Strategic Human Resource Management

This assignment delves into the crucial relationship between strategic human resource management (SHRM) and employee engagement. It examines various SHRM concepts, including talent acquisition, performance management, and reward systems, analyzing their impact on employee motivation and organizational success. The assignment also explores quantitative models used in performance evaluation and benchmarking, highlighting the importance of data-driven decision-making in HR. Drawing upon academic literature and real-world examples, this document provides a comprehensive understanding of how SHRM can effectively foster a highly engaged workforce.

HUMAN
RESOURCE
MANAGEMENT
1

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
1.2 Assessing how human resource management function assist company in attaining its
purpose.........................................................................................................................................4
1.3 Evaluating the roles and responsibilities of line manager in HRM ......................................5
1.4 Analysing how legal and regulatory framework impact the human resource management
practices of cited firm. ................................................................................................................5
TASK 2............................................................................................................................................6
2.1 Analysing the reasons for human resource planning ............................................................6
2.2 Outline the stages of HR planning.........................................................................................7
2.3 Comparing the recruitment and selection process of Posh Nosh Ltd to Tesco PLC............8
2.4 Evaluating the effectiveness of the recruitment and selection techniques in two company..8
TASK 3 ...........................................................................................................................................9
3.1 Link between motivation theory and reward.........................................................................9
3.2 Process of job evaluation and other factors determining pay..............................................10
3.3 Effectiveness of reward system In Posh Nosh Limited.......................................................10
3.4 List of various methods used by cited firm to monitor employee performance .................10
TASK 4..........................................................................................................................................10
4.1 Identifying the circumstances for cessation of employment in Posh Nosh Ltd...................10
4.2 Describing the exit process used within cited firm and Tesco.............................................11
4.3 The impact of regulatory frameworks on employee cessation arrangements......................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
2

INTRODUCTION
Human resource management (HRM) can be defined as a formal method that is used
within enterprises to manage human inventory as well as their skills, knowledge and capabilities
so as to ensure continuous increase in the performance of business. The main goal of HRM is to
enhance the performance of workforce so as to facilitate attainment of organizational goals. It
further helps in improving the efficiency of employees and their productivity so that they can
become more vital asset for business (Boxall and Purcell, 2011). In this report, various aspects of
human resource management will be studied in context of Posh Nosh Limited. It is a London
based food retail store that provides dine in, catering and takeaway services to the range of
customers through its ten outlets. In this report, learning will be shown regarding the function of
HRM in contributing to organizational purpose. Link between motivational theory and reward
system will be explained. Further, impact of legal and regulatory framework on employee
cessation arrangements will also be analysed.
TASK 1
1.1 Difference between personnel and human resource management
In order to manage the human inventory, organizations can consider both the traditional
as well as modern method (Dowling, 2008). In this respect, personnel and human resource
management practices can be considered by entities. However, there are many differences in
both the approaches and these are listed as follows:
Personnel Management Human Resource Management
It is the traditional method of managing
employees within the entity.
It is the modern way of administrating human
resources along with their efficiency, skills and
knowledge.
It emphasizes on the management of
employees, ensuring their welfare and
maintaining labor relation (Lengnick-Hall and
et.al., 2009).
HRM emphasizes on nurturing employee
along with ensuring their motivation,
development and engagement.
Here, employees are considered as machines
and tools of generating business.
Here, personnel are treated as valuable assets
which must be developed and retained for long
3

term success (Schuler and Jackson,, 2008).
There is low level of interaction between
management and employees,
HRM practices ensure direct communication
between both the parties.
Here, management plays transactional role. Management adopt transformational role.
Manpower is solely used for the benefit of
organization.
Employees are used for attaining mutual
advantages.
It is a cost centered approach where concern of
management is related to reduce expenditure
incurred on manpower (Guest, 2011).
It is a profit centered approach which considers
investment on employees for gaining future
benefits.
It is considered separately from the
organization.
HRM is regarded as an inbuilt part of the
company.
Considering the above differences, it will be viable for HR consultant to suggest Human
resource management for the client company. It is the better approach as it helps in building
strong and competent human inventory and using the same for organizational success.
1.2 Assessing how human resource management function assist in attaining company’s purpose
The purpose of Posh Nosh Ltd. is to become a leading food retailer of London and build
strong loyalty among its customers (MacLeod and Clarke, 2009). Here, employees will play an
important role as they will furnish the best quality services to the buyers and perform several
tasks that will help company in attaining its objectives. In this respect, there are many functions
that are performed by HRM which are listed as follows:
 Recruitment and Selection: It is an important approach that helps company in searching
the competent candidates for employment and encouraging them to apply for vacant job.
Selection process includes a range of procedures through which individuals are screened
for the purpose of selecting the best candidate for the vacant job position (Avey and et.al,
2011)
 Training and development: It is an effective process that will help Posh Nosh Ltd in
improving the efficiency of its employees by providing them various trainings. It further
4

aids employees in performing assigned task in the best manner and thus, it improves their
overall productivity. It also provides professional development opportunity to the
employees.
 Compensation and benefit: It is an important approach of HRM which ensures that
employee must get adequate compensation in case of voluntary retirement, for
performing certain job etc. This HR function enables company to set compensation
structure and evaluate competitive pay (Markos and Sridevi, 2010).
 Performance Management: With this procedure, the management ensure that
performance of employees is in conformity with set organizational policies and
procedures. With this aspect, management ensure that employee performance must meet
the benchmark set by the entity.
 Labour Relation: It is a vital function performed by HR manager which enables to
maintain sound relation between trade union and management (Lepper and Greene,
2015). With this aspect, negotiations are done between union and executives regarding
present wage rate, working conditions and to resolve disputes as well as other grievances.
1.3 Evaluating the roles and responsibilities of line manager in HRM
Line manager plays a dominant role in the working of Posh Nosh Ltd. They are the
executives who are directly accountable for administrating various personnel and teams within
company (Dörnyei and Ushioda, 2013). They further perform various functions that facilitate
organization in attaining its key objectives. Therefore, different roles and responsibilities of line
manager are detailed as follows:
 Employee engagement: Line managers are responsible for supervising employees. They
ensure proper involvement of employees in business decision with the help of various
practices like, open communication, one to one meetings etc.
 Performance Appraisal: Line manager has an important role in implementing the
performance appraisal process. They further evaluate the performance as well as conduct
of employees within the organization and provide them unbiased ratings on the basis of
which their performance is appraised (Lepper and Greene, 2015).
5

 Disciplining employees: Line manager ensures that performance of employees meets the
expectation of company in terms of set policies and procedures. It further takes actions
against the members that violate the set rules and regulations of Posh Nosh Ltd.
1.4 Analysing how legal and regulatory framework impact the human resource management
practices of cited firm
There are various employment related regulations laid down by government in favour of
working individuals. These must be strictly followed by company to prevent legal actions and
punishments. The main aim of these policies is to safeguard the interest of individuals working
in various companies (Zhu, 2014). Some of the regulations that directly affect the HRM
practices of Posh Nosh Ltd are as follows:.
 Health and Safety Act 1974: It is important act that compel organizations to take due
care and consideration on the protection of health of individuals working in their
company. The main aim of this act is safeguard the health of employees by taking
effective steps to reduce their risk exposure at workplace. Therefore, manpower working
in Posh Nosh must be kept secured from the reach of dangerous substance, inflammables,
harmful gases etc (Employement Law, 2015). in addition to this aspect, safety devices,
first aid facility must be available within company.
 Equality Act 2010: It is important act t hat ensure equal employment opportunities must
be provided to all the candidates having required employability skills and knowledge.
The main purpose of this act is to discourage discrimination by employer on the basis of
factors like, caste, creed, religion, sexual orientation, gender, disability and colour etc.
therefore, while recruiting and selecting new candidates Equality Act must be strictly
followed to avoid legal consequences (Abdullah, Ahsan and Alam, 2009).
TASK 2
2.1 Analysing the reasons for human resource planning
Human resource planning is important way through which management of Posh Nosh Ltd
assure it have adequate availability of human resources to carry out business functions smoothly.
It further help company in managing the need of present as well as future need of human
inventory (Kerzner, H.R., 2013). Other than this, HR planning ensure that organization have
6

appropriate number of employees are present at suitable time and location. The other reason for
HR planning are explained as follows:
 Adjusting demand and supply: The proper HR planning help organization in adjusting
the need of manpower by ensuring proper supply so that work of the organization is not
hampered. HR planning help executive in filling the vacant job post in right time due to
retirement, dismissal, transfer etc. Therefore, productivity is not lost by maintaining the
proper balance between demand and supply of manpower.
 Proper use of resources: The HR planning enable management in making full utilization
of skilled, talented and knowledgable candidates available within the Posh Nosh Ltd.
With the optimum usage of employee skills, Posh Nosh Ltd can amend its overall
efficiency (Farndale, Scullion and Sparrow, 2010).
 Coping with changes: The HR planning help company in coping with changes taking
place within the extrinsic environment. Such as technology is rapidly changing, therefore,
Posh Nosh ensure appointment of technical staff to perform various task and ensure
modification in business as per prevailing trends.
2.2 Outline the stages of HR planning.
HR planning help business in maintaining the desired level of human inventory. It
further involve various stages that are described as follows:
 Analysing organizational objectives: The main aims and objectives of Posh Nosh Ltd is
assessed. Thereafter, company determines the quality of resources that will be required to
meet those objectives in best way.
 Measuring the present human inventory: It is key step of HR planning which through
which HR executive assess the skills, potential, performance and knowledge of present
human inventory ans match the same with the quality of employees desired in the
organization ((Human Resource Planning Process Or Steps Of HR Planning. 2015). On
the basis of this, future need of manpower is determined.
 Forecasting demand and supply: It is important step that help company in predicting
the demand of human resources that will be arising in entity due to voluntary retirement,
job switching, promotion or transfer etc. Further, estimation is done of the various
7

sources that can be used to ensure supply of manpower to fill such vacant job post.
Therefore, supply can be done from various internal and external sources.
 Determining the manpower gap: The difference between demand and supply of human
resources help in identifying the surplus or deficit of employees wi thin Posh Nosh Ltd.
In case of deficit, new employees can be appointed while in case of surplus, company can
terminate the poor performing individuals.
 Development of HR plan: The HR plan will depend upon the situation of entity in terms
of human resources; deficit or surplus. On the basis of this various steps will be taken
like, planning recruitment and selection or inter division transfer in case of lack of
availability of employee (Zhu, 2014). On the other hand, voluntary retirement scheme
can be used if there is abundance of employee.
 Monitoring,control and feedback: The HR plan must be properly controlled and
monitored to prevent deviation from plan and its actual implementation.
2.3 Comparing the recruitment and selection process of Posh Nosh Ltd to Tesco PLC
The different organizations use contrasting recruitment and selection process as per their
suitability.
Posh Nosh Ltd Tesco PLC
To fill the vacant job post, company give
priority to new candidates.
The existing employees are given first
preference in this type of recruitment process.
Other than this, employees can suggest their
friends or relatives for available post.
It help in reducing unemployment level of
country by introducing new talent in firm .
(Abdullah, Ahsan and Alam, 2009).
It assist in boosting the morale of present
employees.
The company is required to stimulate
competent candidates by giving advertisement
in newspaper, job sites etc. It is costly
approach.
It save the amount incurred on advertisement
and organizing new recruitment and selection
process. It is cost effective way.
For selecting best candidate, psychometric test It select the employees as per aptitude test or
8

is used. evaluation of their performance (Dörnyei and
Ushioda, 2013).
The structured interviews are conducted of
selected candidates after test.
The ability test are done for selecting
competent candidate for the job.
The background check is done before final
selection of employee.
To shorten the recruitment process,
background check is skipped.
2.4 Evaluating the effectiveness of the recruitment and selection techniques in two company
On the basis of critical assessment, effectiveness of the hiring and selection process of
Tesco and Posh Nosh Ltd company has been ascertained. It has been identified that Posh Nosh
Ltd company will be able to hire fresh talented employees for its entity whereas, Tesco will use
talent already present in the company. Therefore, Posh Nosh company will have to incur more
expenditure as compared to Tesco (Kerzner, H.R., 2013). Also, existing employees will be
dissatisfied if new candidate is appointed for superior post. The new candidate will need training
and development which will again increase cost for entity. On the hand, Tesco will provide
opportunity to present employee so they individuals will give their best performance for gaining
promotion etc. It will save outlay incurred on entire process. The psychometric test used by Posh
Nosh will help in judging the candidate on the basis of various criteria. Therefore, best
candidates are selected through this process. While, aptitude test will only help in judging the
individual capacity to learn in future (Markos and Sridevi, 2010). The reference check process
assure appointment of reliable candidate only and thus overcome hiring risk. Tesco is not doing
background check due to which company can face issues like, hiring of individual with criminal
record, low character or major health issues.
TASK 3
3.1 Link between motivation theory and reward
There is direct link between reward and motivation theory. There are various
motivational theory that states that company can use monetary and non monetary reward to
encourage employee to willingly contribute to the success pf Posh Nosh company. Such as,
entity can use Maslow need hierarchy theory to increase motivation level of employee. As per
9

this theory, the needs of employees are best motivators that encourage them to voluntarily assist
in attaining goal (Lepper and Greene, 2015). As per this model, employee have physiological,
safety, belonging, esteem and actualization needs. These needs must be fulfilled by management
of cited firm to motivate its employee.
3.2 Process of job evaluation and other factors determining pay
Job evaluation is process of calculating the value of job in terms of other job in a
enterprise. It involve systematic comparison among various jobs to determine their worth to
measure their value for the objective of developing a rational pay structure. The job must be
evaluated so that proper salary can be paid to employee in accordance with the quality and
quantity of work performed, prevailing trends etc. It will also help in overcoming dissatisfaction
among employee and retaining them in long run (Boxall and Purcell, 2011). The pay structure is
determined on the basis of size of Posh Nosh and industry rates. In addition to this, performance
of employee, seniority of post and competency and knowledge required for particular job are
some factors that determine pay structure of employee.
3.3 Effectiveness of reward system In Posh Nosh Limited
The reward system play a influential role in encouraging the performance of employee.
With the help of rewards, management induce employees to perform beyond their capacity so as
to attain various monetary as well as non monetary benefits (Schuler and Jackson, 2008). The
rewards play a important role in increasing the productivity of employee as individual perform
maximum and best quality services to organization. The rewards further motivate employees to
put maximum efforts so as attain the overall goals of Posh Nosh Ltd.
3.4 List of various methods used by cited firm to monitor employee performance
There are various methods that are used by management of company to measure the work
performed by employees and match it with set industry benchmarks. Further, the pay structure is
also determined on the basis of results after performance monitoring. Therefore, management
can conduct a 360 degree assessment to determine the quality work done by employee
(Monitoring employee performance, 2011). Therefore, reviews can be obtained from superiors,
subordinates and peers regarding the work performed by employee. Also, feedback can be
obtained from customers to supervise the work of employee.
10

TASK 4
4.1 Identifying the circumstances for cessation of employment in Posh Nosh Ltd
There are many reasons for which employee can be terminated or asked to discontinue
the services in Posh Nosh Ltd. Such as in case of poor performance of work and continuous
failure in meeting the benchmark of industry, employee can be asked to discontinue its services.
Along with this, high absence from work despite repeated warnings is also reason for which
individual can be suspended from work (Dowling, 2008). The main reason for which employee
is compulsorily employee cessation is on account of unethical behaviour of employee.
Therefore, stealing the assets of Posh Nosh, sexual abuse, fight at work place, fraud etc. are some
reasons for employee cessation.
4.2 Describing the exit process used within cited firm and Tesco
The exit process means the method used by Posh Nosh to handle the situation of
employee leaving the organization. The Posh Nosh company conduct exit interview of all the
employees departing from company. It further help in identifying the cause of such departure so
that actions can be taken to retain present as well as other employees in future. It help in
identifying the issues that induce employee to leave the organization. On the other hand, Tesco
use scheme like Golden Hand Shake which give facility to employees to early leave the entity
after taking compensation (Boxall and Purcell, 2011). This is done to give employment
opportunity to fresh talent or reduce surplus employee. This process induce employees to
voluntary leave the organization while Posh Nosh assure maximum retention of employees.
4.3 The impact of regulatory frameworks on employee cessation arrangements
There are various legal regulations laid down by government to prevent wrong or unfair
dismissals of employee by employer. In this respect, Employee relation Act 2004 is laid down by
government. This act provide right to object the wrong dismissal of any employee by its co
workers, subordinates etc. Therefore, employer will be required to state valid reason supported
by evidence to state the grounds of cessation of employee (Guest, 2011). The unfair dismissal is
protested as it may further affect the employment right of remaining employee and cause high
job insecurity and dissatisfaction among them.
11

CONCLUSION
Concluding, the above report, it can be stated that human resource management is
important approach that help Posh Nosh Ltd in using the talent and skills of present employees
for gaining organizational success. The main goal of HRM is to enhance the performance of
workforce so as to facilitate attainment of organizational goals. The line manager perform
various functions that facilitate organization in attaining its key objectives. Therefore, they play
important role in company.
12