Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 4. Positive and negative aspects of appraisals and their impact on psychological contracts.......1 5. Describing Cadbury's recruitment and selection policy..........................................................3 6. Presenting the ways of reward package be enhanced to raise motivation among employees.5 CONCLUSION................................................................................................................................7 REFERENCES................................................................................................................................8
INTRODUCTION To leads towards success, it is quite essential for the firm to have good Human Resource Management.The chosen firm for this report is Cadbury which is top multinational company from 2010 whose headquarter is in UK. the firm is second largest confectionery brand in world. Currently the firm is operate in more than 50 countries and its well known products are Dairy Milk, Creme Egg etc. thus, report will describe positive and negative aspect of appraisal and their impact on psychological contract, further, study will describe recruitment and selection procedure of Cadbury. Lastly, study will describe the organization reward package that helps to improve the motivation. MAIN BODY 4. Positive and negative aspects of appraisals and their impact on psychological contracts. Appraisali.e.performanceappraisalcanbedefinedastheprocessofregularly reviewing the performance of an employee and his contribution in increasing the productivity of the company(Du Plessis and Sukumaran, 2015). In Cadbury, it is an annual process where employers i.e. HR managers of the company evaluate the skills that their employees have developed and their contribution so that appropriate salary raise and bonuses can be given to those employees who genuinely deserve it. However, there are various positive as well as negative aspects of performance appraisal at the workplace on employees. Positive aspects of Performance Appraisal :-It helps the HR managers of Cadbury in properly documenting and structuring data related to employee performance and identify the opportunities for further developing employees by evaluation of their strengths and weaknesses. It also motivates the employees so that they can work even harder to further achieve the goals set and helps in identifying and removing the deficiencies of employees(Thite, 2019). Giving appraisals to the deserving candidates helps other employees in developing targets which will help them in achieving these appraisals for themselves as well. This also helps the HR managers of Cadbury in giving the required feedback to the employees which will help them in identifying those areas where they can further improve themselves and also elaborate on the efficiency of current working methods that they have adopted so that if there is any scope of improvement, then it can be identified. Thus, performance appraisals help in creating a positive work culture encouraging healthy competition between the employees and helps in development of all rather than developing selected individuals and with changing times and trends, the HR mangers have 1
started to include performance appraisal in the process of performance management and strategies formulated for that process(McDonnell, 2016). Negative aspects of Performance Appraisal :-Although there are many positive impacts that a performance appraisal has on the employees and the work culture of any organization, there are certain aspects by which the company and its employees gets negatively affected due to performance appraisal. The major negative aspect is the fact that it creates a negative influence on other employees who are not getting performance appraisal and this might demotivate them or create tendencies leading to depression where the employee might feel unworthy. The process of evaluating the performance of all the employees working in the company and then identifying those who actually deserve the appraisal is a very long and time-consuming process at Cadbury, and the HR manager of the company has to give his time and energy which he could have utilized on other more important activities(Dutta, 2018). Further, it is human tendency to like or dislike some individuals and while the HR manager goes through the rating process, some biasness may creep in during it which can lead to favourable situations for some employees at the workplace. This can also lead to employees loosing trust in the decision-making of their managers and they may either revolt or leave the company which is a loss making situation for employees in both cases. Therefore, performance appraisal has both positive as well as negative aspects in the workplace and it also impacts Psychological Contracts(Smith, 2016). Psychological Contractscan be defined as an agreement between employer and an employee and it helps in developing a common ground regarding the work that is to be performed. The document states what are the expectation of each party regarding the input and the output of the parties in organization. It also details the fairness with which an employee will be treated by employer and the level of input that an employee has to put into the job assigned to him(Noe and et.al, 2017). In Cadbury also, the rising trend of including Psychological Contract in the job offer has been adopted and it has been impacted by performance appraisal in following manner :- Good performance appraisal methods help the company in increasing trust of employees and Psychological Contracts are also formulated with a basic aim to create peaceful working norms and conditions. It also helps in increasing committent levels meeting the expectation levels of employeesandapositiveworkenvironmentisdeveloped.PerformanceAppraisalhelps managers at Cadbury in determining the present output levels and quality and this is compared to 2
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what the employee promised to do while creating Psychological Contracts. The deviations help managers in identifying how truthful and dedicated an employee is and whether he should be promoted or needs more training(Bogićević-Milikić, 2019). Psychological Contracts thus acts as support for creatingPerformance Appraisal and vice-e-versa which makes it easier for the HR managers to manage and evaluate the performance of employees regularly. However, on the other hand there are also some negative impacts of performance appraisal on Psychological Contracts like poor performance appraisal reviews form the HR managers might lead to employees revoking the Psychological Contracts. This can lead to increase in negative work culture environment at Cadbury workplace. Also, it constricts the free flow of feedback as appraisals lead to employees not keeping their point and acting beyond their capacity which is defined in the Psychological Contracts formulated at the beginning of the job. Along with this, both performance appraisal and Psychological Contracts are individual centric tools and they can demotivate employees to work together in teams. Also, the process of performance appraisal might create scepticism in employees and make them wary of what they say or do leading to high degree of inflexibility in the organization(Festing, 2017). Therefore, there are some positive as well as negative impacts of developing performance appraisal techniques and implementing it in Cadbury along with Psychological Contracts and it should be effectively managed by the HR managers of company so that the positive aspects can beincluded and implemented in the organization which will create a positive environment and increase the goodwill of Cadbury by developing a highly satisfied employee base. 5. Describing Cadbury's recruitment and selection policy Recruitment and selection Is the procedure that helps to find as well as attract the potential resource in order to fill the vacant position of the company. In the same way, the HR of Cadbury also uses recruitment process in five stages which helps to increase the efficiency of hiring.It is mainly designed to increases the employee performance so that they help to attain the strategic objectives. It is also analysed that recruitment and selection is done at every firm in order to find the quality candidates and recruit the best employee who perform best practices to attain the defined aim and objectives of an organization (Sameen and Cornelius, 2015). Thus, Cadbury conduct its recruitment procedure in five stages which are as mention below: 3
Recruitment Planning:It is the first step followed by HR of Cadbury in which they analysed the vacant position. Thus, it includes job specification and its nature, experience as well as qualifications and skills which is required for the job. That is why, it is critically evaluated that a structure recruitment plan is mandatory in order to attract potential candidate and they should be qualified and have experience (Recruitment process,2018). Thus, they first make a list of number of post available in the company and then identify vacant position as well, which is the best practice and then it isthe responsibility of sourcing manager to determine whether the position is required or not, or it is temporary or permanent. After that, evaluation leads to hire the best candidate. Strategy Development:It is the second step used by HR of Cadbury in which they prepare the strategy for hiring the resource. For that, they adopt external recruitment strategy that helps to hire new employees in which they take an interview and meet the criteria from the job description so that they select the best candidate for the vacant seat. It is consider one of the best practice in Cadbury as it helps to interact with new candidate and then select one out of many. Searching:It is the next process of recruitment in which HR of Cadbury search new candidate for vacant position and it is also done by source activation in which line manager verifies and permit the vacancy and then search the candidate (Sarker, 2017). Another option is selling in which Cadbury post the advertisement of job vacancy in social media so that various prospective candidate reached. Mostly, Cadbury uses external source ofrecruitment for lower position by using direct recruitment. Employment exchange, advertisement and it sometimes uses Internal sources too in which it promote the person or may transfer. Thus, through this practice, HR can easily select candidates for vacant position in Cadbury. Screening:It is the process of filtering the application of all candidate for further process. Therefore, through this process, HR can remove the unqualified candidate. In this step, HR should first review the resume as well as cover letter and then conduct the telephonic and video interview which helps to identify or verify the candidate whether they are active as well as suitable for filling the vacant position (Noe and et.al., 2017). In addition to this, after interview, the resumes are shortlisted and which makes hiring process more easy for manager. In this way, screening will help to complete the process and select best out of many in order to full the vacant position. 4
Evaluation andControl:It is the last stage to be performed in the recruitment process. This process includes a brief analysis of various activities to be performed in the recruitment process along with cost involved at each stage. Human resource managers of Cadbury analyses these activities and costs involved in them and evaluates the stages at which cost can be reduced by the managers. Thus, this process enables managers in imposing controlling measures over recruitment process of the company.It is mainly designed to increase the employee performance so that they help to attain the strategic objectives. Moreover, it can be concluded that the research analyses and organization information that taken from academic models and transferability of different workplace context. 6. Presenting the ways of reward package be enhanced to raise motivation among employees HRM is that strategic approach which have an effective management of people in the firm so that it will leads to gain high competitive advantages. HRM also involves creating a motivated and satisfied personnel so that the overall productivity canbe increased and for this, they need to adopt various monetary and non-monetary incentives. This involves various aspects:- Reward package:-It refers to a policy of the company through which each employee of the could be motivated to perform their tasks in an effective way. There are numerous ways in which the company can improve its strengths to motivate its employees. Some of the most effective reward systems that can be adopted by Cadbury can be analysed as under: Performance Appraisals:It is the most common reward system adopted by several businesses in order to motivate their employees to improve their efficiency of working. In this system, performance of employees is being analysed and compared with their goals and targets (Post and Leuner, 2019). In case, they perform better than the set goals, the company appraise their performance and give the employees some rewards such as promotions, monitory rewards, etc. Thus, adoption of this system can improve the efficiency of working of employees in order to achieve the rewards provided by the company. Effective incentive policies:Incentives are those monitory rewards that an employee can gain along with the basic salary by performing better than their set goals and objectives. Cadbury can formulate effective policies and plans regarding providing incentives to the employees along 5
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with their salaries. It would lead in development of self motivation among the employees in order to work with their maximum efficiency and gain the maximum amount of incentives. Providing continuous feedbacks:It can also be considered as one of the best system that can be adopted in order to maintain motivation among the employees. With the help of providing continuous feedbacks to the employees regarding their performance within the organisation, Cadbury can make its employees aware regarding what are the areas in which they needs to improve their efficiency in order to improve their strengths within the business. Thus, it can help a company in improving the efficiency of its employees (Huckins and et.al., 2019). Set achievable awards:It is one of the most important policy that is required to be made by each business organization. Each reward set out by the company must be achievable by the employees. As, in case, the Cadbury sets policy of incentives or any other rewards that are not achievable by the employees, it would not help the managers in motivating their employees as they will not get attracted towards the reward system. Thus, setting achievable awards will help the Cadbury in enhancing self motivation among the employees regarding performing their policies with their best efficiency to achieve the rewards. Friendly working environment:-it is one of the important aspect which easily motivate employees in every condition. Creating friendly working environment means employees feel comfortable to work with the organization which easily improve this performance and motivate them for achieving the goals and objectives (Ehlers, Ross and Todd 2019). In Cadbury, it set so many activities for creating friendly environment, so they can easily boost their morale and encourage them for working. Offer flexible scheduling:-this is the thing which easily motivate employees and encourage them where cad-bury offers flexible scheduling for working from that employees are able to complete their work with flexible working hours. In these employees can do work from home and also according to their suitable time whenever they want to do. It easily helps in motivating employees and also retain employees. Recognising their achievements:-sometimes all the things which a employee need is recognition for their well done job. It is important for running an organization to recognise the work of employee which feel them special and also encourage them for work hard in future for achieving success and growth (Postrel, 2019). When employees feel that their works and efforts are recognised and appreciated from this they feel to continue the work and make it successive. 6
Provide tours and holiday:-this is one of the easiest way to motivate employees where Cadbury has to provide holidays so employees get relax and remove stress from their life. Family tours are also a way to feel them special where family tours make them relax and give them enjoyment. It is a way to increase their effectiveness and efficiency. This step work so much effectively and efficiently so it can motivate them to work with the organisation and gives them a chance to performing better. Encourage happiness and celebrate:-this one of the most important step where Cadbury puts efforts for making employees happy and also celebrate small things that easily encourage them for make good relations with employees. Encouraging happiness means give them little things that makes them happy such as conducting activities and training session for relaxing them etc (Ferreri and et.al., 2019). This is the ways to motivate employees forachieving goals and objectives of organization.Further, it concluded that things that affected each and every part of human resource cycle and also the operationsoforganizationsuchaspolicies,practices,processthataffectednationaland internationally. CONCLUSION By summing up above report it has been concluded that human resource management is one of the strategic approach for planning the activities of the organization, control all the functions, organize all the task and activities. This report concluded that understand the key principles of HRM and also specify the HRM cycle. 7
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