Human Resource Management At British Gas
The concept of Human Resource Management has been gaining prominence and focus in management during the last two decades. Human resource
is considered to be the center of all development processes of the economy. While HRM has been known from ages, its rediscovery has been necessitated by the deteriorating social conditions, increased competition and rapid technological advancement. By putting the mind capabilities to the proper use, this single inexhaustible resource i.e., human resource, will find solutions to the social and material problems faced by mankind. As I have been appointed as the HRD of the British Gas, I can able to identify and verify three HRM functional areas/activities in British Gas.
Recruitment, Selection, Promotion and Transfer
The progress of any organization depends on the quality of people who work in it. Only a committed and qualified work force will be able to achieve the goals and targets set by the organization. Therefore it is very important to place man in the right job so as to make optimum utilization of his assets. This increases the importance of a strong system of recruitment and selection.
Concept of Recruitment:
Recruitment is the process of identifying and attracting the right candidates for a job It must follow the manpower planning process.
Before starting the recruitment activity, I must consider
Whether the vacancies should be filled up from within or outside the organization.
Whether recruitment should be done locally. Nationally or internationally.
The methods and media to be used for attracting applicants.
The recruitment activity is affected by the following factors:
The wages and compensation structure
Image & reputation of the organization
The process of recruitment consists of the following steps:
Manpower planning – It defines what resources the organization needs to meet its objective. It must specify the quality of manpower needed at a particular date in future.
Job analysis: It consists of
Job Description – It is statement of the component tasks, duties, objectives and standards of performances expected from the employee.
Job Specification – It is a specification of the skills, knowledge and qualities required to perform the job.
Personal specifications – A reworking of the skills, knowledge and qualities required to perform the job.
Identification of vacancies – it can be had from the requirements of the manpower plan or by a job requisition from a department, branch or office which has a vacancy.
Preparation of budget – the Company must decide the amount it wishes to spend on recruitment. The method of recruitment would depend on the time available and budget allocation.
Preparation and publication of information -
a. Advertisement – It is an effective way of seeking recruits. It must be clearly worded, mention all the requirements and must appear in the right place that are likely to be read by the potential applicant.
b. Internet – It has become a popular method of recruiting people. Many organizations have their own web pages where prospective applicants can obtain data about the company, its products and services, employment opputunities and application procedures.
6. Receipt of application form – Once the application forms are received, they must be screened for eligibility criterion. Those froms,which do not meet the minimum, required standards of age; qualification,experience ect., must be rejected.
Aspects of recruitment
Alternatives to recruitment
While the personal plan may suggest that additional employees are needed, it might not be possible and practical to recruit because of the cost and performance of recruitment.The alternatives to recruitment are as follows:
Cost effectiveness of recruitment
Some aspects of the recruitment process provide information on the cost effectiveness of the method used for e.g.
Sources of recruits
Method of recruitment
Internal & External Recruitment – There are a number of factors which determine whether to promote people from within or recruit from outside. Internal placement is desirable when
There is a large talent pool
Internal development is a personnel issue
Business conditions are stable
Building cross functional capabilities is a strategic objective of the organization
Skill required to perform the job can be developed in house.
External placement is desired when
There is a limited talent pool
Performing one capability is a personnel issue
Business conditions are radically changing
There is an urgent need to upgrade the managerial cadre.
Concept of Selection
Selection is the process by which an organisation chooses from a list of Applicants, the person who best meets the criteria for the position available taking into account the current market conditions.
Criteria for selection:
The Selection process
It is assigning the higher level job to an employee from within and this upward movement is called as promotion.
The advantages of merit rating rating system of promotion are:
Better utilization of resources at higher level
Competent employees of resources at higher level
Works as a golden handcuff regarding employee turnover.
Encourages the employees to acquire the new skill/knowlwdge for all round developmet.
Disadvantages of merit based promotion are:
Measurement of merit is highly difficult
Many people distrust the management are subjective
the techniques of merit measurement are subjective.
Also there promotions based on Seniority
It relates to mobility, which is restricted to movement of an employee from one job to another job in the same level of hierarchy.
Types of transfer:
Reasons for transfer
1. Temporary transfer
Company Initiated transfer
Training and Development
Training and development is an important component of every organization’s survival strategy. Technology is changing very fast and so is the information explosion terrific. Under such circumstances individuals as well as organization explosion terrific.
Training and development is very important
To face the tough competition in every field and survive gracefully.
To accept and adapt to the changes in the field of science and technologies.
To upgrade and sharpen one’s skills that are needed to do the job successfully.
To learn the correct way of doing things the right way.
For an improved job performance and consequently better job satisfaction.
The objectives of training of the employees :
To increase productivity
To Improve quality
To help a company fulfil its future personnel needs.
To improve organizational climate
To improve health and safety
Identification of training needs
The need for training arises due to various reasons-
To impact to new entrants the basic knowledge in their present positions by exposing them to the latest concepts, information and techniques and developing the skills they will need in their particular fields.
To assist employees to function more effectively in their present positions by exposing them to the latest concepts, information and techniques and developing the skills they will need in their particular fields.
To build up a second line of component officers and prepare them to occupy more responsible positions.
To broaden the minds of senior mangers by providing them with opportunities for an interchange of experiences within and outside with the view of correcting the narrowness in the outlook that may from over specification.
To impact customer education for the purpose of meeting the training needs of the corporation that deal with the public.
To reduce supervision time, reduce wastage and spoilage of raw material and produce quality products.
To reduce defects and minimize accidents rate.
To absorb technology in production
Sources of identifying training needs:
Employee Training methods:
On the job training
Job Instruction Training
Off the job training
Classroom Lectures or Conferences
Performance counselling is the very important activity that helps the employee to know themselves better. Performance counselling refers to the help provided by the a manger to his subordinates in objectively analyzing their performance. It essentially focuses on the analysis of performance and identification of training and development needs for bringing about further improvement.
Features of Performance counselling
Conditions for effective counselling
A climate of trust, confidence and openness is essential for effective counselling.
It is necessary that the subordinate should feel free to participate, without inhibition or fear, in the process of review and feedback.
The main purpose of counselling is employees development .
Performance counselling phases
Processes in Performance counselling
Pre- Interview preparation
Objectives of above activities are:
Recruitment and selection: recruitment is concerned with developing a pool of candidates in line with the human resource plan.
Selection is the process of matching people and their career needs and capabilities with the jobs and career paths. It ends with the ultimate hiring of a candidate.
Training and development: This involves identification of individual potentialities and helping in the development of key competencies through a planned learning process.
Performance counselling: It refers to the help given by a manger to his subordinates in objectively analyzing their performance.
By implementing these objectives to the British gas company as a HR, I can assure for the development of the human resource that leads to the development of the company. The main goal of the company can be achieved with these objectives.
Guest Model by David Guest
The author say “ This model of HRM has 6 dimensions of analysis”
The model is prescriptive in the sense that it is based on the assumption that HRM is distinctively different from traditional personnel management(rooted in strategic management, ect.)
It is idealistic, implicitly embodying the belief that fundamental elements of the HRM approach (essentially those of the Harvard map) such as commitment have a direct relationship with valued business consequences.
However , Guest has acknowledged that the concept of commitment is ‘messy’ and that the relationship between commitment and high performance is difficult to establish. It also employs a flow approach, seeing strategy underpinning practice, leading to a variety of desired outcomes. The employee relationship is viewed as one between the individual and the organization.
Methods of HR Planning:
The four methods generally used to determine the requirement of personnel are:
Annual estimate of vacancies
Long rage estimates of vacancies
Fixed minimum man specification requirements
Specific position estimations
Annually, the top management team and the directors must examine their organisation structure and its adequacy for the assigned functions as well as its adaptability for changes anticipated in the near future. This analysis or audit included a review of the current vacancies and probable future changes in the organization’s personnel.
For example, adequate forecasts of organization changes can indicate the number of executive positions which will have to be filled as well as the duties and responsibilities for such positions. From this can be ascertained the nature of training and development required for the existing staff to fit these positions adequately. A crystallization of the future job requirement can help selection of persons who should participate in the future job requirement can help selection of persons who should participate in the management development programme. In this way, manpower planning is helpful in both the selection and developmental activities. It ensure that adequate persons are selected well in advance so that they may be developed for the organisation.
Steps in human resource planning:
The need and importance to anticipate and give for future manpower requirements made manpower planning a important function now in the area of personal function or staffing. In large organisations, where a personnel department exists, this function is naturally performed by such department as a staff function.
Manpower planning can basically be done by observing the following three steps:
First Step: Identify the period for requirements of forecasting for manpower in the future and forecast the resource required at the end of such period.
Second Step: Available number at the commencement of the period, the expected wastage through deaths should be detected, resignations, retirements and discharges. These would provide the manpower available from existing staff at the end of the period concerned.
Third Step: In case of shortages, decide how such shortages, decide the level of shortage that are to be met and whether any training or development facilities would be required for this purpose.
Dr. Ram Tarneja emphasises, “ Management can ensure control of labour costs by avoiding both shortages and surpluses of manpower through proper manpower planning.” The author also says “ Under- estimation either regarding quality or quantity of manpower requirements would lead to shortfalls of performance, whilst over-estimation would result in avoidable costs to the organisation”
Example of Human resource planning at LARSEN & TOUBRO LTD.
In this company, there is no sophisticated or detailed manpower planning done covering the current and future needs of the entire organization. What is done is that different units of the organization are asked to present annually their manpower requirements for the properly trained and developed to take care of changing technology and the future needs of the company.
Planning job requirements and descriptions
An important step in human resource planning consists of planning job requirements. The requirements of a particular job must therefore be
Delineated through a minute study of the duties to be performed in that job. A job analysis has first to be made to secure the relevant information about the job.
Job information helps in many ways and more particularly for the following:
Adequate salary structures
The skills required in different jobs must be analysed in terms of the job description following the job analysis. As the aspect of management skills is more difficult, it will be dealt with in some detail.
Desirable Managerial Skills:
Collier views a manager as one who can enterprise in its total complexity, the ultimate values in his opinion being the ability to integrate viewpoints, the capacity to adapt to change and the ability to go beyond the normal value structure.
Features of Human Resource Development
M.M.Khan: The author says “ HRD is the process of increasing capabilities, positive work attitudes of all people working al all levels in a business undertaking and increasing knowledge”
Nature and scope of human resource development:
The dynamic environment that an organization works demands regular updating of job requirements. These are necessary to ensure a continuous flow of qualified persons and their knowledge for the change job. Scope of that can be understood with reference to the following points:
HRD is a system always made up of mutually dependent parts. Therefore, things like the design of the systems cannot be treated in isolation. The design must take into account its linkage with other parts of the organization.
HRD is a proactive function. Its function is not merely to cope with the needs of the organization, but to anticipate them and to act on them in advance in a continuous and planned way.
HRD aims at developing the capabilities of all line managers so that they can increasingly handle functions like industrial relations, rewards and punishment, performance appraisal etc.
HRD emphasis on building the right work culture in the organization. The work culture should identify, nurture and use the capabilities of the people.
HRD emphasis a lot on the need to motivate people. It considers informal organization, job enrichment, participative management, ect,, as motivating forces.
HRD considers that it is always the better utilization of human resource leads to improved performance. This in turn results in improved job satisfaction and morale.
3) Importance of human resource development:
HRD is a system of introducing changes in the work culture and work environment without dislocating the functioning of the organisation. The following points highlight its importance:
Competent employees: HRD helps in making people aware of the skills enquired for job performance. There is greater clarity of work norms and standards. This results in a more competent work force.
Role Clarity: HRD encourages communication between work- teams. People not only understand their roles better but also become aware of the expectations of the other members of the team.
Committed work force: People become more committed to the jobs because rewards are administered more objectively through the HRD process.
Greater trust and respect : By encouraging communication, HRD helps in developing greater trust and respect for each other. Employees become more open and authentic and new values can be generated easily.
Synergy effect : effective communication, participative management and stress on team-work produce synergy effect within the organisation.
Breaks resistance to change: HRD makes people better equipped with problem-solving capabilities. This not only makes them proactive but also brings readiness on their part to accept change.
Facilitates HRP: HRP generates a lot useful and objective data on employees that facilitates human resource planning.
Other benefits: The overall impact of HRD is observed in terms of hogher productivity, cost effectiveness, growth expansion, diversification and increased profits.
By adopting the above HR Planning and development methods in the British Gas it is possible to acquire and utilize employees in an economically most useful position.
In the current globalized scenario, the employees have the option of not only choosing which company they want at, but also which country they want to work in. The average stay of entry level employees is seen to be between 1.5- 2 years. With the majority of the work force below the age of 25, retaining talent promises to be a tough battle of the work force below the age of 25, retaining talent promises to be a tough battle where only the fittest will survive.
Performance Review Guidelines:
The Performance appraisal system should been revised. It is simple and brief, but care has been taken to retain the positive aspects of the earlier system. In line with policy on Men, the appraisal system should now be seen as an instrument for improving current performance and the development of the potential in each human resource.
The appraisal must be based on observed performance and behaviour on the job which requires specific facts to be recorded before arriving at qualitative appraisal of individuals.
The new Systems pre-supposes the practice of goal and target setting as a part of Corporate/ Divisional/ Units plans.
Attention is also focused on the potential and development of each individual. Action taken on the Training & Development plan for the current year and drawing up the same for the
following year are an integral part of each appraisal.
Assessment Routes :
The general principles are
1st Assessor – immediate line Superior of the Assessee.
2nd Assessor – Superior of the 1st assessor
Roles Assessors and Reviewers :
The 1 st Assessor has the prime role of recording major appraisal details. The 2 nd Assessor is mandatory only if he/she is in position to record comments from personal knowledge of the performance of the assessee. The role of the reviewer is more in the nature of monitoring the appraisal system to ensure uniformity of applicationthe evaluation of the assessee’s performance. The reviewer will ensure that all Section are filled in, and that evidence is sufficiently complete.
Major Responsibilities and duties:
Job responsibilities/duties should be indicated as precisely as possible including the key result areas and the assessee’s role in these areas. It is necessary to indicate, in the space provided, how long the assesse has been in his/her present job.
Performance and its assessment :
In the part (a) of this section ‘objective set for the relevant year with specific facts preferably in quantitative terms ,should be recorded’. These can be derived, in most cases, from Corporate/ division/Unit Plans which have been mutually agreed between the assessor and the assesse. In the next column, ‘Achievements’ the actual results obtained should be recorded, without any attempt at qualitative assessment , thus ensuring factual presentation of observed performance. Similarly, “ Reasons for Variance should be written in an objective manner, taking care that only genuine constraints rather than excuses’ are recorded”.
Critical factors and Attributes:
A managers prime role is to ‘Make Things happen’. To discharge this role successfully he must imbibe, sustain and improve upon a series of critical factors and attributes without which any management process remains incomplete and ineffective.
Each of these factors are also defined in the Appraisal form itself in order to facilitate your assessment and which can be brought out in sharper focus only through the recording of supporting data.
Based on the analyses above ways can be recommended through which performance measurement and monitoring at British Gas can be improved.
EXAMPLE PERFORMANCE REVIEW:
This is vital document for GROWTH AND DEVELOPMENT OF PEOPLE.
Name______________________ Designation____________ Grade_______________ Divn/Dept_____________ Location_________
Reasons for variance
Comments by 2nd Assessor II(b) Assessment of performance
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