Comment in the meeting: "A comment was made at the senior management meeting the other day that our company is suffering in the marketplace, as we take a personal management approach rather than a HRM approach." Manager's query: I am not sure what the difference is. Could you fill me in on the background to what personal management is, and how HRM both compares with and differs from personal management."
This report has been prepared in answer the comment or we can say it's in response to the query that has been raised on the performance of our company in the market place by the senior management at Tesco. To explain the issue that our company is facing and the manager's query, we can the split the comments in to the following sub divisions,
What is personal management
What is Human Resource Management (HRM)?
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How HRM Compares with and differs from personal management?
Why our Company feels that we should take a HRM approach instead of a personal management approach?
1. 1 What is Personnel management?
Personnel management is an administrative function of an organization. It is considered to be based on cautious management of the staff members, maintaining the relationships among the people in the company. Personnel management targets at attaining utmost competence and to give in utmost benefits to the organization.
Personnel management manages functions related to employees, staff, workers as follows:
Orientation or induction of newly joined employees like training, Identity card and other documents.
Obtaining job responsibilities, performance measures, KPI (Key performance indicators)
Environmental and Occupational Safety and Health compliance and management
Managing Attendance, Time office Payroll, Leave and other welfare like Bonus, Incentives, Insurance and medical benefits
Annual or periodic appraisal, review of performance by supervisors.
Staffing or recruiting new employees as per requirements
Managing pay increments, promotions, Resignation, termination of employment
1. 1 What is HRM (Human Resource Management)?
HRM is a development function of an organization whose primary objective apart from the personnel management and administration is to increase the efficiency and performance of the employees, staff and workers by identifying the job requirements in terms of ASK (Attitude, Skill and Knowledge) and mapping and matching the employees to the requirements.
HRM is considered to be more proactive and considered to be resource centered. It involves the development and implementation of strategy. The main functions of HRM are,
Developing job profiles with specific definition on Attitude skill and knowledge
Identifying and recruiting employee.
Developing and implementing training programs
A transparent and trusted appraisal system
Career plan growth within the company
Management of compensation
HR planning etc.
Personnel Management Human Resource Management
(Image source: http://www.aeel.gov.sk.ca/evergreen/lifeworkstudies/images/medicinewheel.jpg)
(Image source: http://www.quidgest.com/images/q_HR.jpg)
1.3 How HRM Compares with and differs from personnel management?
As we have discussed in the earlier segment that the Personnel management is more of administrative in nature (independent) whereas HRM considers employees as "assets" or "resource" of the company. As per HRM employees should be selected, developed and maintained towards achieving the maximum potentiality available in a "resource". Stephen and Keith in their works mention Storey J's (1992 twenty seven points of difference between Personnel management and HRM, of which some key differences are:
27 points of difference
Speed of ecision
Personnel/ IR specialists
Separate, marginal task
Reach temporary truces
As per our understanding and learning, some of the differences between Personnel Management (PM) and Human Resources Management (HRM) have been listed below:
Always on Time
Marked to Standard
Personnel Management is managing of people who are employed whereas Human resource management is management of employee's skills, knowledge competencies, talent, creativity etc.
Human resource is considered to be the management function when compared to personnel management, which is an independent/administrative function.
Personnel management considers keeping and maintaining information's safely and in human resource management, it is supposed to be communicated.
As per personnel management employee is supposed to be utilized for company's benefits but in human resource management, not only the company but also the employee, their family should be given the benefits. Employees are cost centers in PM whereas profit centers in HRM.
1.4 Why Tesco Senior management feels that we should take a HRM approach instead of a personal management approach in our company?
The senior management comment: "â€¦that our company is suffering in the marketplace, as we take a personal management approach rather than a HRM approach."
As per this comment we do come a conclusion that the senior management understands that there is a serious failure situation at the new store in the marketplace. However from their comments we do not have information of what exactly is going wrong in the store, whether the issue is pertaining to employee management or customer management.
The comment doesn't highlight any employee related problems like turnover, customer handling, job satisfaction, etc or customer related problems like customer satisfaction, kind of service provided etc. Hence based on our assumption, we will take the issue of employee management which is hampering the vision of our company at the new store. The company's observation is that the employee section is either failing or not up to the mark because of the current approach which is more towards a "personnel management". The senior management might be of the opinion that since this a new store and also challenging situation lots of development work need to be done instead of plain old "administration".
Task 2. Recruitment, selection and retention (L01)
TESCO recruits and selects staff members on regular basis for there food and non-food store. By developing as victorious recruitment, selection and retention methods and theory, companies can achieve a low resignation speed. By appropriate hiring and selection process, our company can save valuable amount of time as well as cash. Any job position becomes available in a company:
Once new stores are open at new location, job opening become available.
If the existing employees leave the job and company, the job opening becomes available. They can be resigning, retiring or get promotions to different positions.
Depending on the changes in technology and process, new job openings can be created.
2.1.1 Recruitment and selection procedure
TESCO is considered to the biggest private sector employer in United Kingdom. There are lot of people who are part of these stores and they are Checkout staffs, Stock handlers, Supervisors and specialist like bakers, pharmacist etc.
The Recruitment process in TESCO can be summarized as follows:
The first step for recruitment and selection is job advertisement regarding the vacancies available at the store.
The best option initially opted by any company to fill the vacancies is by checking on the list of the current employees at different stores and there past work experience at store.
If the required criteria is not met by the existing employee at other stores then job posting will be done on the official site of Tesco or other vacancy boards.
Applications will be made available on the site as well as the applicant can walk in the store with their curriculum vitae.
Based on the education and previous job experiences, initially the candidates will be filtered.
The filtered applicants will go through the interview round with the management and HR before being selected for the specific post.
Final selection will be done by our line manager to make sure suitable candidate is selected for our new store.
The selected employee now will be informed about the pay scale and the work timings at the store and company handbook will be offered to the selected employee
2.1.2 Example recruitment questions
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What do you know about this company?
What are the steps for success in a company?
If job is offered to you, how long do you planning to stay in this role?
What do you know about our products?
Tell me something about yourself?
Do you like to work alone or be part of a team?
Why do you want to join this store?
What is the reason for you to quit the previous job?
What makes you the best candidate for this job?
Tell me some of your strength and weakness?
2.1.3 Recruitment and Selection Procedures
The employment process has two stages:
Recruitment: The process of finding the correct candidates for employment and encouraging them to apply for jobs or vacancies in the company. Recruitment enables the company to select the best applicant from the talent group of applicants; this can again be achieved by attracting as many as possible applicants to apply in the company. Recruitment process involves seven steps:
Identifying the vacancy
Preparing job description and person specification
The vacancy advertisement
Short-listing the candidates
Conducting interview and decision making
Selection: This process involves lot of phases through which an applicant goes through before selection. This is a critical step as in this process the right applicants is selected as per the job opening available in the company. This can be achieved by various interviews and online tests. Selection process can end in a contract signing for the required service between the company and the selected candidate.
In most of the cases, employee dissatisfaction leads to resignation, hence as far as employee satisfaction is concerned, Manager needs to make sure that their employee's issues and complaints are addressed. Being manager of a new store, the responsibility is to achieve not only customer satisfaction but also as employee's satisfaction.
The employee retention can be achieved with the quality of the supervision an employee receives from the Manager. Staffs are said to leave their managers and supervisors more frequently when compared to there company or jobs. It is well said that an Employee Retention is created by Effective Managers. Employees tend to leave managers who can't:
Clarify their expectation
Assist in developing their career
Give regular performance based feedback
Retention involves 5 main things:
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2.2.1 What provokes employee/staff member to leave the job?
In order to understand appropriate measures of Staff Retention, we need to first understand the reason provoking them to resign and they are as follows:
New job offered: Job offered by some other company which meets the employee's requirement.
Expecting Higher Salaries: One of the main areas where the employee looks out for changes is the Pay. A business can bloom when the employees in that business can request a hike in salary and feel comfortable about it.
Availability of Benefits programs: Most of the employees want the organization to take care of there health insurance, offs, holidays as well as retirement.
Over-management: Micro-managing can certainly reduce one if the issue in employee retention as sometime employees feel over management is prevalent in business.
Human Resources department response to employees: This means that the Human resource department needs to be more attentive to the requirements and issues of the employees.
Fair treatment: Every employee wants fair treatment thus its Manager's responsibility to make that each employee is treated equivalently.
Communication: This is one of the major complaints of every employee. Everyone looks out of face to face conversation and communication with there Managers and Management.
Stress from overwork and work life imbalance: Many times employee feel that they are over loaded with work and they have less time to complete there tasks. This can be avoided by implementing improvement activities in co-ordination with the employees.
Work environment: Every employee wants to work in an environment which is not only clean but also well organized. This helps them in performing well.
Job satisfaction: Employees usually leave jobs if they don't have job satisfaction. This can be in terms of job role, profile, salary, responsibility etc.
2.2.2 How to amplify Staff Retention?
Following are some of the suggestion to increase Staff retention:
Should recruit people who have talent, ability and ready to work in any position, even if the company's doesn't have the appropriate position as per their capability.
Competitive, attractive and packages with different benefits like life insurance, permanent or temporary disability insurance and flexible hours.
Regular feedback on staff's performance feedback and praising their efforts can also reduce employee turnover.
Make work more enjoyable, Celebration of events and traditions of business.
Behaviour-based testing and proficiency viewing; it means selection of right applicant first. Employees should be able to balance their personal and professional life.
Store should be adequately staffed so that employees don't need to do overtime against their will.
By providing more opportunity for growth in career.
Employee retention strategy can be classified into three levels: Low, medium and high and there differences are given in the below flow chart:
2.3 Legal and Ethical Issues in Recruitment
To meet legal requirement company needs to make sure that Job postings, inspecting references, interview questionnaire, and job offers all need to be done in a way that meets legal requirements. By providing the company's handbook, we can keep an employee updated on the legal and ethical requirement of the company. While recruitment and selection procedure is taking place, the recruiter should remember that ethics in recruitment is very important as it can affect the reputation of the company in the marketplace. They should avoid:
Using exploding job offers.
Tying signing bonus
High-pressure interview strategy.
As per BC Human Rights Code (Discrimination in employment advertisements), a job should not be published if it gives preference to
Place of origin
Belief involving politics
Sexual point of reference
In recruitment process, questions should not be asked intentionally or unintentionally based on above mentioned preference.
3. Disciplinary Procedures
Disciplinary procedure can be considered the appropriate method for letting the employee understand that they are doing wrong. Whenever any employee breaks policies of the company or doesn't work to their expectation, disciplinary procedures is administered. This is to make sure the situation is handled appropriately. Usually organization gives out handbook to employees to make sure that they are aware of the rules applicable in the company/store. There are two ways of handling these situations Informal and formal.
An informal step involves talking to the staff personally and internally but a formal step involves other departments like HRM. There are different steps in application of discipline
Warning, it can be verbal or written
Suspension/ Disciplinary transfer
(Image source: http://www.rhdcc-hrsdc.gc.ca/eng/labour/publications/employment_standards/images/discipline_misconduct.jpg)
Below mentioned the issues that have been observed recently in the Store will give a clear understanding about disciplinary procedure:
3.2 Paul Wilkinson - Coming late and leaving early
Issue: Paul Wilkinson a 44 year old supervisor has recently been coming to work late and leaving early. You have already spoken to him about this, but unfortunately the situation hasn't improved.
In this case,
Paul, being a supervisor is expected to be extremely punctual as they act as role models for the new staff.
In the current situation, I'll need to have a one-on-one session with Paul to get a clear picture of the situation and his recent behaviour.
This is a repeated offence from Paul's side, initially he was given verbal warning but as the situation has not improved, he will be given a written warning.
Alternate method that can be applied will be putting Paul under Performance Improvement Plan (PIP) for a certain period of time and observe him periodically.
We can't transfer him to another store as it will affect our other store's performance and reputation as well.
Paul will be once again warned on his recent behaviour for the last time as this could lead in his demotion or transfer from the current job.
If Paul doesn't show any improvement, retaining him in the current store can affect a lot; hence offer him some other shift in which he can work with commitment without compromising on the time.
Other information needed to understand Paul's activity is whether he is having any personal issue pertaining to timing of the store which is making him compromise with the work timing.
3.3 Sheena Johnson - Stealing in the Store
Issue: Sheena Johnson is 28 and a machine operator in the department. You have been informed that security found her stealing some finished and part-finished items from the department. She has been told to report to you at 9 a.m. tomorrow morning.
In this case;
In any industry or organization stealing is against the ethics of the store and legal action can be taken depending on the seriousness of the offence.
In Sheena's case, legal action can be taken to handle the issue
Being the manager of the store, I also need to see the past service record of Sheena at this store.
If she has been with the company for long period and this is the first time she has committed this mistake then give her warning and put her on Performance Improvement Plan (PIP).
But if she is a new employee, then retaining this employee will not only affect the performance as well as the reputation of our company.
Other information needed to understand Sheena's activity is since when she has started stealing and what could be the possible reason behind it.
We know that the management of personnel and human resource has been changing periodically. Stability in business is important and human resource management and personnel management has an important role to play. When developing principles and policies the main point that needs to be considered human resources, managers for different departments and their employees. These considerations can escort to thriving recruitment, selection and retention. (Kimberly digit)
In this assignment, based on Tesco senior management's comment, we not only discussed how personnel management differs from human resource management. How through appropriate recruitment and selection process Tesco has been of selecting right candidate and we have understood the importance of retention of the employee.