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Human Resource management can be identified as a well-organised method of utilizing employees in achieving two main goals within an organisation. The first goal of HRM is to effectively make use of the talents and abilities of employees and use them to achieve organisations corporative objectives. Secondly to ensure that individual employee is satisfied with working and working related environment. There are seven management functions in human resources management which can be identified as staffing, performance appraisals, compensation and benefits, training and development, employee and labour relations, safety and health, and human resource research.
Key HR activities in Nando's
Recruitment and selection process of a company is one of the key activities of its human resources department it allows management to decide and regularly amend the behavioural characteristics as well as strengthens the workforce. Not only at Nando's, this activity works through the entire business world as an excellent solution for utilising people where people is one of the largest investments in an organisation. In addition systematically planned recruitment and selection process will bind the right people in the organisation with its cooperative objectives and drive the organisation towards success. These people are cautiously selected and recruited according to their skills, competencies, qualifications and experience.
Training and Development
As stated in the earlier paragraph humans are one of the greatest assets in an organisation where train and educate would benefit the organisation in a very positive way. Organisations need to carry out training and development activities in order to gain long term success despite of the money and time. The main objective of this process is to identify the learning needs or loop holes an organisation and fill those with the clear training and development methods. Via training and development employees will be able to gain knowledge, skills, or attitudes through formal or informal means as well as to perform with an improved approach.
Compensation is one of the most important entities of HRM where many organisations misinterpret as just the salary of employees. However compensation plays a much bigger role within the company which combines the employee and the co-operate advantage together. In addition compensations and benefits works as a strategy which is a part of the human resources function. The compensation strategy highly influences the cost of the organisation and bad decision may cause loss of funds and loss of employee engagement. Successful compensation package contains non monetary, direct and indirect elements rather than monthly wages of an employee.
Key HR Activities and HRM at Nando's
Recruitment in Nando's
When considering the recruitment, many aspects of the employment process are benefited by the cautious management of the human resources techniques. From the HRM perspective of the first principle of the recruit process is to conduct an analytical study of the required job and decide the essential facts for that job. In other words the HR management needs to clearly identify the tasks need by the job and prepare a job description for the benefit of applicant and selector. To be fair and consistent, Nando's recruit employees internally and externally where it practices accurate HRM methods throughout the procedure. In addition the company is constantly responsible to achieve its recruitment objectives via excellent HRM.
The HR department of the Nando's believe that all Nandocas (Nando's Employee) has the ability to become a Patrao (management of Nando's). The company can be recognised as a faster growing restaurant chain in UK and therefore the HR department has already recognised the potential of some employees as part of their internal recruitment programme in order to fulfil the growth of the company. Management opportunities are continuously provided within the company as a part of development programmes as well.
From the external point of view Nando's HR department has given extra freedom to restaurant Patraos to choose their own team to suit the local need. In addition the company getting bigger every year has created more job opportunities every time where it made the company one of the best career providers. Nando's prioritises the local people to make up the local version of Nando's especially in UK where it recruits many Nandocas nationwide continue sly. Robby Einthoven the co founder of Nando's UK explains that it is his personal commitment to provide frame of by bringing people in to Nando's and use the maximum contribution to the company Growth. (www.nados.co.uk /careers)
From the legal point of view, Nando's employment the mostly concentrate on the equal opportunities policy. The availability of career opportunities is widely distributed in order to create diversity among Nandocas. Company believes that this policy can bring many new ideas in to the team.
Training and Development at Nando's
By becoming the one of the best places to work for in UK Nando's proves that how valuable its training and developments policy can be. As a company who regularly concentrates on every single employee, Nando's provide award winning solutions for Nandocas and Patrao to easily walk upward on the job ladder. As Guest (1987) explained the incremental function of HRM is central on the emergence of better educated workforces and higher individual expectations and the company works accordingly to the theory where the it provides a excellent training structure.
Nando's management places a strong emphasis on staff motivation, believing that happy employees provide good customer service. This theory is visible as customers waking in to any Nando's restaurant where Nandocas treat customers with utmost happiness which reflects the company's successful development strategy. In addition Nando's training solutions provider has designed a framework especially for managers to learn and practise how to give and receive effective feedback in order to boost team performance, and how to develop a culture in their restaurants that promotes communication and teamwork.
The career development programme uses at Nando's allow both Nandocas and trainees to understand their true potential. Through the L&R department different types of development programmes are designed to each individual where the trainees will work with other Nandocas and company legends within the first three months of their employment and a self development workshop after words. This system has been extremely successful within the company and targeted objectives were easily met from the potential identification perspective.
Compensation at Nando's
According to Sims (2006), the aim of compensation practices is to help organizations establish and maintain a competent and loyal workforce at an affordable cost. Compensation and Benefits usually plays the role of the HR Controlling, setting the rules and procedures around the salaries, variable pay and benefits. At Nando's the area concerning compensation connects company with the competitors of the related market and sets various polices which make the company is a better place to work and get paid better. The direct and indirect compensation is clearly visible at Nando's. Apart from the basic salary which is based on the skills and experience the salary related allowances and other bonuses can be identified as the company direct compensations. In addition every Nandocas is entitled to a 20% staff discount card, free staff meals, 28 day paid holiday, Christmas dinners, entitlement to buy staff shares and family fun days. Nandocas who are working in management positions are given the opportunity to attend annual conference as well usually in international locations.
Different Type of HRM models helps the actual management to interact with the organisation accordance with its situation. Many theoretical HRM models are invented by managers and institutes in order to ease this process over the past time. Two of the main models are described below.
Guest's HRM Model 1989
David Guest (1989) has developed a more prescriptive theoretical framework, reflecting the view that a core set of HRM practices can achieve higher individual and organizational performance.
The Main idea of the Guest model is that the application of key HRM practices through a logical method with a view to achieve successful goals such as high commitment, high quality and task flexibility, will result with an extremely high individual performance. Furthermore Guest argued that this theory can be practised in any part of the organisation where outcome will be visible in the entire organisation. This Model is highly suitable for Nando's and key HRM practises are listed below.
The Harvard Model of HRM
"The model notes how HRM policy choices and outcomes are influences by a variety of stake holder interests and situational factors. Effective HRM involves managers in an appropriate balancing of the claims of the various interest groups while responding to almost constant changing in situational factors"(Taylor, Doherty & McGraw 2007). Harvard school of Beer (1984) who developed the Harvard framework coordinates the interests of an organization's stakeholders while directing the organization's primary activities. Framework of the Harvard model consists of six basic components.
Human resource management policy choices
Feedback through which the outputs flow directly into the organization and to the stakeholders
Societal well being
HRM policy choices
Human resource flow
Work force characteristics
Business strategy and conditions
Laws and social values
Task 2 - HR Planning Development
Human Resource planning is a procedure which guides and leads the members of an organization who will be responsible for implementing the strategies necessary to fulfil its mission and reach its vision. Main objective of the HR planning is to get the right number of people with the right skills to do the jobs at the right time with a right cost. Conversely HR development includes opportunities as employee training, employee career development; performance management which creates a framework that allows employees to ease there career development.
From Nando's perspective, ensuring that the right people is in the right job at the right time includes three processes that contain strategic plan-based forecasting of personnel requirements, skills inventory to analyse personnel supply and buddy system to match personnel requirements with the supply. The paragraphs below evaluate these Planning and development areas in Nando's furthermore.
Strategic Plan-Based Forecasting of Personnel Requirements
Nando's challenge consists of five major values which the company always concentrate in order to reach its objectives. In addition the company believes that the human attitudes and behaviours that welcomed in the company can boost up its journey in many ways. Strategic planning of the human resources at Nando's are manly based on the human quality requirement that can support Nando's values. In addition The Strategic planning is highly supported by the fact of ongoing growth programme of the restaurants. This current programme requires various types of human resources such as Nandocas, leadership and qualities in order to maintain the company standards. Through the Nando's HR team the required HR demands are forecasted regularly based on the number of stores to be opened. These personnel requirements are aligned with projected sales revenue of the new store, ror example if 25% of revenue is projected to a new store 25% of increase in personal requirements will be projected.
Skills Inventory to Analyse Personnel Supply
With parallel to the personal requirement the supply of human resources at Nando's highly concerns the present work force and the changes may apply to it in the future. According to the Nando's online 2009 there are approximately 6000 Nandocas are employed over 200 restaurants in 2009 and it has been projected that at least another 840 will be needed by the end of 2010. Additionally 24% of management increase will be needed regardless of internally or externally. In order to raise this management positions Nando's HR team highly focuses on the current Nandocas to determine who can be promoted as managers. One of the main studies use for this process is the skills inventory. Nando's give attention to Goal, Current Reality, Options and Will of every Nandocas using the GROW model. This process clearly points out the strengths and weakness of the staff, where company later arranges training and development structures to improve the quality of personal supply. However this skills inventory process has its limitations from the Nando's perspective. Nando's HR Director Julia Claydon reviled the fact that some of their rivals are resorting to poaching or stealing Nandocas to work for them since it devalues the integrity of any organisation (Thomas, 2008).
Buddy System to Match Personal Requirements
A buddy system can be defined as an arrangement in which persons are paired, as for mutual safety or assistance. In order to match the personal requirement needed with the personal supply Nando's employs the buddy system in its restaurants. Each restaurant has two buddies who are in charge of training at that outlet. The buddy system in Nando's focuses on learning how to run & manage objectives, be interactive and fun training sessions. This system assists the HR department to easily appoint the Patraos from existing Nandocas. 80% of supervisors in Nando's UK are products of this buddy system, where its success lead them to not only manage the restaurants but also to be a part of the Nando's growth.
With the use of these development method and being able to train people in professional way, personnel requirements are effectively addressed and Nando's will not experience oversupply of workers. Nando's has simply used the above methods to create a workforce that embrace the values of Nando's at each area. Development is facilitated by the people they know and trust within the environment that is familiar with them, at each store. From the strategic point of view this in line with the goal of Nando's which is the individualism of each store.
Task 3 - Performance
Performance can be recognized as the activity of tracking the way of work are delivered against targets and identifying opportunities for improvement. The link between performance and the HR is very strong and Managing performance requires developing people in the organisation with ensuring that organisational aims are achieved. Nando's as one of the best chosen recruiters in UK concentrate on the performance level of every single Nandocas using many monitoring techniques and the company compensation structure is closely work with its performance strategy.
Practically many organisations in today's business world allocate fair amount of their total revenue for employee compensation. While compensation expenditures are evaluate to determine their effectiveness, performance, the basis of compensation should also be assessed. HR performance is not an exemption and this theory effects on Nando's as well. It may sound bit crafty yet Nando's uses its reputation and uses the market leader strategy to compensate workers. According to Mathis and Jackson (2007), Such strategies are directly connected with the performance management and enables Nando's to attract and retain workers with required capabilities as well as to obtain the opportunity to enhance the productivity of the workers.
Nando's identifies the strategic role of HRM the people management as the key concept of company's success. Through the given objectives and responsibilities the HRM strategies are achieved and the company ensures new methods are correctly implemented in order to attain the commercial targets. The most important part of linking HR strategy and the people is to provide high quality HR services to the business. People management issues are systematically implemented through all the levels of Nandocas and therefore performance is measured at every level.
One of the major performance measuring methods at Nando's is 360-degree appraisal. Bohlander and Snell (2009) describe 360-degree performance review as the process of gathering feedback from a review panel of eight to twelve people which include co-workers, supervisors, team members, subordinates and sometimes customers. 360 degree appraisal is a powerful progression process and quite different to traditional manager-subordinate appraisals. Rather than using the usual one to one method it uses more free and stand alone structure. With the use of this method together with other staff surveys Nando's create custom made training modules to suite different types of the Nandocas. Although this method provides a unique support to the staff development through their own feedback it has a disadvantage of lacking the objectivity or "not providing what Nando's really want". Therefore the given methods below can be recommended as much improved methods to use at Nando's.
Critical Incident File
Critical incident file is a performance appraisal method where the person in-charge keeps records of negative and positive behaviours of employees, through the entire appraisal period. This method developed with the use of critical incident technique invented by Colonel John C. Flanagan in 1954. (Wikipedia). He identifies the method as a technique of job analysis is used to identify work behaviours that classify in good and poor performance. Usually the Critical incident file includes set of documentation describing various behaviours. Yet this method has a smaller disadvantage that it can favour some employees, due to its personal nature. At Nando's person who's conducting this documentation should be in a higher position than HR department workers who also keeps close relationship with HR in order to eliminate this limitation.
Behaviourally Anchored Rating Scale
This method used to describe a performance rating that focused on specific behaviours or sets as indicators of effective or ineffective performance.