Employee Motivation and Retention Strategies

This assignment requires a critical analysis of various employee motivation theories and their practical implementation within Tesco's human resource management strategies. Students must examine how these theories influence employee behavior, job satisfaction, and ultimately, retention within the context of the retail industry. The analysis should also consider factors contributing to employee turnover in the sector and propose strategies for enhancing employee motivation and retention at Tesco.

HUMAN RESOURCE MANAGEMENT
STUDENT’S NAME:
STUDENT’S ID:
PROFESSOR’S NAME:
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Table of contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
LO1 Describing the difference between human resource management and personnel management
in Posh Nosh organisation...............................................................................................................3
Analysing the difference between human resource management and personnel management and
identifying the better option approach (AC 1.1)..............................................................................3
Evaluating human resource management’s function in contributing purposes of organisation (AC
1.2)...................................................................................................................................................5
Understanding line managers’ roles and responsibilities in human resource management keeping
in mind the industry norms and size of business (AC 1.3)..............................................................6
Describing the effect of legal framework on the organisation’s human resource management (AC
1.4)...................................................................................................................................................7
Task 2...............................................................................................................................................8
LO 2 Analysing the methods of recruiting employees in Posh Nosh organisation.........................8
Describing human resource planning’s reasons and its importance (AC 2.1).................................8
Understanding various stages of HR planning requirements (AC 2.2)...........................................8
Comparing procedure of selection and recruitment of Posh Nosh and Tesco (AC 2.3).................9
Analysing selection and recruitment techniques’ effectiveness of Posh Nosh and Tesco (AC 2.4)
.........................................................................................................................................................9
Task 3.............................................................................................................................................11
LO3 Evaluating techniques of rewarding employees for employee retention and motivation in
Posh Nosh organisation.................................................................................................................11
Understanding the connection between reward systems and motivational theory and providing
recommendation to enhance motivation of employees (AC 3.1)..................................................11
Analysing the elements of job evaluation procedure and other elements that determine salary
(AC 3.2).........................................................................................................................................12
Evaluating importance of reward systems in various contexts of the organisation (AC 3.3).......12
Evaluating methods of monitoring performance of employees (AC 3.4).....................................13
Task 4.............................................................................................................................................13
LO 4 the mechanisms of the employee cessation in organisations...............................................13
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Identifying the reason for the termination of employment (AC 4.1).............................................13
Different exit procedures followed by Posh Nosh and Tesco (AC 4.2)........................................15
Regulatory and legal framework has an impact on employee cessation arrangements (AC 4.3)..16
Conclusion.....................................................................................................................................16
Bibliography..................................................................................................................................18
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Introduction
Human resource management is a significant department of an organisation. Without good
human resource professionals, an organisation will not be able to develop properly and maintain
a good reputation in the market. Human resource management is focused on managing
employees and it is devised to enhance the performance of employees. The aim of the
assignment is to understand various aspects of human resource management. An organisation,
Posh Nosh is given for doing the assignment. In task 1, the differences between human resource
management and personnel management are discussed and in task 2, employee recruitment
procedures are analysed. In task 3, techniques of employee retention and motivation are
understood and in task 4, employee cessation mechanism is analysed.
Task 1
LO1 Describing the difference between human resource management and
personnel management in Posh Nosh organisation
Analysing the difference between human resource management and personnel
management and identifying the better option approach (AC 1.1)
Employees are the most important factor for an organisation. The development and success are
dependent on an organisation’s employees. Both human resource management and personnel
management handle human aspects of a company. That is why; some people believe personnel
management and human resource management are same which is a false assumption. There are
several differences between personnel management and human resource management.
1. Human resource management is considered modern approach of managing employees
whereas personnel management is considered traditional approach of management.
2. Human resource management concentrates on motivation, development and maintenance
of employees. On the other hand, personnel management concentrates on labour relation,
employee welfare and personnel welfare.
3. In case of human management, employees are given proper development opportunities
and training. As far as personnel management, employees are provided lesser amount of
training and opportunities for growth.
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4. In case of human resource management, employees are motivated to participate in giving
creative ideas and making decisions. On the other hand, in case of personnel
management, top management of the organisation make all the decisions as per the rules.
5. Human resource management focuses on all types of managers of the organisation. In
personnel management, personnel management concentrates only on personnel manager.
6. Human resource management concentrates on productivity, participation of employees,
work culture and effectiveness. Personnel management gives importance on satisfaction
and increased production.
7. In case of human resource management, the procedure of decision-making is fast due of
direct communication and in personnel management, the process of decision making
slower because of indirect communication (Klingner et al. 2015, p.26).
8. In case of human resource management, the creation of job design is based on teamwork
and in case of personnel management, job design is based on work division.
9. In Human resource management, pay or salary of employees is based on performance and
in case of personnel management, the basis of salary or pay is job evaluation.
10. In Human resource management, employees are treated as valued assets of the
organisation and in case of personnel management; employees are treated as machines of
tools of the organisation.
HRM Personnel management
Time Long term Short term
Planning Proactive Reactive
Psychological contract Commitment Compliance
Control system Self-control External
Employee relations Unitarist Pluralist
Structures Organic Bureaucratic
Roles Integrated
management
specialist
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Table 1: Difference between HRM and Personnel management
For Posh Nosh Organisation, human resource management is more suitable and it is a better of
management approach than personnel management. In today’s world, HRM is preferred by many
organisations over personnel management. As Posh Nosh is a new organisation that does not
have HRM, they should take HRM as it helps in hiring new employees with having employment
law in an organisation. The organisation can have employee files with manuals.
Evaluating human resource management’s function in contributing purposes
of organisation (AC 1.2)
HRM is procedure of managing employees in a company in order to maximise the productivity
of employees and achieve goals of that company. An HRM performs several duties and
responsibilities in Posh Nosh organisation. Those responsibilities include determining
employees' needs, recruiting and providing training to talented and efficient employees,
supervising employees, managing relations with employees, creating policies and employee
records, dealing with discrimination and performance issues in the workplace, managing issues
of employees’ compensation and benefits.
Recruitment of employees:
The department of HRM in Posh Nosh organisation concentrates on recruiting right type of
employees in the organisation. Human resource professionals make sure of the fact that they
recruit talented, skilled and efficient employees in the workplace (Brewster et al. 2016, p.36). If
a person has adequate knowledge and experience, that person will be able to contribute to growth
of the organisation.
Development of employees:
The main purpose of this HRM function is enhancing the productivity of Posh Nosh organisation
by utilising employees' skills and knowledge. It is very important for the organisation to ensure
that employees have required skills and talent for their jobs. Human resource professionals must
proper them proper guidance and training so that they can perform their duties and
responsibilities effectively.
Compensation:
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In Posh Nosh organisation, fair salary is given to employees, so that they do not leave the
organisation and join any other company. If good salary package is provided to employees, it
will create a good impression of that organisation in the minds of people and it will attract more
employees. To retain employees, HR professionals ensure them that they will get benefits and
bonus based on their performance (Sparrow et al. 2016, p.25). This method of providing benefits
makes sure they remain committed towards their jobs and perform their duties efficiently.
Maintenance of employees:
It is very important for HR professionals to make sure employees’ physical and mental health is
properly maintained. They need to motivate employees properly and review their works to make
their performance better.
Understanding line managers’ roles and responsibilities in human resource
management keeping in mind the industry norms and size of business (AC
1.3)
Line managers do have the duty of running an organisation’s business operations. In Posh Nosh
organisation, line managers do have responsibilities of achieving goals and objectives of the
organisation by performing functions such as decision-making, target setting and policy making
(Purce, 2014, p.47). They do have duties of managing resources and employees in meeting
objectives and goals of Posh Nosh organisation.
Roles of line managers:
Line managers perform four types of roles in Posh Nosh organisation.
Implementing policies:
Line managers implement HR policies such as providing rewards and performance appraisal to
employees to maintain employee retention.
Enacting policies:
Line managers do perform HR policies effectively in Posh Nosh organisation.
Leading employees:
Line managers use their interpersonal skills to influence employees of Posh Nosh organisation.
Controlling employees:
Line managers can also control the behaviours and attitudes of employees.
Responsibilities of line managers:
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● Line managers recruit efficient and talented employees in the workplace.
● They provide training to new employees who join the company.
● They make sure every employee performs duties and responsibilities efficiently.
● They also protect physical and health condition of employees.
● Line managers develop positive work relationships with employees.
Describing the effect of legal framework on the organisation’s human
resource management (AC 1.4)
The legal framework of HRM differs from one country to another country. HRM should always
follow certain laws of a country when an organisation is created. Some laws, rules and
regulations of the UK determine HR functions of Posh Nosh organisation. If the company does
not obey the laws, it will create a serious problem for it. Therefore, Posh Nosh organisation
needs to be aware of the legal framework of the UK, so that business operations run smoothly.
Factories Act 1833:
The act ensures safety, health measures and welfare are provided to the employees in an
organisation. Althorp's Act can be taken into consideration with this as children under age of 9
cannot be employed and persons under age of 18 could not work in night shifts (Johnstone, 2016,
p.62).
Trade Disputes Act 1906:
The main of this act to maintain positive relationships between employees and employer and
resolve any problem that is occurred at the time of interaction of both the parties. This act talks
about that while a strike is going Unions cannot be sued for damages.
Employment Rights Act 1996:
The act makes sure proper salary is provided to employees and it prevents inappropriate
deductions. In part one, it is written that employer must provide employment particulars in first
two months. This act talks about also dismissal, unfair dismissal and redundancy payments.
ICESCR 1981:
The act gives proper health care to children and women when female employees cannot work
because of their condition of health.
Public Contracts Regulation 2015:
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The purpose of the act is to enhance skills of employees with the help of practical and theoretical
training and guidance.
Task 2
LO 2 Analysing the methods of recruiting employees in Posh Nosh
organisation
Describing human resource planning’s reasons and its importance (AC 2.1)
The planning of HR management is a process that helps an organisation in recruiting efficient
and talented employees at correct time and place in an organisation and achieves objectives for
that organisation’s development. Posh Nosh organisation is a small fast food company of the UK
that have 10 outlets in London and it gives facilities of takeaway food products at home and
catering services. As the first HR manager, I need to be very careful at the time of planning
human resource management. Proper planning of HR management is very important for a
company as it contributes to the growth of that company. However, it is not difficult to manage
all the work of HR department as the company is small is size.
HR planning makes sure expectations of employees are met and they are provided proper
development opportunities. It helps in achieving organisation’s productivity as the main purpose
of HR planning is to keep employees engaged and satisfied (Gharibi Yamchi et al. 2016, p.41).
HR planning also ensures employees are given good salary package, benefits, perks and bonus so
that they remain loyal to Posh Nosh organisation. The aim purpose of HR planning is to get an
idea of a number of employees, their skills, developing the methods of using available resources
and creating methods of employee maintenance.
Understanding various stages of HR planning requirements (AC 2.2)
Various stages are involved in the procedure of requirements of HR planning.
HR assessment:
At first, it is important to analyse HR requirements of Posh Nosh organisation by evaluating
efficiency and potential level of all of the resources. It will give HR management sufficient
information so that employees can perform their duties more effectively and appropriately.
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Demand forecasting:
In this step, the HR manager needs to evaluate demand of requirements of resources in the
organisation. If the organisation needs new resources for training, market advancement and
experience, arrangements should be made (Taylor, 2014, p.140).
Supply forecasting:
The HR manager also must analyse the supply of resources requirement. Sometimes, Posh Nosh
organisation may face difficult time when the company have certain requirements. However,
resources are not available in the market. At that time, it is important to analyse requirements of
market and meet the needs of that organisation.
Action plan:
Finally, the HR manager must execute an appropriate action plan, to that all the resources can be
used efficiently and effectively. It will help the procedure become dynamic and resources help
the organisation in running business operations smoothly and properly.
Comparing procedure of selection and recruitment of Posh Nosh and Tesco
(AC 2.3)
In Posh Nosh organisation, they should have immature procedure of recruitment and selection.
Even though it is a small organisation, it is progressive and dynamic. For the recruitment
procedure, at screening of employees is done and then personal interviews are taken. However,
the direct selection procedure of is not effective and it is considered dull. Various types of
business development training are given to employees. Even though these trainings are effective
and suitable for employees, employee development training is required (Rudolph et al. 2017,
p.617).
In Tesco, they process of HR recruitment and selection is highly systematic. A proper procedure
of screening, written test and personal interview of employees are maintained in the company. In
Tesco, new hire and pre-hire orientations are given to employees. In this company, several pieces
of training of both employee development and business development are provided to employees
that make them more efficient (Tesco.com, 2017).
Analysing selection and recruitment techniques’ effectiveness of Posh Nosh
and Tesco (AC 2.4)
Posh Nosh organisation:
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Posh Nosh organisation's selection and recruitment procedure are immature. The organisation
should work on its aspects of HR planning that will make Posh Nosh organisation more efficient.
Recruitment:
In Posh Nosh organisation, HR managers recruit by screening and at the time of screening, they
eliminate many employees. Therefore, only best resources remain available for the organisation.
After the stage of screening, HR managers take personal interviews that help in finding out right
candidates for the company.
Selection:
The direct selection procedure of Posh Nosh organisation is void and dull. They must introduce
stages of new hire and pre-hire orientation. The techniques will help employees become familiar
with the procedure (Karimi et al. 2015, p.36).
Training:
In the organisation, HR managers give good training of business development to employees.
However, this scope can become better if training of employee development is provided to them.
Tesco:
Tesco is a very popular grocery retail organisation of the UK. Therefore, the procedure of
selection and recruitment is highly organised and dynamic.
Recruitment:
The procedure of recruitment in Tesco is disciplined and systematic. Their recruitment process is
much better than Posh Nosh organisation. At first, they take written and aptitude tests for
recruitment in the company. Then they do screening of employees and take personal interviews.
Selection:
The company give post hire and pre-hire orientations that are important for this procedure.
Training:
Tesco provides both business development and employee development training to employees
that help them in understanding their duties and responsibilities.
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Task 3
LO3 Evaluating techniques of rewarding employees for employee retention
and motivation in Posh Nosh organisation
Understanding the connection between reward systems and motivational
theory and providing recommendation to enhance motivation of employees
(AC 3.1)
In the workplace, employees are motivated in order to behave or act appropriate manner.
Motivation directs employees to perform their duties and responsibilities in such a way that the
organisation receives desired results. Reward system is a type of system that refers to creation
and implementation of several policies and strategies to give employees reward inconsistent and
equal manner as per the organisation's value. Reward system and motivation are intertwined in
Posh Nosh organisation to satisfy the requirement of employees. As motivation is a very
important aspect of an organisation, Posh Nosh organisation uses Maslow's hierarchy of needs in
order to motivate employees of the organisation. According to Maslow theory, esteem, love,
safety, psychology and self-actualisation are the motivation that must be provided to the
employees. The company analyses the requirements of employees and strive to fulfil them. The
company provides sufficient amount of salaries, benefits, bonus and perks to employees. As
stated by Khera and Gulati, (2015, p.323), good work environment and safety are also provided
to employees. They are also given proper opportunities for development or growth. Positive
relationships are also developed between all the employees in the workplace. They also get
respect from their co-workers and employers.
Posh Nosh organisation should take certain steps in order to motivate employees more
effectively. The company must take care of the fact employees can maintain proper balance of
work and life. Therefore, duty hours should be reduced, so that they get adequate time for
spending their time with families, friends, sleeping and doing some other duties. They should
also be given facilities of medical leave, paternal and maternal leave.
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Analysing the elements of job evaluation procedure and other elements that
determine salary (AC 3.2)
There are various methods or techniques available required for job evaluation.
Ranking:
In case of this method, Jobs do get ranked as per their comparison or worth. This method is
simple, inexpensive and effective in Posh Nosh organisation.
Classification:
The method is also easy and simple. In case of this method, these types of job descriptions are
compared with grades that already have been listed by the organisation (Lăzăroiu, 2015, p.100).
Point factor:
In case of this method, certain factors or elements get reduced to some sub-factors and every
factor gets points and weights. All of these points get used for determination of grades.
Elements or factors that determine salary:
● Senior and experienced employees get higher salaries than freshers.
● The employees who give better performances are provided better salaries.
● Experiences or years of working determine the salary of an employee's and education is
another factor.
● Performance review of an employee can bring them better salary.
Evaluating importance of reward systems in various contexts of the
organisation (AC 3.3)
Reward system ensures motivation and satisfaction of employees. Employees perform their-their
duties and responsibilities effectively and contribute to the organisation because of this reward
system. There are two kinds of reward systems in Posh Nosh organisation and they are called
intrinsic reward and extrinsic reward. With the help of reward system, the organisation
successfully motivates their employees and helps in developing the organisation. Posh Nosh
organisation’s reward system also attracts new and talented employees in their organisation. The
company give employees equal opportunities and decrease the rate of employee turnover.
Intrinsic reward:
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Intrinsic reward refers some non-monetary rewards that are provided to employees to inspire
them (Lau and Roopnarain, 2014, p.230). This type of reward includes appreciation and
recognition of employees in the workplace.
Extrinsic reward:
Extrinsic reward refers to monetary rewards and these rewards include gifts, vouchers, bonuses,
coupons and commissions.
Evaluating methods of monitoring performance of employees (AC 3.4)
Posh Nosh is a fast food organisation that works in various outlets and employees of the
organisation is mainly works in shifts. The organisation has set of employee performance in their
organisation and they measure the employee's performance based on their work quality. They
assign some specific works to the employees and the management measure their work
performance based on their work finish on time. The management measure if the employees take
some extra effort in finishing the work on time (Khera and Gulati, 2015, p.225). In fast food
organisation, customer satisfaction is needed. The management takes the feedback from the team
members if the employees are working well or not. The skill of the employees is one of the most
important evaluations that the organisation can adopt as measure of performance appraisal. Posh
Nosh management checks the punctuality of the employees, otherwise, the management finds it
as an issue of the employee performance in meeting the objectives of the organisation. In
addition, the organisation checks the attitude of the employees’ during the phase when they are
allocated a job according to organisational policy. In a fast food organisation, it is very important
that employees’ must follow the hygiene rules and best personal habits. Employees’ gossip,
disruptive behaviour and breaks are taken into consideration in measuring performance of
employees'.
Task 4
LO 4 the mechanisms of the employee cessation in organisations
Identifying the reason for the termination of employment (AC 4.1)
Several factors are involved in which an employee is forced to retreat from their job. An
employee spends a significant proportion of their life working under an organisation. There are
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many factors which catalyse the thought of termination but the major are as follows. As it is an
SME
Layoff:
If the organisation fails to provide works to the employees, the organisation has to make stop the
employees from working. This process falls under regulation of the organisation. The firm can
give them notice before layoff.
Relationship with management:
The sole biggest reason of quitting the job is a bad boss or bad relation with the boss. The is an
integral part in the life of an employee. If the boss fails to support the basic need of an employee,
fails to communicate with the subordinates, unable to make them motivated, constantly criticizes
and never appreciates the employee their enthusiasm will hit the ground and their relation will
become toxic which might force the employee quit the job (Pace et al. 2017, p.65)
Boredom or lack of passion:
Another reason can be the boredom, which kills the passion of the employee to continue with the
job. If the organisation serves monotonous job to the employee on a daily basis, it can be good
cause, which might trigger the thought of quitting the job.
Communication with fellow employees:
The co-workers play an important role in the life of an employee. A bad relation with co-worker
is as bad or some time even worse than a bad boss. The loneliness and the feeling of rejection by
the co-workers can wreck havoc on the employee.
Future scope and job stability:
The employee searches their future, stability and job security in an organisation. If the company
fails to deliver all of these attributes, the employee will not waste their time in the company.
Organisation culture and poor performance:
Other factors include bad corporate culture, little to no independence poor financial structure of
the organisation are few of many factors which can lead to the termination of employees. The
employees may feel that they cannot cope with this job as they lack the performance.
An employee has a lot of expectation from their organisation. The organisation should visualise
their employee as a human and not some kind of machine. It is also needed that the organisation,
Posh Nosh should try to reduce employee turnover (Hepple, 2014, p.48)
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1. The organisation should set some specific goals for their employee and warm reward should
be provided to them after achieving them. The company should always provide new ways
through which employee can challenge their limits and would be able to grow.
2. If the organisation can set up the challenge for the employees, it can reduce boredom to great
extent, which would enhance the creativity of the employees. The management of the
organisation can set the employees to have specific goals with reward system.
3. The most important part is that if the organisation satisfy the employee and gives them enough
freedom to balance work and their personal life employee turnover can be avoided to a great
extent. The management can instil the employees for innovation at work.
Different exit procedures followed by Posh Nosh and Tesco (AC 4.2)
The sole purpose of an exit procedure is done when an employee either quits or is retiring from
the job. It should be a transparent one because it affects the reputation of the company to some
extent.
Employee exit procedures of Posh Nosh:
First of all the employee should give a resigning letter to their superior and must serve a the
company with their normal responsibility. This is known as the notice period. Then comes the
procedure of exit interview. By conducting an exit interview, the company gets a good feedback
from the employee, which reduce employee turnover to great extent. The final step of exit
procedure is termed as exit checklist, which is as follows;
● The employee should inform their co-workers that they are resigning.
● Exit interviews are necessary where; the employees have to say why they are leaving the
organisation. In addition, they can add their views about the development of organisation.
● The employee should hand over all the property of company, which the employee was
using.
● If the employee was using the phone number, which was provided by the company, then
it is the duty of the employee to make sure it is reconciled (Katsikea et al. 2015, p.370)
● Managers can provide reference requests if the employees wish to get new positions
● Review. In this process, the management checks the exit policy of the organisation.
Employee exit procedures of Tesco:
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In Tesco, the employees are fired based on their performance and behaviour with superiors and
co-workers. Tesco conducts exit interview with the employee, checks the level of stress the
employee had while serving in the company, gives them their required documents and reference
letter, which they can show in their next job. Management asks the employees about the reason
of leaving with checking the stress at work. The management clears the due salary of the
employees. The employees have to return all the properties that they have with them of Tesco.
Tesco provides the retaining options to the employees with giving better compensation and leave
options.
Usefulness of exit interviews
An exit interview can be a great tool to improve overall work culture of an organisation but it is
overlooked largely. By conducting this process the company gets a clear view of what an
employee actually assumes about the job. This will help the company to monitor and identify
why their employees are quitting their job.
Regulatory and legal framework has an impact on employee cessation
arrangements (AC 4.3)
The legal framework was introduced to provide the job security for the employees. It was created
for the purpose to avoid any sort of harassment faced by the employees at the workplace. It
clearly stated that the if an employee was to terminate from the job it had then there should be
proper reason behind the cause and not based on language religion sexual preference gender or
on the basis of ethnicity. The legal framework also states that an employee cannot be terminated
on the basis of physical disability as well. The legal framework gave the power to the employee
to take the legal step against their employer if they were sacked without any proper reason. The
employee is the biggest asset of an organisation (Larkin et al. 2016, p.38). This legal framework
was created to use these assets to its full potential and to give them safe environment to work and
secure the future for themselves.
Conclusion
The process in an organisation of human resource management is important as it is related to
360-degree evaluation of employees. Posh Nosh is a small enterprise having ten outlets in
London. However, they need to implement HR management as it helps in selection, recruitment,
leadership, management, motivating the employees and exit procedures of the employees.
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However, Line manager’s responsibilities are important in an organisation as it is related to the
HR executives and HR should follow the regulations and legal frameworks. Posh Nosh needs to
have HR planning first and requirements have been evaluated. Moreover, the organisation needs
to motivate the employees to retain more and reduce the employee’s turnover. In success and
growth of Posh Nosh organisation, the HR management would play vital part.
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