Importance of the human resource management


Human Resource Management in the organization is the organizational function that deals with issues related to human in the organization (People) such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

Ivancevich and Gluck defined HRM as "Human resource management is the function performed in organizations that facilitate the most effective use of people (employees) to achieve organizational and individual goals".

Personal management and Human resource

A personnel management is that part of management concerned with people at work and with their relationships within an enterprise and is more administrative in nature, also personal management dealing with payroll, complying with employment law, and handling related tasks. Human resources, on the other hand, are responsible for managing a workforce as one of the primary resources that contributes to the success of an organization.

The main difference between personnel management and human resources is recognized as human resources is been described as much broader in scope than personnel management. Human resources is said to incorporate and develop personnel management tasks. A primary goal of human resources is to enable employees to work to a maximum level of efficiency.

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Personnel management can include administrative tasks that are both traditional and routine. It can be described as reactive, providing a response to demands. The difference, human resources management engage is ongoing strategies to manage and develop an organization's workforce. It is proactive.

See Appendix 1.b

Historical Development

In olden days the work force or the people ( human resource) in the organization is called as 'labors' in the economy and is called as one of the factors of production.

Organization needs a HR planning procedure

To control costs and numbers employed.

To rationally plan recruitment.

To provide redundancies and retirements.

To provide structure education, development and training

To allow a degree of succession planning

To adapt more quickly to ever changing circumstances

Human Resource manager in penguin leisurewear

Human resource planning procedure in penguin leisurewear

Planning, with the help of which the management ensures directing employee efforts towards group and organizational goals attainment. It is necessary to set immediate and long- term goals, and to choose strategies of their achievement, therefore for the company HR department planning, can absorb right number of people with right skills at the right time. Furthermore, at this stage manager can consider where they are now and what they want to accomplish to identifying customers. Also, for HR Manager if they don't plan properly, they are not able to find suitable people for correct positions therefore overall organizational goals they dream will be lost soon.

HR planning process

Business strategic plans

Resourcing strategy

Scenario planning

Labour turnover analysis

Demand/supply forecasting

Work environment analysis

Operational effectiveness analysis

Human resources plans





Work environment

HR management at penguin leisurewear is normally involving recruitments so they are concerned to think cadres issues plan. Likewise, they have introduced a research saying in which period employee tend to resign the company. As shown in the Hr planning process above the first step that penguin leisurewear use in their HR planning procedure is the business strategic plan to demanding future activity levels and initiatives demanding new skills. As a result of the next step that they use in the planning procedure, they have been able to obtain right basic material with appropriate qualities, skills, knowledge for future training. Also, they could recruit more capable people in to their company than other garments factories being rivals.

Then, the scenario planning considered as one of the major aspects of the HR planning procedure. Here, they assess where their company is going and through this system, they acquire a better understanding of the possible situations that may have to be dealt with in the future.

Next element included in their planning procedure is demand forecasting. (see Appendix 4)

Objectives of Penguin leisurewear

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Short goals objectives were pricing is going very high therefore they are trying to manufacture products at the minimum cost, and to become best professional in garment industry field. The long term an objective is to provide the maximum satisfaction for their customers and become the best garment industry in the world .Furthermore, they explained the social activities being conducted for the best of their society, including the extension of the company capacity.

Recruitment approach at penguin leisurewear

Recruitment and selection is major function of human resource department and the overall aim of the recruitment should be to obtain at minimum cost the number and quality of employees required to satisfy the human resource needs of the company. Penguin leisurewear manufacturing clothes has established a considerable recruitment approach inside the company because they know that is the first step towards creating the competitive strength and strategic advantage for their organization.

Indeed, the first step they use to recruiting people for several departments is:

Identifying vacancies in different fields, as soon as possible.

As they identify vacancies, they prepare job description and person specification.

Then, they advertise the vacancies using few methods (organization campaign, announcing, oral).

After that, the HR management being more impartial in recruiting procedures manages the response of applicants willing to join with penguin group being a great place to work. Also, they are responsible to both arranging interviews and conducting interviews.

Final result of the interviews conducted will be decision making in which HR management can find out the best suitable people to fulfill the vacancies available in the company.

Recruiting methods used in Penguin leisurewear

Internal recruiting

In Penguin Leisurewear Company they use both internal and external recruiting. For internal recruiting, vacancies are often advertised on notice board. The main advantage is employees know about their culture and organization so they need only less cost to settle them in the organization (When they know about the culture and organization it has a two-side effect. On the one hand the employee is familiar with the organization's policies, customs, and procedures. At the main time, the organization has established an employment history showing the workers formal and informal skills and their abilities) and furthermore, the disadvantages for HR manager was unhappy in being unable to gain a new knowledge from the current workers through internal recruitment.

Internal recruiting refers to the filling of job vacancies from within the business - where existing employees are selected rather than employing someone from outside. A business might decide that it already has the right people with the right skills to do the job, particularly if its training and development program has been effective. (See Appendix 5)

External recruiting

External recruitment is when the business looks to fill the vacancy of the organization from any suitable applicant outside the business. External recruiting are divided into two named informal and formal. Informal recruitment methods have a narrow labor market than formal methods. Informal methods include recruiting former employees, hiring people .Formal method of external recruiting which includes recruitment advertising, internet recruiting, employment agencies, public job service agencies means searching the labor market for candidates with previous connection to the firm.

External recruitment is used in Penguain Leasware when the company looks to fill the vacancy from any suitable applicant outside the business. Instead of Formal methods of external recruiting which includes, internet recruiting, employment agencies, college and universities, they only use advertisement, announcing, oral system and organizational campaign. Recruitment campaigns are very important. They have to address normal people who are living in rural area. If they use advertisements, it may not be successful 100% therefore they have to knock others doors through this way, then their recruitment procedure will be as effective as they had hoped. Indeed, oral system is more effective because HR management can easily increase the number of people who want to join with penguin garment. To complete this recruitment method, what they have to do is they have to only give a small clue regarding the vacancies available inside the company, and as a result of this, may be their vacancies needed to be filled will be successful.

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Outside people bring in new ideas

Longer process

People have a wide range of experience

More expensive process due to the advertisements and interviews required

Helps bring "fresh blood"in the organization

Selection process may not be effective enough to expose the best candidate

New approaches come with a person from outside the company

Usually more cost than internal recruiting

The new guy shakes up the things and sometimes this is what the company needs.

Many negatively impact morale and cohesion

Selection procedures used in penguin leisurewear

To select employees, organizations will use one or more of a number of selection devices, including;

application forms,

initial interview,

reference checks,


physical examinations and


The methods used to select employees for penguin garment factory are personal interviews and IQ tests for lower level employees. In personal interviews, they talk face to face and provide the best opportunity for the establishment of close contact rapport between the interviewer and the candidate. IQ test, differentiates individual's base their mental rather than physical capacities so they have to answer the papers given within a given period of time .Often time given to answering questions is between 30- 45 min . Through IQ tests, they can however identify whether a person can do a job or not whereas they can't predict whether a person will do a job.

Accuracy of selective methods used in penguin leisurewear




0.7 Personal interviews


0.5 Ability test

0.4 Bio data





-0.1 Graphology

Job evaluation for penguin leisurewear

Job evaluation is one of fundamental importance in reward management. It means that when evaluating a job the only concern is the content of that job in terms of the demand on the job holder.

Advantages of job evaluation scheme for Penguin Company

Provide a relatively objective and unbiased view of the worth of jobs

Help to prevent future anomalies, which can cause bad feeling, resentment and demands for parity from those who feel they are undervalued

Provide a transparent approach to valuing jobs

Performance appraisal procedure in penguin

Many organizations use performance appraisal, either directly or indirectly, to help determine reward outcomes. Likewise, penguin leisurewear also measures the performances being done by their employees. They use both subjective and objective measures when determining to evaluate the performances of employees. Basically, in Penguin organization performances are evaluated by respective departmental head but they have certain formats introduced for appraising performances. Anyway, Respective department has to re-comment on the performances being done by employees who are responsible for many tasks in many roles, and also each departmental head has to evaluate how long that the person doing tasks given is being successful. Then, they will decide whether employees doing better performance will be given bonuses, promotions and salary increases or not.

One of the prominent reasons why they use performance appraisal procedure in their company is to identify the poor performers who may indeed require some form of counseling, dismissal and decreases in pay. Also, they often use the most formal structured annual performance review in which supervisors inside the garment factory notice an assessment on each employee performances. Supervisors in the company are frequently responsible to assess the performance of employees .For an example, they have to evaluate the amount of products employees did, and the defects for the products, in the given period of time. When appraising the performances, they specially focus on personal data of employees. Here, they obviously measure the things like the number of time an employee has been absent or late to work, and the number of punishment and disciplinary actions taken against the individuals and extra things he or she added to company. One of the performance measuring techniques that they use is rating scales which require the supervisor to appraise the subordinate according to a number of predetermined criteria.







Performance against targets


Relationship with customers


Knowledge of job


Quality of work


A. in all respects performance exceeds that which is expected

B. in some respects performance exceeds that which is expected

C. performance is equal to that which is expected

D. in some respects performance is less than that expected

E. in many / all respects performance is less than that expected

Also, appraisers in penguin leisurewear use behaviorally fasten rating scales which is more accurate than previous technique mentioned above. Here, they rate the subordinate against predetermined factors which have been identified as important for success. Performance against these factors is then measured in terms of precisely worded performance variables. Following graph illustrates the use of behaviorally anchored rating scales.

Quality of work

Really good, quality work: take a pride in what he/she produces

Usually good but occasional lapses

Often standard

Definitely poor

Dependability and cooperation

Extremely reliable, very cooperative

Generally reliable and co-operative

Sometime sure liable and difficult

Extremely unreliable often a source of friction

Initiative allied to common sense

Handles problems sensibly

Seeks help with problems

Slow to seek help

Waits for guidance

Effort and interest

Always energetic and interested; requires no pushing

Generally ,satisfactory

Requires urging

Lazy ,show no interest


Exceptionally mature

Quite mature

Average, sometimes naive

Very immature

Advantages of performance appraisal for penguin leisurewear

Able to give a feedback on performance to employees and have been able identify employee who need training

Able to indentify document criteria used to allocate organizational rewards

Able to take decisions in salary increases, promotions, disciplinary actions

Can help development of the company and can enrich communication between employee and administrators

Reward management in penguin leisurewear

Reward management involves offering not only base pay, but also an incentive plan and fringe benefits. Levels of reward may be based on different criteria. Some involve;

performance appraisal to determine whether an employee merits a certain reward,

while others may be dependent on length of service,

Type of job, or

Team or

Company performance.

The rewarding system used in penguin is based on cash (cash based rewarding system) which means that employees doing higher level performances are paid incentives. Also, at this stage, they use appreciative letters to evaluate the value of performances being done by employees. Appendix 6

The aim of reward management for penguin leisurewear

Reward people for the value they create

Develop a performance culture

Reward the right things to convey the right messages

Motivate people working inside the company

Help to attract and retain the high quality people the organization needs

Develop a positive relationship between employees

Operate fairly

Apply equality

Operate transparently

Motivational theory to penguin leisurewear

To retain good staff and to encourage them to give of their best, the HRM has to make a good effort and, also employees working in companies are absolutely happy of being given many rewards. Basic financial rewards and conditions of service (e.g. working hours per week) are determined externally in many occupations. Theories that penguin leisurewear uses to motivate employees are Abraham Maslow's hierarchy of needs X and Y Theory, Frederick Herzberg's two-factor theory.

They are giving their attention to the mental and physical well-being of employees. Activities regarded as normal are Schemes for occupational sick pay, extended sick leave and access to the firm's medical adviser, Schemes for bereavement or other special leave, disabled employees temporary or permanent move to lighter work, Provision of canteens and other catering facilities, Provision of information handbooks, Running of pre-retirement courses and similar activities, Care for health and safety legislation and provision of first-aid training.

HR management has realized these three factors (employee education, training and development) are very important to penguin leisurewear in order to develop workers to undertake higher-grade tasks, provide the conventional training of new and young ,Increase efficiency and standards of performance, Identify legislative requirements ,Inform people for induction training, pre-retirement courses


Effectiveness of disciplinary at penguin leisurewear

The HR manager believes discipline is a part of organizational culture. It is more related to organizational culture existing there, and has a less discipline actions compared to other organization.

The penguin leisurewear does not permit smoking at work because they want to improve their effectiveness of disciplines.

While at work, employees can't talk with each other (example-a machine operator can't talk neighbour) until the interval time will be given.

Employees are not permitted to switch on the mobile phones and talk while at work.

They never tend to punish employees for the mistakes they do inside the company but HR management being an integral part for penguin leisurewear counsels them on their faults, as soon as possible.

Grievance procedure at penguin leisurewear

The grievance procedure is to solve the problems arising from both staff and machine operators. The main purpose of HR department that uses this procedure as well as they can is to eliminate the grievances of being a respective department at penguin leisurewear which has been giving more attention to the employees from the begging of the company. They are often doing counseling. As employees get problems for which they can't get recommendation through supervisors, they definitely come to HR department in where they hope a best solution for the problem they are having so ,being a responsible person in solving the problems , what they do first is

Carrying out all reasonable investigations and take all necessary evidences before considering response.

Ask both complainer and offender to meet HR manager in a given time

Then HR Manager try to solve the problem as well as he can, and as a result of techniques he use to solving the problems, he believes the dispute both complainer and offender are having will be vanished

Grievance procedure being used in penguin leisurewear:

Step 1- informal discussion

Step 2 - interview with line manager

The line manager shall:

if appropriate seek the advice of the Human Resources Department

hold the hearing within 3 working days of receiving the request

The company also manage the personal files as well as it can be utilized and can have better opportunity to improve the employees capability that can be obviously used in future development of company. Also these records are to be aware of being caught to violators who are subjective to lawsuits, damages and criminal sanctions. However, if we do not maintain personnel records, we may not be able use information contained within personnel-related documents in any administrative or court proceeding

Personal records help penguin to promote an employee when they want, definitely they will look at personnel records in which all the information about the employee has been mentioned. When taking the disciplinary actions against an employee who was an offender of a crime, they will deem about the personnel file of the employee, and then they decide whether the employee is retained or dismissed. Likewise, when giving additional compensation to employees , transferring and lay offing, they often use personnel records.

Exit procedures in penguin leisurewear

Penguin leisurewear uses a few exit procedures, and they are as follows




Exit Interviews

Legal frame work on employment protection in penguin leisurewear

According to the regulation introduced by Labour department, they cannot recruit people below 16 years.

Have to pay EPF, ETF

Have to maintain wages level according to the labour laws

Advantage of having good legal frame work

Management at penguin has been able to stop the harassment and discrimination coming from manager, staff member and client.

Through this legal frame work, they have been able to fulfill the health and safety hazards, unpaid overtime pay, wages and benefits.

Redundancy in penguin leisurewear

While at the interview, HR manager being responsible to take action against the redundancy said "at this time we don't have any problems with redundancies because employees' requirements are being fulfilled. Besides, the reasons why we don't have problems with redundancies are we are managing our employees as well as we can, we have a good demand for the products being manufactured, we use modern technology, we have a big profit compared to other existing garment factories . Unfortunately, if we will have to consider about the problems related to redundancy, indeed we will only focus on fair criteria such as skills, qualifications, standard of work performance, attendance/disciplinary record, length of service, Work experience. Being impartial, we never concentrate on unfair criteria such as sex, religion, subjective personnel option. Besides, as alternatives to dealing with redundancy, we will restrict the recruiting, and reduce the over time."

A report on human resources practices in penguin leisurewear