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UNIT 3. HUMAN RESOURCE MANAGEMENT 1
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Table of Contents: Introduction:.........................................................................................................................................3 Task 1.....................................................................................................................................................4 LO1 Explanation of the purpose and scope of HRM in terms of resourcing Aldi with talent and skills appropriate to fulfil business objectives:...............................................................................................4 P1 .Explaining the purpose and the functions of HRM, applicable to workforce planning and resourcing of the John Lewis................................................................................................................4 P2 .Explain the strengths and weakness of different approaches to recruitment and selection for John Lewis.............................................................................................................................................5 Task2.....................................................................................................................................................7 LO2 Evaluate the effectiveness of the key elements of HRM for John Lewis........................................7 P3 .Explain the benefits of different HRM practices within John Lewis.................................................7 P4 .Evaluate the effectiveness of different HRM practices in terms of raising John Lewis’s profit and productivity...........................................................................................................................................8 LO3 Analysing internal and external factors that affect HRM decision-marketing at John Lewis, including employment legislation:.......................................................................................................10 P5 Analysing the importance of employee relations in respect to influencing HRM decision making for John Lewis.....................................................................................................................................10 P6 identifying the key elements of the employment legislation and the impact it has upon HRM decision making for John Lewis...........................................................................................................11 LO4 Applying HRM practices in a work- related context for John Lewis..............................................12 P7 Illustrating the application of HRM practices in a work-related context, using specific examples for John Lewis............................................................................................................................................12 Conclusion...........................................................................................................................................13 2
Introduction: Today the strategic practice of human resource management is a major issue. The industrial revolution and the trend of globalisation bring fresh challenges in the field of human resources. Technological advancement leads to high level of recession in the working society. It is very important for a company to tackle these challenges. John Lewis, being a branded retailer has grown exceptionally. For a growing retailing company like John Lewis, it is an important task to incorporate the practices of human resource effectively. TheassignmentdealswiththehumanresourcemanagementofJohnLewis, explaining the purpose, scope, strengths and weakness of the organisation. The assignment also deals with the benefits of different human resource management practices in John Lewis. The assignment is focuses on the effectiveness of different human resource practices of the organisation as well. The analysis of internal and external factors is also elaborated in this assignment. 3
Task 1 LO1 Explanation of the purpose and scope of HRM in terms of resourcing Aldi with talent and skills appropriate to fulfil business objectives: P1 .Explaining the purpose and the functions of HRM, applicable to workforce planning and resourcing of the John Lewis Since 1980’s strategic management of human resource has turned out to be a major concern in management,as observed by Aguinis and Pierce (2008, p.141). Planning, designing, compensating and assisting the employees in an organised way are the main purposes of human management. Application of management and principles, integration of decision relating to employees, influencing the effectiveness of an organisation are the main constituent of the human resource management, remarks Albrecht (2014, p.412). Human Resource planning is the main objective of the human resource manager of the organisation, as opined by Aguiniset al.(2012, p.106). Planning consists of achieving the task of placing the correct person per their skill. The designing of the organisation is also one of the major roles of the Human Resource manager. The explanation the purpose of HR management with respect to John Lewis: Social Objective: The Company has a long chain of partners, stakeholders and suppliers. The Golden Jubilee Scheme announced by the company has involved the wide range of partners and customer to launch a charity. The partners of the organisation volunteer for fundraising and donationtothischarity.Theschemewaslaunchedwith anaimto servethesocial responsibilities of the company. Organisational objective: To improve the efficiency and betterment of services John Lewis has launched the Partnership Scheme. The scheme has a co-ownership model. The entrepreneurial role of the partners and the company's owners has made a great contribution to the organisational structure of the company, as opined by Alveset al.(2013, p.341). 4
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Functional objective: The appraisal, placement and assessment are the major contributory factors to assess the functional objectives of an organisation. Every partner of John Lewis has a clear view about the appraisal of the company (John Lewis Partnership, 2017). The organisation has aimed at the 4 P factors (i.e. Performance, Productivity, Pay and Progression) to achieve the functional goal of the company. The annual pay report of the organisation has clearly indicated that the partners have encouraged discussing their contribution to the company. The most advantageous factor is the annual bonus provided to the partners by the organisation. Personal objective Thecompanyhasdevelopedalearningenvironmentforthepartners.The commitment to lifelong learning and developing partners is enshrined in Rule 56 of the organisation. The company expenses 56% excess as compared the other companies in the development process. The promotions of qualified partners, the modern apprenticeship schemefortheyouth whohavepassedtheirA-levelsaresomeofthetrainingand development of the organisation. Overall, the company is projecting themselves as a great workplace to the employees. To choose Partnership of the organisation as a career option is a wise decision for the youths of the society. P2 .Explain the strengths and weakness of different approaches to recruitment and selection for John Lewis The main objectives of the John Lewis are to provide employment to the professional skilled persons. The application process is completely online. There are five stages to the onlineapplicationprocess.Valuebasedquestionnaire,numericaltest,verbaltest, management judgement indicator tests and interview are the steps that an individual must raise to be employed in the organisation. The selection procedure is clear and transparent to the job seekers. Strengths: 5
To assess the personality of the employee it is necessary for an organisation to conduct a test, as opined by Berget al.(2010, p.180). These types of tests help the organisation to judge the employee through a structured manner. The betterment in the quality of performance is the main objective of the company. Recruiting skilled professional through a pre-employment test, help the organisation to achieve higher productivity, as observed by Coyle and Shore (2007, p.170). The pre-employment test also helps the organisation to recruit skill professional who can retain the job, as opined by Guest (2011, p.10). The basic aptitude required to retain the job along with the proper treatment is the main objective of the pre-employment test. The processes involved in the recruitment procedure of John Lewis have helped the company to achieve the objectives of having the skilled labour force. The questionnaire part and the numerical ability part of the test help to assess the employee from the intellectual point of view. The management test and the interview help to assess the employee's interest in the company's work culture, as observed by Jianget al. (2012, p.1270). Weakness: To conduct such assessment for selecting the employee in the organisation is quite expensive. A separate team is required to handle the assessment process. The effort to arrange and allocate the test centresis burdensome to the organisation.For a large retailing organisation as John Lewis, it is quite difficult to devote time to organise such assessments. The multilayer structure of the test makes it difficult for the jobseeker to have a clear view of the job role assigned to him at later stages. The chances of lack of diversity are also a big disadvantage to the pre-employment test, as observed by Rothstein and Goffin (2006, p.160). Employees recruited through the same assessment procedure could bring the singularity to the organisation. The multitasking ability of a person cannot be judged through a common personality test arranged by the organisation.A company like John Lewis should have a multitasking workforce to manage the operation on the behalf of the organisation. 6
Task2 LO2 Evaluate the effectiveness of the key elements of HRM for John Lewis P3 .Explain the benefits of different HRM practices within John Lewis The employability, good appraisal schemes and partnership schemes are the few human resource management of the company, as observed by Buchner (2007, p.60). For elaboration and better understanding, the below-mentioned points have discussed in detail. The ability to review the annual pay review with the manager and annual appraisal make the company to the employer of choice. The incentivised structure for the partners to increase the wages through performance is the main feature of the wage structure of an organisation, as opined by Sparrow (2013, p.105). The annual bonus structure of the organisation and the pension plan has contributed to making the company a lucrative workplace. The company is providing equal opportunity to its partners. Irrespective of the gender, Ethnicity, age the company is providing equal opportunity to the partners of the organisation. The position offered to the employees in the John Lewis is of partners. This leads to increase the level of productivity, low absenteeism, higher level of commitment and high job retention among the partners. To evaluate the performance of the management the company is following the appraisal ratings as well as adhere to the zero-tolerance approach to the appraisals. Every partner should be able to improve his or her performance. Disciplinaryandgrievancemeasuresareclearlyinductedtothepartners.The stringentworkingdurationandotherfactorsaregovernedbyaconstitutionofthe organisation.With 90000 partners, the projection of the growth of the company is established. Themanagementproceduresofthecompaniesareclearlyenshrinedinthe constitution of the company. Principle 1 of the constitution of the company has described the commitment of the company to the partners. Responsibility, relationship and influence are the 7
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three commitments that the company has promised to its partners. Partnership spirit is the main motivation of the company. The pension scheme, the apprenticeship scheme and partnership scheme are planned to enhance the employee relation with the company.In every organisation, the legal contract between a labour and the company is abiding by the common law of employment in U.K., as observed by Sunet al.(2007, p.562). The equal pay act, employment relation act are some basic facts that should be abided by the organisation. The company is supporting its partners through various schemes related to the physical and mental health of the partner. The partners of the company should sign a pledge under Time to Change campaign to care about the mental health of the partners. P4 .Evaluate the effectiveness of different HRM practices in terms of raising John Lewis’s profit and productivity The annual growth report of the company projecting a growth rate of 9.2% in its gross sales to £4.43 and operating profit of 10.8% to £250.5 m, as published in the annual report of 2015-2016 of the organisation.The statistics are projecting a growth in business of the organisation. The annual report is projecting a statistic which projects 41% of the permanent partners have more than 5 years of work experience. The 93,800 partners have received the partnership bonus of 11%. The job satisfaction report shows 72% satisfaction among the partners of the organisation. The lucrative incentive and bonus appraisal help to lower the risk of absenteeism and increases the job retention among the employees. Sharp increase in the enrolment of mass as partners has lowered the customer complaints. The increment in the online business growth of John Lewis is 17%. The Overall market share of the company has increased to 4%.The increment in the revenue of the company has been raised to 5.6%. The partnership operating profit has achieved a growth of 6.1%. Though there is a sharp decrement in the partnership contribution, the pension operating cost has seen a growth of 16.00%. The company is still relying on its workforce to support the business strategies. 8
The pension scheme, the promotion schemes and the progress of the organisation have enhanced the career journey of the organisation. The morale strength of the organisation has vested upon the operation as a team in the organisation. The partnership spirit of the company has maintained constantly throughout the year. Each branch of the company has the partner voice. The partners are operated in an organised manner. The promotion of the partnership factor is aimed to achieve higher profit for the organisation. The community of the partnership has formed to achieve new growth, better jobs and give the company a financial stability. The constitution of the company has guided the selection process and functioning of thepartnershipstructure.Theelectionproceduresofpartnersasdirectorsandother management techniques are guided by this constitution transparently.The healthy working environment provided by the organisation provides its partners with a growth opportunity. Theteamworkandthedemocracyofthecompanyhavecontributedtheprofitand productivity of the organisation.Hence it can be said that John Lewis Partnership may follow long term view, staff consultation, Modest ambitions, staff engagement and rewards and Tracey Killen Cv . All types of such strategy are require to evaluate the task in an organisation and it will make an effectiveness such human resource management policies that help to manage the human and individuals in an organisation. As per the above strategy it will also describe the weakness that help the employer to take an effective action to control the human resource or to manage the human ion an organisation, so that organisation can achieve there goals. 9
LO3 Analysing internal and external factors that affect HRM decision-marketing at John Lewis, including employment legislation: P5 Analysing the importance of employee relations in respect to influencing HRM decision making for John Lewis Per Armstrong and Taylor (2014, p.25), employee relations indicate the shared connection between the organisation and its employees. The employees must be complacent with each to keep the workplace serene and the influence the productivity of the employees and the organisation as well. The company John Lewis always is concerned about the celebrated relation within the employee and with the organisation which is influenced by the variousconditionssuchasrecruitmentprocessundertakenbytheemployers,career opportunity in the company, job satisfaction and the structure of the organisation (Sheehanet al.2016, p.163). The company always encourages their employees to give the utmost efforts of them for the advancement of the company which can help the organisation to meet the final goals. The company treats their staffs equally and honours their efforts and capabilities by giving them rewards. This healthy relationship drives the employees to share their views and ideas regarding the progress of the company without any hesitation as they also feel responsibilities in this subject and it guides John Lewis to take any decision. Toinfluencetheemployeesthehumanresourcemanagementmakesthejob challenging and interesting which can attract the employees more as these jobs demand more effortandinvolvements,asstatedbyValizadeetal.(2016,p.353).Thecontinuous communication with the employees gives them the knowledge about the changing policies and the strategies of the company. Thisviewsharingprocesspointsoutthestatusoftheemployeesandtheir requirement. The proper training and development builds the relationship strong and the Human Resource manager get the indication about the efficient employees who eligible for promotions and this retention of employee achieve more success in respect of the company, observes Bal and de Jong (2017, p.56). John Lewis maintains their liabilities in every aspect of their business which gains faith in employees for the company and increases the job satisfactions of the staffs.Hence it can be said that there are several issues on which an 10
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individual cannot take a right decision, work became more easy by sharing them to other person, an organisation also known as happy place in which all the employees working together, in this way healthy employees relationship is influence the HRM. It is also considered that healthy employee relations also discourage conflicts and fight between the individuals. so that health relationship between employees make an influence in HRM. To preserves this relation the human resource management department is always working on it but they must be aware about the over-friendly relationship with employees which can affect the productivity and profit of the organisation, opines Mowbrayet al.(2015, p.385). P6 identifying the key elements of the employment legislation and the impact it has upon HRM decision making for John Lewis The organisation must maintain several regulations that directly impacts the HRM policies of an organisation.Griffith and Macartney (2014, p.145)opined that the wellbeing of theemployeeshasadirectimpactonthemotivationlevelof theemployeesinthe organisation. The more the employees are motivated higher will be their initiative in fulfilling the organisational goals. TheorganisationmustfollowtheEqualPayAct2010thatwillrestrictthe organisation from making any discrimination in the payments of the employees. Furthermore, the organisation will also have to ensure that the there is a fair work structure and fairness in the promotion and the reward policy. The HRM policies of the organisation further requires that there will not be any discrimination based on race, cast or religion. The Employment Law UK 2016provides an assurance to the employees regarding work place discrimination. The employment rights act 1996 ensures that the organisation cannot unlawfully fire the employees (Gov.uk, 2017).The workplace security must be maintained by the organisation per the employment legislation. The job place securities, interrelationship between the employees must be monitored by the human resource management department of the company John Lewis thoroughly. On the other hand, any type of discrimination based on age, gender, marital status, races and nationality is against the employment legislations. In this way employment right act, Sex 11
discrimination Act, Equal pay act , the race relation act and disability discrimination act is a key element of the employment legislation. LO4 Applying HRM practices in a work- related context for John Lewis P7 Illustrating the application of HRM practices in a work-related context, using specific examples for John Lewis The practices of human resource management involve not only the recruitment procedure of the employees but maintain the relationship between the employees and the organisation, training and development process and celebrate the employee’s efforts by rewarding them financially or by appreciating (Alfes, 2014, p.840).As a departmental store the john Lewis has several departments that require to be managed by efficient managers and the employees. Thus, the HRM pollicises to be designed to take account of the diversity in the needs of the customers. the higher demands of the customers require that the products are customised to meet the changing demands of the customers, this need to be done by employing additional research and analysis of the choices of the customers. Moreover, the 12
management must take into account their diversities of the cast number of employees that are appointed (Atkinson and Storey, 2016, p.58). The managers must be reachable and able to communicate with the employees. The training and the skills of the managers is very important in this regard. It must be mentioned here that the satisfaction of the employees is the most important requirement in a well- defined organisation. Thus, there must be a proper evaluation channel that will allow the managers to realise the actual demands of the employees. Moreover, the feedback channel of the customer also provides knowledge to the organisation that is effective in designing the most proffered product line. The rewards policy of the organisation perTzabbaret al.(2017, p.140) also needs to be a well define one that will make the policy acceptable. The manager of the organisation must take initiative to realise the actual worth of the employees and reward them accordingly. 13
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Conclusion This assignment explains the purposes of human resource management within an organisation which is responsible for the workforce planning and resourcing. The strengths and weaknesses of the various approaches of recruitment and the importance of the practices of human resource management are explained in the assignment. TheHRMdepartmentisresponsibleforthehealthyrelationshipbetweenthe employees and the organisation. This analyses the internal and external factors which their impacts on the decision have undertaken by the HRM department regarding the employment legislations. By applying the practices of HRM the assignment illustrates the application of those practices in a work-related context at the company John Lewis. The importance of employee relations which influences the HRM decision is analysed and the key elements of the employment legislations are identified here in respect of the company John Lewis. 14
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