This report is a detailed study of various aspects related to the management of human resources within an organization, including theories and HRM practices.
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UKCBC Topical issues on Managing Human Resources Alin George ChircaID 13174 1
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Contents Introduction...........................................................................................................................................3 Task 1....................................................................................................................................................4 1.1. Explain Guest’s model of HRM as applied to the organisation of your choice...........................4 1.2. Choosing two organisations of your choice compare the differences between Storey’s definitions of HRM, personnel and IR practices................................................................................5 1.3 Assess the implications for line managers and employees of developing a strategic approach to HRM for any organisation of your choice.........................................................................................6 TASK 2.................................................................................................................................................7 2.1 Explain how a model of flexibility might be applied in your organisation..................................7 2.2 Discuss the types of flexibility which may be developed by your organisation...........................7 2.3 Assess the use of flexible working practices from both the employee and the employer perspective.........................................................................................................................................8 2.4 Discuss the impact that changes in the labour market have had on flexible working practices....9 TASK 3...............................................................................................................................................10 3.1 Explain the forms of discrimination that can take place in the workplace using examples of recent discrimination cases which has made the news.....................................................................10 3.2 Discuss the practical implications of equal opportunities legislation for an organisation..........11 3.3 Compare the approaches to managing equal opportunities and managing diversity. You should give examples from a selected organisation and discuss the similarities and differences in their approaches to managing equal opportunities and diversity..............................................................11 Task 4..................................................................................................................................................13 4.1 Select an organisation you work or have worked for, identify and compare the performance management methods used..............................................................................................................13 4.2 Assess the approaches used to managing employee welfare in your organisation.....................13 4.3 Discuss the implications of health and safety legislation on human resources practices............14 4.4 Evaluate the impact of another topical issue on human resources practices...............................15 Conclusion...........................................................................................................................................16 References...........................................................................................................................................17 3
Introduction This report is detailed study of various aspects related to Management of human resource within organisation includingvarious theories and human resource management practices which significantly affect the effectiveness of the organisation.There will be explained various aspects related to the theoretical knowledge of the human resource management within organisation that can be used in further achievement of the organisational goals and objectives. We will have knowledge about the different aspects related to the effective management of the human resource within organisation. There has been taken different organisations for the purpose of making others understand about the various aspects of human resource management required within an organisation. 4
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Task 1 1.1. Human resource management is defined as the techniques, policies and procedures which are using by the organisations for effective management of its human resource that are making their efforts for making the organisation to achieve its goals and objectives. It comprises of different functions such as recruitment and selection, motivation, compensation etc.In the year 1987 there has been developed Guest model byDavid Guest which is focused on the assumption that the traditional approach of personnel management is different from the human resource management in different aspects (Kramar, et. al 2013). The basis of this model is an assumption thathuman resource management is effective and required to achieve organisational goals and objectives.Further, it also comprises of 6 factors which are important to be considered from the perspective of personnel management. This is because the overall efficiency of an organization is influenced by these factors.Following are the factors which are included in the Guest modelhelp in achieving the objectives of the business (Kramar, et. al 2013). 1.HRM strategy 2.HRM practise 3.HRM outcomes 4.Behaviour outcomes 5.Performance outcomes 6.Financial outcomes. Analysis of Guest model of HRM defines various aspects through which the overall operations of the firm can get impacted.The analysis shows that this model is similar to the Harvard model of HRM and there includes commitment aspects which showed the relations with valued business consequences (Sparrow, et. al 2016). Barclaysis a financial institution based in UK and providing different financial services to the customers and expanded its business in different countries around the globe. The expansion of the organisation is showing the huge number of human resource involved in the organisational activities and 5
required to be managed in effective manner. The company is adopting Guest model to manage its human resource in effective manner. The company adopted this model for effectiverecruitmentandselection,organisingdifferenttrainingsanddevelopment programmes for employees that can help in making positive working environment which can make impact on the overall effectiveness of the organisation (Sparrow, et. al 2016).This will help in achieving effective level of productivity within organisation and also make positive impact on the quality of the services providing by the company due to effectively managed human resource in company. 1.2. There are different models of HRM which can be used by organizations and can lead to the success of the firm.Storey’s model of HRM is focused on the making theory which differentiates between the commitment of the employees and their actual capacity to perform. This theory defines the importance of the availability of HRM and its function in the strategies of organisation which are planned initially in the organisationthat aid in facilitating the future aspects and functions of the organization.The merger of HRM with the overall organisational activities and decisions can lead to effective growth of the organisation (Härtel, et. al, 2015). In Barclays there has been adopted effective human resource management and its activities which help in achieving the organisational goals and objectives in effective manner. This is done by the company by effectively adopting the HRM in the overall strategic management of company and this leads to effectively show the importance of the organisation (Jackson, et. al., 2012). Royal Bank of Scotland is financial company which is providing financial services to customers and employed huge number of employees making their efforts for the organisation to achieve their goals and objectives. The company is adopting personnel and IR practices in which there are defined the human resource is liable to follow the conditions included in the contract between employees and organisation. There is taken participation of the employees in the process of taking effective decisions which make the process slow but increases involvement of employees in organisation (Härtel, et. al 2015). 6
Keyrelationships:AccordingtoStory’sdefinition,HRMisaboutmaintaining customer relationships. In contrast to this, personnel management focuses on labour management. Management action: As per storey’s definition, HRM is guided by business needs. This is different from personnel management which is guided by procedures. Behavioural focus:According to Storey’s definition, the behavioural focus of HRM is on mission and values of business while that of personnel management is on customs and practices. Role of management: In HRM, the role of management is that of transformational leadership. This is different from the role of management in personnel management which is transactional leadership. 1.3 In every organisation there played important role by the line managers who are liable to take decisions and make them implemented in effective manner to achieve the organisational goals and objectives. There are different aspects which are required to be adopted by the line managersforeffectivelyprovidingtheirservicestomanagehumanresourceswithin organisation (Stone, 2014). For effective implication of human resource activities within organisation there are taken various management steps which can help in making it possible to effectively adopt HRM practices in the organisational overall running. For implementing HRM activities in the strategic approach and adopt any model of HRM in the organisation like Barclays there must be taken following steps which can make effective results. Strategic decisions- Line managers are required to take effective and strategic decision for the organisational effectiveness and also consider different aspects of HRM activities while taking these decisions. Key managers of Barclays consider different aspects related to its human resource while taking any decision within organisation (Stone, 2014). HRM policies- Key managers of the company are liable for making effective policies for the management of human resource within organisation whichcan alter the results of the company.In Barclays there are framed effective policies for human resourcewhich will aid in streamlining the various processes of the company(Jackson, et. al., 2012). Delegating the responsibilities-It is the responsibility of the key managers to take effective decisions related to delegation of authoritiesand responsibilities to the employees which can 7
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help in managing the human resource in effective manner of the company.Certain processes have been adopted by the organisation in efficient manner and that further leads to the involvement of employees in the company (Nankervis, 2011). Implications for line managers: In order to adopt a strategic approach to HRM, the line managers have to change the day- to- day management of people. Further, strategic approach will imply that the operational costs of business will increase which will have to be managed by the line managers. Moreover, the implication on line managers will be to provide technical expertise and monitor the work processes. Implications for employees:There are various implications for employees for adopting a strategic approach to HRM. They will have to adopt the changes that have been brought about in the work processes. TASK 2 2.1 The term flexibility is regarded as the ability to change with the change in theconditions and requirements of the market and environment which provide effective approach to accept and adopt the changes. The business environment is dynamic and there comes different changes and in the pattern ofworking which can alter the ways in which the organization works. So it is required to be changed with the changing environment and fulfil the requirement. This flexible model provides effective motivation to the employees to change themselves in accordance with the requirement of the environment and help in achieving organisational goals. Flexibility in the business environment and different aspects related to the overall business (Bach & Edwards, 2013). Barclays is a financial company which works by considering different legal, social, political aspects which are dynamic and there is potential for changes in them, make impact on the overall working of the company. So the company has adopted the flexibility model in which the company have scope for the changes within business environment for the employees of the company (Nankervis, 2011). Flexibility in working can provide effective motivation to the employees of the company that can be noticed in their performance as in there is increase in their performance level. There are different aspects related to the flexibility model including the job specification which helps in providing the right job to the right person. 8
Flexibility in the decision making is related to the scheduling of the work in effective manner that can make impact on the overall effectiveness of the organisation. Application of model of flexibility A model was proposed by John Atkinson which is known as the flexible firm. This can be applied in Barclays by employing sufficient number of permanent full time employees which constitutes the core workforce. A second element, known as the periphery workforce, will comprise of the employees who have been employed on the basis of numerical flexibility. Application of Atkinson model at Barclays will require the employments of sub peripheral groups and will comprise of jobs that have varying degrees of job security. 2.2 Flexibility model includes providing flexibility within the work model of the employees that can improve their performance in effective manner. In organisation like Barclays there are taken various steps related to providing flexibility to the employees and motivate them in effective manner (Thomson Gale 2013). Following are the flexibilities providing by the company to its employees. The employees of Barclays have flexibility to take effective decision for scheduling their work in accordance to their convenience. Employees of the company can take decisions related to the working shifts and timings in accordance to their convenience which can make impact on their level of motivation and can help in enhancing their performance. There is flexibility to go out at the lunch time and to take leaves defined by the organisation and get pay for those leaves. There must be flexibility to apply to transfer in different branch of the company which can be in different country also (Thomson Gale 2013). There are various aspects that need to be taken into account so as to provide flexibilityin the working environment which is different facilities providing by the company that can be provided to the employees and make them feel important. There should be provided flexibility to communicate within employees who can help in identifying their views and ideas and can help in resolving their problems in effective manner and help in achieving effective performance (Bach & Edwards, 2013). 9
Types of flexibility Numerical flexibility: This is the ability of the management in which rapid adjustments can be made to the composition as well as the number of workforce. The Barclays can adopt numerical flexibility by changing the composition of its workforce. At the same time, the workforce number can also be increased. Functional flexibility: It can be applied by adding more tasks into the working day. Hence, it will bring about work intensification. Temporal flexibility:It can be applied by making adjustments to the working day or working year. There can be use of annualized hours and flexitime arrangements. 2.3 Employees’ perspective With the presence of flexibility the working environment in the organisation is enhanced which can help in effectively managing employees of the company and motivating them in effective manner to improve their performance and level of involvement in the organisation. Flexibility is effective in the working practices whichfurther impact on the efficiency of the employee and employer perspectives(Wilton, 2013). Flexible working situations helps employees to make them comfortable in working place and make them involved with their work. Employer’s perspective Increased performance of employees enhances the productivity of the company which is a situation of benefits for the employer of the company so it is beneficial for them. This flexibility model helps in retaining employees and organisation for long term and takes advantage ofthe various areas of the organization with which its operations can be improved. So it is effective for both employee and employer to have flexible working conditions in the organisation (Wilton, 2013). 10
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2.4 There are different aspects that need to be considered by an organisationin effective manner so that it can achieve effective growth in the market. Changes in the labour market can make impact on the changes in the overall flexible working practices in the organisation like Barclays. Changes in the labour market is seen in different countries which can make impact on the various decisions and availability of resources within organisation that can make impact on the overall results of the company which can be positive and negative (Bratton, 2012). Changes in the technology and its up gradation can make impact on working flexibility which can be resulted in the positive impacts on the industry. There can be various changes like demographic changes, labour availability, and variation in the average age of the employees in the market.All these situations and conditions make impact on the overall flexibility practices of the organization. The employees demand flexibility base on different aspects such as leaves, trends and market conditions. Therefore Barclays have to change their flexibility practices and incorporate various types of flexible practices as demanded by the employees. As there are more nuclear families and both the partners are working, Barclays will have to adopt flexible arrangements for the employees.These changes in the pattern of labour and their activities can help in making the activities of the company easier and more effectiveand can help in attainment of the goals and targets of organization (Cascio, 2013). 11
TASK 3 3.1 Discrimination is the differentiation between the employees of the company on the basis of different aspects related to them. Employment discrimination can be defined as the way of handling employees in anorganisation which can affect the performance leveland also their level of involvement within organisation which can make impact on the overall effectiveness of the organisation (Buckley, et. al 2016). There are different forms of discrimination which can take place in any organisation. In the workplace there should be considered different legislations and regulations which are formed to prevent employees from any kind of discrimination which is involved in all the activities of the company. Following are the potential forms of discrimination (Tomal & Schilling, 2013). Hiring Discrimination- There can be discrimination at the workplace related to the hiring and recruitment which can be due to the reason of giving priority to others. This act is defined as the violation of the equal opportunity act which provides equal opportunity for the selection in the organisation. There can be discrimination related to the unfair conditions of recruitment and unfair dismissal, retrenchment and demoted and this can be treated as the policy of the organisation.ApendingcaseofMarymountManhattanCollegeisacaseofhiring discrimination in which a 64 year old dance instructor was not hired in the college due to her age (Buckley, et. al 2016). Gender discrimination-It is likely that employees may face discrimination on the basis of gender.This discrimination can be based on the various factors like recruitment, promotion, reward, decision making and participation. Case of Bank of Albuquerque was filed by the long term management for the gender and age discrimination in the organisation. Discriminationarisingfromdisability-Thisformofdiscriminationisbasedonthe discriminative behaviour with the disabled people in the workplace. Employees cannot be discriminated based on their disability as in they must be treated equal and provided equal opportunities and rights. Women with dyslexia won the case of disability discrimination against his employer in Starbucks (Tomal & Schilling, 2013). 3.2 12
There are defined various aspects in the process of the implications of the legislation of equal opportunities in the organisation which influences the employee motivation and retention. This in turn has impact on the achievement of goals and objectives of the company.Equal opportunity in the organisation can be defined as providing effective and equal opportunity to work, making decisions and scope to grow. There is required to adopt equal opportunity act and practices in the overall effectiveness of the organisation which can make impact on the effectiveness in the working policies of the company. There have been adopted equal opportunities at the work place of the EY which is financial company providing its services in different segments and employing huge number of employees which make it requirement to adopt the Equality Act 2010. Implication of this act in the strategic plan and overall business environment leads to the overall effectiveness of the organisational employee retention level and its different aspects (Tomal & Schilling, 2013). Equal opportunity Act is a legal requirement of the companies to adopt this in the actions of the company which can affect the handling of the overall activities in the organisation of the employees of the company. ForimplicationoftheEqualOpportunitieslegislationbyEqualityAct,2010inthe organisational environment and activities which can make impact on the overall effectiveness of the employee retention and leads to effective employee involvement within company. Equalbehaviourcanbeleadtomotivatedemployeeswhocaneffectivelyachieve organisational goals and objectives that can make impact on the overall effectiveness of the organisational results (Azmi, et. al 2015). Practice implication of Equal Opportunities Legislation is that EY will have to change its HRM practices in a manner that equal opportunities are provided to the employees. This implies that the HRM practices like recruitment, selection, training and development will have to be planned and organized in a manner that there is no discrimination among the employees on the basis of gender, colour, age, income etc. 3.3 Allorganisationsarerequiredtohaveworkingenvironmentwhichsupportsequal opportunities and diversity by maintaining equality which can help in effective employee retention and loyalty that can make impact on the organisational effectiveness.There are definedvariousaspectsinorganisationwhichsignificantlyinfluencestheemployee 13
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performance(Azmi, et. al 2015). EY is a multinational financial service provider company which is making all the policies and business environment which can make impact on different aspects of business. There are adopted different approached by the company to maintain equal opportunities within organisation for its employees who are liable for providing effective services in the company (Tomal & Schilling, 2013). There is established effective communication channel by the company in its working environment which is helping in creating environment in which it is possible to communicate with employees and flow of information can be effective that can make impact on interaction level in the organisation. Opportunities are providing by the company to all the employees in every aspect which can make impact on their level of involvement in the organisation and motivation of employees making increase in their performance and make impact on the overall effectiveness of the company. EY is providing various opportunities and decision making power to the employees making impact on the employee retention and loyalty (Tomal & Schilling, 2013). EY is effectively planning for the rewards and promotions to the employees based on their performance and considering all the aspects related to the equality act which can make impact on the motivation level of the company and make it effective to take decisions related to the overall performance of the company. There are required to consider different aspects of performance of employees which is based on the decisions taken by the company. The approaches to managing diversity and managing equal opportunities can be compared. Diversity can be managed by tolerating individual differences. As compared to this, another approach is effective communication with culturally diverse workforce. This requires taking care of the verbal and non- verbal communication according to the culture of the individual. Third approach in this area can be management of diverse career paths and aspirations. 14
Task 4 4.1 In Barclays the method that get utilised for the purpose of the performance management is Graphic rating scales and according to this method rating scale make inclusion of list of assigned duties along with performance standards and a scale of 1 to 5 in order to rate the performance of employee. It is the easy and quick methods of evaluating the employee performance among the different and larger departments (Wells-Lepley, et. al 2015). There are various other methods are also available that get discussed below such as: - Management by objectives: - As per this method employees performance is measures with the effective of managerial or supervisory positions. According to this method they identify goals of employee and also identify the necessarily required resource in order to achieve their goals. After this they set adequate time line in order to attain their set goals. So in order to evaluate the overall performance of employee, manager effectively evaluate the goals achieved by the employee along with all other factors such as used resources and timeline (Wells-Lepley, et. al 2015). Forced ranking: - As per this method overall employees are segregated into three parts such as top performers (in which 20% of the population included), average performer (70% of population is included) and lowest performers (10% of total population). Under this method employee's past performance or their achievements taken in to consideration in order to rank themselves whereas they can't compare the current or recent performance of the employees in order to measure their immediate efficiency (Wells-Lepley, et. al 2015). 4.2 Barclay's make use of effective approaches in order to manage employee welfare as they adopt intra mural facilities (in order to make employee welfare within the premises) and extra mural facilities (in order to make employee welfare outside the premises) (Gruman, et. al 2011). Within the premises Barclays: - 15
take care of the safety and cleanliness within their working premises in order to safeguard their employees. provide their employees adequate safety in the form of security guards at the entry and exist gates. render canteen services in order to facilitate their employees (render one time meal to their respective employees) arrange rest rooms, games room, recreation rooms, etc. for their employees in order to do relax or make them refresh(Gruman, et. al 2011). arrange medical services such as dispensary, health education, counselling, 24*7 Ambulance services render special arrangements for female staff in the form of maternity leaves, medical treatment to child and mother, etc. medical care. render them adequate training and development sessions in order to enhance their employees capabilities. provide them adequate loan facilities in order to help out their employees in the emergency situation or in the situation of need (Gruman, et. al 2011). Outside the premises Barclays: - provide them accidental insurance to their every staff member make adequate reimbursement of the medical bills if employee took treatment from their specified hospitals, etc. provide educational facilities to their respective employees in the form of distance learning. also provide housing facility for a time period in which the employee need to arrange residential place for their purpose (Gruman, et. al 2011). 4.3 The implication of health and safety legislation on human resources practices are: - As a result of health and safety legislation, theyneed to train and educate their employees in order to follow the safety measures to remain safe from getting infected to the diseases. Further, EY Limited as has to ensure that it has necessary arrangements in place to face the situations of fire outbreak and other health hazards. 16
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Protective clothing needs to be provided by the HR department to the employees. Employee welfare schemes need to be introduced within the organization. They tried their level best in order to make continuous improvement within their health and safety within their respective organisation (Jones, 2010). Itbecomeimportantforthemtomakeeveryoneawareaboutthemedical consequences in order to safeguard their employees. They need to build up new health safety measures in order to protect their employees. They need to run health and safety awareness programs so that their employees become much aware about the diseases and their precautions (Jones, 2010). They become highly focused over following good housekeeping facilities in order to make their working place free from diseases. If required then distribute safety clothing and make use of proper equipments. In every health and safety activity they need to involve their employees in order to protect them as well as make them aware about the harm (Jones, 2010). 4.4 Diversity management is another topical issue that significantly impacts human resources practices as they need to made effective changes in their processing.With this they need to do various changes such as: - They need to arrange sessions in order to make their employees aware about the issue of diversity in workforce. They need to implement adequate changes as the development and training practices will have to be designed according to the diverse workforce taking into consideration their cultural norms(Snell & Bohlander, 2013). They need to indulge their employee or make their employees participate in the activities in order to reduce the negative influence of the topical issue. 17
Conclusion In the end it is concluded that Human resource management plays a major role in managing employees within an organisation. They perform diverse activities in order to manage as well as take care of their employees along with they are also held responsible in order to develop flexibility within the organisation so that their employees perform in effective manner. It's their responsibility to render them equal opportunities to their respective employees for their respectivegrowth. Withthe help of it they effectivelytry to satisfy theirrespective employees and retain them adequately. It helps in reducing employee turnover ratio within their organisation. Organisation follows different employee welfare approaches in order to safeguard their employees. Health and safety legislation put adequate impact over the human resource activities as they need to implement these in their organisation as well as make their employees aware about it. 18
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