Human Resource Management Report: HRM at Virgin Media and McDonald's

This report provides a comprehensive overview of Human Resource Management (HRM), beginning with a differentiation between traditional personnel management and modern HRM, emphasizing the strategic importance of HRM in organizations like Virgin Media. It explores the functions of HRM in contributing to organizational goals, the roles and responsibilities of line managers, and the impact of legal and regulatory frameworks. The report then delves into human resource planning, examining the reasons for its importance and the stages involved. A comparative analysis of recruitment and selection processes at Virgin Media and McDonald's is presented, followed by an evaluation of their effectiveness. The report also investigates the link between motivational theories and reward systems, the process of job evaluation, and the effectiveness of various reward strategies. Finally, it addresses the reasons for employment cessation and the associated exit procedures, including the legal and regulatory implications.

Human Resource
Management

Table of Contents
INTRODUCTION ....................................................................................................................................3
TASK 1.......................................................................................................................................................3
1.1 Differentiate between personnel management and HRM...............................................................3
1.2 Functions of HRM in contributing to organizational purposes.......................................................4
1.3 Role and responsibilities of line manager in HRM.........................................................................5
1.4 Impact of legal and regulatory framework in HRM .......................................................................5
TASK 2.......................................................................................................................................................6
2.1 Reasons for human resource planning.............................................................................................6
2.2 Stages involved in planning human resource requirements............................................................6
2.3 Comparison between recruitment and selection process in Virgin Media and McDonald.............7
2.4 Effectiveness of recruitment and selection process in Virgin Media and McDonald ....................8
TASK 3.......................................................................................................................................................8
3.1 Link between motivational theory and reward................................................................................8
3.2 Process of job evaluation and other factors determining pay..........................................................9
3.3 Effectiveness of reward systems.....................................................................................................9
3.4 Methods used by organizations to monitor their employees.........................................................10
TASK 4.....................................................................................................................................................10
4.1 Reasons for cessation of employment...........................................................................................10
4.2 Employment exit procedures.........................................................................................................11
4.3 Impact of legal and regulatory framework on employment cessation..........................................12
CONCLUSION........................................................................................................................................12
REFERENCES.........................................................................................................................................13

INTRODUCTION
Human Resource Management (HRM) was previously known as Personnel management and it
was completely limited to a single department. It was developed in the bureaucratic setup in which the
main focus was given to administration of employees so as to achieve organizational goals. But many
companies theses days have realized the importance of human resource management in their
organization. It ensures that right people are at the right position (Mathis, Jackson and Meglich, 2016).
They should possess all the necessary skills and knowledge in the workplace. The present report is
based on Virgin Media which provides television, mobile and broadband internet services. It is a British
company which has more than 14000 employees (Virgin Media Company, 2016). They have taken into
consideration the the impacts of legal and regulatory framework in HRM. Apart from this, they have
changed their reward systems according to the needs and preferences of the employees. Moreover, exit
procedures have been included in the organization to improve their employee turnover ratio.
TASK 1
1.1 Differentiate between personnel management and HRM
Personnel management is a traditional approach which has been replaced bu HRM in the past
few years. It was developed to help in the management of employer employee relationship in the
organization (Berman, Bowman and Van Wart, 2015). On the other hand, HRM is a modern approach
which focuses on the development and implementation of human resource strategies, maintaining good
culture, values, structure and the quality of the workforce. It has helped Virgin Media Company to
improve the motivation and satisfaction level of the employees. It uses qualitative methods for
managing the employees. The difference between personnel management and HRM are as follows:
Personnel management Human Resource Management (HRM)
It is an aspect of the management and the main
focus of the manager is to utilize the workforce to
accomplish the goals of the organization (Wilton,
2016).
It is considered as a branch of management and
they assume employees as valuable and important
assets of the organization.
Decisions are taken by the top level managers and
they make sure that all the rules and regulations of
the company are followed by the employees.
HRM allows collective decision making which
includes employee participation, decentralization,
delegation of tasks, competitive environment etc.
It is a traditional approach of management. Personnel management has been replaced by
HRM which is a modern approach (Brewster,

Mayrhofer and Morley, 2016).
Indirect communication Direct communication
Fast and integrated decision making (Stone,
Lukaszewski and Johnson, 2015).
Slow decision making
It is reactive in nature. HRM is proactive in nature.
Job evaluation forms the basis of compensation
and payment.
Performance of employees plays an important role
in the pay structure.
1.2 Functions of HRM in contributing to organizational purposes
HRM has helped Virgin Media Company to improve their employee turnover ratio. It has
allowed them to use their capabilities and fulfill the objective of the organization. It is beneficial for the
long run as it allows the employees tom acquire skills and knowledge. They can achieve their personal
foals along with the mission and vision of the company (Jabbour and de Sousa Jabbour, 2016). Virgin
Media Company has been growing and it is essential for the management to make changes in the
business according to the needs. Highly committed and motivated workforce does not resist to the
changes in the business which makes it easier for the company to grow. HRM has been beneficial for
many organizational purposes such as:
Recruitment and training: It is the responsibility of the HR department to formulate plans and
strategies for the recruitment and selecting the employees (Shields, Dolle-Samuel and Plimmer, 2015).
They have to make sure that only those people are selected who are best suited for the specific position
in the organization. There are lot of career opportunities in Virgin Media Company.
Customer satisfaction: HRM ensures that employees are highly motivated and satisfied in the
organization (Stone and Deadrick, 2015). They change their policies according to the needs and
expectations of the workforce. They in turn provide good customer services which benefits the
business.
Managing disputes: HRM acts as a counselor and consultant to manage disputes in the
organization (Lussier and Hendon, 2015). They makes sure that disputed does not hamper the
productivity as well as relations between the employees.
Motivation of employees: Employees are allowed to take part in the decision making process
of the organization. They are given all the facilities so that they can perform their work easily. It has
allowed Virgin Media Company to reduce absenteeism and employee turnover ratio (Gatewood, Feild

and Barrick, 2015).
Performance appraisals: HRM department provides suggestion to the employees so that they
can improve their work. Performance appraisals are done at regular intervals in Virgin Media Company.
1.3 Role and responsibilities of line manager in HRM
Line managers are responsible for the implementation of policies and strategies in the
organization. They make sure that the workforce follows the rules and regulations of the company
(Abdullah and Zulkifli, 2015). Virgin Media Company makes sure that their line managers are honest,
knowledgeable and sincere in their work. They should establish good communication with the
employees. It reduces confusion and misunderstanding. They ensure that the employees perform
according to the standards of the company. Line managers in Virgin Media Company have played an
important role in motivating the employees. It has reduced their employee turnover and overall
productivity of the business has also improved. Furthermore, it has built a positive culture in the
workplace which provides equal opportunities to all the members (Beadles, Aston and Johns, 2015).
Line manager in Virgin Media Company has following roles and responsibilities:
 Providing suggestions to HRM department to improve the performance of the employees
 Assessment of performance of the workers
 Providing training and guidance
 Employees involvement and engagement
 Monitoring the behavior and work of the workforce.
 Providing support, supervision and encouragement to the employees.
 Setting realistic goals
 Managing of disputes
 Maintaining discipline and positive culture in the organization
1.4 Impact of legal and regulatory framework in HRM
It is essential for Virgin Media Company to understand the impacts of legal and regulatory
framework in HRM. These regulations can affect the strategies, plans and procedures adopted by the
company (Butchart, Dieme-Amting and Taylor, 2016). The effects of legislation have been positive on
the company as it has allowed them to perform their task in an effective manner. Virgin Media
Company takes into consideration labour relation, unionism, disputes, compensation plan and working
environment of the company. Major legal and regulatory frameworks in HRM are as follows:
Disability discrimination Act 1995 and 2005: There should not be any discrimination due to
disability of a person. It is essential for Virgin Media Company to allow participation of disabled
people in their organization.

Equal employment opportunities Act: Virgin Media Company has changed their polices so
that no employee is discriminated on the basis of caste, creed, color or religion (Reade, 2015). They
have positive organizational culture which promotes diversity.
Health and Safety: It is the duty of the employer to to fulfill the health and safety regulations
of the government. Virgin Media Company has to alter their HRM polices and plans to comply with the
regulations of HASWA 1974 (Salas, Shuffler and Lazzara, 2015).
Data protection Act,1998: UK government has given guidelines to all the business
organizations to ensure the safety of employee's data (Glendon, Clarke and McKenna, 2016). It is the
responsibility of Virgin Media Company to communicate all the information about data protection to
their employees. Furthermore, the government keeps a control on how the data is handled by the
company.
TASK 2
2.1 Reasons for human resource planning
Human Resource (HR) Planning is a method which is used by an organization to analyze the
current and future needs of the manpower. Virgin Media Company has made sure that there is strong
link between the HRM and the strategic plan of the company (Buckley, Wheeler and Halbesleben,
2015). It can be beneficial for them in the long run. Hr planning considers various tasks such as
recruitment, training, selection, career development and retirement. It can increase the productivity and
efficiency of the workforce. Virgin Media Company has to ensure that they provide excellent customer
services to their consumers. It is important for them to train and motivate their employees so that they
can meet the required standards and benchmarks of the company. Apart from this, it has reduced the
liability of the company due to unfair employment practices (Storey, 2016). HR professional make sure
that all the regulations and legislation have been followed in the organization. The recruitment and
selection process can be designed according to the needs of the business. It allows them to match the
demand supply of manpower throughout the year. Furthermore, HR planning plays a vital role in
increasing the motivation and morale of the employees (Morschett, Schramm-Klein and Zentes, 2015).
It can enhance the employer employee relationship in the organization. Virgin Media Company makes
sure that they monitor the growth and performance of each employee. They are given rewards, training
and guidance so that they can further improve their performance. It is for this reason only that the staff
members of Virgin Media Company are highly motivated and committed toward their work.
2.2 Stages involved in planning human resource requirements
Planning human resource requirement allow Virgin Media Company to anticipate the demand if

manpower for the future. They can align their goals and objectives with it so that it can be
accomplished in the desired time frame (Jabbour and de Sousa Jabbour, 2016). These stages are used in
all the organizations whether medium or large scale. Apart from this, the company has to maintain their
current human resources as well. The stages involves in the process are as follows:
Setting organizational goals and objectives: Initially Virgin Media Company has to collect
information and decide the goals and objectives of the business (Glendon, Clarke and McKenna, 2016).
After that, they have to analyze the current manpower in the organization which includes data relating
to the number of employees, age, location, skills and abilities.
Auditing: The next step of the HRM department is to align the plans of HRM with the
strategies of Virgin Media Company. They have to evaluate the employee turnover rates, cost of
training, type of skills and technical knowledge required (Brewster, Mayrhofer and Morley, 2016).
Estimating the demand and supply: Management has to make sure that they have right
number of professionals to handle the operations in the future. They have decided the number, kind and
the quality of the workers required (Stone and Deadrick, 2015).
Formulating HR plan: Virgin Media Company can use internal as well as external sources to
meet with the demands of the human resource. Internal sources include promotion, transfers,
retirements etc. On the other hand, external sources consists of advertising, private employment
agencies, unsolicited candidates etc.
Monitoring and control: Monitoring and control is an on going process where the company
analyses the performance of each employees according to the standards of the organization (Mathis,
Jackson and Meglich, 2016).
2.3 Comparison between recruitment and selection process in Virgin Media and McDonald
Recruitment and selection process in Virgin Media Company is divided into five stages. It
includes screening of online applications, phone screening, shortlisting the candidates, online
personality questionnaire and interview. It allows the company to test the skills and knowledge of the
candidates. They use different ways to invite candidates to apply for the post. It gives the management
lot of options to choose from (Stone, Lukaszewski and Johnson, 2015). It ensures that only highly
skillful and competent professionals are selected in the company. On the other hand, each branch in
McDonald is responsible for the recruitment and selection of the employees. The manager will select
the candidates for the interview and they have to pass psychometric test. After the test, the selected
candidates have to attend stage interview and OJE. A candidate has to undergo two days assessment
before he/ she is recruited in the organization (Riccucci, 2015). Both Virgin Media Company and
McDonald have different recruitment and selection methods. It allows them to make sure that the

employees are highly skillful and has the ability to learn new skills. Virgin Media allows large number
of people to apply for the post and appear in the preliminary screening process. On the other hand,
McDonald uses a more direct approach. Both the companies have been successful in their recruitment
and selection process.
2.4 Effectiveness of recruitment and selection process in Virgin Media and McDonald
Recruitment and selection process can play an important role in the growth and development of
the organization. McDonald Company recruits people with the help of their top level managers.
Selection process ensures that only best suited people are selected for the desired post. This increases
the chances for the company to employee highly skillful people who can easily adapt to the
organizational culture (Glendon, Clarke and McKenna, 2016). Virgin Media Company has different
polices as they use a predefined procedure. It will be beneficial for them to change their selection
process similar to McDonald. It will allow them to test the technical skills of the applicants. The
managers of McDonald analyze the personality of a candidate in the workplace before giving them
offer letter. But they do not use web based applications which allows large number of people to apply
for the post. Both the companies have been doing exceptionally well in their business. But still they
have to change their recruitment and selection methods as per the needs and requirements of the
business environment (Jabbour and de Sousa Jabbour, 2016). Virgin Media Company should alter their
procedures so that they practically test the skills of the candidates before recruiting them. Apart from
this, the entire process of the company is very effective which has allowed them to retain their
employees. It has helped them to find the applicants which possess qualifications and skills for the
desired position. Furthermore, it will helpful for McDonald if they do not restrict the application to a
specific locality.
TASK 3
3.1 Link between motivational theory and reward
Reward system and motivational theories are closely related to each other. Motivation is a
driving force which allows an individual to perform his task in an effective manner. Virgin Media
Company has highly motivated and satisfied employees in their workforce because they have
understood the needs and expectations of the employees (Glendon, Clarke and McKenna, 2016). They
have adopted Herzberg's two factor theory which indicates those factors which helps in motivating and
increasing the job satisfaction of the employees. Apprentices in the company are trained at Birmingham
where the management used role play method to teach. They are given a safe working environment to
learn. Furthermore, they have provided all the hygienic factors of the theory such as safe working

condition, culture, compensation etc. They also have motivating factors which provides good career
opportunities to the employees. The combination of these two factors has helped the company to
improve their business as well the efficiency of the employees. They have become more loyal,
committed and dedicated towards their work. Apart from this, Virgin Media Company also uses
Maslow's need hierarchy theory to identify the motivational level of each employee. Their engagement
program involves more than 80% of the staff members (Mathis, Jackson and Meglich, 2016). HRM
department of the company uses different motivational methods for each level in the Maslow's need
hierarchy theory. It includes physical level, safety needs, social needs, esteem needs and self-
actualization needs. There is a strong linkage between the reward and motivational theories in Virgin
Media Company.
3.2 Process of job evaluation and other factors determining pay
There is close relation between compensation plan and performance in Virgin Media Company.
They have made sure that those employees who have been performing well in their jobs are
compensated for their excellent performance. The company uses performance indicators and
benchmarks at the time of appraisals (Brewster, Mayrhofer and Morley, 2016). Management also
recognizes the importance of knowledge pool in the organization and they want people who can
contribute to it. Job evaluation is a common method which is used by many organizations to change
their compensation plan. Apart from this, HRM also takes into consideration the services provided to
the customers by an employee. (Gatewood, Feild and Barrick, 2015) Their entire business is dependent
on customers and those employees who have been providing excellent services are rewarded in the
organization. They also want their employees to comply with the policies, rules and regulations of the
company. They should maintain good discipline in the workplace. All these factors are taken into
account when deciding the pay structure of an employee. All the levels of the management are
considered in the appraisal. Those employees who have been performing below the required standards
are given training and guidance by the supervisors (Abdullah and Zulkifli, 2015). It has been very
effective for them company because it has boosted the morale of the workers and their efficiency has
increased. They are satisfied as their excellent performance has been rewarded by the company at
regular intervals.
3.3 Effectiveness of reward systems
Reward system in Virgin Media Company has been very effective for them as it has increased
the productivity and efficiency of the workers. They have become more dedicated towards their work
and it can been seen on the customer services of the company as well. Employees are involved in the
decision making of the company and they are allowed to put forth their views. It has reduced the

employee turnover and absenteeism in the workplace (Salas, Shuffler and Lazzara, 2015). Apart from
this, it has allowed the company to make changes in the business easily which was opposed by the
workers. Good rewarding system has motivated the employees and they accept the changes easily.
Management also rewards their employees by making them employee of the month for their excellent
performance (Morschett, Schramm-Klein and Zentes, 2015). Effective rewarding system plays crucial
role in the growth and expansion of an organization. It reduced the cost of the company because they
are not required to recruit and train new employees. Virgin Media Company has made use of both
intrinsic and extrinsic reward system. Intrinsic reward system includes personal achievement, growth,
accomplishment, recognition etc (Jabbour and de Sousa Jabbour, 2016). On the other hand, extrinsic
reward system consists of raise in pay, verbal praise, paid time off, additional responsibilities etc. HRM
of the company makes changes in their policies and plans according to the needs and expectations of
the workers. They change their rewarding system at regular intervals to keep in track with the industry
standard.
3.4 Methods used by organizations to monitor their employees
Virgin Media Company monitors the performance of their employees so that they can improve
their skills and knowledge. It also allows the company to identify those people who have been
performing below the required level of standards. They are given and guidance by the manager so that
they can change their style of working. Some of the method uses by the company are as follows:
Observation: Line managers and supervisors observe the working of the staff members and
provide them with feedback so that they can make changes in their performance. It also allows the
employees to understand the areas in which they are lacking (Butchart, Dieme-Amting and Taylor,
2016).
360 degree feedback: Customer service plays a vital role in Virgin Media Company.
Management uses feedback of the customers to monitor the performance of the employees.
Furthermore, reviews are also taken from the seniors as well as the supervisors of the company
(Gatewood, Feild and Barrick, 2015).
Use of software and technology: Virgin Media Company uses new software and technology to
evaluate the performance of the workers. It has reduced their cost as the training can be provided to the
employees by using the software (Jabbour and de Sousa Jabbour, 2016). They have keystroke loggers
to monitor the usage of computers by the employees.

TASK 4
4.1 Reasons for cessation of employment
Cessation of employment refers to the termination of employment contract between employer
and the employee (Wilton, 2016). There can be many reasons for the cessation such as dismissal,
resignation, retirement, death or any unethical behavior of the employee. Faisal was dismissed due to
his poor performance and violation of the policies of the company. He was also given warning by the
owner of Chicken Master but his performance did not improve. The main reasons of cessation have
been described below:
Poor performance: All the company have prescribed standard of performance. If the employee
is unable to meet the standards then it becomes difficult for the company to continue with the
employment contract. Faisal was not performing up to the level of the company and he was dismissed
for this reason only.
Violation of policies of the company: It is the basic condition for all the employees to comply
with the rules and regulations of the company (Morschett, Schramm-Klein and Zentes, 2015). Chicken
Master also had policies which were violated by Faisal. It resulted in the cessation of employment.
Unethical behavior: Unethical behavior involves aggression, physical attack, harassment,
using abusive language or not complying with the regulations of the company. Faisal was watching
explicit contents even strafe getting warning from Bob Jones which resulted in his dismissal.
Resignation: An employee can himself resign from the post (Storey, 2016). There can be
various reasons for it such as dissatisfaction, better opportunities, medical conditions, transfers etc.
Retirement: After attaining a certain age an employee has to retire from his post which leads to
cessation of employment.
4.2 Employment exit procedures
Employment exit procedures are a process which is adopted by a company during the cessation
of employment. It is essential for Chicken Master to follow the rules and regulations of the government
during the end on employment contract. It varies from companies to companies. But the management
has to ensure that they have not compromised with the interest of the employee. It is very fair and
specific in Chicken Master (Butchart, Dieme-Amting and Taylor, 2016). Initially they inform the
worker about his termination in writing. Furthermore, they allow the employee to put forth his view
against the step taken by the company. He can put his views either formally or informally as both the
methods are accepted by the management of Chicken Master. After this the company clear all the dues

of the worker and asks him to deposit all the belongings of the company including cell phones, laptops,
IDs, credit cards keys etc. The desk of the terminated employee is cleared and all his passwords and
login ID are deactivated. The company also allows the employee a notice period tome to fulfill his
responsibilities with the company (Gatewood, Feild and Barrick, 2015). It is essential for Chicken
Master to protect the rights of the employee and communicate everything to him in writing.
4.3 Impact of legal and regulatory framework on employment cessation
Legal and regulatory frameworks affect the cessation of employment in a big way. As such it is
essential for a company to take into consideration this legislation before terminating any employees.
Chicken Master cannot terminate the employment due to discrimination. No company can discriminate
their employees on the basis of caste, creed, color, religion or gender (Stone and Deadrick, 2015).
Faisal claimed that the company dismissed his due to his age. If this allegation was true then the
company is liable to pay compensation to Faisal. Furthermore, it is the responsibility of the company to
give the notice of cessation in written form along with the reason behind the same. They should also
follow the labor laws and make sure that labor rights of the employees are protected (Wilton, 2016).
Chicken Master has to change their exit procedures and plans so as to comply with the rules and
regulations of the government. Noncompliance can lead to huge penalties and law suits which can
affect the image of the company in the industry (HRM, 2016).
CONCLUSION
It can be concluded from the report that human resource management is an integral part of an
organization. It is an integrated function which helps in the fulfillment of the organizational goals.
Traditionally all the companies were using Personnel management. But it has been replaced with HRM
which taken into consideration all the aspects of the employees. It consist of motivation, compensation,
cessation, relationship etc. It has improved the efficiency and productivity of the workforce as they
have become more committed to the work.