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Human resource management is a strategic and logical approach to the management of an organization towards the achievement of its objectives. Boxall and Purcell(2003) suggest that "Human resource advantage can be traced to better people employed in organizations with better processes together". This assignment is based on how HR impacts on organizational performance, and an emphasis on strategic management of people to integrate between business and HR strategies. "the impact of human resource management on performance has become the dominant research issue in the field"(Guest, 1997, p263). It also concern with the areas of human resource management like organization design & development, human resource planning, recruitment and selection, development and training, employee reward and relations, health & safety and others matters concerned with the employment relationship. The last part of assignment will address that how the HR function and human resource planning plays a significant role to increase value, competitive advantages and helps organization to achieve its strategic goals considering long and short term requirements.
The HRM activities enable the organization to achieve its objectives by taking initiatives and providing guidance and support on all matters relating to its employees. The aim is to ensure that management deals effectively with every thing concerning the employment and development of people, and the relationships that exist between management and the workforce. As Boxall and Purcell (2003) "HRM does not belong to HR Specialists". The human resource management consists on varieties of activities and key among them are based on organization design, organizational development and role design. Each of them have their own characteristics like organization activities caters to develop an organization in a way that encourages integration, cooperation, operates flexibly in response to change and provides for effective communication and design making. "Organizations have many options when designing their HR practices" (Jackson et, 1989) Organizational development is related to stimulating, planning and implementing programmes designed to improve the effectiveness with which the organization functions and adapts to change; advising on the development of work processes that will promote motivation and commitment. In the approach to HR there are fundamental differences as 'hard' and `soft' version. The 'hard' version places little emphasis on workers' concerns and soft version having business performance as its primary concern.
Performance appraisal is an important activity of HRM and used to manage and measure performance. It emphasizes development and the initiation of self-managed learning plans as well as the integration of individual and corporate objectives. It is natural process of management, not a system or a technique(Flower, 1990) Performance Appraisal can play a major role in providing for an integrated and coherent range of human resource management processes which are mutually supportive and contribute as whole to improving organizational effectiveness. It is mostly carried out by line managers and is important for them to understand their role in management.
The objective is to achieve a shared understanding of performance requirement and cover all the important aspects of the job.
Objectives should be SMART
T= Time framed
There are five major elements:
Measurement - It depends on assessing performance against company targets and objectives.
Feedback - providing information to the individual on their performance and progress.
Positive reinforcement - It is based on positive criticism about what have done and what can be improved.
Exchange of views -honest exchange of views about what has happened and how appraises can improve their performance.
Agreement - Understanding about what needs to be done to improve performance generally and overcome any issues raised in the course of the discussion.
Performance appraisal process always be introduced with great care and while planning the necessary areas should be covered.
(1) What is to be done
Key result area
Agreed results to be achieved
Joint review of results achieved
(2) How it is to be done
Knowledge and Skills
Manage customer service
Manage continuous improvement
Personal Development Plan
Key result area / competence
Method of meeting need
Review of achievement
Performance Appraisal Methods
Performance appraisal management is a continuous and flexible process that involves managers and those whom they manage acting as partners within a framework that sets out how they can best work together to achieve the required results. It focuses on future performance planning rather than on retrospective performance appraisal.
Methods vary considerably but its typical main features are as follows.
Set Performance Goals
360-degree feedback has been defined by Ward(1995) as: The systematic collection and feedback of performance data on an individual or group derived from a number of the stakeholders on their performance".
London and Beatty (1993) have suggested that the rationale for 360- degree feedback as follows:
360- degree feedback can become a powerful organizational intervention to increase awareness of the importance of aligning leader behaviour, work unit results and customer expectations.
360-degree feed back recognizes the complexity of management and the value of input from various sources
Recruitment is a process which create link in between employers and job candidate. The aim should be to obtain at minimum cost the number and quality of employees required to satisfy the human resource needs of company. According to Edwin B. Flippo, "recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization".
The Importance and Purposes of Recruitment:
By using most appropriate source to attracts and encourages more candidates to apply in the organisation.
Comprehensive approach to the selection of best candidates for the organisation.
Determine present and future requirements of the organization in conjunction with its personnel planning and job analysis activities.
Recruitment is a process which starts from requirement and sourcing of candidates till the selection and obtaining of candidates. Recruitment helps towards strategic advantage for organization. A suggested recruitment process is as follows:
The first thing is to identify the demands which should be specified in the recruitment programme, which is derived from the human resource plan and these demands should be checked to ensure that they are justified.
For recruitment the job description should be set out with the basic necessities, overall aim and objectives of job and main activities or tasks carried out. The pay, benefit, terms and condition will also be included, as well as special requirement such as mobility and travelling.
A basic approach is to set out the requirement of person specification on the basis of competencies, qualification and training, experience, specific demands, organizational fit and candidate expectations. As Roberts(1997) suggests:"The benefit of taking a competencies approach is that people can identify and isolate the key characteristics which would be used as the basis for selection, and that those characteristics will be described in terms which both can understand and agree"
When the requirements have been agreed there is various way of analyze the approaches. The most suitable and familiar are fivefold grading system by Munro Fraser (1954) and seven point plan by Rodger(1952).
Attracting candidates is a primarily matter of identifying, evaluating and using the most appropriate sources of applicants. There are many ways of sourcing the candidates but first consideration should always be given to internal candidates. To attract the customer the most obvious method is advertising. Objectives behind this activity are to attract attention, create and maintain interest and stimulate action.
Managing the Response and Short Listing
After receiving the fair number of replies, the most important thing is to manage the response and short listing. The sequence and step required for these processes are as follow:
List the application
Standard acknowledgement letter to each applicant
Comparison with job specification
Short list for interview
Draw up an interviewing programme
Candidate invitation for interview
Review the remaining possible and marginal for reserve
Holding letter for reserves and rejection letter for remaining candidates
The reason of interview is to obtain and assess information about a candidate which will enable a valid prediction to be made of his or her future performance in the job in the comparison with the predictions made for any other candidates. Interviewing therefore involves processing and evaluating evidence about the capabilities of a candidate in relation to the person specification.
The interviewing arrangements depends on the procedure being used, which may consists of individual interviews, an interviewing panel, a selection board or some form of assessment centre. The arrangements of interviews are based on following pattern:
The candidate should be told about interview time and place
The interviewers or interviewing panel should have been well briefed on the programme
Comfortable private rooms should be provided for interviews
During interview the candidate should be given some briefing about company and job
Candidates should be told what the next step will be at the end of the interview.
Follow up studies should be carried out, comparing the performance of successful candidates in their jobs
Conducting Interview and Decision Making
Careful preparation is essential and this means a careful study off the person specification. The preparation should include making notes of the specific questions the interviewer needs to ask to establish the relevance of the candidate's experience and the extent to which he or she has the skills, knowledge and level of competence required. Interview can be segregate into different parts;
The welcome and introductory remarks
Obtaining information about the candidate
Provision of information to candidates about the organization and the job
Question answering from the candidates
Closing the interview with the indication of the next step
The final stage is the selection of procedure is to confirm the offer of employment after satisfactory references have been obtained. Cook (1993) refers to as the classic trio consists of application forms, interviews and references.
The recruitment gets affected by internal and external forces. Normally the internal factors controlled by company and external factors cannot be controlled by organization. The factors affecting Internal and External factors are
Factors Affecting Recruitment
Human Resource Planning
Size of firm
Cost of recruitment
Growth and expansion
Supply and demand
Motivation is an important feature of HRM and important area of business research. Motivation is concerned with factors that influence people to behave in certain ways. Well motivated people are those with clearly defined goals who takes action that they expect will achieve those goals. Arnols, Robertson and Cooper (1991) listed three components of motivation are:
The Process of Motivation
Motivation can be described as goal- directed behavior. People are motivated when they expect that a course of action is likely to lead to the attainment of goal and valued reward.
The process of motivation
This model suggests that motivation is intimated by the conscious or unconscious recognition of unsatisfied needs. Needs create desires to achieve something which established goals and then action are taken to achieve this goal. If the goal is achieved, the need will be satisfied and if not then the same action is less likely to be repeated. The process of repeating action is called reinforcement or the law of effect(Hull, 1951).
Types of Motivation
Motivation can be take place in two ways and are identified by Herzberg, Mausner and Synderman(1957):
Intrinsic Motivation - The self generated factors that influence people to behave in a particular way or to move into particular directions. such as develop skills and abilities, challenging works and opportunities to advancement.
Extrinsic Motivation - to motivate the people certain action is done. These include rewards, praise and punishments.
There are different theories to approach the motivation. The most famous are:
The famous motivational theory is Abraham Maslow's hierarchy of needs. True motivation always is achieved by fulfilling higher order needs.
Basic needs are the needs of the body and physical survival.
Security needs is concerned with physical safety, security of employment survival and protection of any arbitrary action
Group needs are concerned with an individual's need for love and affection. The majority of people want to feel that they belong to a group.
Self stem is type of needs which are used on an individual's self-respect. Employees always look to be recognised as individuals by company, to receive praise for their work, and to have their efforts noticed.
Self fulfillment got its place at the top of his hierarchy needs and is concerned with personal development and individual creativity. By using fully their talents and abilities someone can meet these needs.
The degree of satisfaction obtained by individuals depends largely upon their own needs and expectations and the working environment. But it is not necessary that a satisfied worker is a highly producer or high producer is satisfied worker.
One of the famous HRM models was made by Michigan School (Fomburn, Tichy and Devanna, 1984). Model referred to as the hard HRM. This model emphasizes to achieve the organization strategy by training and development to ensure that it fits with company business strategy. The effectiveness of HRM in Michigan model is increasing productivity. The Michigan model considered as hard HRM because of it's based on organizational structure, strategic control, and systems for managing people and consists of four generic processes or functions that are performed in all organization. These are:
(Source: adapted from CJ Fomburn, N M Tichy and M A Devanna (1984) Strategic Human Resource Management, Wiley, New York)
Another famous HRM model was developed by the Harvard school of Beer et al(1984) was called the Harvard Model. Beer and his colleagues believed that "Today many pressure are demanding a broader, more comprehensive and more strategic perspective with regard to the organization's human resources". They are stated that "Human resource management involves all management decisions and action that affect the nature of the relationship between the organization and its employees" The Harvard model has considerable influence over the theory of HRM.
Long term consequences:
Individual well being
Social well being
HRM policy choices:
Human resource flow
Work force characteristics
Laws and social values
The Harvard framework for human resource management
(Source: M Beer, B Spector, P Lawrence, D Quinn Mills and R Walton(1984) Managing Human Assets, Free Press, New York)
The advantages of model according to Boxall(1992) are: The incorporates recognition of a range of stakeholder interests and recognizes the importance of 'trade-offs' between the interests of owners and employees. Others are based on employee influence which refers to responsibility, authority and power, voluntarily with the purpose and interests of the management and influences on management's choice of strategy.
On the basis of study it can be concluded that the soft model is more appropriate and advisable for industries within the service sector while the manufacturing is better to use the Michigan Model for increased production.
Human Resources Planning
Human resource planning has always been used by companies and organization to achieve its strategic goals and to ensure that the right job is done at right time by right person. It is generally concerned with the resources to business needs in the longer term, although sometimes address shorter term requirements. Human resource planning also looks at broader issues relating to the ways in which people are employed and developed in order to improve organizational effectiveness. Conceptually the human resource planning should be integrated part of business planning. In past HR planning was focused on the short term and dictated largely by line management concerns but changes in technology, international competition, demographic shifts and environmental instability are changing the need for and the nature of human resource planning.
Aim of Human Resource Planning
The aims of human resource planning in any organization depend largely on its context.
Attract and retain number of people
Anticipate the problem of potential surpluses or deficits of people
Develop a well trained and flexible workforce
Reduces dependence on external recruitment
Improve the utilization of people by introducing more flexible systems of wwork.
The Process of Human Resource Planning
The illustrated process plan of human resource planning is linear but it can be circular. As Hendry (1995) suggests "be circular rather than linear, with the process starting anywhere in the cycle." The degree to which human resource planning can be carried out systematically will depend on the nature of the organization. If the future is predictable, then formal planning might be appropriate but if it is not then the approach have to rely on broad scenarios.
Business strategic plans
The process of human resource planning
(Source: Michael Armstrong, The hand book human resource management practice 9th edition)
Workforce planning helps an organization to meet its future demand by estimating its future workforce requirements and sources of potential employees. Effective workforce planning is needed to achieve business objectives, identifying the types and quantities of skills. Workforce planning helps to develop strategies for short down the gaps between present workforce and the workforce required to complete the business objectives. It provides a sound basis for developing an effective workforce strategy.
It is always be good to forecast accurate workforce size to put a good human resource plan. Keep(1989) expressed " To obtain the right basic material in the form of a workforce endowed with the appropriate qualities skills, knowledge and potential for future training". Key factors to consider in this forecast are:
Business acquisitions, joint ventures, strategic partnerships
Opening of New Stores
Changes in process or introduction of new technology
Cost reduction program
Employees leave the company or get promotion to other positions.
Demand forecasting is the process of determining and identifying how many people will actually be needed. It can be grouped into six major categories:
Workforce planning always plays an important role in business to meet its future staff. The idea is to train existing staff to take on new responsibilities and to recruit new staff to fill vacancies.
Learning and Training
Training is the process by which a person acquires new knowledge, skills and capabilities in order to carry out a task or job. The learning and training theory is concerned with how learning takes place in organization. It focuses on collective learning but takes into account the proposition made by Argyris(1992) that organizations don't perform the actions that produce the learning. It is essential to consider carefully the objectives of the training. Scarborough and Carter (2000) defined "that is able to discover what is effective by reframing its own experience and leaning from that process". It benefits employees in several ways:
â€¢ It increases sense of ownership in the business.
â€¢ Help to meet the needs of internal and external customers and become more planned, productive and flexible in their approaches.
â€¢ Improves skills and abilities in different areas such as decision-making which helps them to be more effective and efficient.
There are varieties of training techniques that can be used. Most of them are based on types like:
On the job techniques
Off the job techniques
On or off the job techniques
Evaluating Learning and Training
It is always important to evaluate training, in order to access its important and outcomes. Hamblin defined training as" Any attempt to obtain information on the effects of a training programme and to assess the value of the training in the light of the information"
Karkpatrick (1994) suggested four level of training.
Level 1: Reaction
Level 2: Evaluating Learning
Level 3: Evaluating Behaviour
Level 4: Evaluating Results
"The Group's ability to sustain a competitive advantage over the long term will depend in large part on the continuous development of the Group's employees. For this reason the Group is committed to providing an environment which values continuous learning and which provides learning and development opportunities both within business units and across the group" (Cadbury Schweppes)
The Tesco Leadership Framework focuses on three key major themes to guide suitable behavior in employees. The framework helps to identify those employees with the potential to be the 'best leaders of the future'.
Further Level of
Five Factor Employees
Development is the provision of opportunities for individuals to develop skills, knowledge and attitudes. It helps them to achieve personal objectives.
Development is all about extending and helping the person to grow their abilities.
â€¢ identifying and agreeing development needs
â€¢ attending workshop and development days
â€¢ collecting evidence of achievements
â€¢ using the feedback they receive to improve performance and review their development plans.
â€¢ helping to put together the Personal development plan
â€¢ coaching and guiding the trainee as needed
â€¢ review performance regularly to ensure the trainee gets the best from the training
â€¢ providing feedback
The planning and implementation of learning and development programmes is based on an understanding of learning needs.
Tesco's programme for long term development offers workshops focusing on both leadership behaviours and operating skills. This allows trainees to carry out their own analysis of progress. Personal development helps to become more positive, productive and valuable to the organization and produce long lasting competencies. Retaining staff is extremely important because recruiting new staff is much more expensive than retaining existing staff. Development helps to increase the level of employee motivation.
Every business has to evaluate its training and development activities for financial and non-financial reasons because organization wants to know that investment in time and money is producing improvements. Employees always look for positive feedback in order to gain confidence and this automatically reflects in their approach to life and behaviour. Tesco provides tools for highly structured monitoring and evaluation of training which includes timetables, task, measures and checklists. Employees measure their personality development and improvement in performance after training. SMART objectives are necessary for Activity Plans.
â€¢ Specific â€¢ Measurable
â€¢ Achievable â€¢ Realistic