Key importance of human resource management
The utilization of people within an organisation called human resource for that organisation. And when the management of the organisations discuss the function that focus on recruitment, performance management and providing direction for the people called human resource management.
Importance: Human resource management is a practice for dealing with the nature of employment relationship of the decisions, actions and issues that related to the organisation. Also human resource management is a legal practice between the organisation and the employee. The most important site of the human resource management discuss are given below:
The use of planning
The design and management of personal system for employee policy and man power strategy.
Human resource management activities and policies to business strategy.
Seeing the people of the organisation as a strategic resource for achieving competitive advantage.
Apply the government policies in business term.
Discretion and Business Ethics.
Focus on employees and management.
Make an employee trust under management policies.
Make a safe and fairness environment for employees.
Improve the employee under HR function.
Work with team performance.
1.2. Purpose of Human Resource Management activities in Argos ltd:
BACKGROUND: Argos is a unique multichannel catalogue retailer recognised for choice, value and convenience. Who also has known as largest general goods retailer with over 1000 stores throughout the UK and Republic of Ireland.
FOUNDER: The Company founded by “Richard Tompkins” in July 1973.
MISSION STATEMENT: Argos mission statement is “we provide our customers with the best value for money through the most convenient shopping experience”.
OBJECTIVE: Argos is selling large scale of small electronics and toys. They are also sale large amount of household goods and jewellery.
Human resource exists in any size of organisation and human resource management is very much important for profitable and non profitable sector of an organisations. The purpose of human resource management is describing below under analysing the Argos human resource management analysis:
Recruitment the best employees
For employees payroll system
Employees training and development purpose
Identify the organisational legal policy and regulation
For ensuring the best work environment that safe and fair for everyone
For the time management
For the personal cost planning
Improve the management skills
Make good labour relations.
1.2. The contribution of strategic human resource management for achieving the objective s of Argos:
Human resource management help to develop the organisational important sectors by planning, staffing, direction, controlling and organising to achieve the organisational objectives.
Human resource management of Argos ltd is carrying an effective impact for achieving the objectives as a well known multinational company. The human resource management of Argos exist in different sectors of business, are explaining below:
(a) Staffing: there are two functions in the staffing that mostly use in the Argos strategy
• Human resource planning: In this section human resource management first do the job analysis and make a clear vision about the job and position description, then evaluate job requirement for the for the followers.
• Recruitment and select the employees: Human resource management make a selection process, identify the talent, select the talent and motivate them for the role of the organisations.
(b) Training: In this stage human resource management identify the assessment that need to improve and find out a way of processing with using some effective methods of analysis like competency mapping and gap analysis for the training process.
(c) Development: Human resource management identify the potential assessment based on the training process. Then make a development process for the potential assessment that already receives.
(d) Career planning: On the base of the development processes human resource management help to make a career planning by using talent management, which help to make an effective career path management.
(e) Motivation: In this process human resource management make an appropriate appraisal system to motivate the followers, where followers get the knowledge about benefits, compensations and rewards.
(f) Maintenance: Human resource management carrying a significant role in this sector, where human resource management handling some part of human resource are describing bellow:
• Communication: Human resource management use the appropriate way to make a communication between management and followers, directly and indirectly. Human resource management also work for customers, societies, government etc, that’s why human resource management maintaining two way communication.
• Health and safety: human resource management make an effective design and implementing of health schemes with creating awareness and system for safe working environment.
• Relations of follower: Human resource management make a strong relationship to follow the policies and procedures with establishing fairness.
• Legalities: In this stage describe the legal issue of the organisation, knowledge about unions, legalities related employment, health and safety etc.
Policy and regulation
Training and development
Organisation and HR
On the basis of the Argos human resource management strategy analysis it can be said that, by using the proper knowledge of human resource management Argos carrying a good reputation that help to achieve the objectives in an effective way.
2.1. The business factors that underpin human resource planning in Tesco:
Human resource planning contribute the knowledge of human resource for a business decision to provide guidelines for cost control, develop a managers planning, to develop productivity and efficiency by using maximum utilization of human resource.
Tesco business factors that support human resource planning: The business factors of human resource planning are given below by the analysing the strategy of Tesco.
Strategies and objectives
Current business position and report of market fluctuations by doing market research.
Manpower requirements with accuracy of forecasting.
Identify the talent internally and externally.
Maintain the time of positioning with talents.
Effective training and development for the resources.
Human resource planning help to understand the organisational mission, objectives, goals and strategic requirements to achieve the effective target by accessing the existing human resource and their skills and contribution of workforce. Human resource planning provides the knowledge for future business planning and estimate requirement of resources and manpower. Human resource planning work for some additional or depletion demand of human resource such as make an estimate numbers of possible workers, employees transfer one unit to another, sometimes the depletion comes from resignations, dismissals, retirements, continuous illnesses, deaths etc. These part sometimes under control and sometimes there is no way to control. Human resource planning studying to find out the sources to supply manpower, make a way to recruit. Then human resource management use some selection and improvement process for an effective role in specific part of the organisation.
2.2. The human resource requirements in an organisational situation:
The human resource requirements on the basis of the situation come through the personal requirements such as skills, experience, qualifications etc, where identify what skills, knowledge are requires for doing the job well.
Qualification: knowledge about the specific subject by the numbering or grading from the recognised awarding organisations, which make a clear and accurate vision to identify organisational objectives for professional career. It helps to get the knowledge about confidential manner and time management.
Skills: There are many kinds of skills. The personal skills that make confident for an opportunities. The skills, capabilities and attributes can come through many ways like community involvement, workshop, from the life experience, from study etc. Skills that identify the personal strengths and talents.
The human resource requirement comes through two factors that are internal and external factors. For example internal factors work with labour requirement, skill requirement etc and external factors work with demand for labour, government policies etc.
By analysing Tesco human resource management strategy their most current requirement explaining below:
Skills requirement: identify the skills requirement and develop these requirements is very much important to an organisation for the competitive market place. The skills that require for the Tesco business improvement are given below:
Organising and planning.
Improve the knowledge of technology.
Knowledge of self management.
Knowledge of planning.
Government policies: The human resource strategy remains in government policy, which makes a standard system for monitoring legal issues, policies and develops the human resource plan. Employment, training, education, industrial, labour market competition etc these are under government policies.
Employment: now a day’s globalisation has increased the competition for the employment. So in this competitive market place need some effective skills for supporting to get a job, and this is under government policy to improve the skills of countries human resource to provide training, proper education etc.
Labour market competition: In the current market situation labour competition is very high for the credit crunch and globalisation. So government need to use the proper human resource planning for handling the situation, where need to create new job market and make a strong vision for profit for reducing labour market competition.
2.3. Develop human resource planning for Tesco:
Human resource planning is very much needed for recruitment process, retention, employee development etc.
There are some steps for the development of human resource planning is describing below:
Strong knowledge about the business strategy of Tesco:
Understand the key driving forces of business. For example the markets, competition, technology, distribution etc.
Understand the implications of driving forces for the followers of the business.
Identify the people contribution for the business performance.
Develop a mission of Tesco:
Good knowledge to make an appropriate way to develop a mission for future.
To use the followers contribution.
Conduct SWOT analysis:
Identify the strengths and weaknesses by using SWOT analysis.
Work for the weaknesses point considering the current skill and capability.
Create an effective and proper plan by the considering present situation.
Arrange the details of the human resource analysis:
Knowledge about the organisational culture, people, human resource systems and the types of organisation.
Improve the resource which are exists.
Develop the manpower requirement systems:
Create an effective way to improve the recruitment process.
Provide the proper training.
Employee’s re-skilling as an improvement scheme.
Employee development for business develops.
Margining and solution:
Develop the managerial action and elaborate for the important steps of existing assumptions.
Development for the organisation.
Develop the communication.
Employee rewarding systems develop.
Develop the system of manpower planning.
Develop the action plans and create an effective way to delivering in future.
The utilization and the development of the human resource can develop a human resource plan for any organisation.
2.4. Human resource plan can contribute to meeting for the objective of Tesco:
Human resource management is an approach for an organisation to personnel management that work for the employees and communicate with the employees, increase the commitment and identify the organisational objectives.
Human resource planning is the body of shape, function and policies for working environment, and controlling the relationship with the employees, which are very much important for developing the Tesco strategic management process in future.
Tesco grow their business strategy and made their position no 1 retailer in the market place of United Kingdom under report of (Poulter, S.2005). The report considers the human resource management as the purpose of contribution to the objective of Tesco. Tesco contribute the training programs for the employee to get the bigger picture for the business objectives. This model ensures to identify objectives of human resource management for employees training purpose, transfer the knowledge and handling the current business situations.
The implement of Tesco for the human resource plan are describing below:
Training employees: training methods are the key contributions and one of the effective purposes to growth the organisation and this organisational growth depend on employees. Human resource management help to provide a proper guidance for the employees to enable the good performance with efficiency.
Transfer the knowledge: This technique help to adopt the globalisation economy for making strong conception to the employees. The skills or knowledge transfer with rewarding employees help to motivate them for effective growth.
Situational handling: Human resource management help to point out the organisational key factors that trained and award in situational leadership for adapting the employees in an effective way. The employees would be facing different situation and gain different kinds of idea. So understand all this situations the situational leadership need to provide a proper guidance.
A policy of human resource is the creation of the organisational objectives among the people that create an effective strategy for the organisation. The effective strategy provides team building activities, contribution training for the growth, and plan for the achieving targets.
By using this methods Tesco has build their own strategy around the human resource management and using the contribution of employees for getting the bigger picture of Tesco.
This enables to grow the current business position, where the knowledge based on human resources providing additional training and enable the creativity of unique approach for brand positioning.
So study on proper human resource management in effectively business plan of Tesco achieved the no 1 position as a retail company in the United Kingdom.
3.1. The purpose of human resource management policies in Tesco:
Human resource management works with business patterns, activities, partners, people etc.
The human resource management purposes are
Recruiting the best employees.
Training and development.
The organisational legal policy and regulation.
Ensuring the best work environment.
Health and safety
Recruitment: human resource management help to provide job and position description, identify the talents, select the talents and motivate them in Tesco recruitment process.
Paying employees: human resource management an effective way for payroll system with respecting the government policy related this sector.
Training and development: human resource management identify the assessments of the improvement and process these using some effective methods.
Career planning: in this stage human resource management identify a good career planning
With provides all training and facilities.
Health and safety: human resource management design and effective way of implementing the health schemes for the awareness of safe working environment.
Policy and regulation: in this stage human resource management discuss about the legal policies and organisational regulation under terms and conditions.
Work environment: human resource management ensure a fair and friendly working environment under different responsibility.
Legalities: human resource management help to make a conception about legal issue, knowledge about unions, employment legalities etc.
3.2. Impact of regulatory requirement on human resource policies in Tesco:
Human resource management is regulating the HR policy of requirements such as pay, equality, discrimination, contractual terms and condition, data protection, employment rights and responsibilities etc under the government law.
The regulatory work of human resource management in different sections of Tesco business strategy is given below:
Legal framework about pay: human resource management work for right payroll systems and monitors carefully about wedges under rules and it is in
Wages Act of the payment – 1936
Wages Act (minimum) – 1936
Equal Remuneration Act – 1976
Bonus Act of the payment – 1965
Legal employment rights and responsibility: human resource management strongly work for the all legal issues and laws and carries a significant role for the human rights under the law of
The Factories Act – 1948
The Employees Provident Fund Act – 1952
Rates of Contribution – PF, Pension, Insurance
Employee’s State Insurance Act – 1948
Payment of Gratuity Act – 1972
The Workmen’s Compensation Act – 1923
The Maternity Benefit Act – 1961
Discrimination: human resource management work to make sure a fair and the same level of rights for all gender of sex and cultural discrimination for an organisational structure under rules of
Sex discrimination Act 1995/ 1997
Employment rights Act 1996
Impact of the regulatory on human resource management: HRM work with wide range of issue in an organisation
Impact Human resource management activities on payroll system are explaining below
Under the minimum wages Act 1936:
Human resource management make sure the regulation of payment of wages by employer.
Protect workers from irregular payment from the management.
Work for the loss or damage of employee.
Help to make an advances, loans, tax payable, and deduction under court order.
Under the payment of wages Act 1936
Maintain the proper regulation by fixing a date of payment
Under payment of bonus Act 1965
Make sure bonus and basic payment
Minimum bonus 8.33% and maximum will be up to 20%
Paid within eight months.
Under the equal remuneration Act 1976
Make sure the equal payment for man and women
Proper recruitment, promotion and no gender discrimination in payment.
Skill, effort, responsibility under similar condition.
4.1. Impact of Sainsbury’s structure in human resource management:
There are so many theories that make an effective conception about organisational structure.
Weber theories: Max Weber gave an effective theories about organisational structure based on bureaucracy, power and control.
Weber explained the organisational process, control and distinguished between authority and power by defining the responsibility; where he said that authority exist with legitimacy of the power by the rules.
Mintzberg theories: According to professor Henry Mintzberg organisations has five main parts
Make a regulatory work directly with production of products and service
Identify the mission of strategic and deliver in an effective way and also control the people by using power.
Work with strategic apex and operating the mission by the use of delegated formal authority.
Tech no structure:
An analyst who work for identifying the organisational objectives and the work relation with people.
Design, change and preplanning the way of development.
Provide training to the people.
This is an exist unit that support staff to provide training and operating working flow to achieve the goal.
Human resource management is carrying a significant and an effective impact for any organisational structure. By analysing the above theories the organisational structure means the way of people are organised. The structure of Sainsbury’s strategy is culture, service, job satisfaction, customer relation, projects etc. These all sectors have a unique part of human resource management.
4.2. The impact of Sainsbury’s culture on the management of human resources:
The culture consists to share the value of an organisation. The organisational Act with perfectly by proper using the strength of a culture.
There are some theories available for the organisational culture, one of the theories known as Gods of management by Handy.
Handy classify the organisations into four parts, where the culture depend on organisation structure, history, technology, environment etc.
The four cultures he classifies are
Task culture and
Power culture: Handy describe the power culture as a web, where he reflects the concentration the power of family owned business, which is strictly showing the responsibility of family members given to personalities rather than expertise to create power structure of the web.
Power culture has some significant role such as decision making, create situations etc.
The role culture: describe as a Greek temple, where apex of temple using for decision making and the pillars of the temple are carrying the functional units of the organisation.
The role culture works with job descriptions, procedures, rules and systems of the organisation.
The task culture: task culture much more dynamic than others because it involved in extensive research and development activities. This is a changeable culture depend on situation and identify the future needs. Task culture has close connection between departments, communication and integration, functions and specialities.
The person culture: is characteristic of the model of management, where the individuals of the structure make a path for objectives. This is not the appropriate culture for business strategy, may be suitable for self-help group.
Sainsbury’s culture: organisational culture field of the idea, which explaining the Sainsbury’s culture sectors such as experience, attitudes, personal and cultural values, psychology and beliefs of an organisation.
The culture of an organisation related with the unique configuration which are describing values, beliefs, norms, behaviours and the function of the manner of groups and individuals that help to complete the job role. The concepts the organisational culture make external environment awareness with the people in the workplace. In this point the significant knowledge of the business which have particular collective and interactive needs of human capital. Human resource management help to expansion the on-going businesses to use the existing cultures and resources. Then establish the human resource function to monitoring the human capital culture.
Human resource management is very much needed for the exploratory stage of the business for investigation, data gathered from semi-structure etc.
4.3. The effectiveness of human resource management is monitored in Sainsbury:
Human resource management is a strategic approach for the organisational performance which involves with designing and implementing policies, practices and human capitals such as employee, collective knowledge, skills, behaviours etc for achieving the Sainsbury’s business objectives.
Effectiveness of human resource management in technical and strategic sectors of Sainsbury: human resource management work for an effective way to approval of the organisational activities that socially constructed environments. Human resource management make an expectation for behaviour with legitimacy in the stakeholders. Human resource management identify the stakeholder’s activities to spread throughout the organisation. External stakeholders include government who regulate the employment practice and this is under human resource management activities. HRM works in an organisation through the stakeholder’s expectation such as recruitment, selection, performance, employee training, compensation, benefit and strategic development. So HRM carries the occupational specializations by reflecting the high level of knowledge in organisational programs with judging the effectiveness.
HRM suggest for improvement of human capital with the competitive advantage based on organisational resources. The competitive advantage of human capital helps to improve the production process by the human resource. HRM makes an extra approach for strategic development of talent which reflecting an effective designs, empowerment, long-term competitors strengths and weaknesses for making the unique pool of human capital.
4.4. Justified recommendations to improve the effectiveness of human resource management in Sainsbury:
HRM help to change the business patterns in an effective way of developing performance.
Improve the effectiveness of HRM in Sainsbury come through strategy and performance development. The effective criteria of strategic patterns development are describing below:
Operation by manager activities:
Improve the employee attitudes.
Improve the organisational culture to the employees.
Improve the procedures and policies.
Improve cultural related HR programs.
Rewarding employees based on performance and behaviours.
Identify the business development issue applying HR strategy methods of stakeholders.
Develop the leaders in new generation.
Identify the new business strategy, discussing the critical HR metrics.
Redesigning the structure for improving strategic objectives.
Identify the talent that need for the improvement of business.
Emergency responder activities:
Work with different situation.
Instant respond for current needs.
Instant respond for the managers problematic issues.
Respond for the employee and manager needs.
Employee relationship activities:
Sort out the employee competition issues under organisational environment.
Handling the conflicts between the employees.
Handling the conflicts between the managers.
Skills participate for the organisational changes.
Solve the political problems for the business development plans.
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