Human Resource Management Impact

This assignment delves into the profound impact of human resource management (HRM) practices on organizational success. Students are tasked with examining various HRM strategies and their effects on employee attitudes, behaviors, and ultimately, organizational performance. The analysis should encompass mediating mechanisms that link HRM practices to desired outcomes, supported by relevant academic literature and real-world examples.

Human Resource
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Difference between personnel management and human resource management:..................1
1.2 Function of human resource management in achievement of organisational purposes:.......2
1.3 Role and responsibilities of line managers in Human resource management:......................3
1.4 Impact of legal and regulatory framework on Human resource management:.....................4
TASK 2............................................................................................................................................5
2.1 Reasons for human resource planning in the organisation:..................................................5
2.2 Stages in human resource planning for requirements:.........................................................5
2.3 Recruitment and Selection process in two organisations:.....................................................6
2.4 Effectiveness of recruitment and selection techniques in two organisations:.......................7
TASK 3............................................................................................................................................7
3.1 Link between motivational theory and reward:....................................................................7
3.2 The process of job evaluation and other factors:..................................................................8
3.3 The effectiveness of reward system in different context:.....................................................9
3.4 Methods used by organisation to monitor employee performance:....................................10
TASK 4..........................................................................................................................................10
4.1 The reasons for cessation of employment with an organisation.........................................10
4.2 The employment exit procedures used by two organisations.............................................11
4.3 The impact of legal and regulatory framework on employment cessation arrangements:..11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management is process which is concerned with the workforce planning
and movement in the organisation. It looks after the needs and wants of the personnel as to boost
their motivation and productivity. The main motive behind developing a human resource
department in the organisation is that it provides strategic approach and objective to manage the
staff (Armstrong and Taylor, 2014). The HR department is responsible for the recruitment,
selection, promotion, demotion, compensation and performance management of the most
dynamic force existing in the organisation that is the human resource. In this report the role of
newly formed HR department will be analysed and how it will help Posh Nosh Ltd which have a
ten outlet chain in the London area. The company is flat structured and till now all the HR
powers were with its CEO. This report will cover every aspect of HR management which will
assist the business in growing.
TASK 1
1.1 Difference between personnel management and human resource management:
During the industrial revolution the people element of the organisation was used as a
machine or tool. The owners of the company use to get the commitment of people with the help
of rules and regulation and their compliance. It was considered as a forceful follow up of the
conditions which were against the people wishes. The whole concept was named as personnel
management. The managers use to think of targets achievement and employee benefit was not in
their list.
Human resource management changed the whole scenario. It is a concept which state that
the employee should be put on to right job at right time. HRM has been a flexible approach
which is adapting new methods and techniques as to make itself more prominent (Armstrong,
2011). The HR manager now tries to gain the employee commitment via facilitating him with
better environment and opportunities. To understand the different between personnel
management and HRM is mentioned below:
Basis Human resource management Personnel management
Definition It focused on utilising the workforce It focused on achievement of target
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in a efficient and effective manner,
while also keeping employee benefit
in mind.
and getting commitment of people
via compliance of rules and
regulations.
Type of
Approach
It is a modern approach Very basic and traditional approach
Treatment of
workforce
Strategic Asset Common tools and machine
Pay Performance appraisal and
evaluation
Job description and evaluation
Role Transformational Transactional
Actions As per the business requirements As per the requirement of procedure
Decision making Very quick and speedy Very slow
The HRM is a better approach which will assist the company in utilising the manpower in
most beneficent and effective way.
1.2 Function of human resource management in achievement of organisational purposes:
The management of human resource in the organisation is very necessary and important
as this will ensure that the company is able top reach its goals and objectives in a efficient and
effective manner. It is a strategic approach which assist the managers in managing the people
element of the organisation. The HR polices should be developed very carefully in a SME as it
can impact the whole organisation and its performance (Barney, Ketchen Jr and Wright, 2011).
The human resource strategies should be developed as per the Key responsibility area(KRA) and
the knowledge, skills and abilities(KSA) of the employees so that the goals and objectives stays
real. The HR function do consume a lot of time and resources but it aids the employee and
management in building up a better relationship and enhance performance. There are certain
functions of which are performed by the department to achieve organisational purposes: Training and development: It enhances the employee ability to perform task with more
efficiently and effectiveness. Recruitment and selection: The whole process of acquiring suitable staff for the vacant
job profiles assist the company in reducing the wastage.
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 Project management: It keeps on tracking the project activities so that the needs of staff
is determined and fulfilled. This also ensures placing right people on the right job. Compliance management: The HR formulates a consistent policy framework for the
whole organisation. It is based on management employee relation and redress-al of
disputes. Change management: The HR manager is responsible for bringing in change in the job
profiles of the employee's. He has to carefully analyse and add or remove the roles and
responsibilities of workforce.
 Remuneration: The compensation policies are formulated by the HR himself. It also
keeps an record of the amount dispensed as salary and wages.
1.3 Role and responsibilities of line managers in Human resource management:
The HR department have to define all the roles and responsibilities of each and every
position. This helps in reducing confusion and state a clear path which have to followed by the
employees. There are many types of responsibilities which are fulfilled by the administrators.
Line managers are the front-line managers. They are the one who are responsible for handling
the teams, operation and all other resources (Berman and et. al., 2012). These line man has to
report to higher authority for informing them about the growth trajectory. Line managers have
both managerial and supervisory responsibilities. The basic functions are:
 People management in day to day process
 Operation costing
 Technical expertise
 Allocation of work and rotation
 Monitoring of activities
 Quality auditing
 Performance measurement and appraisal
The task of line managers which aids the HR department are: Performance appraisal: He provide the data to the department and takes active past in
appraising the employee performance. They are in a supervisory role which mean they
know who is performing and who is not. Disciplining Employee's: They are responsible for keeping the discipline maintained in
the organisation. Whether it is a policy related or procedural.
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 Performance related pay: The line managers provide data about the employee
performance to the HR department as to ensure that they are being paid for their
performance and no additional finance or benefit is being floated to them.
 Employee engagement: The line managers are the one who engage with staff. HR
department supports them with its policies and procedures so as to maintain the
management-employee relations.
1.4 Impact of legal and regulatory framework on Human resource management:
The human resource department in posh nosh has to keep on analysing the changes which
are taking place in the legal environment. The HR policies and procedures are based on the laws
which are enacted by the authorities as to standardise the working in a industry. These
legislations are suppose to protect business, owners and employee's from any hazardous
conditions (Bloom and Van Reenen, 2011). There are certain rules and regulations formed by
various agencies and government which assist in handling manpower. While developing any
strategic plan the managers should evaluate the implication of laws, so that the gap can be
removed and a healthy plan is implemented. There are few legislation which have to be
considered by the Posh Nosh HR department: Equal pay act 1970: The law clearly states that the company should not discriminate
against any gender, race, social group, background, etc. the salaries should be equally
given to each and every employee. National minimum wage rate act 1998: This act states that the employees should be
given a minimum salary/wage for the job they perform. Such as the wage of an adult
grew up in 2004 from GBP 4.10 to GBP4.50, it is much higher today. These rates are
given on the basis of an hour. Employment rights act 1996: The law states that the company should not discriminate
against any person (on the basis of his religion, caste, background, race, colour) while
recruiting and selecting them for the job.
 Health and safety act 1974: This law clearly state that the company needs to maintain
standardised health and safety kits and promote an environment in which the employee's
are safe.
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TASK 2
2.1 Reasons for human resource planning in the organisation:
The human resource planning in any organisation is to enhance and develop the
efficiency and effectiveness of the employees in the organisation. The HR planning is very vital
function for the organisation. It helps in analysing the manpower needs and also the market
potential. The human resource planning ensures that the company is able to face any future
uncertainty and there is availability of manpower in sufficient quantity. The company focus on
this step as it provides them competitive advantage over its competitors and ensures that they
have required number of staff (Boxall and Purcell, 2011). The HR planning also assist in
reducing the chances of over or under staffing in the organisation. There are certain reasons
behind the preparation and implementation of HR plans: Future workforce requirements: The HR planning assist the management in planning for
the future requirements of staff in the organisation. Coping up with change: The planning process enables the company management in
overcoming the uncertainties which might impact the organisation working in the future. Recruiting qualitative talent: HR managers with the help of stable plans are able to
recruit better talent in the organisation as it is clearly specified what qualities are required
in a person for delivering higher quality of productivity.
 Development of existing human resource: The manpower which is currently operational
in the organisation will be developed and the planning will be done in accordance to
provide appropriate opportunities to the employees.
2.2 Stages in human resource planning for requirements:
The manpower plans are prepared as per the requirement of the company which it will
have in the future. It helps in reducing uncertainty and enhance the workforce capabilities. It is a
process which will help the company in finding the right person for the right job at the right time.
The managers have to set and analyse the organisational objective before the planning process is
conducted. The human resource planning process is as follows: Analysis of company objectives: The organisational objectives will be analysed as to
understand the aim and how it will be achieved. All the individual objectives will be
aligned with the company's goals.
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 Inventory of existing human resource: The HR department has to ensure that it have the
reserved candidates for the job. This enables them to fill up the vacant position in future. Forecasting demand and supply of manpower: Human resource requirements have to
analysed so that the gaps which exist in the demand supply can be reduced and company
have sufficient level of manpower. Estimating personnel gaps: The manager will put an approx number of the human
resource which will be required in future. The whole process is evaluated on the basis of
number of vacancies and number of personnel hired. Formulation of action plan: It is also known as back up plan as it helps the company in
overcoming a situation which could have hampered its operational capabilities.
 Monitoring, controlling and feedback: Plans are implemented and they are put on the
monitoring mode, so as to analyse the gap's and variances and reduce them by further
planning.
2.3 Recruitment and Selection process in two organisations:
Companies try to develop better system for themselves as to prepare them to overcome
future uncertainties, achieved goals and objectives and get competitive advantage over
competitors in long run (Bratton and Gold, 2012). The department is concerned with enhancing
the organisational capabilities to better efficient and effective levels. The HR planning provides
company an extra edge and safety from the market shocks. Today, Posh nosh is developing its
HR function to get an edge and grow at a higher speed. To analyse the effectiveness of their
plans, they will have to compare it with the competitors recruitment and selection process.
Basis 1. Posh Nosh Nando
Job analysis It is easy to do job analysis It is a complex process
Application Receiving job application is
easy
It is totally opposite
Activities Based on promotion system Based on planning which aids
advertisement
Use of portals E-mails and social messaging
is used to inform.
Physical post and email system
are used.
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Process(Time taken) 2 weeks 4 weeks
Liability Job officer is liable for total
job sector
He is not totally liable for
whole function
Panel Filters the application and
interviews
Filtering applications and then
taking interviews
The Posh Nosh recruitment selection process has to be improved as it is expanding. The
Nando restaurant chain is well established in the United kingdom. So, it is good if posh nosh
uses an industry player as its benchmark for developing recruitment process. Those organisation
which do not follow proper process end up wasting its resources and losing efficiency and
effectiveness.
2.4 Effectiveness of recruitment and selection techniques in two organisations:
Posh Nosh has to develop its HR capabilities as to ensure that its is able to utilise its
human resource in a efficient and effective way. The recruitment and selection process of the
company have many issues which needs to be fixed. On the other hand, Nando has a well
developed HR department which assist it in gaining higher market share. Posh Nosh have
registered a organic growth level (Clark and et. al., 2016). While Nando has been able to fulfil all
the requirements of human resource which has enabled it in attaining substantive growth.
There are several differences between the two organisation recruitment and selection
process. When it comes to evaluating the effectiveness of two systems then the better one will be
chosen. Nando have a good recruitment and selection process. It might take little more time but it
enables the managers in choosing the best people for the organisation. The company gets
benefited by the process it has chosen. It first identifies the vacancy, and forecast for the future
vacant positions.
Nando have a well defined job description and specification which helps the managers in
sorting out the candidates based on their attributes and qualification. Also it have an advantage
over others as it is significantly larger than posh nosh so it have more internal and external
resources available. The recruitment process of larger firm is always more effective due to the
presence of resources and qualitative managers.
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TASK 3
3.1 Link between motivational theory and reward:
The HR manager is responsible for creating a link between theory and the reward system
of the company. Proper compensation and reward system is required to enhance the efficiency
and productivity of the employee. First of all, employee are required to be placed on right job at
the right time, so that they can perform well. This will motivate them on their own. The reward
system will further boost their performance. Motivation theory suggest two type of reward
system in the organisation, positive and negative.
In positive motivation the manager gives out monetary rewards to the employees. He also
gives them promotion and other benefits. It boost the employee motivational level and boost
there ability to achieve targets in more efficient and effective way. On the other hand, negative
motivation is used by the manager when the employee is not performing as per the requirements
and standards. He tries to boost the motivation level positively first but if he is constantly under
performing then the manager have to use the negative motivation in which he will punish the
employee or demote him (Daley, 2012). Usually in this type of motivation the worker gets less
benefits than others which boost him to perform better.
3.2 The process of job evaluation and other factors:
The process of job analysis will be conducted before job evaluation. The Posh Nosh has
to prepare a proper job description and job specification which are part of job analysis. This will
provide a basis for evaluation of the task. Job evaluation is a process which look at different
aspects of the job which is held by the employee. It helps the managers in understanding the
worth of a job in relation to other task. It compares various task in a systematic way as to assess
their worth against the purpose for which it was created. This aids the manager in creating a
rational pay structure for the job.
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As shown in image there are various methods by which the job can be evaluated. These
days organisations are using computer as to assist their manager in finding out the real worth of
the job which has been created. Job evaluation assess the working environment, complexity of
job and the Knowledge, skills and abilities of the employees (Farndale, Scullion and Sparrow,
2010). The computer aided job evaluation measures 28 exempt and 17 non work dimensions
which cover all the aspects of a job. The process of job evaluation is quite simple and it tries to
acknowledge various aspects of the job and the employee capabilities.
3.3 The effectiveness of reward system in different context:
In the word of Bratton and Gold(2003), “ The reward system is a mix of extrinsic and
intrinsic rewards which are given by employer. It also consist of the of various integrated
policies, process, practices and administrative procedures which assist in implementation of
systematic framework of HR strategy”. So as per the definition there are two types of rewards:
 Extrinsic rewards: These are the type of rewards which are given in the financial form.
Such as-
◦ Bonus
◦ Salary increments
◦ Gifts
◦ Commissions
 Intrinsic rewards: These are the rewards which are given in non financial form to the
employees for their performance. Such as-
◦ Recognition
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Illustration 1: Business jagrons

◦ Promotion
◦ Trust
◦ Job enrichment
◦ Praise
◦ Health cards and other benefits.
These rewards are given to the employees in different context. If an employee performs
well and achieves the final goals before time and in less resources then he will get financial
rewards (Fulton, and et. al., 2011). If a worker performance is consistent then he will get non
financial rewards. It depends on the management.
3.4 Methods used by organisation to monitor employee performance:
There are several methods which are used by HR department to measure and monitor the
performance of employees. Self evaluation: it is a method where the employee analyses himself. He has to identify
his own strengths and weakness. Also the ways to address his weakness is researched by
him. 360 degree evaluation: This is the best way to evaluate any employee as it takes
feedback about the employee from all the parties who are related to him, such as,
superior, colleague, clients, etc.
 Confidential reports: These are the reports which are created by the HR manager and
they are kept secret. These reports are written after analysing the employee personally.
These methods help the organisation such as Posh Nosh in analysing and measuring the
performance of its employees. Also it assist the manager in giving incentive as per the
performance of the employee.
TASK 4
4.1 The reasons for cessation of employment with an organisation.
When employees leave the organisation for his personal or performance reasons it is
known as cessations of employment. Also if organisation terminates the employee for any reason
it might also be considered as the cessation of employment. There few reason behind the
employee leaving organisation which are mentioned below:
 Relationship of worker with boss
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 boredom in the work place
 Work Environment
 Limited opportunities and skills
 Financial instability.
The organisation reasons behind termination of employee are:
 Lack of integrity in employee
 Performance of employee
 Fails to keep commitments
 Violates the law
4.2 The employment exit procedures used by two organisations
The exist procedure is defined by the government, though companies are free to develop
their own methods (Gruman and Saks, 2011). The method followed by Posh Nosh and Nando is
as follows: Processing resignation: The resignation letter is sent to the HR manager and top
management. The HR then reviews the request and employee performance. Exist interviews: These interviews are conducted by the HR manager as to found out
what reasons forced the employee to leave the organisation. Reference request: This is a process where the employee request the managers who is
known to him and uses the reference to leave the organisation.
 Review: The whole process is reviewed by the HR manager and then the employee is
relieved or terminated.
4.3 The impact of legal and regulatory framework on employment cessation arrangements:
The organisation is impacted by the legal framework which exist in the United kingdom.
They have to formulate their policies and procedures as per the laws prevailing in the country.
These standardises the environment. The impacts are mentioned below:
 As per the law the company have to maintain equal pay for the employees. There should
be no discrimination on different basis.
 The company has to maintain minimum wage for each job.
 The employer has to maintain health and safety kits as to avoid any hazardous condition.
 The employer also need to provide equal opportunities to all while recruiting, there
should be no discrimination.
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CONCLUSION
The human resource department has to be developed in the Posh Nosh while keeping all the legal
policies in mind. The manager has to define the roles and responsibilities of every single job
which will be created. The report concluded how the human resource management can impact
the organisational performance and the ways manager can manage the market uncertainties. It
prepares the company to face the future aspects which might hamper its capabilities.
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Human resource management review 2017[Online] Available Through:
<https://www.journals.elsevier.com/human-resource-management-review/> [Accessed on 15
June 2017]
Line manager's role 2017 [Online] Available
Through:<http://www.southampton.ac.uk/hr/services/line-managers-role/index.page> [Accessed
on 15 June 2017]
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