The Significance of Human Resource Management

This assignment delves into the significance of human resource management within organizations. It examines the relationship between global best practices and their adaptation to local contexts. The readings emphasize the strategic importance of managing human resources as a key organizational asset for success.

Human Resource Management

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
1.1 Difference between HRM and Personnel Management.........................................................3
1.2 Functions of HRM in contributing to organisational purpose 4
1.3 Responsibilities of line managers in HRM............................................................................5
1.4 Impact of legal framework.....................................................................................................5
Task 2...............................................................................................................................................6
2.1 Importance of HR planning...................................................................................................6
2.2 Stages involved in planning...................................................................................................7
2.3 Recruitment and selection process of two different companies.............................................7
2.4 Effectiveness of recruitment and selection technique............................................................8
Task 3...............................................................................................................................................8
3.1 Relationship between reward system and motivational theory..............................................8
3.2 Key elements of job evaluation process.................................................................................9
3.3 Effectiveness of reward system.............................................................................................9
3.4 Methods of monitoring employee performance.....................................................................9
Task 4.............................................................................................................................................10
4.1 Reason of ceasing employment 10
4.2 Exit procedures of two firms................................................................................................10
4.3 Impact of legal framework on employee cessation..............................................................11
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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INTRODUCTION
Human resource management (HRM) plays a significant role in the development of the
organisation. They work for developing better understanding between work force to make
strategies which can help in the economic success of the enterprise. Recruitment of skilled
persons, training, motivating people are main key areas of HR managers. The high retention rate
of talented people can assist in accomplishing the goal of the firm. For the present report Posh
Nosh limited is being taken into account (Stone, 2013). It is small sized enterprise but having
great potential to grow well in the field of catering services. The current assignment will discuss
the difference between personnel and human resource management. The importance of HRM
will be illustrated in this study. It will focus on motivational aspects to improve a performance of
workforce in Posh Nosh Limited.
TASK 1
1.1 Difference between HRM and Personnel Management
Organisations use concept of personal management and HRM, both work for the same purpose
but there is a huge difference between both. Differences are as following:
Area of difference HRM Personnel management
Meaning It is the approach which is
used by the firms to manage
its workers well. It is
considered as modern
approach
It is considered as the
traditional approach which
pays more focus on norms,
regulations rather than
employees.
Management of employees HRM approach treats its
workforce as assets of the
company.
PM treats its valuable
employees as machinery.
Payroll or salaries In HRM practices wages are
depended upon the
performance of workers.
Here salary package is
depended upon the job
evaluation and decided by top
management at the time of
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recruitment.
Communication There is direct coordination
between employees and
employer.
Employees can not directly
communicate with higher
management in this approach.
Decision making Employees are getting
involved my management in
decision-making process
(Pissaris, Heavey and Golden,
2015).
Judgment is on the hand of
higher authorities; they take
the final decision.
Push Nosh is a small firm but is following the HRM practices in the workplace. This approach
would be better for the cited firm as because with the help of this CEO will be able to motivate
its workers and it will assist in improving the performance of workers. By this way, the aim of
expansion of the company will be accomplished easily.
1.2 Functions of HRM in contributing to organisational purpose
The objective of Push Nosh is the develop business and expand operations. As it has capabilities
having sufficient outlet in London and provide quality catering services. So with the assistance
of HR practices, it will be able to accomplish its goal easily (Cloke and Park, 2013). Functions of
HRM are as below maintained which contribute to achieving organisational purposes:
Recruitment: Being an HR manager, individual has to select skilled persons in the entity.
Recruitment process includes a job description, interview, written test, salary negotiation and
selection, etc. With the use of all these components, human resource can select the most suitable
candidate in the firm (Sanders, Cogin and Bainbridge, 2013).
Training and development: It is another function of HR managers, as an individual has to give
time to time training to staff members so that they can get knowledge about latest technologies
and recent trends. HR has to conduct development programs for employees so that they can
improve their skills, this function will support to improve working performance of workers of
Push Nosh thus, they will put their best efforts in the success of the company (Anca-Ioana,
2013).
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Performance appraisals: It is a key element of HR function, monitory rewards, recognition
support people to do well and perform better in the workplace. It makes them loyal and satisfies
their needs by this way talent retain in the firm to a longer period. It will be beneficial for Push
Nosh as it will not have to spend more amounts in recruitment and training to the new candidate
(Peccei and Voorde, 2013). By this way, retention rate will get improved, and profit will be
higher.
Conflict Resolution: Sometimes grievances get arise in the organisation due to
miscommunication and confusions. It is the function of HR manager to resolve conflicts and
maintain decorum in the workplace.
1.3 Responsibilities of line managers in HRM
Line managers are the intermediary between employees and higher authorities. In the Posh Nosh
company role and responsibility of the line manager are as following:
To control the operation cost and enhance sales to minimise it.
Quality checking and close monitoring are the responsibilities of Line managers in the cited firm
(Glendon, Clarke and McKenna, 2016).
To deliver quality services to clients and resolve their quarries immediately is the duty of line
manager; it means looking at the satisfaction level of customers is the job of the individual.
To maintain decorum in the organisation so that all workers follow the rules and policies strictly
is the responsibility of line manager of Push Nosh Company.
To give rewards and recognition is the main work duty of the persons. As an individual has to
analyses the performance of each worker and has to give monetary and non-monetary rewards to
them so that they can get motivated (Suttapong, Srimai and Pitchayadol, 2014).
1.4 Impact of legal framework
There are several laws and regulation which are necessary to follow by the organisation; it is the
responsibility of HRM that all norms followed by all employees strictly. The impact of legal
framework is as following:
Disability Discrimination Act 1995: Government has made law for the protection of disable
persons. It concentrates on giving equal opportunities to all persons no matter whether the
individual is disabled or normal. It impacts positively on Push nosh it helps to maintain equality
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in the workplace and enhance the morale of other employees too. If organisation do not follow
then, it can create negative impact as licenses can be cancelled by the authority (Ali, 2013).
Data Protection Act 1998: Push Nosh follows this strictly, as the company keeps safe the
personal information of workers and customers. It impacts positively as it helps to gain the trust
of them. Thus, consumers will take interests and will come to the place for eating and employees
will be satisfied so they will serve better to clients, by this way profit of the organisation will be
increased.
Equal pay Act 1970: Push Nosh gives equal salaries to all its employees, by this way they be
loyal and put their best effort in the development of the entity. HR manager evaluates the
performance of employees on the bases of their overall performance rather than age, gender, etc.
(Shaw, Park and Kim, 2013). That impacts positive and encourage people to do well in the
workplace.
TASK 2
2.1 Importance of HR planning
The term human resource planning is related to make strategies for accomplishing the future
goal of the organisation. There are various reasons for HR planning in Push Nosh company;
these are as below explained:
Estimate future needs of manpower: HR manager of the company ensures that there should be an
adequate number of employees. Human resource planning helps to identify the future required
workers, by this way HR manager can plan to recruit new candidates to meet with the accurate
numbers (Ellinger and et.al, 2013).
Effective utilisation of available resources: Human resource planning is important as it helps to
utilise the resources of the company effectively so that future goal can be achieved.
For selecting skilled candidates: The main reason of HR planning is to hire such persons those
who are capable and can work better in the organisation. Proper planning supports to reduce
recruitment cost of the Push Nosh in selecting best candidates (Kong, Chadee and Raman, 2013).
Importance:
 HR planning is important for the development of employees, proper planning helps to
invest much amount in training of workers so that they can grow well and can contribute
to the success of cited firm.
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 It helps to reduce uncertain events in the entity.
 It is essential to manage changes in the workplace effectively.
2.2 Stages involved in planning
Several stages are involved in planning human resource requirements; these are as following:
Set objective: It is the initial phase in which HR manager of Push Nosh needs to analyse
the objective of the enterprise. For instance, its main aim is to recruit skilled persons those who
can contribute well in the expansion.
Manpower needs: After setting objective now it is required to identify the needs of
human resource. For estimating the requirement individual will have to analyse the gap between
current and future staff (Abdelhak, Grostick and Hanken, 2014). It will help HR manager to fill
the gap with talented employees.
Performance evaluation: HR manager of Push Nosh needs to evaluate the performance so
that it can be identified that how much training required to employees for improving their
performance.
Meet demand and supply: It is the nest stage in which human resource manager has to
meet the demand and supply.
Formulate action plan: After looking at the demand and supply, individual will have to
formulate an action plan, in this, it needs to be considered that whether any termination,
promotion, retirement will take place or not (Sheehan, Garavan and Carbery, 2013). So, that
excess staff issue can be avoided.
Monitoring, controlling and feedback: After all these steps HR planning involves proper
monitoring of all activities so that mistakes can be minimised to a great extent. HR manager
needs to take the time to time feedback with staff members so that effective modification can be
taken place.
2.3 Recruitment and selection process of two different companies
Brake Bros Ltd. Is the public sector company which is engaged in the food and catering
business. The recruitment process differs in both companies:
Posh Nosh recruitment process
As it is currently working as small firm, so CEO takes interview telephonic. As CEO is involved
in recruitment process because of the absence of HR planning and as firm follows flat structure,
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so candidate gets selected immediately (Shaw, Park and Kim, 2013). CEO took interview and
finalised the candidate.
Brake Bros Limited
It is a public limited firm and follows the tall structure. There is the presence of recruitment
panel and committee takes final decision of selection. Personal interview conducted by the firm
for knowing better about skills of candidates. In the initial stage, HR manager of Brake Bros
advertise the article regarding vacant post then candidates send their resume, the panel looks
upon the CV and calls the skilled persons in the interview session. In this, committee asks
questions with the person, and after discussion, they take final decision of selection (Anca-Ioana,
2013).
2.4 Effectiveness of recruitment and selection technique
Push Nosh hire candidates by taking telephonic interviews. This is effective techniques as per
the structure and size of the organisation. It is cost effective and less time-consuming method.
Brake Bros Ltd hires applicants by taking face to face interviews. As committee members ask the
relevant question to analyses the skills of the persons, By this way right candidate get selected in
the organisation. Other recruitment and selection tools are as below maintained:
External agencies: These are consultancy firms, they conduct an interview for such candidates
those who have relevant skills what firm want. By this way the entity can hire best candidate in
the organisation (Peccei and Voorde, 2013).
Internal sourcing: Company circulate information about vacant post internally, and persons who
is suitable, HR manager promote the person for the post. It is the cost effective method as the
company needs not to train again to the person.
TASK 3
3.1 Relationship between reward system and motivational theory
Motivation assists to encourage people to put their best efforts to enhance the performance of
the company. Reward system and motivation both are interrelated. Maslow's motivational theory
used by Push Nosh to motivate its staff members. This concept concentrates on five basic needs
of the human; physiological, safety, social, esteem and self-actualization. Some people have
monetary, and other have non-monitory requirements. Incentives, cash bonuses are included in
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monitory rewards, it helps to motivate employees and enhance their performance to a great
extent. By this way, the person will stay in the workplace for the longer period (Stone, 2013).
HR manager of Push nosh should provide insurance cover, medical to fulfil their safety needs,
by this way employees will be loyal and will perform better in the organisation. For filling, their
esteem needs, Push Nosh should give them recognition in front of many people. This will
enhance their confidence, and they will work better in the entity.
3.2 Key elements of job evaluation process
Job evaluation assists in identifying the performance of each employee within a workplace.
Several elements involve in this process are as following:
Money allocation: This is an important element which supports to finalised the salaries of
candidates. Experience persons get high wages then freshers. Apart from this skill, education
level of individual also get involved in this element.
Job analyses: It involves duties, responsibilities, skills for the particular post. By this HR
manager prepare the job description and specification.
Job rating: It is another element which supports to decide the priority of particular job profile
(Pissaris, Heavey and Golden, 2015).
The performance of employees is the main factor in determining the pay scale. The good
performer gets incentive, bonuses and gets the chance of promotion and high salary package.
3.3 Effectiveness of reward system
The effectiveness of reward system in Push Nosh are as following:
High retention rate: Reward system makes people loyal towards the firm, and they stay in the
organisation for the longer period. By this way job turnover will be reduced in Push Nosh and
that will help the cited firm to hold talent in the workplace for the longer period.
Motivate people: Rewards help to motivate staff members so that they will feel happy and will
perform better in the organisation. By this way the performance of the company will be
improved, and it will be able to accomplish its objective soon.
Attract skilled people: As good reward system attracts more people towards the brand and by
this way, Push Nosh will be able to hire a talented candidate in the entity those who can
contribute well to the success of the organisation (Stone, 2013).
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3.4 Methods of monitoring employee performance
Posh Nosh can use various methods to monitor the performance of employees:
360-degree feedback technique: It can be the effective method of evaluating the performance of
workers, in this HR manager of Posh Nosh can take feedback from team leaders and supervisors.
By this way, individual performance can be monitored by them. It will help to measure the
performance of each employee in the cited firm.
Ranking method: It would be a best suitable technique for Posh Nosh as it is small firm this will
be cost effective tool. In this manager give ranking to each employee, that helps to boost their
energy and motivate them to perform well in the workplace (Peccei and Voorde, 2013).
Checklist: It is another good method in which seniors prepare checklist about attitude,
performance, time management of the individual. It can help Posh Nosh to know about the
individual performance so they can take action to improve their skills and performance.
TASK 4
4.1 Reason of ceasing employment
Various reasons for cessation are as following:
Inadequate performance of workers is the main issue because of that companies terminate the
persons.
Being a small enterprise Posh Nosh is having limited economical sources, so if there is the
financial problem then cited firm terminate people from the job because it cannot afford such
large number of team (Anca-Ioana, 2013).
Irregular attendance, wrong behaviour, arguing nature are other reasons of ceasing employment.
Law skills and experience are other reasons for the same.
To reduce this problem, Posh Nosh should make effective strategies to motivate people so that
they improve their performance. In a competitive market, employees can turn towards new firm
because of getting higher salary package so cited firm should pay wages according to the
capability of the persons. Managers should provide them flexible working environment so that
people feel happy in the workplace. Training and development programs should be organised in
the organisation time to time to enhance the confidence of employees.
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4.2 Exit procedures of two firms
Systematic exit procedure is very useful for the organisations, as by this way firms can know
about drawbacks of the firm and can work to improve these problems. Exit interview includes
taking feedback from the candidate so it assists to get relevant information about policies and
procedure so the manager can modify it to reduce the turnover rate (Ali, 2013).
Exit procedure of Posh Nosh: Cited firm has the policy that employee has to inform before one
month of leaving. But due to the absence of clear HR policies, workers do not inform, and they
leave directly, no exit interview held in the organisation.
Exit procedure of Brake Bros: As it is a public limited firm, so in the exit interview HR
managers as the reason of leaving and convince them to stay by offering higher salary packages.
Employees have to submit their ID cards at the end of working day (Glendon, Clarke and
McKenna, 2016).
4.3 Impact of legal framework on employee cessation
There are several laws have been made by UK government to protect rights of employees. These
legal frameworks impact on employee cessation:
Contract law: It is the act in which employer has to make the legal agreement with employees, in
this it is necessary to give all satisfactory information to them. If at the time of termination of
workers, managers do not give them the proper reason of termination then the candidate can file
the case against the employer which is a negative impact for the employer of the company
(Cloke and Park, 2013).
Equality Act: Company has to treat equal to all staff members, no matter whether they belong to
other religion, race, age or sex. Any discrimination can be negative for the organisation and can
spoil the reputation of the company.
Posh Nosh should follow all legislation strictly to reduce so the type of negative impacts. It has
to treat equally to all its employees and has to give equal promotion opportunities (Stone, 2013).
CONCLUSION
From the above report, it can be concluded that HRM assists to improve working process of the
organisation. By effective HR planning, Posh Nosh will be able to accomplish its objective
significantly. The assignment has discussed the several legal frameworks, so cited firm has to
follow all these laws to reduce critical problems in the organisation. Exit interview needs to be
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conducted properly to identify the problem in the procedure by this way employees turnover can
be minimised in the entity.
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REFERENCES
Books and Journals
Abdelhak, M., Grostick, S. and Hanken, M. A., 2014. Health information: management of a
strategic resource. Elsevier Health Sciences.
Ali, A., 2013. Significance of human resource management in organizations: linking global
practices with local perspective. Researchers World Journal of Arts, Science &
Commerce. 4(1). pp.78-87.
Anca-Ioana, M., 2013. New approaches of the concepts of human resources, human resource
management and strategic human resource management.Annals of the University of
Oradea, Economic Series. 22(1). pp.1520-1525.
Cloke, P. and Park, C. C., 2013. Rural Resource Management (Routledge Revivals). Routledge.
Ellinger, A. D. and et.al., 2013. The Generous Spirit of the Peer Review Process: Perspectives
and Insights From the HRDQ Editorial Team on Providing High‐Quality Reviews. Human
Resource Development Quarterly. 24(4). pp.417-428.
Glendon, A. I., Clarke, S. and McKenna, E., 2016. Human safety and risk management. Crc
Press.
Kong, E., Chadee, D. and Raman, R., 2013. Managing Indian IT professionals for global
competitiveness: the role of human resource practices in developing knowledge and
learning capabilities for innovation.Knowledge Management Research & Practice. 11(4).
pp.334-345.
Peccei, R. and Voorde, K. V. D., 2013. Human Resource Management and Performance. Wiley
Encyclopedia of Management.
Pissaris, S., Heavey, A. and Golden, P., 2015. Executive Pay Matters: Looking Beyond the CEO
to Explore Implications of Pay Disparity on Non‐CEO Executive Turnover and Firm
Performance. Human Resource Management.
Sanders, K., Cogin, J. and Bainbridge, H., 2013. The growing role of advanced human resource
management research methods. Research methods for human resource management. 58.
pp.1-15.
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