Human Resource refers to the people, employees, workers or organizations human capital. HR department or support system is responsible for personnel sourcing and hiring, skills development tracking, applicant tracking, benefits administration and compliance with associated government regulations. HR responsibilities cover payroll, employee benefits, hiring and firing, keeping up to date with state and federal tax laws. This also includes background interviews, exit interview and wage reviews. It is that part of the management which is concerned with developing and maintaining qualified workforce-human resources- within an enterprise that ensure people contribute as effectively as possible towards the organization's objectives.
In order to cover this research work, to explore Human Resource Management, Human Resource Planning, Human Resource Development and its activities for an organisation in terms of mission and vision, aim and objectives, a largest British grocery retailer TESCO will be taken as a case study.
Tesco is the world's third largest grocery retailer and the largest in England with outlets across Europe, USA and Asia. It is established by a single man Jack Cohen in 1919A.D, selling groceries from a stall in the East End of London. In 1929, the first Tesco outlet opened in North London. Tesco has expanded since then by a combination of acquiring of new stores, retail services and by adapting to the needs of consumers. Tesco now has over 2,200 stores ranging from the large Extra hypermarket stores to small Tesco Extra high street outlets. Tesco now has approximately 280,000 employees in the UK. Tesco's employees work in a wide range of roles in both store and non-store functions, such as:
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â€¢ Customer Assistants on the shop floor either directly assisting customers or preparing
orders for delivery to customers who have ordered online
â€¢ Department Managers leading a team of Customer Assistants
â€¢ Warehouse employees who help catalogue and store clothing, food or electrical goods in Tesco Distribution Centres or in stores
â€¢ Office-based staff working in a range of functions at Head Office, including Finance,
Purchasing, Personnel or Marketing
â€¢ Logistics staff who plan and carry out the distribution of products to stores.
Tesco's original product range of grocery and general merchandise has diversified to include banking, insurance, communication, electrical goods and airtime. Tesco has also expanded its customer base through its tesco.com website to attract millions of users.
Personal Management include administrative tasks that are both traditional and routine which can be elaborated as reactive, providing a response to demands and concerns as they are presented. It is often concerned as an independent function of an organization whose main functions are dealing with payroll, complying with employment law and handling tasks. Personnel management is typically the sole responsibility of an organization's personnel department. It believes employee satisfaction bring motivation necessary to improve job performance.
Human Resource Management is the utilisation of human resources, involves ongoing strategies to manage and develop workforce to achieve organisation's objectives. It is the comprehensive set of managerial activities and task concerned with developing and maintaining qualified workforce that contributes to the success of an organisation. A primary goal of human resources is to enable employees to work to a maximum level of efficiency. Human resource management is integral part of overall company function and it holds that improve performance leads to employee satisfaction.
To: - The Line Manager
From: - Trainee Manager
Subject: - Comparison of Personal Management and HRM
Date: - 30 -04 -2010
As the comment was made in the senior management meeting that our company has been suffered from adopting personal management approach, I would like to compare and contrast Personal Management and Human Resource Management. Personnel management is an independent function of an organization where as HRM tends to be an integral part of overall company function. Personal management is reactive, providing a response to demands and concerns as they are informed. Whereas HRM involves ongoing strategies to manage and develop an organization's workforce. It is proactive, as it involves the continuous development of functions and policies for the purposes of improving a company's employees. As far as motivation factors are concerned, PM seeks to motivate workforce with such things like compensation, rewards, bonuses and the simplification of work responsibilities. With HRM work force planning, recruitment, skills management, training and development, time management, compensation, travel management, induction and orientation, employee benefits administration, personnel cost planning, performance appraisal, handling meetings and job creativity are seen as the primary motivators. HRM holds that improved performance leads to employee satisfaction.
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PM is more administrative in nature, dealing with payroll, complying with employment law, and handling related tasks. On the other hand, HRM is responsible for managing workforce as one of the primary resources and enable employees to work to a maximum level of efficiency.
So, if any organisations that adopt personnel management, its employees are reactive, less competent, lack of handling situation, nepotism, stick to the single department only. Whereas an organisations adopting HRM, it incorporates and develops personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization.
So in my opinion, for any organisation HRM contributes the continuous development of functions and policies for the purposes of improving a company's workforce.
Recruitment is the process of finding out that the organisation needs to employ someone and generating a pool of qualified applicants for the organisational jobs. It involves attracting the right standards of applicants to apply for the vacancies. Being a trainee manager at Tesco I need people across wide range of both store-based and non-store jobs:
In store-based, I need checkout staff, cashier, stock handlers, supervisors, butchers, as well as specialists such as pharmacists, bakers etc.
In non-store based, it requires accountants, skilled people in stock management and logistics, IT technicians etc, security staff, cleaners etc.
For the recruitment purpose, I would advertise jobs in different ways as the Tesco itself do. I would target for the few number of skilled and experienced workforce through the internal talent plan that lists current employees looking for a move, either at the same level or on promotion. Because as our Tesco Extra is totally new, it is better to start with the few experienced and skilled employees so that work goes efficiently. If I would not find any suitable employee in this talent plan, I would advertise the post internally in its intranet for two weeks.
For external recruitment, I would advertise vacancies via the Tesco website www.tesco-careers.com, in Newspapers, magazines or through vacancy boards in stores. As our Tesco Extra is in small town and we had two major competitors, I would like to advertise in local radio and FM so that I could aware the locality and utilize the local resources.
Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment and the main advantage of this system is it will reach wide. It is the best way of recruiting employees who are skilled.
Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. Company can employ people through this source too.
Government established public employment exchanges throughout the country. These exchanges provide job information to job seekers and help employers in identifying suitable employees to perform work properly in the workplace.
Campus/University, labour and trade union recruitment is also another useful source for company to find talented employees.
Selection is the process of choosing the most suitable people from applicants to fill the right post at right time. Being a manager I would follow the UK's Employment laws and regulations for the selection process. It ensures that those selected for interview have the best fit with the job requirements.
In the first stages of screening, I would look carefully at each applicant's CVs. A well written and positive CV helps Tesco to assess whether an applicant matches the person specification with job specified. It can be done by job analysis following the rules of matching the knowledge, skills and abilities (KSAs) of people to the characteristics of jobs (tasks, duties and responsibilities-TDRs).
Frame work for selection process:0804
For the right person to be fit, he/she must have met applications and background checks qualified. In employment tests he/she must perform well. While taking interview he/she must have leave good impression. His/her references and recommendations should pose positive feedback. Applicants must be physically healthy enough to perform the job. It means they shouldn't have any serious communicable diseases. If meets all the criteria he/she shall be selected and being a Tesco manager I would offer a job. I would formalize the offer with a letter to the applicant clearly stating the rules and regulation of the organisation as well as terms of condition of employment. I would avoid general statements and verbal promises but indeed a signed acceptance of the offer.
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After the selection of the staff we should be very careful that after being trained and experienced, the hired staff should not leave the organization within the short span of time so that company would suffer from investment, training time and skilled manpower. For this we always kept in mind that the utmost care, concern, commitment and contribution of all the employees are essential for the existence, development and the static progress of any organization. Hence, there is need for appropriate employee retention process. Employee retention process is keeping the existing staff for the longer time maintaining their whole-hearted commitment to the progress and welfare of the organization, through keeping them satisfied and happy in our organization. This obviously would reduce staff turnover and cost down. The staff retention begins not only after the selection but also at the time of recruitment. Employee retention contains lofts of factors concerning the employee's satisfaction, personal development, training, career-growth, motivation, rewards and appraisals, economic standard and organisation's environment.
The factors that concern with the staff retention are:
Character and suitability employees
Employee incentive program
Human resource management
Compensation and Benefits
For recruiting and hiring a candidate who will become a successful, contributing superior employee:
I would suggest for selection of the right people in right place through behaviour based testing and competency screening like KSA and TDR skills. The right person, in the right place, in the right time is the key to success. An organisation should offer an attractive benefits package in order to meet competitor's salary package including insurance policies and flexibility of working hours. We have to allow them in participating meetings and hear their grievances as well as sharing of knowledge. Provide personal development program via training sessions and education, presentations, monitoring others and team assignments. People like to know that they have opportunity for career development. We have to take care of all the employees at same level and by demonstrating respect for all employees at all times. Listen to them carefully, use their ideas but never demotivate them. People love good environment, so make work fun. Engage and employ the special talents of each individual. We have to provide flexible working hours keeping in mind of employment act. Never underestimate them nor pay them against equal pay act. We have to pay them according to National Minimum Wage (NMW). People love appraisal and recognition, offer performance feedback and praise for good efforts and results, often link pay to performance. Involve employees in decisions that affect their jobs and the overall direction of the company. Provide refreshments and celebrations in organisation's anniversaries or in special occasions. Besides the wages and salaries, pay bonuses to the employees when company makes a profit. Effective communication should be established through all the levels so that they should know roles and responsibilities as well as the organisational goals. According to research by the Gallup organization, "Encourage employees to have good, even best, friends at work."
What legal and ethical issues must you keep in mind throughout the recruitment and selection process?
While recruitment and selection process I should have kept in mind the Nation's laws and regulations as well as the organisation' ethical issues. Following is the legislative framework in recruitment and selection process.
Employment Protection Act (1978)
Sex Discrimination Act(1975)
Race Relations Act (1976)
Equal Pay Act (1970)
Disability Discrimination Act (1995)
Rehabilitation of Offenders Act (1974)
Employment Protection Act (1978)
In the process of recruitment and selection process, after the applications have been received from the candidates, the applicant can either accept or reject. After selection of the candidates, it should define the terms of the contract of employment stating name of the parties concerned, job commencement date, job title, job responsibilities, terms of payment, working hours and holidays, sick pay, pension entitlement, termination of job, disciplinary and grievance procedures.
Sex Discrimination Act (1975)
One should not be discriminated with the issues of being men or women. All the terms and conditions of employment should equally applies early in the process of recruitment.