR planning steps start with forecasting the type and number of employees needed in the future. For this reason, it is important to understand the internal and external environment of an organization. Correct forecasting of HR requirements contributes to organization competitiveness significantly. The second stage is inventory analysis. This entails keeping track of the current workers in an organization to determine to what extent it meets the forecast. HR inventory involves keeping track of the age, location, number, qualification, and skills of each employee to determine the specific functions each employee would probably fill in the long or short term. The third stage is the audit. This includes reconciling inventory with forecast using systematic analysis of demand and supply. This also involves identifying the areas where surpluses and shortages exist (Sims, 2007). The fourth stage is reconciliation. It includes developing action plans to bridge the gap between supply and forecast. The primary consideration when carrying out the planning process is compliance and the impacts of labour legislation. The last stage is monitor and control. In HR planning, there has to be monitoring and controlling of the HR plan. This involves ensuring implementation proceeds by the organizations plan and taking timely corrections.
Comparison of how Recruitment and Selection Process is Carried out in Two Organizations
MC Donald’s and Tesco Recruitment
Recruitment and selection are crucial processes in every organization. In this case, this report will examine how MC Donald’s restaurants and Tesco company carry out their recruitment and selection processes. To begin with, Tesco has different ways in how it advertises its vacancies. This organization prioritizes an internal employee to fill a vacancy at either a promotion or same level. If the company lacks an internal employee who fits a position, it advertises the post on its intranet websites. Tesco advertises vacant posts externally through its website, offline media, radio, magazines, newspapers, and television. Even though advertising on television, magazines and radios is expensive, this is the appropriate way, in which most people get to learn about vacancies. Tesco also offers online applications that applicants fill in and apply for job directly. Applicants can also register through job centre plus or apply in Tesco stores. As for MacDonald’s, each restaurant recruits for itself. In McDonald’s, a vacancy is advertised within the restaurant. They use career fair, local job centres, and other local facilities to advertise a post. The restaurant has a website for individuals willing to apply for jobs online. Individuals who face difficulties in accessing the web can call the recruitment line.
MC Donald’s and Tesco Selection
In Tesco, the selection involves choosing the most suitable candidates from the applicants while considering the employment laws and regulations. Screening candidates is an important aspect of the selection process (Saiyadain 2009). A well-organized resume helps Tesco management assess whether an applicant matches the job specifications. Tesco has a “job type match” tool that helps applicants identify whether they can fit in the position they applying for. Candidates who pass the screening process attend an assessment centre located in the company store and run by managers. Applicants are assigned various tasks that include problems solving exercises and activities. It can involve some of the problems they could have dealt with at work. Candidates who pass the internal assessment centres qualify for an interview. In McDonald’s, the selection process starts with psychometric test. The managers select the successful candidate for the interview. Therefore, they conduct the interviews. After attending the first stage interview, the candidate is presented with “on job experience”. The two-day assessment takes place in the restaurant. Only the successful candidates qualify for a final interview. McDonald’s provides a welcoming meeting for the new recruits. During the meeting, they are given an orientation of the company, including hygiene, safety training, job role food, training and development, and policies and procedures.
Evaluating the Effectiveness of Recruitment and Selection Techniques of the Two Organizations
The process of recruitment and selection plays a significant role in determining an organizations’ performance and effectiveness. When an organization hires employees who have the appropriate knowledge, talents and skills, then productivity might increase. The concept of effective selection is to get the right candidate. For Tesco and McDonald’s to stay competitive, they must have the best talents. The key effectiveness that comes with Tesco and MacDonald’s in the recruitment and selection process is that it helps in the decision-making. The management of both organizations has the opportunity to find the right applicants who match their job specification without considering their race, religion, nationality, gender, and even skin colour. It is time-consuming, so managers need to be careful when selecting the appropriate candidates. Tesco and McDonald’s can transfer their employees to another location if the management wishes. Advertising is important for both companies. This technique informs many applicants about a position and in the process, the interested candidates apply for the opportunity if it matches their skills.
Assess the Link between Motivational Theory and Reward Management
Employees have different factors that motivate them to do their work best, and it is the responsibility of the employer to understand this for effective management and support of employees. One of the motivating factors is money. Mostly, people work to earn a living, and this makes them sacrifice much of their time and effort to increase their payments through appraisals and promotions. These benefits motivate workers to give the best to the organization. The second factor is recognition, and employees need to be recognized for achievement of set goals and accomplishments of projects (Amos et al. 2008). This can be done through gifts, promotions, or recognition amidst other workers for good work done or certification. Promotion is the third factor. Job promotion, including increased responsibility and authority, is a great motivation for the workers. The fourth factor is bonuses. When employees do their jobs well, it is always motivating to give them extra payments besides their salary. The fifth factor is fringe benefits. These are benefits besides job salary such as paid vacation, health insurance, and pensions. These benefits make employees feel that they do not sacrifice lives for the sake of effectiveness of their business (Amos et al. 2008). Other factors include career development and personal growth. Therefore, some of the benefits that managers give to their employees include fringe benefits, commissions, pensions, incentives, bonus, preferred lunch hours, medical insurance and business cards.
Evaluating the Process of Job Evaluation and other Factors Determining Pay
Job evaluation is the process systematically used to determine work value relatively to other jobs in the business. It gives the worth between jobs to establish a balanced pay formation. Several factors determine pay. The first factor is the skill. Employees with relevant skills are likely to have good work performance and good pay. The second factor is knowledge (Amos et al. 2008). Experience is a key factor in good work outcome that equals good pay. Environmental conditions as a factor are the physical situation, for instance, heat, fumes, and cold. Such environmental factors should be considered when compensation for employees is determined. Another factor is responsibility. The more the responsibilities are, the higher the pay rise is. When it comes to competence, employees with greater ability than the others should have a higher pay than others. More skilled employees with higher qualifications should be paid more than the less skilled ones. In the hierarchy level, the higher ranked employees are likely to earn more than those in the low ranks. Employees exposed to high risks of job accident should have a compensation strategy for the accidents in case they happen. Employees should be paid as per job performance with those with the best performance highly paid. Increased costs of living will mean an increase in everything, including job pay (Amos et al. 2008). Other factors include government regulations, the ability of companies to pay, demand and supply in that when the demand for certain labour is high the supply is low, and the cost is high.
Assessing the Effectiveness of Reward Systems in Different Contexts
Reward systems boost the employee morale in working and enhance the workers’ motivation to make profits for the overall organization success. When it comes to company size, rewarding employees in small organizations ensures its growth. Age of the organization determines the kind of rewards that the employees should be given. When employees are rewarded, they are motivated to work more, and this means more profits for the organization. There are not for profit firms that offer charitable services to society and improvement on the charitable acts (Doppelt 2003). They should create an opportunity for rewards. On the other hand, in public sector, schools and hospitals offer services to the public, and their reward system improves their relation with the people they serve. Other factors include the expectation of employee, nature of a job, low labour demands, economic situation, type of employment and environmental stability where all firms should work towards maintaining a favourable environment through proper disposal of waste and curbing the effects of global warming. Employees who maintain these factors should be rewarded.
The following are some of the reward system used in organizations.
Hourly rates are rewards given in after some hours of assessment of a job well done. Weekly rewards are given on the weekly basis after an assigned task is well accomplished while monthly pay is given at the end of the month besides the salary. Daily rewards are prizes that are particularly given on each day after the accomplishment of a task as required, and skill-based pay is awarded according to the skills of an employee as an encouragement (Saiyadain 2009). Team based pay is prizes given to a team of employees as an appreciation for work well done, while incentive pay is payment done before work to encourage employees for better performance. Other reward systems include basic salary with annual increment, overtime pay, performance based pay, productivity bonus, attendance bonus, and fringe benefits. There are rewards such as annual paid holidays and paid sick leave. Paternity and maternity leaves are breaks taken off work by mothers and fathers to take care of newborns; however, they get their salary as usual even when absent at work.
Methods Used to Monitor Employee Performance
There are many methods used in monitoring employee performance. The first method is an observation that means watching an employee perform a task. If this employee has difficulties in excelling in some tasks, management can just watch them perform the task, get to know what is wrong, and how it can be improved (Holley, Jennings & Wolters 2012). The use of self-monitoring tools like checklist and activity log helps give information of every activity of employees; for example, monitoring if they meet goals and objectives in the project plan. Diaries can also be used to note the work done. Another method is feedback from supervisors where a supervisor monitors employees’ work progress and productivity. Others methods include performance appraisal, feedback from team members, sales report, error report, accurate report, problem-solving, and 360-degree feedback where employees have a private report on their performance from the people working around them (Holley, Jennings, & Wolters 2012).
Identify the Reasons for Cessation of Employment with an Organization
Employees are the backbone of every small microenterprise. Employers pay for their human resource while they, in turn, offer their services for the success of the business. Employee termination occurs in firms as the result of various factors. The first factor is medical grounds. This is the lack of capacity to perform an assigned duty in a firm. Before termination of the employment on medical grounds, there should be evidence that the employee is incapable of performing their respective duties. Another factor is death that is inevitable and that happens every day. Procedures for termination of employment after death are laid out in every organization on the terms of full benefits and other benefits. Family obligations such as young children who need constant attention and distance between spouses are among facts that lead to job termination (Doppelt 2003). Unfair treatment can also lead to employment termination where some employees treat their workmates unethically simply because they have senior positions or hold their positions for longer terms than their workmates. The employers can terminate the employment of such employees because of their bullying character. Employees move from one company to another in search of a better pay and better work environment. Employees are required to terminate their employment with a former organization. Other factors include retirement age, unsatisfactory working conditions, inappropriate management style, and insecurity of employment.
Describe the Employment Exit Procedures Used by two Organizations of Your Choice
Employees exit organizations for several reasons as stated above, and each organization has a distinctive exit procedure that each employee should follow. IZZ Company limited, and AQX securities limited, for instance, have a well-established exit process as discussed below. Employees in IZZ Company are required to submit a written resignation letter a month before the resignation date, while AQX requires the employees to hand in their resignation letters three months before the date of resignation. This timing allows the organization to interview an adequate replacement for them. In IZZ Ltd, the person retiring is also expected to train their replacement on the roles and responsibilities that they will hold in the company. The person wishing to resign should sign this letter and provide a realistic reason of why they want to resign. Employees should also fill in a form to book an interview with the human resource board. The human resource board replies to the resignation letter with a date for the exit interview and a questionnaire. The person to resign is required to fill in the questionnaire that is to be used during the exit interview. The human resource board accepts the questionnaire and sends another confirmation letter to the person to confirm their intention to resign. The person writes in confirmation of the above or otherwise if they have decided against the resignation. Once the board receives the confirmation of resignation, they set up a date for the interview. The exit interview is held face-to-face with the departing employee. It makes the employer learn why the employee leaves the organization, expresses facts about the organization, the working environment of the workers, and gives information on the management of the organization (Holley, Jennings & Wolters 2012). Also creates a picture of the improvements to be taken, gives constructive feedback and helps retain a valued employee who might have been retiring due to reasons that can be corrected by the organization.
Consider the Impact of the Legal and Regulatory Framework on HRM and Employment Cessation Arrangements
Legislations in the government exist to protect the employee from exploitation from their employers. These laws cover several fields in the organization. The first field is equal opportunity. The law requires an organization to offer similar chances of employment for both men and women on equal measures. This affects human resource in that some jobs such as those that involve operational of heavy machinery are better suited for men since they require significant effort. Night jobs are also better for men since they do not have children to look after at night (Holley, Jennings & Wolters 2012). Another field is antidiscrimination where the legislation also offers protection against employee judgment at the workplace due to a personal trait. In equal pay equal work, the legislation allows workers to get a similar salary depending on the work they do and the geographical location of the organization (Holley, Jennings & Wolters 2012). Other fields comprise the health and safe, age discrimination and diversity.
In summary, for every organization to run effectively, HRM and personnel management must be maintained up to standards. Both HRM and personnel management focus on managing the individuals at work. The common functions of HRM and line managers include planning, recruitment and selection, training and development, and performance appraisal alongside other duties. HR planning is critical in every organization that aims at improving its productivity. HRM ought to be viewed as a strategic function for organizations. It helps in building a competitive edge in every organization by engaging its employees positively. The key ingredients of effective HRM include having the right leadership style and effective two-way communication with employees. This opens up an honest environment where employees feel that they are being listened to and that they can play a critical role in the decision-making process.