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The Chartered Institute of Personnel and Development defined HRM as "the design, implementation and maintenance of strategies to manage people for optimum business performance, including the development of policies and processes to support these strategies." (CIPD,2003) HRM is a vast subject which usually covers a range of applications which differ from books and organizations.
According to Bach, HRM does differ from the relations of the employees in the focus on the management practice and the tendency to ignore the employees interest. He holds certain views about the HRM which are as follows.
HRM is something where the employer and the employee interests coincide with each other for the effectiveness of the organization.
The interests of the employees should be marginalized.
There will be a special interest on the aspiration and motivation of individual employee.
Ongoing playing of collective and external issues.
Human Resource Management can be defined as the philosophy of managing the people which is based on believing that the human resources are very important to sustain the success of any business. Any organization tries to gain advantage with the use of people effectively inorder to meet the objectives set. HRM aims at recruitment of people who are flexible, committed and capable of giving their performance.
Human resource strategy models
The link between the HR strategy and the business strategy are explained in the following context. The HR strategies are the decisions in regards to the practises and policies used by the management in the process of selecting, training, developing the employees and to motivate and control the employees.
The three models to differentiate the types of the strategies of HR are
In this the control aspects of the labour process to gain higher profitability and efficiency are discussed. They are the individual controls, technical controls and bureaucratic controls.
Process based control which is adopted where the relation of mean-ends are certain
Outcome based control which is adopted when these relations are less certain.
Resource based model: This focuses mainly on the strategic value of the assets and values of the people and the continuous learning at the workplace. The matching of the SHRM model mainly has its focus on the external Opportunities and the Threats, the resources based SHRM model mainly focused on the strategic importance of the internal 'Strengths.'
Organizations are able to identify the resources which are strategic by using the criteria of Barney(1991) criteria
The strategy is shaped by the resources and the capabilities.
Limitations of resource-based model
Conceptual: the conceptual vagueness , imbalance by not giving attention to the internal resources at the expenses of the external competition.
Empirical: too less evidence that most of the firms have followed the 'learning organization' or the 'soft' SHRM model
The integrative model characterizes two main dimensions of the HR strategy.
The acquisition and the development of the focuses on internal human capital.
The control focuses on monitoring the employees compliance.
Locus of control focuses on monitoring employees' compliance
The above two dimensions describe about four types of dominant HR strategies which describe about the organization being Commitment, Collaborative, Paternalistic and traditional.
Introduction of Nandos
Nandos is one of the leading restaurants in the UK. The growth of the organization is affected by a number of factors. For that reason, the organization focusses on the development of the strategies and exploring the opportunities to grow with the increasing demands of the environment of the business. To place the HRM in an important place of the functions of the organization in the success of the environment is quite important. HRM in this context can be simply defined as coherent approach in the management of the assets of the organization which is the people. One of the companies which understand the importance of the HRM is Nando's. this is a Portugese restaurant which has been originated from South Africa.
The first restaurant was established in the year 1987 in Rosettenville. It is named after Fernando Duarte's son who is Portugese in the South Africa and his friend, Robert Brozin. Initially they named it as Chickenland and then later changed it to Nando's in order to reflect the combination of the Mozambiquan and the Portugese cuisine. The very first restaurant in the UK was established in Ealing in 1992. Nando's is known for its speciality in the chicken dishes like medium, hot, extra hot, peri peri marinations. It is mainly famous for the peri-peri chicken flavour prepared by Nandocas, which refers to the one who worked for the restaurant.
The people who eat at Nando's believe that the difference is made by the Nandocas. The HR director of the restaurant, Julia Rosamond states that, 'People want to value the organization they work for and be valued in return.' The activities of the Nando's, its development and the planning and the performance are discussed.
HRM Activities of Nando's
The main objective of Nando's is to establish fast food outlets with their own life style. Nando's is mainly dependant on success of the national procedures and the approaches. The founders of the Nando's not only to be a chain of restaurants but to reflect the characteristics of the location as well.
The conduct of the restaurant is mainly guided by five important values which are passion, pride, integrity, courage and sense of family. The fifth value is specially intended for the restaurant to deliver the experience of Nando's to the customers.
It is the responsibility of the HR department to make sure that the Nandocas are well satisfied, be engaged and be fulfilled in the careers within Nando's. There are certain activities run by the HR which mainly include the recruitment, provide training and to reward the employees.
Recruitment and selection at Nando's
The recruitment process is one of the important activity of the HR department. They tend to recruit people either internally or externally, who meets the criteria. This process is usually legal and sound technically. Throughout the UK, there are about 30 restaurants being opened each year which does mean they need more nandocas. To strike the balance between the internal and external environment, the HR of Nando's takes the responsibility of searching for Nandocas whi is more able to be a Patrao, which means as Manager, general Manager or the Managing Director. Bearing in mind that the passion of the Nandocas increases the growth of the brand. Their details are also filed for the future reference.
The HR of the Nando's usually encourage the applicants that they should contact the local management team. The vacancies usually become available at the Central Support Level and within the restaurants especially to work on tills and to be grillers. The online recruitment system is also available where the applicants can submit their CV. The page which says career opportunities is one of the important element of the website. Currently there are positions available in the different areas of the country. Nando's tend to prioritise the people of local areas to make the local version of the restaurant in their respective countries. This has been the key to achieve the objectives set by the company.
The company also made a partnership with the online job search companies like the Global Recruitment Resource etc in order to fill in the vacancies which are not available immediately to fill in with internally. Once a person is hired by Nando's, they will be called as Nandoca. They usually fill in full time and permanent positions.
When speaking about the legal aspects of the company, Nando's shows its commitment towards the equal opportunities policy giving equal importance to everyone. It also believes in diversity of the people, origins and beliefs. The HR of Nando's also makes sure that the information about the vacancies, is mainly publicised in order to reach all the sections of different communities. The recruitment is mainly based on a objective and fair criteria.
Training and development at Nando's
In today's world the applicants take the opportunity to take the chance to develop. The employers tend to train and develop their employees to get the best out of them. Nando's understand that the employees should be well trained to focus on their current work and also to develop themselves in order to develop for the future jobs. The HRM model which is resource based provides the way of the possibility of learning which is related to the work and helps the employees to develop with the strategies of learning. Â Â Â Â Â Â Â Â Â Â Â
They run a development program to progress in the career which guides the HR of Nando's to allow the employees and the trainee employees to recognise and identify their true potential. The company invests a huge amount on the people and also training which is the reason why the trainings are always ongoing which are performed in the house. With the working of the Learning and Development, which is processed with every individual's demands and needs. During the first three months, the trainee employee will be devoted to the learning of the essential skills required for the job and also the skills of management for future purpose. These trainees are coached and supported by the legends of the Nando's and other employees who work for the Learning and Development department.
When the employees complete the three months training programme, they will be given invitation for a self development workshop where the employee will have to prepare a plan to develop in the future. The next trainings will depend on the position which the employee is presently occupied. The Nando's also conducts coaching programs, training and to work in the management teams.
Compensation at Nando's
The HRM model claims for the betterment of the processes at internal level. The definite processes, systems and procedures are aimed at the consolidation of the ongoing education, competencies, performance at the individual and the collegial levels and the reward systems. For example, to deal with the compensation, is is done uniquely taking the basis of the business and the function at the corporate level. The compensation aims to establish and maintain a workforce which is cost effective, competent and loyal.
Being at the Nando's the employees tend to experience the direct and the indirect compensations. Their basic salary is decided on their experience, quarter and the annual bonus are also given to the employees to encourage the staff. Apart from giving free meals to the staff, the Nandocas are also given 20% staff discount. They are also given a 28 days of paid holidays and also a long service pay reward where the employee will get an extra 4 weeks to be taken all at one time after every 5 year period time. (Nando's online 2009)
The Nandocas also enjoy the area drinks evenings for every four months which include a Christmas party at end of the year. The restaurants will be closed a bit early during these days especially in the month of December for the employees to enjoy the festive season and to celebrate. The annual fun day is also available for the family members of the employee and they will enjoy parties in the parks.
The employees who work in the management position will be given the opportunities to attend the conferences annually. Apart from the chance to be Patrao, once they complete the 18 month period of being Patrao, they will be given chance to join a partnership scheme if they meet the KPIs and the values of the company are lived. When the Patrao becomes the partner, they will be benefited to input the decisions and a good reward for being a stakeholder at Nando's.
Human Resource Planning
The Human Resources broaden the term which refers to the term, Human Capital, the people of organization. The field has developed from the traditional administrative function to the strategic function which recognizes the work of the engaged and the talented people for the success of the organization. The Human Resources will have minimum 2 interpretations. The development of the human resources can reach more than the nations. The Human Resource Planning is a part of the Human resource Management. HRM has been the concept which was used since the people have started by following a way of life which is organized.
In the present time , HR has equal importance as any other department of the organization and in some of the corporate companies the importance of the HR is even more. As the technology and the education tend to increase along with the increase in the economic status and the structures, the HR is the most mature, oldest and the efficient compared to the other styles of management.
The Human Resource planning is implemented as a policy especially it can be understood as a framework which a person can analyse and describe a group of objects which work to get a result. This explanation serves as the important structure and the fundamentals in resourcing the skills of an individual. Human resource Planning is one of the active processes where the company tries to assess continuously in respect to the talent of the employee and the requirements to achieve the success. Through this process the organization tends to identify, develop, implement the options, methods and the tools to achieve the required state.
The Human Resource Planning helps the organization by selecting the suitable person who possess the right skills and who will be able to implement the strategies of the organization to achieve the objectives of the company. Also the HRP is the process to analyze the needs of the people. It is quite important that the Human Resource Planning set the objectives of the Human Resources and decide how to reach the objectives. In this process, the management interfaces with the planning strategically and scans the environment. Even before the strategies are implemented, they will be monitored and the inventory of the resources, then they will be forcasted. In addition the external labour market helps the company to make the decisions regarding the Human Resources. The created forecast which has been created is compared to the supply and the demand. This is done in anticipation to the shortages and the overages.
Human Resource Development
Tremendous challenges have been created in the organization during the period of Industrial revolution. The need for some of the methods to deal with the new issues has come up with the management of the organizations with the need of the material, information and the people. Wertheim, ( 2003) has attempted to analyse the behaviour of human at work, looked the human characteristics interaction, social and physical environment, speed, capacity, cost and durability. The main goal was removal of the human variability. Most of the workers have resisted which was called as the dehumanization of the work. Inspite of the progress economically brought by the Industrial Revolution, the critics calling for the attention to the management, boredom, wasted human resources.
New assumptions were developed in the organization because of the increasing concern on the management of the Human Resources. The assumptions explain that the people satisfy a certain class of needs at work place, where there is not any conflict between the individuals and the objectives of the organization. Also state that the people try to act rationally to get more rewards and people act at individual level to satisfy their needs.
The issue of the requirement in becoming the principle-cantered inividuals has been addressed by Covey. Some of the principles are very important even than the success or the ongoing of the business. If someone will let the business to fall than setting the ethical standards to a side can manage to return back to their own business as they were once able to maintain the integrity and the good name but those who try to keep the business run losing their ethics may end up in loss of the company's name.
McNair in (1998) has suggested some principles for the success of the business.
To show proper respect for the authority,
when there is a conflict of the interests, having a singleness is important.
Use of effective communication in word and deed as well as it is the important factor to express the integrity of an individual.
The employer has to let the employees to get good rest in need, recreation and also reflection. This helps in enjoying a quality life which will then be reflected in the creativity, production and also motivation.
Giving respect for the human life, rights and dignity. The product quality is then encompassed, the service and the environment at work, safety issues, health related matters.
HR Planning and Development Methods at Nando's
The management of the Human resources mainly focus on the planning of the people and also the whole organization. The plans of the HR involve the market and the future. The planning mostly starts by the assurance that the correct number of people are appropriately placed in proper position.
Nando's ensures that there is right person at the right time in the right job. With this it tries to encompass three processes which include the strategic plan which is based on the forecasting of the personnel requirements, skills for the analysis of the personnel supply and the buddy system in order to match with the requirements.
The planning of the Nando's is most often built on the continous roll out of the restaurants. These type of the programmes require that it is important for Nando's to construct a leadership and the competencies. There are also other challenges which include the risk of loss of the five important values of the restaurant. With the HR team, the human resources demand will be forecasted on basis of the number of the stores.
Human Resource Performance
The mission is carried out by the campus with the help of the collective and individual contributions from the employees. In order to do their best, the staff should know that these contributions are acknowledged and recognized.
The Performance Management is one of the key processes which if effectively carried out can help the employees to identify their contributions and to acknowledge. Performance Management is a continuous process about communication between an employee and the supervisor which usually occurs throughout the year. It takes support for the accomplishment of the organization's objectives. This process includes the clarification of expectations, setting of the objectives, goals identification, providing the feedback and to evaluate the results.
Managing Employee Performance
To oversee the performance and to provide the feedback is definetly not an isolated thing in the evaluation or assessment of the performance. It is usually an process which is ongoing and takes place all the year. This is a cyclic process having discussions every year depending on the change in the objectives.
This cyclic process includes Planning, Checking-In, and Assessment.
In the process of planning, there is a review of the overall expectations which include the development of the objectives of the performance. The developmental goals of the individual are updated. Then a plan which will direct the efforts of the employee towards the achievement of the results in order to support the excellence of the organization and the success of the employee.
The set objectives and the goals are often discussed throughout the year especially in the check-in meetings. This will provide a framework to make sure that the employee achieves results by coaching and the feedbacks.
When the performance period comes to an end, the performance of the employee is assessed against the objectives and the measures and the means used, the behaviour of the employee in the process of achievement of the objectives. In account of all the above new objectives will be set for the following period.
Â HR Performance of Nando's
All the organizations allot about 30% of the total revenue for the compensation of the employees. The expenditures of the compensation are evaluated to determine the effectiveness and the performance which is the main base for the compensation is also assessed. The performance of the HR is not to be considered as an exemption. It is the same as in nando's as well. The company uses a strategy of the market leader in terms of compensating the workers. Such type of strategy helps the company in attracting and retaining the employees who have the required abilities.
The restaurant recognizes the role of the HR and the key for the success of the restaurant. The HR people take the responsibility in the development, implementation and ensuring the strategies to achieve the goals of the business and to deliver the commercial objectives. the HR people take the priority in providing the high class quality service to the customers. Any issues related to the people are dealt with a systematic way with the implementation of the HR strategy at different levels across the country.
The performance of the Nando's is measured by a 360 degree appraisal to serve the purpose of highlighting the weaknesses and strengths of the people. It also helps in identifying the needs of areas of development. Usually there will be about 8-12 people where there are supervisors, team members, coworkers, subordinate and the customers. The training given to them depends on the appraisals and also depends on the learning system preferred by them.
Nando's also conducts a staff survey to determine the performance effectiveness of the HR. Accordingly the HR staff will be rewarded more than the basic salary.
The 360 degree feedbacks and the staff surveys are mostly comprehensive in nature as the responses are usually gained from many perspectives and gives input for the behaviour and the outcome but the tend to lack objectivity. The management of the performance is a strategy which relate with the endeavours of the organization which is embedded in the HR poilicies.
For the appraisal to be more precise and objective, there has been implementation of behaviourally anchored rating scales. (BARS) and a critical incident file.
The critical incident file usually refers to the method of performance appraisal where the manager pens down the positive and the negative behaviour of the performances of the employees throughout their period. This file is usually in the form of a document which contain the comments about the important events of the employee during his working life. The drawbacks of this are that it could be bias due to the nature being individualistic and being dependant on the appraiser's competence. In case of Nando's it requires a higher position than the HR to do the documentation work. Anyway there is a challenge in this as the employee should be working closely with the HR people.
The BARS has got its strengths like it is even more accurate and objective in nature than the critical incident file. It has the legitimacy as the performance effectiveness is measured by numerous statements which describe the HR employee performance. The superior is the one who selects. The best of the statement will be chosen based on the metrics and the standards.
Â Conclusion and Recommendation
Thus the different strategies which are implemented in the restaurant complements with the HR functions like recruitment, training of the employees, their development, performance appraisal. Nando's aim for the individualism of each branch for which reason the five important values are integrated carefully in the process. It also aims at the cultivation of the people culture with the help of the HR department. This can be understood with the spontaneity of the Nando's process.
Nando's has the right in devising a successful plan which helps to align the people culture and the five important values with the strategic direction. The goal of Nando's is to gain and to retain the quality work. The audit of the skills will be the starting point of the successful process in the planning. The auditing of the skills result in the understanding of the skills required, if there are any gaps in the organization, the developmental needs and also the number of people who needs the development. The data which is used for the internal selection can also be used for the planning of the success.
Career pathing is an action which is important for the effective planning of success. This can be defined as the sequence of the developmental activities, which involve formal and informal education, training, experience of the job which help the individual able to hold the jobs which are more advanced. The career paths usually lead to the describing of the work. It also describes how the sequences relate with each other. The Nando's use career pathing activities which help in enhancing the skills, the competencies of the employees and their knowledge.