UGB162 Introduction to HRM: Cadbury's Appraisal and Reward Strategies

This report provides an in-depth analysis of Cadbury's Human Resource Management (HRM) practices. It begins by examining the positive and negative aspects of performance appraisals and their impact on psychological contracts within the organization. The report then describes Cadbury's recruitment and selection policies, outlining the five stages of the recruitment process, including planning, strategy development, searching, screening, and evaluation. Finally, the report explores ways in which Cadbury can enhance its reward packages to raise motivation among employees. The report highlights the importance of HRM in achieving competitive advantages and creating a motivated workforce through monetary and non-monetary incentives, offering insights into performance-based rewards and other strategies to improve employee satisfaction and productivity. The report uses academic models and organizational information to provide a comprehensive overview of HRM practices within Cadbury, emphasizing their strategic importance.

UGB162Introduction to
Human Resource
Management & Learning
and Talent

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.
Appraisal i.e. performance appraisal can be defined as the process of regularly
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
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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 Contracts can 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
employees and a positive work environment is developed. Performance Appraisal helps
managers at Cadbury in determining the present output levels and quality and this is compared to
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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 creating Performance 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
be included 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:
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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 is the 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 of recruitment 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.
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Evaluation and Control: 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 can be 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
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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.
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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 for achieving goals and objectives of organization. Further, it
concluded that things that affected each and every part of human resource cycle and also the
operations of organization such as policies, practices, process that affected national and
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.
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of women's mental health.22(3). pp.417-429.
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purchase products. U.S. Patent Application 16/274,548.
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