HRM Report: Positive, Negative Appraisal, Recruitment, and Rewards

This report delves into key aspects of Human Resource Management (HRM), focusing on appraisal, recruitment, and reward systems. It begins by analyzing the positive and negative impacts of appraisals on the psychological contract within an organization, using Marks & Spencer as a case study. The report then critically examines recruitment and selection policies, highlighting best practices and providing a detailed overview of the recruitment process. Finally, it explores strategies to enhance reward packages to boost employee motivation without increasing salaries. The report covers various HRM methods, including internal and external recruitment, and selection procedures like interviews. It emphasizes the importance of fair appraisal systems and effective recruitment strategies for organizational success. The conclusion summarizes the key findings and implications for effective HRM practices, providing valuable insights for students.

Introduction to Human
Resource Management
& Learning and Talent

Table of Contents
INTRODUCTION...........................................................................................................................4
1. Identify the positive and negative aspects of appraisal and the impact of them on the
psychological contract.....................................................................................................................4
Introduction............................................................................................................................4
Main body...............................................................................................................................4
Conclusion..............................................................................................................................6
2. Obtain an organization's recruitment and selection policy/procedure for critically discussing
the content in the light of best practice............................................................................................6
Introduction............................................................................................................................6
Main body...............................................................................................................................7
Conclusion............................................................................................................................10
3. How can an organization reward package be enhanced to improve motivation without
increasing an employee's salary.....................................................................................................10
Introduction..........................................................................................................................10
Main body.............................................................................................................................10
Conclusion............................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Human resource management (HRM) refers to a formal system of managing the people's
working within the organization. It is a department in an entity which is responsible for
recruiting, hiring, deploying and managing human resource (Al-Emadi, Schwabenland and Wei,
2015). Learning of each personnel is important for their growth and development which can be
possible with adequate training and avenues for professional development. By recruiting, it
increases the existing workforce either internally or externally. The report covers positive and
negative aspects of appraisals and its impact on psychological contract, critical discussion on
recruitment and selection and enhancement of reward package for improving the motivation by
keeping the salary range constant.
1. Identify the positive and negative aspects of appraisal and the impact of them
on the psychological contract
Introduction
This first question is about impact of appraisal in the context of psychological contract.
Appraisal can affect in a positive as well as negative way which has been shown in this report.
This will be discussed in respect to Marks & Spencer for having better understanding. Appraisal
is way or process through which the human resource department examine the performance of
personnel appointed in the entity. There is a standard set by the M&S against which the
performance of each personnel is measured in order to determine whether to promote, terminate
or retain them. On coming to the highlighted term “psychological contract” refers to the set of
promises or expectations that have been decided in a deal between an employee and employer
(Bailey and et. al., 2018). These are unwritten in nature which can not be seen anywhere but
present in the psychology of a person working in the organization. The positive and negative
aspects of appraisal and impact on psychological contract has presented in the report.
Main body
Appraisal is an exercise done by organizations for evaluating the performance of the
people appointed for attaining the goals of the entity. It is conducted at a fixed interval such as
half-yearly or annually. It can be provided in the form of monetary as well as non-monetary for
motivating the employees to work hard. It can impact in both positive and negative ways on the
psychology of an employee appointed in the corporate.
3

Psychological contract is an unwritten and intangible contract based on the common
expectations in the employment. It is totally opposite to the written, formal and organised
document. It is an outcome of interaction between the people working in the organization such as
co-workers, managers and the enterprise itself. There is particular procedure for this as it is
merely the promises or expectations which have the tendency to evolve with the time on a
regular basis (Banfield, Kay and Royles, 2018). This has direct connection with the behaviour of
the employees. With regard to M&S, which is a renowned brand engaged in the business of
premium clothing, foods and home products at a globalised level. It has huge workforce working
for the company in different countries. Every person has different set of opinions, perceptions on
which their expectations are set. A candidate on getting selected for a job post put his or her
desires and expectations in front of the employer so that negotiations can be done for accepting
such terms. However, if the terms of psychological contract are rejected then their views about
the company changes. When a candidate is appointed for a post in the company then the
customer forms certain expectations in his mind. This is communicated to the employer by
reflecting the needs and requirements. However, the manager or leader may also have some
expectations from the team members according to which they have to act and carry their work. It
is treated as a normal contract which is invisible but exist and defining the relationship of
employer and employee. This should be followed without making any contravention from either
side as this can affect the productivity and efficiency of personnel resulting in greater conflicts
and disputes. Psychological contract should be made in a fair and just manner without breaching
any of the expectations. This makes the relationship between the employer and employee strong.
Appraisal can impact in positive as well as negative on the psychological contract. This has been
explained here under:
Positive and negative aspects of appraisal on psychological contract: Appraisal is a
major factor which affect the behaviour and expectations of the employees in positive and
negative sense (Bratton and Gold, 2017). These should be assessed for understanding the
psychology of the employees working in the organization. Hence, both the aspects have been
discussed in a comprehensive manner which are as follows:
Positive- Appraisal is a key element in encouraging the employees for working
efficiently. This helps keeping them motivated for producing expected results. The expectations
4

and needs of all the personnel can be taken into account which can help the organization in
deciding the appraisal to be provided to each employee. If the appraisal is done on the basis of
the performance of each person working in the company for which they get rewards which are
sufficient to fulfil their expectations, then this will create a positive impact on the psychology of
all the people. This will double their motivation to work hard and with complete dedication for
increasing their performance in a positive way.
Negative- The psychological contract can be negatively affected with the appraisal. The
major negative impact occurs when psychological contract is breached which lower down the
motivation level in the employees for doing their work (Chelladurai and Kerwin, 2018). If the
appraisal is not done justice to employees then this can change their positive mind-set into
negative. This kind of situation reduces the efficiency of each employee which increases the
disputes, deadlock and problems within the organizations. It has significant impact on the
psychology of an individual.
Conclusion
From the above matter, it has been concluded that psychological contract is an integral
part of the organization which may affect positively and negatively. In addition to this, it has a
strong and direct nexus with the performance of employees. Furthermore, the expectations is
influenced by the psychological contract which can make the employee change their perceptions.
This can be positive as well as negative based on the appraisal. In short, psychological contract
should be followed without making any breaches in order to motivate the employees to work
hard.
2. Obtain an organization's recruitment and selection policy/procedure for
critically discussing the content in the light of best practice
Introduction
This is the second question requiring discussion about recruitment and selection policy or
procedures applied in the entity which has been selected in this report. Recruitment is a
systematic process of searching and hiring the best candidate for a particular job (DeCenzo,
Robbins and Verhulst, 2016). It is of two types viz. External and internal which have their own
advantages and disadvantages. Selection process refers to choosing the right individual having
the qualifications, skills and capabilities required for the job positions in an organization. In the
5

context of M&S, the recruitment and selection process used by the company has been shown for
selecting the suitable candidate for the organization.
Main body
Recruitment- It is a method by which the human resource department find and hire the
suitable candidate for the job position in the organization. It comprises of number of steps in the
whole procedure by following which the employees are appointed. It begins with assessment of
job which is described in the advertisement for attracting different individuals eligible for the job
position (Hughes and Byrd, 2017). This process is directed towards hiring the best candidates
who have appeared for the interview. However, their eligibility is looked before making any
finalisation.
Selection- It is the process which is done after recruitment. When the candidates get
shortlisted after assessing their skills, capabilities and qualification, the next job for the human
resource department is to choose the most suitable person who will fit the position. In other
words, it is the act of selecting the right employee for the right job. This is completed by
examining the requisites of the job position with the qualification, skills and experience of the
candidate shortlisted. This is an appropriate way for choosing the suitable candidate.
Recruitment procedure-
Recruitment planning: This procedure begins with identifying the needs of the job
positions which have been vacant. The HR department is responsible for assessing the vacant job
posts.
Strategy development: An effective strategy should be formulated by the entity based on
the kinds and sources of recruitment.
Searching: This is the step in which the management find the candidates as per the
requirements of the job vacancy. The criteria for this are generally the skills and qualification
which can help the organization to attain its objectives effectively (Kirwan, 2016).
Screening: In this stage the organization distinguish between qualified and unqualified
candidates. Only the deserving individuals are chosen for the job vacancy.
Evaluation and control: The whole procedure comes to an end at this step in which the
managers assess the whole procedure by calculating each element involved in the recruitment
procedure. The major component is cost which is evaluated against the budgeted for ascertaining
the difference in order to have better control.
6

M&S can use number of methods of recruitment for having the best employee in the
organization. Any one of these can be chosen depending on the number of factors. M&S can opt
for a method described below:
Internal method: In this recruitment, the entity gives preference to the existing employees
working in the organization. M&S can use this method in which the senior professionals are
promoted to higher position depending on their performance. It has many advantages such as low
cost, less time and employees are already familiar with the policies of the company. This
encourage employees to have leadership skills in them in order to get promoted (McDonald and
Hite, 2015).
External method: This is a method in which candidates outside the enterprise are
selected. Large number of individuals are attracted to apply for interview so that company can
appoint the best and suitable person for the job position. This helps in getting fresh ideas with
new talent and skills. This increase innovation in the existing work culture. This method is
beneficial for getting employees who are capable and have the efficiency in performing the best.
However, it is time consuming and expensive way.
When comes to selection process, M&S can opt for interview as a technique for getting
the right employee for the right job. Interview is a method in which number of questions are
asked from the candidate for examining the skills and qualification on the basis of which
candidates are shortlisted.
Selection procedure-
Preliminary interview: This is the stage in which the candidates not falling in the criteria
specified by the company are eliminated. This helps in carrying out the whole process quickly.
Receiving applications: The candidates who are selected are given the application to be
filled by them. These includes basic and personal information as well as past experiences.
Screening of applications: The senior managers in the HR department screen the
applications for examining them on the basis of fixed criteria. They prepare a list who are
eligible to appear for the next round (Rees and Smith, eds., 2017).
Employment test: In this an aptitude test is conducted for gaining the knowledge about
the intellectual, conceptualised and analytical skills.
7

Interview: In this the selected individuals are put in front of the interviewer for the
interview session. They are asked certain questions for which they have to answer on the basis of
which the person is selected.
Reference checking: This is about going through the past records of the individual for
knowing the performance in academy.
Critical evaluation:
Positive Impact Negative impact
Recruitment  The employees
working in the
organization feel
enthusiastic to perform
well in order to get
promoted.
 The overall
performance of the
company as well as at
individual level is
improved which results
in higher productivity
and efficiency (Shields,
and et. al., 2015).
 This may result in
creating hurdles for the
organization in the way
of disputes. This
impact continuous
working of the
organization.
 There is no
involvement of new
and fresh talent hence,
company fails to have
innovative ideas.
Selection  New candidates outside
the organization are
attracted for the
interview, this helps
the organization in
getting new employees
which increases the
performance.
 The new skills and
 It is time consuming
and expensive method
which affects the
working of the
company.
8

ideas can be applied in
creating something
unique for increasing
the customer base.
Conclusion
As per the above stated, it has been concluded that company adopt internal and external
method for recruitment and interview method for selecting the best and suitable candidates for
their organisation. All these factors have both positive as well as negative impact on the
company.
3. How can an organization's reward package be enhanced to improve
motivation without increasing an employee's salary
Introduction
This is the last section of this report which states the elements that increasing the
performance of the personnel without making changes in the salary (Stewart and Brown, 2019).
Reward can be monetary or non-monetary which may include incentives, perks, promotion etc. It
plays a significant role in motivating the employees which further increases the productivity of
workforce for achieving the goals and objectives of the enterprise.
Main body
Organizations operate in different sectors by formulating purposes, policies, and tactics
for surviving in the competitive market. Right strategies help in performing effectively and
efficiently. Rewards may affect positively as well as negatively based on the fulfilment of their
expectations. It is important for retaining the employees for a long time for accomplishing the
goals and objectives of the organization. Strategies for reward can differ in each company for
keeping the employee motivated. Therefore, some of the reward packages have been discussed
below:
Recognition: This is the first preferred method which is used by the HR department of the
organization in cheering up the employees for performing their own jobs effectively (Taylor,
Doherty and McGraw, 2015). In the context of M&S, it should appreciate the employees on the
9

basis of their work and achievements at fixed duration for encouraging them to perform well
within the organization. The employee who has performed well should be given recognition in
front of everyone working in the entity. This provides motivation to other workers as well as
they look for such recognition.
Non-monetary appraisal: These are the benefits which are given to potential employees
in the organization. These are non-monetary in nature which are given to personnel for
encouraging them to work hard in order to achieve goals and objectives. These can be given
monthly basis so that tasks assigned for a month can be attained within the particular time. With
regard to M&S, manages their employee very well by providing them expected rewards on
monthly basis. This helps better management of the workforce so that goals can be accomplished
within the time (Vance and Paik, 2015).
Holiday breaks: Everybody needs holidays to enjoy their life by staying away from the
work. This releases the stress and rejuvenate them to work with double effort. There are many
companies who find this as an effective way of motivating their employees. Also, by this
rewards personnel can be retained for a long time. Furthermore, company can also take their staff
out on trips or conduct one day activity for increasing the interaction. M&S consider this as an
useful way in which they provide both domestic as well as international tours to keep their
energy level intact. This helps in creating a positive environment at the workplace.
Celebrate positive outcomes: If the employees produce positive outcomes, it is very
essential for the management team of the company to celebrate the results and appreciate the
employees by celebrating their success. It is essential for the managers to provide feedbacks to
the employees as well as appreciation, if they achieve the goals in an effective manner and
within given time period (Vance and Paik, 2015).
All these methods must adopted by the company so that they can enhance their current
reward packages and motivates the employees in an effective manner. It is very important for the
managers to motivate their current staff members so that they can create the positive working
environment (Wilton, 2016).
Conclusion
As per the above matter, it has been assessed the rewards is a huge component in creating
a positive environment at the workplace by keeping the employees motivated. It gives them
chances to fulfil their expectations. It can be in the form of monetary and non-monetary benefits
10

which will help the company to manage the employees in an effective way. This provides ways
in which the motivation level can be increased without changing the existing salary. The ultimate
result will be reflected in high profits and efficiency.
CONCLUSION
From the above report, it has been concluded that human resource is an essential part of
an organization which applies skills and capabilities in accomplishing the goals and objectives.
There should policies and procedures along with good leadership to provide them directions for
working efficiently. This report is drawn in essay format by explaining three different questions.
Positive and negative effect of appraisal on psychology of a person is defined. Furthermore,
recruitment and selection policy has been critically evaluated in the context of the selected
organization for showing the best practice. In addition to this, ways has been shown for making
changes in the reward package without making modification in the salary for encouraging the
motivation in the employees. In nutshell, the report shows the working of human resource
department for the benefit of the employees appointed in the company and how the whole system
works for achieving the goals within the specified time.
11

REFERENCES
Books & Journals:
Al-Emadi, A.A.Q., Schwabenland, C. and Wei, Q., 2015. The vital role of employee retention in
human resource management: A literature review. IUP Journal of Organizational
Behavior. 14(3). p.7.
Bailey, C., and et. al., 2018. Strategic human resource management. Oxford University Press.
Banfield, P., Kay, R. and Royles, D., 2018. Introduction to human resource management.
Oxford University Press.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016. Fundamentals of Human Resource
Management, Binder Ready Version. John Wiley & Sons.
Hughes, C. and Byrd, M., 2017. Managing human resource development programs: Current
issues and evolving trends. Springer.
Kirwan, C., 2016. Making sense of organizational learning: Putting theory into practice.
Routledge.
McDonald, K. and Hite, L., 2015. Career development: A human resource development
perspective. Routledge.
Rees, G. and Smith, P. eds., 2017. Strategic human resource management: An international
perspective. Sage.
Shields, J., and et. al., 2015. Managing employee performance & reward: Concepts, practices,
strategies. Cambridge University Press.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. Wiley.
Taylor, T., Doherty, A. and McGraw, P., 2015. Managing people in sport organizations: A
strategic human resource management perspective. Routledge.
Vance, C.M. and Paik, Y., 2015. Managing a global workforce. Routledge.
Wilton, N., 2016. An introduction to human resource management. Sage.
12