HRM and achievement of organizational objectives

Human Resource Management functions have a variety of activities e.g. deciding staffing needs, recruiting and training the employees, ensuring they are high performers and also dealing with performance issues. Human Resource management is based on the well-organized utilization of employees in achieving two major objectives within an organization. The first objective is to effectively make use of the talents and abilities of the employees to get the operational objectives that are the key plan of the organization. Along with understanding the objectives of the organization, Human Resource management also look to make sure that the individual employee is satisfied with the working environment, the reward and benefits that they receives.

“Human Resource can be described as the organizational function accountable for obtaining and maintaining qualified employees. In today’s complex environment, fulfilling that mission is a major contributor to an organization success”.

Human Resource department of ScottishPower is responsible for Employee Relations, Recruitment, Staffing, Training and Development, Rewards, Pensions, Facilities, Fleet, Security and Health & Safety.

“Our people are at the heart of our success”. (Nick Horler, ScottishPower CEO)

“ScottishPower is all about people. In Human Resources, we are responsible for attracting, recruiting, developing, supporting and looking after the welfare of all of our 10,000 people”.

Sheila Duncan., (2009): ScottishPower Human Resource Director.

People are one of the main resources used by organization. ScottishPower recognises, that it is ‘powered by people’. HRM is disturbed by organising and looking after people in the work place. On a day by day basis this is include recruitment, training, selection and improvement and assessment of staff performance. An important element of Human Resource Management is workforce arrangement. This is putting the right people in the right place at the right time. It also involves recognizing the how many people needed to enable the business to drive at fully efficiency. These people require having the right capability to do the job. Development boosts the skills of the existing workforce. The energy industry is changing fast which means it is very important to recruit and train people with the right skill to carry out new jobs. This is mostly important in the increasing renewable energy industry.

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Three Basic Functions of Human Resource Management

1-Recruitment and Selection

“Having the right people, in the right place, at the right time, is critical to organizational performance. Recruitment is an important activity, not just for the Human Resource team but also for line managers who are increasingly involved in the selection process”.

CIPD. (2009): Recruitment and talent management. Online available at: http://www.cipd.co.uk/subjects/recruitmen/general/recruitmt.htm

Recruitment Process

The figure below provides a summary of the main stages in practice of recruitment and selection.

Vacancy

Job Description

Person Specification

Job Advertisement

Managing Application

Selecting candidate (short listing)

Interviews

Joining the organization

(Figure 1)

Vacancy

The business of replacing or recruiting someone is an opportunity to rethink what we want the content of the job to be and also need to invest time in gathering information about nature of the vacancy. It is very important to consider the skills, experience and personal values required to carry out the role effectively.

Job Description

Job descriptions are written statement that describe the responsibilities, duties, contribution and outcomes needed from a position and also required qualifications & experience of applicant for a particular job.

Person Specification

Person specification explains the requirements a job holder needs to be able to carry out the job effectively. These are most likely to include qualifications, training, experience and also personal qualities.

Job Advertisement

Before we write a job advertisement or complete job profile. Its also help us to write an advertisement that will attract candidates to our organization and best way to avoid wasting time on interviewing lot of people who don’t meet requirements.

Managing Application

Mostly two main resources in which applications are received e.g. CV or application form. It’s possible that these applications can be submitted on paper or electronically and also required that all applications should be treated confidentially.

Selecting candidate (short listing)

Selecting and short-listing candidates is a very important part of recruitment process. Even it is time consuming but it is also worth conducting it with care and consideration. We do not want to miss a brilliant candidate or someone waste our time who does not meet our requirements.

Interviews

Normally interview has been the main key of assessing the suitability of candidates for a job. Mostly organization use interview at the some stage in their selection process. Interviews are helpful for assessing such as personal characteristics as practical intelligence, communication and interpersonal skills.

Joining the organization

In this last stage of the recruitment process we assess all applications and finally select one candidate for position. Well planned induction permit new worker to become fully operational quickly and should be incorporated into recruitment process.

Recruitment into ScottishPower takes place at different levels. There are two of the mostly important of these are at the Modern Apprenticeship Programmes and Graduate Programme. Since the 1990s recruitment activities for bigger organizations frequently takes place online. Also specific vacancies may be advertised in the local or national newspapers, University appointment boards, online, job centres and recruitment fairs. The ScottishPower online website presents a means of detail about the organization and careers. It provides applicants to download job description and application forms for Apprenticeships Programmes and Graduate Programme. In both cases applicants have to meet minimum requirements of qualifications and experience.

ScottishPower Recruitment process

Scottish Power normally takes following steps in the selection process (Figure1)

(Figure 2)

2-Training and Development

“The right employee training, development and education, at the right time, provides huge pay-offs for the employer in better productivity, loyalty, knowledge, and contribution. Learn the move toward that will guarantee your training carry out a return on your investment” (Susan M & Heathfield, 2008).

Susan M. Heathfield., (2008): Human Resource, Your Investment in PDR. Online available at: http://humanresources.about.com/od/educationgeneral/a/training_invest.htm

ScottishPower provide first class training and development to all staff. ScottishPower also provide training to partners and contractors to make sure that all employees meet high quality and safety standards.

The organization wants to make sure that people who have the right skill and experience to performance work at their best now and in future. Scottish Power give them support they need to grow and get to their potential on a different range of training programmes and some of the programmes lead to recognised qualifications. In 2008, training budget was of £3.5 million. The organization runs own training and Development Centres at Glasgow and Merseyside. Here we give a positive learning environment for all learners and also offer to continue building excellent development experiences. So, no matter whatever your aims, you will be able to grow, develop and achieve your potential at ScottishPower.

ScottishPower working with young and disadvantaged people in local communities to links between education provider and employers and promote careers within the Energy sector. ScottishPower provide employees to train and develop their skills and experience in a variety ways like.

School Based Programmes

Community Based Programmes

Work Based Programmes

Staff Development Community

3-Administration Objectives

In organization, administration consists of the performance or management operations and the making or implementing of key decisions. Administration can be defined as the familiar process of organizing the people & resources economically thus to direct activities toward common goals and objectives. Administrators, engage in a common set of objectives to meet the organization goals. These common functions are;

Planning: Planning is usually considered to be one of the four major purposes of management, along with organizing, coordinating, leading and controlling. Simply planning is identifying where we want to go, why we want to go there, how we will get there. The planning functions involve establishing goals, objectives and arranging them in rational order. Administrators also connect in both short range and long range planning.

Organizing: Organizing involves identifying responsibilities and specifying organizational relationships. The function is to achieve coordinated effort among all the elements in the organization.

Staffing: staffing means filling job positions through the right people at the right time and at the right place. It involves shaping the staff needs, writing job descriptions, recruiting and screening people to fill the job positions.

Controlling: Controlling the organization is the function that appraises the quality in all areas and detects potential deviations from the organization plans. This makes sure high quality performance and satisfactory outcome even as maintaining an orderly and problem free environment.

Budgeting: Budgeting is a main administration department which produces employee’s salaries, sickness, taxation, leave etc.

P1.2- Justify how the objectives of these were achieved by effective management of human resource.

Anyone who is known with the main organizations in their area probably has experimental firsthand (how considerably the business environment has changed in recent years in modern world). These changes have had a major impact on organizational efforts to be successful. In almost every organizations effort has been made to more clearly identify and then focal point on factors that impact their success. One aspect that look like to be getting more attention than other, support the people who work for organizations. What organizations are recognized for is that their probability of sustained success is most dependent on learning to get the maximum out of their employees. Such the recognition has had a major impact on the practice of human resources management. Business forecasters predict that the role of employees, human resource management, managers and personnel are expected to see further changes in the decades ahead. Hence, individuals entering the business environment today need both as an understanding of the importance of the human resources and effective human resource management to organizational success. As we are in the twenty first century, it’s becoming completely clear that the effective management of organization’s human resources is a key source of competitive advantage and May even is the only most important determinant of an organization performance over the long term.

The effective management of HR has resulted in achieving some objectives & goals of the organization resulting in individual improvement and overall organizational progress. The justifications of a few of them are given below:

The effective management of human resources resulted in development of health and safety of the employees and work environment.

Better communications ensuing knowledge transfer and quick performance of different activities within the organization and also outside the organization. This also makes sure that the employees are well informed and their voices are better heard and taken action.

Employee supports the programs that helped to get better knowledge and skill sets of the employees.

P1.3- Refer to at least two HRM models as Contingency Model, Harvard Model, Ten C Model, Seven Step Model, Business Process Model etc–.

Human Resource Management models can be classified as any Harvard type models or matching models. A range of models which have been put forward can be differentiated in provisions of a number of characteristics, mainly the degree to which we take a hard or soft approach. In today economy, where human capital resolves the growth and success of an organization, both hard and soft approach to HRM. Storey (1989) has distinguished hard and soft models of HRM, typified by the Michigan and Harvard models respectively.

Hard and Soft Approach to HRM

HRM practice is theorised as having departed alongside the two lines-Hard (The Michigan School) and Soft (Harvard Model). However it is right to say that the difference between the two has weakened in veracity as modern HR practice typically deploys fundamentals of both hard and soft models. In simple terms, Hard HRM prioritises rational profit maximising and views the employee as a ‘headcount resource’.

Legge, K., (2005): Human Resource Management. p223. Macmillan Press

The Hard approach to HRM put emphasis on an employee as a “commodity” or a “resource” being as much a resource as land, capital etc. Only to be treated better increase of a short supply or increase of playing a central role in achieving the organization goals. Methods of implementation can vary depending on a calculative and quantitative approach in a rational mode. Hence it a way of regarding people as human capital whose development more returns.

“The Soft HRM spaces a higher value on the human resource as a valued asset, and foregrounds their proactive capability, commitment and motivation based on a unitarist view of mutual obligations and mutuality”.

Barney, G., (1991): Firm Resources and Sustained Competitive Advantage. Journal of Management, 18:07, 99-120.

The Soft approach to HRM sometime known as development, stresses human side, skill development, collaboration and place for union in this model. Also employee being “resourceful” and a most important source of competitive advantage by use of human relations, which involves too attractive performance by using communication, motivation and leadership to boost commitment and loyalty. The soft model regards as improved satisfaction in the management.

Task 2: Examine HR Planning and developments in the Organization.

P2.1- Select at least three HR planning and developments methods.

To develop the base organization with 16142 employees the planning and development methods are discussed below. The planning and development methods carried out to boost the performance of the individual and whole organization. The planning and development activities includes provision of

To make sure better team work and management

Offer consultancy services

Understanding the work procedures, culture and work norms etc

Human Resources planning and development is a structure for the growth of human capital within this organization. Human Resources development (HRD) is a combination of training and education which make sure that continue growth and improvement of both the individuals and whole organization. ScottishPower is an organization that capacities of individuals depended on their access to education. Human Resources Development (HRD) is the means that drives the process between learning and training. Human Resources Development (HRD) is not a defined object, but a series of organized procedure with the specific learning objectives. Human Resources Development (HRD) is the arrangement that allows for individuals development, potentially satisfying the organizational objectives and goals. The development will benefit both, individuals and the organization. Human Resources Development (HRD) views staffs as an asset to the organization whose value will be improved by development, its primary focus on staff development and growth. It highlight developing individual potential skills, Human Resources Development (HRD) can be in small room group training, vocational course or coaching and mentoring by senior member of staff with the aim for a desired outcome that will build up the individuals performance. A successful Human Resources Development (HRD) plan will prepare the individual to carry out a higher level of work, the organized learning over a given a specific period of time to give the possibility of performance change.

Human Resources Development (HRD) is the structure that focuses on the organizations competencies at the primary stage, training and then developing the employee through education to satisfy the organization long term needs, goals and objectives. This (HRD) can be defined simply as developing the most important department of any organization its human resource by training, upgrading the skills and attitudes of employees at any level in order to maximize the success of the business. The three main HR planning and development methods include.

Workforce Planning method

Workforce planning is important activities in an organization. It begins with analysis of the strategic position of the organization. The results of this analysis then provide for a forecast of the required demand for employees by the organization and how this is expected to be supplied. The last stage involves the establishment and implementation of a human resources plan which try to deliver the right number of people, with the right skills, in the right place and at the right time for the organization.

Workforce Demand Forecasting

Putting a good quality Human Resources plans together, needs an organization to create a reasonably accurate forecast of workforce size. Main factors to think in this forecast are:

Demand for existing & new products

Business disposals & product closures

Introduction of new technology e.g. new production equipments

Cost reduction programmes

Changes to the organisational structure

Business achievement, strategic partnerships, joint ventures

Workforce Supply Forecasting

The first point for estimating supply forecasting is the existing workforce of an organization should take account of:

Scheduled changes to the composition of the existing workforce e.g. promotions, transfer and turnover.

Regular loss of workforce e.g. through employment and retirement.

Potential exceptional factors e.g. actions of competitors that make problems of employee’s retention

By evaluating the forecast workforce supply and demand, it is also possible to bring together a forecast of net workforce size. This then wants to be compared with the strategic requirements for the organization. The effect is the workforce gap which is a forecast of too few or too many employees.

Human Resource Management Policies to Close the Workforce Gap

The main HRM activities to manage the workforce gap include

Recruitment planning

Training planning

Redundancy planning

Staff Retention Planning

2-Performance Review Planning and Development (PRPD)

The performance review planning and development (PRPD) affect for general member of staff in the organization. This aims to provide positive feedback on employing the 16142 staff, support them in work load planning and improve their professional improvement activities and also help them to carry out tasks in accord with the organization policies & goals. Organization performance review planning and development (PRPD) procedure follows best practices, although several of these best practices can be implemented even with manual systems, various become much easier to achieve with automated solutions, include:

Iterative Reviewing Process

As computerization process makes it much easier to route forms, individuals can participate more constantly and dependably in the iterative review process.

Cascading Goals

Goals are rarely an individual’s responsibility. The majority goals are achieved because of the efforts of many people across this organization. Performance Management professionals agree that supporting & cascading goals, and also shared accountability that is vital to an organization success. Creative companywide computerized application seriously simplifies the task of establishing shared goals and also make sure that employees are working toward the organization overall objectives.

Pay For Performance Culture

A good quality automated arrangement includes a Compensation Planning element giving directors easy access to all the information they required to reward individuals for real performance. It is right to use to 360 degree feedback, goal achievement metrics, review performance & data notes taken throughout the year to make sure the managers make consistent, fair and quantifiable decisions. Thus, employers can decrease the cost of overcompensating underperformers and can boost employee engagement across the organization. The supervisors take the responsibility of carrying out the performance analysis and rating of the employee’s end of each year.

3-Performance Management Program (PMP)

The performance management of employees has been modified to help of new policies which are;

Performance review & development plan

Employees Study Support plan

Performance Reward & Recognition plan

All these plans are followed by the organization to improve the performance. The goal of the new revised plans and forms is to develop and implement a user friendly comprehensive, reliable performance management system that is followed by the organization. The further planning and development methods is built-up resource planning.

P2.2- Critically evaluates their effectiveness to meet organizational objectives.

Workforce Plan

Effective planning for staff requirements

Appropriate time delivery of organizational objectives

Make sure integration with strategic and operational planning procedures

Support personal goals with organization goals to ensure better success in work

Performance Review Planning and Development (PRPD)

Appropriate time feedback to improve performance

Effective planning of work load to provide the needs of the organization

Effective and efficient training via different procedures

Performance Management Program (PMP)

Develop and implement friendly environment

Develop individual and organizational capability accordance to the strategic plans, organizational goals.

Task 3: Analyze ways in which performance of HR may be enhanced in the organization.

P3.1- Review how HR performance in the identified Organization is currently indicated and monitored.

(Critically review how HR performance in an identified organization is currently indicated and monitored)

P3.2- Try to suggest ways to improve this.

(Suggest ways to improve this)