Analysis Of Three Key HRM Activities Commerce Essay

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The assignment has included HRM activities, models and how they lead by organisation sector such as Dialog Telecom Ltd. HR Planning and Development methods and how they effect to meet organizational objectives.HR performance and its importance to the organisation.

The objective of this assignment is to emphasize the importance of Human Resources Management and the use of formal HR system to identify the human talent in the organization to achieve their goals.


- Analysis of three key HRM activities & how objectives achieved by effective HR management.

Human Resources Management


"A philosophy of people management based on the belief that human resources are uniquely important to sustained business success. An organization gains competitive advantage by using its people effectively, drawing on their expertise and ingenuity to meet clearly defined objectives.HRM is aimed at recruiting capable, flexible and committed people, managing and rewarding their performance and developing key competencies." by Allan Price[2007-Page 31]

Dialog Telecom in context with Human Resources Management

This company will be explaining the human resources management of the company which is originated in the year 1993 and operates Sri Lanka's largest and fastest growing mobile telecommunications network throughout the country. The Company operates 2.5G, 3G and 3.5G mobile services, supporting the very latest in multimedia and mobile internet services as well as international roaming across over 200 countries. The organization has created more than 4000 employees and 1360 base stations across the island.

Dialog Telecom has a very well defined and structured department and its various policies of keeping each employee productive part of the organization are intended with the corporate worlds requirements.

Employees in the company are largely committed to their organization and have shown progress in the company. Employees are highly satisfied because of,

Contribution plans.

Such as the Employees Provident Fund and Employees Trust Fund, the company contributes 15% and 3% respectively of the employee's basic wage.

Short term employee benefits.

Wages, paid annual leave and sick leave, bonuses and non-monetary benefits are accrued in the period in which the associated services are rendered by employees of the group.

Bonus plans.

The company recognizes a liability and an expense for bonuses on profit sharing, based on profit attributable to the company's shareholders.

Termination benefits.

Termination benefits are payable whenever an employee's services is terminated before the normal retirement date or whenever an employee accepts voluntary redundancy.


This plan defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.


According to A Price [Page 331] the recruitment is,

The development of a pool of job candidates in accordance with a human resources plan.

It is the process of locating, identifying and attracting capable applicants.

Methods of Recruitment process:

External Recruitment.

"This means that when organizations look to fill the vacancy from any suitable applicant outside organizations" by A Price [2007].

Internal Recruitment.

"Internal recruitment is a process of recruiting people internally within the organization." by A Price [2007]

Dialog Telecom Internal & External Recruitment Procedure.

Dialog Telecom advertises jobs both internally and externally.


Present permanent employees (based on programs of career development).

Present temporary/casual employees.

Methods such as Dialog intranet, staff notice board, personal recommendation [often referred to as 'word of mouth'] and in-house magazines/newsletters.

The major advantage and disadvantage in this is, it provides opportunities for promotion within the company and can be a motivating factor for dialog employees, but there are no new ideas that can be introduced from outside the Dialog Telecom.


Job centers.

Advertisements such as newspapers, Job posting on job sites and Ads on websites related to positions recruited.

Data bank.

The major advantage and disadvantage in this is Dialog Telecom can recruit candidates who have wider range of experience and skills but it takes longer process.


"The process of assessing candidates and appointing a post holder to ensure that the most appropriate candidates are hired." by Allan Price [Page 355]

Process of Selection

Completed Job Applications. -Interviews.

Background checks. -Physical examination.

Job Offer.

Selection policies of the Dialog Telecom

In case of Non-Payment employees Dialog Telecom signs a contract of 1 year which can be extended to another year.

After selection the candidate is required to complete a 3 month long probationary period.

HRM department prepares and delivers the Employment Letters to the employee and obtains signature of him on a copy.

Candidates rejected or kept on file are sent regret letters.

Hiring Committee.

Dialog Telecom Committee constitutes following members for hiring on all the levels in the company.

Respective Department Head.

Head of Human Resources.


Appointment Letters.

Dialog Telecom appointment letters for successful candidates, spells out the terms and conditions of the employment and benefits applicable to the position.

At the time of confirmation the concerned department sends the feedback for confirmation.

Training & Development


"It is the process designed to maintain or improve current job performance." by Allan Price [Page 497]


"It is the process designed to develop skills necessary for future work activities." by Allan price [Page 503/504]

Training& Development policies of the Dialog Telecom

The purpose of training is to upgrade the capabilities and efficiency of all those employees and prepare them for more responsible positions in future.

Provides employees with greater opportunity to grow and succeed within the company.

To strengthen management and professional teams at all organizational levels.

Constructs training programs and provides employees a variety of Job skills, Technical, Clerical and Supervisory and Managerial courses.

The employees are trained technically and occasionally either locally or abroad according to pre-planned programs.

Man Power Planning


"Strategic workforce planning can be defined as " a new approach to traditional human resources planning that involves analyzing and forecasting the talent required by organizations to meet the objectives of their business strategies" by Allan Price[Page 318]

Man Power Planning Procedures Of Dialog Telecom

At Dialog Telecom, their belief is that "Our people are our greatest asset". We take great pride in acknowledging the contribution each one of us makes.

They focus on People Development and for that they ensure:

Staff of Dialog Telecom with world class Professionals and ensure that the right systems are in place to encourage them to develop to their full potential.

Create a collaborative and mutually supportive work environment that encourages people to grow.

Build a team of professionals who deliver expertise by participating in business decisions.

Develop Performance Management and reward systems underlying the Business strategy.

We aim at making Dialog Telecom a great place to work.

The two HRM models.

-Michigan Model

This model suggests that, in order for a company to improve its performance it must directly align its corporate and human resource strategies and structures.[ by Fombrun, Tichy and Devanna (1984)].It's further known as "matching model" or "best fit" approach to HRM function such as selection, appraisal, rewards and development.

-Harvard Model

This model attempts to describe the inter linkages between HRM and organizational goals. Furthermore this is a system which links corporate objectives into societal needs and back into human resource activities. Therefore this frame of system describes the integration between business and society. [By Beer et al(1984)]

-The comparison between two HRM models

There are many similarities between these two models but Michigan model has a harder, less humanistic edge, holding that employees are resources in the same way as any other business resource. People have to be managed in a similar manner to equipment and raw materials. They must be obtained as cheaply as possible, used sparingly, and developed and exploited as much as possible. On the other hand, Harvard model analysis sees employees as major resources in the organization.

According to above 2 HR models Fombrun [1984] identified four common HR processes performed in every organization that is selection, appraising, rewards and development which is performed with every organization to achieve their goals.

-The use of a model for Dialog Telecom

This is the company that gives equal opportunity to every employer to acquire the most skilled, outstanding and talented personnel through their stringent selection process, and various assessments for all positions. So in this approach the company has identified key steps in developing a human resource management. That is,

Setting the strategic direction.

The Strategic direction & outcome that the organization seeks to achieve.

Planning the total workforce.

Deciding the numbers and competence of personnel the organisation requires.

Generating the required human resources.

Attracting, accessing and initially assigning the people needed in the organisation's total workforce.

Investing in human resource development and performance.

Developing performance in individual groups and teams in the organisation's total workforces

Assessing and satisfying organizational competence and performance.

Analysing the organisation's progress towards its desired outcomes and adjusting the system accordingly.

Therefore, by analysing these two models we can conclude that Harvard model is more appropriate and best fit method for Dialog Telecom.


-Analysis of three HR planning & development methods for Dialog Telecom Ltd.

Human Resource Development


"A strategic approach to investing in human capital. It draws on other human resource processes, including resourcing and performance assessment, to identify actual and potential talent. It provides a framework for self development, training programmes and career progression to meet an organization's future skill requirements." by Allan Price [Page 491]

Dialog Telecom in context with Human Resources Development.

The human resource department conducts a meeting with department heads at the end of the training program. So the purpose of this meeting is to focus on the individual discipline and performance during the training program. Then on the basis of their performance they give them advance jobs which will fill every position vacancy with the best qualified person obtained. And they prefer their own employees and go outside only when fully qualified person is not obtainable.

Orientation of new employees in Dialog Telecom.

Objective is to inform all new employees with the basic structure and rules of Dialog Telecom.

Human resource Department is responsible for orientation.

Within the first week of the employment employee goes through Department induction.

Within 30 days of employment all new employees attend a formal orientation program which includes,

Nature of business.

History-philosophy and structure of the company.

Structure chain command within the company.

Company benefit plans.

Layout and facilities offered by the company.

Career Development

"A sequence of positions held by a person during his or her life time." It is also defined as "advancement". by Allan Price [Page 46]

Significant of Career Development

The individual - not the organization is responsible for his/her own career.

Organizational members have to look out for themselves and become more self reliant.

Boundary less career is being established in which individual rather than organization defines.

Career Progression.

Organizational loyalty.

Important skills.

Market place value.

Career Development of the Dialog Telecom

Dialog Telecom supports the development of its employee's skills and abilities with an aim to achieve their potential. Following are the procedure for career development.

All vacancies for Positions of grade level "Assistant Manager" and above are announced internally or displayed on notice board.

One year experience of work in the company.

Selected person ensures to meet all requirements and will join the new job after getting clearance from department head for probation period.

Candidates are evaluated and assessed through test.

Performance appraisal System provides basis for decisions regarding confirmation, promotion and annual increment of the company.

Results of performance appraisal are increments, salary adjustments and promotions showing the last three years inclination of company after obtaining approval from the CEO.

Job Analysis


"The process of job analysis is that of gathering and analyzing job-related information. This includes details about tasks to be performed as part of a job and the personal qualities required to do them. Job analysis can provide information for a variety of purposes including such as determining training needs, development criteria and appropriate pay and productivity improvements." by Allan Price [Page 319]

There are two main components.

Job Description -"List of essential tasks involved in a particular job" by Allan Price [Page 614]

Job Specification -"Job Specification is a statement of minimum acceptable human qualities

necessary to perform a job properly" by Edwin B. Flippo 2007.

Job Analysis of Dialog Telecom

Information regarding the qualifications and job description is provided by the company to identify suitable candidates.

Candidates are supposed to complete the Pre-Employment forms and then the HRM department conducts the interviews and tests.

There is a restriction by the company that the Divisional/Department Head and HRM department must agree before the final selection of the candidate.

-The effectiveness of HR planning & development methods in the organization to meets its objectives:

The Dialog Telecom should ensure that the HR planning & development is integrated with broader organizational objectives. Above all, it should ensure that the rest of the organization accepts the methods of HR planning. To achieve these objectives,

Such as improving the retention of women in the organization or promoting diversity, especially the representation of designated groups amongst senior management.

Consult all stakeholders on the nature of the HR plan.

Check that there is real commitment to the HR approach at all levels of the organization.

Give regular feedback on the implementation of the plan through employee newsletters, exhibitions etc.

Make the HR policies part of the induction process hence especially for senior managers.

Where possible, build into the human resources theoretical outcomes which can be easily monitored and evaluated, so that it is possible to show the effect.


-Analysis of HR performance in the organization to meets its objectives and how they monitor.

Employee Performance Management


Performance management is a process used within organization to establish and evaluate an individual's job performance to achieve goals and objectives. According to Armstrong and Baron [1998],"A strategic and integrated approach to increasing the effectiveness of organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors."

Performance Appraisal

According to Allan Price [Page 437],

A process of systematically evaluating performance and providing feedback upon which performance adjustments can be made.

Performance appraisal should be based on job analysis, job description, and job specifications.

Types of Performance Appraisal

According to Allan Price [Page 438],

The content of appraisal

Contextual performance, goal orientation and self awareness.

The process of appraisal

Appraiser- appraisee interaction and multi source feedback that have cross-cultural implication and are open to technological change.

Dialog Telecom in context with Performance Management

Here it provides a formal review program to evaluate work performance and to promote communication and discussion of job performance at Dialog Telecom.

Dialog Telecom assesses the employee on:


To maintain strong quality of services performance needs to be focused on constantly and consistently.

Communication skills.

This is an essential tool that employee attitudes and resulting performance are improved by effective communication.

Team work and Co-operation.

This defines the individual's ability to work flexibly with others and align individual and team skills and activities to business goals.

Decision making.

Decisions are taken at the subordinate or superior level depending on the delegation of work and its responsibilities and the capabilities of the employee.

Customer focus.

This creates an atmosphere of win-win relationship with customers.

Performance appraisal is done on an annual basis (from January 1st to December 31st)

To give a chance to subordinates, to evaluate their seniors a 360 degree evaluation is conducted at the time of the performance evaluation. According to A price [2007] 360 degree feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them.

The immediate supervisor prepares a performance report in December of each year of each employee.

Increments are also given at the end of the year and increments are percentage of salaries.

Promotions are given on good performance after completing two years in the current grade.

Bonuses are given but the employee must have to complete 6 months in the company service.

-Suggest ways to improve this:

Performance management system is an integrated system that links business objectives with goals, Key Results Areas [KRA], self appraisals and Actions of managers. Therefore, this type of integrated system should apply to Dialog Telecom so that all heads and employees can enhance their performance through continues learning and development towards company success.

People work in two ways, either alone as individuals or as a team. However vast majority of jobs require two or more people working together. Though Self appraisal process will remain same as in HR performance system hence in place of self appraisal there will be team appraisal. So that Team performance must be sustained through motivation of all members of the Dialog Telecom.

Under Management by Objective [MBO], the managers and supervisors of the Dialog Telecom jointly define its common goals, define each individuals major areas of responsibilities in terms of performance. Therefore use these measures as guides for operating the unit and assessing the contribution of each of its employees.

Performance appraisal methods in the Dialog Telecom with the setting of goals, evaluation and appraisal of employees can be implemented by such as ranking method, rating scale method, check list method, critical incident method, confidential reports and assessment centres.

The Dialog Telecom has long term objectives and plans. To get to the success they should groom employees. Executives are expected to shoulder future responsibilities of the organization. This is called the development process or executive development programmes. So the employees must be developed according to changes like technology, new systems and procedures to meet its objectives.