British Gas Business Essay

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British Gas is a British owned company. It a part of Centrica Group. They provide Gas, Electricity and home repair services to many customer's in and around England. Its an UK's leading energy and home service provider. And its the best of among other providers.


Human Resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets -the people working there who individually and collectively contribute to the achievement of the objectives of the business. As a HR Director in British Gas will concentrate on three effective functional areas which associated with HRM as follows:

Job Analysis.

Recruitment and selection.

Compensation and benefits

The main purpose of human resource management is to create and to keep the balance between the firm's goals and the interest of the employees.


Job analysis is the systematic process of determining a job's duties and responsibilities, its relation to skills, job and performance based upon the working conditions. In British Gas, in a year more than 9000 people getting recruited and trained. Giving correct position to the right employee is being important to achieve the firm objective.

Job analysis methods:

There are several methods of job analysis:



Critical incident technique(CIT)


Employee recording

Usually an analyst should not follow one method for job analysis, a combination of methods is more appropriate.

Job Description:

In BGS, Its a responsibility of an HR to tell about the job, duties and responsibilities to the employees. It has to be relevant and accurate.

Components of the job description are

Major duties to be performed

Percentage of time devoted to each duty

Performance standards to be achieved

Working conditions and possible hazards

Supervision and subordination

Machines and equipments used in the job

Job specification:

Job specification is a document contains the minimum qualification of the person to work on the particular organization. Following Items are requirements

concerning skills

knowledge of business

Customer orientation

Interpersonal skills/team player

Ability to influence others


Planning ,organizing and time management


Recruitment is the process of attracting individual

- In Time

- In exact numbers and

- With correct eligibility

And encouraging candidates to apply for jobs. Identifying productive sources of applicants and using suitable recruitments methods are essentials to maximize recruiting effectiveness and efficiency.

Recruitment is a part of work force planning. It means part of planning and action to improve the productivity of the organization. The need to recruit a diverse engineering workforce is seen as critical by BGS. It plans recruitment to ensure it has to socially inclusive workforce. They are recruiting both male and female employees. For example To attract more female employees they recruit many women as employees . The British Gas academy has won an award for women science and engineering as well as national award from the Council for Registered Gas Installers (CORG).

Recruiting gas engineers of the right level is important. Candidates should be at least 17 years old for apprenticeship. Have a minimum of four GCSEs at grade C or above and hold at least provisional driving licence. They should improve there recruitment process, Its not only academic qualifications, they should be able to show some aptitude for customers . I.e. : Able to listen them patiently and have to respond them accordingly.

BGS should use an online application form. They will decide the applicant based upon certain questionnaire. Online form will help to choose the role a person is best suited to.BGS does not take applicants with red ratings as further and they are not fit to be a valid customers as per British gas rules. As mentioned candidates must show the evidence of qualifications, ID and driving license.

Recruitment Process:


The purpose of selection is to identify and employ the best qualified individuals. Selection is a process to select the correct employee who will be matching the required position. Depending upon the experience and eligibility selections are mainly made.

There are several factors influencing the selection:

Legal considerations

Labour market conditions

Speed of decision making

Organizational hierarchy

At the BGS assessment centre the qualifications is much upon competency and skills. Skills are the personal skills that may likely affect the customer experience who is working in fields. British Gas engineers should be polite to their customers. These are personal qualities that have a direct impact upon customer perception. Core competencies involve team effort, interpersonal skills, helping other team mates, responding to their quires and motivating factor.

BSG has 3 Rounds in selecting suitable candidate as follows:

Interview will base around questions relating to the completed online valued based questionnaire.

Candidates are required to demonstrate customer service skills in role play situations

Finally there will be a manual dexterity test involving a wiring exercise.

The total scores from the three part assessment will help BGS to decide who receives a job offer. Candidates will be notified of the outcome within 14 days .All the candidates can receive feedback which will helpful in improving their skills.

The candidates who offered a job, BGS will be providing the usual job benefits including a vehicle to reach customer place and a competitive starting salary. The new recruits then o on to benefit from BGS comprehensive programme of training through its academy.

Recruiting and selection of staff is an expensive process. By following a robust selection programme in this way, BGS will able to ensure it gets right people with right skills.


Compensation is the total of all rewards which employees get in return for their services. In BGS , should follow 3 compensation methods.

Direct financial Compensation: It consists of the amounts the employee receives in the form of salary (basic), wages, commission and bonus. Equity in Direct financial compensation is 1) Equity in the context of financial compensation means fair pay treatment for employees. A fair day's work for a fair day's pay.2) External equity exists when firm employees are pain comparable to workers who perform similar job in other firms.3) Internal equity exists when employees will be paid accourding to relative value of the job within the organization. 4) Team equity exists when employees are paid according to the relative value of their jb with in the same organization

Indirect financial compensation: These are not direct compensation from the company. Some examples are insurance and other programs for health, safety, security and general welfare. Measures of Indirect financial compensation as follows : 1)Unemployment insurance: If employees lose their jobs , they should receive an unemployment compensation which depends on their last salaries/wages and on the length of continuous employment. 2) Health benefits: It includes health care, dental care and vision care. 3) Pension insurance fund: In BGS every employee has to pay a percentage in statutory pension insurance fund. At the age of 65 he/she gets the retirement benefits. 4) Retirement plans: BSG employees pays voluntarily a part of his income ina retirement or saving fund. At the age of 60 or 65 he /she get an amount of retirement income which depends on the investments success.

Non-financial compensation: It consists of the satisfaction that a person receives from the job itself or from the psychological and /or physical environment in which the person works. In BSG employees can draw satisfaction not only from their work but also from the job environment. BSG environment includes

Good working atmosphere and congenial co-workers

Competent employees

Appropriate status symbols

Working conditions

Food services

Flex time

Job sharing



HRM Models play key roles in formulating HRM strategies: It serves as guidelines to companies on to what approach they will use with their employees. BSG should use both hard and soft HRM approach which will create effective employees with best implementation of HRM.

The Hard Model (Michigan school model) which emphasizes on treating employees in achieving the organization strategy. BGS practice this model monitor investment in employee training and development to ensure it fits with the firm's business strategy. This model helps in improving the effectiveness if HRM in increasing productivity. Michigan model also assumes that HRM will respond to the external and internal environment appropriately and a contingency approach to HRM. It's based n strategic control, organizational structure and systems for managing people. This motivates BSG employees and concentrates most on managing human assets to achieve strategic goals.

The Harvard model (Soft model) proposes that people can be dealt within four human categories.

British Gas which follows this model emphasizes long term benefits of acting on stakeholder interest and situational factors and ensures that employees were involved in work and have more opportunities.

Categories as follows:

Employee-influence which refers to the amount of authorisation, responsibility and power of voluntarily delegated by and is compatible with the purpose and interest of management.

Element of resource flow which refers to decision on recruitment, selection promotion, career development and fair treatment

Reward system is concerned with intrinsic and extrinsic rewards such as the sense of purpose, achievement and challenge, bonuses, insurance and flexible working hours

Arrangement of people, providing information about the activities

Task 2: HR planning and Development Methods:

In BSG to expand the base organisation with 9000 employees the planning and developments methods should be followed as discussed below

Human Resource planning is the process of identifying the man power and decide the number of workers who are needed for that particular work to be completed. Following are the factors to be considered.

Human resource planning includes four factors:

Quantity: How many employees do we need?

Quality: Which skills, knowledge and abilities do we need?

Space : where do we need employees?

Time: When do we need the employees? How long we need them?

HR planning Process:

A requirement forecast is an estimate of the employee numbers and the kind of employees who are required that particular task. Before human resource requirements can be projected, the demand for the energy gas and the services by BGS should be forecasted first. Forecasting requirements provide BGS managers with estimation of how many and what types of employees will be required to render the services with customer satisfaction.

Availability forecast is an estimate of the numbers and kinds of employees the organization will have got at future dates. The availability forecast is a process of considering incomings and outgoings during planning period.BSG can estimate availability forecast so that it can avoid wastage of resource time and investments

Human Resource forecasting technique:

Zero based forecasting technique: Its a way to calculate the future of the organization needs. Employee's who are required to improve the organization and the no of employees required. Vacant positions can be filled by justifying.

Ideal Approach: While taking decision -maintenance, production, contract, technology should kept in mind while assessing human resource in organization

Mathematical Models and simulations also be used to forecast the human resource in the organisation


Human resource development is the main component for helping employees to develop their personal and organizational skills , knowledge and abilities. It not only consists of training and development but also individual career planning, career development and performance appraisal.

Training is designed to provide learners with knowledge and skills needed for their present job.

Development involves learning that goes beyond today's job , it has a more long term focus. It prepares employees to keep pace with the organization as it changes. It prepares employees to keep pace with the organization as it changes

Career Planning is an ongoing process whereby an individual sets career goals and identifies the means to achieve them. The major focus of career planning should be on matching personal goals with opportunities that are realistically available.

Career Development is a formal approach used by the organization to help employee in gaining skills and experiences needed to perform current job and future jobs. It's more important to maintain a motivate and committed workforce.

Training and development activities have the potential to align employees of a company with its corporate strategies

Training and development Process:

Three most important planning and development methods to be followed in British Gas as follows:

Performance Review planning and development

Workforce planning

Performance management program

Performance review planning and development:

The performance review planning and development applies for all the employees in the BGS Organization. It aims to provide positive feedback on employing more than 9000 staff, assist them in work load planning and enhance their activities and help them in performing task to reach BGS goals and policies. Best Practices can be implemented in the organization to review planning and development process. To implement Best practices we can follow the automated solutions including:

Iterative Review Process:

Automation makes it easier to route forms, individual performances more effectively and reliably in review process.

Cascading Goals:

Goals can be achieved by the individual's responsibility. BSG Performance experts have to agree that cascading and aligning goals across multiple managers creates a shared accountability that is vital to a company success. BGS should create a automated application will simplifies the task of establishing shared goals and ensures that employees are rendering service to the customers with in delivery time.

Workforce Planning:

Workforce planning is the process of judging a company's current situation and forecasting labour needs. This planning help in managing any training program and recruitment process to ensure the company has the correct staff in place. HR of British gas conducts a survey to predict the growth of the organization. This plan will estimate the amount of engineers to be recruited for the upcoming years in order to improve the performance. In BGS, requirements for the workforce is estimated based on 2 criteria. First are the customer's in contract who have service agreements and next is the customers who can assist others through calls regarding certain specific issues. Last three years British Gas need for engineers has expanded and recruited more employees. Employees' skills should be trained and updated. Health care and safety are important in the energy gas industry. And also engineers should be trained well in technically up to date and manager should alerts workers about the change of technology in the current market through mail.

BGS engineers require suitable people for promoting to higher level like management jobs. HR managers should be able to form a team who are coordinate together and work in order to improve the productivity of the organization.

Performance Management Program:

HR needs to revise the new policies which enhance the future development of the BGS which as to be like

Performance review planning and development policy

Employee training method and support policy

Rewards and recognition for the performance policy

All the above polices should be followed by BGS to enhance the performance of the employees in the organisation.

Effectiveness of these methods in achieving the BGS objectives:

Performance review planning and development program:

It gives best feedback to improve the performance

It helps in planning team work and work load to be shared among the teams to deliver the order in time.

It computerises the system, so that orders can be placed and delivered with high customer satisfaction.

Workforce planning:

This planning gives the accurate need of employees.

Delivery of time

Motivates employee's personal goal with BGS goals to achieve success.

Operational planning process.

Performance Management Program:

It helps to develop and implement user friendly atmosphere.

To identify the individual skills and capability and motivates with the strategic and organizational goals of the company

Task 3: Performance Measurement

Performance is a system which reviews and evaluates an individual's or team's job performance. Evaluation of performance will provide input to take decision such as promotion, transfers and termination. Evaluation helps to identify training and development needs. Performance evaluations can be used as criterion against which selection and development programs are validated. It will helpful to pinpoint employee skills and competencies that are currently inadequate but for which programs can be developed to remedy.

"In order to improve something you have to able to change it. In order to change it you have to be able to understand it. In order to understand it you have to be able to measure it" - An expert

An effective performance measurement system gives useful, credible information for assessing employee's performance. Capacity, quality, outcomes of the efforts taken are to be measured.

Six reason to conduct Performance measurement in an organisation:

Setting Goals, Developing objectives


Assigning accountability

Improving work quality

Tracking progress

Reporting out

Annual stock taking

Performance measurement can contribute to the effective services

What needs to be evaluated?

Three most popular sets of criteria are as follows:

Individual Task Outcomes:

Management should evaluate an employee's task outcomes. With the help of task outcome managers should identify the quantity produced, work completed and the outcome of the production. Accordingly, Service person who works on BGS should be assessed on overall item delivered in his or her territory and number of accounts established.


It's difficult to identify outcomes directly from employee's action. We can identify the group performance but a member of that group cannot be easily evaluated. Only a team leader can identify the work completed of that employee. In such cases it's not unusual for the immediate managers to evaluate the employee's behaviour. Behaviour of the single person can be identified by his/ her manager who can evaluate his outcomes and productivity.


Traits like having a good attitude, confidence, dependable,and experience can give the outcome of their productivity. These positive traits are to be frequently used in the organisations as criteria for assessing an employee's performance

Methods to measure employees Performance:

Quantity: The number of units processed or sold is a real objective indicator of performance. If quantity increase quality will be decreased, should be careful in placing too much quantity

Quality: The quality of the work can be measured by several ways. The percentage of the task outcome and the market rate for the product, customer satisfaction can be used to measure the quality.

Timeliness: How fast service or work is performed without making customer delay. In BGS it's a number of orders delivered to the customer per hour.

Peers: Peer evaluations are the most reliable sources of appraisal data. Peers are more close to the action. Daily interactions provide peers with a comprehensive view of an employee's job performance. Using peers as reporting raters results in a number of independent judgement. Managers can offer only a single evaluation but peers can provide multiple appraisal performance. On the other side peer evaluation can suffer from co workers to evaluate one another and based on friendship

Self Evaluation: Employees evaluate their own performance with values such as self-management and empowerment. This evaluation gets high marks from employees and make work performance discussion with managers and emploees. However self-evaluation is frequently low in agreement with superior manager ratings.

360-Degree Evaluations: This evaluation gives the overall performance of the team members, managers and all the employees. Even we can get the employees of the other departments. 360-degree evaluations are mostly consistent with evidence that employee performance varies across context and people behaviour on different circumstances. So the use of multiple sources is more likely capture the variety of behaviour accurately.

Immediate Superior: In most of the organisation performance evaluation to be conducted by the immediate boss. This process is by nature top-down and does not encourage the employee's active participation. Drawback is with many of today's organisation using self managed teams, telecommuting and other devices that distance bosses from their employees, so superior will not be most reliable judge of that employees performance

British Gas can achieve its high performance by following 360-degree evaluation. Managers in BGS can easily collect the feedback from the customers, peers and from co-workers. It helps to identify the employee performance, lacking area, skills and talent of the individual. BGS should follow the basic principle are to be used by leaders to transform their organization into high commitment models of management. It includes

Building Trust among employees

Encouraging changes

Measuring what is important

Ways through which performance measurement and monitoring at the British Gas can be improved:

The fundamental purpose of performance measurement is to provide insight into operations and to support planning. BGS can improve the performance measurement by building an effective performance measurement system. It should include following six principle

Clarity of purpose



Regular refinement

Robust performance indicators


Clarity of Purpose: It's more important to understand who will use information, and how and why the information will be used. Stakeholders in BGS with an interest in, or need for, performance information should be identified which help them to make better decisions.

Focus: Performance measurement should be focused in the first instance on the priorities of the organisation-its core objective and service areas in need of improvement. This should be complemented by information on day-to-day operations. BGS should learn how indicator affects behaviours, and build this knowledge into the choice and development of their performance indicators.

Alignment: The Performance measurement system should be aligned with the objective setting and performance review process of the organisation. There should be links between the performance indicators used by BGS managers for operational purposes.

Balance: The overall set of indicators should give a balanced picture of the British GAS performance that should reflect the main aspects, including outcomes and the employee's perspective.

Regular Refinement: Performance measurement should be kept up to date to meet changing circumstances. Employee performance should be valued in regular basis so that information about the employee can be maintained.

Robust Performance: Performance measurement system should be sufficiently robust and intelligible for their intended use. Independent scrutiny, whether internal or external helps to ensure that the system for producing the information is sound. Detailed definition is essential; which will gather day to day details of the employees.