Effective Strategic HRM for Enhanced Organizational Performance

This handbook on strategic human resource management (SHRM) draws from various sources to provide a comprehensive overview of the field. Key topics include the relationship between HRM and productivity, the role of HR in strategy development, and the impact of SHRM on organizational performance. The book covers conceptual frameworks, theoretical perspectives, and empirical research studies that explore the intersection of HRM and business outcomes. It also examines the challenges and opportunities presented by factors such as globalization, technology, and sustainability. Overall, the handbook aims to provide a nuanced understanding of SHRM and its relevance in today's fast-changing business environment.

University
Human resource management
By
Date
Name
Lecturer’s name

HUMAN RESOURCE MANAGEMENT
Contents
Task 1:...................................................................................................................................................2
LO 1: Understand the difference between personnel management and human resource
management.........................................................................................................................................2
1.1 Distinguish between personnel management and human resource management.....................2
1.2 Assess the function of the human resource management in contributing to organizational
purposes............................................................................................................................................3
1.3 Evaluate the role and responsibilities of line managers in human resource management..........4
1.4 Analyse the impact of the legal and regulatory framework for human resource management. .5
Task 2:...................................................................................................................................................7
LO2: Understand how to recruit employees..........................................................................................7
2.1 Analyse the reasons for human resource planning in organizations...........................................7
2.2 Outline the stages involved in planning human resource requirements.....................................8
2.3 Compare the recruitment and selection process in two organizations.......................................8
2.4 Evaluate the effectiveness of the recruitment and selection techniques in two organizations...9
Task 3:.................................................................................................................................................12
LO3: Understand how to reward employees in order to motivate and retain them...........................12
3.1 Assess the link between motivational theory and reward.........................................................12
3.2 Evaluate the process of job evaluation and other factors determining pay..............................12
3.3 Assess the effectiveness of reward systems in different contexts.............................................13
3.4 Examine the methods organizations use to monitor employee performance...........................14
Task 4:.................................................................................................................................................16
LO 4: Know the mechanisms for the cessation of employment...........................................................16
4.1 Identify the reasons for cessation of employment with an organization...................................16
4.2 Describe the employment exit procedures used by two organizations.....................................17
4.3 Consider the impact of the legal and regulatory framework on employment cessation
arrangements..................................................................................................................................18
Reference............................................................................................................................................19
Page 2 of 23

HUMAN RESOURCE MANAGEMENT
Task 1:
LO 1: Understand the difference between personnel management and
human resource management
1.1 Distinguish between personnel management and human resource
management
Human resource management is a distinctive and famous approach that deals with managing
people of an organization or group seeking to achieve competitive advantage. The strategic
planning and organized execution seek to bring out the maximum capability of the workforce
and optimally utilizing them for the meeting the objectives. The cultural, structural and
technical array of categories decides the management strategy of human resource. Motivation
is the influential force both external and internal that drives the desire of a human being to
achieve the goal by making them liable to be committed to their jobs.
Personnel management and human resource management refers to more or less the same
thing. However, the basic difference is seen in the approach and adaptability. Personnel
management is a traditional approach whereas human resource management is a modern
method. Personnel management focuses on the administration of personnel of the company,
relations, and welfare of the labor. It was considered that personnel is the investment of input
forces that will generate profitable output. Employee satisfaction was the primary motive of
undertaking personnel management. Based on the labor division, the jobs were designed
accordingly where they were less provided with training facilities as well as development
opportunities. The top administration and management officers were in charge to make the
decisions, and they focused on increasing the productivity. Personnel manager was given
more importance, and that was conducted in a scheduled functioning system.
Page 3 of 23

HUMAN RESOURCE MANAGEMENT
Human resource management puts high stress on the development, motivation, and
acquisition of human workforce and maintaining the management system in an organization.
Human resource management is more open and flexible approach that gives more importance
to every division of labors. Administration functioning considers the achievement of the
objectives to be the main function. The jobs are designed based on the team capability and
group work. Employees and workers are provided with better training facilities and
opportunities for growing and development. Employees' participation matters the most and
decentralized organization system helps in forming a productive and cultural system.
Efficiency and effectiveness of the employees enhance the firm's capability, and all the level
of managers are considered to be important here. Unlike personnel management, human
resource management is considered to be a strategic function.
1.2 Assess the function of the human resource management in contributing
to organizational purposes
Posh Nosh is an SME, and the HRM deals with the management of people from the
perspective of the macro environment. The functions of the human resource management are
the crucial and vital points that help the organization to attain the business objectives.
The major functions of HRM in Posh Nosh Limited are as follows:
Human resource planning: This refers to analyzing the present and future workforce that is
required for the organization needs and operations. The culture, structure, and objectives of
the organization are formed with the human resource availability and planning. The primary
component of any organization is human resources, and that is decided by the HRM.
Therefore, planning is essential to every primary step of management.
Recruitment and staffing: In the concerned company, recruiting the right staff for the right
job and therefore, to achieve the business objectives, it is very much essential to look for the
skilled workforce with proper knowledge and experience.
Page 4 of 23

HUMAN RESOURCE MANAGEMENT
Employee development: Increasing the productivity is the main motive of the organization,
and that can be enhanced by developing the opportunities for the employees to grow and
flourish. With the constant change of technology and approaches, it is an absolute
requirement of keeping the employees trained and updated with new things that will boost up
the whole organizational functioning.
Compensation: Posh Nosh Limited seeks to provide a handsome amount of remuneration to
their current employees for keeping the encouraged to work better for the organization. This
strategy not only satisfied the current employees but also attracts the new bunch of candidates
who can serve well to the company. Awarding bonus and rewards are the motivational
elements that enhance the working interest and commitment of the employees towards the
company and organization goals.
Employee Maintenance: In order to fulfill the organizational objectives and achieve the
goals, employees who are the developers of the company are provided with better
motivational strategies, so that their mental and physical health remains balanced and not
stressed. Posh Nosh greatly focuses on this factor.
1.3 Evaluate the role and responsibilities of line managers in human
resource management
The line managers are responsible for controlling and exercising the work of the subordinates
in achieving the goals of the company. In Posh Nosh Limited, there is the lesser requirement
of highly trained staffs because it is an SME and hence, the line managers here, perform their
personnel duties quite well.
Four aspects of the line managers’ role in HRM of Posh Nosh Limited are as follows:
 Implementing: This refers to the implementation of HRM policies in operating with
employees like rewards and performance appraisal.
Page 5 of 23

HUMAN RESOURCE MANAGEMENT
 Enacting: This is the execution of the planned strategies and policies to enhance the
performance effectiveness of the employees.
 Leadership: This refers to the interpersonal skills of the managers that motivate and
influences the employees to work and guide them to work efficiently and correctly.
 Controlling: Line managers control the employee behavior.
The responsibilities of the line managers of Posh Nosh Limited are as follows:
 Hiring appropriate candidates for the right job.
 The orientation of newly selected candidates.
 Training the employees.
 Ensuring performance efficiency from the candidates.
 Creating creative co-operation and the smooth working environment.
 Executing the policies and procedures of the organization.
 Employees’ personal development.
 Maintenance of morale of the departments.
 Employees’ health and physical protection.
1.4 Analyse the impact of the legal and regulatory framework for human
resource management
The legal framework of the Human resource management differs in different parts of the
world. Certain rules, laws, and regulations have to be maintained by the company where it is
situated, and Posh Nosh Limited follows the UK government laws.
 Trade Dispute Act 1906: It seeks to maintain the employees' relation harmony and to
solve any misleading situation for both the parties as per laws.
 Factories Act 1883: This act seeks to provide healthy measures, safety, and employee
welfare policies.
Page 6 of 23

HUMAN RESOURCE MANAGEMENT
 Employment Rights Act 1996: It focuses on the provision of proper remuneration to
the employees and prevents unjustifiable disputes.
 Public Contracts Regulation 2015: It focuses on improvisation of old skills by
theoretical and practical training.
 ICESCR 1981: This refers to the act of women and child welfare and health care
when the women are not able to work due to pregnancy or health conditions.
Page 7 of 23

HUMAN RESOURCE MANAGEMENT
Task 2:
LO2: Understand how to recruit employees
2.1 Analyse the reasons for human resource planning in organizations
Ioana Laura Marinescu
HR Manager
Posh Nosh Limited,
London.
Carmela Williams
Chief Executive Officer
Posh Nosh Limited,
London.
Ref: Significance of the human resource planning to Posh Nosh Limited
Introduction
This is a formal report highlighting the dynamism of human resource strategies and planning
in the organization like Posh Nosh Limited.
Posh Nosh Limited is operating multiple sites in the country itself, and thus, they need
professional human resource management strategies to cope up with the developing stage.
However, the organization size makes it easier to operate the management functions and the
basic works. There are ten outlets and 100 employees, and therefore, this matter currently
needs attention. The company is going to provide proper employment facilities and
remuneration to the workers and will also look into the matter of work deficit events. Backing
up with enough number of candidates to cope with the falling situation is an essential
function of the HRM team of Posh Nosh Limited. Human resource planning is going to create
Page 8 of 23

HUMAN RESOURCE MANAGEMENT
good opportunities for their employees, satisfy them and will be recognized by a massive
exposure.
2.2 Outline the stages involved in planning human resource requirements
There lie numerous stages of the human resource requirements in Posh Nosh Limited and that
are as follows:
Human resource assessment: Primarily, we analyze the requirements of the human resource
in the organization. This is done through analysis of available resource efficiency and
potential. This provides valid data and information regarding making choices with
employees' vision and their performance reports expecting to generate competitive advantage
in the market.
Demand forecasting: Following to assessment, we analyze the demands of the requirements
of human resource. If there is a need for new employees, we will hire them keeping in mind
the market advancements and demand and supply policy of economics. We will train them
and make them experience to make our objectives fulfill.
Supply forecasting: The supply of human resources is one more credential factor deciding
the availability of human resources in the time of need. Thus, we go through the requirements
of the market as well as the company to make sure the demand and supply policies and not to
be in a state of unfair progress.
Action plan: The hiring of efficient and effective human resources needs a solid and
adequate action plan. Posh Nosh Limited needs proper execution planning making the
process dynamic with the numerous channels of human resources. Interdependency and
reliability of the employees and company generate trust leading to better organizational
operations and satisfaction with comfort.
Page 9 of 23

HUMAN RESOURCE MANAGEMENT
2.3 Compare the recruitment and selection process in two organizations
The other company taken here for comparing with Posh Nosh Limited is McDonald’s.
Procedures Posh Nosh Limited McDonald
HRM process They have a small business
set up yet with ten outlets
and 100 employees that need
efficient management. This
will help to be progressive
and be dynamic.
They have huge management
set up, and thus, the channels
of the HR are widely
established.
Recruitment Screening and personal
interviewing.
Screening, written tests, and
personal interviews.
Selection The direct method of choice. Pre-hire and new hire
orientation.
Training Numerous training facilities
are focusing on the business
development.
Huge bases of training were
focusing both on business
and employment
development.
2.4 Evaluate the effectiveness of the recruitment and selection techniques
in two organizations
The effectiveness of the recruitment and selection procedures of both Posh Nosh Limited and
MacDonald are stated as below:
Posh Nosh Limited
Page 10 of 23

HUMAN RESOURCE MANAGEMENT
Recruitment and selection techniques of this company are less professional and immature.
The company needs to work much in this sector and mainly on the human resource planning
attributes. This will help the organization to stay sustainable in the market and perfect.
 Recruitment: The procedure is reflective and effective because they are using the
requirement from screening where they can eliminate a huge bunch of inefficient and
ineligible candidates. Following the shortlisting of candidates, personal interviews are
taken to filter the most eligible and efficient candidates.
 Selection: They provide direct methods of selective making it dull and void.
Orientation for pre-hire and new hires should be incorporated, and that helps in the
acquaintance of the resources.
 Training: Adequate training facilities are provided by the company that is oriented
with business development. However, the company should also focus on employee
development also.
McDonald
The procedures for recruitment and selection of this company are highly organized and
efficiently dynamic.
 Recruitment: They follow a disciplined process of recruitment by assessments,
written tests, and aptitude test followed by personal interviews and screening.
 Selection: They provide orientation to pre-hire and the new hire that is efficient for
the procedure.
 Training: The Company seeks to provide both business and employee development
making the process very effective.
Conclusion
Page 11 of 23

HUMAN RESOURCE MANAGEMENT
Finally, I would like to conclude my report stating that our company Posh Nosh Limited is
prospective and progressing. If we are facilitated with proper channels of human resource, it
will help us to build prospective and potential future arrangements, making it dynamic and
flexible for the organization.
Page 12 of 23

HUMAN RESOURCE MANAGEMENT
Task 3:
LO3: Understand how to reward employees in order to motivate and
retain them
3.1 Assess the link between motivational theory and reward
Motivation is an enhancing factor that initiates the behaviorism of employees in an
organization. It directs the concerned members to behave in a specific manner and that
according to the company needs. This helps in formulating correct strategies for influencing
workers and reward system is introduced. This system shows concern for the implementation
of appropriate strategies and paying off the employees' fair wage, equality, and consistency
according to the organization needs.
Motivation and reward system are interlinked with each other that satisfy and encourage the
employee needs. There are several motivational theories like Maslow's hierarchy of needs
theory, Herzberg theory, McGregor's theory, etc. Posh Nosh Limited seeks to use the
Maslow's hierarchy of needs theory to motivate their employees. The company analyses the
basic requirements of the employees and tries to fulfill them as per their capability in the
form of salary. Then they provide safety and security in the working environment to make the
employees feel secure. Thirdly, the company provides the opportunity to the employees to
grow. Fourthly, they use the reward system as a tool for motivating and encouraging the
employees to work by making fair decisions. They use the rank method for rewarding the
employees, and they get the advantages based on accuracy, productivity, and hygiene factors.
3.2 Evaluate the process of job evaluation and other factors determining
pay
Job evaluation: This process analyses different jobs and finds out the worthy candidates to
set a pay scale accordingly. The job evaluation is provided with different relevant information
Page 13 of 23

HUMAN RESOURCE MANAGEMENT
to make it easier for the applying candidates to understand the company needs. There are
varied jobs available at Posh Nosh Limited.
Ranking: The ranking of jobs are done depending on their worthiness or comparison. This
method is considered to be the simplest one making it advantageous regarding costing and
easy to grip. However, the disadvantage of this process is that it is not reliable enough as the
system of general rating prevails and prevents job differentiation.
Classification: Under this method, jobs are described in the form of comparison with pre-
existing grade descriptors. Unlike the ease of its usage, the process is overlapping and
ambiguous making it the greatest disadvantage of the system.
Point factor: Under this system, the general factors do not gain weight and are reduced to
sub-factors individually getting points. While determining the grades, these points are
utilized, and the biggest advantage it creates is by being large and specific. However, this
method is tough to understand and time-consuming too.
Payments depend on different factors that are as follows:
 Experienced employees who are senior with their job and departments usually get
higher payment than that of the fresher employees.
 Employees with higher designation get paid high.
 The performance, skills, efficiency and much more are the parameters to set the pay-
scale measures. Posh Nosh Limited uses these factors to set their pay-scale.
3.3 Assess the effectiveness of reward systems in different contexts
Reward system enhances the motivation within the employees making them satisfied with
their job and payment. Reward system is an influential factor helping the employees to work
Page 14 of 23

HUMAN RESOURCE MANAGEMENT
efficiently and make their contribution level best for the company. The better the employees
perform, the more profit for the company.
There are two kinds of reward system that Posh Nosh Limited follows:
 Intrinsic reward: These rewards refer to the non-financial rewards that are provided
to the employees for motivating them. This includes appreciation, recognition,
responsibilities, etc.
 Extrinsic reward: These refer to the tangible rewards including monetary rewards
along with bonuses, gifts, vouchers, coupons, commissions, etc.
Posh Nosh Limited with the effective implementation of the reward system will be able to
satisfy the employees and motivate them to work. It is a very simple approach that when the
employees develop, the organization is bound to develop consequently. The reward system
used by Posh Nosh Limited helps to attract many new employees and talents in the market for
their organization. They easily retain the skilled employees and satisfy them with their needs
and desires. Reward system provided equal growth opportunities for the employees making
them think about their fair decisions and motivating them to get maximum return on
investment.
3.4 Examine the methods organizations use to monitor employee
performance
Posh Nosh Limited follows these methods to monitor the employee performance:
Feedbacks: The reports of ready reference depicting current situations of organization
navigate easily through the managers. Employee behavior, growth, productivity,
performance, etc. get recorded, and these factors monitor the employee performance.
Page 15 of 23

HUMAN RESOURCE MANAGEMENT
Productivity reports: These reports include the employees' production. With the help of this
report, the managers can easily analyze the employees' work efficiency and help them
determining their performance.
Accuracy reports: The ultimatum of the production is this report that helps to determine the
work efficiency of the employees. Employee performance is monitored, and those detected
with lower performance are put more emphasized on to improve their capability and motivate
them.
Variance analysis: This is the gap report that measures the variation of the set of desired
results and the actual results attained. Thus, this analysis helps to evaluate the drawbacks and
loopholes pursuing the better level of arrangements to overcome them.
Page 16 of 23

HUMAN RESOURCE MANAGEMENT
Task 4:
LO 4: Know the mechanisms for the cessation of employment
4.1 Identify the reasons for cessation of employment with an organization
There are various situations and circumstances, where the employees are likely to cease
employment from Posh Nosh Limited and them, are as follows:
 Lack of adequate and reasonable compensation
 Weak working ambiance
 Less of growth opportunities
 Incorrect reward systems
 Lack of motivational factors
 Lack of support
There are certain factors that seek to increase the employee turnover in Posh Nosh Limited.
However, to reduce them the employee turnover, the company needs to take serious steps in
regards to correcting the actions like:
 Improvisation of the reward system is the primary change that they should look on for
better treatment to the employees. Following fair practices, while rewarding is also
needed to avoid any favouritism. Putting emphasis on the performance of the
employees is much essential than any biasness.
 Secondly, improvisation of the working environment is needed. Unless the employees
feel safe and hygienic at their workplace, it is not possible to generate productivity
and integrity out of the working members.
Page 17 of 23

HUMAN RESOURCE MANAGEMENT
 Thirdly, motivating the employees should be of more concern because that is lacking
and therefore, the management needs to be more supportive towards the betterment of
the employees as well as the company.
 Fourthly, creating adequate opportunities of growth to the employees is highly
demanding. Employees will not feel motivated and interested in working in the firm
unless they are provided with better growing opportunities and responsibilities. Equal
provision of basic facilities is a need for concern.
 Finally, the company must value their employees because they are the assets and their
performance brings in the development of the organization.
4.2 Describe the employment exit procedures used by two organizations
Posh Nosh Limited Accenture
Employees send their resignations to the
immediate managers.
There is a system of filling e-exit forms, and
the employees do so.
The immediate manager has the discretion to
discuss it.
Team leader or the manager takes hold of the
situation.
Immediate manager discusses with
management.
HR manager discuss this with the employee
Manager approves the resignation and
employees are to serve with two months
notice period.
The manager approves and finalizes e-exit
forms and employees serve for one month
notice period.
HR manager discusses the matter effectively
with the employee for retaining them.
HR manager conducts the exit interview, and
they try to retain their employees for the last
time.
Page 18 of 23

HUMAN RESOURCE MANAGEMENT
Exit interview: This interview process takes place when an employee applies for resignation
from the company. While leaving the company, this interview is conducted to analyze the
reason behind leaving and to reduce the loss of qualified employees. The Human Resource
developing manager of Posh Nosh Limited took the exit interview to improve better
strategies. Exit interviews are beneficial and help the company to make adequate
improvements in employment processing and management of human resource. This
consequently reduces the level of employee turnover ratio.
4.3 Consider the impact of the legal and regulatory framework on
employment cessation arrangements
The legal framework and regulatory measures have the great impact on the arrangements of
employee cessation. When employees are found to be dishonest with their intentions and are
avoiding the rules and regulations, they are terminated from the organization to perform
unlawful acts. However, while terminating the employees, the organization needs to keep in
mind the concerned acts and laws during cessation, and those laws are Equality Act 2010,
Pregnancy Discrimination Act, Non-Discrimination Act 1994, and much more. During the
time of termination, these laws have to evaluate properly to avoid any misjudgement.
There are few steps that are recommended for dismissal to redundancy:
 First, the collection of all the evidence that proves that the defaulter is guilty.
 Secondly, evaluation of the incidents' impact on the organization is necessary.
 Thirdly, the employee's performance and background have to be assessed and
evaluated.
 Fourthly, evaluation of the evidence on the relevant laws.
 Lastly, when the defaulter is found guilty from all sense, they are to be terminated
following the guidelines and laws.
Page 19 of 23

HUMAN RESOURCE MANAGEMENT
Page 20 of 23

HUMAN RESOURCE MANAGEMENT
Reference
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Armstrong, M., 2011. Armstrong's handbook of strategic human resource management.
Kogan Page Publishers.
Bloom, N. and Van Reenen, J., 2011. Human resource management and
productivity. Handbook of labor economics, 4, pp.1697-1767.
Boselie, P., Paauwe, J. and Jansen, P., 2001. Human resource management and performance:
lessons from the Netherlands. International Journal of Human Resource Management, 12(7),
pp.1107-1125.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave
Macmillan.
Cascio, W.F. and Aguinis, H., 2005. Applied psychology in human resource management.
Chen, C.J. and Huang, J.W., 2009. Strategic human resource practices and innovation
performance—The mediating role of knowledge management capacity. Journal of business
research, 62(1), pp.104-114.
Datta, D.K., Guthrie, J.P. and Wright, P.M., 2005. Human resource management and labor
productivity: does industry matter?. Academy of management Journal, 48(1), pp.135-145.
Ehnert, I., 2009. Sustainable human resource management. A Conceptual and Exploratory
Analysis from a Paradox Perspective, Heidelberg.
Fee, M.C., 2014. Human resources management.
Page 21 of 23

HUMAN RESOURCE MANAGEMENT
Fee, M.C., 2014. Human resources management.
Greer, C.R., 2001. Strategic human resource management. Pearson College Division.
Guest, D.E., 2001. Human resource management: when research confronts
theory. International Journal of Human Resource Management, 12(7), pp.1092-1106.
Guest, D.E., 2011. Human resource management and performance: still searching for some
answers. Human resource management journal, 21(1), pp.3-13.
Harris, L.C. and Ogbonna, E., 2001. Strategic human resource management, market
orientation, and organizational performance. Journal of business research, 51(2), pp.157-166.
Hendry, C., 2012. Human resource management. Routledge.
Huselid, M.A. and Becker, B.E., 2011. Bridging micro and macro domains: Workforce
differentiation and strategic human resource management.
Kang, S.C. and Snell, S.A., 2009. Intellectual capital architectures and ambidextrous
learning: a framework for human resource management. Journal of Management
Studies, 46(1), pp.65-92.
Khanka, S.S., 2007. Human resource management. S. Chand Publishing.
Knowles, M.S., Holton III, E.F. and Swanson, R.A., 2014. The adult learner: The definitive
classic in adult education and human resource development. Routledge.
Kotey, B. and Slade, P., 2005. Formal human resource management practices in small
growing firms. Journal of small business management, 43(1), pp.16-40.
Page 22 of 23