Human Resource Management Report: Posh Nosh Ltd HRM Analysis

This report provides a comprehensive analysis of Human Resource Management (HRM) practices, focusing on Posh Nosh Ltd, a small enterprise in the food industry. The report begins by differentiating between personnel management and HRM, emphasizing the modern approach's focus on employees as valuable assets. It then explores the functions of HRM, particularly in the context of a company expansion, highlighting roles such as recruitment, training, and performance management. The report also delves into the responsibilities of line managers in implementing HR policies and the impact of legal and regulatory frameworks on management practices, including employment laws and working time regulations. Furthermore, it examines the reasons for HR planning within Posh Nosh Ltd, outlining key stages such as analyzing firm goals, determining HR requirements, and estimating the supply of human resources. Recruitment and selection processes are compared, and the report explores the link between motivational theories and reward systems, job evaluation, and employee performance monitoring. Finally, the report discusses circumstances for employee cessation and the impact of legal frameworks on this process.

HUMAN RESOURCE
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Difference between personnel and human resource management........................................1
1.2 Function of Human resource management ..........................................................................2
1.3 Roles and responsibility of line manager..............................................................................3
1.4 Impact of legal and regulatory framework on management.................................................4
TASK 2............................................................................................................................................1
2.1 Reasons for HR planning for Posh Nosh Ltd........................................................................1
2.2 Stages implemented for HR planning...................................................................................1
2.3 Recruitment and selection process in Posh Nosh and MCD.................................................2
2.4 Recruitment and selection techniques in Posh Nosh and MCD............................................3
Task 3...............................................................................................................................................4
3.1 Link between motivational theory and reward system .......................................................4
3.2 Key elements in job evaluation process and factors that determine pay...............................5
3.3 Effectiveness of reward system.............................................................................................6
3.4 Methods to monitor employee performance.........................................................................6
TASK 4............................................................................................................................................7
4.1 Circumstance where employees cease their employment.....................................................7
4.2 Employee exit in two different organisation.........................................................................7
4.3 Impact of regulatory and legal framework in employee cessation.....................................10
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................11

ILLUSTRATION INDEX
Illustration 1: Sources of recruitment..............................................................................................3
Illustration 2: Exit process in organisation......................................................................................9

INTRODUCTION
Human resource management (HRM) means organising or management of human
resources in company. Its concerned with people management within the business entity while
focusing on policies and system of organisation. They work to maximize the performance of
employee so that they can help business in achieving there aims ad goals. There main job is to
add value to business through the use strategic movement of employee. In current time when
competitive world is in top gear human resources have become important part of organisation
that help- them to make there stand in market.
Human resource has become need of organisation. Nowadays even small enterprises are
also investing in this for effective and efficient working. The current report discusses the
difference between Personal and human resource management in context of Posh Nosh Limited
is Small Enterprise that provide an up-market food business in London offering take away and
eat in and catering. Along with it, it also discusses HRM emerging importance and need and its
effect in small and medium enterprises. Furthermore, it divulges in its roles such as recruiting,
reward, motivation and cessation of employee performance.
TASK 1
1.1 Difference between personnel and human resource management
Personnel and human resource management does not have much difference in it.
Personnel management is considered the traditional form of management while the modern form
is HRM. The major difference lies in their orientation and scope (Beardwell and Thompson,
2014). Personnel management has inverted approach and is limited where workers are
considered nothing more than tools. The workers are replaced when they are in no need of
organisation.. On other hand HRM think employees as the main asset of organisation who not
only help organisation in achieving their objectives but also add value to business (Bratton and
Gold, 2013). This management believe in mutuality and give and take relationship. They work
to enhance the performance and standard of human resource within the organisation so that
economic performance of entity can be increased.
Personnel Management Human Resource Management
Traditional Approach Modern Approach
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Indirect communication Direct communication
Employees are tool to company
Job evaluation is the base of pay
Employees are asset to company
performance evaluation is base of pay
Transactional management Transformational management
More focus on activities like recruiting,
harmony training etc.
More focus on employees, treat them as asset,
which add value to organisation.
It's not idea that make a successful organisation but the people working in it (Harrison,
2014). Being HR consultant, I would suggest to use Human resource management as the main
form of management for Posh and Nosh Ltd. As this management give more focus on people
working in organisation providing more working scope than personnel management. It
maximizes the working efficiency of employee which help organisation in increasing their
productivity. Where personnel management is self-regulatory HRM put more focus on
organization workforce making different strategies and policies to improve it. HRM is better
because it not only helps company in achieving its goal but also help in individual development
working to provide them with the best opportunity.
1.2 Function of Human resource management
There are many departments in an organisation who need to come together in order for
company to succeed. These departments are quite different from each other and has their own
function and responsibility known as personnel management task, when these all department
come together to reach the goal of an organisation with maximum effectiveness of employee
than it called human resource management task (Sikora, Ferris and Van Iddekinge, 2015). Posh
and Nosh plan to expand their business which will need proper management with increase in no.
of employees and responsibilities HRM can be useful to company in such situation.
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Human resource management is responsible for the human capital of organisation and act
as their care unit. Which help organisation to have efficient internal environment and a
competitive position in external market (Von Bogdandy, Dann and Goldmann, 2016). Its
responsible for the function like recruitment, training, reporting, performance management, legal
compliant process etc. They are responsible to select appropriate employee that can help
organisation in achieving their goal. HRM is a continuous investment done by company that
give efficient staff in return to entity through training. Creativity is the key on which HRM
works without it they are useless. They are responsible to create better rapport and trust among
employee so that they can be loyal to organisation and work there best for organisation
achievement. With the expansion plan Posh and Nosh need those employees who can be loyal to
them and does not leave them in time of difficulty, HRM help them to achieve their objectives
and also them in their management and success.
1.3 Roles and responsibility of line manager
Line manager play important role in organisation as they are not only responsible for
daily management and operation but also in implementation of HR policies. Decision making,
target setting is also one of its important function. It acts as link between teams or groups and
higher level of management (Saripalli, and Walters, 2013). A good manger is responsible for its
team working, it encourages them with constructive and positive. Line manager directly affect
the productivity and customer satisfaction of an organisation through directly influencing
employee’s engagement and satisfaction.
Though the strategies are made at senior management or in this case by the CEO of Posh
and Nosh Ltd but it's the line manager who is responsible for the correct implementation of this
strategy at lower level making sure that its working on time effectively. They are also
responsible to identify any problem regarding the strategy and their input on various activity and
strategies are considered valuable (Heckhausen, Wrosch and Schulz, 2015). The priority of an
organisation is get economic success while developing talent among workers. Line manager has
wide control over their team and for the promotion of talented professionalism. They are also
responsible for recruitment and monitoring of the individual (Naylor, Pritchard and Ilgen,
2013).
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They are also responsible for their team and make sure that they are satisfied with their
work and environment. If their team require resources or extra training than line manager are
responsible to go to the CEO and request them to meet there requirement. Line manager is
responsible for day to day management, monitoring, technical expertise, quality check etc.
1.4 Impact of legal and regulatory framework on management
To make sure that no unfairly means are used by organisation against employees,
government has introduced different laws that provide worker with equal opportunities. These
help in maintaining smooth working relationship among employees and employer. HRM has
many laws on employee regulation, maintenance and welfare. There are many acts which
company has to follow The Employment Exchange Act (1909): To help unemployed find employment. The Minimum Wages Act (1998): Where company are bound to pay £7.50 per hour for
workers aged over 25, £5.60 per hour for workers aged 18 to 20, £7.05 per hour for
workers aged 21 to 24. Equal Pay Act: No gender discrimination should be there in employment in context of
financial terms Employment Right Act: This act includes many sections that favour employees for e.g.
companies are required to create written statement that express the term of employment. .
Unfair dismissal is also included in this, where employee can take legal action against
employer if it finds his dismissal unfair.
 Working time regulation: It decides the time that people work. It applies to all workers
and advocate minimum rest break, weekly rest, daily rest and maximum average week.
According to it workers are not allowed to work for more than 48 hours a week.
Mandatory paid annual leave and minimum period rest of 20 min in 6-hour shifts.
It is necessary for organisation to follow this rules and regulation. Posh and Nosh if
doesn't follow these laws can lead them to legal hassle (Ciocchetti, 2015) which will not be
beneficial for there future plan of expansion and also affect the image of organisation.
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TASK 2
2.1 Reasons for HR planning for Posh Nosh Ltd
Human resources is very important in many areas ranging from plan of strategic to the
brand recognition. Posh nosh company has international chain in the world. It provides the good
quality food products to the customer. The utilization of the product and the services in the
organization is very hight because it provides a good quality and effective product to the client
(Mondy and Martocchio, 2016). Human resource management is the management in which it
provides the number of services to the employees. There are some reasons for HR plaining in the
firm:
 Strategy: Only HR improves the performance of the company by its knowledge of how
financial affects the firm success. Based on the industry needs the HR will take the
decision for the product and the services (Stone and et.al., 2015).
 Benefits: benefit specialists can only reduce the cost of the company along with the
turnover. They also know the employee benefits most likely to attract the worker and
replace the workers to enhance the performance of the company.
 Training and development: Training and development specialists helps and coordinate
with new employees' orientation and they give the effective and efficient training to the
new employees (Beadles and et.al., 2015).
 Recruitment: HR recruiter manage new employment process from screening CV to
schedule the interview in the firm. This firm has different strategies and methods to
recruit the employees in the entity.
 Selection: HR team take the decisions based on the organization's manpower needs. They
provide the guidelines to the managers who is suitable candidate or not (Greene, Brush
and Brown, 2015).
2.2 Stages implemented for HR planning
Human resources has vital role in this organization. This helps to achieve the objective
effectively. HR planning is a part of entire plan of the firm. Some stages are as follows:
 Analysis of firm plans and goals: HR planning procedure starts with the analysis of
overall plan in different departmental like marketing, sales and technical plans etc. If the
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firm has a higher level growth then it requires more members in all the departments to
meet the challenges of increased market share, new industry, new products and services
(Hanks, 2015). The innovative strategy of the firm requires huge manpower for
producing the product.
 Analysing of human resources planning goals: The main aim of this department in
posh nosh company is that it fulfil ls the present and the future needs of work force in the
firm. These departments must specify and clarify the policies for achievement (Kersiene
and Savaneviciene, 2015).
 Determination for HR requirement: The determination for required HR for the firm
must be simple if design and architecture of the job examined through keep in view the
accomplishment and appropriate knowledge for manipulate them and create an
appropriate estimation for future needs.
 Estimation of supply of human resources: To know the estimation of supply of HR for
the firm it must start with the current HR stock list of the firm. It is also known as
accounting of HR to be interpreted by the departments of the firm where complete
information like abilities, qualification, quality is available (Purser and et.al., 2015).
2.3 Recruitment and selection process in Posh Nosh and MCD
Recruitment refers as first step of appointing the best candidate out of several options
including attracting and selecting. However, this process is done through job advertisements,
professional association, campus recruitment, selecting out of for previous applicants. Therefore,
appropriate candidates are chosen for organisation's effectiveness and task accomplishments
(Mondy and Martocchio, 2016). However, Posh Nosh Limited uses job advertisement and
campus recruitment system for selecting the best candidate. In this process, advertisement of
vacancies and college's campus selection are done for selecting the best candidate among several
choices. While, on the other side, Mac Donald's as fast food centre of UK recruits workers from
selecting the best candidate out of previous and working employees. In accordance to this,
appropriate and the best suitable worker can appoint for serving food and dealing with customers
more efficiently.
However, both Posh Nosh Ltd and MCD apply different recruitment processes for their
entities to provide effective fast food services. In this regard, recruitment is done through job
advertisement, campus recruitment and different other methods. Therefore, food serving and
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customer dealing services of the organisations can be more effective for satisfying them at higher
level and working more efficiently for food serving. It is recognised that services of hotel entity
can be better in food serving and customer satisfaction at maximum level (Hanks, 2015).
Therefore, HR department can recruit the best applicant out of alternate choices for effectiveness
in hotel entity's services.
2.4 Recruitment and selection techniques in Posh Nosh and MCD
Both Posh Nosh Ltd and MCD apply different recruitment processes as campus
recruitment, job advertisement, selecting workers among previous able to increasing staff and
better quality services of entity. However, techniques applied for both fast food centres can be
understood as:
 Posh Nosh Ltd: Recruitment of new applicants for this entity is done through job
advertisement and campus recruitment. In this process, vacancies of workers are
advertised through different tools using newspaper, magazine, TV, radio, online sites etc.
However, it is considered as an external source of appointing candidates and encouraging
them for facing interview and getting job (Greene, Brush and Brown, 2015). In this
regard, variety of alternatives are determined for selection process and it is considered
that the best applicant can be chosen effectively.
 MCD: This fast food centre uses internal source of recruitment of workers for selecting
the appropriate candidate for food serving and customer dealing. In this regard, recruiter
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Illustration 1: Sources of recruitment
(Source: Recruitment methods, 2016).

appoints applicant from experienced and previous workers of MCD. However, it
emphasis on improving quality services of organisation in context to food serving and
customer dealing. Therefore, appointment of candidate remains trust worthy as less cost
in incurred on organising training and development programs in comparison to choosing
freshers or from external sources (Recruitment techniques, 2016). Thus, through using
this recruitment process remain favourable for providing fast food and beverage with
effective customer dealing efficiently.
Task 3
3.1 Link between motivational theory and reward system
Motivation can be describe as a desire to perform (Beadles and et.al., 2015). Motivate
employee are different from being happy these employees perform there the best regardless the
level of happiness. These employees are more productive and engaged and invested in company
activities (Harrison, 2014). These help employee to be more successful it also helps company
performance. Management can use different tactics to motivate there employee. Motivation help
in improving the performance of employee which directly affect the productivity of entity.
There are many way through which employees can be motivated such as through proper
guidance, appreciation, positive feedback etc. can all help an employee to get motivated. A
highly motivated person can be awarded by organisation so that it can keep doing the good
work (Saripalli and Walters, 2013). There is direct link between motivation and reward system.
Reward system are considered to be the best form of motivation (Ciocchetti, 2015). Better the
reward higher the level of motivation and higher level of performance. They can provide
employees with financial rewards such as pay perks, bonus, expense, salary etc.
Posh and Nosh is a small enterprise so using financial way to motivate there employees
can be costly for them furthermore, with there new investment they will need all the financial
backup they could have in this situation, its not necessary for organisation to use financial mean
to reward a person they can use promotion and recognition as a way to appreciate and motivate
there staff, this will also help in creating better working envt. and relationship among employees
and employer, increasing the trust of employee in organisation and motivational employees will
work harder for company success.
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3.2 Key elements in job evaluation process and factors that determine pay
It's a systematic comparison between jobs to determine there worth for making a pay
structure which acceptable and rational. It's a process that start with job analysis and end when
job value is ascertained for pay equity in jobs (Hanks, 2015). It does not determine the pay scale
but rather provide a structure of rational wage. The key elements of evaluation are Job content assessment: Its done through documentation process where duties and
responsibility of jobs are documented. Its also known as job description. It includes job
relevance in correspondence of the organisation goals, function of job, requirement to
complete that job. It also considers qualification, skills of person. Job value assessment: After the job content the assessment is made to identify the value
of job. Its determined on the basis of job difficulty and its rank in contribution to
organisation. Job contribution: It doesn't concern with the performance of individual only but the
overall element of job and its contribution to organisation. This help in finding that which
job has become irrelevant or not useful.
 Compensation Analysis: After all assessment the compensation of each job is determined
on the basis of all factors of job evaluation (Stone and et.al., 2015). It helps organisation
in re-evaluating jobs and compensation plans.
There are two factors which determine the pay of employee internal and external.
 Internal factors depend upon the worker himself and his calibre, job evaluation.
performance appraisal and company strategy. Job evaluation help organisation to come
up with satisfactory pay and an individual good performance can help him get award pay
and appraisal.
 External factor depend upon government legislature, labour unions, cost of living and
labour market. For e.g. Minimum wages act.
3.3 Effectiveness of reward system
Reward system has many functions to perform in organisation. It Posh and Nosh Ltd. use
this reward to enhance the motivation of employee, retaining good employee and decrease the
company turnover which gave the organisation an edge in this competitive world (Armstrong
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