Program |
Diploma in Business |
Unit Number and Title |
Unit 22 Human Resource Management |
QFC Level |
Level 5 |
Human resource management works as a key to opening all the locks to success for an organisation. It is one of the most desired fields in this dynamic environment. Today, employees are equally important for the business as capital because they are the only assets that help attain the objectives and goals of the organisation. This is the reason that Human Resource Management is gaining more and more popularity as a field. The assignment is thus going to focus on human resource management and making the learner able to understand the process of recruitment management along with the techniques to motivate employees according to the job requirements. The various ways to reward the employees are also discussed in the assignment along with mechanisms of cessation of employment. For further guidance and support, you can consider Locus Assignments assignment help services. We have a dedicated team of professional assignment helpers who will assist you with all your academic assignments.
Tesco is an example of a British-based grocery and general merchandise retailer headquartered in England, UK. It is a human resource management company empowering employees to develop their skills. Personnel management is simply an older version of human resource management. There is no hard and fast difference between the two.
Personnel management is an obsolete approach to managing resources at any organisation. Presently Tesco uses human resource management. Human resource management is a modern version of dealing with people and their strengths.
Personnel management deals with the administration and welfare of the employees such as payrolls and labour relations whereas the focus of HRM is on the acquisition, development, maintenance and motivation of employees in an organisation. The HRM team at Tesco focuses on motivating its employees to achieve organisational objectives along with their personal development.
Personnel management functions on its own with little help from line managers. The power lies in the hands of the top level of management. On the other hand, human resource management remains unified. There is a decentralisation of power where duties are divided among all the departments. For example, at Tesco, the head of the departments distributes their duties to the sales manager, production manager, safety manager and maintenance manager which is further divided into supervisors.
Personnel management is based on rules and norms that are so rigid that employees have to follow the regulations as per the employment contract. Tesco aims to go beyond contract. It does not focus on lifetime contracts and believes in the flexibility of work. The flexible approach at Tesco motivates employees to dedicate their knowledge and skills towards the organisation’s objectives. (Alturkistani, 2015)
The human resource team at Tesco offers an effective structure and culture to meet its business requirements. The functions of the human resource team in achieving the organisational goals are:
1. Integration: This function is related to balancing the healthy relationship between managers and employees. The HR team of Tesco focuses on making industrial relations with other companies as well. The human resource management team at Tesco establishes the application of the programme related to industrial relations and fair activities.
2. Training and Development: The success of the organisation depends upon the talented workforce it hires. The employees need to be trained as well as developed. Tesco plc gives training to the employees and they also conduct various development programmes at their premises in order to make their employees more developed and updated.
3. Effective leadership: It is not easy for every individual to hold leadership qualities. The HR team at Tesco effectively instructs and directs its employees towards organisational goals. They focus on redirecting HR goals from transactional to strategic assuring the effective path of innovation and forward-thinking business ideas.
4. Performance management: HR managers at Tesco ensure that employees are motivated to achieve the organisational goals. They use different motivational approaches to accelerate the performance of the employees such as incentives, bonuses, promotions and reward systems. Compensating employees is not only done to appreciate their current performance but encourage them to work and improvise harder to achieve future targets at Tesco. (Bianca, 2015)
The HRM of Tesco encourages an autonomous and healthy work culture that exhibits a model of transformation.
The Line managers at Tesco have the responsibility of managing the individual employees and teams and they report to the seniors about the performance of the teams they manage. The term “front-line managers” is usually used to refer to line managers in lower levels of management. The line managers of Tesco have the following responsibilities:
1. Monitoring Work and Checking Quality: They provide guidance and instruction to the employees about the work details. Managers try and become the role model for the employees. They are clear about the expectations and standard of the behaviour and type of work of the employees. At Tesco, they develop the spirit of teamwork and give equal opportunity to everyone in the team.
2. Disciplining Employees: Discipline in the organisation starts when the line manager spreads out his expectations with his team. The HR team is responsible for generating the policies and rules supported by the line managers. The rules enforced by the line managers control the behaviour and performance of the employees. Disciplining employees promotes dedication and seriousness at Tesco.
3. Promoting Equality and Diversity: They interact with the employees and know them personally so they can treat everyone equally. At Tesco, they create an inclusive environment so that everyone has equal access to all the allowances. Managers ensure that everyone has fully participated in the learning process and develop their full potential.
4. Employee Engagement: The line managers focus on employees’ strengths and encourage them to utilise their potential. They work on all the negative aspects of the employee and help them overcome it. In order to increase productivity, the line managers influence employees to cooperate, engage and coordinate towards common goals. The line managers who give importance to the negative factors of the employees are more likely to disengage employees.
5. Safety and Health: Another duty of the line manager at Tesco is to care for the safety of the employees. Safety is concerned with preventing injuries and accidents at work. The line managers ensure the regular check-up of devices whether they are working well. It is also the responsibility of a line manager to keep employees free from physical and mental stress. (CIPD, 2015)
At Tesco, the following legislations and laws are followed. These are as:
1. The Equality Act, 2010: This act was revised in year 2010 that state that there should be no discrimination while providing opportunities to employees. The company makes sure that no one is biased by any opportunity to excel in the field. Tesco keeps the following factors that no one should be deprived on the basis of sex, race, religion, caste, creed or physical disability.
2. The Data Protection Act, 1998: The Data Protection Act is also followed at Tesco. Data protection makes it compulsory for all employers to use the data of the employees with utmost care and they should not be used other than the stated purposes.
3. Sex Discrimination Act, 1975/1995/1997: This law states that no male or female should be biased on the basis of their gender in terms of job position. A job should be given on the basis of their capability and not gender.
4. Race Relations Act (1992-amended 2000): This law is to safeguard the employees against racism, caste, creed, colour, nationality and religion in the field of employment.
5. The National Minimum Wage Act, 1998: Tesco also complies with the National Minimum Wage Act 1998. However, according to the changing rates of the economy, the amount of wages also changes. Right now according to the year 2015, the minimum wage rate of the employees of the UK is £6.70.
6. Disability Discrimination Act (1995-amended 2005): This law has protected disabled people from being deprived of employment. People can’t discriminate against other people on the grounds of their disabilities. (Legislation.gov.uk, 2015)
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Human resource planning is a process for estimating the number of employees required to complete the task. It is the planned procedure to improve the skills of the workforce, keeping in mind the present and future demands of the company. Thus, we can define the significance of human resource planning at Tesco in the following way:
1. Ensuring equal opportunities to all: At Tesco, the HR team assures that no employee is biased on the basis of any kind of discrimination. It guarantees equal employment opportunities to all the workers to maintain the dignity of the organisation. For example, at Tesco, female employees are offered higher positions if they are eligible and capable of performing the task.
2. Future manpower needs: It ensures that the number of individuals working is sufficient for the better functioning of the organisation. Human resource planning is considered as the apparatus to ensure the approaching availability of employees to endure the organisational duties. The number of individuals required for the project is estimated through human resource planning.
3. Employment improvement: The main aim of the HR team of Tesco is to improve the skills and calibre of their employees at every possible stage so that they can deliver as much as they can to the organisation. They ensure that employees optimise their full potential and give their best to achieve organisational goals.
4. Recruitment of a diverse workforce: Human resource planning helps the HR team to believe that diversification in the workforce will help them maintain their brand image, which will help them meet customers worldwide. The purpose of HR planning at Tesco is to hire and recruit qualified and diverse staff to accommodate job vacancies.
5. Cope with change: Human resource planning at Tesco is important as it determines the rapidly changing work environment. It supports analysing the current human resources with an HR catalogue and accommodates according to the social, economic, technological and political pressure. (Accounting Management, 2016)
Human resource planning is an approach to ensuring that all the demands of business and customers are met on time. Various factors affecting the planning process at Tesco are opportunities for employees to have specific skills, pending retirements, and changes in the organisation for training old employees. The stages involved in human resource planning:
1. Analysing organisational objectives: The organisational objectives must be analysed first. These objectives could be from increasing the sales to expansion of the functional areas of the company.
2. Inventory of present human resources: Tesco has an Information Storage System; through this information system, the HR team gets to assess the number of employees in the organisation currently and their potential also.
3. Forecasting demand and supply of human resources: The demand and supply of human resources are then forecasted at Tesco. The different job positions are analysed in order to predict the requirements of human resources. The availability of internal and external sources to fulfil job requirements is calculated. The internal sources include promotions and transfers, whereas external sources include recruiting new candidates, their job description and specialisation and their skills to perform for the company.
4. Estimating manpower gaps: After the comparison between the demand and supply of human resources, the management evaluates the shortage and surplus of the workforce requirement. This estimation points out the equilibrium position where the situation can be solved. Shortage leads to the hiring of new employees, and surplus results in the termination of internal human resources.
5. Formulation of the human resource action plan: The formulation of the human resource action plan is done at Tesco. New recruitment and transfers are formulated in case of a shortage of human resources, and termination and voluntary retirement schemes are executed in case of surplus.
6. Monitoring, control and feedback: The monitoring, control and feedback is the last step in the human resource planning of Tesco. It refers to the comparison between the actual plan and the implemented plan. (Chand, 2016)
1. Recruitment and selection process at Tesco: The first step at Tesco is the registration process. The applicant has to fill out the mandatory online form in order to apply for the post. The second step includes the telephonic interview in which the recruiting team evaluates the applicant’s language and communication skills. The next step is the online process where the candidates undergo the four tests—verbal reasoning, numeric reasoning, inductive reasoning test, and talent stimulation. The fourth step involves the competency-based interview in which the organisation needs to know why the candidate wants to work with them. Challenging questions will be asked to understand the applicant better, which is further followed through the assessment centre, in which greater projects are given to the candidates and are kept under supervision. Group discussions and individual exercises are also involved in this process. The last step includes a business interview in which the final interview is conducted by the hiring manager. If the candidates clear this round, they will be selected and hired by the company. (UCR, 2015)
2. Recruitment and selection process at Harrods: The candidates have to fill out the online form posted on the company’s official website. These applicants are called for screening tests. Then the eligible candidates have to clear the written test (aptitude, reasoning etc.). The selected candidates receive the confirmation through e-mail, and then they have to clear the telephonic or video interview. After this, they are called face-to-face debates with the line managers. The last step is the final interview where the candidate goes to the assessment centre for their individual analysis. (Harrods, 2016)
The effectiveness of the recruitment and selection process at Tesco as well as at Harrods can be described as:
1. Transparency: At Tesco and also at Harrods, the company discloses its strategies and policies regarding the recruitment and selection of the company. This develops the policy of transparency in the organisation, which is very necessary for the success of the company’s policy.
2. Training: The correct procedure used for recruiting and selecting candidates exempts the training cost required for the new employees. Giving training to talented and skilled employees results in high productivity, which ultimately increases the profits of the company. It is easier to train the employee who is good at a particular task than the one who has soft skills in every task.
3. Job satisfaction: The recruitment and selection process also involves the analysis of the job and assessment of its value. Thus, job satisfaction is also ensured through recruitment and selection techniques adopted at Harrods and Tesco as it inculcates high morale in candidates as dull candidates tend to be the reason for absenteeism, and sooner or later they quit the organisation.
4. Avoiding problems: The recruitment and selection technique ensures that the process is completed without any problems. An ineffective recruiting process costs bucks to make a mediocre employee into a shining star. A well-developed hiring process saves time, energy and resources and reduces hindrances.
5. Legal compliance: Tesco also has various advantages as it follows the laws and legislations of the UK. The appropriate recruitment and selection process is also very essential to comply with the laws and legislations of the country. (Slezak, 2012)
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Motivation: The process that stimulates a person to work diligently towards the attainment of the desired objectives is referred to as Motivation.
• Physiological needs: The physiological needs of an individual are the basic requirements, i.e., food, water and shelter. Virgin Media provides competitive salaries to their employees, which is necessary to complete their basic necessities.
• Safety: Employees expect their organisation to provide job security. Virgin Media facilitates various schemes for the protection and interest of employees, such as staff protection schemes and pension schemes.
• Social needs: Every individual needs a social environment at the workplace. At Virgin Media, employees feel a sense of belonging, which fulfils their social wants.
• Self-esteem: At Virgin Media, management inculcates the feeling of self-confidence in employees. They provide a platform to raise the standards of employees by challenging them with different projects, which increases their confidence level and efficiency as well.
• Self-actualisation: It is the term used to assess an individual’s calibre. Once the potential is identified by the team at Virgin Media, employees are offered different challenging roles where they can use their skills.
Herzberg, in his theory of motivation, stated the two kinds of factors that influence the behaviour of the worker, i.e., the motivating factors and the hygiene factors. Motivating factors keep the employees motivated, and hygiene factors inhibit motivation. He observed that these factors have a positive impact on the employees. At Virgin Media, employees are highly motivated and are giving the best of their capacity. They are working in a good environment, maintaining healthy working relationships with the team and are well paid.
Management at Virgin Media follows Maslow’s and Herzberg’s theory of motivation. The managers offer benefits to the employees at every level of achievement. Achievement of one objective encourages the employees to achieve higher goals. Management also motivates the employees by enhancing the factors of satisfaction by providing a healthy work culture and encouraging employee participation in the process of decision-making. The company offers an appropriate package of tangible and intangible reward systems such as bonuses, incentives, and rewards to employees along with extra benefits and discounts in insurance policies as well. It offers schemes like ASPIRE field pay and reward schemes. (Hewett, 2015)
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The processes in which jobs are evaluated at Virgin Media are:
1. Analysis of Job: Initially, the job is evaluated at Virgin Media. It is a manner in which the value of the job is evaluated while comparing it to the other departmental jobs in the organisation. It makes efforts to compare jobs in order to analyse their approximate worth for the reason of building a balanced pay structure. This analysis is done in two steps
• Description: In this process, all the responsibilities and roles of an employee which Virgin Media expects are mentioned. This section defines the expectations of the company from employees in future.
• Specification: This section talks about the skills, experience and competencies that the company is looking for. It is necessary that the candidate should possess these qualities in order to apply for the job.
2. Factors determining the pay at Virgin Media:
• Job experience: Job experience and knowledge are counted when hiring a new employee. If they have good experience and know the job position, they are paid well. Outstanding experience might lead to extraordinary pay.
• Awards and honours: The employees who have excelled in their field of work are generally honoured with awards at Virgin Media. It will further help in areas of job promotions, which prove to be helpful in making a difference in salary.
• Salary history: The salary the employee made at their previous jobs is a crucial factor in determining their future remuneration. At Virgin Media, an employee is paid more than their previous job when they are recruited.
• Educational achievements: The employees are well-qualified at Virgin Media. The degree they attained from the institutions matters. The one who holds master’s degrees is paid higher than the ones who hold bachelor’s degrees. (Mathis, Jackson, and Valentine, 2013)
Virgin Media offers an effective system of bonuses that has a positive impact on employees and management. The employees work hard to earn the bonus and incentives. The company considers factors such as service offered to the customers, quality, attendance, and performance as an individual and in the group as well.
1. Employee Retention: Virgin Media ensures that every employee who is a part of the organisation benefits from pension plans, dental care, life insurance, paid holidays, staff saving plans, bonus plans, cover for critical illness, private health and social care, and special discounts on every product of Virgin Media in order to make them stay and keep their interest in the company.
2. Employee Motivation: The management at Virgin Media inculcates a positive and confident environment, which motivates employees to work with a positive attitude. At Virgin Media, services to customers and providing quality products are the top priorities. The reward system identifies those employees who surpass in the field of customer service and sales capability.
3. Reward System: The company does not forget to reward those employees who perform outstandingly. It rewards its employees in the form of incentives, salary hikes, promotions and compensation. Various award functions are also held from time to time in order to acknowledge excellent performers.
The above-mentioned points help the management at Virgin Media to attract new talents. The recruitment of these candidates helps the company to achieve its organisational objectives. In return, the company rewards them with different incentives. (Entrepreneur.com, 2015)
Virgin Media possesses ways of monitoring the performance of its employees. Virgin Media applies different approaches to monitor employees’ performance without making them anxious:
• Appraisal Method of 360 Degrees: Virgin Media follows the approach of the appraisal method of 360 degrees. The performance of the employees is measured with the help of the feedback obtained from the subordinates associated with that employee.
• Hold a stand-up meeting: It is known as group huddles at Virgin Media because this type of meeting is conducted on short notice where functional information is exchanged. This meeting is held twice a week, aiming to produce the quality of shared duties among staff. For example, when a team member at Virgin Media commits to completing a task by 2 p.m., then they are much more likely to finish it within the deadline.
• Balancing Scorecard: The company evaluates the performance of the employee in terms of challenges to be accomplished within a given time. An employee is bound to finish the work within the given deadline at Virgin Media.
• Providing Feedback: The work of the employees is supervised on a regular basis. According to that, the reviews are given. Delaying in providing feedback can cause problems because of which small yet powerful chances could be missed by the employees. (Wohner, 2016)
All organisations and their employees are co-dependent. The organisation is responsible for the enhancement of its employees, whereas the employees are responsible for being dedicated to the organisation and making the best out of circumstances to obtain the organisational goals. This assignment has helped in understand the various aspects of HRM, such as the difference between personnel and human resource management, job evaluation, job specification, recruitment, selection and termination procedures existing in the companies and the regulatory framework within which the organisations operate.
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