Human Resource Management Practices: A Comprehensive Report

Desklib provides past papers and solved assignments for students. This report explores various aspects of human resource management.

HUMAN RESOURCE MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................................4
LO1: NATURE AND SCOPE OF HRM.............................................................................................................4
DEFINITIONS OF HRM..............................................................................................................................4
FUNCTIONS AND ACTIVITIES OF HRM.....................................................................................................4
THE ‘BEST FIT’ APPROACH VS ‘BEST PRACTICE’.......................................................................................4
THE HARD AND SOFT MODELS OF HRM..................................................................................................5
WORKFORCE PLANNING..........................................................................................................................5
TYPES OF LABOUR MARKET, LABOUR MARKET TRENDS AND PESTLE.....................................................5
THE INTERNAL LABOUR MARKET.............................................................................................................5
ANALYZING TURNOVER, STABILITY AND RETENTION..............................................................................6
THE IMPACT OF LEGAL AND REGULATORY FRAMEWORKS......................................................................6
RECRUITMENT.........................................................................................................................................6
SELECTION...............................................................................................................................................7
ON-BOARDING AND INDUCTION.............................................................................................................7
LO2: EFFECTIVENESS OF THE KEY ELEMENTS OF HUMAN RESOURCE.........................................................8
MANAGEMENT IN AN ORGANIZATION........................................................................................................8
LEARNING, DEVELOPMENT AND TRAINING.............................................................................................8
DIFFERENTIATING DEVELOPMENT AND TRAINING..............................................................................8
IDENTIFYING TRAINING NEEDS- THE TRAINING GAP...........................................................................8
TYPES OF TRAINING.............................................................................................................................8
EVALUATION OF TRAINING..................................................................................................................8
JOB AND WORKPLACE DESIGN................................................................................................................9
REWARD MANAGEMENT: EXTRINSIC AND INTRINSIC REWARDS FROM WORK..................................9
THE LINK BETWEEN MOTIVATIONAL THEORY AND REWARD..............................................................9

SERIES OF JOB DESIGN-JOB EXTENSION TECHNIQUES.........................................................................9
THE FLEXIBLE ORGANIZATION.................................................................................................................9
TYPES OF FLEXIBILITY...........................................................................................................................9
MODELS OF FLEXIBLE ORGANIZATIONS...............................................................................................9
Benefits to employers and benefits to employees of flexible working practices...............................10
PERFORMANCE AND REWARD..............................................................................................................10
METHODS USED TO MONITOR EMPLOYEE PERFORMANCE..............................................................10
TYPES OF PAYMENT AND REWARD SYSTEM......................................................................................10
METHODS OF A DETERMINATION.....................................................................................................11
LO 3: INTERNAL AND EXTERNAL FACTORS THAT AFFECT HUMAN RESOURCE MANAGEMENT DECISION-
MAKING.....................................................................................................................................................11
EMPLOYEE RELATIONS...........................................................................................................................11
MAINTAINING GOOD EMPLOYEE RELATIONS....................................................................................11
STRATEGIES FOR BUILDING AND IMPROVING EMPLOYEE RELATIONS AND ENGAGEMENT..............11
EMPLOYEE RELATIONS AND THE LAW...................................................................................................11
THE PURPOSE OF EMPLOYMENT LAW...............................................................................................11
KEY LEGAL ISSUES AND CONSTRAINTS...............................................................................................12
ETHICAL AND SOCIAL RESPONSIBILITIES............................................................................................12
TRADE UNIONS AND WORKPLACE REPRESENTATION.......................................................................12
THE ROLE OF TRADE UNION..............................................................................................................12
COLLECTIVE AGREEMENTS................................................................................................................12
DISCIPLINE, GRIEVANCES AND REDUNDANCY...................................................................................12
LO4: HUMAN RESOURCE PRACTICES.........................................................................................................14
JOB AND PERSON SPECIFICATIONS........................................................................................................14
IMPACT OF TECHNOLOGY ON RECRUITMENT AND SELECTION.............................................................14
DESIGNING AND PLACING JOB ADVERTISEMENTS................................................................................15

SHORTLISTING AND PROCESSING APPLICATIONS..............................................................................15
INTERVIEWING PREPARATION AND BEST PRACTICE..........................................................................15
SELECTION BEST PRACTICE................................................................................................................16
CONCLUSION.............................................................................................................................................16
REFERENCE LIST.........................................................................................................................................17

INTRODUCTION
Human resource management is the process of recruiting, selecting, training, motivating,
appraising, compensating, maintaining the relationship with the employees. The functions of
the human resource department include planning, organizing, directing and controlling the
activities of employees (Bratton and Gold, 2017).
LO1: NATURE AND SCOPE OF HRM
DEFINITIONS OF HRM
Mathis and Jackson define HRM as it is an effective use of human resource and organization by
managing the activities of people.
Gray Dessler says that HRM is a tool or a practice to carry out the people or human resource
aspect of a management position including recruiting, selecting, training, appraising, rewarding,
compensating.
FUNCTIONS AND ACTIVITIES OF HRM
The activities and managerial functions of HRM department of Chocolate Prescence are as
follows:
1. Planning: Planning is identifying the number and the types of employees required in the
organization for successfully achieving the goals and objectives (DeCenzo et al., 2016).
2. Organizing: The task is allocated to the selected candidates according to their skills and
interest area. It includes designing the structure of the organization.
3. Directing: This includes directing and guiding the employees at a different level to
achieve their individual goals as well as the organizational goal.
4. Controlling: The planning, organizing and performance of the employees are then
checked based on their standards and then to take the corrective actions if there is a
deviation.

THE ‘BEST FIT’ APPROACH VS ‘BEST PRACTICE’
The best-fit approach is based on making strategies according to business strategies. HR
strategies are prepared according to the culture, external environment as well as operational
process. The best-fit approach takes into account the needs of both the organization and
employees (Ay et al., 2019).
Best practice approach is based on the close relationship between organizational performance
and HR strategies. Best practice approach focus on the methods or process that will give the
superior output (Wild, 2017).
THE HARD AND SOFT MODELS OF HRM
In the hard models of HRM, the HR manager treats the employees as the machinery or the
equipment. The HRM focus on analyzing the needs of the employees and then hire or fire the
employees.
In the soft models of HRM, the HR manager treats the employees as the most valuable assets
of the organization and a tool for achieving a competitive advantage over the competitors.
Here, the manager actions are to satisfy the needs of employees (Kapoutsis et al., 2016).
WORKFORCE PLANNING
Workforce planning is a tool to identify the current number of employees and the future needs
of the employees in the organization. It is the most important activity of any business
organization because it ensures the smooth functioning of the organization. By using workforce
planning, the company can calculate the working hours the employees need to work, shifts by
using labor and sales forecasting (Addicott et al., 2015).
TYPES OF LABOUR MARKET, LABOUR MARKET TRENDS AND PESTLE
The labor market also is known as the job market. The demand of the employees is generated
by the companies and employees provide the supply. There are three types of labor in the
market:

 Physical and mental labor: The work of physical labor involves physical labor and
physical strengths. On the other hand, the work of mental labor involves the use of a
brain that causes mental fatigue.
 Skilled and unskilled labor: If the labor requires special skills to complete the task then it
includes in the category of skilled labor. While, if the work does not require and skills to
complete the task then it includes in unskilled labor.
 Productive and unproductive labor: If the employees add some value to the product
then he is known as productive labor and if the actions of the employees do not add in
the net value then he is known as unproductive labor.
THE INTERNAL LABOUR MARKET
When the HR manager looks into the organization for filling the senior position in the
organization rather than giving the job to an external candidate is known as the internal labor
market. The reason for choosing the employees from inside the organization is because it
becomes very difficult for the manager to find the right candidate suitable for the position
(Wilton, 2016).
ANALYZING TURNOVER, STABILITY AND RETENTION
Turnover is the number of employees who leave the organization and is replaced by new
employees. The higher percentage of employee turnover shows the negative reputation of the
company.
Stability is the willingness of the employees to remain in the current job without being affected
by external factors. The job stability leads to more job satisfaction and employees have strong
loyalty towards the company.
Retention is the practising of various policies to keep the employees for a longer time. This is
because every company invests time and money to provide training to the company expects
some returns from the employees (Bode et al., 2015).

THE IMPACT OF LEGAL AND REGULATORY FRAMEWORKS
In the HRM practices, the companies have to follow the legal frameworks at the time of
recruitment and selection. The company should ensure that the recruitment process should be
fair and everyone has the right to apply for the position without the discrimination of caste,
color, race, gender etc.
RECRUITMENT
Recruiting is the process of finding, attracting and hiring the right candidates for the available
vacant position (Cristia and Aracena, 2017). The recruitment process can be done through two
sources:
Internal sources: If the recruitment of employees is done from within the organization then it is
called an internal source of recruitment (Rahman et al., 2015). For example, transfer,
promotion, retired employees etc.
External sources: If the recruitment of employees is done from outside the organization then it
is called an external source of recruitment. For example, campus recruitment, employee
agency, public advertisement, recommendations etc. (Nilsson and Löjdqvist, 2016)
Job analysis is a process of collecting information regarding the roles, responsibilities, skills,
outcomes of the external environment related to the job.
The job description is a document that describes the duties, skills, purpose and responsibilities
required for a specific role.
The personal specification is the specification of the skills required for a particular position
offered by a company. It includes educational qualification, training experience etc.
The competency framework is a way to clearly define the performance of the employees for
organizational success.

SELECTION
Selection is the process of evaluating and interviewing the candidate and then finally selecting
the candidate for a specific job based on certain criteria. Main methods for selecting the
candidates are as follows:
1. Ability test
Ability test is used to measure the person’s logical, mathematical, reasoning capabilities of the
candidates.
Strengths: 1. Suitable when there are large numbers of candidates.
2. Predict job performance for a more complex position.
Weakness: 1. Maybe expensive and time-consuming to develop the questions
2. Interviewing
It is a face to face interaction with the interviewer. The interviewer prepares some questions
and gets the details about the candidates.
Strengths: 1. Evaluate the presentation and verbal skills of candidates.
2. The candidate prepares himself/herself for this type of interviews.
Weaknesses: 1. Individuals can easily manipulate their answers according to the situation.
2. Not suitable when the number of candidates is more.
ON-BOARDING AND INDUCTION
Onboarding is a long term process in which the employees learn the attitudes, skills, knowledge
and behaviour related to their job. The employees can take days, months or years to
understand organization, role and building relationship within the organization.
Induction or orientation is when the organization introduces new employees with the whole
organization or vice versa. It is an important procedure for new employees (Martin, 2016).

LO2: EFFECTIVENESS OF THE KEY ELEMENTS OF HUMAN RESOURCE
MANAGEMENT IN AN ORGANIZATION
LEARNING, DEVELOPMENT AND TRAINING
DIFFERENTIATING DEVELOPMENT AND TRAINING
Basis Training Development
Meaning It is a learning process where the
individual learns to develop skills
according to the requirement of the
job.
It is an educational process in
which employees learn for their
overall growth.
Emphasis on Present situation Future situation
Objective The objective of training is improving
the performance of employees.
The objective of development is to
prepare the individual for future
challenges.
Term Short-term Long-term
IDENTIFYING TRAINING NEEDS- THE TRAINING GAP
The need for training arises due to following reasons:
1. To bring standardization
2. Increase in productivity
3. Preparing to fulfil future needs
4. Reducing the rate of employee turnover
5. Employee job satisfaction
TYPES OF TRAINING
There are two types of training used by the manager i.e. on-the-job training methods and off-
the-job training methods. Some of these are as follows:

1. Induction training: It is for the new recruits in order to make them familiarize with the
policies, procedure, and internal environment of the organization (Taghipour and Ng,
2015).
2. Vestibule training: The employees are trained by keeping them away from the original
workplace.
3. Job training: In this method, job-related training is given to the employee to improve
efficiency and effectiveness while working.
EVALUATION OF TRAINING
The evaluation of training is to measure the effectiveness of the training i.e. whether it is worth
to provide the training or not or it needs some improvement. Training evaluation is a process of
collecting information on training activity which can further be used in decision making.
JOB AND WORKPLACE DESIGN
REWARD MANAGEMENT: EXTRINSIC AND INTRINSIC REWARDS FROM WORK
Intrinsic reward is an intangible reward i.e. this reward is the feeling of satisfaction derived
from completing the job. For example, word of praise, sense of achievement, recognition, and
pride from the job as well as seniors.
The extrinsic reward is the tangible reward that derives from the external sources i.e.
employers. It is also related to job performance but the employees do not always get the
extrinsic reward. It depends on the company's policy. For example, bonus, commission, fringe
benefits, promotion, profit sharing etc.
THE LINK BETWEEN MOTIVATIONAL THEORY AND REWARD
Motivation is the process of influencing the nature of other individuals through the power of
position. There is various motivational theory given by many psychologists such as Maslow's
need hierarchy theory, Herzberg's two-factor theory, Alderfer’s ERG theory etc. The aim of this
motivational theory is to understand the needs of the employees and to reward them
accordingly. The reward system of the company depends on job performance which indirectly
related to the motivation.

SERIES OF JOB DESIGN-JOB EXTENSION TECHNIQUES
Some of the job design techniques are as follows:
1. Work simplification
2. Job rotation
3. Job enrichment
4. Job enlargement
THE FLEXIBLE ORGANIZATION
TYPES OF FLEXIBILITY
Numerical flexibility: This involves that the organization bring labor in or labor out according to
the demand and supply of product or service.
Structural flexibility: Structural flexibility is informal in nature where the employees generate
their own ways to carry out the business more efficiently than the formal structure.
Functional flexibility: It states that the employees will also perform the task other than their
original task. This requires that the employees must be multitalented.
MODELS OF FLEXIBLE ORGANIZATIONS
Atkinson
The flexible firm model state by Atkinson says that there will be an informal structure of
workforce for meeting the organizational objectives by arranging the workforce according to
the requirement. Flexibility is categorized into two categories i.e. employee flexibility and work
flexibility (Ramsdal, 2016).
Charles Handy’s Shamrock Organization
Handy categorizes the workers into three types:
Core workers: permanent staff, full time
Peripheral workers: temporary, part-time and flexible workers