Human Resource Management Report: Employee Turnover Analysis

This report provides a detailed analysis of Human Resource Management (HRM) practices, focusing on employee turnover, selection methods, and recruitment strategies within the context of two organizations: Chocola Fantastica and Microsoft. The report begins with an executive summary highlighting the importance of HRM in maximizing employee performance and achieving organizational goals. It then delves into the purpose and significance of HRM functions, such as reward performance management, training and development, performance appraisals, and managing disputes, particularly in addressing the issue of staff turnover at Chocola Fantastica. The report evaluates the strengths and weaknesses of different selection methods, including assessment tests and interviews, and proposes improvements to enhance the selection process. Furthermore, it includes a person specification for a receptionist role and analyzes the advantages and disadvantages of current job advertising methods, recommending an improved job advert for a receptionist vacancy. The report emphasizes the importance of effective HRM practices in achieving business objectives and fostering employee engagement.

Human Resource
Management

EXECUTIVE SUMMARY
Human resource management is essential function of an organisation which is designed
for maximizing employee's performance in order to meet goal and objectives in appropriate
manner. This is the way of managing people and their activities in systematic manner. In order to
solve employee turnover issue, proper selection and retention of employees method has been
chosen which is regarded as important function of HR. There are different HRM practices which
should be implemented by organisation for motivating and encouraging staff and employees for
better outcomes.

INTRODUCTION
Human resource management is defined as process of different practices like hiring,
managing, recruiting, selecting employees in an organisation for achievement of goal and
objectives (Doppelt, 2017). It is managed by human resource manager so that work is carried in
appropriate manner. In this report, two organisation has been selected in order to complete
assigned work. The first organisation is Chocola Fantastica which is UK based company dealing
in tailored chocolate based greeting cards at South Wales. Similarly, Microsoft is Information
Technology organisation at US providing products of servers, office, windows, software and
others. This report covers purpose and importance of HRM for enhancing talents and skills for
fulfilment of business objectives. Effectiveness of different key elements of HR in organisation
along with internal and external factors affecting decision making and legislation required in
business. The employee engagement and their approaches are discussed in report.
SECTION 1
a) Purpose of HR function and its importance
According to Edwin Flippo, Human Resource Management means proper planning,
organising, controlling and directing of development, integration, separation, procurement,
compensation, maintenance of human resources to end which organisational, social and
individuals objectives are attained and achieved in an effective and efficient manner. Similarly,
HRM is an approach for managing people in organisation in order to gain competitive advantage.
This is mainly designed for maximizing employee performance in terms of service of employers
strategic objectives. As per scenario given in report, Chocola Fantastica is facing problem of
staff turnover that lead to high unemployment in business. In order to resolve, there are different
functions of HR which has their own purpose and importance along with indicating current
problem and future plan for growth. They are described below:
Reward Performance Management- It is defined as function where management of
organisation has to reward employees in fair, consistent and equitable manner for motivating and
encouraging them for achievement of goal and objectives in an effective and efficient manner
(Driskell and Salas, 2013). The main purpose of this function is to assist Chocola Fantastica to
become more competitive, retaining employees, reducing staff turnover. This helps in enhancing
motivation and reinforcement of employees for better outcome. In order to increase productivity

of organisation, reward has to be provided to staffs and employees. In respective organisation, it
has faced staff turnover due to which there is rise in unemployment at business place. This
function can assist in providing fair reward to all working force. The good reward helps in
keeping staffs loyal, happy, towards organisation. This current problem has to be solved for
success and growth of business in proper manner. For future growth, reward has to be increase as
per performance of staff towards organisation.
Training and Development- This is the important functions of human resource
management which helps employees to enhance their skills and knowledge about subject matter.
This improve effectiveness of both individuals and business within team. Training is provided
for short time period and development is related with long term employee and organisational
goals and objectives. Here, main purpose of training is strengthening skill of each employees for
improvement and development helps in bringing employees at high level having similar
knowledge and skills. Chocola Fantastica is facing employee turnover so it is very important to
provide training and development session on regular basis so that better outcomes can be
achieved in appropriate manner. In this way, current problem is solved and for future aspect, it
should be provided on regular basis to attain business goal and objectives.
Performance Appraisals- It is defined as regular review of employee performance and
contribution made by them for organisation. This is also called performance review, evaluation,
annual review, employee appraisal against growth, achievement and skills of employees. It is
very essential for business to analyse each and every employees performance for achievement of
goals and objectives. Chocola Fantastica is going through phase of employee turnover so they
have to use appraisal tools to promote and recognise their working force for increasing their
motivation and satisfaction level. This helps them to retain their employees and staff for better
work performance for achievement of goal and objectives of business in proper manner.
Managing Disputes- It is also an important function of human resource management.
There are many organisation who have committee for managing disputes of employees in
effective manner. There are different types of issues which arise among employer and employees
which leads problem in achievement of desired goal and objectives of business in proper manner.
Chocola Fantastica has also faced issues of staff turnover which leads to decline in number of
employees. In this case, they can manage disputes by listening their problems and issues and
provide appropriate solution to arise problems. They have to hear grievances of employees first

and come up with appropriate solution. This assist in making future plan for business because if
employees problems are solved easily then they can work in organisation for longer period of
time.
b) Strengths and weaknesses of selection methods
Selection is defined as procedure in order to select or choose right candidate for given
profile or job role in organisation (Frankland and et. al., 2014). Chocola Fantastica has used own
assessment test, interview and check method for selecting right employees for organisation. The
strength and weaknesses of selection methods are as follows:
Strength and Weakness of Own Assessment Test
Strength Weakness
 This test carry maths and
English comprehension in
order to know about their
communication and calculation
skills required in business.
This helps in selecting right
candidate for given profile.
 These tests are more effective
than interviews because it
easily helps in determining
capability and potential of
person for doing assigned job
work.
 The main weaknesses of this method is that if
individual is better in aptitude test then it does
not mean they will be perform more effectively
and efficiently. Apart from test, there are other
attribute which helps in judging performance of
candidates.
 This test has cultural bias as our
accomplishment and abilities are based upon
experiences like home setting, opportunities,
education and upbringing. These all impact on
our own assessment test. For instance, test
requires proficiency in English language in case
if it is not mother tongue then that candidate
may be disqualified though they have other
abilities.
Strengths and Weaknesses of Interview/Informal Chat
Interview is defined as method which helps in checking skills and capability of individual
with help of face to face conversation between interviewer and interviewee (Giacalone and
Rosenfeld, 2013). The strength and weakness of interview are as follows:

Strength Weakness
 There are large number of candidate
out of which organisation select the
best one which helps in achieving
positive outcome.
 This helps in collecting data and
information about candidates in proper
manner in terms of their academic
qualifications, name, address, feeling,
attitude and so on.
 There are many candidate who possess
good knowledge of subject matter but
they lack communication skills. It is
non flexible in nature that has limited
time to judge particular candidates.
 There is no record of data and
information as interview is conducted
verbally which does not carry any
techniques and methods.
c) Two improvements to enhance its selection process
It is very important for Chocola Fantastica to improve their selection process for reducing
employee turnover and select the best candidate. There are two improvement given to respective
organisation for selection method are described below:
 It is very important to provide different options for conducting interview in order to
improve selection process. They can conduct aptitude test to know more about
individuals for effective outcomes. Chocola Fantastica has to conduct such test at their
own place in order to avoid misconduct while conduct test and achieve better results. In
case respective organisation adopt various options then they can select capable and
skilled candidate for their business for achievement of goals and objectives which is
positive impact of provided suggestion. The negative aspect of this suggestion is that cost
and time increase for conducting such test at own place. This may delay in selecting right
candidate for given profile.
 The other improvement which is required for Chocola Fantastica is to conduct formal
interview rather than informal. All the relevant questions should be asked to interviewee
to judge them properly and select best one. The positive aspect of provided suggestion is
that formal interview helps in selecting right candidate along with getting all information
and knowing about pronunciation, tone of candidates for work performance. Similarly, on

the other hand, negative aspect of formal interview is that time consuming, costly and
inflexibility in nature.
SECTION 2
a) Create person specification for role
The person specification for receptionist role is given below:
Person Specification
Position: Receptionist
Selection: HRM
Company: Chocola Fantastica
Attributes Essential Desirable
Knowledge  Working knowledge and
proper experience within a
reception environment.
 Proper knowledge regarding
cash handling.
 Basic IT knowledge.
 Basic knowledge of
daily procedures which
are essentially
performed.
 Health and Safety
 Knowledge regarding
electronic booking
Skills  Ability to effectively work
under pressure situation.
 Excellent communication
skills.
 Effective skills to maintain
good customer care.
 First aid qualification.
 Ability to effectively
identify problem while
communicating with
customers.
 Decision-making
attitude.
Attributes  Good Listener
 Goof level of self
motivation.
 Shall adopt flexible
approach to work.
 Desire to effectively
train and create a
development
prospective.

Specific  Multitasking capabilities
 Technological skilfulness
 Dependability
 Genius organiser
b) Advantages and disadvantages of the current methods of advertising jobs
Job advertisement is basically an electronic or print notification in order to hire someone
who can perform specific work within an organisation (Hawkins, 2017). However, with
reference to Chocola Fantastica, the respective organisation has adopted internal recruitment
method in order to significantly fill up the vacant position. Announcement of this particular job
is done through noticeboard which is put up at the main entrance. Under this method of
recruitment the vacant position within an organisation is filled by promoting or transferring the
existing employees. However, this method of recruitment adopted by respective organisation
have several advantages as well as disadvantage which are mentioned below:
Internal Method
Advantages Disadvantages
 Through adoption of this method by
Chocola Fantastica time as well as
efforts would be saved. They do not
need to perform the lengthy process of
selection.
 This method will critically help in
strengthening employee engagement.
 The method adopted by Chocola
Fantastica would create resentment
among employees and managers.
 Limit pool of applicant is available
because of internal recruitment method.
Noticeboard Method
Advantages Disadvantages
 This method is cost effective nature
which minimises training cost.
 This method is time saving and easy
selection of candidate is done within
organisation through help of
 Culture at Chocola Fantastica, shall
eventually witness inflexibility with
may result in lower overall productivity
of respective organisation (Xiaofeng
and Xiang, 2013).

noticeboard.  This method distract all employees
working in an organisation which leads
to lower profits and gains of business.
c) Recommend job advert for Receptionist vacancy to be placed and why
Job Advert Recommendation
There are variety of option which are potentially available in the market through which
the hiring process adopted by Chocola Fantastica shall be effectively improved. However, proper
market analysis shall be conducted in order effectively identify the best way to hire the
appropriate talent within respective business organisation. The company shall potentially make
use of social media platform in order to advertise the vacant position effectively. Through this
candidate from outside can be attracted in order to fill in the vacant position. The respective
method carry both positive and negative aspect to business. In terms of positive impact, it assist
in connecting people worldwide and keeping up to date about data and information. Similarly,
the negative aspect is that there is more chance of security issues in terms of stealing data and
information of organisation. Furthermore, professional networks such as LinkedIn shall be used
in order to feed out the need of receptionist to the outside world. It shall also make use of
external method after analysis the employees performance. The positive aspect of LinkedIn is
that recruiter can go through profile of many candidates and select best one which is required to
them for their business. Similarly, disadvantage of respective method is that any one can own
personal data and information of people and many candidate take time to respond to interviewer.
Through adoption of LinkedIn job advertise method, the respective organisation can
successfully hire the best talent which is available into the potential market and the productivity
as well as profitability shall show a positive shift. Therefore, proper strategies might be adopted
by Human Resource management through which overall performance of respective organisation
shall be enhanced. It is very important for respective organisation to see profile of each and
every LinkedIn users so that right candidate can be selected whenever required to them.

SECTION 3
a) Benefits of graduate training schemes and internships provided by Microsoft
Training means improving skills and knowledge of specified competencies (Hayes,
2018). It helps in increasing profits, productivity and performance. The graduate training
provided by Microsoft are:
Aspire Graduate training schemes
It is provided to top performing graduates in order to perform various roles.
Benefits to Microsoft- The benefits provided by Microsoft are as follows:
 Development of core competencies with employees for producing best products and
services.
 It helps in increasing high profits margin which leads them to enter into new market for
market expansion and rise in market share.
Benefits to employees of firm- The benefits for employees are described below:
 Rising of morale and career development for achievement of goal and objectives.
 The employees get attached to organisation for better work performance and improve
themselves for better outcomes.
Internship is defined as period of work experience provided by organisation for particular
time period (Lizano and Barak, 2012). It is provided to graduate students to enhance knowledge,
skills and experience for specified position. The internship programmes provided by Microsoft
are:
Commercial internship programmes
It is provided for 12 months where project is assigned to intern. This is provided when
they join organisation.
Benefits to organisation- The benefits to organisation are:
 High productivity
 Identification of future employees
Benefits to firm's staff- The benefits to employee of organisation are:
 Expansion of career path
 Improvement in current skills and knowledge.
Engineering Internship programme(About the Intern Program, 2019)

It is provided for 12 weeks to engineer students where relocation, benefits, and perks are
provided.
Benefits to organisation- The benefits to organisation are:
 Rise in productivity
 Organisation get skilled and capable employees for organisation
Benefits to firm's staff- The benefits to employee of organisation are:
 They get competitive salary
 Real project helps to improve their practical skills and knowledge
Therefore these training and internship assist employer and employee to work for
betterment of organisation. This also leads to rise in profits and gains of business in an effective
and efficient manner.
b) Evaluate benefits of flexible working arrangements for staff
Flexible working arrangement is defined as programmes that provide opportunity to
staffs to work as per their schedule against standard working hours (Mehta and et. al., 2015).
According to preference of worker, freedom is provided. This provide help to both staff and
organisation to achieve goal and objectives through job satisfaction to workers. The flexible
working arrangements for staff are as follows:
Flex Time- In this arrangement, employees are provided right for selecting working
hours as per their choices. They have to accomplish work but as per their wish the time selected
by them. The benefits for employees and company are:
Benefits for Employees Benefits for Company
 This helps in maintaining work life
balance.
 There is proper management of
personal and professional life.
 This assist in increasing involvement
and morale of workers.
 It helps in creation of effective
relationship among staffs and workers.
Work from Home- The respective organisation permit their employees and staff to
work from home in case of emergency. They have to perform their role from home without
coming to office. The benefits are:
Benefits for Employees Benefits for Company