This Edexcel HR Management Assignment is the study of the human behaviour understanding in an organisation. Human resource management is responsible for maintaining the good relation of the employee of the organisation within the organisation, because it is very important for the smooth working of the organisation. Human resource management is one of the most essential parts of the process of management because it gives the leverage to the management of managing its people. Human resource management is a continuous process it starts with the commencement of the organisation and ends with the closing of the organisation; every organisation needs to manage its human resource for achieving its goals which are already being defined by the top management. (Management theory review, 2011)
Human resource management (HRM) is a broad concept. Personnel management (PM) and human resource development (HRD) are a part of HRM. HRM is dissimilar from PM both in orientation and scope. HRM provides viewpoint to people as a crucial asset or source that is to be used for the upliftment of society, employees and organisations. It is rising as a diverse management philosophy. PM views as narrower concept as compared to HRM which promotes mutuality- mutual goals, mutual respect, mutual reward and mutual responsibility. HRM cannot be handled in seclusion. It is being incorporatedinto the general strategic business management.
Personnel management has a reversed orientation and restricted scope. It considers labour as a device, the behaviour of which could be influenced for the upliftment of the organisation and substituted when it was worn-out. This becomes the reason that HRM replaces the role of PM. Currently all the organizations are following HRM due to its wider concept. (McGraw-Hill)
The functions of human resource management are of two types, managerial function and operational functions. Managerial function includes:
Planning: It is the basic stepwhich is performed in order to attain the future goals of the organisation. This step includes the planning of requirement of human resource, recruitment, selection and after that training will be provided. This function also includes the personal needs forecasting, behaviour and attitude of the employees and impact of all these things on the organisation.
Organising: In order to attain the goals of the organisation, organizing function is adopted after planning. This function includes the formation of structure and distributes the responsibilities or tasks, based on the ability of every employee of the organisation.
Directing: The main aim behind this function is to activate, lead, motivate and command the employees in order to attain the goal of the organisation. This function basically provides the proper direction to the employees so that predetermined goals can be achieved. It helps in building proper human and industrial relations besides protecting employee assistance.
Controlling: With the help of this function, organisation can constantly improve the activities of management or administration. It is the technique by which competency of every individual and teams involved in attaining the target is evaluated. (Cite Management, 2005)
The operational functions of human resource management are the tasks which are entrusted to the human resource department. These functions are concerned with specific activities of procuring, developing, compensating and integrating an efficient work force.
Procurement: It is related with employing and securing the appropriate andaccurateamount of people vitalfor attaining the objectives of the organisation. It includes various activities like human resource planning, job analysis, recruitment, placement, selection, orientation or induction.
Development: Human resource development is the process of improving the knowledge, aptitudes, values and skills of the employees so that they can complete the current and potential jobs more efficiently. This function includes factors like training, career planning and development, performance and potential appraisal and executive development.
Compensation: It refers to providing fair and reasonablecompensation to employees for their involvementin achieving the objectives of theorganisation. It consist activities like bonus, job evaluation, and wage and salary administration.
Integrationof HR: It is the process of integration the objective of the organisation with those of its associates. Integration includes encouraging employees through different non-financial and financial incentives, handling employee grievances through formal grievances procedures, providing job satisfaction, conflict resolution, workers participation in management, collective bargaining, and employee counselling and so on. (Boselie and Paauwe, 2003)
Line managers are basically those managers to whom every employee or team straightforwardly reports. They are generally known as front-line managers and are placed at a lower level in the hierarchy of management. The basic responsibilities of a line manager are described below:
Line managers are also responsible for recruitment and selection of employees at lower position. They provide training and assistance to the employees. Line managers also take care of performance evaluation of employees and deals with grievance as well as discipline. (Kulik and Bainbridge, 2005)
Importance of HRM is heating day by day because of the global business. Every business owner desires its company to trade internationally. International business and domestic business requires the important assets i.e., human assets. To comply with the government standards of rule and regulations there are many acts which prevent the employees to exploit at workplaces. Mentions below are some of Acts which is mandatory for the organisation to follow and employees as well:
These acts has substantial impacts in Human Resource Management activities because the work of the HR manger is to continuously monitor these acts so that it can be applied in the organisational rules and policies so he/she have good control without any inequity. (Shilling, 2004)
Human resource planning is defined as the process by which management decides the path by which an organization moves from its present manpower situation to its preferred manpower situation. Through it the management struggles to attain accurate number and exact variety of individual at exact place, at accurate time, performing doing stuffs which leads to both the company, and the individual obtaining, most of the long-range advantage.The main aim of human resource planning is to make best possible consumption of an organisation’s current and future human resources.
Tesco is a giant company. It includes more than 360,000 employees worldwide. So, in order to manage huge amount of employees efficiently, human resource planning is adopted. It helps in reducing the wastage of manpower as well as useful in evaluating the efficiency of human resource programs and policies of management. In Tesco, human resource planning is the process of analysing company’s likely future needs for people in terms of skills, number and location and allows the company to plan how these needs can be encountered through the process of recruitment and training of the workforce.
Initially, with the help of workforce planning table, the company establishes the likely demand for the new staff and considers the managerial as well as non-managerial positions to be filled.After gathering the total requirements, company tries to fill it with the internal talent plan by filling maximum number of requirements internally i.e. transferring or promoting existing employees. If in any case, appropriate candidate is not found than company uploads the requirement on intranet for the time period of two weeks. After that the company advertises requirement on its website www.tesco-careers.com as well takes the help of media like radio, television, Google and magazine like The Appointment Journal and also advertises offline by accepting direct CVs in order to recruit suitable candidates. (Case Study)
Selection process is carried out by initially screening most suitable applicants based on their curriculum vitae according to the requirements of the organization. Selected applicants are further called for the interview process. Preferred candidates are than sent to the assessment center where team activities and problem solving exercises are performed to assess every candidate. Successful candidates are further called for final interview, which is conducted by manager. Based on that, offer letter are distributed to the selected individuals by the organisation. (Case Study)
Sainsbury is one of the biggest competitors of Tesco as well as oldest and leading supermarkets in United Kingdom. The company deals in variety of products and its retail stores are situated at different cities. The HR policy of the company was very much centralised and all the decisions of the company was taken by the top management. Employees of the company were given appropriate opportunities to excel themselves as well as compensate for their involvement. The process of recruitment and selection of Sainsbury is described as follows:
The company does not accept Curriculum Vitae of any candidate directly. All the recruitment of the company is handled through its website and all its vacancies of supermarkets, store support centre, convenience stores, pharmacies and logistic depot are posted on its websites. So, in order to apply for any position, the candidate has to visit the website of the company i.e. www.sainsburys.jobs/graduates.
Initially, with the help of application form or questionnaire, eligibility of the applicants is performed. This questionnaire takes around 2 hours to complete. After that 20 minutes test is conducted in order to check numerical ability and verbal reasoning of the selected candidate. The telephonic interview of 30 minutes is conducted of the selected candidates to reveal ability, drive and opinion in order to manipulate the person. Preferred candidates are further transferred to the assessment centre which is situated at the store support centre of the company. This is performed to display their abilities with the help of sequence of tests in order to analyse the present level and future prospective of the candidate. At the end, interview of the selected candidate is performed by the Director of the company. Based on the result of the interview, offer letter is given to the preferred candidate within 2 days. (Sainsbury Jobs, 2012)
The biggest strength of the Tesco’s recruitment policy is that the cost of recruitment is reduced as most of the recruitments are done internally which helps in avoiding investing money on advertisement or various other recruitment procedures. Due to promotion, the existing employees get motivated; this helps in yielding better results for the company. It further increases the morale of the existing employee and strengthens their commitment towards the company. Because of maximum internal recruitments, less training and orientation is required.
Weakness of this type of Tesco’s recruitment policy is that due to open invitation via advertisement, huge number of candidates may apply which further leads to time consuming screening process of the application. Huge emphasis laid on recruitment through internal sources whereas young blood or new candidates are provided less chance to work in the company whereas Sainsbury provides more preference to recruit from external sources than internal sources. (Case Study)
Tesco has adopted various approaches and theories of motivation in order to encourage their employees. These theories help in enormous ways to understand the behaviour and nature of employees at workplace. From the given case study and I examine the three theories majorly opted by Tesco to motivate employees are:
Job evaluation is the process where the worth of the jobs assesses according to the organisational requirements. Job evaluation justifies in making the wage differentials as per the need of job. Job evaluation is the next step in determining the pay and establishes the relative worth of the job. Job evaluation is the major component of job analysis. Job analysis is the process of collecting the information of the job. Job analysis is categorised in the two sets of data are:
Job Description provides the description of job related activities. It includes the roles and responsibilities of job. It contains the information on job title, duties, job summary, location, to which the supervision given and received, working environment, machines & tools, and safety and precautions at workplace.
Job Specification enables the requirements of candidate’s capabilities that will be the part of job or job-holder. It is the statement of requirements like education of the applicant, skills (technical and behavioural), qualification, way of communication, sense of responsibilities and traits (Aswathapa, 2008).
Attractive remuneration enables an organisation to attract, retain, and motivate competent people. Retaining competent workforce and longevity of their services in the organisation is depends on the attractive remuneration packages. Employees set expectations about rewards and compensation to be received.
Factors of determining the pay are:
In Tesco, those employees are considered as Customer Assistant got the 2.7% pay rise and take their pay above £7 per hour. Other than the Customer Assistant got the 2.5 % pay rise (BBC News, 2014).
Tesco follows the non-financial rewards and edge to get the better knowledge which helps in making the career progression. Tesco Express selected the ten members to get the exposure and better knowledge in six weeks training so as to get the career kick-start in the field retail. This training is collaborated with The City of Liverpool College, it deals with the business and provide desirable workforce (Smith, 2104).
This is the glimpse of the reward structure of Tesco where the first priority is given to the customer much more related to the services but those who are offering their best services to the customer, Tesco in not behind and delayed to give the rewards quickly. Above mentioned structure is not the end rather it contains more and more systems or rewards that is the reason employees always flatter this organisation in number of ways.
The giant supermarket grades the employees to give the financial anon financial rewards. The Tesco workers are given the electronics armbands to mangers to provide the grade according to the hard work. So, on the basis of their massive efforts given marks and this also implies to improve the productivity of the employees (The Independent, 2014).
It becomes very important for the organisation to evaluate the performance of organisation and employee as well. In the dynamic world organisation has to keep the track of work and business operations. This gives sustainability for the longer period of time and opportunities for continuous improvement.
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Earlier the relationship between employer and employee was much unregulated. The relationship was mainly based on the bargaining and negotiation of contracting the worker. Workers were independent to and free to leave the organisation and the similarly with the employer where they were free to fire the workers. That was the time when these became the reason of cessations of employment. Now the time has changed the relationship of employer and employee has due to the increased scale of production, specialised team of workforce has increases, and division of the work on the basis of job (Reyes, 2010).
Employment exit procedure plays the crucial role for the company. It tells about the company reaction and employee reaction. It not only helps the company to understand the needs of the employees but also it helps employee to understand the weakness and lack of areas.
Exit policy contains the several steps. It is a planned activity of the organisation to show the cessation of the employee employment (Human Resources Management Policy)
The company has to make the employment cessation arrangements according to the legal and regulatory framework. The impact is major in the organisation it keeps the organisation under corporate governance and persuades to follow the code of discipline. There are many reason due to which the company has to take action of employment cessation and under legislation these reasons should be mentioned.
Organisation is ready to take challenges thrown by the market economy. To survive in the competitive scenario every organisation has to make all the attempts to reduce the inefficiencies. Human Resource is such an attempt form the side of the organisation. So the scope of HRM is vast, it includes all the activities and functions like HR planning, recruitment and selection, remuneration and reward system, employee motivation and various act. We have seen the practical implication in Tesco of HRM with the help of case study.
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