HRM Practices at Costa Coffee: Resourcing and Employee Relations

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Costa Coffee, a British multinational coffee house. It explores the purpose and scope of HRM in resourcing and planning, highlighting the functions that provide skills to fulfill business objectives. The report evaluates the strengths and weaknesses of different recruitment and selection approaches, including internal and external hiring. It also discusses the benefits and effectiveness of various HRM practices such as training, staffing, and health and safety, and examines the importance of employee relations and employment legislation in influencing HRM decision-making. Furthermore, it delves into the application of HRM practices in work-related contexts, offering a rationale for specific practices and a critical evaluation of their application. The analysis aims to provide insights into how Costa Coffee manages its human resources to achieve organizational goals and maintain a competitive advantage. Desklib offers a range of study tools and resources for students, including past papers and solved assignments.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1..............................................................................................................................................4
P1- PURPOSE AND SCOPE OF HRM IN TERMS OF RESOURCING AND PLANNING......................4
M1- FUNCTIONS OF HRM THAT PROVIDE SKILLS TO FULFILL BUSINESS OBJECTIVES.................4
P2- STRENGTHS AND WEAKNESSES OF DIFFERENT APPROACHES TO RECRUITMENT AND
SELECTION....................................................................................................................................6
M2- EVALUATION OF STRENGTH AND WEAKNESSES OF DIFFERENT RECRUITMENT
APPROACHES...............................................................................................................................6
D1- CRITICAL EVALUATION OF STRENGTHS AND WEAKNESSES OF DIFFERENT RECRUITMENT
PROCESS.......................................................................................................................................7
TASK 2..............................................................................................................................................9
P3- BENEFITS OF DIFFERENT HRM PRACTICES............................................................................9
P4- EFFECTIVENESS OF DIFFERENT HRM PRACTICES..................................................................9
M3- DIFFERENT METHODS USED IN HRM PRACTICES...............................................................10
D2- CRITICAL EVALUATION OF HRM PRACTICES AND APPLICATION........................................11
TASK 3............................................................................................................................................13
P5- IMPORTANCE OF EMPLOYEE RELATION IN RESPECT TO INFLUENCING HRM DECISION
MAKING.....................................................................................................................................13
P6- KEY ELEMENTS OF EMPLOYMENT LEGISLATION AND THE IMPACT IT HAS ON HRM
DECISION MAKING.....................................................................................................................13
M4- KEY ASPECTS OF EMPLOYEES RELATIONS MANAGEMENT AND EMPLOYMENT
LEGISLATIONS THAT AFFECT HRM DECISION MAKING.............................................................14
D3- CRITICAL EVALUATION OF EMPLOYEE RELATION AND THE APPLICATIONS OF HRM
PRACTICES..................................................................................................................................15
TASK 4............................................................................................................................................16
P7- APPLICATIONS OF HRM PRACTICES IN WORK RELATED CONTEXT.....................................16
M5- RATIONALE FOR THE APPLICATION OF SPECIFIC HRM PRACTICES IN WORK RELATED
CONTEXT....................................................................................................................................19
D3- CRITICAL EVALUATION OF EMPLOYEE RELATION AND THE APPLICATION OF HRM
PRACTICES..................................................................................................................................19
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CONCLUSION.................................................................................................................................20
REFERENCES...................................................................................................................................21
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INTRODUCTION
Human resource management is referred as the HR department, which is able to maximize the
performances of an individual and also helps the organization by recruiting and selecting new
employees towards achieving the organizational goals and objectives. It majorly concerned with
the several policies and regulations in order to provide training and development program to
the employees, so that they can learn new things and works according to gain competitive
advantages.
In this assignment, the scope and purpose of HRM in terms of resourcing with the appropriate
skills and business functions will describe regards with the organization called Costa Coffee UK,
which is British multinational coffee house that is popular for their taste of coffee, which blends
in the customer’s mouth and give them ultimate experience accordingly. It is known as the
second largest and fast-growing chain in the world. The internal and external factors of HR
management will describe that can affect the decision-making process of a company.
Furthermore, practices of HRM with the job specification, CV, offer letter and other major
functions will describe in a manner in context to Costa Coffee.
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TASK 1
P1- PURPOSE AND SCOPE OF HRM IN TERMS OF RESOURCING AND PLANNING
The human resource management is one of the major functional departments of the
organization, which is responsible for recruitment and hiring process within the organization.
They also conduct training and development program for the entire staff and employee of the
company, by which they can develop their skill set and gain the success as well. The major
purpose of HRM practices in Costa coffee is to organize and manage the overall functions with
providing such orientation and induction organization to the people. As Costa coffee is one of
the largest and fastest growing chains in the world that have approximately 1375 coffee shops
in the UK and more than the 800 restaurant chain in all over the world (Bratton and Gold,
2017). In order to further development and growth of the company, the HR department makes
effective plans and strategic decisions that must be followed by the employees and other co-
workers. Staffing, training orientation, performance appraisal and to motivating the staff are
the major functions of HRM practices.
The scope of HRM practices can be referred as the extensive and far-reaching. It is not just
empowering the people while they manage and focuses on the physical or emotional capital of
employees. It comprises of the diverse functional system with eth recognition and reward,
industrial relation, grievance handling and the legal procedure and many more that can strike
an organizational objective (Gilbert, et al. 2011).
M1- FUNCTIONS OF HRM THAT PROVIDE SKILLS TO FULFILL BUSINESS
OBJECTIVES
A function of HRM in the Costa coffee shop of UK are described below that are as important for
fulfilling the desire of people and helps in making strategic decision or planning towards
accomplishing the specified goals and objectives.
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Figure: different functions of HRM
[Source: https://keydifferences.com/difference-between-personnel-management-and-human-
resource-management.html]
 Assessment of human resource: it is the initial stage of HRM function in which the
company identifies or evaluates the strengths, weaknesses and other factors of the
current employees and then makes plans accordingly.
 Forecasting of demands: it is important to analyse the demands of workers and entire
staff members in the organization in order to fulfil their wishes.
 Supply forecasting: supply forecasting with the overall required resources and
manpower is estimated in this step, by which they can easily make their plan in order to
accomplish the goals and objectives (Armstrong and Taylor, 2014).
 Matching the supply and demand: the HRM of Costa coffee makes their plans
effectively and also brings out the supply and demand chain towards accomplishment
and it also resolves the issues of shortage and retention of manpower accordingly.
 Action plan: several planning has been made by the HRM for implementing the strategic
actions towards gaining competitive advantages.
 Opportunities for forecasting process: this step helps the organization to determine the
future needs and requirements and also increases the effectiveness as well.
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P2- STRENGTHS AND WEAKNESSES OF DIFFERENT APPROACHES TO
RECRUITMENT AND SELECTION
As the major functions of the HRM department are recruitment and selection process and they
HR department uses various approaches while selecting the perfect candidate for the
organization such as internet recruiting, face-to-face interview, testing, and much another
process. It is significant in this process but there are various challenging situations too that can
affect the strategy and entire functional program (Cascio, 2018). There are majorly two types of
basic recruitment process such as internal and external. Internal recruitment is defined as when
the opportunity of employment filled the gap within the organization while in the external
process, referred the candidate outside of the organization.
Strengths of internal and external hiring:
 It gives the opportunity to the people.
 Develops skills and personal abilities.
 Cost effective methodology has been used while recruiting and selecting the candidate.
 Boosts loyalty and puts the positive impact.
 Saves time while internal hiring process.
Weaknesses of internal and external hiring:
 Limited employment opportunity.
 Quite difficult to ascertain the individual’s quality (Bidwell and Keller, 2014).
 External hiring is quite expensive.
 Huge competition
M2- EVALUATION OF STRENGTH AND WEAKNESSES OF DIFFERENT
RECRUITMENT APPROACHES
As mentioned above that the HRM of Costa coffee has been utilized various approaches and
methodologies in order to recruit and hire a candidate for the betterment of the organization.
The major strength of the internal hiring is the enhancement of ability while external hiring
gives the opportunity to the people (Fong, et al. 2011). On the other hand, the weak point of
internal recruitment comprises stagnation and lack of diversity while external hiring is quite
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expensive and time-consuming. Different recruitment approaches and the strength and
weaknesses of these methods are described below-
RECRUITMENT METHODS STRENGTHS WEAKNESSES
A face-to-face interview
selection process
 Easy to analyze the ability
of candidates
 time-consuming
Online selection via job
boards and websites
 Cost-effective approach
 Supports branding
information.
 Maintains consistency
 Not everyone can take
the advantage of this.
 An allegation of
discrimination.
Recruitment agencies  Speed of responses
 Direct contact
 Less reputable
 Directs deals may put
negative impact
Press advertising  Positive communication
 Fixed cost
 Slow process
 Limited accessibility
Social networks  An effective way of
communication (Alfes, et
al. 2013).
 Allows promotional
strategy for the branding
 If poorly managed, then
impacted the functions
of an organization.
D1- CRITICAL EVALUATION OF STRENGTHS AND WEAKNESSES OF DIFFERENT
RECRUITMENT PROCESS
The function of HRM within the Costa coffee is major focuses on the recruitment, selection, and
training, recognition and the development of the organization in order to set the standards and
work towards accomplishment of goals and objectives as well. They also provide appropriate
direction to their entire staff and the employees, so that they can do their work in an effective
manner and gain the advantages accordingly. As it is well known that the Costa coffee is world’s
greatest chain of coffee shops and attracts many of the customers by providing such luscious
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taste of coffee. Staffing and training program is one of the major concerns of HRM but there are
some of the bad impacts too that organization faces the challenges (Conley, 2014).
Moreover, internal hiring is effective for the organization because it enhances the effectiveness
and also increases abilities and skills of the co-workers and staff members. It boosts their
confidence, which helps in gaining competitive advantages accordingly. On the other hand,
external hiring process provides an opportunity to the people for employment but it is quite
expensive and there is a need to provide related information regarding the organizational vision
and mission, which takes a lot of time. Apart from that, some of the other weak links of internal
hiring are huge competition, revitalization etc.
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TASK 2
P3- BENEFITS OF DIFFERENT HRM PRACTICES
The effective approaches and practices of human resource department enhance the
productivity and proficiency of the organization. Training and development program conducted
by the HR department helps the people to develop their skill set and abilities according to the
requirements in order to accomplish the goals and objectives. They also help in the decision-
making process of the company in order to implement the procedures and different
approaches, by which they can gain the advantages and enhances profitability as well.
The major benefits of the HRM practices are as follows-
 It builds the team within the organization and also helps in creating the healthy culture.
 Helps to engage the people in the procedures and business practices.
 They taking care of the performances management system of the organizational culture.
 Creates values and allotted roles or responsibilities to the staff members according to
their experience and knowledge (Albrech, 2011).
 Helps in resolving the conflicts.
 Maintains healthy relationship and encourage the staff workers for their working
practice.
 Ensures safety and security within the organization.
 Responsible to make plans towards gaining competitive advantages.
P4- EFFECTIVENESS OF DIFFERENT HRM PRACTICES
HRM practice is most prominent and comprehensive activity within the Costa coffee that helps
in resolving many of the problems and issues. They also provide required resources to the
company according to the betterment and competition. As it focuses on the strong relationship,
health and safety and the positive working culture, where the people can feel safe and share
their views and opinions too. Involvement of the co-workers and employees in the different
activities of business is viable part and helps in enhancing the productivity of the organization
as well (Albrech, 2011).
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Figure: different practices of HRM
[source: http://www.gmdeveloper.com/strategic-hrm-its-difference-with-hr-
management.html]
Training and development program that is conducted by the HRM is foremost part and activity
of the department by which the people can learn new things and develops their abilities
accordingly. these practices of HRM increases the profit rate and motivates the people towards
their working criteria by which they can easily perform better in order to the attainment of the
organizational goals and objectives (D'Cruz and Noronha, 2011).
Moreover, another important practice of HRM is to ensure health and safety within the
organization that helps to create a healthy environment and positive working culture. The
strong relationship between employees and employer also maintains by the HRM that helps in
achieving profit and improving effectiveness.
M3- DIFFERENT METHODS USED IN HRM PRACTICES
There are various approaches and the working practices have been utilized by the HRM within
the Costa coffee in order to gain profit and enhancing profitability rate as well. As mentioned
above that the training, staffing, health and safety, team building, recruitment, resolving the
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problems and many other practices are the major key aspects of HRM. In order to create the
healthy environment within the organization, they involve each and every employee in the
decision-making process and all other practices of business so that they the people can feel the
valuable part of the company and do their works in an effective manner accordingly (Wilson,
2014). They also encourage and motivate their employees by rewarding and recognizing them,
which helps in boosting the confidence and enhances profitability or effectiveness.
Within the Costa coffee, the HRM is also responsible to creates values and norms and allotted
the different roles and responsibilities to the people according to their experiences and
knowledge, so that they can also do their work in an effective manner accordingly.
Furthermore, the strong relationship and team building approach has been also used by the
HRM of Costa coffee and for this, they maintain healthy working environment positive culture
by which the people make their relationship with each other, which helps in resolving the
conflicts and other problematic situations within the organization.
D2- CRITICAL EVALUATION OF HRM PRACTICES AND APPLICATION
In this globalized world, technical advancements and the innovative terms have been taking
place and the HRM of Costa coffee makes their plans and decision according to gaining
competitive advantages and enhancing the effectiveness as well. Strategic way of HR practices
and activities is referred as the formulation of organizational strategies that are implemented
for increasing awareness and encouraging the employees and entire staff workers towards their
working criteria by which they can easily do their work effectively and in manner respectively
(Guest, 2011).it is important to analyze the different needs and requirements of the people and
then providing them such services in order to accomplishing the goals and objectives.
Moreover, the Costa Coffee HRM practices majorly focus on the customer satisfaction and new
development worldwide, they used several models and approaches for setting the standards
and encouraging the employees as well. Involvement and engagement of employees may help
in boosts their confidence and also maintains a strong relationship with other by which many of
the conflicting situations can be reduced as well as a strong team can also be built accordingly
(Shams, 2013). Reward, recognition, bonuses, promotion and many other tactics are also used
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