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Human resource management is made up of many processes. Each of these processes must work together to ensure efficiency and good quality. The first step of HRM is the recruitment and selection phase.
In order for recruitment to begin, a job analysis is to be completed. This job analysis will be a description of various tasks, duties and responsibilities that will have to be undertaken. It is therefore vital that job applicants meet the necessary qualities or qualifications in order to fulfil those factors.
The main sources of recruitment are:
University appointment boards
Independent advertising (via posters, TV, radio etc.)
Compiling job descriptions is a very delicate procedure. One must be sure to abide by all applicable legislation; especially race, discrimination and age. Employers will not have the right to deny work to anyone on the grounds of those factors.
Job applicants are normally run through a background and health check; which they are required to pass indefinitely. Factors such as personal appearance and hygiene are closely inspected by employers.
Personal qualities/skills are also looked at to determine suitable candidates for employment. Some of these skills include aptitudes, attainments, general intelligence, leadership and teamwork.
Below is a comparison of two organisations and their recruitment and selection process:
Swatch, a watch and jewellery accessory retailer, has a management structure much like most other retail organisations. Their recruitment and selection process if fairly simple. Job vacancies are advertised in a variety of means; mostly through agencies. Some of these agencies operate online, such as Fish4Jobs. The job description, salary, working hours, requirements and all other relevant information is explained clearly. Since the website is available for the entire world to view, it gives Swatch a very high chance of finding a suitable candidate.
The branch manager of the Swatch store will review the applicants and shortlist to a certain amount. Thereafter, the interview selection will begin. The interview is one-on-one and formal. The most suitable candidate(s) will be chosen and given the job after a standard background and health check.
Etcetera (Sales Assistant)
Etcetera is a single independent privately-owned shop that sells furniture, kitchen supplies and general household items. The job vacancies are advertised in the local borough newspaper along with a job description and salary. They accept CV's directly and by post. The candidate is then selected and interviewed informally by the store manager.
1.2 The HRM process: Performance Management
Every organisation aims to keep a good staff retention record. However, retaining staff can be very time consuming and expensive. To retain staff is to give them reason to stay. This is normally done by giving employees incentives in addition to salary. These incentives normally take financial form; however, other psychological incentives work just as well. These psychological incentives can be as simple as verbal encouragement. This ultimately leads to motivation; therefore better performance.
Other forms of psychological incentives include added responsibility and work challenges. Employees not only work for money, they work also to satisfy their psychological needs. As long as incentives are fair, employees will carry on working with more conviction. This will lead to good retention levels and result in lower costs in terms of recruitment.
Below is a comparison of two organisations and their performance management process:
There is relatively little training involved as a supervisor at Swatch. Most of the work carried out by this position is monitoring and assisting in sales. Each Swatch branch has its monthly sales targets. If these targets are met, the employees of that branch are rewarded financial incentives. Employees that have been with the company for a long period of time and have a good record are often given more responsibility and salary increments. Swatch employees are entitled to product discounts at Swatch stores upon working in the company for at least 3 months. The purchase amount is limited but increases as time progresses. Employees find it to be one of the most satisfying incentives other than pay increments and bonuses.
Etcetera (Sales Assistant)
Since Etcetera is a very small organisation with a handful of employees, the performance management process is relatively simple and informal. The store manager often has a very casual relationship with the workers and therefore independently decides on incentives. Since the manager knows the nature and personality of the workforce, he/she knows which form of incentives will be appropriate. The most common method is bonus incentives and product discounts.
1.3 The HRM process: Job Evaluations/Appraisals
Job evaluations and appraisals are very beneficial for an organisation; mainly due to the following reasons:
By evaluating current performance, setting targets becomes more accurate and realistic
It can determine whether employees are working up to standards and whether further training is required
Evaluation of staff can determine their potential; this will help when promoting and increasing salary
It is an effective method when determining if workers are under or overpaid
These appraisals are normally conducted by the line manager of general manager; depending on the size of the organisation. In order to conduct a successful and productive evaluation, there are several principles which must be followed. These include:
Two way communication - the conductor must not seem as a dictator but instead must explore the performance with the employee. This is a chance for constructive criticism for both parties.
Targets and achievements - for most employees, an evaluation will compare the objectives that were previously set and discuss if and how they were met. If the employee has met the previous objectives, the new aims and expectations must be set higher.
Below is a comparison of two organisations and their job evaluation process:
Job evaluations at Swatch are done every 3 months. These evaluations are for bother part time and full time employees. However, unlike many other companies, Swatch only conducts evaluations for employees that are underperforming or have a problem. For those employees that are performing fine, an evaluation is not necessary.
During the evaluation for the other employees, the conductor will explore and evaluate the employee's progress and targets. In most cases, if the employee is not up to standards, he/she will be dismissed.
Etcetera (Sales Assistant)
This organisation has a very informal way of evaluating its staff. Because of its small workforce, the manager can assess the quality of work on a daily basis; thus eliminating the need to conduct appraisals. It would also be time consuming and costly to conduct evaluations for one or two employees. However, in essence, the outcome is the same as it is in Swatch. The managers know the abilities and potential of their employees.
1.4 The HRM process: Exit
The exit stage is when an employee no longer abides by the employment contract. The most common exit is due to termination by the employer, redundancies, voluntary leave, end of contractual period and transfers. In most cases, an employee can leave an organisation of his/her own accord without much consequence. Although the employer has the power to take legal action if it is in breach of the contract, most employers will find that taking legal action would be pointless due to the cost and time involved.
Termination by the employer is when the employer has decided that the employee is no longer required by the company due to either incompetence or breach of contract. However, if there is no breach of contract, the employee has the right to take legal action against unfair or wrongful dismissal - according to the circumstances.
The other form of exit is redundancy. This is most common when an organisation is cutting back on jobs, relocating or goes out of business. The employees are paid a redundancy sum to compensate for their termination.
Below is a comparison of two organisations and their exit process:
Employees willing to leave work at this company are required to give a 1 month written warning in advance. This is to give the company ample time to find a replacement and conduct training. If however one decides to leave before giving a warning or before the waiting period is over, the employer has the right to take legal action - as it would be a contractual breach.
When and if there is a contractual breach on the employee's part otherwise, he/she can be immediately dismissed. The employee will have to go through a disciplinary process where his/her fate will be decided. Gross misconduct, such as theft, results in immediate dismissal and legal action.
Etcetera (Sales Assistant)
The exit process in this company is much more informal. The employer is not really concerned about notice periods for leaving. The company is very flexible in managing human resources. The decision making process is often very fast enabling efficiency. Because of this, the recruitment stage is also speedy. Therefore entering and exiting the company is very efficient.