Managing Human Resources: Different Contractual Methods and Their Impact on Organizational Effectiveness

This document explores the various contractual methods used by companies to improve organizational effectiveness. It analyzes the advantages and disadvantages of permanent full-time contracts, permanent part-time contracts, zero-hours casual contracts, and fixed-term temporary contracts. The document also discusses why organizations choose different contractual methods and their impact on employee engagement and performance.

MANAGING HUMAN RESOURCES

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Examine the various kind of contract in order to improve the effectiveness of organisation.1
Critically analysed how and why companies using different contractual methods with
appropriate examples..............................................................................................................5
CONCLUSION ............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Human resource management is a tactics approach where the company and organisation
deals in a such a way to gain a competitive advantage in their business. Human resource
management is a process of hiring, recruiting, selecting, providing orientation with employee and
their trade unions, ensuring employee safety and total healthy policy which is measurable. The
human resource management comprises of many function which helps in organisation to male
planning, organizing, directing and controlling. Generally it involve procurement, development,
and maintenance of human resource (Aravindakumar, 2020). Where is helps to achieve particular
objective, and organisational with their social goals which have their long term objective. Where
a major theme driven by HRM is that it is a multidisciplinary subject. It composes the study of
behaviour of management, psychology, communication, economics, and sociology.
Which helps to gain in team spirit and also helpful in the collaboration of team work. It is
never end process means also in a continual flow of process. Human resource department is an
who handle all aspects of employee and has different function like human resource planning and
controlling. Conducting job opportunities and interviews, training, compensating which also
helps to maintaining in relationship and and concern about safety issues. The human resource
management helps a organisation to control the move and flow of human allocation within the
company. It also make a suitable stage for the employee and make a profitable scenario for the
employee, creating a platform their they can utilise their skills and knowledge which helps to
grow in organisation and also fulfil the role of organisation and individuals. As per this, there are
two company who used their human resource in welled way in UK Sainsbury and Zara.
MAIN BODY
Examine the various kind of contract in order to improve the effectiveness of organisation.
Permanent full-time contracts:
The major type of employment in now day is full time employment which have an access
of contract which is for full time. These contracts are offered for a permanent designation or
position which is set to out the employee salary or hourly wage (Brears, 2018). Their are many
prospect of full time contract which include the holiday listed, pension benefits and leaves which
is details on the statutory sick pay. In UK, the selected firm like Sainsbury and Zara provide the
benefits to their employee which is held by the HRM team which take all the role as a
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responsibility for the employee. Zara provided the pension and total leave to the employee and
some privilege leave for their emergency. So in UK, company provided total usual benefits to
many of employee who have taking the full time contract in the organisation and give their
valuable time to organisation as part of core and helps to reach the organisational goals. In full
time contract there is any set of minimum number of hours that must work on a full time
contracts (Brewster, 2017). Moreover in some organisation the employer recognise full time
works as 35 hours/week. As a part of human resource the employer must give to their employee
are:
 A written statement of employment or contract.
 A statutory minimum level of paid during holidays
 a payslip showing all deduction which is taken or deducted by the organisation
 a minimum level of rest break
 maternity, paternity and adoption pay leave.
 Pay employee minimum wages
Advantages
1. Employee rights: contractor should gave some employee rights as the permanent
employee in a company (Cooper, 2018). In UK, Zara provide that opportunities to their
employee where they claim that they are the part of Zara and employee of Sainsbury have
the same rights.
2. Career development opportunities: This state that in the advancement in the career in a
permanent position is saturated by the in text of skill and knowledge.
3. Job security: full time employment contract is providing the job security.
4. Easier to plan personal and a family life: in the full time contract the timing of work and
wages are fixed and on the basis of that the family life is balanced.
5. Enhance CV: in that while working on a organisation is reliable for the up dated of CV
which create a impact while changing on career or position.
6. Easier to obtain credit: is some situation, it is easy to prove income as permanent
employee. This can helps to obtain the mortgage and other form of credit.
Disadvantages
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1. Lack of job security: permanent employee always don't have job security that they
imagine. Merger and sown sizing all have the potential to negative affect staffs (Garrote,
2017).
2. Reduce ability to evolve: the permanent employee may become expert in their filed may
be business and whsatever they choose to work which create a continually challenges
themselves in an efforts to remain relevant and valuable in changing the marketplace.
3. Limited earning potential: working on a single employer as a permanent employee have
limit your earning potential until the top pay scale is achieved.
4. Lack of flexibility: permanent employee may have difficulty in achieving and maintain a
work life balance., whereas worker have flexibility how they work.
Permanent part-time contracts:
A permanent part time employee is someone who gave their working potential to regular
basis and also doing work on their ongoing hours, but fewer hours a week than someone working
full time. In general the part time criteria have followed the work less than 38 hours/week and
regular pattern of hours or permanent employee or on fixed term contract for the organisation.
Part time employee are also granted for the leaves such as sick leaves annual leave, while on the
context of leaving they must give notice to end their employment (Hallberg, 2018).
Advantages
1. Permanent part time contract feasible working hours in order to employees perform their
work in the evening or weekends.
2. These contract using in most of organisation in order to easily handle work load due to
easily manage work.
3. On the basis of these contract employees is ability and capability to have a larger payroll.
It includes work divided with larger workforce in small business enterprises with
diversity.
4. HR manger recruitment of employees on these contract so provides greater flexibility in
order to adjust any kind of situation or circumstances.
Disadvantages
1. They are biggest drawback of these contract HR manger hire employees on part time
contract so they cannot perform work effectively and show less dedication towards the
works (Holland, 2019).
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2. Difficulty to analysed the work performance and working hours of part time job.
3. One of the disadvantage is employee's not get income and other benefits.
4. They also affect employee's career advancement which impact on their career
opportunities.
Zero-hours casual contracts
These is contract which refers to employees is not bound or accept the work from
employer in order to employer provide minimum and sufficient working hours to employees
whereas they are not offered to extra work to employees. Under these contract employees have
know about working hours and time on that basis they performed work and then sign agreement
ans contract (Murray, 2017). These kinds of contracts usually used in health care sector,
education sector and hotel industry. It is contract which said that employer is bound to pay
minimum amount or wages to employees.
Advantages
1. These contact is flexible because employees work on the basis of specific time frame.
2. It is biggest benefit for the employees who as the part of colleges or handle to some other
care responsibilities perform work.
3. Under these contract one of the greater advantages in order to employees working hours
fixed so work life balance concept (Özdemir, 2018).
4. On the basis of these contract individual select time and place of working.
Disadvantages
1. These contract has one of the drawback their no security of job with no fixed income.
2. Employees has no choice or idea to get the opportunity they received next shift of work.
3. Individuals have no options to cancellation of work at last moment.
4. In these contracts there more chances of uncertainties are arises for employees.
Fixed term temporary contract:
These contract refers to which HR manager hiring the employees for specific period of
time. On that basis they offered job specific period of time and employers sign agreement and
contact of employees. These contract not come under as temporary and their termination of
employees will not on fixed period of time but employers serves terminated notice. Those
employees which refers who have agency of contract or they recruiting trainee considered as
fixed term contract but there working period on temporary basis. Under these contact employees
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hired on fixed period of time in order to first six month period considered as temporary employee
after than considered as permanent (Pichler, 2020).
Advantages
1. One of the greater advantages of employees employers provides valuable experience
certificate who are working within specific period of time.
2. Under these contract employees provide all kind of benefits to employees which is most
of similar as permanent term contract.
3. Under these employees have specific period of time so perform their work effectively.
4. Employees contract and sign agreement in order to not bound for long term commitment.
Disadvantages
1. Under these contract employees have not long term security of job after completion of
specific period of time (Seaward, 2017).
2. In present context, there are individual face so many challenges and competition in
market so they have no permanent position and growth in career because they perform
job in permanent position.
3. Individual faced so many challenges at marketplace so on that basis required more
knowledge and skilled to perform job effectively.
4. Those individual have working for longer period of time under these contract which leads
to make changes in CV because recruiter are looking at CV.
Critically analysed how and why companies using different contractual methods with appropriate
examples.
Organisation using different contract approaches on that basis they hiring the employees.
It includes various aspect as information which relates to rights, responsibilities, working hours,
duty and role of employees and employment condition. It considered as agreement and contract
between the employer and employees which formulate good relationship both of them. These is
responsibility of HR managers which adopt most frequently fixed term and permanent contract
laws. It totally depends on HR department due to using which kind of contract on that basis
considered the clause and make agreement. When mangers of Zara and Sainsbury's using
permanent contract law so developing healthy relationship with employees and provide the
various opportunity for career development and accordingly plan for future. In addition to these
employees perform their duties and responsibility so it leads to employees engagement and
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shows the dedication towards the work. On that basis organisation developing new strategies due
to easily achieving organisational goal and objectives. Employees perform their work with full of
dedication under fixed term contract and perform work on regular basis so effectively attain their
targets. Employers sign with employees on agreement so on that basis they provides healthy and
secured working condition so the improve the performance (Sharma, 2016). As per the new
clauses add in contract which relates to wages are increased on the basis of hours of staff. Along
with this, they provides higher pay to individual due to various kind of departmental stores at
different time. Mangers responsible to divide the work within team as well as encouraged and
motivation of employees towards the work in order to developing team spirit within team
members. It considered as enhancing employees performance and productivity and they have
able to perform operation in smoothly. In relevance of organisations, they invite more job
applications, scrutinize and select best application in order to choose best suitable and qualified
employees who perform the functions easily. Hence, these kinds of contract plays vital role in
order to mangers develop positive working environment which directly impact on performance
and improving effectiveness of organisation.
Why Organisation using contractual method
It refers to agreement and contract between two parties which are involved and bound to
follow such circumstances and condition which are considered under the contract. There are
various kind of contract such as permanent contract, Zero hours casual contract and many more
which developing by top level management in order to improve performance and achieving
objective of company (Singh, 2016). It includes various contract which helps to building the
relationship with employers and employees. It is duty of managers to provide proper working
condition, organisation structure, working environment and so on. On that basis of these
implement their various activities which helps to reduces the conflicts between the employee's
and smoothly run the business operations. It considered as maintain and effective management of
human resources, trade relationship, asset value and many more which includes permanent
employment provide various benefits to employees as well as employers. In addition to this, the
most significant approach under these contract as retirement benefit and at the time of retirement
period of individuals to get collected amount of security for old age. On the basis of employees
perspective with sign on contract and agreement in order to easily hold the individual for longer
period of time. HR managers conduct various activity such as employees engagement
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programme, training & development, induction of new staff. Employers of organisation provides
various facility to employees in order to easily attract qualified, capable individual who are
looking for job security. It includes various benefits, perks and health benefits under these
contract in order to motivate and retain employees for longer period of time (Tasie, 2018). There
are various perspective defined under these contract such as stability, employment condition,
predefined income and many more which employers fulfil all the condition which are mentioned
in the contract. They are various other benefits are included in permanent contract such as
healthcare, job security, guaranteed income and retirement so they willing to sign on agreement
which are provided by organisation. Moreover, there are ample numbers of reason due to which
organisation adapting approaches in order to decreasing cost , dispute between employee's and
recruiting more hired and qualified personnel who perform the activities in effectively.
Further, Zara and Sainsbury's both of them leading organisation which adapting effective
procedures, legislations which relation to human resources management in order to developing
positive working environment which enhancing performance of employee's at workplace. Their
basic pay decided on the basis national minimum wages act such as included other schemes like
pension benefit, provide insurance benefit for employee's of Zara and Sainsbury's adopt these
schemes effectively (World Health Organization, 2016). Managers of organisation ensure in
order to provide their team members healthy secures and safety working environment which
leads to easily attained the daily targets. They developing efficient working condition to
individuals like arrangements of rest rooms, purify water, canteen facility, breaks and so on. On
that basis HR mangers are provide the sufficient working hours to employees so they able to
easily completion of work within specific period of time. Employees has job security under
terms and condition of contract which related to training and induction programmes provide to
enhance potential of staff. Top level management of Zara and Saunsbury's to adapting effective
method in order to avoid all legal practices and disputes which arise in future. Under these
contract they clearly mention or stated employment conditions, minimizes conflicts and
confusion at workplace. The main purpose of these contract and sign by employees in order to
smooth running of business function, developing new strategies in order to expansion of business
operations. It clearly stated their roles, responsibilities and working conditions in order to
individual clearly all the point of contract. Contract management is legal procedures which
assists by top management of Zara as well as Sainsbury's to motivated their employee's towards
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the work through job security and stability. On that basis effectively perform business functions
which easily achieving the goal and objectives of organisation (Shekhar, 2016).
Conflict management-: These is function or part of management which effectively
adapting by organisation in order to reduces dispute and conflict between the employee's and
employers. It is formulated by HR managers in an organisation due to clearly mention the rules
and regulation which leads to reduce the conflicts and improving effectiveness of organisation. It
is essential to follow such condition and situation in order to perform work effectively and
efficiently. It clearly render fair idea to employee's about their roles, responsibilities and
developing relationship. Therefore, it is essential concept which dealing within contract on the
basis of different condition and situation are implemented in order to increasing the profitability
and productivity of company (Singh, 2016).
Enforce Compliances-: There are ample number of rules and condition which includes in
contact management in order to helps in Zara as well as Sainsbury's which leads to determine
terms and conditions of employment within in organisation. It helps to developing legal
procedures, compliances, conditions, situations and many more which essential to create
transparency because easily handle disputes in an efficient manner.
CONCLUSION
From the above report it has been concluded that, managing human resources in effective
and efficiently in order to easily achieving organisation goal and objective of company. Human
resources is valuable assets of organisation which adding value in day to day operations in order
to enhancing profitability and productivity of company. It includes various kinds of contracts
which clearly stated such terms and condition in order to developing agreement or contract
between the employers and employee's. It considered several factors such as nature of job,
duties, roles and responsibilities, working conditions of work force. They are analysed various
contract such as permanent full time, zero hours, permanent part time and fixed term contract
adapting effectively in organisation. In addition to this, discussed the advantages and
disadvantages for both employee's and employers in relevance of contract. Further, provide the
various information related to contract in order to why and how organisations are implement
effectively to adapting contract management approach due to easily achieving the organisation
goal and objective of company.
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REFERENCES
Books and Journals
Aravindakumar, A., 2020. MANAGING AND UTILIZING HUMAN RESOURCES IN AN
ORGANIZATION WITH REFERENCE TO HIGHER EDUCATION. Editorial
Board, 9(8).
Brears, R.C., 2018. Blue and green cities: the role of blue-green infrastructure in managing
urban water resources. Springer.
Brewster, C., 2017. The integration of human resource management and corporate
strategy. Policy and practice in European human resource management, pp.22-35.
Cooper, C., 2018. Managing tourism knowledge: a review. Tourism Review.
Garrote, L., 2017. Managing water resources to adapt to climate change: facing uncertainty and
scarcity in a changing context. Water Resources Management, 31(10), pp.2951-2963.
Hallberg, N.L., 2018. Managing value appropriation in buyer–supplier relationships: The role of
commercial decision resources. European Management Journal, 36(1), pp.125-134.
Holland, P., 2019. Managing Talent: A Contemporary Issue or a Case of Old Wine in New
Bottles?. In Contemporary HRM Issues in the 21st Century. Emerald Publishing
Limited.
Murray, A., 2017. Managing the training load in adolescent athletes. International journal of
sports physiology and performance, 12(s2), pp.S2-42.
Özdemir, F., 2018. Diversity Management–Towards Managing Capabilities. Journal of Human
Resources Management Research, 2018, pp.1-11.
Pichler, S., 2020. MANAGING DIVERSITY AND INCLUSION THROUGH MANAGERIAL
INTERPERSONAL SKILLS (MIPS). Pushing our Understanding of Diversity in
Organizations, p.183.
Seaward, B.L., 2017. Managing stress. Jones & Bartlett Learning.
Sharma, A., 2016. Managing diversity and equality in the workplace. Cogent Business &
Management, 3(1), p.1212682.
Shekhar, S., 2016. Managing the reality of virtual organizations. Springer India.
Singh, A., 2016. Managing the water resources problems of irrigated agriculture through
geospatial techniques: An overview. Agricultural Water Management, 174, pp.2-10.
Tasie, G.O., 2018. The Indispensability of Managing Organizational Human Resources
Judiciously. UKH Journal of Social Sciences, 2(1), pp.15-16.
World Health Organization, 2016. Global strategy on human resources for health: workforce
2030.
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