Evaluating Default of Employee and Its Impact on Corporation's Performance

As per the assignment content, it is essential for all managers to collect evidence that proves an employee's default. After evaluating their past performance and experience, they should be terminated by following legal guidelines. This decision has a significant impact on the corporation's overall performance.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION.........................................................................................................................................3
TASK 1..........................................................................................................................................................3
1.1...............................................................................................................................................................3
1.2...............................................................................................................................................................3
1.3...............................................................................................................................................................4
1.4...............................................................................................................................................................5
TASK 2..........................................................................................................................................................5
2.1...............................................................................................................................................................5
2.2...............................................................................................................................................................6
2.3...............................................................................................................................................................7
2.4...............................................................................................................................................................8
TASK 3..........................................................................................................................................................8
3.1...............................................................................................................................................................8
3.2...............................................................................................................................................................9
3.3...............................................................................................................................................................9
3.4.............................................................................................................................................................10
TASK 4........................................................................................................................................................10
4.1.............................................................................................................................................................10
4.2.............................................................................................................................................................11
4.3.............................................................................................................................................................12
CONCLUSION............................................................................................................................................12
REFERENCES............................................................................................................................................13

INTRODUCTION
Human resource management (HRM) is an essential part of an organization which is designed to
maximize performance of employees in order to achieve goals and objectives of firm. The purpose of this
study is to help learner about understanding several functions of HRM performed by Posh Nosh Ltd. It is
a small enterprise which deals in food business, eat in, take away and catering services. It is located in
London city (Boxall and Purcell, 2011). This study will assists learner to understand complexities of
motivational theories and their impact on performance of employees of this establishment. It will also
provide a deep study about hiring and exiting people from workplace under various circumstances.
TASK 1
1.1
In an organization people plays a crucial role in growth and success of a business. Both personnel
management (PM) and human resource management (HRM) deal with human resources in an enterprise.
Both aspects are of similar nature but has some difference also which are discussed below:
 PM is a traditional approach while HRM is a modern technique to manage individuals in entity.
 PM focuses on administration, employee welfare and labor while HRM concentrate on
developing, maintaining and motivating people within premises.
 PM assumes person as an input to firm to accomplish its goals where as HRM treats employees as
a valuable asset to company to achieve its desires.
 PM follows method of division of labor for job designing but HRM perform function of job
designing on the basis of team work.
 Under PM, there are fewer opportunities for training and development of employees but in HRM
it has a great importance to enhance skills and knowledge of workforce.
 Under PM, only top management is authorized to make decisions, rules and regulations, while in
HRM employees and staff also take part in decision making process.
From the above discussion it clear that HRM is more beneficial and effective to run a business in
smooth way (Hendry, 2012). Posh Nosh Ltd. needs to build HRM within the entity because it encourages
all employees to work together as a team and make feel them as an important part of firm.
1.2
The major function of HRM is to manage people within an entity and make them work to meet
objectives and goals of corporation. There are following functions of HRM in Posh Nosh Ltd.:

 HR planning: It is the process that recognizes present and future requirements of human
resources for undertaking to achieve organizational goals and objectives. In Posh Nosh Ltd., this
is performed by HRM and it is a basic function of HRM. Without it other functions are not
possible to perform because manpower is main component for enterprise.
 Recruitment and staffing: Main purpose of this function is to put right person at right place.
Here, persons with appropriate skills, knowledge, experience and abilities are selected by HRM
to increase productivity and profits of unit.
 Development of employees: It is another function of HRM at Posh Nosh Ltd. to improve
productivity of firm by enhancing skills and knowledge of employees (Flamholtz, 2012). It can
be done by facilitating effective training and development program which will boost their
efficiency and motivate them towards their job.
 Compensation: It is another main function of HRM at Posh Nosh Ltd. that means providing fair
remuneration to workforce. This may help management to attract more employees who will work
with full efficiency to receive various other benefits like bonus, rewards, appraisal, etc.
 Maintenance of workforce: To earn higher productivity, it is necessary to maintain physical and
mental health of staff of Posh Nosh Ltd.
1.3
Line managers are such authority who have whole control over their subordinates and perform
their job effectively with an aim to accomplish organizational goals and targets ( CHUANG and Liao,
2010). As Posh Nosh Ltd. is a small enterprise where these managers perform various duties of firm and
also involved in HR functions. Sometimes, line mangers act as front line managers. Here are following
role and responsibilities of line managers of Posh Nosh Ltd.:
Role
 As line managers exercise control over performance of subordinates, they play role of an
effective leaders who have interpersonal skills to manage and influence employees.
 Line manager is authorized to control behavior of workforce within the workplace.
 HR managers make plans and policies and line managers implement or convert such policies into
operation like performance appraisal and rewards at workplace.
Responsibilities
 First main responsibility of these managers at Posh Nosh Ltd. is to hire right or skilled person for
right job.

 Providing training and development program for both new and existing employees.
 They take part in day to day operations and transactions of business and deal directly with
consumers on daily basis.
 Facilitating personal development of workforce is another duty of management
 To maintain, create and boost morale of departments at Posh Nosh Ltd.
 Orientation of new comers within the premises.
 Develop a good and healthy working environment by maintaining smooth working relationships.
1.4
Every country has different legal and regulatory framework on HRM and so as companies have to
follow such regulations to run their business (Gruman and Saks, 2011). Posh Nosh Ltd. is located in UK
where all legal rules, policies and regulations are made by parliament of nation. Posh Nosh Ltd. must
follow all laws, policies and regulations of UK government. In public companies, government has full
control over its operations but in case of private corporations there is very less intervention of government
in business operations of entity. In HRM there are many functions which are governed by some rules and
regulations of government. There are some acts which must be followed by this enterprise. These are as
under:
 Equality act, 2010: This act is enacted by UK to facilitate equality of people in various fields and
areas within an entity. It is the combination of some previous acts like sex discrimination act
1975, race relation act 1976 and disability discrimination act 1995. This act legally protects
employees from various discriminations at different level of firm.
 Employment rights act, 1996: This act of parliament passed by British government to codify
existing law on rights of employees in UK. This act was enacted to protect various rights of
workforce with in premises (Ulrich, 2013). This helps employees to receive fair wages and salary,
compensation for genuine reasons, etc.
TASK 2
2.1
HR planning is also known as manpower planning which is done by HR managers of firm to
select right number of people for right jobs. It is very importance to make appropriate plan to employ
suitable persons for right job to achieve goals and objectives of entity. Importance of HR planning is
discussed as under:

 Future needs of manpower: HR planning helps management to recognize and identify needs of
workforce within undertaking. Through proper planning, managers of Posh Nosh Ltd. will be
able to identify the requirement of human resources to accomplish its goals and desires.
 Coping with change: To deal with the changes related with external factors of Posh Nosh Ltd.
HR planning is very important to perform by its management.
 Recruiting skilled personnel: Another main aim behind HR planning for Posh Nosh Ltd. is to
recruit and select suitable and efficient person who may help organization to meet the purposes of
its establishment.
 HR development: It also identifies requirement of various skills and knowledge for people at
different levels and department of job (Wright and McMahan, 2011). After recognizing necessity
of enhancing skills, management organizes various training and development programs for
different types of employees to boost their knowledge and expertise.
 Optimum utilization of human resources: In a corporation like Posh Nosh Ltd. many individuals
are engaged in various jobs. HR planning is done to utilize and acquire manpower effectively so
that it will help in achieving targets and goals of firm.
2.2
There are several numbers of steps involved in HR planning in Posh Nosh Ltd. which are as
follow:
 Analyzing objectives of firm: The first step in HR planning is to analyze organizational
objectives and goals (Oechsler, 2011). By analyzing objectives and targets of entity, management
will get an idea about work to be done in enterprise.
 Availability of manpower: Under this, current availability of human resources are analyzed
which will give information about total number of working employees, their capacity, potential
and performance.
 HR assessment: At this level of HR planning, managers analyze requirement of manpower at
firm. This analysis is done with the use of potential and available resources.
 Demand and supply forecasting: Individuals in a corporation are required at different positions
as per job profile. Here, requirement of employees are fulfilled with the help of both internal and
external resources.
 Formulating action plan: This action plan is generally depends on the deficit and surplus of
people within premises. According to this Posh Nosh Ltd. finalize new recruitment or termination
of personnel.

 Monitoring and control: It is the last step in HR planning where implementation of action plan
takes place (Scullion and Collings, 2011). As per the requirement, human resources are allocated
and stock of manpower is updated. Plan made by management is strictly monitored by experts
which will help mangers to recognize effectiveness of it.
2.3
Recruitment and selection is very important process of an entity which helps in employing
suitable persons for available jobs. As Posh Nosh Ltd. engaged in fast food business, offering eat in,
takeaway and catering services, so, it includes few steps in recruiting individuals. McDonald is another
franchisee that also engaged in fast food business.
Posh Nosh Limited
 In the first step of recruitment and selection, management collects all applications of candidates
(Mondy and Martocchio, 2016.). This application form consists of brief description about
applicant.
 At next stage collected applications are screened on the basis of required job profile and
qualifications of candidates.
 Selected people are called for preliminary interview held by HR. Here, applicants are asked about
their qualification, skills, knowledge and previous experience.
 At this stage, a short written employment test is taken by recruiter of Posh Nosh Ltd.
 Here, selected candidates are interviewed by HR team of firm. This interview is conducted by HR
department and is quite difficult and long process.
 Finally, individuals who are selected after final interview will be given appointment letter.
McDonald
 In the first step of recruitment process of McDonald includes online acceptance and screening of
applications.
 Then, telephonic interview is taken by recruiter and select appropriate persons for further process.
 After it a brief interview is taken by a member of HR department.
 Selected candidates have to go through online employment test.
 Then final interview is taken by HR professionals of McDonalds
 Then, placement of selected persons is done after physical examination

2.4
Both the organizations follow two different methods to recruit and select appropriate employee
for firm. Effectiveness of steps used in both entities is discussed under:
Posh Nosh Limited
Posh Nosh Ltd. does not include a long process and has simple steps in selection of personnel. At
initial stage it includes screening process which helps organization to eliminate a huge number of people
(Ployhart and Moliterno, 2011). After screening, HR department take a preliminary interview and test
which contribute in finding suitable and best candidates. As it is a small enterprise so, it does not required
to involve more steps and after final interview appropriate persons are selected for required job profile.
Recruitment and selection process followed by Posh Nosh Ltd. is very much effective in selecting
suitable employees for undertaking.
McDonalds
Process of hiring people under this entity is comparatively long than above one. It involves a
number of steps which consume lots of time of HR department. As it is a large enterprise, this process of
recruiting personnel is suitable for it. Online interview and test help management to select persons who
are expert or have adequate knowledge of operating computers. Here, individuals receive pre and post
orientation which is very beneficial for this process.
TASK 3
3.1
Motivation is a process or an approach which shows the reason to act or behave in a particular
way. It is very essential element for any corporation which directly affects the working of individuals in
an entity. It is such a method through which efficiency of people within workplace is boosted by
management (Guest, 2011). On other side, reward system shows the concern of persons over
implementation and formulation of various policies and strategies of firm. Both of these aspects are
interrelated to each other in order to satisfy news and wants of employees. Motivation is the way through
which working efficiency of individuals with in an entity is enhanced. Reward system is a part or type of
motivation which helps in motivating people at workplace.
There are so many theories of motivation such as Maslow’s hierarchy of need theory, Herzberg
theory, McGregor’s theory, etc. Posh Nosh Ltd. follows Maslow’s theory to motivate its staff members.
According to this approach, to meet the higher level needs of individuals, person has to first fulfill basic

requirement like food, air, shelter, clothing, water, etc. It is one of the best and oldest theory which is very
effective in motivating people to work more harder to achieve their higher goals and expectations (Kehoe
and Wright, 2013). Posh Nosh Ltd. also implements effective reward system where managers make
adequate decisions to offer reward to its workforce.
3.2
Job valuation is the process which assists in analyzing jobs of various persons at organization and
set the pay accordingly. It also includes different information which is given by management to its
employees related to various process of firm. Posh Nosh Ltd. is engaged in various jobs and job
evaluation is one of them which involve following key elements:
 Ranking: It is very common element of job evaluation where jobs are ranked as per their
importance and comparison. It is a great advantage for Posh Nosh Ltd. because it a simple and
inexpensive method to understand and analyze different jobs of firm. It has a drawback also that
it is not reliable in nature due to casual or common raring process and that why it does not
differentiate between jobs.
 Classification: Here, job descriptions are compared with pre estimated grade description. This is
also very simple and easy to handle (Harzing and Pinnington, 2010). Its main disadvantage is that
it is of uncertain nature and sometimes overlaps the grading system which makes it more
complicated.
 Point factor: In this method points given to various jobs are utilized to decide grades for
individuals. It includes larger and specific number of factors which is beneficial for this process.
There are some other factors also on basis of which payment and salary of person is determined.
Experienced and senior employees and staff members receive high pay compare to new comer.
Designation of an individual also affects the payment of that person. Working efficiency, skills,
knowledge, abilities, etc. also differentiate a person from another which will have a direct impact on their
salary and compensation.
3.3
As discussed above reward system is method to motivate employees towards their work and helps
in satisfying their needs and wants in positive way. By using this method, management will make
employees to work with full efficiency and perform their best to accomplish desires and goals of firm.
Posh Nosh Ltd. follows two types of reward system i.e. intrinsic and extrinsic reward (Cascio and
Boudreau, 2010). Intrinsic is a non monetary reward system which is provided to workforce of Posh Nosh
Ltd. to motivate them. It is of intangible nature which is given to people in the form of performance

appreciation, recognition, etc. On other hand, extrinsic rewards are tangible in nature and are offered in
monetary terms. It includes gifts, bonus, compensation, commission, coupons, vouchers, etc.
Posh Nosh Ltd. implements this reward system with in premises to motivate its workforce which
will help management in reducing employee turnover. It is one of the simplest method which is used by
every organization because development of employee helps in growth and success of business directly. It
attracts new comers towards functioning of entity and retain skilled and talented persons for long period
in the corporation (Armstrong and Taylor, 2014). It facilitated fair and equal growth opportunities for
both enterprise and workforce and also assists in making fair decisions related to undertaking.
3.4
Posh Nosh Ltd. uses different methods to monitor performance of employees within workplace.
These are the following methods through which employees are monitored by managers of this entity:
 Productivity report: It is the report that is made by HR managers of a firm which describes
various jobs perform by an individual. A separate report is made by management for every person
in firm (Boon and Den Hartog, 2011). It describes about production made by every employee
with in workplace. Through this report, employer of enterprise come to know about working
efficiency of its entire staff members which will help in determining performance of employees.
 Feedback: Feedback is also another effective method to monitor performance of people at Posh
Nosh Ltd. This is also a type of report which is shared by immediate manager to higher authority
to know various aspects of employees such as their production level, growth, behavior towards
their colleagues and work, etc.
 Accuracy report: It shows the end result of production and that assists in identifying the level of
performance of employees at Posh Nosh Ltd. With the use of this report, management will
effectively monitor performance of every person at entity.
 Variance analysis: This analysis helps in making or creating difference between results of set
targets and actual attained goals.
TASK 4
4.1
Cessation of employees or employee turnover are similar situations which has to face by each and
every corporation ones or twice or many more times in life (Jackson, Schuler and Jiang, 2014). There are
some common factors which have negative impact on every entity. Posh Nosh Ltd. also has following
circumstances which create situation of employment cessation:

 Lack of motivation is one of the reason of employee turnover
 Poor and unhealthy working environment
 Lack of growth opportunities for individuals
 Lack of support from higher authority
 Lack of satisfactory compensation and other benefits
 Inappropriate reward system
There are following methods through which Posh Nosh Ltd. may reduce high rate of employee
cessation:
 To reduce employee turnover, Posh Nosh Ltd. needs to adopt proper methods to motivate its
workforce. For this it has to plan effectively and required to use appropriate methods whether
monetary or non monetary to motivate individuals.
 An effective reward system must be adopted by Posh Nosh Ltd. Management needs to avoid
partiality and favoritism to reduce cessation of people.
 Posh Nosh Ltd. should facilitate equal growth opportunities for each and every worker and person
at every level of management.
 In Posh Nosh Ltd. workforce perform their jobs as per the guidelines of higher authority so, it is
responsibility of top management to facilitate support to its subordinates equally.
4.2
Each and every organization has different process in relation to employee exit. Some of the firm
may follow one month notice period while some may have two or three months (Farndale, Scullion and
Sparrow, 2010). As Posh Nosh Ltd. and McDonalds follow two different appointment processes, they
have two different employee exit procedures. Posh Nosh Ltd. includes following steps in employee exit:
 First of all employee will send resignation letter to its immediate manager
 Such manager will further send to top or higher authority of firm
 Then, authority will discuss with subordinate manager about exit
 Finally, management approve resignation of person and release him/her after serving one month
notice period
McDonald includes following stages:
 Employee will fill exit form
 Team leader will discuss upon it with employee
 Then, he/she will send to HR manager

 HR manager further send to top most employer of firm
 Management will discuss about it with team leader and employee
 Here, employee has to serve two months notice period
 Then, an exit interview is taken by HR professional before leaving organization
4.3
Management at Posh Nosh Ltd. has to follow legal and regulatory framework while employee
exit process. Usually employees are terminated by company when they find that the person is not obeying
well, not performing his duties, and not follow various policies and procedures of entity (Bloom and Van
Reenen, 2011). While termination or employee cessation Posh Nosh Ltd. has to take care of some legal
term like employment rights act 1996, equality act 2010, wages act, etc. These acts must be properly
evaluated while exiting employee from firm. To avoid legal consequences, Posh Nosh Ltd. needs to
follow an effective process in context to redundancy or dismissal. First of all managers need to collect all
evidence which prove default of employee. Then identify impact of such incident over the performance of
corporation. Then, after evaluating past performance and experience of such individual, he/she should be
terminated by following legal guidelines.
CONCLUSION
This report concluded that HRM plays a significant role in performing various functions of Posh
Nosh Ltd. It described about importance of HRM over PM which perform different functions at different
levels of management such as recruitment, selection, training and development, compensation, appraisal,
etc. This study described about several situations faced by Posh Nosh Ltd. in relation to maintain
manpower at workplace. A comparison is also made between Posh Nosh Ltd. and McDonalds on the
basis of appointment and exit process of employees.

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