Impact of Human Resource Management on Organizational Outcomes

The provided content discusses the influence of human resource management (HRM) on organizational outcomes, with a focus on mediating mechanisms. The articles and online sources explore various aspects of HRM, including its impact on organizational performance, employee development, and competitive advantage. The authors propose that HRM plays a crucial role in shaping organizational outcomes by influencing factors such as job satisfaction, employee engagement, and knowledge sharing. Furthermore, the content highlights the importance of strategic HRM in creating value for organizations and their stakeholders.

HUMAN
RESOURCE
MANAGEMENT
1

Table of Contents
INTRODUCTION ...............................................................................................................................3
TASK 1.................................................................................................................................................3
1.1....................................................................................................................................................3
1.4....................................................................................................................................................6
TASK 2 ................................................................................................................................................7
2.1....................................................................................................................................................7
2.2....................................................................................................................................................8
2.4 ...................................................................................................................................................9
TASK 3 .............................................................................................................................................10
3.1..................................................................................................................................................10
3.2..................................................................................................................................................11
3.3..................................................................................................................................................11
3.4..................................................................................................................................................12
TASK 4...............................................................................................................................................12
4.1..................................................................................................................................................13
4.2..................................................................................................................................................13
4.3 .................................................................................................................................................14
References..........................................................................................................................................15
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INTRODUCTION
Human resource management is important aspect that relates to development of the skills
and abilities of employees. The main function of HRM is to maximize the performance of
employees to facilitate the attainment of overall goals of company. The Human resource
management consist of wide range of functions required to maintain effective human inventory. It
involve functions like, recruitment, selection, training and development, labor relations, talent
management, compensation etc (Regis, 2008). The main objective of human resource planning is
that it help in developing skills and competencies of employees so as to enhance productivity of
business. In addition to this aspect, human resource management help business in focusing on its
employees and thereby prepares them for challenging roles. Also, with the help of HRM practices
such as motivation, rewards etc. company can train people for challenging roles. Furthermore,
human resource management is important function that enable entities to control employee turnover
by improving their overall satisfaction level (Human resource management. 2016).
In this report, clear understanding will be shown regarding different aspect of human
resource management in the context of Posh Nosh Ltd. It is chain of ten outlets in the London area
that renders an up-market fast food business related to eat in, takeaway and catering services. In
this report, the link between motivation theory and reward will be provided. The impact of legal and
regulatory frameworks on HRM practices will be explained. The description about the key elements
included in the job evaluation process will be provided.
TASK 1
1.1
The human resources are managed in different styles in varied organization. The main
purpose of company is to assure people do their best and give maximum performance to business.
The different approaches that can be used by organization are personnel and human resource
management (Svetlik and Costea, 2007 ). However, both these approaches have significant
difference and own effectiveness which are highlighted as follows:
Particulars HRM Personnel management
Define It is strategic function that
relates to administration of
human resource by ensuring
their continuous development.
It routine function of company
that renders the personnel
required for business activities
and managing the general
employer-employee. (Mason,
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and Sanders 2009)
relationship.
Nature Human resource management
have long term perspectives by
considering strategic view.
It have short term perspective
instead of strategic one.
Remuneration The criteria for paying the
salary of employee is based on
their performance of individual
The criteria for providing
remuneration to employee is
based on the position of
individual.
Objective The main concern of Hrm is to
develop the skill, competencies
and knowledge of employees
(Jiang and Baer, 2012).
The key purpose of personnel
management is to manage
people at work.
Treatment The organizational members
under this approach are treated
as valuable resources and key
asset.
It regards employee as
component for attaining
productivity such as machine
equipment.
Importance The individual under this
approach are regarded as
economic,social and
psychological person.
The employees are treated as
cost centre The services of
employee can be obtained in
exchange of wages, salary and
other rewards which are taken
as cost of labour.
Reporting level The employees under HRM
practices are required to report
to higher level of general
manager or chief executive
officer.
Under this approach, employees
are needed to report to lower
level of line managers (Jones,
2010).
Orientation The concern of management is
to attain the individual goal
along with business objectives.
The objective of company is to
attain goals of firm by being
focused.
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Job design The consideration of
management is to perform team
work.
The work structure is designed
as per the division of labour.
Control system The employees are required to
have self control
The individual are controlled
through external forces like,
close supervision etc.
Management role The management role in
transformational one which
enable to prepare employees
for change (Love and Singh,
2011).
The management play
transactional role by making
employees attain business
objectives through using
rewards and punishment.
From the analysis of above differences, it can be stated that it is appropriate for
management to use human resource management for maintaining its employees. It is modern
approach that aims at enhancing the employee motivation level which s important for attaining the
objective of business.
1.2
Human resource management play a crucial role in successful attainment of business
objectives and purpose. It further improve the value of employees within company by continuously
upgrading their skills and knowledge ( Mathis and Jackson, 2011). With the help of this practice
Posh Nosh Ltd can maximize the performance of employees by motivating them, building their
skills, managing their talent etc. The varied functions involved in HRM are discussed as follows:
 Staffing: It is viable function that relates to recruitment, selection function which help in
filling and keeping the filled positions in the organization structure. It further help
management of Posh Nosh Ltd to assure it always have adequate number of employees with
proper skills in right jobs at appropriate time to attain business objectives.
 Orientation: It is important function that help in introducing new employee with it co-
workers, superiors etc. With this aspect,employee is familiarized with job structure, nature
of work and overall environment of company (Muethel, Gehrlein and Hoegl, 2012).
 Training and Development: It is important function of human resource management which
is concentrate on enhancing the performance of different teams and individual working
within the Posh Nosh Ltd by giving them proper training and development opportunity. The
main concern of entity is to enhance the performance of employees as per the industry
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standards (Ulrich, 2013).
 Motivation: It is effective approach that help in enhancing the employees intensity,
direction and persistence of efforts towards accomplishing business objectives. The
management of Po sh Nosh Ltd provide different rewards to employees to encourage them
to attain business objectives.
1.3
Line manger play a crucial role within the working of Posh Nosh Ltd. It is important person
who s authorized to direct the work of subordinates and is responsible for attaining the business
objectives and task. The line manager of cited entity is directly accountable for manufacturing the
products and services (Wright and McMahan, 2011). It direct the employee regarding the work
performed within the entity. The various roles and responsibilities of line manager are as follows:
Positioning the employee: Line manger position new employee and ensure right person works on
the right job. It also provide orientation to new candidates by providing description about its roles
and responsibilities along with the knowledge of structure, culture of Posh Nosh Ltd.
Provide training and development: The line manager is responsible for rendering training to
employees for jobs that are new for them or regarding operation of new machinery.
Guidance: The line manager supervise the work performed by employees and accordingly provide
them guidance. It is further responsible for enhancing job performance of each person (Lane and
Kangulec,2010).
Resolving conflicts: The line manager is responsible for solving the conflicts at workplace to
maintain the positive work environment. Further, various strategies are prepared by line manager to
gain creative cooperation and development of smooth working relationship among organizational
members.
Disciplining Employees: The line manager check there is decorous discipline among employees of
Posh Nosh Ltd. To assure discipline the line manager develop rules and regulations for employees
and assure compliance of organizational policy. In case of non adherence to such policy line
manager can take strict disciplinary actions against the liable person (Werner and DeSimone,
2011).
1.4
The legal and regulatory frameworks have direct impact on the human resource functions of
company. There are strict regulations laid down by government to prevent exploitation of
employees at workplace. The management of Posh Nosh Ltd must assure proper follow up of these
regulations to prevent legal actions, damage to reputation and penalties etc (Brody, 2010). These
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regulations are as follows:
 Health and Safety act 1974: This act was laid down by the Parliament of UK to assure that
employers take proper measures to reduce the risk exposure of its manpower. As per this law
the premises of entity must be cleaned, any hazardous substances must be stored properly,
emission into the atmosphere of the offensive substance must be controlled., Therefore, Posh
Nosh Ltd assure effective health, safety and welfare of its employees at work (Catano,
2013).
 Equality Act 2010: It is important law whose objective is to enhance the protection,
advance equality and diversity among employed individuals. The main objective of this act
is maximize the transparency at workplace by abolishing discrimination on the grounds of
age, gender, sexual orientation, disability, gender reassignment, pregnancy and
maternity,physical impairment , race and religious beliefs and marriage and civil partnership
etc. Posh Nosh Ltd is required to give equal treatment to all its employees while exercising
HRM function ie; staffing; remuneration etc.
 Data protection act: It is important act of UK that generate guidelines regarding processing
data. As per this act, the information collected by company from its employees held in
computer database must be gathered with their consent , held only for particular purpose and
must not be used to their detriment ( Gropu, 2013). Therefore, Posh Nosh Ltd must protect
the information provided by employees during their joining etc.
TASK 2
2.1
The human resource planning is important aspect that relates to ascertainment of present
and future manpower requirement for a company to attain its objectives. There are wide range of
reasons for which HR planning are discussed as follows:
 Future Manpower requirement: Human resource planning assist in identifying the needs
of human resources in Posh Nosh Ltd. The executives of HR division assure that the vacant
positions due to employee leaving the job (voluntarily and involuntarily) are filled promptly
so that it doesn't restraint the performance of work within the company (Longenecker and
Fink, 2013).
 Technological Changes: With the fast change in the market it becomes necessary for cited
entity to employ experts and skilled candidates having sound knowledge of new trends in
food and beverage industry. It further needs modification in the quality of employees so as
to match technological changes. Therefore, entity plan to hire new employees having
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knowledge about new technology and processes (Loosemore,and Dainty, 2013).
 Optimum Utilization of Human Resource: The appropriate planning of human resource
assure that there is correct supply of human assets according to their demand. Therefore, by
proper planning HR manager can ensure that there is optimum use of available human
resources.
2.2
There are various stages involved in human resource planning which are described as
follows:
 Identifying HR needs: The identification of needs of human resources starts with the
internal and external analysis, where the purpose of company is identified and accordingly
resources are analysed. With this aspect,company assure it have proper human inventory to
attain its goals.
 Demand Forecasting: The chief intention of performing demand foretelling in company is
to meet future needs of manpower within the company so as to support the optimal level of
production. By studying the present human inventory level and predicting the potential
employees needs in company, the demand can be forecasted easily by management of Posh
Nosh Ltd (Human resource planning . 2009).
 Supply Forecasting:It assist in predicting the available sources of human resource supply
within and outside the Posh Nosh Ltd so as to match the human resource demand. In order
to assure supply, entity can use internal sources such as, job rotation, promotion, transfer ,
job enrichment and enlargement etc. On the other hand, company can also use external
sources which means hiring of new and fresh talent who are capable to work for the
company.
 Matching Demand and supply: It is important aspect that enable in attaining equilibrium
position of human resources demand and supply. The main objective of this function is to
resolve the issue related to shortfalls and over staffing position in Posh Nosh Ltd. For
instance, if the HR executive consider that there is dearth of employees in company as per
the needs than it can plan to hire more workers up to needed number (Longenecker and
Fink, 2013). . However, in case of over employment, it has has to minimize the level of
existing employment.
 Action Plan: The HR plan is enforced in system by managers by using functions like,
staffing the prospective candidates along with rendering them orientation, development and
training etc Thereafter, it also refer to assessing the performance of human resources and
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further it is preceded by control in order to verify whether the objectives of human resource
meet the planning of human assets.
2.3
The recruitment and selection process of two company are different. The explanation of
which is provided by following distinction between approach used by Posh Nosh Ltd and Mc
Donalds which is another food and beverage company.
Recruitment and selection process of Posh
Nosh Ltd
Recruitment and selection process of
McDonalds
In order to facilitate the filling of vacant
positions within the company, management use
external sources of recruitment (Wright and
McMahan, 2011)
To fill the job position arising in the company,
the management of Mc Donalds use internal
sources. In some cases it takes recommendations
from the existing employees.
The company gives advertisement in
newspapers, job sites and social media about
new vacancy in company so as to assure
maximum application by potential candidates.
The organization inform its employees through
meetings. Emails etc.
The enterprise use job screening to check the
individual have appropriate qualification needed
for the job.
The past and present performance of employee
is assessed to check the suitability of candidate
for new post and responsibilities.
There are various test done to test the ability of
candidate for the available position such as
psychometric test.
In order to select suitable candidate for the
vacant post, company do cognitive ability test
followed by test to judge managerial efficiency.
At last, the selected candidates are required to
have direct interview with panel of interviewers
that judge the professional knowledge of
candidate (Werner and DeSimone, 2011)
The selected candidate is directly appointed to
the new post (Lane and Kangulec,2010).
The selected candidate in interview session is
required to give medical test. Before the final
selection background check is done.
There is no background or medical test done on
Mc Donalds.
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2.4
From the above description it has been identified that Posh Nosh Ltd and Mc Donald's are
use different approaches to facilitate recruitment and selection process. Both the process enjoys
their own effectiveness in different ways. For example, the approach used by Posh Nosh Ltd
involve considerable cost. The business is needed to incur sufficient funds to invite maximum job
applications by designing new ads etc. in addition to this, cost is involved in providing training to
new candidate. However, cost can be covered as young blood introduced in Posh Nosh Ltd will help
in bringing change within company by applying its fresh knowledge about market and innovative
skills. The job screening process will help in eliminating the candidates lacking the needed
knowledge and skills for the post. Thereafter, psychometric test will help in test calibre of candidate
on different scales such as through numerical reasoning, aptitude, reasoning and situational
judgement test etc. The panel of interviewers will check candidate have proper knowledge to meet
the standards of company (Loosemore,and Dainty, 2013). Further, background check will assure the
selected candidate is reliable for becoming a part of organization. The medical test will check the
physical efficiency of candidate so that it can perform the assigned task properly. On the other hand,
method of staffing used by Mc Donald's is cost effective one. It help in saving the additional funds
incurred in hiring new candidate, providing it training etc. Thereafter, it will help in boosting the
morale of present employees as they are the first preference of company for filling the higher and
esteemed position in entity. It will also foster positive competition among members and thus they
will give their best performance (Catano, 2013). The managerial ability test will check the decision
making, critical thinking, management and leadership skills that must be present in candidate for
higher post. Since, company does not do medical test, it is possible it face issue like absence from
work due to sick leaves etc.
TASK 3
3.1
The motivation theory can be refereed as those concept that are used by management of
entity to boost the performance of its employees. The main consideration of motivation theory is to
stimulate employees to attain their personal objectives aligned with overall goals of Posh Nosh Ltd.
The motivational theory uses various rewards such as extrinsic and intrinsic one due to which
employee give its maximum contribution towards accomplishment of business objectives (Human
resource management. 2016). . Here,the extrinsic motivation refers to those external factors that
drive individual to give their best performance such as, rewards, fear of punishment and
10

competition etc. on the other hand, the intrinsic motivation regards to factors that internally
motivate employee to give its best performance. Such as, need for recognition, love, belonging,
learning and autonomy etc. further, to motivate its employees Posh Nosh Ltd can use renowned
Need theory of Maslow. As per this theory the employee can be motivated by satisfying its
unfulfilled needs which are further classified into 5 types, physiological, safety, social, esteem and
self-actualization. These needs are further arranged in hierarchical order and states the lower level
needs must be fulfilled before higher one (Longenecker and Fink, 2013). They are:
 Physiological needs: They are basic requirement of individual for amenities for life. Such
as clothing, food, air, water and shelter.
 Safety needs: It means security concern of individual so as to prevent itself from physical,
economic,environmental and emotional harm. Therefore,employee must be protected by
rendering job stability, financial security, health safety, proper working conditions etc.
 Social needs: This needs relates to carving of individual for love, affection, friendship and
belongingness etc (Motivation-Need Theory. 2010).
 Esteem needs: It refers to desire of individual to be recognized, respected, independent,
powerful and admired while being part of company.
 Self-actualization needs: It is effective need that describes the urge of individual to become
what its is capable of becoming. As per this need, opportunity must be given to individual to
realize its own potential.
3.2
Job evaluation process can be defined as systematic method that help in describing,
analysing and weighting the jobs within the company. It is important process through which pay can
be determined in firm. The main purpose of this method is to analyse and assess different jobs
systematically to identify their worth within company. There are various ways through which jobs
can be evaluated. In this respect, Posh Nosh Ltd can use both analytical and non analytical methods
to determine the pay for its employee. The non analytical method further involve job ranking
approach where different jobs within company are ranked as per their significance within the
company (Job evaluation. 2010). The importance of order of job is determined on the basis of
duties,responsibilities and demand on the job holder. On the other hand, the analytical methods
includes factor comparison method. It is important method where reach job is ranked as per the
series of factors like,mental, physical efforts, skill requirement , responsibility and condition of
work in a job. Therefore, here wages are assigned to the job as compared to its rank on each factor.
Further, pay can be decided on the basis of factors like, size of company, performance of business,
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fluctuation or stability in economy, government wage rate etc (Svetlik and Costea, 2007 ).
3.3
The reward system will have its own effectiveness within Posh Nosh Ltd. With the help of
reward system, the management of organization will be able to assure maximum productivity of its
employee. The individuals will perform beyond their potential to attain different rewards. This will
increase the degree of positive competitiveness among its employees. The reward system will
encourage employees to give their best performance to qualify for various non-monetary and
monetary awards. It will also stimulate employees to accept new changes easily. Thereafter, Posh
Nosh Ltd can use rewards to influence organizational members to take challenging role.
Furthermore,it can be stated that reward system can be used to improve the overall satisfaction level
of its employees. This aspect will further help in retaining the talented, skilled and knowledgeable
candidates within the business for long run. Other than this,company can use reward to minimize
the absenteeism level of employees and foster regularity among members (Muethel, Gehrlein and
Hoegl, 2012).
3.4
The main purpose of monitoring employee performance to measure work performed by
employee and provide feedback. It will also help in assuring that employees have proper
understanding of significance of their contribution to the business objective. The performance
management help in rendering open and transparent job related advice to employees. In order to
measure the employee performance, following methods can be used by Posh Nosh Ltd.
 Rating scale: It can be defined as set of categories designed to explain information
regarding quantitative and qualitative attributes on the basis of performance of individual is
assessed. The executive of Posh Nosh Ltd can estimate the attributes of employee along
some dimension such, as poor,good, best or moderate quality ( Gropu, 2013).
 360 degree: The performance of employee is assessed and valued on the basis of various
attribute such as the behaviour, area of responsibility and their inter personal relationship
and performance. In this respect, feedback about the work performed by employee is
obtained from customers, co-workers,superiors, top executive and self etc
 Management By Objective: The management and employees determine their mutual
objective for organization and decide every individuals responsibility and standard of work.
Further the share from every employee is used to monitor their performance.
TASK 4
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4.1
There are various reasons due to which employees of Posh Nosh limited cease employment.
Top management of enterprise have formulated various policies and guidelines which are
mandatory to follow for all the staff members. Line managers of organization have been instructed
to monitor properly that all the staff members should follow all the policies of organization. It
supports in making discipline in the work place and conflicts and work place issues are reduced due
to this. Some staff members fails in following guidelines given by top management due to which
operations of the organization gets affected. Wrong workplace attitude and behaviour also causes
problem in executing the functions of business (Svetlik and Costea, 2007 ).
Some staff members misbehave with their colleagues and due to it grievances and conflict
situations rises in the organization. Work environment gets affected and overall productivity of
enterprise also gets reduced. It becomes vital for management to take strict action against such staff
members. Every worker of Posh Nosh limited is assigned some responsibilities and specific task to
accomplish. Sometimes staff members shows wrong attitude and does not complete the work
assigned to them. It is also a reason due to which employees are terminated in the organization.
Some employees lack punctuality and shoe regular absenteeism due to which working of the
enterprise gets affected (Brody, 2010). Employees who show unnecessary and regular absenteeism
are also terminated in the corporation. These are some reasons due to which employees of Posh
Nosh limited cease employment.
4.2
Posh nosh limited uses a systematic and organized method for conducting the employment
exit procedure. A interview session is organized with the employee who is leaving the organization.
In the interview reasons for leaving the company are asked from the staff m,ember and various
complaints and grievance of worker are also asked. It supports in identifying weak performing areas
of the organization. It also assist in identifying diverse reasons due to which conflict situation arise
in the enterprise (Catano, 2013).
Recommendations and suggestions are taken from employees for making improvement in
organizational structure. Valuable and good feedback given by employee are implemented in the
company for making modifications in the operational process. On the other hand Mcdonald's uses a
formal method for organizing the exit procedure. Employee who is leaving the organization is given
questionnaire to fill. Various questions are mentioned in the questionnaire in which staff members
needs to write detailed reasons for leaving the organization. In addition to this opinion of employee
are also asked for doing modifications in operational areas of the company (Jones, 2010).
13

Documentation process is done and questionnaire are kept in a separate file.
4.3
The employment cessation is term that describes the employer -employee relationship within
the company. There are various rules and regulations laid down by government to regulate the
employment cessation practice. The main concern of government is to assure employees are not
terminated due to unfair reasons. According to laws governing this process, government assure that
all employees have equal and justifiable termination from job. The unfair termination can not only
impact the interest of present employee but also cause negative impression and job risk on other
workers Mathis and Jackson, 2011). The non compliance to employment cessation laws can cause
dissatisfaction among employees resulting into impact on productivity. Also, the company can face
serious legal consequence. In this respect, employment tribunal generate guidelines which enable
employees and employers to resolve their conflict. According to the Employment right act 1996 the
employee have right to demand reasonable notice before termination of contract. At present, Posh
Nosh Ltd must provide at least 1 week notice to its employee (Dismissal right 2016). Also,employer
is required to give fair and valid reason for dismissing any employee.
CONCLUSION
Summing up the entire report, it can be concluded that human resource management is
effective approach that help in developing the skills and knowledge of employee which further
assist in attainment of business objectives. From the report, it has been identified that Hrm involve
functions like, recruitment, training and development, motivation,rewards etc. It has been identified
that it is feasible for company to adopt HRM practices as compared to personnel management. The
line manager of Posh Nosh Ltd have important responsibilities like, disciple management. Building
skills of employees etc. Thereafter, the policies such as,health and safety act, equality act and data
protection act must be adhered by company. From the report it has been identified that company is
using external sources for recruitment which will help in reducing the creativity stagnancy in the
entity. Further, to motivate employee management of Posh Nosh Ltd can use Maslow need
hierarchy theory. The report has ascertained that job evaluation is important method that help in
adjusting salary structure of employees, determining their development needs and identifying
candidates having potential to become future managers. With the help of reward system, company
will be able to retain its competitive employees within the firm.
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