MOD003486 - Human Resources: Contractual Models Analysis & Examples

This report provides a detailed analysis of four types of contractual models used in Human Resources management: permanent full-time, permanent part-time, zero-hour casual, and fixed-term temporary contracts. Each model is defined, explained, and analyzed, highlighting its advantages and disadvantages. The report includes examples from different organizations to illustrate how and why these contractual approaches are used in practice. The analysis covers aspects such as job security, benefits, career development, liability, administrative workload, staffing levels, scheduling challenges, and flexibility for both employers and employees. The report concludes by summarizing the key considerations for organizations when choosing the most appropriate contractual model for their workforce needs.

Managing Human
Resource

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................4
Q.1.Definition, explanation & analysis of the four type of contractual models listed above,
including advantages as well as disadvantages of each..............................................................4
Q.2.Examples of practice from two different organisations showing how and why they use
different contractual approaches.................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Human Resources involves various function of recruiting, selecting, training, giving
social security to satisfy the employees of the company. Managing Human resource is
necessary in every organisation so that the objectives of the company can be achieved. For the
effective and efficient result it is compulsory to make control time to time. The organisation that
was selected in this assignment is Morrisons. It deals in retail industry. IT is the largest
supermarket in UK. It has its headquarters in United Kingdom. The founder of the company is
William Morrisons. In the report definition, explanation, analysis of contractual model is done
along with their merits and demerits, examples of practice from two different organisation
showing how and why they use different approaches of contract.
TASK
Q.1.Definition, explanation & analysis of the four type of contractual models listed above,
including advantages as well as disadvantages of each.
The four type of contractual model are describe as under:
Permanent full time contracts: Permanent contract is the most common type of contract
as it help the employers to retain their experienced and skilled employees. Permanent employees
perform their work in efficient and effective manner if they know in advance about the job
security and about career growth opportunities. It is such type of contract that exist upto the time
when either party decide to end the present relationship. It is also known as indefinite
agreement. Permanent employees may receive agreement that is valid for one year, three year
and five years. It can be review if the time period expires. Employer try to invest their precious
resources in permanent employees by actively appointing best talent, training them into
community and also offer substantial benefits. They work around 35 to 40 hours a week , on the
other hand part time workers work according to permanent part time contract under 35
hours(Brulin, 2016)
The advantage and disadvantage of full time permanent contract. There are many
permanent agreement that will appeal to workforce and benefits employer in attracting and to
retain talent.
Advantages:

 Job security: The stability of having a permanent job is very appealing to workforce. It
sets the mind of employees and allow them to invest them self totally in the business, and
improving and motivating engagement of employees.
 Benefits: By providing benefits like paid off time, Insurance related to health is a key
opportunity to attract and retain talented workers so that they join the team for long term.
It helps to strike a work life balance that tends to ensure satisfaction of employees &
effectiveness(Carnall, 2018)
 Opportunities of career development: This believe must be develop in the minds of
workforce that its not the job they perform its a career. Rather than investing the funds in
the process of recruiting, selecting, & training candidates that doesn't stick around. It is
good for those who are interested to invest in employees who can work towards the
company's future. It keep top and best talent for long term while supporting workforce to
create and develop new smart skills and grow their careers.
Disadvantages:
Greater liability: It provide the clarity through unilaterally outlining the term of contract.
It may make owners liable for losses and damage that prevails if the tesco of employment or
agreement is violated or breach. Employers should not agree or satisfy with the terms and
conditions they cannot meet(Caudill, 2016)
More administrative work: If some one work as a contractor it needs to organise their
saving plans, health insurance, saving for time off. Through employer these services are supplied
to employees. Growing business need to make sure their HR department. (Clydesdale, 2016)
Permanent Part Time Contract, in this contract the client require a member of team
who will work together on a permanent employment contract. In permanent part time contract
the employee works fewer than a full time employee. But the contract is on permanent basis. In
the contract clearly mentioned part time working hour. In this contract the employees hold
permanent position. This contract includes flexible schedule, they allowing the individual to fit
their work around their commitment. A permanent part time contract is similar to full time
contract. In both contracts there is difference of working hours. In part time the working hours is
lesser than full time contract. This type of contracts the employees have full rights as a full time
worker. The permanent part time contract is fixed term or casual contracts. These contracts will
not expire, but valid till when the employee wants to end the relation to organisation or company.

Various organisation have different policies of part time contracts. In these contract offer certain
benefits to employee. An employer is legally required to provide benefits to employee. There is
two examples- social security contribution or worker compensation. In this contract there is fix
criteria for unemployment insurance. The contractor offers many benefits for a part time
employee like paid sick leaves or paid vacation. This part time contract pays extra for those who
worked in night time. The workload for many organisation is not same. The managers makes the
work scheduled based on expected period. The permanent part time employees fill the gaps in
business work schedule. The permanent part time employees corporate in a workforce. It is a
good strategy for controlling the labour cost. It is beneficial to an organisation. The part time
employees require the orientation or training. The permanent part time contract is beneficial for
organisation in which the employees work on minimum wages. The managers provide safe and
secure working environment. (Common, 2016)
Advantages
The part time contract is provide new opportunities for employees. The part time jobs
create new opportunity for worker to take job and improve their portfolio. Because of the job
opportunity the job flows increased in market.
The part time contract is a good opportunity to earn money. It is a great opportunity for
those who want to earn extra money(Elsevier, 2016)
In this these type of job reduced the stress level and improved their health. In these job
more free time for employees. These type of jobs have less stress level in comparison of full time
job.
It is enables the employer to use their busy period efficiently. These contracts are
reducing the cost without reducing staff.
Disadvantages
May be some time it cause under staffing in organisation or firm. The part time job
employees is for limited working hours. Due to this the manager of firm is facing understaffing
problem(Edgell, 2019)
It creates difficulty to manage schedule or coordinating projects. In this manager create
the schedule according top all employees.
There is a disadvantage of this type of contract is the performance of employee in
evaluated properly. Due to part time time working employees.

Zero hours casual contract
Zero hours casual contract is between clients or employee. In this contract the employer
is not obliged to provide a ny minimum working hours. In this the employee may sign an
agreement. In which the employee available for work as when required. In this contract there is
not fixing the number of working hours. It is depend on jurisdiction and condition of
employment. It is differ from casual work. The zero hours casual contract is flexible according to
employer. In this the employer provide the job any time to employee. This type of contract is
used in agriculture, hotels, catering, education, healthcare. This type of jobs are used to enable on
call scheduling. In this the individual agrees to work for business. These business is not obliged
to guarantee the worker any set hours of work. These contracts are suitable where there is
unpredictability in the workflow. It helps the organisation to deal with specific skill requirement.
And deal with ups and downs attached to individual projects (Graham, 2018). These employees
engaging zero hours. And this will be useful in seasonal work or special events and busy period
demand. Zero hours casual contract is suitable while starting new business or entering in new
market. It is beneficial at when a business is often unsure of its performance. A zero hour casual
contract is provides flexibility to professional employees. These type of contract is useful when
working in different projects that allows to acquire new skills on the job and updated with market
condition. The job title or position is clearly mentioned in the contract. In the contract define the
duties or responsibilities of employee. In this the employee can work for more than one
employer(Gendzier, 2019)
Advantages
flexibility: when the workload of business is fluctuate, there is required more staff for
working. At that time the zero hour casual contract is useful(Goodman, 2019).
These contract's great advantage is who starts new business or entering in new market.
There the zero hour contract workers helps to mitigate the market risk. For new entrants these
employees are affordable(Morris, 2016)
Disadvantage
in this contract there is unpredictability for the employer. In this usually the employees
not accept the works. For avoiding this problem give advance notice to employees.
In zero hour casual contract here is lack of control over the employees. The employees
are not bound to work under a employer due to this there is lack of control(Paul, 2019).

Fixed Term Temporary Contract: It is the contract in which a company hire a
employee for a specific period of time. In most of the it will be for one year and can be extended
further according to the requirement. In this contract the payout or payment is fixed in advance
and fixed till the expire of the contact. Such type type of contract is not meant for permanent
employee. It is on temporary bases which require urgent attention or completion of task. It can
not be used to replace the existing employee or for a person, who is on leave.
Advantages of Fixed term temporary contract are:
great pay: In this contract, employee get a good salary for a particular task with in a set
time limit and also he/she gets timely payment. Otherwise employee have as choice to leave the
job( Morris, 2016)
Different job roles: In these type of jobs, employee gets a different types of job according
to their skills and capabilities. There no restriction to be stay with one organisation with single
job profile.
Holidays: Employee can take the holidays according to the requirement there is no strict
code of conduct to follow the norms of the organisation, because these employee are not
permanent employee of the company(Ri, 2019)
Training: When an individual get a new job then employer will give proper guidance and
training and then give the full responsibility of the work for that employee has be selected.
Flexibility: There is a flexible working environment for such employees as they are not
the permanent employee of the company. There is flexible working hours and days.
Disadvantages of Fixed term temporary contract are:
Being in the contract: There is a fixed contract for a fixed time period, so employee have
to stay with the job for that specific time period. Employee can not leave the job before
completion of the time periods(Stren, 2019).
Skills and development: Specialised job require good command on skills, only then a
employee can get a job. Organisations have lot of opinions for the employment. So it necessary
to be a skilled employee to perform its job effectively.
Discrimination in work place: Many times permanent employee do not respect the
temporary employees as they feel they are not the part of that organisation and will leave the
organisation after a short time period.

Third party pay role: Contract base employee have to contact to contact agency for the job and
there are many disadvantages like not getting sick leaves, paid vacation etc. Sometimes
employee have to pay some amount to the agency for the job, which is the extra effort for the job
seeker.
Q.2.Examples of practice from two different organisations showing how and why they use
different contractual approaches.
The two organisations that was selected in this assignment are Morrison and Tesco
Morrisons use permanent full time contracts and fixed term temporary contracts. Whereas
Tesco use Zero hours casual contract & permanent part time contracts for their respective
organisation. The contract depends on terms of employment and contract is dependant on the
basis of structure, size, nature, accessibility, scope of HR . It provides certain ease & confort to
company to perform various different legal formalities systematically. It is a binding contract
between two or more parties. Morrisons is the biggest retail company in UK that deals to supply
many food items or other products in their respective supermarket. It has its headquarters in
Brandford, UK. The CEO of the company is David potts. The founder of the company is William
Morrison. Value based pricing is used by the company it is totally depends on product value that
is perceived by audience. Audience posses large number of customer base and they require wider
base of employees as well. Around 50% of the workforce are temporary in Morrisons. On the
basis of this agreement it has phase variety of employment that make seperation on the basis of
their working. The organisation is able to use several staffing & firms so that it receive high
attention. In relation to the respective agreement most of the employees get missed from the
benefits that is designed and developed that tends to create brand image among all over the
world. The organisation also use documents from internal source to plan the whole assignment
and store most relevant and important information. On the basis of standard measures the
organisation can take decisions and it can be received through temporary staff members. In
which accessibility of market and their performance is control & manage as according to
working.
On the basis of suitability & requirement the status of employment and status is designed
to address certain facts. According to the demand of market area Morrisons supports its
workforce to develop certain stability and liberty that generate good clarity in sustained manner.
As their temporary employees is to manage email signature, social media as they have contract

with other company that support mini so and its flow services & market engagement also.
Additional the company also perform their task for future with the smart strategy of cost cutting
as to navigate strong slump it is used in the form of advertising, and it is also developed due to
existence of pandemic condition. It restricts many people who are interested in temporary &
contract working. In this hiring & investment is slows down because it is prepare to do whole
planning for the purpose of new start of employment. Around 3000 people globally affected this.
Morrisons employ around 145000 no. of contractors and temporary workforce to embrace
employees. The other organisation that was selected is Tesco. It is British multinational that has
deals in groceries and retailer. It has its headquarters in Welwyn Garden city, England. In terms
of revenue it stands in the ninth position in whole World. Ken Murphy is the CEO of the
organisation. Jack Cohen is the founder of the company. Their subsidiaries are Tesco bank,
Tesco mobile, Tesco Ireland etc. The organisation make clear focus on digital streaming,
commerce, etc. The organisation should posses stable marketing culture so that it develops
competitive zeal & spirit. In this manner happy & pleasant environment is developed. Tesco
deals with thousands of people globally. It also involve part time flexible employees that assist to
pack, deliver various services to the consumers on daily basis. It is the most effective and
efficient prospects in that relevant changes &modification is addressed. The organisation results
to higher turnover and maximised performance that generally increase and motivate job seekers
in systematic manner. Tesco has most suitable usage of expectations where employees are lined
up to perceived actual experiences.
As according to the hiring workforce of tesco make promise to employees of the
company regarding employment like performance, compensations, working hours, and various
other contract that is in the form of verbal & written. With advance network the organisation
generate more opportunities. In this different benefits related to employment like medical, social
security, other facilities that is follow to adequate requirement.
CONCLUSION
This is conclude from the above report that human resource plays a vital role in the
successful running of the organisation. HR manages all the staffing and training of all
employees, also values to the employee relationship in the organisation. By using different types
of contract. Permanent employment is suitable for the organisation to run a long way. It develop
the efficiency of the employees and build strong relationship in organisation. On other hand there

are other contract , which have some advantages and disadvantages. In order to run the
organisation choose suitable contract for the employment.. It will help in right staffing and uses
of efficient employees in the company. That will contribute the growth of the organisation. In
Zero hour casual contract, employee is accountable to the employer to be their , when employer
is calling for the shift. These all contract will benefit the organisation in different ways.

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