Performance Management and Wages

The assignment discusses the importance of performance management in organizations by focusing on wage systems as a motivational tool. It argues that paying subordinates according to their task completion enhances productivity and profitability. The text provides references to academic books and journals that support these claims, exploring various aspects of human resource management, employee engagement, and the impact of performance appraisals on organizational success.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose and functions of human resource management applicable to workforce planning.1
P2. Strengths and weaknesses of various approaches of recruitment and selection..............2
P3 Benefits of HRM practices within an organisation for both the employer and employee 4
P4 Effectiveness of various HRM practices in terms of raising profit and productivity.......5
TASK 2............................................................................................................................................6
P5 Importance of employee relations and their influence on decision-making.....................6
P6 Identify the key elements of employment legislation and their impact upon decision-
making....................................................................................................................................7
P7 Illustration of HRM practices in work-related context.....................................................8
CONCLUSION..............................................................................................................................12
REFERENCES ...............................................................................................................................1

INTRODUCTION
Human resource management can be outlined as a process of managing the employees of
the organisation in an effective manner, it is considered as one of the most effective process that
is conducted by the management of companies because it helps in achieving their goals and
objectives in an effective manner and it included activities like recruitment, selection, training
and development of employees, improving the organisational structures and many more. It is
totally handled by the HR department of the company and the HR managers plays a major role in
this process (Hendry, 2012). The organisation that will be referred here is Vodafone which is a
UK based Telecommunication company headquartered in London. This report will discuss about
various functions and purpose associated with HRM. Along with this, various approaches of
recruitment and selection along with their strength and weaknesses will be discussed. There are
several benefits also that are associated with employer and employee and effectiveness of HRM
practices in increasing the profits of the organisation will also be discussed.
TASK 1
P1. Purpose and functions of human resource management applicable to workforce planning
HR management can be stated as process in which effective guidelines are being
formulated in order to gain various kinds of benefits like reducing the risk chances along with
conflicts. This is all done with the motive of having better performance from the employees
which can certainly help in attaining aims and objectives of firm in better manner. In modern
situation, every company wants to have competitive advantage within the marketplace and thus
for that, company needs to use various kind of tools and techniques which can attract the
customers and thus can satisfy them in better and effective manner (Cascio, 2018). Below
described are the major functions of human resource management: Planning: This can be stated as highly essential factor for the company as it helps in
managing the human resource along with its functions. Market is being analysed and thus
after that research is being conducted for identifying the supply and demand of human
resources in order to attain the tasks and activities of the company in better manner. Recruitment: In order top execute the various business process and its activities, there are
proper candidates who needs to be recruited for having certain skills and abilities so that
objectives can be achieved. Skills of staff members should be analysed and thus tasks and
activities should be allotted as per the needs and wants. After analysing up of current
1

status of working environment and demands which is the need of market, genuine and
effective data is being gathered by the managers as per the needs and wants and thus in
turn will improve the level of performance level of staff members. Training: Managers have the duty regarding the performance evaluation of staff
members and this in turn allows them to have the appropriate data and study research for
training and development (Armstrong and Taylor, 2014). This kind of training should be
provided for needed employees so that their skills can be enhanced and the situations
which bring capability gaps can be reduced and managers can conduct training sessions.
 Create and Maintain Healthy Relations of Employees: When success of is being
obtained by the business, that is just because of employees and their efforts. When the
managers create healthy and comfortable environment within the company, high
performance is being obtained. HR managers of Vodafone UK helps in taking the
measures for maintaining the effectiveness within the environment in order to attain the
goals and objectives in better and effective manner.
P2. Strengths and weaknesses of various approaches of recruitment and selection
Recruitment can be stated as a concept or procedure in which HR managers evaluate the
skills of candidates by following out various kind of steps and thus recruit the best one who has
met the criteria of needs. This type of procedure is basically known as essential factor for gaining
skilled workers as they will in turn provide benefits to the company. There are number of
methods which are being utilised in process of recruitment by the manager of Vodafone UK for
selecting the right candidates for the vacant posts and they are described below:
Internal Sources of Recruitment: In this type of approach, platform of opportunities are being
provided for the existing workers for filling up of vacant posts. This can be considered as an
effective method which is being utilised by the company before recruiting internally. This kind
of approach gives various kind of advantages like cost effective, less time and less money
consuming.
Strengths  This can be stated as less time
consuming for filling up the posts.
 This can be stated as cost efficient as it
mainly involves cost of training and
2

development for the existing staff
members (Brewster and Hegewisch,
2017).
 Genuine and actual report is being
gathered of the candidate which in turn
allows them to bring loyalty factors.
 Competition level is being enhanced
and provide assistance for boosting up
the morale level of staff members.
Weaknesses  This is complex in nature as the
managers faces various issues while
selecting the best suitable one.
 Chances arises of idea blocking and
new innovation.
 Cold war is being observed among the
employees and authorities which can
hamper the effectiveness of
organisational performance.
External Sources of Recruitment: In this approach, recruitment is being done by company from
the external sources for filling up the posts. This enables company to gain more skilled workers
who have some special abilities which can be utilised for the company along with the profit
ratios (Bratton and Gold, 2012).
Strengths  This can be stated as an essential
benefit for bringing out skills and talent
within the company.
 This will in turn help in increasing the
productivity of the staff members as
competition environment is being
created
3

Weaknesses  This method requires a lot of financial
resources that is not possible for every
kind of corporation.
 It takes a lot of time to happen because
it includes a long procedure in it.
 Previous performance could not be
measured as new personnel is not a
member of organisation, he is coming
from new environment.
P3 Benefits of HRM practices within an organisation for both the employer and employee
HRM practices are very common aspect for every association. There are a lot of HR
functions that a manpower head possess many corporation like recruitment and selection,
training and development, payment scheme, conflict management, creation of happy work
environment etc. Human resource manager has to deal with all aspects to increase ability of
employees along with high productivity of corporation (Jiang and et. al, 2012). There are some
benefits of theses functions but profits are different in context of employee and employer. These
elaboration are described below:
Practices Employer Employee
Recruitment & Selection This procedure is helpful in
filling vacant position of firm
with required set of talents.
This process is profitable for
staff member in finding a
prominent carrier growth and
opportunities.
Payment Plan This activities are able in
setting proper wages and
salaries plus incentives
according to performance.
This helps is making budget of
employment cost and
Worker can get rewards and
salaries as per their skill and
hard work as it creates more
motivation among them.
4

overcomes extra expenses.
Conflict Management With assistance of HR
functions seniors can remove
all clashes that arises in
workplace that ultimately
creates a happy environment in
corporation.
When a management team
pays attention on problems and
conflicts of workforce, it
creates trust and loyalty that
increases more proficiency and
profitability.
Training and Development By evaluating performance,
managers can identify weak
performance areas and
provides a skill enhancement
programme that hikes
productivity of firm.
This function improves
confidence level of manpower
by putting extra talents and
virtue (Alfes and et. al, 2013).
P4 Effectiveness of various HRM practices in terms of raising profit and
productivity
Human resource manager is require to provide duties to employees in according to their
skills and knowledge; so that they perform tasks properly. They should conduct internal and
external recruitment programs through which they provide adequate abilities to subordinates in
accordance to duties assigned to them. Hence, HRM practices benefit firm to enhance their
productivity and profitability (Alfes and et. al, 2013).
Employer of Vodafone, United Kingdom organise various activities through which they provide
skills to staff members, so that they function tasks effectively. If subordinates are dedicated
towards their work, then they will complete tasks and attain targets within deadlines. As a result,
firm productivity and profitability enhanced when superior uses these practices:
Training and development: Employer require to acknowledge potentialities of their
workforce, so that they provide capabilities in according to duties specified by them. They
should conduct appropriate sessions and seminars to make staff members carry out activities
effectively. Human resource of Vodafone provide skills to employees and enhancing their
communication so that they are able to attract and induce customers towards their offerings.
5

Conflict management: Human resource manager is require to have healthy relationship
with staff members; so that they discuss issues and problems faced by them. By acknowledging
reason which are affecting employees functionality and providing appropriate solutions for same.
So, in Vodafone superior take care that employees are motivated towards their duties and
function properly.
Therefore, employer is able to enhance firm productivity and profitability by applying
various human resource management practices in company (Renwick, Redman and Maguire,
2013). They distribute tasks among their employees and providing them abilities through which
they perform tasks in better manner.
TASK 2
P5 Importance of employee relations and their influence on decision-making
Employee relations are referred to the state of relationship existing between member of
an organisation. The human resource manager deliberately makes efforts so that these element of
human capital share an ideal relation. The company is responsible for developing a programme
that perceives every individual as equal and cater the with fair and unbiased treatment. This
feature will further carry a positive influence on the environment within the organisation. The
justification for the same is that employees are the only resource which cannot be imitated by
other organisation when developed ideally (Buller and McEvoy, 2012). Lately in business
organisation, managers have emphasized upon this feature as it leads to better outcomes through
employees. The human capital working for Vodafone are offered with right set of environment
so that they are able to perform competently.
A human resource manager have to consider numerous factors such as industry, location,
size and philosophies of business. The tool of communication comes in handy when looking to
formulate policies and take decisions which concerns employee for an organisation. A human
resource manager have to form rules, regulations and policies which determine the state of
behaviour of employees among themselves. However there is referred to a direct relations
between involvement of employees and decision making. It primarily helps in understanding
employees perspective relating to the decision making to which a business may not be aware
about. The in-depth information related to subject topic will direct to better analysis leading to
improved decision-making (Jiang and et. al, 2012). The manager should make sure that inputs
6

from employees are to be taken and considered as well. While creating policies and guidelines
employees should be consulted on the manner they wish to be treated within organisation. This is
another crucial aspect which enhances the bond between human resource department and
employees working for Vodafone. Along with consideration to employees, legislation should
also be considered so that they are catered with fair and honest treatment within organisation.
If a human resource manager possess a great bond with its employees then he will
definitely able to make better decision and vice versa. There can be numerous benefits which can
be availed when workforce is engaged in the decision making. The employees feel that their
opinions and values are being honoured by the company and remain committed to the business
for prolonged period. It has been identified that manager and supervisors who keeps its
subordinates unaware about the future actions tend to complain more about the quality of
decisions formulated (Pichler, 2012). The morale and motivation will be higher when it comes to
employees therefore reducing the chances of conflict within organisation. Eventually the
business will be less bothered about the conflicts arising with and focus more on the problems
pertaining in the business.
P6 Identify the key elements of employment legislation and their impact upon decision-making
A Human resource manager of organisation is require to formulate policies in
accordance to rules and regulations of government. So, by framing strategies through which they
are able to direct and make all staff members carry out tasks effectively. A business organisation
ensures that they have sufficient number of people through which goals and objectives set by
management are accomplished. Employer need to retain subordinates with the organisation by
providing them positive and healthy working environment. They should identify and select
opportunities which are beneficial for them (Daley, 2012).
As in context of Vodafone, human resource manager examine all components of
employee legislation which are made by regulatory bodies and its influence on business
activities. Thereby, they make decisions through which outcomes specified by executives are
attained. These are various laws which are framed by government are stated beneath: Health and safety act, 1974: Superiors require to understand that employees will
complete tasks properly and within specified time frame; if they get good working
conditions. So its management duty to take care that there are no defects in their
machines; to safeguard subordinates life from any danger. They should provide adequate
7

services to all staff members to sustain them with organisation by providing healthy
environment. National minimum wages act, 1999: Government had made this law through which they
protect workers from being exploited and that they get sufficient amount in return for
their efforts. Employer require to determine compensation of subordinates in according to
their skills and knowledge. They need to provide fair wages to all staff members, they are
able to eliminate chance of clashes and conflicts with administration. Equal Pay Act 1970: Employer require to determine compensation in accordance to
employee capabilities and duties assigned. They should not distinguish people on ground
of gender, caste and background. This law was established by regulatory bodies so that all
staff members get fair return for their efforts. Equality Law 2010: Government formulated this legislation so that all employees get
opportunity through which they are able to grow in their career. It is employer
responsibility to provide staff members tasks in according to their skills and knowledge.
They should not discriminate between male and female as both posses diverse abilities.
Human resource manager should compensate them in respect to their functionality and
providing them tasks which they complete within specified deadlines (Kehoe and Wright,
2013).
 RIDDOR 2013: Government had given responsibility to executive that they require to
inform them about all activities that have caused damage in business operations. By
providing report about injuries and diseases which have taken place in organisation
system.
These are various laws which are formulated by government; and are required that employer of
firm take into consideration while decision-making process. Superiors require that they provide
positive and healthy working conditions to all staff members. As if they are getting adequate
compensation which they require for their living . Hence, they will perform tasks effectively and
also retain with organisation for longer period of time.
P7 Illustration of HRM practices in work-related context
The process of recruitment and selection in an organisation is looked after by the human resource
department of the organisation. It is equally important for business organisation to select the
8

right candidate so that duties and obligation are fulfilled in an competent manner. The job
specification of a person determines the major tasks which are being catered by the applicant.
Job specification
Details of job
Job title: Assistant human resource manager
Associated Department: Human resource
Purpose of job
 Recruitment of suitable candidates
 To motivating the workforce to improve their performance
 Provide employee with opportunity to enhance their skills and capability.
Duties and responsibilities
 Performance management of employees and provide them with feedback.
 Manage payroll of the company.
 Ensure harmony in the work environment.
 Overlook plan and event organised related to employees.
Description of Curriculum Vitae of Applicant
Personal Information:
Name: ABC
Mobile no. XXXXXXXXXX
Email id: [e-mail]
Academic Qualification:
MBA
(Specialisation: Marketing)
University of London 87.80%
BBA University of London 77.00%
Higher education in
commerce
Cambridge school 70.00%
9

Secondary education Cambridge school 91.00%
Personal statement:
 Proficient Interpersonal skills.
 Capable of Pressure handling .
 Dedicated and committed to provided work Ability to motivate other to perform well.
Personal details:
Father name: XY
Mother name: DG
Date of birth: 26th September 1994
Achievement: Represented state in basketball tournament.
1st position in debate
Preparation for Interview: It is the duty provided to the human resource manager
working with Vodafone to develop a strategic plan which ensures that right candidate is been
offered a job with the organisation. The action plan includes development of a questionnaire
which will assist a human resource in garnering information related to various aspect, views and
lifestyles of individual (Cania, 2014). The evaluation will be carried out relying upon the
interaction with the applicant and required capabilities to perform the task. This step ends with
determining the suitability and formulating the decision.
Offering offer letter to selected applicant: if the human resource manager is satisfied
with the qualities which are being offered by applicant, he will be offered a job with the
company. There will be a discussion carried out on the basis of price, pay, policies and norms of
the company. The candidate is provided with time to formulate decision to the concerned
manager and communicate the same. The components of offer letter includes company
organisation along with essential details, a brief about the task to be performed and authority
which is to be reported. The leave and pay details will be mentioned as well along with terms
and conditions of the company.
10

Evaluation: it is extremely important to evaluation the recruitment and selection process
which is undertaken by an organisation. This is done so that major variations and shortcomings
are identified so that they can be addressed in proper manner. This feature also requires critical
analysis of the manager along with input from the concerned so that broad view of the same
could be generated.
CONCLUSION
From the above report, it can be concluded that human resource manager plays important
role in regulating functionality of system. They require to position candidates in according to
their skills and knowledge so that they are able to perform tasks effectively. Employer require to
conduct internal and external recruitment programs through which they provide capabilities to
employees in respect to their duties assigned. They should frame policies and strategies in
accordance to government laws; so that they provide healthy working environment to people.
Human resource manager is able to sustain subordinates by providing them wages in according
to tasks performed by them. As a result, they will be able to enhance their productivity and
profitability of firm by making employees complete activities within specified time frame.
11

REFERENCES
Books & Journals
Hendry, C., 2012. Human resource management. Routledge.
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in European human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Jiang, K. and et. al, 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Alfes, K. and et. al, 2013. The link between perceived human resource management practices,
engagement and employee behaviour: a moderated mediation model. The international
journal of human resource management. 24(2). pp.330-351.
Renwick, D. W., Redman, T. and Maguire, S., 2013. Green human resource management: A
review and research agenda. International Journal of Management Reviews. 15(1).
pp.1-14.
Buller, P. F. and McEvoy, G. M., 2012. Strategy, human resource management and performance:
Sharpening line of sight. Human resource management review. 22(1). pp.43-56.
Jiang, K. and et. al, 2012. Clarifying the construct of human resource systems: Relating human
resource management to employee performance. Human resource management review.
22(2). pp.73-85.
Pichler, S., 2012. The social context of performance appraisal and appraisal reactions: A meta‐
analysis. Human Resource Management. 51(5). pp.709-732.
Daley, D. M., 2012. Strategic human resources management. Public Personnel Management,
pp.120-125.

Kehoe, R. R. and Wright, P. M., 2013. The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management. 39(2). pp.366-
391.
Cania, L., 2014. The impact of strategic human resource management on organizational
performance. Economia. Seria Management. 17(2). pp.373-383.
2