Human Resource Management Report: Posh Nosh Ltd. and Tesco Comparison

This report provides a comprehensive analysis of human resource management (HRM) practices, focusing on a case study of Posh Nosh Ltd., a small to medium enterprise (SME) in London, and comparing its practices with those of Tesco. The report covers various aspects of HRM, including the differences between personnel management and HRM, the contribution of HRM to organizational goals, the roles and responsibilities of line managers, and the impact of legal and regulatory frameworks. It delves into human resource planning, recruitment and selection processes, motivational theories, reward systems, and employee performance management. The report also examines the reasons behind employee cessation and the impact of legal frameworks on these processes. Through this analysis, the report aims to highlight the importance of effective HRM in achieving organizational success, employee motivation, and legal compliance.

Human Resource
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Difference between personnel and human resource management.........................................1
1.2 Contribution of HRM in organisational purposes.................................................................1
1.3 Roles and responsibilities the line managers have in HRM..................................................2
1.4 Impact of legal and regulatory framework on HRM.............................................................2
TASK 2............................................................................................................................................3
2.1 Reasons and importance of human resource planning..........................................................3
2.2 Stages involved in planning human resource requirements..................................................3
2.3 Comparing recruitment and selection process of Posh Nosh Ltd. with other organisation...4
2.4 Effectiveness of recruitment and selection techniques used in both organisations...............4
TASK 3............................................................................................................................................5
3.1 Link between motivational theory and reward systems........................................................5
3.2 Key elements involved in the job evaluation process and other factors determining pay.....5
3.3 Effectiveness of reward systems in different contexts for Posh Nosh Ltd............................5
3.4 Different methods used for monitoring employee’s performance.........................................6
TASK 4............................................................................................................................................6
4.1 Reasons behind cessation of employees................................................................................6
4.2 Difference between exit procedures of employees from one firm to another.......................7
4.3 Impact of regulatory and legal framework on employee cessation arrangements.................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Human resource management (HRM) is the basic necessity of an organisation to survive
in the long run. Without having effective management of the human resources, it is not possible
for a business to attain all its set targets on time. In order to maximise the employee’s
performance, HRM plays a significant role as it is primarily concerned with the keeping the
workforce highly motivated and satisfied. In the present report, difference between personnel and
human resource management will be discussed along with understanding the way of recruiting
employees with reference to Posh Nosh Limited which is a SME situated in London. Here, there
will be study made on understanding the way in which employees are rewarded in order to
motivate and retain them.
TASK 1
1.1 Difference between personnel and human resource management
The personnel management is highly focused on the norms, customs as well as
established practices and is quiet a rigid approach. While, on the other hand, human resource
approach is much flexible and it highly emphasises on giving the importance to values and
mission. The personnel management approach consists of several rules, procedures and policies
being imposed on the human resources while, in human resource management, policies are
framed as per the changing situations that are in favour and interest of the employees (Absar and
et.al., 2012). In personnel management, staffing, payroll, contractual obligations along with the
other administrative tasks are involved and it is not much concerned about the welfare and
satisfaction of workforce. On the contrary, in HRM, main focus is on satisfaction of employees
only so that they can be retained for longer span of time (Freeman and Ceriello, 2011).
Therefore, it can be said that human resource management is a better approach for Posh Nosh
Ltd. as with the same, employees can be kept highly motivated and thus, retaining them and
enjoy the benefits from their skills, knowledge and experience can be effectually gained.
1.2 Contribution of HRM in organisational purposes
Human resource management makes a huge contribution in fulfilling the organisational
purposes. As one of the major aims of Posh Nosh Ltd. is to hire best suitable candidates in the
firm so as to make it successful, HR manager is the responsible person for same. In addition to
this, keeping the workforce motivated to perform their tasks with higher efficiency is also one of
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the major tasks that come under human resource management (Amin and et.al., 2014). With
using appropriate methods, morale of the workforce is kept high by the HR manager with an aim
to maximise their performance and ultimately the productivity in business. With the help of
providing proper training and development sessions, HR manager in Posh Nosh Ltd. can enhance
the skills and knowledge of employees by which they would get motivated and will stay in firm
in the long run. Thus, it is clear that HRM is having high contribution in the attaining
organisational purposes (Boell and Turner, 2013).
1.3 Roles and responsibilities the line managers have in HRM
In Posh Nosh Ltd., there are many roles and responsibilities being fulfilled by the line
managers. The major role played by them is making employees engaged so that they would
always feel to be focused by their supervisor. Line managers are the reason behind maintaining a
strong, healthy and positive culture in the organisation (Afiouni, 2013). Also, they play a
significant role in the performance appraisals of employees by giving proper feedback to the HR
manager regarding their work. Also, in order to bring discipline at the workplace, line managers
prove to be very important as they are the one who are in direct contact with the employees and
thus, it is their main responsibility to monitor and control them so that they would attain their
assigned targets on time (The role of line managers in HR, 2014). It can be said that there is a
strong relation in between the line managers and HR manager in Posh Nosh Ltd. It is because;
HR manager performs all his activities with the help of getting information from line managers
only.
1.4 Impact of legal and regulatory framework on HRM
From the beginning of 21st century, every organisation has become liable to perform all
imposed laws and legislation by the UK government so as to run business with sustainability and
to stay in the market for longer period. Now-a-days, due to globalisation and privatisation,
business organisations are being governed with specific and effective institutional regulatory
framework. This legal regulatory framework put a huge impact on the overall activities of
business activities of firm and so as it is applicable on Posh Nosh Ltd. (Han and et.al., 2013). As
per the regulatory framework, HRM is the major key issue for which maximum laws have been
imposed with an aim to keep the welfare of employees and stop any kind of discrimination being
done with them. In the cited firm, regulatory framework can affect the business activities in
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terms of labour relations, compensation, working environment, organizational culture, etc.
However, another area of HRM which can get affected by the legal framework is equal employee
opportunity. Therefore, it is the responsibility of Posh Nosh Ltd. to treat all its employees in an
equal manner and give similar opportunities to all (Gary, 2011). However, non-compliance of the
laws and legislation imposed as per regulatory and legal framework may lead government to take
strict actions against the firm.
TASK 2
2.1 Reasons and importance of human resource planning
In Posh Nosh Ltd., human resource planning is of high importance and there are many
reasons for which it is required to be done. Major reason for which HR planning is done to have
adequate manpower in the organisation so that there would be delay in the operations because of
deficit or surplus of human resources. It is because; inadequate manpower leads to create stress
on employees while surplus may lead to create wastage of resources in the organisation. Also, in
Posh Nosh Ltd., HR planning is required so that proper use of existing human resources can be
made as well as their future requirements can also be assessed regarding the number of
manpower needed (Need and importance of HRP, 2012). Along with that, HRP is highly
important for controlling the human resources that are already deployed in the firm. Apart from
that, HRP is significant for making the employees ready to accept the changes whenever occur in
terms of technology and globalisation.
2.2 Stages involved in planning human resource requirements
Majorly, there are specific stages of planning the human resource requirements which
Posh Nosh Ltd. has to fulfil in order to have sufficient manpower in the organisation. These are:
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Figure 1: Stages in HRP
 Identifying the need of manpower – In the first stage, need of human resources is
analysed so that all operations can be effectually carried out.
 Assessing the present inventory of human resources – In lieu of the same, present
inventory of human resources is assessed so as to have an idea regarding number of
people required to be hired in the firm (Hassan, 2010).
 Making forecast regarding demand and supply of manpower – After the same,
forecasting is done in terms of number of employees needed in the future along with
deciding the sources from where supply of manpower will be done that can be internal
and external both depending on the position vacant in Posh Nosh Ltd.
 Analysing the manpower gap – Then the manpower gap is analysed with respect to the
present and required number of human resources.
 Implementing the action plan – According to the same, process of recruitment and
selection starts so as to find the best suitable candidates in organisation.
 Monitoring and controlling – At last, monitoring on the process will be done that whether
the set targets have been achieved or not. If not, corrective measures are taken to reach at
the final objectives (Afiouni, 2013).
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Identifying the need of manpower
Assessing the present inventory of human resources
Making forecast regarding demand and supply of manpower
Analysing the manpower gap
Implementing the action plan

2.3 Comparing recruitment and selection process of Posh Nosh Ltd. with other organisation
In Posh Nosh Ltd., the recruitment and selection process is being followed in a very
systematic manner where in the first stage, invitation is given to the people by advertising on
company’s websites for the vacant positions. Once the firm gathers CVs of all applicants,
shortlisting is done on the basis of skills, knowledge and qualification of candidates. After the
same, all those who have been shortlisted are called for the interview and those who clear this
round reach to the next level (Riley, 2014). Here, the final interview is done by HR and
respective departmental manager where the best suitable candidate is selected. In this stage,
negotiation of salary is done along with stating the working conditions, company’s policies, etc.
However, in Tesco which is a retail firm, recruitment and selection process is done in a
very simple manner. Whenever a vacancy occurs in this firm, advertisement is given on digital
media as well as in newspapers and radio. Walk-in-interviews are taken and candidates who suit
best with the requirements of vacant position are hired on the basis of conducting interview with
them. However, for some specific positions, aptitude and psychological tests are also taken
(Absar and et.al., 2012).
2.4 Effectiveness of recruitment and selection techniques used in both organisations
It is significant for any firm to do workforce planning in an effectual manner and so as in
Posh nosh Ltd. so that sufficient manpower will be there in organization whenever required. It
can be termed as a way by which existing staff is trained for gaining responsive new staff so that
vacant positions can be fulfilled. Posh Nosh Ltd. and Tesco can gain talented employees if
recruitment and selection will be done in an effective manner by the performance of business
will get improved. Also, with effective use of recruitment and selection techniques, firms can
gain new job talents along with various opportunities in the market to grow and become
successful (Maley, 2010).
TASK 3
3.1 Link between motivational theory and reward systems
There is a strong relation in between the motivational theory and reward systems as main
focus of both the concepts is on encouraging employee’s morale so that their productivity can be
increased. It can be seen with the help of Herzberg two factor and Maslow’s hierarchy of needs
theory. Both of them help in providing rewards to the employees by assessing their needs.
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Monetary rewards include bonus, incentives, increment in salary, etc. While, non-monetary
rewards include promotion, appreciation or recognition. However, these rewards can be in both
firms, that is, monetary and non-monetary. In Posh Nosh Ltd., to keep the employees motivated,
along with using motivation theories and providing rewards, training and development sessions
should also be provided to them (Amin and et.al., 2014). This will help increasing their skills and
knowledge that will assist in enhancing their confidence level.
3.2 Key elements involved in the job evaluation process and other factors determining pay
In Posh Nosh Ltd., it is the responsibility of human resource manager to make employees
aware regarding their roles and duties and responsibilities by taking the assistance of job
evaluation. With the help of same, a general idea about employee’s roles is provided to them
with respect to carry out their performance in the most effective manner. There are various tools
and techniques which help in the process job evaluation which help in making comparison in
between the actual and desired performance of employees. In Posh Nosh Ltd., pointing factors
are used for rating the effectiveness of work done by employees (Freeman and Ceriello, 2011).
Along with that, these are the course of action of job analysis as well as job description,
evaluation of the performance of workforce is judged on basis of quality of their work done.
3.3 Effectiveness of reward systems in different contexts for Posh Nosh Ltd.
Effectiveness of reward system can be judged by assessing the motivation level of
employees in the firm. There are many benefits that Posh Nosh Ltd. is having with providing
rewards to the employees. Firm is offering both monetary as well as non-monetary rewards to the
employees on the basis of their performance. With the help of this, it is effectually keeping the
workforce happy and satisfied with their work and thus, they stay with organisation in the long
run. Also, high motivation level increases their efficiency to perform tasks in a better way (Boell
and Turner, 2013). Apart from that, through offering rewards as per the performance given by
staff, rate of employee turnover has been reduced to high extent in Posh Nosh Ltd. and firm is
gaining the advantage of retaining talent that is leading business to grow at a fast pace.
3.4 Different methods used for monitoring employee’s performance
Monitoring of employees is leading Posh Nosh Ltd. to gain various benefits as under the
same, performance of employees is evaluated and accordingly, corrective actions are taken if any
deviations are found. In cited organisation, immediate authorities are responsible to monitor the
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work of employees on constant basis. Grading system is used by the organisation as per which
performance of each employee is assessed in terms of the services provided by him/her to the
ultimate customers along with quality rendered to them. Further, there are some standards set by
Posh Nosh Ltd. which if met by the employees, management becomes liable to give them
rewards for the same. However, in some cases, balance card is also used by the firm to judge
employee’s performance (Gary, 2011).
TASK 4
4.1 Reasons behind cessation of employees
In Posh Nosh Ltd., there are several reasons because of which firm terminates the
employees. Among all reasons, the major one is that if in case an employee performs in-
disciplinary or unethical action in the organisation like theft, fraud or violence, firm terminates
him/her on immediate basis. Apart from that, if the rate of absenteeism of an employee is very
high and he/she is taking leaves for avoidable reasons, then company feels better to terminate the
person to save its cost (Han and et.al., 2013). In addition this, if rules and regulations are break
by any employee or if he/she do not comply with company’s policies, then, Posh Nosh Ltd.
terminates the individual. Moreover, if the employee is unable to perform duties assigned to him
as per the expectations of firm, he is no more entertained in the organisation and this also
becomes one of the reason behind his cessation. Company can reduce the rate of employee
turnover by providing them effective training sessions regarding the way of working and can
made them well aware with the importance of complying with company’s rules, regulations and
policies along with the consequences of non-compliance of same (Riley, 2014).
4.2 Difference between exit procedures of employees from one firm to another
Posh Nosh Ltd., at the time when employee leaves organisation, HR manager asks reason
for the same from respective person. If the manager gets satisfied with the reason, various
formalities are done with him/her in terms of contracts for the completion of employment with
this firm that they have signed at the time of joining. This is done if they want to leave the firm
on immediate basis and if their reason for the same is genuine. Otherwise, they need to serve the
notice period of one month prior leaving job. On the contrary, in Tesco, initial stages are same,
but in the last step, if employee does not serve the notice period, they keep their salary of the
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prior month the worked for. In this way, the exit procedures in both the firms take place (Maley,
2010).
4.3 Impact of regulatory and legal framework on employee cessation arrangements
UK government has imposed various laws and legislation that put a huge impact on the
employee cessation arrangements. In accordance with regulatory and legal framework, Posh
Nosh Ltd. has to follow specific norms and policies in case of terminating any employee as
behind the same, there must be some genuine reason like if he/she would have conducted any in-
disciplined or unethical practice at the workplace. Also, as per regulatory and legal framework,
Posh Nosh Ltd. cannot make discrimination with the employees on any basis as well as it has to
offer equal opportunities to work to every individual working in the firm (Hassan, 2010). As the
laws are changing and fluctuating at constant basis, it is important for the firm to consider them
as if an employee is terminated for avoidable reason, it would have to face severe consequences
by the side of government.
CONCLUSION
From the above report, it can be concluded that for Posh Nosh Limited, it is important to
have a formal human resource function so that workforce can be effectually managed and targets
can be effectually met within the stipulated time period. It has been assessed from the report that
Posh Nosh would become able to attain all its set ambitious growth plans if its human resources
will be managed in an effective manner. Overall, it can be articulated from the report that if
HRM is key to attain success and growth in business.
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REFERENCES
Books and Journals
Absar, N. and et.al., 2012. HRM-market performance relationship: evidence from Bangladeshi
organizations. South Asian Journal of Global Business Research. 1(2). pp. 238–255.
Afiouni, F., 2013. Human capital management: a new name for HRM? International Journal of
Learning and Intellectual Capital. 1(10.). pp. 18-34.
Amin, M. and et.al., 2014. The impact of human resource management practices on
performance: Evidence from a Public University. The TQM Journal. 26(2). pp. 125–142.
Boell, M. J. and Turner, S. G., 2013. Human Resource Management in the Hospitality Industry:
A Guide to Best Practice. Routledge.
Freeman, C. and Ceriello, V. R., 2011. Human resource management systems: strategies, tactics,
and techniques. 2nd ed. Jossey-Bass Publishers.
Gary, D., 2011. Human Resource Management. Pearson Education India.
Han, Y. and et.al., 2013. China's civil service adopts e-HRM … up to a point: Most offices blend
paper-based and electronic systems. Human Resource Management International Digest.
21(4). pp. 33–34.
Hassan, A., 2010. Linking quality assurance to human resource management: a study of SMEs in
Malaysia. International Journal of Quality & Reliability Management. 27(6). pp. 641–
657.
Maley, F. J., 2010. The influence of various human resource management strategies on the
performance management of subsidiary managers. Asia-Pacific Journal of Business
Administration. 3(1). pp.28 – 46.
Riley, M., 2014. Human Resource Management in the Hospitality and Tourism Industry. 2nd ed.
Routledge.
Online
Need and importance of HRP. 2012. [Online]. Available through:
<https://corehr.wordpress.com/2012/08/06/need-and-importance-of-hrp/>. [Accessed on
28th April 2017].
The role of line managers in HR. 2014. [Online]. Available through: <http://www.cipd.co.uk/hr-
resources/factsheets/role-line-managers-hr.aspx>. [Accessed on 28th April 2017].
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