Comprehensive Report: Human Resource Management at Adidas Company

This report provides a comprehensive analysis of human resource management (HRM) practices within Adidas. It begins by differentiating between personnel management and HRM, outlining the functions of HRM in contributing to organizational goals, and detailing the roles and responsibilities of line managers. The report then delves into human resource planning, exploring the reasons for its implementation, the stages involved, and a comparison of recruitment and selection processes across organizations. It further examines motivational theories, reward systems, job evaluation, and methods for monitoring employee performance. The report also addresses the reasons for employment cessation, exit procedures, and the impact of legal and regulatory frameworks on HRM. The analysis includes discussions on key topics such as recruitment, performance appraisal, training and development, and employee relations, ultimately contributing to a deeper understanding of effective HRM strategies within a global company context.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Difference between personnel management and human resource management...................3
1.2 Function of the human resource management in contributing to organisational purposes...5
1.3 Role and responsibilities of line managers in human resource management........................6
TASK 2............................................................................................................................................7
2.1 Reasons for human resource planning in organisations........................................................7
2.2 Stages involved in planning human resource requirements.................................................8
2.3 Compare the recruitment and selection process in two organisations...............................10
2.4 Effectiveness of the recruitment and selection techniques in two organisations...............11
TASK 3 .........................................................................................................................................12
3.1 Link between motivational theory......................................................................................12
and reward ...............................................................................................................................12
3.2 Process of job evaluation and..............................................................................................13
other factors determining pay...................................................................................................13
3.3 Effectiveness of reward systems.........................................................................................14
3.4 Methods organisations use to..............................................................................................15
monitor employee performance...............................................................................................15
D 3 Problem faced and solved while writing the assignment...................................................15
TASK 4..........................................................................................................................................16
4.1 Reasons for cessation of......................................................................................................16
employment with an organisation............................................................................................16
4.2 Employment exit procedures used......................................................................................17
by two organisations................................................................................................................17
4.3 Impact of the legal and regulatory......................................................................................17
framework on employment cessation.......................................................................................17
..................................................................................................................................................17
CONCLUSION..............................................................................................................................18
REFERNCES.................................................................................................................................19
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...................................................................................................................................................20
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INTRODUCTION
` Adidas is a world leading brand and has well established image in market. To improve its
functions, it has to increase productivity of manpower to gain organisational goals. Human
resource management is a system which is used by business organisation to manage its
employees. It helps in maximising HR performance to accomplish organisational goals and
objectives. HR manager is responsible for recruitment, selection, performance appraisal,
rewarding, training and development of employee in company (Daley, 2012). As there are
continuous changes in business environment, balanced practices are required to meet government
rules and regulations. Purposes of business organisation like Adidas are achieved by effective
and efficient functions to coordinate with market changes. As manger plays a vital role and
responsibilities in employee management to sharpen employee skills so that they can put their
maximum efforts. In the following report, impact analysis of legal and regulatory framework on
HRM will be discussed. A proper planning is necessary for effective management of employees
of company. Human Resource Planning process includes some major steps through which
strategy is made to enhance competencies of people. Every business organisation has its own
different recruitment and selection process due to specific nature of firm and their employees
(Guest, 2011). There are many techniques which are used in HR management to achieve goals
and objectives of profit maximisation and revenue generating in long term. Employees are
motivated by manager so that they feel more secured and involved at workplace as well as can
make more efforts to increase product and service quality of their company. So in following
report, various motivational theories and rewards will also be discussed.
TASK 1
1.1 Difference between personnel management and human resource management
Personnel Management is the process containing outline of individual goals and then
trying to achieve these objectives of a company. There are two types of targets like short term
and long term related to finance, time arrangement, education and career (Hendry, 2012). On
other hand, HRM is related to business organisation. Few differences between these both terms
are followings.
Basis of difference Personnel
management
Human resource management
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1. Approach This management process is a
traditional approach to manage
people in business organisation.
On other hand, this is a modern
approach to arrange employees
in company to strengthen their
performance in future.
2. Kind of Function In personnel management,
personal function is used to satisfy
employees.
Human resource management
uses administrative function to
accomplish goals and objectives.
3. Foundation of pay Job evaluation is base for pay to
people.
Performance is evaluated to
determine pay of human
resource in organisation.
4. Actions by
managementPersonnel management
takes procedure actions.
Management takes strategic
actions to fulfil business needs.
5. Main focus This mainly focuses on employee
welfare, personal administration
and establishing smooth labour
relation.Human resource
management concentrates on
development, maintenance,
acquisition and motivation of
employees of firm.
6. Treatment of employee In this management, human
resource is treated as Useful input
through which desired objectives
can be achieved.
On other hand, worker are
assumed as crucial and valuable
asset to accomplish goals in long
term in HRM.
7. Job designPersonnel
management conducts job design
according to labour division in
company
This contains job design which is
based on team work or group
work at particular time.
8. Decision making Only top management has right to In human resource management,
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take all decisions for organisation. employees are also participated
and collective decisions are
taken for betterment of firm.
9. Initiatives Partially taken by authority Integrated initiatives are taken in
HRM.
10. Communication It includes indirect
communication.It includes direct
interaction between employees
and top management.
1.2 Function of the human resource management in contributing to organisational purposes
HRM is very important part of Adidas as it helps in achieving various goals and targets
through functions. Relationship of employees, recruitment, selection, staffing, job analysis,
design, performance appraisal, their training & development and maintenance are main elements
of HRM and are briefed as follows:
 Recruitment and selection-This major function of human resource management
includes selecting appropriate candidate at right position for right job in business
organisation (Huselid and Becker, 2011). There are many ways to recruit employees like
interview, group discussion, written test and IQ analysis.
 Performance appraisal- Another part of human resource function is to analyse and
review performance of employee which helps to see any drawback or decrease in quality
of their efforts to achieve business goals.
 Training and development-This is one of major functions of HRM which includes
regular learning of employee by providing them knowledge to improve their performance
and get maximum results in the long term. So that every person can get more deep and
new information about their work to achieve reputed position at workplace in future.
 Maintenance of human resource-As employees are soul of any business organisation,
they need to be comfortable and familiar while working. For example, if there is any
conflict among workers, it can hinder growth and progress in future. So human resource
management makes sure to establish harmonised relationship among all people. Thus
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these functions contribute in strengthening position of Adidas in sports shoe market of
United Kingdom.
1.3 Role and responsibilities of line managers in human resource management
Line manger are those persons who establish connection between employees and top
management of company Adidas (Purce, 2014). He supervises on subordinate performance and
take appropriate actions if any fault is found. There are many roles and responsibilities of line
manager in human resource management as followings.
 He regularly monitor performance of individual as well as team in company.
 Recruitment and hiring of the most suitable employee is another function of line
manager.
 He provides training to semi-skilled employees so that they can improve their existing
performance for future.
 Line manager tries to maintain standard of quality in all operations and process of
organisation.
 He prepares reports about productivity of employees on monthly and weekly basis which
help top manager to estimate current situation within firm.
 Line manager makes sure to identify need of human resource and tries to fulfil them to
motivate them for better results in long run.
 Another function includes creating a healthy environment and encouragement for open
communication among employees. Line manager conducts surveys, interviews and
questionnaire to measure employee engagement in organisational activities and process.
 Employees are disciplined by line manager who enforces rules and regulation to maintain
code of behaviour among people at workplace.
 He tries to monitor efficiency in employee work and provide them increase or decrease in
pay according to that.
 Line manager makes sure that there is no discrimination with employees based on
religion, language or skin colour at workplace (Sparrow, Brewster and Chung, 2016).
Thus these above roles and responsibilities are executed to achieve long and short term
goals of business organisation to uplift its position in market.1.4 Impact of the legal and
regulatory framework on HR management
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Legal and regulatory framework is foundation for every business organisation like
Adidas to survive in market for long time. There are various laws which are implied by UK
government for smooth functioning and healthy atmosphere in market. Some crucial acts which
play a vital role in human resource management are Sex discrimination act (1997), Race relation
act (2000), Equal pay act (1970), Disability discrimination act (2005), Employment act (2008),
Work and family act (2006), Data protection act (1998) and Rehabilitation act (1974).Few of
these important legal and regulations can be explained as below.
 Sex discrimination act, 1997-As there are some cases when employees face partial
treatment due to their gender. For example, female employees are paid less salary in
comparison to male. This treatment makes them demotivated and their performance starts
decreasing .This regulation is implied on every business organisation to make sure that no
partiality or unfair behaviour is happened with employees.
 Race relation act, 2000-This legal implementation protects people at workplace from
unfair treatment on basis of skin tone which can decrease their confidence to work.
 Equal pay act, 1970-This regulatory framework provides equality among employees so
that they can get fair pay based on their work performance not their personality.
 Rehabilitation act, 1974-Another protection provided to employees at workplace is that
if anyone is found guilty in criminal act and punished, it must be ignored after
rehabilitation period. So that he would not face dark mark for whole life (Wright and
McMahan, 2011). Thus these above acts play a vital role to maintain fair and positive
ambiance at workplace.
TASK 2
2.1 Reasons for human resource planning in organisations
Human resource planning is process in which future requirement of employees is
estimated and methods to increase existing capacity of them. So, it focuses on demand and
supply of workers in future. There are some crucial reasons for HRP as followings.
 To ensure that right people is place on appropriate designation in organisation.
 To decrease the duration gap between new hiring and vacant position.
 To forecast skills and qualities which are required to improve existing performance.
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 To avoid wastage of money on wrong workers for critical tasks which are important for
company progress.
 It helps in forecasting demand of human resource in case more production and sales.

 Human resource planning is needed to evaluate what types of workers organisation has.
 Another reason for HRP is to analyse how available resources can be utilised.
 Human resource planning is needed to improve its productivity of employees and
services.
 It contributes in matching employee skills to current needs of organisation human
resource.
 It is needed because the company can use it to establish a balance between effective
employees and efficient services by them to get maximum satisfaction in long term.
 As there might be case of unfair practices which can harm atmosphere at workplace
(Bloom and Van, 2011). So business organisation needs a system to deal with situations
like this which is human resource planning.
 There is need of harmonised relationship between employee and employer. So HRP is
needed to contribute in it.
 To organise training and development programme for better performance of employees,
there is need of planning of employees.
 It helps in compensate uncertainty related to future requirement of human resource.
Thus human resource planning is one of the most important part of business organisation
to accomplish its objectives and goals of profit maximisation and revenue generating.
2.2 Stages involved in planning human resource requirements
Human resource planning helps business organisation to fulfil requirements of employees
in future to avoid uncertainty (Boxall and Purcell, 2011). There are many stages in HRP in
Adidas company to achieve objectives with accuracy and effectiveness as following.
1. Analysis of organisational objectives-First step of human resource planning is to
determine target and goals of business organisation like Adidas. Firm tries to analyse
whether its objectives is to gain profit maximisation or customer satisfaction in the long
term. According to these goals, employees are required in future.
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2. Inventory of present human source-Current number of employees and process of
business are calculated so that right person can be placed on right task. This may lead to
accomplishment of objective to capture market share. To avoid excess inventory of
human resource, balance is established between process and number of employees.
3. Forecasting demand and supply of human resource-Third stage of HRP includes
different methods to pre decide number of employee for specific processes. According to
demand, human resource manager arranges supply of people in business.
4. Estimate man power gap-Human resource planning applies some estimation methods to
measure gap between required and current number of man power in business organisation
like Adidas.
5. Formulating the final human resource action plan-After measuring required number
of workers, final action plan is prepared by HR manager to plan organised human
resource in business.
6. Monitoring, control and feedback-This is the final stage of human resource planning
process in Adidas. Being a retail company, employees are main key of organisation. So
after formulating action plan, HR manager has to monitor the plan and control any
drawback in results (Bratton and Gold, 2012). Thus there are many important stages
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which help in planning human resource in firm to achieve most suitable employee for
particular process of business.
2.3 Compare the recruitment and selection process in two organisations
Step in process Adidas DIADORA
First It identifies different number
of vacant positions in specific
department with skills and
qualities.
Job analysis in which what job
is needed and what kind of
candidate is required for that.
Second Position description is
developed for specific
designation.
Evaluation of tasks to be
undertaken in job description
Third Recruitment plan is developed
by human resource manager.
Job specification in which
required qualities and skills are
described.
Fourth A search committee is selected
to estimate required candidate
in future.
Candidates are attracted
through internal and external
advertisement so that they can
send their CV
Fifth Recruitment plan is
implemented.
Candidates are short listed fr
interview
Sixth Short listed applicants are
reviewed.
At final step, after selecting
suitable person by interview,
appointment letter is given.
Seventh Selected candidates are tested
based on personal interviews.
Eighth Short listed candidates are
hired after interview.
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Ninth Recruitment is finalized in
which contract of employment
is discussed.
Job description and specification of Adidas
Job description Job Non food manager
Reports to Branch manager
Area of business Branch-all sales areas
Job purposes To improve business and
performance in food product.
Person specification Skills Leadership skills, operating
skills and general skills are
required.
Job description and specification of DIADORA
Job description Job Marketing executive
Reports to Senior marketing manger
Area of business Non food areas.
Job purposes To give the best service to
customers by improving all
products.
Person specification Skills Decision making, planning and
problem solving.
2.4 Effectiveness of the recruitment and selection techniques in two organisations
DIADORA, being a leading retailer company, it uses may latest technologies for
recruiting the most suitable candidates for particular task. Company analyses job which helps in
estimating required number of employees in future. More experts candidates can perform the
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