Business Essays - Recruitment Employee Resource

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Recruitment Employee Resource

Human resource planning must support to make a good effectiveness to the organisation, it has to be well planned and it has to be suit all the parities in an working organisation, it’s clearly mention in the first paragraph.

For an organisation recruitment and selection are the main points, they gave to make sure whether they make the right choice, by recruiting. Selection also a main part which is link to this, how to recruit and to select are briefly described below in task two.

With out Motivation and with stress its hard to concentrate, it will lead the organisation to a loss. With out any satisfaction employees do their work. One fact is work life balance and the relationship between the trade union and the management must be steady, or it will make conflicts among them what ever the rules or decisions the company make it has to be tell to every employee to make the risk down by going on a strike. Also the labour rate is a big fact it has to be reasonable and pay according to their shift basis. These are mention in task three, four and five.

Organisation culture and management styles have to make a effective implementation of human resource for AMO, the steps are mention below in tasks.

Human Resource plane

Human resource management emerged as a concept during the 1980s; before which personnel management was used to describe the process of obtaining, developing and motivating employees. A detailed definition of HRM given by Bratton and Gold (1999):

The part of the management process that specialises in the management of people in work organisations. HRM emphasises that employees are critical to achieving sustainable competitive advantage, that human resources practices need to be ignored with corporate strategy, and that human resource specialists help organizational controllers to meet both efficiency and equity objectives.

HRM can be seen as a broader dimension to personnel management. It forms a more strategic approach to planning and resource deployment. It the current business environment HRM policies and philosophy play a crucial role in the achievement of organisational goals, through better utilisation and management of the human resources within an organisation.

1.2 Human Resource Strategy

The HRM model clearly shows the relationship of the HRM strategy with the business strategy. The left hand side shows the main HRM issues to be considered; as the model goes from left to right, the business goals are also incorporated into the model. The model consists of 6 main components:

  • HRM strategy
  • HRM practices
  • HRM outcomes
  • Behavioural outcomes
  • Performance outcomes
  • Financial outcomes

As can be seen from the model, the implementation of HRM to any organisation will begin with the definition of an overall HRM strategy. The strategy will cover three areas; Differentiation, Focus and Cost. A clear target must be set in each of these three areas, based on these targets the rest of the HRM plan can be built. In terms of AMO, an organisation involved with vehicle maintenance, the following targets can be set:


Creative employees should be hired who could provide new avenues of service for the existing customers, or which will attract new customers. These employees should be retained and motivated to continually perform. The employees should be able to provide a service not being provided by competitors.


Qualified personnel should be attracted to the organisation, and existing employees should be trained. These qualified employees will be able to provide a higher quality service. This should in turn increase the customer satisfaction.


Even though higher wages will have to paid to attract and maintain high quality staff, these staff will be able to reduce costs in many ways such as more efficient services, less wastage, etc. These cost savings will far outweigh the cost increase in terms of salary.

The HRM practices of the organisation are directly derived from the HRM strategy defined. These practices will include the policies for;


The policies which will define the process to recruit a new employee, and the minimum criteria which will need for selection. Selection methods such as examinations, interviews, etc. will be defined here.


Training programmes will have to be organised to continuously develop the skills of the employees. Especially in updating the knowledge of the employees about the new technologies available.


Employees must be appraised; the appraisal must be fair and based on relevant skills. The appraisal must not be seen as a way to find all the negatives of an employee, but must instead be seen as a way to provide feedback for the employee on the employee’s strengths and weaknesses.

Rewards: high performing employees could be identified through the appraisal system described above. These high performing employees should be adequately remunerated. The rewards for each employee should be based performance. Rewards need not be only cash based, but could alternative forms such as reduced rates for vehicle goods purchased from the organization, bonuses, etc. Financial rewards should also match the current market rates.

Job Design

Jobs should be clearly defined. Each person doing a particular job within the organisation should be aware of the job requirements, and scope. The job design could include the minimum entry requirements, which can also be used during the selection phase.


The job should enable the employee to be involved in the organisation, an the should not just feel like a drone, but should feel like part of the organisation.

Status & Security

The job should provide the employee with a sense of well being, and provide some sort of job security.

Based on the HRM practices which will be implemented, HRM outcome will be achieved. The outcome will include; commitment, quality and flexibility. Proper implementation of HRM practices will result in a high level of employee commitment, which will in turn increase the quality of the employee work. The employees will also become very flexible; meaning that they are more receptive to innovation, change and operation.

The outcome of the HRM practices will directly affect the behaviour of the employees; it will improve the motivation among the employees. This will have another outcome of increasing involvement and organisational belonging among the employees. The cooperation among the employees is further strengthened.

These will have a beneficial effect on the performance outcome of the employees. Current problems such as absenteeism and turnover will be countered due to the high motivation among the employees. By implementing proper training methods and appraisal systems, the quality of the work will improve.

All the stages will filter down to increase the bottom line of the organisation. Improved quality will result in improved customer satisfaction, and this will be reflected by improved profits. This is one particular way in which an motivated and trained workforce can improve an organisation. The initial cost to attract new, high quality employees and to retrain the existing employees will be high. But a cost saving and improved sales will be achieved over the long term.

Recruitment & Selection

The recruitment and selection process of any HRM model is key to effective personnel development and better business operations. Selecting the right person for the right job, is vital, as studies have shown that recruiting the wrong person for the job will result in increased costs, low job motivation and high turnover (Rioux S.M. et al., 1996) Therefore it is paramount that an effective recruitment and selection process is created.

The first step of any recruitment and selection process will be the identification of a existing vacancy. AMO has already clearly identified its personnel shortfalls; qualified technicians to service vehicles. But before the job can be formally advertised, several intermediary steps will have to be taken. These will include:

Job analysis

A job analysis will form the basis of a job description. Job analysis, as the word suggests, involves analysing the job that is to be made vacant. The purpose of this analysis is to study what the job involves, its scope, etc. Various methods for job analysis comprise;

Direct observation

A person already work in the particular post is observed over a period of time. The major drawback of this method is that an experienced worker can make a job look easy or difficult depending on their disposition. Additionally, some manual tasks are so fast or intricate that accurate observation can only be achieved by use of video recording.


The existing post holder can be interviewed on the various processes and procedures for the job. This also has the problem of being dependant of the nature of the employee, since an employee could exaggerate or depreciate the importance of the job. An alternative would be to interview the immediate supervisor; but this will also be affected by the supervisor’s bias. Also the supervisor may be out-of-touch with the details of the job.


These can be useful but are frequently unreliable. Employees may not understand the questions, or the questions may be too restrictive.

Previous studies

Training, job evaluation, work-study records, manuals and information obtained in other ways are sometimes available. These can be brought up to date or added to derive a job description.

Job description

A job description will define the overall purpose of the job and the main tasks to be carried out within the role. A robust job description is essential to the success of recruitment and selection since it is the foundation upon which all other processes are based. The advertising copy and assessment procedure will be based on the job description. The main points to be covered in a job description are:

  • Location of the job within the organisation structure
  • Title of the job, and the job code if available
  • Job title of the person to whom the jobholder is responsible
  • Brief description of the overall purpose of the role.
  • Details of any technical procedures, tools, machinery, or equipment used by the jobholder.
  • Any special requirements to liaise or deal with contacts of high significance inside and outside the organisation.
  • Physical location of the job and the amount of travelling required.
  • Special circumstances attached to the job, such as shift, night work, on-call, degree of overtime commitment, weekend working, physically demanding activities, etc.
  • Responsibilities for budgets, etc.

Person specification: the person specification defines the personal characteristics, qualifications and the experience required by the job holder in order to do the job well. The information relating to the qualifications and experience demanded by the job can only be derived through a thorough job analysis that identifies the knowledge, skills and other behaviours required to do the job well.

The list of personal characteristics needs to be as precise as possible so that the assessment process can identify what a candidate knows and can do. A danger is to overstate the qualifications and experience demanded by the job, possibly leading to attracting a new employee who quickly becomes dissatisfied with the lack of challenge and subsequently leaving.

After the above steps have been gone through, a detailed understanding of the job and the person can be gathered. With this information the next phase can start.


It is important to note that although the term ‘Recruitment’ is used in conjunction with ‘Selection’; the two terms refer to two separate processes. Recruitment involves the process of attracting a qualified pool of applicants. Typically there are three steps involved in the recruitment process;

  • Advertisement of a job vacancy
  • Preliminary contact with potential job candidates
  • Initial screening to create a pool of suitable applicants

Recruitment can be done internally or externally. Internal recruitment is where an employee from within the firm is appointed to the vacant post; this could be through a transfer or through a promotion. But in the case of AMO, the main problem is the lack of skilled staff, so external recruitment will have to be looked into.

External recruitment will involve attracting candidates from outside the organisation; some of the popular methods for external recruitment are:


Advertising through the press is perhaps the most popular form of recruitment. This can be targeted at a very large audience. The final advertising copy should include:

  • The job description
  • Person specification
  • Organisation’s key selling point such as compensation
  • Instructions for applicants
  • Deadline


Will have a complete database of potential employees. Using agencies will be easier since they cut out the need for short listing candidates. They will only provide the details of suitable candidates.

During the recruitment process, the application of many potential candidates will received. The suitable employees will be selected through the selection phase.


It will be during the selection process that the suitable and unsuitable candidates are differentiated. Any techniques used during the selection process should be; reliable, valid, fair and cost-effective. Some of the selection techniques are:

  • Testing: a test of technical competence can be performed. This is an easy way to short list all the unsuitable candidate, based on their technical knowledge. The test should have three main measures of validity
  • Face validity – the test must give the impression of measuring relevant characteristics.
  • Concurrent validity – the extent to which the scores of a test relate to the performance of employees currently undertaking the kind of work for which the candidates are being evaluated.
  • Predictive validity – the extent to which the scores of a test relate to some future measure of performance.
  • Interviewing: the candidates which have been short listed through the testing procedure will then move on to be interviewed. Interviews are a popular technique during the selection phase. Interviewing can be a good way to check if the potential employee will fit the current organisational culture.

Once all the selection techniques have been done the final decision to hire or not can be made.

Work Life balance

Work-life balance is about people having a measure of control over when, where and how they work. It is achieved when an individual's right to a fulfilled life inside and outside paid work is accepted and respected as the norm, to the mutual benefit of the individual, business and society.

Employees are the 21st century organization’s greatest asset - accountants are even adding human capital to the balance sheet.

Poor work-life balance decreases productivity in the following ways (the work foundation, 2008):


The CBI believes that absenteeism levels are the main reason why UK productivity lags behind the US and some parts of Europe.

Low output:

Output per UK worker is nearly half that of US employees and significantly lower than that of Germany and France.

Long hours culture

Although there are high numbers of part-time workers in the UK, there are also many people working very long hours. One in three fathers in the UK works over the 48 hours a week limit set by the European Working Time Directive.

The work-life balance issue within AMO arises from the large number of cars to repair and maintain, by a few employees; this situation should to a certain degree be alleviated by the addition of new staff numbers.

Many studies have relieved that money is not the only motivator (McGregor, 1960). A popular model through which different types of motivation can be indentified is the Herzberg’s motivation-hygiene, or dual factor, theory. It suggested that the opposite of job satisfaction is not job dissatisfaction but instead, the lack of job satisfaction. Herzberg divided various factors into both Motivators and Hygiene factors. Factors associated with job satisfaction are called ‘motivators’, factors that cause dissatisfaction are called ‘hygiene’ factors.

Given below are some of the work-life strategies that can be adopted by the management of AMO.

Flexible working patterns

The following working patterns have been tried and tested by employers and proven to work. Introduce the options that best suit your type of business and staff:

  • Flexitime – variable start and finish times
  • Compressed work week – working full-time hours in 4 days
  • Part-time working – working less than full-time contractual hours
  • Job sharing – where two people split one job
  • Annualised hours – allows flexible working patterns throughout the year
  • Teleworking or home working – working remotely or from home
  • Term-time working – working only during school terms
  • Personal work-life balance


The goals of a proper payment system are; recruitment (from the market place), retention (keeping up with the market) and reward (paying for performance). Armstrong and Murlis (1998) suggested that reward systems consist of two elements:

Pay ranges, with a method for moving through (progression) or up (promotion)

The benefits package (pensions, sick pay, medical and other insurance, car schemes, etc.)

There is several pay structures that an organisation may choose to adopt;

Graded pay structures which consist of a sequence of job grades against which is attached a payment range

Broad- banded structures in which the range of pay in a band is significantly higher than in a conventional graded structure. The structure usually covers the whole workforce from the shop floor to senior management.

Individual job ranges are used where the content and size of jobs is widely different. For example at senior levels an individual job grade structure may be preferable to a conventionally banded structure. This approach avoids the problem of grouping number of widely different job sizes into a grade, with the inevitable consequence some jobs are underpaid and other are overpaid.

Pay structures for manual workers relate to rate paid to employees who work on the shop floor, in distribution, transport, and anywhere else where the work primarily involves manual skills and tasks. It is similar to any other pay structure in certain respects. It incorporates pay differentials between jobs, which reflect real assumed differences in skill, and responsibility. Inevitably pressures from local labour markets influence it, as well as custom and practice and various settlements reached between a management and trade unions.

The choice of the pay structure will greatly depend on the work type, and different levels of work involved in a particular job.

In the context of AMO it is important to note worthy that the current performance of the working staff has been dropped and in need of attention on that aspect. The primary aspect in concern; employees should be motivated enough to perform their work as expected. But AMO has failed to deliver the employee expectations in return. It is understandable that currently employees undertake a heavy work load that is unlikely bearable in the human day to day human life. This has led employees to lose their quality time with families.

Furthermore AMO has failed to increase the salaries as per the industry average. This would certainly dissatisfy the employees of the AMO due to the bulk work load and work pressure that they have to undertake. Ideally in the context of AMO should pay its employees well above the industry average and determine an attractive overtime payment scheme which would motivate the staff to work more and more.

But AMO should implement effective controls to ensure that the employees add value to match the extra amounts allowed to enjoy as the overtime payments. An attractive incentive package would initiate and energize the employees to deliver high quality and superior service to AMO.

Furthermore AMO look in to the following aspects would add value in determination of an appropriated incentive scheme.

Job evaluation

The levels of pay can be methodically defined through job evaluation. External comparisons made through market surveys and decisions on external relatives follow the organisation’s policy on how its pay levels should relate to the market rate. Two particular job evaluation schemes can be identified:

  • Points-factor evaluation scheme
  • Plot the evaluation job scores against the current rates of pay for every jobholder to produce a scatter diagram.
  • Draw a line of central tendency or ‘Best Fit’
  • Obtain information available on market rate information for benchmark jobs and plot the upper and lower quartile and median trends.
  • Decide the desired pay policy line on the basis of the organisation’s pay policy or pay stance and plot this on another graph.
  • Decide on the overall shape of the pay structure in relation to the policy line.
  • Define the pay ranges for each grade, taking into account the consideration affecting the size or span of pay ranges and the provision to be made for pay progression.
  • Ranking/market rate method
  • Rank benchmark jobs and plot their actual rates of pay to give the pay practice. Armstrong, m(1996)
  • Plot market rate information on the benchmark jobs on the chart and derive a ‘best fit’ pay policy.
  • Using the pay policy line as the midpoint guideline, plot the upper and lower limits of the pay range for each benchmark in accordance with range size policy.
  • Develop the grade structure
  • Define the pay ranges for each grade
  • AMO can motivate its employees through implementing by ascertaining the following types of pay structures.
  • Pay types

Profit related pay

A profit related pay attempts to produce a sense of generic ownership and commitment. Methods of profit related include share purchase and share option schemes. Another method of profit related pay would be to give the employees a small percentage of the net profits of the firm.

Sales bonuses and piece rates

Piece rate based pay is based on the output from each employee. In the early days of mechanisation, and with society built on industrialisation, Taylorist philosophy of paying employees on the basis of output alone meant that organisations could easily measure such output.

The piece rate structures have become difficult to implement since work organisations have considerably changed; with more emphasis being placed on teamwork. Sales bonuses are based on the sales achieved by each individual. If the sales bonuses are based on the performance of a team, there is a risk of ‘Free riding’, where one individual will benefit on the work of other individuals in the team.

Appraisal based performance related pay

Appraisal based performance related pay is a method of payment where an individual employee receives increases in pay based wholly or partly on the regular and systematic assessment of job performance. If applied correctly it can be beneficial to both employer and employee.

It can be helpful to the employer, by helping them to improve the efficiency and effectiveness of their workforce by emphasising the need for high standards of job performance. It can also help motivate and retain valuable employees by targeting higher pay at better performers. Employees in turn will welcome a system which rewards extra effort by extra pay.

A few methods in which an appraisal based pay can be incorporated into the existing pay:

Replace part or, occasionally, all of general pay increases with PRP awards

Strengthen the link between pay and performance by introducing additional payments above the scale maximum to recognise high performance

Introduce PRP in place of incremental pay increases based on service, age or qualification.

But a PRP system can be time-consuming to implement, manage, and involve a substantial change to an organisation’s culture; it is often restricted initially to a particular group of employees before consideration is given to extending it to other parts of the workforce. Such a gradual approach has certain advantages:

Senior managers need to be committed to achieving improved performance from their employees. Experiencing a scheme first hand will help to foster such commitment,

Restricting PRP to specific groups of workers allows an opportunity to test whether the scheme is appropriate, meet its objectives and contains sufficient safeguards to be fair.

Taking the issues faced by AMO, the drop in performance, the most appropriate pay type that should be introduced will be an appraisal based PRP. Since the appraisal system already exists; the only addition will be to link the results of the appraisal to the salary, and to create an appropriate increment structure for the performance.


Most performance appraisal rely on an annual meeting between the employee(appraise) and his/her appraiser.

A number of types of appraisal exist:

Self appraisal

Supervisor appraisal

180 degree

360 degree.

The key success factors to achieving an effective appraisal system include:

Careful planning which ensures the purpose and objectives of the system are widely understood.

Skill in carrying out the appraisal interview.

Selecting the most appropriate method of appraisal.

Setting targets which the appraiser can influence but at a challenging level.

Adopting a participative system that enables those being appraised to have a meaningful input to the system.

The appraisal system can not only be used to ensure the performance of the employee, but can be used to highlight potential problems in the work place. These issues can then be quickly dealt with, by quickly dealing with problems being faced by the employees; it will improve the employee morale.

Management of conflicts

Currently AMO is exposed to potential threats from the trade unions and it is vitally important to the management to foresee the possible scenarios in the future context and to be proactive well in advance since it could create negative publicity to the external environment. Generally a conflict is a process that begins with one party perceives that another party has or is about to negatively affect something that the first party cares about.

In the context of AMO is faced with a tension between the management and the trade union on the basis that AMO’s operations affect the employees’ quality work life balance whilst the work load is not sufficiently compensated through incentives awarded.

In the present scenario the pattern of emotional state and psychological reaction occurring in the AMO’s situation where individual perceive threats to their important goals which they may be unable to do. Job related factors of stress can be seen in the AMO scenario work overload, lack of participation in the decision making, the working conditions etc. these factors had led to the consequences such as absenteeism, labour turnover, low productivity etc. and furthermore could expand to industrial disputes.


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