New Approaches Of Human Resource Management Business Essay
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Human resource Management is the backbone of organisations growth in this changing business world. Organisations are having are a large budget and a separate development for HRM due to the internationalisation and globalisation phenomen. The importance of HR in the UK has increased during the past years, which has led organisations to review their policy on handling human resource which in some case is the core competence of the organisation. The term HRM and HR have largely replaced the term personnel management in managing people in the organization.
Historical development of HRM.
HRM has developed over time from mere administrative role to modern role of strategic development. Strategic HRM has gained both credibility and popularity over the past decade, employee are considered as part of the overall strategy
Human Resource Mgt.
Nature of relations
- Contractual basis
-vision and mission
-Employees as partners in the org.
Relation of power and Mgt.
- Top management full authority
-Power shared between top, middle and lower mgt.
-Bottom up approach
Leadership and Mgt Role
- Task oriented
- focus on procedures
- punishment for non compliance
-focus on shared vision. Corporate culture and vision, trust and flexibility.
Pay policies and Job design
Based on skills and knowledge
-ability to perform the job as per contract
-Division of labor no value added
-Job design functional based
Designed to encourage continuous job performance and improvement
-linked to value added
-Job design teamwork and cyclical based.
Tesco which operates in a fiercely competitive sector has been successful by using a human resource led business strategy. Although the analysis above show more coordination between employees and employers, the fact is the working environment is more competitive for both parties.
On one hand there's organisation like Tesco who is investing a huge budget for the HRM whereby the cost will be recovered through there sales that is being paid by the general public.
On the otherhand employees which are with less job security don't have much choice other than to show there commitment and as well having transferable skills with the changing employment market.
Human resource practitioner.
HR people are the strategic database of organizations.
HR Practitioners acts as the bridge of communication flow between Mangement and employees. Sometimes heavily involved in the operational role, handling grievances and discipline while new demands are made from them. It is quite difficult to measure the effectiveness of the HR as it is so complex.
The HR Practitioners should be able to:
Add Value - demonstrate their impact on the business
Recruitment and retention - Aware of labor market, recruitment source and key talent retention.
Succession planning- Clear workforce development plan - Turnover, change to business (technological or legal)
Motivation and Engagement - Demonstrate that people make a difference (Employee motivation and engagement).
Employer of choice - To engage the best talent and keep these people engaged.
Source ( Mr Vedula Notes )
Line managers in HR practices.
Line managers are responsible for group of employee normally in the lower layers of management hierarchy and these employee do not themselves have any managerial or supervisory responsibility.
Line Managers Responsibility
Managing operational costs
Providing technical expertise
Work allocation and Rota
Monitoring and checking quality
Dealing with customers/clients
Measuring operational performance -performance appraisal
Line managers Role
In organization like Tesco they a play a vital role in terms of implementing and enacting HR policies and practices. The checkout line managers would be in better position to convince their staff for any overtime or bank holiday shift. As employees feels more positive about the relationship with their line managers. So they are more likely to have higher levels of job satisfaction, commitment and loyalty associated with better performance and discretionary behaviors. Line managers also help in structuring people actual experience of doing a job. They play a crucial role in acting upon the advice or guidance from HR ( Implentation of new legislation - selling alcohol to under ages customers). Line managers control the work flow by directing and guiding the work of others. They also have to report to HR about any changes about the number of employees they need or any leavers to fill the gap for. So they always have to work in collaboration with HR.
A well managed line managers are more likely to go on to lead high performing teams, therefore the support of senior management and action on the continuous development of line managers are critical.
Recruitment and Selection.
Recruitment is the process of Attracting, viewing and selecting competent people for a job at an organization.
HR planning and stages involved in the process.
Human Resource Planning is the process of analyzing an organization's likely future needs for people in terms of numbers, skills and locations. They uses the right recruitment and training techniques to satisfy these needs. It ensures the firm has right number of people, in the right place, with the right skills at the right time.
Tesco need for recruitment arises when there is new outlet opening in the UK and international expansion. There is also leavers , resigners or those who retires to be replaced. Any change in strategy, process and technology might rise to the need of more staff. In Tesco the latest one was the introduction of IT sales assistant in the shop and the self service checkout.
Tesco uses a workforce planning table to establish the likely demand for new staff which are quarterly reviewed. Tesco can adjust staffing levels and Recruit accordingly to meet its strategic objectives, for example, to open new stores and maintain customer service standards.
A Job description sets out
Job holder's responsibility
To whom the job holder is responsible
Asimple description of roles and responsibilities.
A Person specification sets out the skills, characteristics and attributes that a person needs to do a particular job.
These two tools combine to make the basis for job advertisement. They help job applicants and post-holders to know what is expected of them.
Information to attract suitable people
Checking device to select applicants with the right skills for interview
Targets and standards for job performance.
Process for recruitment in two organizations.
Tesco internal recruitment
The process looks at its internal Talent Plan, internal mgt development programme and options which lists current employees looking for a move, either at the same level or on promotion. In case none of them match their requirement Tesco advertises the post internally on its intranet for two weeks.
Tesco external recruitment
Tesco advertises vacancies via their website or through vacancy boards in stores. Applications are made online for managerial positions. The chosen applicants have an interview followed by attendance at an assessment centre for the final stage of the selection process. People interested in store-based jobs with Tesco can approach stores with their CV or register though Jobcentre Plus. The store prepares awaiting list of people applying in this way and calls them in as jobs become available.
Tesco will seek the most cost-effective way of attracting the right applicants. It is expensive to advertise on television and radio, and in some magazines, but sometimes this is necessary to ensure the right type of people get to learn about the vacancies.
IKEA Recruitment Process
Ikea developed global recruitment process, offering higher quality at lower cost by using modern technology. Ikea arrange open days for its future workers where they can chat with existing employees. Ikea recruitment strategy focuses on variety and ethics rather than pervious experience which has keep their turnover very low. Innergy (Agency) helps Ikea managing their recruitment process. BrassRing had been chosen by Ikea as its Global e recruitment platform and was implemented by ARINSO International. The recruitment process was highly manual and non consistent before. This project would allow Ikea to restructure its recruitment processes.
Interview technique and selection methods.
Interview technique is designed to predict future job performance on the basis of applicants' oral responses to oral inquiries.
Highlight communication skills , verbal and social skills
Can assess knowledge
Compatibility between the applicant and the employees
Applicant asked question might help for selection decision .( Pay , Perk or Future studies)
Flexible - to gather more info.
subjective evaluations are made
decisions made on the first impression
interviewers form stereotypes concerning the characteristics required for success on the job
not as reliable as test
Interviewers may be biased to candidate they 'like'
Interviewers may use multiple, leading ,embarrassing and provocative questions
Interviewers may talk more than listening
Interview technique has low reliability and low viability.
Psychometric Testing- good record and liability.
Ability Test - Focus on mental abilities and physical testing
Inventories - Self report questionnaires interests, aptitudes and preferences
E-assessment - Testing anytime and anywhere
Loss of control over administration of test
Assessment centers - Provide fuller picture combining a range of technique
Selection practices and procedures in two organisations.
Selection involves choosing the most suitable people from those that apply for a vacancy, whilst keeping to employment laws and regulations.
Screening candidates is vital within the selection process ens8uring the best candidate fit the gap. Line managers for the job often take part in the interview to make sure that the candidate fits the job requirements.
Tesco - selection external management stages
IKEA recruits people based on fact they will be suitable on the culture. As stated above the selection process is mostly carried out by agency but within IKEA there are development methods which include training, coaching and performance management. As such creating a source of internal recruitment as Tesco has, but the process of external recruitment is carried out by the agencies mostly
Procedures for monitoring and rewarding the employee.
Employers have always monitored their staff in one way or another because they have always needed to be able to check the quality and quantity of their employees' work. Helping to identify the need for training, refresher courses or appraisal.
Job evaluation and factors determining pay..
A method of determining on a systematic basis the relative importance of a number of different jobs used when:
Determining pay and grading structures
Ensuring a fair and equal pay system
Jobs are compared to each other based on the overall worth of the job to the organization.
Very effective for few jobs
Difficult to administer -jobs increases.
Rank judgments are subjective.
Process to be repeated for each new job to be filled.
Jobs are classified into an existing grade/category structure or hierarchy
The grade/category structure exists independent of the jobs.
Classification easier than the Ranking Method.
Classification judgments are subjective.
The standard used for comparison - biases
Some jobs may appear to fit within more than one grade/category
A set of compensable factors are identified as determining the worth of jobs:
The value of job- monetary terms.
Applied to a wide range of jobs.
Applied to newly created jobs.
Judgments are subjective.
The standard used for determining the pay for each factor may have build in biases
The point method
Each factor is then divided into levels or degrees which are then assigned points. The points for each factor are summed to form a total point score for the job.
Jobs are then grouped by total point score and assigned to wage/salary grades
The value of job - monetary terms.
Applied to a wide range of jobs.
Applied to newly created jobs.
Judgments are subjective.
The standard used for determining the pay for each factor may have built-in biases
Rewards can be categorized in the above matrix.
As well as competitive salaries at all levels, in every area of the business, Tesco also offer a whole package of other ways to help you make more of your money, safeguard your future and look after your health.
Motivational theory and reward.
National Business Awards, the company just chosen as Employer of the Year was Tesco. In their citation the judges said that "Tesco was voted Employer of the Year because its solutions were seen to be more holistic, Tesco have invested £12m this year alone in training schemes
Tesco's Employee Reward Program has some similarity to Taylor's theory. Its financial reward packages are a motivating factor.
At Tesco the Mayo theory is seen to be operating throughout the company. Communication is an extremely important factor in motivating employees.
In 1959 Frederick Herzberg developed the Two-Factor theory of motivation
Abraham Maslow argued that humans are motivated by five essential needs
Tesco promote new and more open lines of communication between managers and staff
Directors and senior managers spend a week on the shop floor listening to ideas and suggestions from customers and staff;
A "talent spotting" scheme to fast-track shop-floor workers up the promotional ladder
A better understanding of individual employee circumstances.
The result of all these initiatives is that Tesco is continuing to show record sales growth and profits .Employees highly trained are demonstrating commitment to the organisation and feels valued within the overall strategy. This if felt by customer with a higher level of service which gives organisation added value and prestige.
Organizations approaches to monitoring performance.
Tesco's purpose is to serve its customers. Tesco's organizational structure has the customer at the top. Tesco needs people with the right skills at each level of this structure.
There are six work levels within the organization. Each level requires particular skills and behaviors.
Work level 1 - frontline jobs - ability to work accurately and with enthusiasm and to interact well with others.
Work level 2 Team leaders - the ability to manage resources, to set targets, to manage and motivate others.
Work level 3 - running an operating unit - management skills, including planning, target setting and reporting.
Work level 4 - supporting operating units and recommending strategic change. - Business knowledge, analytical skills and to make decisions, and the ability to lead others.
Work level 5 - responsible for the performance of Tesco as a whole. - ability to lead and direct others, and to make major decisions.
Work level 6 - creating the purpose, values and goals for Tesco plc. - a good overview of retailing, and the ability to build a vision for the future and lead the whole organization.
Rights and procedure on exit from an organisation.
Evaluation of exit procedures and compare to 'best practice'.
When skills are relatively scarce, recruitment is costly and it takes several weeks to fill a gap the level of turnover is likely to be problematic for the org. The operation of an Exit Procedure is extremely important as it helps the company
To identify and correct hidden organizational and management problems
It enables the organisation to comply with its legal duty to monitor the reasons why people is leaving
It helps to ensure the return of Company property
It enables a proper handover of work and administrative matters to take place
to examine the reasons why people are leaving
to identify whether any improvements in employment practice could be made
UW-EXTENSION ADMINISTRATIVE POLICY
EXIT POLICY AND PROCEDURES
Resignation: If an employee decides to leave employment with Extension, the employee is responsible for providing adequate written notice The employee will receive written confirmation of the resignation from the hiring
Exit Questionnaire: All separating employees shall complete an Exit Questionnaire,available from the supervisor or divisional personnel representative, and bring thecompleted questionnaire to the exit interview
Exit Interviews: Prior to the last day worked, an exiting employee will have an exit interview. theemployee and supervisor are encouraged to discuss any matters of interest.Information collected during the Exit Interview Process shall be confidential and will notbe used in any way to reflect upon the exiting employee Exit interview data shall be compiled, summarized, and reported to the ExecutiveCommittee on a quarterly basis
Other Out-Processing Procedures Matters to be reviewed or collected at this time are:
Keys and key cards.
Computer access authorization codes.
Telephone cards or ID cards.
Corporate credit cards.
Return Employee Handbook.
Arrange last paycheck and vacation pay.*
Insurance conversion and benefits continuation rights.*
Tesco exit procedures is not so complex as UW as the nature of the workforce they have is different. They have staffs on temporary contract, part timers and on flexible hours. They do conduct a view point every six months to monitor the workforce concern and appreciation and there is a clause of intended stay with Tesco. Their "every little helps "slogan is part of the ethos and culture in Tesco.
In the SBU'S exit interviews are commonly performed in person with the departing employee. More often talking with the departing employee to more completely explore and understand his or her views during the exit interview.
Criteria for redundancy selection
The selection criteria used by the employer must be carefully and exactly defined so that they can be fairly and consistently applied to each employee. The criteria must also be agreed by the employees' representatives Redundancy selection criteria. It must be objective, non-discriminatory and applied consistently.
A pool of employees, all or some of whom will eventually be made redundant.
Selection criteria for redundancy may be:
Skills, qualifications and aptitude - these can help keep a balanced workforce.
Standard of work performance - with this method, you need to provide supporting objective evidence, for example from the business' appraisal system.
Adaptability - it may be important for your business that employees accept different types of work as needs change.
Attendance/disciplinary record - you must apply this method consistently, and be sure your records are accurate and that you understand the reasons for absences.
Length of service -last in, first out',
The following criteria are considered unfair and can give rise to claims under Unfair Dismissal or the relevant discrimination laws:
trade union reasons
carrying out duties relating to redundancy, as an elected representative of the employees
sex, race or disability grounds
Tesco has been very successful over the past years by a fully intergrated HR department and as such demonstrated a model implementation of HR. The big picture of Tesco strategy is discussed with all employees thus clarifying their role and importance in the organization. The HR department in Tesco is proactive which has allowed the organization to focus on Human resource with such practices with training issues. They perform their task with the Tesco Steering Wheel Strategy and practicing a total quality approach throughout the organization.