Employee Termination and Settlement: Best Practices for HR Management

Here is a summary of the provided content: The assignment content outlines the importance of giving an employee with minimum 30 days' notice period to serve, failing which compensation can be claimed. It also emphasizes the need for unbiased reasons and proper rationale for termination, with written notification on company letterhead. Additionally, the report highlights the significance of clearing outstanding salary and other amounts by due date, providing experience letters, and settling employee accounts properly.

Human Resource
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Distinction between HRM and Personnel Management........................................................1
1.2 Functions of HRM.................................................................................................................2
1.3 Roles and Responsibilities of Line Manager at Posh Nosh...................................................2
1.4 Impact of Regulatory Framework on HRM...........................................................................3
TASK 2............................................................................................................................................4
2.1 Analyse the reasons for human resource planning in organisations......................................4
2.2 Outline the stages involved in planning human resource requirements................................5
2.3 Compare the recruitment and selection process in two organisations...................................5
2.4 Evaluate the effectiveness of the recruitment and selection techniques in two.....................6
TASK 3............................................................................................................................................7
3.1 Assess the link between motivational theory and reward?....................................................7
3.2 Evaluate the process of job evaluation and other factors determining pay?..........................7
3.3 Assess the effectiveness of reward systems in different context...........................................8
3.4Examine the methods organisations use to monitor employee performance?........................9
TASK 4............................................................................................................................................9
4.1 Cease of Employment............................................................................................................9
4.2 Exit Interview and Posh Nosh and Breakfast Club.............................................................10
4.3 Employee Cessation and Legal Framework........................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Employees are the most critical and valuable part for any business organisation. They
contribute to attaining organisational goals and objectives in an appropriate manner. In order to
manage their staff human resource management played an important role (Brushett and et. al.,
2010). They played various function such as workforce planning, employee employer relation,
supporting and management of employees staff. It will become the critical part which is related
with the using human resource in an effective manner. The present report is based on the Posh
Nosh Limited which is a food company and operate their business in to the United Kingdom.
TASK 1
1.1 Distinction between HRM and Personnel Management
HRM can be defined as a practice of managing employees within organisation so that
development of company and employees can be witnessed. It is an advance approach in which
emphasize is laid on meeting business objectives along with developing the performance and
productivity of employees. Contrary, personnel management is just an approach to record the
details regarding employees and managing their routine work. Following are the in-depth
discussion upon differentiation of both the approach:
Human Resource Management Personnel Management
Here, employees are considered as valuable
assess and hence focus is laid on boosting
their productivity.
In this practice, employees are used just as
other type of resources in order to accomplish
business objectives.
HRM advocates for participative decision
making to promote employee participation
and engagement (Gatewood, Field and
Barrick, 2015).
Decisions are solely taken by management
and employees are just asked to follow those
act.
Modern approach towards developing
employees.
Traditional approach for using manpower to
attain business goals.
Direct communication is practiced Indirect communication is practiced
Systematic decision making Quick decision making
Employee performance are used to determine
the pay.
Job evaluation is only considered (Stone,
Lukaszewski and Johnson, 2015).
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Based on this discussion, it is evident that Posh Nosh must follow HRM in its operation
in order to gain maximum return from its employees. Through this, their skills and competency
can be developed through regular training and development session. Further, motivation level of
employee will increase that aids in attaining high job satisfaction.
1.2 Functions of HRM
HRM, being a modern approach, possess wide set of functions which helps organisation
in boosting its competency by developing skilled employee base. In this context, following
functions of HRM can be incorporated by Posh Nosh Ltd.:
 Recruiting and Selecting: This is one among the basic function of HRM which is linked
to filling vacant position of organisation by identifying skilled employees. HR manager at
cited company must develop appropriate documents so that vacancy within the
organisation can be filled (Reade, 2015).
 Motivation: Another aspect of HRM is motivation which ensures that employees feels
comfortable and positive towards work. For this, monetary and non-monetary rewards
must be followed by organisation to get best out of the employees. Cited organisation
must motivates its employees in order to retain them for longer.
 Wages and Remuneration: This is yet another crucial task of HR manager. Proper
wages and salaries must be credit in the account of employees on due date. This aids in
developing healthier relations with them that aids in attaining low attrition rate in
organisation.
 Training and Development: Employees need to be trained and developed so that they
can able to perform in appropriate manner. Hence, HRM focuses on giving regular
training and development session to its employees in order to increase its efficiency
(Glendon, Clarke and McKenna, 2016).
 Manpower Management: Further, HRM focuses on managing the manpower and
handle each and every queries of employees. Further, grievances and conflict
management is also a function of HRM which supports in developing sound working
environment.
1.3 Roles and Responsibilities of Line Manager at Posh Nosh
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Line manager is a person who works to manage employees and liable to monitor the
performance of employees so that business objectives can be achieved. In this context, Line
manager at Posh Nosh possess following roles and responsibilities:
 Line manager at cited company has to focus whether his subordinates are operating as
mentioned in business policies or not. Quality checking and meeting it with standards are
looked by the manager which certainly helps in attaining business objectives.
 Cited manager at Posh Nosh need to take feedback from each employees regarding their
working. Also, issues that are facing by employee need to resolve by line manager so that
work according to business requirement (Williams, 2010).
 Assessing the performance of each employee is another set of responsibilities of line
manager at mentioned organisation. Further, he need to evaluate the performance as well
and need to do appraisal in timely manner. Through this, overall effectiveness of
organisation is increased.
 Another concern for line manager is to maintain discipline within the organisation so that
work can be done accordingly. From this factor, overall performance of employees is
increased and it even aids in meeting the need of customers. Through discipline, works
get completed in timely manner (Mankin, 2009).
 Quality checking is also need to be done by line manager at Posh Nosh. It is required to
check the quality of work done by employees so that deviation can be tracked. On this,
corrective measures can be employed.
1.4 Impact of Regulatory Framework on HRM
It is required that cited organisation must focus on varied set of laws and regulatory
requirement within the context of employment in order to meet with rights of employees. In this
respect, following regulatory and legal framework need to be considered by HRM:
 Disability Discrimination Act 2005: Posh Nosh must ensure that it doesn’t practice
discrimination among employees on the basis of disability. Each employees have equal
right on benefits and violating leads to compensation from company.
 Employment Right Act 1996: This act is developed to safeguard the rights of employees
within the organisation. Posh Nosh must ensure that it fulfils each set of right of its
employees (Roberts, 2015).
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 Equality Act 2010: Posh Nosh must adopt equal approach for managing its employees. It
is required that the company doesn’t make any discrimination among employees on the
base of age, sex, religion or other factors.
 Health and Safety Act 1974: Posh Nosh is legally liable for the health and safety of its
employees within the premises. Hence, proper measures and equipment must be installed
by company to safeguard the health and safety of each sets of employees.
 Working Time Directives: Posh Nosh need to adhere with this law in order to ensure
work life balance of its employees. According to this act, the company cannot ask
employees to work more than 48 hours a week without extra pay (Robertson, Jansen
Birch and Cooper, 2012).
TASK 2
2.1 Analyse the reasons for human resource planning in organisations
Human resource planning is a process where the HR department of the company analyses
the future needs and matching these needs in a effective manner (Abreu, and et. al., 2011). It is a
part of strategic planning which can help to provide competitive advantages in the market. There
are various reason for HR planning which as given below:
Workforce planning: This is one of the major reason which is related with the
manpower planning in order to meet their current and future requirements. In the context of Posh
Nosh Limited the HR department required that to analyses firm future staffing needs according
to their long term goals and objectives.
Recruiting skilled workforce: In this point the HR manager of the cited business
organisation is required to recruit and select highly qualified and skilled staff in their
organisation. For this they can use various tools and techniques so they can provide quality
services to their customer which can leads to increase customer loyalty (Moeinifar, Kokabi and
Hosseini, 2010).
Coping with change: The business environment is too complex and competitive and
change over a period of time. These changing environment can create various key challenges and
complexities for the HR department. Therefore, it create a need of coping with these changes so
that the firm can meet their future needs in a effective manner. In the context of Nosh Posh
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Limited they required to meet these changes and recruit talented manpower which can provide
sustainable growth and development in their business.
2.2 Outline the stages involved in planning human resource requirements
Human resource is a systematic process which can help to meet their future requirement
in a effective manner (Abreu and et. al., 2012). There are various factors involved in the
assessment of human resource which also be considered by the HR manager so that they can
attain their long term goals and objectives effectively. There are various stages involved in this
process which is given below:
Assessing human resource: This is the first stage of HR planning which is related with
the assessment of current and future skills within the organisation. For this the HR department of
the cited business also evaluate their long term goals and objectives. Apart from that they also
scanning the internal and external environment of the business entity by using PESTEL and
SWOT analyses.
Demand forecasting: This is the next stage which is related with the demand
forecasting. In this stage the HR department estimate their future needs and determining their
future growth and development (Iles, Chuai and Preece, 2010).
Supply forecasting: In this stage the firm required to meet their requirement with the
available resources. For this they can identified and determined their internal staff so that they
can meet their requirements accordingly.
Matching demand and supply: Once supply forecasting is done in this stage the HR
department required to match their demand with the supply. If there are deficit in the staff they
can go for new recruitment. On the other hand if they can assess resources they can manage
accordingly.
Implementation: In the final stage the HR department required to implement their
overall plan in a effective manner (Abreu and et. al., 2012).
2.3 Compare the recruitment and selection process in two organisations
The process of recruitment and selection is played a prominent role in the growth and
development of any business organisation. Each and every firm's having their own selection
process according to their organisation culture and flexibility. There are the following
recruitment and selection procedure of Posh Nosh Limited and The Breakfast club:
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Recruitment and selection process of The Breakfast Club:
This is a small business unit which having not more than 5 cafe in the United Kingdom. This
company size and scope is quite limited as compare to the Posh Nosh Limited. The Breakfast
Club I financial resources are limited so that they can not operate their own HR department.
Because it can increase the cost of operation which is not good for the business unit. Therefore,
for the recruitment process they go for external recruitment agency which charged a fee for the
recruitment and provide quality staff to their clients (Moeinifar, Kokabi and Hosseini, 2010).
Recruitment and selection process of Posh Nosh Limited:
The cited business unit is quite large in terms of size ans scope. Therefore, they have their own
HR department which handle and management recruitment and selection process. These
selection process as given below:
 The first stage is related with the identifying and determining the current staff in the cited
business unit. So that they can estimate future skills and capabilities in a effective
manner.
 The second stage is related with the create an design HR plan with the discussion with the
higher authorities (Abreuand et. al., 2011).
 In the next stage the HR manager is required to identified suitable tools and methods so
that they can sourced talented staff.
 In this stage they make a selection team which decide the appropriate strategies for
recruitment plan and also make the structure for the interview process.
 Conducting interview and selecting potential staff of the company form various
applicants.
 Provide training and development program to them so that they can perform their task
effectively.
2.4 Evaluate the effectiveness of the recruitment and selection techniques in two
It is essential of every business organisation is to evaluate the effectiveness of
recruitment and selection procedure of different organisations. As the HR planning is strategic
process therefore, HR department required to evaluate these process so that they can meet their
future challenges in a appropriate manner. The effectiveness of recruitment process of The
Breakfast Club is required to change in the future (Brushett, and et. al., 2010). This business unit
is growing which need the HR department so that they can recruitment best people form the
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industry. So that they can provide high quality services to its customers. On the other hand, Posh
Nosh Limited they can go for outsourcing of HR activities so that they can concentrate on their
main business. It can help to increase their selection process which enhanced their productivity
and efficiency. Thus, they can use their strategies accordingly and attain their long term goals
and objectives in effective manner
TASK 3
3.1 Assess the link between motivational theory and reward?
Human recourse management through manage the all activities and works in the
organisation and also increase working efficiency of employees. Human resource management in
various types of motivational and reward theories. Those are representing the actual performance
of the employees and how to motivate them for their work. Posh Nosh Ltd want to develop
productivity and quality of work and trying to beat all competitors in the market. There are two
theories one is motivational theory and second one is reward theory motivational theory define
the process of how to motivate a person and what are factors like other employees, peers,
competitors etc. (Moeinifar, Kokabi, and Hosseini, 2010). Those are help to motivate a person
for their work. And they can get high benefits comparison to other employees. Second one is
reward theory, its represent the how to do work effectively and which on person adopt which
suitable and applicable strategy according to the company. Its help to increase productivity of the
company and also increase the skills and ability of employees. Reward theory totally depends
upon the employee's working performance and working quality. Working quality and
performance of the company develop by the company's managers through provide training to
them. So in the other hand, these both theories are represent the how to motivate employees for
their work and give to give proper rewards according to their working performance. Motivational
theories include various types of theories like Maslow theory, X and Y theory and McGregor
theories, these all theories all about the motive their employees for their work (Abreu, and et. al.,
2011).
3.2 Evaluate the process of job evaluation and other factors determining pay?
Job evaluation process means employees are how to do work in the organization and
which one strategy they are using in the Posh Nosh Ltd. Job evaluation through get proper
information related to work done by the employees and also determine the working ability of
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each employees those working in the organisation. Job evaluation process include mainly few
steps those are under the below:
Job analysis and job description: In this stage of job evaluation has define the actual
responsibility, duties what qualifications are needed for the actual job or work in the person. It
should be applicable according to their environment of the company (Brushett, and et. al., 2010).
Job analysis through get easy to understand what rules, responsibilities have to be follow by the
employees. For improve the efficiency and the quality of work so, it should the require to
identify and has to be understand job responsibility its help to give proper performance by the
employees in the company.
Job evaluation: Job evaluation related to the job position and other staff positions in the
organizations. It should be determine before joining the job. Job evaluation is help to represent
where the employees in the company and what they are perform for the company. There are
some factors to determine the pay, include how much amount of money pay to the employees
accounting to various basis. So there are some factors those are affecting on this.
Skills: Skills of the employee are play an important role in this company how much work they
can able to do work with effective and efficient manner. Skills of the person represent the actual
performance of the employees (Katou and Budhwar, 2010).
Knowledge: Knowledge of the person depends upon the experiences, work performance,
newspaper reading and increases knowledge from the external environment.
3.3 Assess the effectiveness of reward systems in different context
Effective reward system is the part of success of the employees in the organization. Its
help to motivate them for their work and increase high level of productivity, the organisation
reaching at the high level in the production and give full satisfaction to the employees. Its help to
achieve targets and goals. There are two type of reward systems one is intrinsic motivation and
second is extrinsic system. Intrinsic system include give rewards and bonus through the
company on the basis of working performance and if the employees does some extra work with
the efficient manners, they can get rewards and bonus through the mangers and head of the
department. Second is extrinsic reward include extra rewards and extra bonus through the
external environment of the organisation like awards, opportunities, good offices etc. its does by
the external department of the company (Jhong and et. al., 2012). Its also depends upon the
employees performances and working efficiency of their working in the company so there are
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both system are different on its depends upon the internal environment and second one is
depends upon the external environment. These both are systems provide meaningful works
through the employees of the company and they can easy to motivate them for their work.
Employees has chances to improve their efficiency of works and get proper training related to all
things by the mangers and other employees and take rewards and bonus by the managers. It help
in the future development and improve quality of work and also improve the working efficiency.
3.4Examine the methods organisations use to monitor employee performance?
Evaluate and examine the employee performance in the organisation, so by the organisation use
various methods and techniques (Moeinifar,Kokabi, and Hosseini, 2011). And they are also
trying to increase performance of the work. There are some methods those are using in the Posh
Nosh Ltd following under the below:
Self evaluation: Self evaluation means dine self on the basis of working performance and ability
of work. Work evaluation through get proper knowledge related to their work an also ability of
the employees. Its help to increase product quality and increase working efficiency of the
employees through this employees can does work effective and efficient manner.
360 evaluation: 360 Evaluation in identify total employee performance, nature, behaviour ,
manner, communication, knowledge, etc. these all are effecting on the organisation image in the
market. So, should be effective and efficient in the manner of employees working performance in
the nature its help to develop organization performance and it can easy to beat them (Snape and
Redman, 2010).
Checklist: Checklist method in set a lists of the requirement in the employee then identify which
on employees is suitable for this company . This method is easy to apply in the company and
easy to receive the feedback through the employees. This method define the working quality and
performance of the employees. In the other hand, these methods are help to identify performance
of the employees.
TASK 4
4.1 Cease of Employment
There are different types of reasons for the cessation of employment. In this context of Posh
Nosh, following might be the reasons for ceasing the employment:
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o In case, employee performance is not good then it can directly ends with termination
followed by series of warning.
o If business growth is declined due to contradictory market scenario then it will results
into employment cessation within the context of Posh Nosh.
o If employees is not serious towards job and take his/her work very casually then it might
affect business image. Continuously practising the same might leads to employee
cessation.
o Also if behaviour of employee is not correct and there are series of discipline issue
witnessed on part of him/her, then employee may get serious warning. If such warning
are even ignored by employees then it can be the reasons for employee exit (Jackson and
Malthis, 2010).
o Absenteeism and taking regular holidays without taking prior approval is a serious
concern for company. Poor quality of work and practice of taking regular holidays will
surely end the employment of employees.
o Fraudulent activity practiced on behalf of employees, then it leads to employment
cessation.
Hence, these can be some of the scenario with respect to Posh Nosh for employment cessation.
However, it is required that management must take few steps in order to decline employee
turnover. For this, high motivation at workplace is required in order to boost the commitment
and loyalty among employees. From this, employees will take the job seriously and hence will
perform according to business standards. For this, monetary and non-monetary rewards must be
offered to employees. Work life balance for employees need to be made so that they can manage
both the things in appropriate manner (Shermon, 2004). Through this, issue of employee
turnover can be reduced.
4.2 Exit Interview and Posh Nosh and Breakfast Club
Both the organisation is small in nature but process of exit interview differs in it. Within
the context of Posh Nosh, resignation letter is send by employee to HR department and
concentred authority. After this, discussion is done by the employee in order to know the reason
behind resignation. Discussion is followed by accepting the resignation letter is employee
doesn’t convinced to remain. For this, one month notice period need to be served by the
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employee without taking any leave on working day. At the last day, no dues document are filled
and signed by varied authorities and ultimately responsibilities of that employees are transferred
among peer one. Every due need to be submit by last date and by this process of employee exit
completed at Posh Nosh.
On the other hand, at The Breakfast Club, a bit complex exit procedure is followed.
Firstly, employee need to discuss with his/her direct authority regarding resignation. The higher
authority then convey the message to HR manager which then negotiates with the employee.
After this, senior management discuss the issue with that employees and try to retain it by
different means. If at last employee is not convinced to remain then formal letter is written by
him to concerned authority. After that, notice period of one month is required to serve. At the
last day, exit interview is taken by HR manager in which feedback is attained from it. After this,
no dues certificate is signed by authorities and whole formalities and paper work is complete.
Exit interview aids in gaining suggestion to make the internal working environment more
suitable.
4.3 Employee Cessation and Legal Framework
For terminating the employee, cited organisation need to consider following points:
o Prior notification must be given to employee with minimum 30 days of notice period to
serve. Failing to do so can be claimed for compensation by employee.
o Rationale and unbiased reasons must be offered to employee for the termination and by
giving enough chance to justify the point of employee as well
o Reason of termination must be offered to employee in written on business letter head
with seal of organisation and sign of concerned authority.
o Salary and other remaining amount must be cleared by due date without making any sort
of manipulation (Barratt and Lenton, 2010).
o Account of employees must be settled by due date and proper experience letter should be
offered by company.
CONCLUSION
As per the above given the report, it has been concluded the all information related to
human resource management, this report representing the how to increase the efficiency of
employee through the various methods and which one report are useful and also helpful for the
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Posh Nosh Ltd. Through this report can get proper knowledge about the employee’s performance
ways in which they can be motivated through rewards and bonus those are depending upon the
performance of the employees. In the other hand, all companies are using various techniques and
methods to develop productivity and beat the competitors in the market. Build an effective image
front of all competitor.
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Roberts, S., 2015. How Does HR Fulfill Organizational Goals and Objectives? [Online].
Available through <http://smallbusiness.chron.com/hr-fulfill-organizational-goals-
objectives-15863.html>. [Accessed on 13th April 2017].
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