Employee Exit Process and Current Regulatory Framework

The report highlights the importance of Human Resource Management (HRM) in organizations to maximize skills and work performance of human assets, which further improves productivity. The report also discusses the two types of exit processes: voluntary and compulsory. Voluntary exits occur when employees decide to leave for better career opportunities, personal reasons, or monetary benefits provided by employers. Compulsory exits happen when individuals are forced to leave due to policy violations. The government has generated guidelines to protect employee interests and prevent wrongful cessation by employers. The Employment Tribunal resolves disputes between employees and employers.

HUMAN
RESOURCE
MANAGEMENT
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TABLE OF CONTENTS
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INTRODUCTION
Human resource management (HRM) can be refereed as management of human capital
available within the entity. The main objective of HRM practices is to make best use of available
efficient and skilled manpower. The HRM is a vital procedure that includes wide range of
functions like recruitment, selection of individuals, rendering them orientation, training and
development sessions, evaluating their performance and motivating them etc. HRM also ensure
the complaints of employees are resolved on time, their is proper communication between
management and individuals etc (Bennett and Ho, 2014). Thereafter, it assist in developing
skills and competencies of individuals which leads to their improved productivity and greater
profits to business.
The given study will analyse different aspects of HRM and different case studies will be
evaluated in order to attain clear and well defined understanding of the subject. The study will
reflect an effective analysis of HR practices which the business adopt in order to manage a well-
defined position within the market. Thereafter, stages in planning human resource requirement
will be outlined. Further, link between motivational theory and reward will be provided in the
context of Virgin Media. In addition to this aspect, methods used to monitor employee
performance will be detailed out. Thereafter, description regarding the employment exist process
will be provided with reference to provided case study of The Chicken Master.
TASK 1
1.1
Sainsbury is a retail organization in UK that provides effective customer services
through large number of chain stores, supermarkets etc. Another organization, Best One, is
a small sized retail organization in UK. To manage its human inventory, Best One is using
personnel management while Sainsbury is using HRM practices. The difference between
these two functions can be explained as follows:
Personnel management HRM
Personnel management can be defined as
management of individuals employed within a
entity.
HRM can be refereed as administration of
individuals competencies, knowledge and
capabilities.
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It treats workers as economic unit whose
render its services in exchange of remuneration
(Purce, 2014).
It regards employees as social, economic and
psychological person.
It consider employees as commodity, machine
and equipment that can be utilized and
purchased.
It consider employee as vital resources.
The individuals in personnel management are
used for yielding various benefits for business.
The employees are used for mutual advantages
of company, worker and its family.
It use indirect communication between
management and employee.
The HRM function strengthen the
communication between individual and
management by using more direct channels.
The major focus of management is on
monitoring the performance of employees.
The main consideration of management is on
nurturing the individual by meeting their needs
and assuring their overall development.
The personnel management is considered
autonomous from the corporation.
HRM is constituted as inbuilt component of a
organization (Jiang, Lepak,, Hu and Baer,
2012).
It uses external control system to regulate the
behavior of employees.
The employees are self manged and control by
themselves without any pressure.
1.2
The HRM function is beneficial in attaining the purpose of organization as it help in
developing a strong, skilled and competent human inventory that further support in attaining the
strategic goals of business. The major function of HRM in Sainsbury can be described as below,
 Recruitment and selection: It is vital process that assist business in encouraging and
selecting competent candidates for available job post. The recruitment process help in
determining the requirement of manpower in entity and stimulating the efficient
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individuals to apply for the job. The selection process also help in choosing the right
person for suited job post (Renwick, Redman and Maguire, 2013).
 Training and development: It is vital process that assist the Sainsbury in doing constant
up gradation in the skills and abilities of manpower so that they can match the
benchmarks of the retail industry. The training and development session also help in
assuring career development of individuals by providing them continuous learning
opportunities. This further help in improving the productivity of employees and reducing
the chances of mistakes from their side.
 Performance management: It is important process through which organization ensure
the work performed by individuals is in accordance with the framed policies and
procedures. This is important aspect that also help in ascertaining the training needs of
individual as per their performance. Therefore, performance management assist the
enterprise in bridging the difference between needed and existent skills of individual with
the help of suitable actions (Kehoe and Wright, 2013).
 Employee suggestion management: It is effective procedure within HRM that enable
Sainsbury to increase the involvement of employees in business. The management
encourage employees to give their creative suggestions, views and ideas in business
meetings, group discussion, interactive websites etc. which are further considered by top
executives while taking business decisions.
1.3
Line manager are those personnel that are directly entitled for managing the workforce or
team working within the entity. They further play a key role in human resource management.
They prepare report about the performance of employees and forward the same to higher level
authority. They further work as a bridge between management and employees (Alfes, Shantz,
Truss and Soane, 2013). Other than , there are large number of roles and responsibilities of line
manager which are explained as follow:
 Routine administration of human resources: The line manger is responsible for day to
day management of employees within the entity. Such as, if an individual is absent than
line manager, delegates its work to other individual at same level.
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 Checking quality: The line manager is responsible for checking the quality of work
performed by human resources against the pre determined criteria. If the quality of work
performed by individual is not appropriate than they are provided with required training
and skill development chances (Line manager. 2016).
 Providing technical expertise: The line manager have sound technical knowledge of
various functions performed within the organization. This knowledge is further shared by
him with other members so they can perform their work without facing much technical
difficulties.
 Dealing with discipline and grievances: It is another responsibility of line manger
which help him in resolving the conflict between management and employees within
proper time. With this aspect, chances of unionism, strike and lock out by employees are
reduced. Line manger conduct regular meetings with employees and identify issues faced
by them so that they can be resolved (Kehoe and Wright, 2013).
1.4
There is direct impact of legal and regulatory polices on the HRM functions performed
within the organization. There are various policies that are generated by government to protect
the interest of employees and prevent their exploitation within the corporation. The main
objectives of these policies is to assure that workers are not harassed emotionally, physically and
financially. The non compliance of the regulatory framework by the organization can lead to
legal consequences causing heavy penalty, proceedings and negative image in market (Alfes,
Shantz, Truss and Soane, 2013). The major laws generated by Government of UK in this respect
are explained as follows:
 Equality Act 2010: It is important act framed by the Parliament of the UK to promote
the well-being of individuals with the entity and protect their interest in organizations
where they are rendering services. According to this act, all the candidates having
potential, knowledge and experience as per the requirement of job post must be given job
opportunities (UK employment laws. 2016). This act provide employment rights to
individuals regardless of their sex, colour, belief, religion, physical disability, sexual
orientation etc.
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 Health and Safety Act 1974: It is important act that assure physical wellness of
individuals working within the entity. This act assure that organization take suitable
measures to prevent any kind of health related risk to employees. The major concern of
this act is to reduce risk exposure of employees. Therefore, enterprise must have safety
equipments fitted in premises, first aid facility etc. Also, disaster management drills must
be conducted so that employees have knowledge about how to safeguard themselves
during a calamity (UK employment laws. 2016).
 Minimum Wages Act 1998: It is vital act proposed by government that generate
minimum wage rate that must be considered by organization while providing wages and
salaries to human resources. The main concern of this act is to assure workers are not
exploited financially and they are paid properly for the services rendered by them. As per
this act, every individual in UK of age group 21 and above must get wages at least £6.70
per hour. While those employees between 18-20 age must get payment of at least £5.30
per hour (Lucio, 2013).
TASK 2
2.1
Human resource planning is vital process that assist in determining business aims and
objectives and aligning them with the efficiency manpower require to attain those objectives.
HRM planning work as connecting force between human resource administration and the
strategic objectives of business. It is continuous procedure of organized planning to assure proper
utilization of corporation key assets, human resources (Human resource management. 2016).
Therefore, HRM planning is done in organization for various reasons which are described as
follows:
 Identifying the need of employees: The human resource planning is important process
through which company assure it have proper resources so that various task can be
performed properly on time. With the help of manpower need identification process, the
organization can measure how many number and quality of manpower need to function
properly.
 Determining the skills: It is important stage of HRM planning through which
organization identify the skills and qualities they need in human resources so that goals of
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corporation can be attained. Thereafter, skills of employees are aligned with the
functions that are required to perform in entity.
 Identifying the demand: The HR planning also help in ascertaining the demand of
manpower within corporations arising due to retirement of employees or their voluntary
exit. On the basis of its planning is done to fill vacant post.
 Identifying the supply: It is important function that assure demand of manpower is
fulfilled through proper supply from varied sources. Therefore, supply of employees can
be obtained by draw in new talent through advertisement in newspaper, job sites etc.
Also, present employee can be promoted to higher job position to fill vacancy (Kehoe
and Wright, 2013).
 Matching the demand and supply: It is important step that help in filling the gap
between the requirement of workforce with availability of employee. With this aspect, the
entity avoid case of overemployment leading to extra cost for company and under
employment resulting into non completion of work on time.
 Employing the plan: It is last step that assure HR plan is practically implemented within
the company. For this aspect, organization use various functions like, recruitment,
selection, induction, performance appraisal etc.
2.3
To meet the need of manpower in company, different organization use contrasting
methods. The comparison of recruitment and selection procedure adopted by two entities is
described as follows
Black&White Blue&Brown
The selected company use external sources to
fill the gap between demand and supply of
human resources. Therefore, new talent is
attracted by entity through marketing in
newspapers, social media, job sites etc (Lucio,
2013).
The recruitment process of cited entity, is
based on utilization of internal sources.
Therefore, gap between required and actual
resources is filled through promotion, job
enrichment, transfer etc. Other than this, entity
ask present employees to advise their friends
and other close ones to apply for the job in
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organization.
The major concern of entity, is to provide job
opportunities to new and talented individuals.
The main objective of the aforementioned
procedure is to increase the confidence of
existing personnel by ensuring their
advancement in career.
The company is required to invest significant
amount on advertisement and inviting new
candidates in entity. It involves both cost and
time
The recruitment process of Blue&Brown
company involve less time and money as
internal candidates are provided opportunity
which save cost of marketing (Kehoe and
Wright, 2013). While new talent is introduce
from publicity using word of mouth which
again save expenditure.
To choose best candidate, organization take
help of screening process. This further includes
going through the curriculum vitae and cover
letter followed by final interview.
To choose best candidate, organization use
psychometric test.
The HR executive, select the suitable candidate
that cleared the interview test after doing
reference check (Alfes, Shantz, Truss and
Soane, 2013).
The entity skips the reference check process as
individuals are either from internal sources or
those suggested from current employees.
2.4
On the basis of elaborated examination of recruitment and selection process of the citied
entities, it has been identified there are significant benefits of recruitment and selection process.
With the aid of this process the gap between needed and present human capital can be filled so
that purpose of business can be met. It has been identified that the hiring process used by black
and white company involve viable cost. Therefore, organization should use methods that are less
costly like, advertisement on social media etc. Further, it can be stated that company will be able
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to introduce fresh talent into business which have improved knowledge about new technology,
market trends etc (Alfes, Shantz, Truss and Soane, 2013). On the other hand, recruitment
process of Blue&brown company help in saving the expenditure of company. The internal filling
used by entity like promotion will boost the morale of individuals and stimulate them to perform
better in future so as to attain higher rank in company. Further, blue&brown use psychometric
test which help in selecting candidates as per different criteria, like, aptitude, personality,
situational test etc. Therefore, candidate selected through this process is one having best skills.
However, the black and white company select candidate according to screening process which
may or may not reveal the contrasting skills present in the individual (Renwick, Redman and
Maguire, 2013.). Thereafter, it has been identified that, Black&White company use reference
check before selecting candidates which help in preventing wrongful selection of employee such
as one having criminal record etc.
TASK 3
3.1
It has been identified that reward system and motivational theory are linked with each
other. Furthermore, the motivational theories are those which are given by several theorist for the
purpose of motivating the individual (Lucio, 2013). These theories mainly talks about rewarding
the people against their contribution in the organizational success in order to motivate them.
Moreover, the theories like Maslow's Need Hierarchy theory in which there are 5 levels of needs
and those needs are satisfied one after the other at Virgin Media. Furthermore, those needs are
satisfied mainly be receiving rewards. The first three needs get satisfy with the monetary terms
and rest two that are high end needs are satisfied through non-monetary rewards. Thus, this
entire theory focuses on providing rewards in order to motivate the employees of the company
(Jiang, Lepak and Baer, 2012).
The other theory, Herzberg's two factor theory also focuses on the motivation of
employees using both kind of rewards that is monetary and non-monetary rewards. There are two
factors in this theory and one factor talks about monetary rewards and the other one talks about
non-monetary rewards (Bloom and Van Reenen, 2011). The motivators are those factors which
are intrinsic and that motivates senior management at Virgin Media. Whereas, hygienic factors
are extrinsic and mainly satisfy lower level employees. These are mainly monetary benefits and
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the later is non-monetary benefits given to satisfy high end needs. Thus, it can be inferred that
rewards and motivational theories are linked with each other.
3.2
Job evaluation can be defined as the systematic procedures that aid the company in
determining the pay for the job position. Therefore, through this evaluation process the manager
of Virgin Media can easily establish the pay structure of a vacant job so that management of job
and pay structure can be done in an effective manner (Guest, 2011). In the Virgin media, HR
manager follows several steps for identifying the job and its worth. For this aspects, manager
firstly research about the vacant job and many other job position in the company. After that job
description is made by them where the kind of job, kind of work to be carried out and several
duties are responsibilities are mentioned. After that, management determine the person required
to conduct the work, the qualification which he/she possess and many other skills and
competencies which are required to perform that job. Moreover, after determining the job
structure and person specification, the manager can identify its pay scale. This way job
evaluation process is followed in Virgin Media. This process of the firm is very effective because
it helps in identifying the worth of the job and this way right personnel can be recruited for
carrying out this job (Noe, 2010).
In addition to this, there are several other factors which determine the pay structure for
the particular job in this organization. These are size of the organization, core competencies,
economic condition, etc. These factors plays an essential role in the identification of pay
structure of jobs at Virgin Media (Snell, Morris and Bohlander, 2015).
3.3
There are several rewards system which have been adopted by the Virgin Media in order
to give reward to their employees in return of the effective services rendered by them. Along
with that, the effective reward system has been employed their so that company can attract large
pool of talented and caliber candidates in the firm. Moreover, the company uses financial v non-
financial reward system (Human resource management, 2016). This system is highly effective
because this way company can satisfy all the levels of employees that is senior level as well as
operational level. The financial rewards help in gaining the insight about the employee need and
also this enhances healthy competition between the workforce which help in enhancing their
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performance. However, it is uncertain that when this kind of incentive become a demotivating
factor. Furthermore, the company also provides non-financial rewards to the people of Virgin
Media. This kind of reward have helped in motivating the senior management. However, the
company provides such rewards only to senior people which becomes a demotivating factor for
operational employees because sometime they also require such rewards which may motivate
them to improve their performance (Jiang, Lepak and Baer, 2012).
3.4
Virgin Media use the mixture of traditional as well as modern methods for monitoring the
performance of their employees. As it is known that there are several methods for monitoring the
performance of staff members out of which two methods used by Virgin Media is described as
follows: 360 Degree Feedback: Under this method, HR manager appraise the performance of the
employees from every aspect. Hence, the name describe that from 360 degree angle, the
employee's performance is judged (Guest, 2011). The manager take feedback about the
individual from peer groups, co-workers, stakeholders, customers or clients, supervisor,
subordinate, etc. This way actual and clear information about the working of a person
could be known and this way company can identify the capabilities of the person.
 Rating Scale Method: This method is a traditional one and in this company judge the
performance or behavior of a person using 10 point rating scale. On several parameters,
manager judge the performance of the individual (Noe, 2010).
TASK 4
4.1
From the provided case study of Chicken Master, it has been identified that Bob was
terminated from job for not completing its work obligation, violating business policies and
ineffective performance (Renwick, Redman and Maguire, 2013.). Further, Bob was watching
pornography, using office property for personal use and was doing private work at job.
Therefore, the individual can be seized from its job duties for various reasons listed below:
 Poor performance: The non completion of duties on time or poor quality of work can
be main reason for employee cessation.
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 Damaging the property of organization: The intentional damages caused to the
property of business resulting into severe losses is reason for employee cessation.
 Unethical practices: The immoral activities done on the part of employee is valid reason
for which it can be seized to work. Such as, stealing the property of company, selling the
private and important data to rival etc(Snell, Morris and Bohlander, 2015).
4.2
There are two type of exist process that can be used by organization, voluntary and
compulsory. In voluntary process, employee himself decide to leave the entity for the sake of
better career opportunity, personal reason or monetary benefits provided by employer. On the
contrast, in compulsory process, individuals are forced to leave the corporation for violating the
policies of organization. For instance, in the Chicken Master company, Bob is forced to leave the
entity (Noe, 2010). Therefore, different entities use contrasting ways for employee exist process
like, Burger King conducts interview before employee leave the organization. This help in
identifying the reason for departure, experience of individual within entity etc. On the basis of it,
proper steps can be taken by individual to retain other employees in future. Such as, individual
leaving entity due to poor rewards system therefore, company can introduce monetary and non
monetary rewards to retain potential candidates in future.
4.3 Impact of current regulatory and legal framework on employee cessation
The government of UK have generated various guidelines to protect the interest of
employees and prevent them from wrong or biased cessation by employer. The Employment
Tribunal is one such regulatory body that resolves the disputes between employee and employer.
In case of wrongful dismissal or discrimination by employer than aggrieved individual can seek
support from this body. This body further the allegation of both the parties and give judgement
which must be followed and accepted by parties (Guest, 2011). It further impose penalties and
legal proceedings against the liable person. Therefore, it is important to follow the guidelines laid
down by government regarding employee cessation.
CONCLUSION
Summing up the entire report, it can be concluded that HRM is formal means used by
organizations to maximize skills and work performance of its human assets which further assist
in improving their productivity within the entity. The major significance of HRM function is that,
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it help in attracting and retaining talented workforce that further help company in attaining
strategic goals of business.
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