Human Resource Management Report: HRM Functions and Practices Analysis

This report provides a comprehensive overview of Human Resource Management (HRM) practices. It begins by differentiating between HRM and personnel management, analyzing their core concepts, work designs, communication methods, and decision-making processes. The report then assesses key HRM functions, including planning, recruitment, training, and reward systems, emphasizing their significance in achieving organizational goals. It evaluates the roles and responsibilities of line managers within the context of HRM, highlighting their impact on workforce management and organizational culture. Furthermore, the report delves into the legal and regulatory frameworks governing HRM, addressing employment legislations and their implications for employee rights and workplace practices. Task 2 explores human resource planning, its importance, and the stages involved. The report also compares recruitment and selection processes, analyzes the effectiveness of various techniques, and examines the link between motivational theory and reward systems. It further investigates job evaluation, pay determination, and the effectiveness of reward systems, including methods for monitoring employee performance. The report concludes by addressing reasons for employment termination, exit procedures, and the impact of legal frameworks on cessation arrangements.

Human Resource
Management

Table of Contents
INTRODUCTION......................................................................................................................4
TASK 1......................................................................................................................................4
1.1 Differentiating between human resource management and personnel management.......4
1.2 Assessment of HRM functions........................................................................................6
1.3 Evaluation of roles and responsibilities of line managers...............................................6
1.4 Analysis of legal and regulatory framework on HRM....................................................7
TASK 2......................................................................................................................................8
2.1 Analysing the reasons for human resource planning.......................................................8
2.2 Stages involved in planning human resource requirements............................................9
2.3 Comparison of recruitment and selection process of two organisation.........................11
2.4 Effectiveness of recruitment and selection techniques in an organisation....................12
Task 3.......................................................................................................................................12
3.1 Link between motivational theory and reward at Virgin Media and other organisation
.............................................................................................................................................12
3.2 Process of job evaluation and factors determining pay at Virgin Media.......................14
3.3 Effectiveness of reward systems at Virgin Media.........................................................14
3.4 Examination of methods used to monitor employee performance................................15
Task 4.......................................................................................................................................16
4.1 Identification of reasons of termination and reasons for cessations of employment.....16
4.2 Employment exit procedures.........................................................................................17
4.3 Impact of legal and regulatory framework on employment cessation arrangements in
an organisation.....................................................................................................................17
Conclusion ...............................................................................................................................18
References................................................................................................................................19

Illustration Index
Illustration 1: Human Resource Planning.................................................................................9
Illustration 2: Maslow Motivational Pyramid..........................................................................12
Illustration 3: Herzberg's Factors............................................................................................13

INTRODUCTION
In the era of competitive global marketplace, corporate entities are changing their
viewpoint of managing human resources as a pool of talent and emphasizing on their vision
and mission to manage the work activities of human resources in an effective manner. The
roles and responsibilities of HRM are changing due to change in government policies, labour
legislations and up-gradation in technologies. Business organisations are making their
significant efforts to attract large pool of human capital rather than accumulating financial
capital. If companies have the ability to foresee business requirements then it will be
successfully able to gain competitive advantage and sustain profitability. The module here
particularly laid its concern over the functions of human resource management and current
issues and challenges that are emerging before HR managers. Furthermore, this unit also
focuses on various practices of HRM including recruitment and selection process,
employment cessation and retention arrangements. In addition to this, with the assistance of
various organisational theories and models with reference of Monsoon Accessorize, a British
multinational retail clothing chain is done in the study.
TASK 1
1.1 Differentiating between human resource management and personnel management
In ancient times, when people were not familiar with the aspects of human resource
management, then they used to implement personnel management approach at the workplace.
Personnel management can be defined as organising, planning, maintaining and obtaining a
workforce for the purpose of contributing to the individual, societal and organisational goals
in a significant manner (Armstrong and Taylor, 2014). Now, in the present scenario of
competitive business world, Monsoon Accessorize is focused to adopt modern approach of
managing human resources at the workplace as it is facing many issues regarding HR
management. Major difference between PM and HRM can be analysed by taking the
reference of two multinational clothing retailer Monsoon Accessorize and ASOS.com:
Particulars Personnel Management Human Resource
Management
Concept PM is mainly concerned with
planning, organising,
integration and maintenance
of people at work and their
On the other hand, human
resource management is
focused to maximize the
performance of employees,

relationships within
organisation for the purpose
of obtaining common set of
goals and objectives.
fulfilling their needs and
demands and resolving issues
that arise at the workplace.
Work Design In ASOS.com, division of
labour approach is applied for
completing a specific task.
On the contrast, in Monsoon,
tasks and projects are
distributed within groups and
teams.
Nature of relationships Pluralist Unitarist
Role of procedures In accordance with the
designed set of policies,
norms and procedures,
business operations are
performed in the ASOS.com.
In contrast to PM, according
to business needs, Monsoon
assigns tasks to their teams
(Boeri, Patacchini and Peri,
eds., 2015).
Mode of communication Indirect communication Open-door policy
Treatment of Workforce Under the influence of PM,
labours and workers are
treated as tools or human
machines in ASOS.com.
In Monsoon, employees are
considered as human capital
and important assets.
Decision making procedure Slow Quick and effective
Pay structure On the grounds of job
evaluation, ASOS.com
designs its wage structure.
On the grounds of
performance evaluation,
Monsoon forms its pay
structure.
Recruitment procedure In ASOS.com, there is
simpler process to hire and
recruit a person.
Complex structure and
process is complied with all
employment legislations.

With the above findings, it can be stated that human resource management is a better
approach than PM which can be understood by undertaking the differences between
personnel and human resource management (Armstrong and Taylor, 2014). HRM laid its
concern to attain desired objective by emphasising on the work performance and relationship
of employees at the workplace.
1.2 Assessment of HRM functions
Some key functions of HRM are discussed as below which can be undertaken by
Monsoon Accessorize Company in an effective manner: HR planning and organising: It is the foremost function of HRM to plan and organise
business activities of firm in an appropriate manner with the implications of
systematic procedures and policies. The Monsoon Company should determine its aim
and objectives which is to be attained by assessing various functions of HRM. Recruitment and selection procedures: HRM delivers significant value to the
Monsoon Accessorize by recruiting and selecting right candidates in the firm.
Moreover, it is also required to comply with all legislations and regulatory
frameworks at the workplace while recruiting people (Chang-Richards and et. al.,
2015). Training and Development sessions: The Monsoon Accessorize is also required to
conduct training and development sessions for their employees in order to train and
guide them according to the requirement of company (Armstrong and Taylor, 2014). Reward systems: Work performance of employees and their behaviour is rated in
organization according to which they are provided with substantial amount of
compensation, incentives and bonuses as well as leaves so that they can be motivated
and encouraged to work efficiently.
 Maintenance: HRM system in Monsoon is also responsible to maintain the working
conditions, health and safety concerns of employees. Through thus, they can sense the
feel of comfort at workplace.
1.3 Evaluation of roles and responsibilities of line managers
Roles and responsibilities of line managers in Monsoon Accessorize
 The line manager of company is responsible to set specific standards, benchmarks,
targets and deadlines of tasks so that efficiency of employees can be improved in an
effective manner.

 Line managers also hold responsibilities to organise and manage its workforce and
identify their strengths and weaknesses which are associated with their behaviour and
working performance (Engle and et.al., 2008).
 Managers lead the entire team and group into one specific direction by providing
proper guidance and training to them and conducting development sessions, seminars
and conferences.
 Along with this, line managers of Monsoon are also responsible to design appropriate
strategies and tactics for its organisation in order to attain uniqueness in its operations
and products.
 Line managers support HRM practices and functions effectually as he/she is the
person responsible for maintaining positive environment at the workplace and
allocating resources in accordance with the business needs.
 Line managers can also act the role of leader in many cases. The company Monsoon
will significantly implement HRM approach in its working premises so that there will
be smooth operations of workflow (Evans, Pucik & Björkman, 2011).
 This person also holds the responsibility to maintain discipline and set organisation's
norms and policies so that positive work culture can be maintained in the firm.
 Moreover, line managers of Monsoon also adopt various philosophies of achievement
like Guest Model of competitive advantage in order to sustain competitive advantage.
 By organising the work in an effective manner, line manager can effectively
encourage and motivate its team.
1.4 Analysis of legal and regulatory framework on HRM
Employment legislations and regulatory frameworks imposed at the workplace protect
the rights of employees and maintain smooth relationship among them. As there may be
many issues arise in Monsoon related to legal working ages, discrimination, safe working
conditions as well as health and safety issues; these are required to mitigate with the
implications of following judicial frameworks and regulations: Equal Employment opportunity Act 2010: The objectives of this act is to encourage
diversity in culture and eliminate any kind of discrimination during employment
course on the basis of protected characteristics such as race, age, sex, marriage,
gender, disabilities, beliefs and civil partnership (Engle and et.al., 2008).

 Disability Discrimination Act: This act prohibits discrimination against employees
with respect to their disabilities, education, provision of services and goods and
transport. Sex Discrimination Act (1995/1997): This act protects men and women from being
discriminated on the basis of their marital status and sex (leetwood and Hesketh,
2010). This act is also concerned with the employment, education and training at the
workplace of Monsoon in order to attain success and growth. Race Relation Act (1992-amended 2000): Monsoon can also implement this act to
prevent discrimination on the basis of race, region, nationality, ethnic, beliefs and
values of employees (Pettit and Sykes, 2015). The Equality Act 2010 supersedes this
law of act and integrates its provisions in an effective manner.
 Employment Act (2008): It is an act to make provisions for resolution of conflicts and
disputes among employees, enforcement of minimum salary and wages legislations
and provide compensation against underpayment or non-payment in the case of
financial losses in the organisation.
TASK 2
2.1 Analysing the reasons for human resource planning
Human Resource planning is a distinctive approach to match internal and external
supply of human resources with the available job vacancies anticipated within the
organisation in a standard time frame (Freeman and Ceriello, 2011). In accordance to the
present case scenario, the Monsoon Accessorize is experiencing high staff turnover, because
of scarcity of right candidate for the organisation. The clothing retailer has several vacancies,
that are required to fill by considering the HR matters. Thus, it has become necessary for the
Monsoon to implement HR planning for the following reasons:
 Prediction of current and future labour supply: An effective HRP predict the
availability of human resources within the marketplace, in relation to perform various
business activities (Engle and et.al., 2008). The HR manager of the Monsoon is
responsible to meet the business requirements by strategically planning and
organising all activities.
 Cope up with change: Human Resource planning is also studied to analyse changes
in the environmental factors, with the help of many tools and techniques, such as
SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis, PESTLE
(Political, Economical, Social, Technological, Environmental, Legal) analysis and

many more. These changes can be seasonal fluctuations in the financial status,
voluntary quits, increasing turnover rates and etc (Gannon and et. al., 2012). Thus, the
Monsoon Accessorize make effective plan to adopt recent changes in technologies
and Government policies.
 Recruitment process: Human Resource Planning also recruit and hire new human
resources, who are highly skilled, posses excellent knowledge, talent and acquired
higher education. The HR manager of Monsoon is liable to conduct placement
programmes for the cited purpose.
 Reduction of uncertainty: There can be many uncertainties and issues arise in the
competitive marketplace. So, by effectively planning all aspects of human resources,
projecting past trends and forecasting the future needs, the Monsoon can attain its
desired goals and objectives (Gannon and et. al., 2012).
2.2 Stages involved in planning human resource requirements
Human resource planning is a systematic procedure which can be implemented in the
Monsoon in order to ensue the availability of right number of people at right place and right
time who are capable and efficient enough to manage their work and contribute in the success
of the company. It comprises of many stages, which are stated below:
 Analysis of organisational objectives: HR manager of Monsoon Accessorize is
required to set goals and objectives to attain sustainability and profitability in future
(Gannon and et. al., 2012). The company is laying its focus to reduce the turnover rate
and increase productivity.
 Assessing current human resources: Then, the assessment of current available
human resources will be done in the competitive global marketplace. The Monsoon
can use many techniques to assess manpower, like a HR inventory report can be
maintained which will summarizes the information and skills of current workers
(Gardey and et. al., 2013). Human Resource Information Systems (HRIS) is also a
computerized database that constituents of detailed information about employees.

Illustration 1: Human Resource
Planning
Source: Haines and Bandt, 2002
 Prediction of future labour supply and demand: Next step is to forecast pat trends
and ratios of staff and match their demand and supply with available job vacancies.
Moreover, the HR manager of the Monsoon will also predict the supply of human
capital in the market place according to their needs (Gardey and et. al., 2013). There
are many techniques with the help of which, the organisation can forecast future
labour demand and supply, such as simulation, top-up and bottom-up approach, zero-
based forecasting and etc.
 Analysing gaps: Once the prediction of future labour supply and demand is done,
then it is required to estimate the gap between them (Jackson and Mathis, 2010).
There should not be any gap between demand and supply, if there would be deficit
number of HR's then, people will be recruited and if surplus candidates are available,
the company will seek to terminate their employees.
 Formulation and implementation of action plan: After assessing the availability of
manpower and estimating the gap between demand and supply, an action plan will be
formulated by the HR manager of the company, which includes recruitment process,
training and development program and cessation arrangements.

 Controlling feedbacks: Once the action plan is implemented, then it is required to
evaluate and measure several deficiencies and loop holes in the human resource plan.
Moreover, implemented action plan and designed action plan will be compared. HR
manager of Monsoon will take feedbacks and reviews from their employees and staff-
members.
2.3 Comparison of recruitment and selection process of two organisation
In an organisation, recruitment and selection process play crucial role, as it select
knowledgable and skilful candidates for operating various business functions. Business
organisations have diversified set of R&S process according to their requirement (Gardey and
et. al., 2013). In the present case scenario, by taking the reference of two companies,
ASOS.com and Monsoon Accessorize, impact of effective recruitment and selection process
can be attained.
Recruitment process of Monsoon Accessorize
Initially, the Monsoon give its advertisement in the newspapers, TV, radio and social
networking sites about its job vacancies. Interested employees will register their named in the
company's job portal and submit their resumes. The company will screen the applications and
short-list qualified candidates (Hughes and Ferrett, 2015). Then they will be called for further
selection process, which carry forward by conducting aptitude and logical tests. Then HR
manager of the company will short-list candidates on the basis of their skills and
qualifications. Further, they will be called to role play on some provided situation. After
passing these stages, finally candidates will be called for interview process, in which there
will be two rounds and applicants need to pass them. The Monsoon will organise face-to-face
interview in which, employees will be judged by probing those areas which are left
unaddressed in the tests. Then, background of selected candidates will be checked. Finally.
They will be provided with job offers in an effective manner.
Recruitment and selection process of ASOS.com
The R&S process of ASOS.com is simpler than that of Monsoon. The company will
advertise its job vacancies on social network sites, newspapers, radio and through other
medium. Candidates are allowed to submit their resumes at their office or on online job
portal, after then they will be called for further selection procedure in which, they have to
clear 3 rounds. First, candidates are required to clear group discussion round, then selected

candidates will be called for aptitude test (Mathis and et. al., 2016). After then, they will be
called for final interview process and provided with job offer letter.
2.4 Effectiveness of recruitment and selection techniques in an organisation
It can be stated that, recruitment and selection process of Monsoon was better than of
ASOS.com. As, Monsoon have been experiencing high employee turnover, reason being
scarcity of high-skilled and knowledgable people. That's why the company have adopted such
complex process of selection of employees, so that highly qualified and talented workforce
can be hired, who can easily adopt changes in the business environment. However, in
ASOS.com, there was less steps, which need to be passed by the candidates (Top Three
Recommendations for Implementing an HR Strategy in an Organization. 2014). Moreover,
there can also be other series of tests organised in the workplace, so that cream candidates
will be recruited, who will contribute their significant efforts to attain profitability and
sustainability of the organisation (Hughes and Ferrett, 2015). On the other hand, Monsoon
can also organise its placement programs in colleges and universities, so that freshers can be
hired, as they are more energetic and enthusiastic. Along with this, it can also remain in
contact with placement agencies and other institutions, which can avail potential candidates.
Furthermore, emphasise should be given on the communication, analytical and logical skills,
along with personal grooming and hospitality qualifications. In addition to this, companies
can also prefer to hire experienced people, who can significant contribute in the achievement
of success and growth and adapt changes in the competitive business world.
TASK 3
3.1 Link between motivational theory and reward at Virgin Media and other organisation
There is strong interrelationships between motivational theories and reward systems,
motivation is factor which influence and encourage human behaviour and working
potentialities within the workplace. The Virgin Media is world's largest multinational cable
company, which deals with mobile phones, TV and provide broadband services. To increase
the motivation level of employees, Virgin Media can adopt many motivational theories, like
Motivational theory of Maslow and Hertz-berg theory (Hughes and Ferrett, 2015). With the
assistance of Maslow theory, it can fulfil the demands and needs of employees. Maslow
theory determines the five needs of employees, which are starts from psychological needs,
safety needs, social needs, esteemed needs and self-actualisation needs. By fulfilling all these
needs, employees can be encouraged and motivated in an effective manner.