Personnel Management And Human Recourse Management Commerce Essay

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In Human Resource Management (HRM) Recruitment, the selection and motivation process is one of the most important factors in facilitating the growth and success of an organization. Recruitment and selection of the wrong people for an organisation can lead to increased labour costs, increased labour turnover, and moreover could lower the morale of the existing employees of the company. On the other hand motivation can increase the longevity of staff into organization and increase the productivity of the organization. For that reason HR need to appoint those people who are eager to work with their 'best' and give them training and motivation for the success of business. To do this organization needs a successful HR role and strategy, can providing adequate assistance, motivation and training to staff.

The purpose of this study is to develop a model defining the role and importance of Human Resource Strategies of an organization in keeping its staff motivated. To fulfil this, it is necessary to discuss the history of HRM, the change from personnel management to human resource management, and how the HR department can keep the staff motivated within the organization. This chapter defines the nature & scope of the research, its background and importance, the structure of the study/ project and the purpose of the research.

This report also discusses the backgrounds of personnel management and human resource management, existing business organization, structure of organization, and the change from personal management to human resource management. The aim is to determine what changes need to be made to the existing human resource management and to define the role of human resource management within the organization.

Nature & Scope of Research:

The research will determine the different period changes of HRM, its role and what challenge it brings into an organization. The implementation of a program directed by this challenge will be discussed in this report. This case study based research will also gather coherent data from different secondary source. Different stage of HRM into an organization will be discussed.

Research Background:

The aim of this research is to analyse changes in Human Resource Management format over time, and to analyse the role and importance of HR strategies in keeping staff motivated. The research discusses the very earliest format of HRM which arose from consideration of Industrial welfare, and was expressed in 1883. This research report considers HRM in the 19th century, how it was implemented and how it worked in the organisation, and continues to discuss its history of modernisation in the 20th century as, due to the success of modern science, people started to use the latest technology towards achieving their goals in organisations. HRM made an important contribution in developing strategies for the role and successful use of such technology. The latest concept of HRM is Human Capital Management (HCM). This does not mean that people are seen as an economic unit; rather it is about enabling them to develop their talents - which will bring benefits into the business

During the conduct of this research most of the date has been collected from secondary sources such as - website, books, online, library, class note and journal. As an example of HRM procedure, the researcher has collected some primary data by a short interview of a member of staff of HSBC bank plc from 40-24-10 branch. All the information sources are detailed in the reference list.

Purpose of the research:

The purpose of this study is to develop a model defining the role of Human Resource Management of an Organization which is keeping its staff motivated.

This research has particularly focused on the functions of recruitment, training, motivation and development.

The main purposes of this research are:

To find out how the HRM of an organization motivates the staff to increase productivity.

To find out the impact of un-motivated staff on the organization.

To analyse the effective strategic contribution of HRM on an organization.

To analyse the total human resource activities within an organization.

Importance of the Research:

The importance of this research is the consideration of the knowledge gathered about the past form of HRM and how it related to the present situation. This entails researching the present strategies of HRM in the organisation, and how they are working, both in terms of personal development and business success. It also means identifying the motivation procedures of the company in the same terms. The impacts of unmotivated staff on the organisation have also been discussed.

Structure of the Project / study:

This research report has been conducted on the basis of secondary data and some primary data. Structures of the project are as follows:

Chapter 1 discusses the basic concept of HRM and the background, importance and purpose of research

Chapter 2 discusses the HRM and its new paradigm, organizational concepts and structure, employment cycle and human capital.

Chapter 3 analyse the methodology of this research

Chapter 4 discusses the result of research

Chapter 5 discusses findings and recommendations.

Chapter- 2

Literature review

2.1 Introduction:

In this digital information age the organizational focus has changed from physical to intellectual. The key points for success of an organization are knowledge, skills and technology. Organisations need to use these valuable assets positively in order to succeed, and concentration on them means concentration on intellectual assets, i.e. People! In today's climate of limited financial assets, valuing and enhancing intellectual assets will be crucial to reach organisational goals.

According to Beer et al., 1984, "All management decision and action that affect the nature of relationship between the organization and employees - it is human resource".

According to Lipiec 2001,

"Human Resource professionals basically deal with such areas as employee recruitment and selection, performance evaluation, compensation and benefits, professional development, safety and health, forecasting, and labour relations as well as management of diversity, job analysis and job design".

So HRM is the process of developing a relationship between management and labour which involves decisions about staff recruitment, performance evaluation, benefits and compensation, and which takes into account also the need for diversity of management approach to different issues.

2.2 Background:

Due to change in the economic and social activities of an organization, Human Resource Management changes its format in different times. Industrial welfare was the first concept of HRM. In 1833 an act was passed by Parliament stating the factory supervisor must be a male member of staff. In 1878 another act was passed that child and female work hours should be 60 hours per week. At the beginning of the 20th century industrial welfare workers formed an association by the name 'Chartered Institute of Personnel and Development'. During 2nd world war all the organization focus was on recruitment, selection and training, improving motivation, discipline, health and safety and wages policies. At that time this Personnel Management concept formed. During 1990 organizations began to use this concept as a part of Human resource management programme. At the beginning of the 21st century, e-commerce and m-commerce brought another concept of HRM which is Human Capital Management (HCM). This concept is that the organization will use the human skills and talent by providing modern technological training, motivation to achieve their goal dramatically. The successful activities of HCM will increase the productivity of an organization. []

2.3 Personnel Management and Human Recourse Management

People are the main assets of an organization. Business transitions, communication with customers and the media, account management etc. would not be possible without people. Today's organizations are continuously changing, and these changes impact not only on the organization, but also on the employees. In order to maximise the effectiveness of the organization HRM must ensure that the employees are capable of meeting its goals.

According to Gunnigle et al., (1997), 'people are the lifeblood of an organization'. It is very difficult to manage human of an organization: it means dealing with the people who is differ physically or psychologically. However, there are two labels of people management we can see, one is Personnel Management and second is Human Resource Management.

According to Gunnigle et al., (1997) the main activities of personnel management are as follows:

Strategy and Organization

Employee resourcing

Employee development

Reward management

Employee relation and

Employment and personnel administration.

Personnel management in Britain has its roots in the industrialization of the latter half of the 19th century, when welfare workers were employed to meet the concerns of paternalistic employer for their workers. The term 'Personnel Management' came into use during the Second World War. The objectives of personnel management where to meet the concerns of employers to create and maintain good relationships, which meant considering the wellbeing of all individuals. This would include methods of recruitment, selection, training and education, terms of payment and working conditions.

According to Armstrong (2003), Personnel Management is "to obtaining, Developing and Motivating employees and making best use of their skills".

Some Scholar says that 'Human resource Management' is just a grander term for a mundane function, representing 'old wine in new bottles'. Others argue that HRM reflects a fundamental shift in employment relations, made necessary by changes in organizational environment. Many organizations' view is that employees are their most important asset. HRM appears to represent a distinctive approach to managing that asset. [2]

In the late nineties, due to increases in competitive pressure on the businesses, increased globalisation and a generally harsher business environment, HRM dramatically changed its function, which increased business activities and productivity smoothly.

HRM can be defined as a part of management concerned with:

All the factors, decisions, principals, strategies, operation, functions, activities and any kind of methods related to the management of people as employees in any kind of organization.

Every activity related to people in their employment relationship, and

Adding value to delivery of service and to the quality of work life for employees. [].

HRM gives strategic and coherent structure to the management of an organization. It is its most important asset. The people who work there contribute individually and collectively to achievement of the organization's objectives. The term HRM and HR have widely replaced the term of 'personnel management' as a description of the process involved in managing people in organizations. So we can say HRM means recruiting people, improving their capacity, providing proper training and education, utilising their talents fully. It means finding ways to motivate them in order to maintain their service in tune with the requirement of the organization.

By comparing with Human Resource Management and Personal Management, we can see that HRM is the achievement of organization which gives the strategic solution. On the other hand Personnel Management gives the short term solution of the organization.

Armstrong, (2003) defined HRM as "a strategic approach to the acquisition, motivation, development, and management of organization's human resource".

However, HRM was founded on the supposition that it should be include in the top level corporate strategy of an organization as a part of its long- term view.

2.3.1 Transformation of personnel management into Human Resource Management:

According to Gopinathan Thachappilly (2009):

"Personnel Management was focused on employment contracts, disciplinary issues and compensation. Human Resource Management sees employees as high-value business resources".

As the above definition points out, we can say that Personnel Management area was very limited in the work place. That department used to do the service contract, and follow the organizational rule for discipline and compensation. Modern technology meant that, by using their knowledge in this area strategically in different sectors, people could become major assets to the organization. It has largely replaced personnel management, which traditionally viewed organizational culture and leadership as issues concerned with organizational development, whereas HRM highlights the responsibility for managing organization culture and leadership issue as being concerned with personal development

Comparison diagram between PM to HR.


2.3.2 Human Capital Management:

Human Capital Management is the modern version of Human Resource Management. Strategically people need to be used in the organization to achieve a better outcome for the business. Today, human resources are dramatically shift to all across the globe. The influence of technology effectively caused industry leaders everywhere to change their focus from the use of less skilled worker to the encouragement of highly skilled workers. It is necessary for those who manage people to nurture them by educating them and developing their technological skills instead of gathering up huge numbers of workers of unskilled workers and sending them off the fields or industry.

HRM emphasises that people are the most fundamental assets to a company and is focused on finding the right kind of people to get the job done. The idea behind HCM is first and foremost the transformation of a worker into a competitive resource. For business to succeed, HCM needs to focus modern technology and HR software to introduce the right talent in the right time. [5]

2.3.3 The Organization and its structure:

An organization is created when two or more people get together and agree to co-ordinate their activities to achieve their goals. Every business faces problems when starting up, and beginning to grow. The main problem is structure. All institutions in the world keep changing their activities, as well as their organizational structures, in support of modernization.

The following definition was developed in 1969 at the time when the organization was considered to be much like a stable machine comprised of interlocking parts.

"Organization development is an effort planned, organization - wide, and managed from top, to increase organizations effectiveness and health through planned interventions in the organization process- using behavioural- science knowledge".

(Beckhard, "Organizational development: Strategies and model", Addison wesly- 1969 p 9)

As per Cummings and Worley, "organization development and change" sixth edition, south western publishing, 1997, p2.

"Organization development is a system wide application of behavioural science and knowledge to the knowledge of the planned development and reinforcement of the organizational strategy, structure, and process for improving an organization's effectiveness". [7]

Structure, this is the formal system of work defining in order to achieve the goals of the organization. Organizational structure is necessary to encourage the staff to work hard, develop a positive the work attitude and enable them to co-operate and work effectively.

Organizational structure affects:

Staff behaviour

Staff motivation

Performance of the employee

Team work and co-operations

When the management of an organization takes decisions about the behaviour of their employees to behave, what attitudes need to be encouraged, it can design its structure to enable the development of the culture values that will enable it to reach the desired goals. Organizational structure and culture are determined by the environment, technology and strategy.

We can classify the organization structure into three which are as follows:

Functional structure

Divisional structure and

Matrix structure.

1. Functional Structure: A group of people work together to perform similar set tasks. Perhaps it is the most common model in the organization.

Advantages of Functional Structure:

Easy communication among the specialists

Quick decision making

Learning system from superior

Performance evaluation for supervisor

Creates teamwork

Create a career ladder.

Disadvantages of Functional Structure:

Service needs of all products


Service needs for all regions.

Diagram of functional structure:


2. Divisional Structure: Divisional structure that overlays functional groupings allows an organization to coordinate intergroup relationships more effectively than functional structure.

Advantages of this model of Divisional Structure are as follows:

Quality product

Better customer service

Facilitates communication

Customized management and problem solving

Good team work

Facilitates decision making

Clear connection between performance and reward

Customized service

Identification with division

Disadvantage of Divisional structure:

Operating and managing cost are high

Less communication between the division

Conflicts among the division.

Divisional Structure of organization


3. Matrix Structure: This is a very complex form of structure within an organization, in which the employees who are members of the production teams have two bosses; one functional, the other product-based.

Advantages of Matrix structure:

Continuous development into production

Communication and co-operation increase between the team members

Creativity and innovation

Face to face problem solving

Easily manage the change of members in product team

Disadvantages of Matrix structure:

Conflicts increase between the department

Work stress becomes high

Few opportunities for promotion

Model of a Matrix structure:


General opinion on organization and its structure: All the organization and its activities are all run by the people within it. Depending upon the activities, the management fixes its structure to achieve particular goals. To facilitate its activities all large organizations create an HR division, which is responsible for supporting the different divisions by providing suitable manpower. As for structure, the HR division manage people by recruitment processes. To get benefit from the skills of those selected HRM provides appropriate training. When organizations expect more benefits from employees they try to motivate them in different ways such as promotion, incentives, holidays, good work environment, transport facilities etc. only a well functioning HRM department in an organization can motivate employees to increase productivity.

2.3.4 HR Policy and Strategy into Organization:

HR policies are desired to ensure that HRM deals consistently in line with the values of the organization as to people should be treated, and that legal requirements are met. The overall HR policies are how the organization fulfils its social responsibilities for its employees.

According to Selznick (1957), enterprise

"The formation of an institution is marked by the making of value commitments, that is, choices which fix the assumptions of policy makers as to the nature of the enterprise, its distinctive aims, methods and roles."

The values expressed in an overall statement of HR policies may explicitly or implicitly refer to the following requirements:

Consideration for decision making


Improves quality of working life

Organizational learning for promotion

Performance through people

Respect as human beings

Safe working condition.

In different ways or the same way these values are supported by many organizations, and are practised when making 'business-led' decision.

The specific HR policies are as follows:

Age and employment terms and conditions include age limits responsibility, payment, promotion, punishment, etc.

Deal with hygiene and safety insurance policy for staff

Make sure that bullying will not be tolerated by the organizations and that those who persist in bulging their staff will be subject to disciplinary action.

Disciplinary policy should state that the employees have the right to know what is expected from them and what could happen if they violate the organization rules, and that this policy will be followed

Diversity of management policy.

Acknowledge cultural and individual differences in the workplace

Emphasize the needs to eliminate bias in such areas as selection, promotion, performance assessment, pay and learning opportunities.

The employee's development policy could express the organization's commitment to the staff.

Employee's relation policy set out.

Employee's voice policy spelt out.

Employment policies such as promotion, redundancy, reward, sexual harassment, substance abuse etc.

Equal opportunity policy

Health and safety policy fixed

2.4 Employment cycle:

The HR department of an organization is responsible for the proper use of employees. It depends on their capability that how the department use these peoples to reach their target. It is very realistic, and understands that when an organiser or owner decides to start the operation of a business he/they will need the people in order to achieve the goal. For success achievement they need to use these people strategically. Human Resource Management performs this job properly.

The employment cycle is the pattern of the systems an organization controlled by the HR division to recruit the people, give them proper training to get the job done, as far their skill and expertness allow for to fulfil the target of an organization staff need to work amiably - and for that they need motivation. Motivation is the most important and major element to ensure the success the business. This is concerned below in this research. Termination or retirement is the last step of the employment cycle. All steps are discussed below:

2.4.1 Recruitment Strategy:

To fulfil the organization, target are needed people as employees. For that reason most of the large organizations follow some specific criteria to appoint the people to organization.

According to Korsten 2003, and Jones et al 2006,

"The recruitment process could be internal or external or could also be online and involves the stage of recruitment policies, advertising, job description, job application process, interviews, assessment, decision making, legislation, selection and training".

Recruitment is the most important part of the management. Improper recruitment can create difficulties for any organization can even create adverse impact on profitability. Inadequate recruitment can lead shortage of staff, create problems in taking management decision. []

During the time of this research some data has been collected from the HSBC bank at Henley-on-Thames (branch 40-24-10), regarding their recruitment. The different steps of recruitment of this bank are listed below:

1: Applicants needs to apply online by completing some questionnaires

2: Online numerical and verbal reasoning tests

3: Telephonic interview

4: Mini assessment centre

5: Graduate assessment centre (half day)

After analysis of the HSBC recruitment policy it was observed that the company followed the Fraser five - point plan. This says that before selection a person as a staff member the company needs to justify the candidate's qualifications, brains and abilities, motivation, adjustment and impact on others.

Roger's seven point plan for an applicant's selection for a job is- physical makeup, attainments, general intelligence, special aptitudes, interest, disposition and circumstances.

HSBC recruitment policy follows both Fraser's and Roger's policy. [12]

2.4.2 Training Systems into Organization:

Training is the planned and systematic modification of behaviour through learning events, programs and instruction which enable individuals to achieve the level of knowledge, skills and competence to carry out their work effectively. Training means the development of the staff in working areas, training means achieving more knowledge, and training means increase in the expertness, skill and activity power in the respective area. It will have a limited time period for a specific level.

Across the world HSBC have different training centres or regional training centres. In different countries they have their own training teams who conduct training by the instruction of country directors or regional in charge. For example, in Thailand they conduct training by their dedicated training team as well as by trainers from their learning and development centre in Singapore and Hong Kong. In the United Kingdom employees are also taken the opportunity to share best practice among their colleagues during training sessions in their many overseas centres in the world.

HSBC training processes are as follows:

Classroom training

On-Line training

E- Library

Business education program

Monitor programme

International Assignment etc. []

2.4.3 Motivation system into Organization:

According to Dr. Wolfgang Seidl (executive director- Validium Group) 'Happy employees are more productive, friendly and successful at work. This is not just positive psychology, it is scientific fact.'

Staffs need motivation to better their work performance. This recognition could be a promotion, incentive, increases salary, transport facilities, medical allowance, paid holidays, increases power and responsibility at work.

According to Frederick Winslow Taylor (1856-1017), "Workers are motivated mainly by pay". His theory of Scientific Management argued that workers do not naturally enjoy work. They need close supervision and control. So managers should break their tasks down. Then they be given training and tools, so that they can work as efficiently as possible on one set of tasks at the time. So workers should be paid at time based rate. As a result they are encouraged to work hard and maximise the organization's productivity.

Advantages of Taylor's theory:

Increases productivity

Lower production cost per unit

More control of staff

Easily fulfil the target

Timely finishing of the job

Supply possible to match market demand

Era of mass production.

Disadvantage of Taylor theory:

Autocratic management style, because decisions come only from top level.

Worker's opinions given no value.

Limited time frame.

Workers are being treated as machine.

Researcher criticisms of Taylor's motivation theory are that it only gives the workers stress and boredom, the same work all the time. Due to such autocratic systems the organization lays off the workers when its productivity goes high. Workers lay off create dissatisfaction among the existing employees and that has an impact on the future activities of the company.

According to Elton Mayo (1880-1949), "workers are not just concerned with money but could be better motivated by having their social needs met whilst at work". Mayo's thought was that managers should focus more on workers' interests, treating them as human beings who have useful opinions and realising that they enjoy interacting together. Mayo also said that workers are best motivated by:

Better communication

Greater manager involvement

Working in a group or team

Advantage of Mayo's theory:

Fulfils social requirements

Focus on worker's interest

Treating the worker as a part of organization

Taking worker's opinions

Group work

Friendly behaviour from mangers

Very close to the management level.

Disadvantage of Mayo's theory:

Less incentive to work

Some time - conflict in group work

Too much freedom at work

No responsibility at work.

Researcher criticism of Mayo's theory suggests that due to the closeness of the manager to the worker some lazy staff could try to take unfair benefits. He also said that work in groups may create conflict to the implementation of the personal agenda. Except for those criticisms, his theory most closely fits with the paternalistic style of management.

According to Abraham Maslow (1908-1970), "there are five levels of human needs which employees need to have fulfilled at work." All of the needs are structured into a hierarchy. His five level structure of motivation is:

Physical needs


Love / Belonging

Esteem and


A. Maslow's hierarchy:

[14.Source book, Motivation and Personality by Maslow.]

This hierarchy theory is that people are motivated to fulfil their basic needs before moving on to other needs. Maslow's theory is often displayed as a pyramid. The lowest levels of the pyramid are made up of the most basic needs of human being which are food, breathing, water, sex, sleep homeostasis, excretion. Once these needs are met people move to needs for safety and security. As they progress up the pyramid people move on to the love and social needs level. When they fulfil their needs on this level they then move on to the need for personal esteem and positive feelings. Maslow emphasised self-actualization, which is the process of achieving individual potential. [15]

Researcher opinion on this theory is that Maslow actually talked about the deficiency of people's needs being satisfied, which is unlimited. Most people work to fulfil their basic needs. In exchange they get money, and with this money they can meet their basic needs. As long people are able to earn more money or healthy money, they will automatically be able to meet their other needs. He talked about safety, love, esteem and self-actualization. Yes, all these can motivate people at work. But how many people have the same problem in these areas? There seem to be various exceptions that frequently occur. All people's needs are individual. So, if people were assured of standard pay and job security, depending on their performance, the other three they can manage themselves.

According to Herzberg (1923), there were certain factors in business which could directly induce the motivated employee to work harder. However, he was talking about hygiene factors which surround the job. As an example, a worker will only turn up to work if the business has provided a reasonable level of pay and safe working conditions, but these factors will not make him work harder. As Herzberg said, the hygiene factor is most important for encouragement to work harder. He believes that businesses should motivate employees by adopting a democratic approach to management. He also mentioned some methods of motivation which are: [16]

1. Job enlargement

2. Job enrichment and

3. Empowerment.

Discussion on the above theories: Motivation means any idea or emotions or anything positive that increases a person's working activities. It is one kind of stimulation that can automatically encourage the staff of a company to work more and more sincerely. This can increase the company's productivity. From the above theory and study it is observed that good motivation is an unavoidable requirement for any company to succeed its mission. There are many ways in which the organization management can motivate their employees, such as pay, incentives, bonus, insurance, medical allowance, holidays, house rent, transport facilities, well decorated environment, hygiene, stimulating projects (such as staff picnic).

As primary data, researcher has collected some primary data on HSBC bank plc from Henley-on-Thames branch (40-24-10) which was mentioned earlier. As staff motivations, HSBC bank follows some rules centrally, which are applicable to all the branches in the same country. HSBC's motivations include, pensionable salary, fixed time for direct debit every month, annual reviews of salary and changes to basic salary which are awarded at the company's sole discretion, discretionary bonus award every February, overtime facility for clerical staff who work more than 35 hours a week; management level staff get remuneration, public holiday allowance, private health insurance, cars and beneficial rate loans, leave allowance, time off for medical appointments, sick pay, maternity leave. After analysis of HSBC's motivation systems it is observed that the management emphasize Taylor's motivation theories. Because, in exchange for every national offer they are getting financial improvements.

2.4.4 Impact of unmotivated staff on organizations:

If the HRM do not motivate their staff by recognition of work done well, staff will become unmotivated. The impacts of unmotivated staff on the organization are as follows:

Less concentration on work, consequently less qualities of products

Unable to fulfil the business target

Tendency to work minimum

Lazy attitude

Product cost will be increased

Tendency to change jobs will increase

Organization will be treated as a non profit institution.

2.4.5 Termination Procedure in Organization:

Termination is another important function in Human Resource Management. Employers normally discharge the employee for misconduct, excess number of staff and poor performance. As example, HSBC bank plc have different rules for termination for misconduct, short notice, for any other reason, based on longevity of job. For five year service band 5, 6, 7 and 8 minimum notice time is one month, for five to twelve years service (same brand) required notice time is one week per completed year; for more than 12 years; it is 12 weeks. For band 4, companies will give 3 month notice, and for band 3 company will give up to 6 month notice.

2.5 Human capital in organization:

Human capital is the modern version of Human Recourse. It is the economic value an employee provides to an employer. The assessments of this value include skills, knowledge and experience. Organizations use these skills, knowledge and experience to increase their productivity - like money. Because, in order to a business, large amounts of money as capital. After the investment of such money they also need skills and knowledgeable staff for any business strategy to succeed. This strategy will increase the profit margin of the organization.

2.6 Conclusion:

This chapter has considered on Human Resource Management, Personnel Management, Organization and its different functions, the advantages and disadvantages of various organizational strategies, and the role of HRM in organization.

Personnel management has always played an important role in organization and its focus has changed slowly to Human Resource Management. In this chapter the similarities and difference of these two concepts have been considered. It is clear that personnel management forms the basis of Human Resource Management. HRM does not replace Personnel Management, it is a revised version, reflecting the changed the environment of the organization and its needs, and emphasizing the motivation of employees. As an example HSBC's recruitment, motivation and training procedure have been discussed.

Chapter-3 Methodologies:

The research design used is the descriptive approach. This type of research presents the nature and status of the situation.

A qualitative approach has been used for collecting the data. This process has been used to classify the data pertaining to the organization, and the role of Human Resource Management to motivate the employee. The data was summarised from a case study and also used to create a clear concept of modern HRM. During the time of research most of the data was collected from secondary sources which are online, different website, books, class note, journal etc. All sources are listed in the references list.

As primary data, the researcher has collected some information from HSBC bank, Henley-on-Thames branch on their HR policy regarding recruitment, training and motivation procedures. The interviewee was the branch manager who gave around 1hour 15 minutes time. She helped by providing different data and online sources which already been discussed in the particular topics referred to above.

The aim of this case study research was to show the change over time of HRM role and strategy in an organization which keep its staff motivated.

The research type was exploratory and case study based.

Chapter - 4 Discussions:

In this modern age good Human Resource Management in any kind of large organization is most important for success. The strategies for using people's knowledge in the present competitive business area are maintained by the HRM of an organization. In any kind of business people are the foremost assets. These assets need to be used properly and timely. For this reason most organizations create a mandatory HRM division which is responsible for managing people, training people, motivating them and rewarding them as motivation and sometimes terminating for misconduct. In the modern age this department is treated as a Human Capital division. This capital is not considered as finance, it is considered as a knowledge which is of use in business for innovation of technology, products and ideas to capture the market.

In any organization people use different resources such as raw materials, capital, and machineries. To properly handle these resources organizations need some talented people to work as human resources. To use these human resources in the organization, management needs sets of systems and procedures in a Human Management System. These systems should be designed in such a way that each individual's contribution is acknowledged, recognized, appreciated and motivated.

In this research report, earlier form of HRM and the modern version of HRM have been discussed. The strategy and role of HRM within an organization have also been discussed. Emphasis has been given to HRM activities especially motivation. During the research time it was noticed that in the nineteenth century this department worked only to establish the rights and a sets of rules for the worker. Day by day change in business and expansion of business was facing problems in the use of people. In support of modern business and global business, organizations stared to use a separate department for people in order to use them in a systemic way. In the research, it becomes clear that, for some specific purpose, all organizations introduced such a department department into their institution. The common aims ware as follows:


Training & development



Meeting needs of staff

Termination etc.

After any period of industrial change competition comes strongly into the business organization. Management starts to thinking of how to use people as resource for the business. They start to use people's intellectual knowledge for business success. At that time, the concepts were identified as Human Capital Management. Thus HRM's main role in the organization is to give full support to the top management towards achieving their goal. The prime duty of this department is to appoint the most capable people for each individual post, to express their knowledge to achieve the target. In support they should be provided with modern technology, and adequate training. For innovation they will need appropriate research materials and tools. For motivation necessary steps should be taken, such as promotion based on skills and performance, increased remuneration, bonuses, holiday packages, etc.

Chapter - 5 Conclusion and Recommendations

The strategy of Human Resource Management must be parallel with the needs of the organization. Such strategic planning can make an important contribution to the overall plan by confirming that the organizations have the right people with the required skills, and that they are managed productively. Successful organizations are realistic and very quick to change their direction if needed. HRM can contribute to the overall plan of the organization by becoming involved in the internal and external analysis and by concentrating the policy of Human Resource activities to achieve the organization's overall plan. An effective HRM can create a highly productive organization by selecting the right people placing them in the right place, providing them with adequate training and development, and, as recognition of good work, giving them motivation. Such motivation is the only way to increase the productivity of an organization within the limited recourses, particularly in the current economic climate. All human resources need to be linked with the strategy of the organization for their success.

Though HRM practice are different in different organizations, there are some common procedure which are followed in all HRM recruitment, training, motivation and retirement. During the time of this research some common findings were indicated which are as follows:

Understanding problems with general management and the nature of business

Less understanding between line management and HR management

Some time rigid HRM systems

Autocratic decision making to implement personal agendas.

General staff having no access to the performance data

Formal periodic performance review

In some organization's HR division are not amalgamated with the strategic team

There is no appropriate rule or procedure for people recruitment, training, compensation and motivation.

HR department are the most powerful in any kind of organization. For that reason people in this department expect the people in other department to be controlled by them and this start conflicts.

Too much domination over staff by this department

Though the above mentioned problems are not necessarily critical, create problems in conducting the organization's activities. HRMs role is to assist the organization to reach their goal. So regarding the above findings, some recommendations are given below:

General management and human resource management in organizations should work in parallel. Then both departments can work together to achieve the company mission.

Line mangers and HR managers should exchange their ideas to get the job done smoothly.

HRM should be flexible in the implement action of its rule and strategy as per circumstance. Rigid HRM can be replaced by sensitive leadership.

Participation in work by offering suggestion and joining in decision making is very important to employees. So HR strategy should be democratic in decision making. This means prioritising the route for staff opinions to be expressed and heard.

Human Resource software collects and reserves all staff performance data, where only bosses are allowed to access this. It should be available to people in general. Then individual could review their performance and change if necessary.

Instead of formal performance reviews there should be a flexible procedure. This would speed up the company's activities, and increase productivity.

HRM and the company's strategic management team should work together, because strategic management's decisions are implementing by the HR division.

Ideally some common policies should be followed. For instance a recruitment policy should be based on a written exam for mid or officer level post.

HRM should not be autocratic. If HR division are more flexible they will able to work better and the productivity of the company will be increased.

HR division monitoring at work should be done technically.

This research report seeks to establish the current state of HRM practise in organizations. This report took a strategic approach particularly in a case study base of research, where it was attempted to examine the relationship between the Human resource management and the strategy of an organization. The result of this research will enable us to better understand the way HRM in organizations has changed over a period of years, and how it keeps staff motivated for increased productivity, it has also made a recommendation for better management of people.

List of References:

Class note.

Human Resource Management Practice by Michael Armstrong, 2010.

Knowledge and innovation: Journal of the kmci volume one, no.three, April 15, 2001© 2001 knowledge management consortium international,inc.

Manager HSBC Bank plc, Henley on Thames branch as on 13th August'10 at 11.30am (75 minute)

Motivation and Personality by A. Maslow.

Mr. Raja Khan information received via e-mail, "[email protected]"

Mr. Sabir Hussain Jafri, Class note and information received via e-mail "[email protected]

Organizational behaviour by Andrzej A. Huczynski and David A. Buchanan, sixth edition, chp. 20.

Role of Motivation theories (people and organization) by John B. Miner- 1994. =7108 /16 .8 .10 /at 3.30pm 12.30am