Impact of HRM on Employee Engagement

This assignment delves into the relationship between human resource management (HRM) and employee engagement. It examines how various HRM practices, such as performance management, talent development, and compensation, can impact employee motivation, commitment, and job satisfaction. The assignment also considers the theoretical frameworks underpinning this relationship and draws upon empirical research to support its arguments.

Human Resource Management

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................1
1.1 Difference between PM and HR......................................................................................1
1.2 Functions of Human Resource Management according to the organization...................2
1.3 Roles and responsibilities of line manager in Human Resource Management................3
1.4 Impact of legal and regulatory Frame work on human Resource Management..............3
TASK 2......................................................................................................................................4
2.1 Reasons for HR Planning.................................................................................................4
2.2 Stages Involved in Human Resource Requirement..........................................................4
2.3 Comparing Recruitment and Selection Process...............................................................5
2.4 Effectiveness of Recruitment and Selection....................................................................6
TASK 3......................................................................................................................................6
3.1 Relationship between Motivational Theory and Reward.................................................6
3.2 Job Evaluation Process.....................................................................................................7
3.3 Effectiveness of Reward System......................................................................................8
3.4 Monitoring Employee Performance.................................................................................8
TASK 4......................................................................................................................................9
4.1 Reasons for Employee Cessation.....................................................................................9
4.2 Employee Exit Procedure...............................................................................................10
4.3 Impact of Regulatory and Legal Framework.................................................................11
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12

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INTRODUCTION
Human resource is a key part of organisation that helps the company in reaching
towards the gaol in effectual manner. However, it is required to manage the manpower so that
fruitful results can be attained through it. In this context, present report is prepared by taking
Posh Nosh as an organisation. It is a fast food business with ten outlets in London. Main
motive to this report is to gain idea of distinction between HRM and Personnel Management,
hiring process, use of motivational tools and termination of employees.
TASK 1
1.1 Difference between PM and HR
From the above discussion, it can be determined that Posh and Nosh organization
never had a formal Human Resources function and all issues were handled by CEO itself. As
Personnel Management Human Resource Management
This particular management within any
organization deals with a recruitment &
selection process as well as various laws of
employment.
HRM focuses on entire development phase of
workers by providing them appropriate
training (Simons, 2011). In addition to this,
the whole team of HR works on several
policies for motivation of workers such as
performance appraisal
This type of management mainly focuses on
their works get to be done. They consider
their workers as an machine and follow strict
laws and rules for them.
Within any business organization, HRM is
considered as a most effective and modern
approach which keeps their workers always
satisfied.
Under personnel management traditional
approach is followed where work distributed
individually among all workers. They
usually take all decisions very slowly.
Under HRM all employees work as a a team
and try to get all their work done on given
deadlines. Here, whole process of decision
making is very fast.
The whole pay of staff members depends on
grade basis
In order to serve quality services to customers
all worker’s performance is monitored on
regular basis.

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an HR manager it is being suggested to CEO that by applying several HRM functions within
Posh Nosh’s their future growth can be enhanced (Paillé and et.al., 2014). With the help of
this they can easily manage their business operation chain and keep their workers motivated.
They can also provide appropriate training to their workers and maintain their work quality. It
is the most effective ways to keep their customer satisfied as quality services is being
provided to them.
1.2 Functions of Human Resource Management according to the organization
Posh Nosh serving its business operation in entire London area by providing up-market fast
food business. They also offers various take away and catering services to their customers
and always try to provide them quality services. Just to maintain their entire business
expansion with quality services there are various HR function they need to implement such
as:
Planning: It is highly important to make necessary plans for right business expansion
and their working. Appropriate planning need to be done just to provide proper catering and
food services at all ten outlet. For this, various activities can be planned for proper strategies,
policies and procedures, and their marketing. It helps them in achieving their set goals and
objectives and enhancing their market growth.
Organizing: As per set planning, management team of company requires assigning
different duties to workers as per their capabilities.
Staffing: Whole HR team works towards the recruitment of experienced staff
members. For this, HR manager need to decide their manpower requirement and selects the
right candidates. After getting selected their induction process takes place where they gets
proper work training.
Controlling: Management team needs to look after their worker’s progress as per
their set standard and performance (Paillé and et.al. 2014). In case of not finding it sufficient
they can take several corrective measures and try to come with best quality services. With the
help of this only they can get their work timely done and achieve their set targets.
Training and Development: Just to enhance their workers skills appropriate training
can be provided to them so that they can increase their knowledge.
Working condition: Posh and Nosh is serving its business operations in entire
London and for the same, they requires providing best working conditions to their workers.
(Sun and et. al., 2007) It helps in providing healthy and sound environment and keep all their
places hygienic such as cafeteria etc. This keeps their whole human resource motivated and

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reduce their stress. With the help of this, they are able to achieve their target as well as
organizational objectives.
1.3 Roles and responsibilities of line manager in Human Resource Management
Considering the current case of Posh Nosh firm it is being determined that they never
had any formal HR functions within their firm and all HR issues handled by CEO itself. By
incorporate HRM into their business operations there are several roles and responsibilities
which needs to be fulfilled by line manager of firm. (Martin, 2010) One of the most important
role of line manager is just to develop healthy environment by keeping positive work
relations with all their junior staff. It is called a people management through which they can
effectively assign different duties to their staff members. There might be a situation where
conflicts may occur at the time of sharing ideas within working team. Line manager is
responsible to resolve all such conflicts and maintain disciplinary behavior. It is the most
suitable way through which every employee work in disciplinary manner.
By monitoring all the above situations and keeping workers performance under
consideration he can make their performance note. It helps him in giving regular feedback’s
to workers about their performance so that they can make improvement and provide quality
services to customers. On the basis of all above situation and performance line manager
completes all formalities of annual appraisal of each workers with their higher authorities.
1.4 Impact of legal and regulatory Frame work on human Resource Management
With the help of incorporating HR functions within their business operations Posh
and Nosh company can easily comply with all legal and regulatory framework such as:
Discrimination Act: It is becoming highly important these days to treat all workers equally.
With the help of this particular act individuals can be protected from any type of
discrimination in relation with their nationality, age, sex etc.
Employment Act: This act usually follows by both employee and employers and provides
then several benefits (Martin, 2010). It basically helps in keeping several functions inline
such as working hours, child labor, employment dismissal etc. By following all these legal
acts workers should have to follow a strict official working time with their service dismissal
in case of not performing.
National Minimum Wage Act: According to this act, all workers gets their pay on the basis
of particular duty they have performed for specific hours. Here, employers need to pay them
timely and they do not make any delay with any type of changes within this. Further, this act

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is highly positive and beneficial for all the workers as they get their wages timely according
to their working.
By implementing all legal practices within their services now Posh and Nosh can keep their
workers happy and satisfied. It also raise their motivation level and they can work hard
according to positive work environment they gets (Sun and et. al., 2007).
TASK 2
2.1 Reasons for HR Planning
HR planning is one the key aspects of business that aids in forecasting the needs of
manpower in near future. With the help of it, company can able to streamline its process of
training, development, recruitment, selection, retirement and cessation of employees. Posh
Nosh must focus on this aspect in order to assess the future demand and accordingly fill the
vacant position. With this, every vacant position can be filled in minimal which certainly
supports in achieving the business goals (Bloom and Van Reenen, 2011). Further, it aids in
dividing the work load among existing employees from which overall productivity and
efficiency of employees get improved. Additionally. HR planning supports in giving proper
training and development session through which business work can be done simultaneously
without hampering the work flow. Through this, optimum utilisation of resources can be done
that aids in attaining the business goals. Further, every new employee cannot work with
efficiency on the profile for which he/she has been selected. Hence, HR planning aids in
arranging training in a manner from which new employees can cope up easily.
Main benefit of this aspect to Posh Nosh is that it helps in assessing the needs of
employees as well which can effectively be fulfilled. Also, employees can be motivated by
arranging necessary resources at the most crucial time (Flamholtz, 2012). Further, cited
organisation can able to recruit and select employees on the basis of market condition. In
case, if there will be shortage of employees in near future, then HR planning advise that
employees must be hired first in order to tackle the issue of labour shortage. Hence, HR
planning will help Posh Nosh in boosting its competency and performance by engaging
manpower in most effectual manner.
2.2 Stages Involved in Human Resource Requirement
Assessing human resource requirement is a crucial part of the company that aids in
filling the vacant position in appropriate manner. However, cited organisation need to follow
following stages for assessing human resource requirement:

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 Developing goals and Objectives: First, Posh Nosh must determine and review its
goals and objectives. Based on it, mapping need to be done to assess required
manpower with that of actual manpower. From this, deviation in human resource will
attained and accordingly decision for recruiting new staff can be done (Ployhart and
Moliterno, 2011).
 Assessing Market Demand: After determining the gaols, HR manager need to look
for market demand for skilled employees. In case, if there is high demand of skilled
staff then aggressive recruitments strategy need to employ. From this, business will
able to ensure considerable amount of employee.
 Identifying the Supply: After demand, supply need to be assessed so that decisions
with regards to pay scale and selection strategy can be made. If supply is high, then
pay scale for new employee will be reduced and vice versa.
 Development of HR Plans: Additionally, Posh Nosh can develop plan with regards
to recruit required number of employees. For this, internal and external recruitment
strategy can be employ (Scullion and Collings, 2011). Internal strategy includes
transfer, promotion, voluntary retirement, etc. whereas job advertisement, walk-ins,
contract with consultancy are part of external strategy.
 Controlling: This refers to process of analysing the performance of each set of
employees so that deviation can be managed easily. Also, it aids in attaining the
objectives in an effectual manner.
2.3 Comparing Recruitment and Selection Process
For the purpose of comparing recruitment and selection process, British Petroleum
(BP) has been selected against Posh Nosh. Recruitment process at BP initiates with internal
and external source. Under internal, promotion and transfer is taken into account, whereas
external includes inviting applicants on own website and it also tie-up with certain
consultancy firm in order to select most skilled employees. Contrary to this, there is very
minor role of recruitment in Posh Nosh and it majorly relies on external source. Under this,
inviting candidates from job portal, campus recruitment, walk-ins and advertising are used
majorly.
After inviting candidates, selection process initiates which assess the capabilities and
competencies of each applicants. BP uses filter process where candidates are rejected on the
basis of qualification and experience. Candidate must possess 2 years of experience for
applying in BP. After this, HR level round is done in which general scrutinizing of candidates

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is done and report of same is offered to senior officials. After this, technical round is done in
order to assess the technical skills (Bamberger, Biron and Meshoulam, 2014). Qualified
applicants are promoted towards panel interview where skills, competency and critical
thinking power is judged. At the end, filtering is done on the basis of score and at this point,
candidates that scored highest point is selected and negotiation with salary is done. After this,
offer letter is given to the candidates.
On the other hand, Posh Nosh follows a bit simpler process where selection process
initiates with preliminary interview with HR manager. Best suited candidates are then called
for final interview where senior official judges the capability of candidates. Based on it, most
suitable candidate is selected and offer letter is offered to them upon doing salary negotiation.
2.4 Effectiveness of Recruitment and Selection
It is evident from above discussion that BP follows a complex process than that of
Posh Nosh with a motive to choose most suitable and competent candidates. Through this,
tough assessment is done of each applicants that aids in gaining higher results. BP is able to
gain better idea and suggestions from its employees as it focuses in critical thinking skill at
the time of selection. From this, business is able to increase its competency in the market.
Further, it results into low attrition rate within organisation as only serious and committed
employees are selected. Further, BP is able to gain higher productivity from its employee as it
focuses on selecting most skilled employees (Albrech, 2011). Beside this, technical skills are
judged of each candidates due to which chances of accidents and mishap declines to great
extent. However, it can be argued that BP follows a bit time consuming process which is not
relevant for quick selection. From this, huge amount of time and efforts incurred.
On the other hand, Posh Nosh follows a simpler process which gives an advantage to
company to screen large number of candidates. From this, probability of choosing better and
most suitable candidates get increased. Also, the business can appoint employees in shorter
time span which was not possible in the case of BP. However, Posh Nosh doesn’t assess the
technical skills of candidates, from which issue of poor management and quality may arise
within organisation (Weber and Fried, 2011). This certainly affects the operational efficiency
of the organisation.
TASK 3
3.1 Relationship between Motivational Theory and Reward

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Rewards are the key aspects of motivational theory which aids in boosting the
performance of employees in an effectual manner. Focusing on Herzberg two factor Theory,
Posh Nosh can boost the motivation by focusing on hygiene and motivational factors. In
hygiene factor, rewards include sound working condition, appropriate policies and rules, fare
remuneration to employees, healthy relations with co employees and other related. All these
factors must be present within the organisation in order to feel employee satisfied with their
work (Bakker and Leiter, 2010).
Figure 1: Herzberg Two Factor Theory
(Source: Crook and et.al., 2011)
However, business must focus on motivator factor as well. These are the actual
rewards which aids in boosting the performance. Under this Posh Nosh must offer rewards
like recognition, promotion, appraisal, delegating key responsibility, compensation and other
related. With all these rewards, motivation among employees can be increased (Werner and
DeSimone, 2011). It is required that Posh Nosh must offer fair working condition, work life
balance, incentives, bonus schemes and compensation in order to enhance the motivational
level of employees.
3.2 Job Evaluation Process
Company need to do job evaluation in order to assess the performance of employees.
In this respect, benchmarking and quality standards can be set by management in order to
track the performance of employees. Also, loopholes in the performance or job can be tracked

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and corrective measures can be taken accordingly. Further, sound training and development
session can be offered to employees as part of job evaluation. Additionally, adhering with
policies is also required by employees so that work can be done accordingly. It is evident that
Posh Nosh is going through the phase of business expansion and at this particular time they
might increase work pressure. However, due to increased workload there are several HR
activities are consolidated. In this, job evaluation can be done through feedback or by taking
reviews from employees (Farndale, Scullion and Sparrow, 2010). Further, Due to
unfavourable working environment, conflicts may arise between team members. It creates
negativity among all of them and they are not able to deliver quality services to all their
customers. Hence, same need to be considered as part of job evaluation. Moreover, 360
degree appraisal can be implemented in order to evaluate the performance of employees.
3.3 Effectiveness of Reward System
Rewards are of key importance for organisation as it helps in shaping the employee
performance. Posh Nosh can offer monetary based rewards for enhancing the loyalty and
commitment towards job. Employee will work in a positive manner in order to earn the
rewards. Through financial reward, business can able to gain benefit in terms of high support
from employees. From this, work load can be managed in proper manner and it also assist in
boosting the overall productivity of organisation. With this, customers can be offered with
appropriate service. Further, benefits can be seen in terms of high retention rate along with
decline in absenteeism of employees (Gruman and Saks, 2011). This certainly develops
positive environment at the workplace from which business can able to boost its performance
in the market place.
Apart from it, non-monetary rewards also aids in enhancing the morale of employees.
With this, job satisfaction can be achieved and business can able to progress further. Apart
from it, proper rewarding system helps in expanding the business as well. With this,
employee engagement and involvement gets increased that aids in gaining new ideas and
concepts. Further, new employees will surely get attracted towards Posh Nosh if sound
rewarding system is followed. This will results in gaining high amount of attention from the
job seeker which leads to developing a competent base.

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3.4 Monitoring Employee Performance
Posh Nosh need to adopt different set of monitoring techniques in order to assess the
employee performance. In this context, following are the key methods that can be engaged by
the company:
 Observation: It is required that supervisor must observe its subordinates as part of
monitoring the performance. Through this, deviation in performance can be track and
same can be optimized through proper training and development (Scullion and
Collings, 2011).
 Benchmarking: Further, Posh Nosh can adopt the concept of benchmarking to assess
the employee performance. In this, standard can be set and performance of employees
can be matched through it. Corrective actions can be taken in care of difference in the
employee performance.
 360 Degree Appraisal: In addition to it, cited organisation can engage 360 degree
appraisal in which feedback from senior, junior and colleagues will be taken. This
aids in gaining review from each of the party (Flamholtz, 2012). Through this,
performance can be measures in most effectual manner and also suggestion can be
received to boost the performance.
 Technology or Software: In the end, business can use varied set of software or
technological method to assess the performance. In this respect, rating system and
comments can be followed to judge the performance of employees.
Hence, all these measures can be adopt by Posh Nosh to measure the performance of
employees in appropriate manner.
TASK 4
4.1 Reasons for Employee Cessation
Cessation of employment in a practice of terminating the employees due to any of the
reasons that been mentioned in code of conduct. Within the context of Posh Nosh, following
can be the reasons for cessation of employees:
 Poor Performance: If employees in not performing well and often overlooking the
warning, then, he/she can be fired from the job. However, company should provide
proper training in order to give fair chance to employees for performing well.
 Violating company policies: Another reason can be violation of company policy in
any manner (Gruman and Saks, 2011). If such thing is witnessed time and again on
part of employees, then company can cease the employment.

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 Fraud or Data Thieving: In case, if employees of Posh Nosh found guilty under
fraud or data thieving, then he/she can be terminated immediately. It is a very serious
concern for organisation as it can affect the image as well.
 Employee Behaviour: If employee behaviour is not found appropriate then he/she
can be terminated. It is required that employee must behave professionally within
office premises and must the responsibility in appropriate manner (Bloom and Van
Reenen, 2011). Failing to do so will affect the performance of organisation.
It is required that Posh Nosh must take few steps in order to decline the employee
turnover rate. In this context, focus must be laid on employee satisfaction and motivation as
certainly aids in boosting the loyalty. Further, sound work environment and culture must be
developed to retain the employees. Proper training and development session must be
conducted on regular basis in order to boost the competency of employees. From all these
measures, issue of employee turnover can be reduced.
4.2 Employee Exit Procedure
It is a procedure that been followed at the time when employee is leaving the
organisation. In this context, British Petroleum follows a systematic process with a motive to
decline the employee turnover rate. For BP, employee need to send the resignation letter to
head of department who further discuss the reasons for the same. After this, letter is
forwarded to HR department where further discussion is held by the HR manager. Employees
are then given by different option in order to retain them (Crook and et.al., 2011). If all the
options are not entertained by that employee even after giving time for thinking, then
resignation letter is accepted and notice period of 3 months need to be served. At the last day,
no dues are signed and all the responsibilities are transferred to respective members. At the
end, exit interview in done where feedback is taken by him/her to make the process and
working more streamline. After this, related documents are handed over to employees.
Contrary to this, Posh Nosh follows a simple process. Employee need to send
resignation letter to HR department after discussing with direct reporting authority. After this,
discussion is made by the HR personnel in order to retain them. After that, employee need to
serve the notice period of 1 month and in the meantime, responsibilities of that employee is
forwarded to other employees (Albrech, 2011). At the last day, feedback is taken by
employee followed by no dues. Lastly experience letter is offered to employees.
It is evident that exit interview plays a crucial role in filling the loopholes of the
business. Employee certainly faces different set of issue while working within organisation

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and same can be reached to management through this set of interview only. From this,
business can able to streamline the process and also able to take corrective actions wherever
it is necessary.
4.3 Impact of Regulatory and Legal Framework
Mentioned organisation must adhere with legal and regulatory framework while
dismissing any employee. As per the law, the company cannot dismiss anyone on the basis of
caster, age, gender and religious background. Doing so will leads to contradictory situation
for the business. Further, proper reasons must be given to employee while dismissing in order
to remain answerable in any situation. This helps in remain ethical and also aids in remain
justifiable for either of the party (Ployhart and Moliterno, 2011). Also, at least 30 days notice
period must be offered to employees before terminating so that he/she can look up for another
job. Further, while relieving, accounts of the employee must be settled and nothing should be
due on both side. Proper salary must be credit to employee as per company policy in order to
remain justifiable to that employee. Employment Act must be considered by the company
while dismissing any employee (Werner and DeSimone, 2011).
CONCLUSION
From this report, it is concluded that Posh Nosh must adopt HRM is the practice in
order to boost the competency and skilled of employees. Through this, systematic process of
training and development of employees will be initiated that aids in serving the customers
better. Also, issue of mismanagement and chaos at workplace can be omitted by adopting
HRM.

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REFERENCES
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Bamberger, P.A., Biron, M. and Meshoulam, I., 2014. Human resource strategy:
Formulation, implementation, and impact. Routledge.
Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity.
Handbook of labor economics. 4. pp.1697-1767.
Crook, T. and et.al., 2011. Does human capital matter? A meta-analysis of the relationship
between human capital and firm performance.
Farndale, E., Scullion, H. and Sparrow, P., 2010. The role of the corporate HR function in
global talent management. Journal of World Business. 45(2). pp.161-168.
Flamholtz, E.G., 2012. Human resource accounting: Advances in concepts, methods and
applications. Springer Science & Business Media.
Gruman, J.A. and Saks, A.M., 2011. Performance management and employee engagement.
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Lee-Ross, D. and Pryce, J., 2010. Human Resources and Tourism. Channel View
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Leonard, B. and Cardy, R. L., 2011. Performance Management. 2nd ed. New York: M E
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Martin, J., 2010. Key Concepts in Human Resource Management. SAGE.
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Paillé, P. and et.al., 2014. The impact of human resource management on environmental
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Scullion, H. and Collings, D., 2011. Global talent management. Routledge.
Simons, R., 2011. Human Resource Management: Issues, Challenges and Opportunities.
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Sun, L.Y. And et. Al.,, 2007. High-performance human resource practices, citizenship
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Management Journal. 50(3). pp.558-577.

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Weber, Y. and Fried, Y., 2011. Guest Editors' Note: The role of HR practices in managing
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Werner, J.M. and DeSimone, R.L., 2011. Human resource development. Cengage Learning.