Human Resource Management Report: HRM Practices at Posh Nosh Limited

This report provides a comprehensive analysis of Human Resource Management (HRM) practices, using Posh Nosh Limited as a case study. It begins by distinguishing between personnel management and HRM, highlighting the evolution of HRM as a more modern approach. The report then explores the functions of HRM in contributing to organizational goals, including training and development, employee acquisition, project management, change management, and remuneration. It evaluates the roles and responsibilities of line managers in HRM, focusing on performance appraisal, employee discipline, and engagement. The impact of legal and regulatory frameworks on HRM is also examined, covering key legislation like the Equal Pay Act and the Employment Rights Act. The report further delves into human resource planning, discussing the reasons for its importance and the stages involved, including analysis of organizational objectives, inventory of existing resources, forecasting, and gap analysis. A comparison of recruitment and selection processes in two organizations is provided, along with an evaluation of the effectiveness of various recruitment and selection techniques. Motivational theories and their link to reward systems are explored, along with factors influencing job evaluation and pay determination. The effectiveness of reward systems and methods for monitoring employee performance are also analyzed. Finally, the report addresses reasons for employment cessation and examines termination procedures and the impact of the legal framework on employment termination. The report concludes with a summary of the key findings and recommendations for Posh Nosh Limited.

HUMAN RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION ...........................................................................................................................1
TASK 1 ............................................................................................................................................1
1.1 Distinguish between personnel management and human resource management..................1
1.2 The function of the human resource management in contributing to organisational
purposes.......................................................................................................................................2
1.3 Evaluate the role and responsibilities of line managers in human resource management.....3
1.4 Impact of legal and regulatory impact on hum,an resource management.............................4
TASK 2.............................................................................................................................................4
2.1 Reasons foe human resource planning..................................................................................4
2.2 Stages involved in human resource planning........................................................................5
2.3 Comparing between recruitment and selection process in two organisation.........................6
2.4 Evaluation of effectiveness of recruitment and selection techniques....................................7
TASK 3.............................................................................................................................................8
3.1 Link between motivational theory and reward......................................................................8
3.2 Factors of job evaluation and factors determining pay..........................................................8
3.3 Effectiveness of reward system.............................................................................................9
3.4 Methods for monitoring employees performance................................................................10
TASK 4...........................................................................................................................................10
4.1 Reason for cessation of employment...................................................................................10
4.2 Employment Termination Procedure used by the Organisation:.........................................11
4.3 Impact of legal framework on employment cessation:........................................................11
CONCLUSION..............................................................................................................................12
REFERENCES ..............................................................................................................................13

INTRODUCTION
Human resource management refer to the managing the overall human activities in the
business. HRM helps to improves the employees performance. HRM is very important concept in
the field of management because employees are the important part of the company which needs
to be taken into consideration (Agrawal, Khatri and Srinivasan, 2012). HR is refer to managing
the people of the organisation and make policies for functioning them. There is different
department to look after the HR activities such as recruiting the people, giving rewards, training
and development, performance appraisal etc.
The company which is taken into the consideration in this report is Posh Nosh Limited. It
is one the SME's. The company already has the 10 outlets in the London. The company is
providing the fast food. Services offered by the company are eat-in. Take away and catering
services.
This report consist of difference between personnel and human resources management.
The functions of the human resources management. Roles and responsibilities also discuss in this
report. Why HRM planning is necessary for the organisation. What are stages which involves in
human resources planning. Various motivational theories are studied in this report. Methods
which are used in evaluating the performance of the employees. The report also consist impact of
the legal framework on employment.
TASK 1
1.1 Distinguish between personnel management and human resource management
Human resources management is new version of the personnel management. There are
slightly different from each other. Following are the difference between personnel and human
resources management.
 Personnel management is the traditional and old approach of managing and controlling
people in the organisation. Whether human resource management is the moddern
approach to handle the people in the enterprise.
 Personnel management focus on the personnel activities such as labour relation and
welfare of employees. While HRM focus on the development, motivating and
maintaining the HR resources of the company (Albrech, 2011).

 PM concept study that people of the organisation help to convert the input to output.
Whether HRM implies that human are important resources for the enterprise by which
company can achieve its goals and objectives.
 Function taken into the PM is for the employees satisfaction whether the function taken
for the HRM is for the goals achievement.
 Under the personnel management the job design is done through the division of the
labour. While under the human resource management the job design is done through the
team work (Armstrong and Taylor, 2014).
 In traditional approach the employees provide less training and development but in
modern approach the employees are given more training and development and this can
give the employees more opportunities.
 In traditional approaches decision are made by the top level of management. All rules and
regulations are implied by the top management. But in modern approach the decision are
taken by HR department and top management collectively. In modern approach company
considered the employees participation, authorities, competitive advantage to take the
decision.
 Personnel management focus on the customer satisfaction. Human resources management
focus on the employees efficiency, culture, productivity etc.
1.2 The function of the human resource management in contributing to organisational purposes
Human resources management is part of the management which take care of the
maximization of the employees productivity. If the organisation wants to achieve the objectives
and target they need to concern the human resources management. Small medium enterprise
developing its human resources very carefully and properly because it can have the large impact
on the enterprise. Human resources can decide the enterprise success and failure. The
department is responsible for enhancing the skills, knowledge,abilities of the employees. This
process incurred lot of time and money and it also give the success and growth to the
organisation. Following are the main functions of the performed by the manger to achieve the
targets (Armstrong, 2011). Training and development: Manager should give the proper training and development to
there employees so that their efficiency should increase and employees can work in more
effective manner.

 Employees acquisitions: Recruitments of the organisation can be done in proper manner.
The right person should appoint for the right position. So that the employees can perform
well according to their skills, knowledge and ability. Project management: The company should follow the steps and procedure in a manner
so that they can mange the project activities and expenses incurred in the project (Barney,
Ketchen Jr and Wright, 2011). Change management: Manager is responsible to bring the changes in the area where its
required and adopt the new techniques to replace the old one.
 Remuneration: Manager has the responsibility to to give the salary to its employees on
time and also gives the rewards to motivate their employees to work effectively and
efficiently.
1.3 Evaluate the role and responsibilities of line managers in human resource management
Line managers are those who mange the team, employees, different departments etc. the
line manager is responsible for the prepare the report on the employees performance and present
the report to the top management. These managers has the managerial and supervisor
responsibility. Following are the functions of the line managers.
 Managing people in day to day process.
 Assign the work and rotation of work.
 Monitor the employees performance.
 Check the quality of work.
 Providing technical expertise.
The task which line manager perform comes under the human resource management. The
task which line manager perform are as follow. Performance appraisal: In this line managers evaluate the each employee performance
working in the company. The appraisals has been done to give the reward, incentives to
the employees giving good performance in their task (Batt and Colvin, 2011). Discipling employees: Line managers are responsible for the maintaining the discipline
among the employees. So that employees gives their constant performance. If the
discipline is not maintained properly the employees can not able to achieve the targets.
 Employees engagement: The main responsibility of the line manager is to assign the task
to the employees And evaluate the performance of the employees. Manager has to ensure

that the employees are satisfy which the company atmosphere so that they can do the task
with more sincerity (Boselie, 2010).
1.4 Impact of legal and regulatory impact on hum,an resource management
Human resource management is very important department for Posh Nosh Ltd. Company
because it directs the company on the right path way that will help the company in achieving the
desired result or outcome. There are many laws and regulations that are made by government for
protecting the rights of employer or employees. Human Resource department should keep in
mind these rules and regulations before implementing any strategy. If company don't follow it
then company is penalized according the government rules. For this only HR will be liable if
company don't follow it. There are certain laws related to employment which are as follows -
 Equal Pay Act 1970 – According to this act ,employer have responsibility to pay equally
to the employees if they are working same. He should not discriminate the employees on
the basis of race, colour ,cast ,religion etc. If company does discrimination then it will be
liable for it.
 National Minimum Wage Act 1998 – Government has fixed the amount for salary and
wages that should be given by every employer. Salary is given by employer on the basis
of hour ,productivity of employees. For those people whose age is between 18 -21 then
salary will be given to them 3.50 to 3.80 per hour (Boxall and Purcell, 2011).
 Employment right act 1996 – This act protects the rights of employer as well as
employees. While doing recruitment ,interviewer should provide equal opportunities to all
candidates. There should be no discrimination.
TASK 2
2.1 Reasons foe human resource planning
Human resource planning is very important because it helps in knowing the required no.
of people at right place and at right time. In this human resource department does planning about
man power need to the company and decides the sources of recruitment. It is helpful in at the
time of emergency. In other terms it can said that human resource planning is a process by which
company can know about the human resources need and when and how it will need the human
resources. There are many reasons for doing human resource planning which are as follows-

 Future need – It is very helpful in knowing the need of man power for future. By this
company can plan about human resource needs in advance that saves the time of Posh
Nosh Company (Carter and Liane Easton, 2011).
 Eliminating risk of over staffing or under staffing – It helps in reducing the risk of
over staffing and understaffing because in this company plans the current need of man
power as well for future. Here is no option of this risk.
 Recruitment of qualified employees – This planning is helpful in recruiting the best
qualified person who is fit for the job and can add value in the organisation.
 Development of employees – It is also related to development of an employee who are
working in an organisation. This development helps the organisation for promoting the
change and will enhance their skills.
2.2 Stages involved in human resource planning
Human resource planning is helpful in reducing the uncertainty in future and enhance the
manpower. For start the process of human resource planning, firstly HR manger should set the
organisation objective which can be achieved through this process. Human resource planning
process are as follows -
 Analysis of organisational objectives- Firstly HR manger should analyse the
organisational objective which need to be achieved by the process. All department in an
organisation like production, sales etc. should align the objectives with organisational
objectives.
 Inventory of existing human resources – Posh Nosh should keep the human resources
as an inventory that will help in emergency situation (Chang, Gong and Shum, 2011).
 Forecasting demand and supply of man power – HR manager should forecast the
demand and supply of manpower for the entire organisation.
 Estimating personnel gap – HR planning is helpful in filling the gap of man power that
are exist in an organisation. HR evaluates the whole process on the basis of no. of
vacancies.
 Formulation – After forecasting the demand and supply of man power ,Posh Nosh Ltd
takes action that depends on the situation of the company. If company is in deficit then
recruitment and selection ,training process is terminated (Flamholtz, 2012).

 Monitors ,controls and feedback – In this company implements the plan. In this man
power is allotted according to the company 's need. A HR has to evaluate that plan is
implementing according to the standards or not. If not then it takes corrective action.
2.3 Comparing between recruitment and selection process in two organisation
Recruitment means to invite the applications from various sources and from those
application ,company hire the best qualified candidate according to the job requirement.
Company should select the best system that will help in achieving the competitive advantages
over the competitors. For this HR management is very helpful that provides efficiency and
effectiveness to the company. Recruitment and selection process of Posh Nosh Ltd. And
McDonald are as follows -
Basis Posh Nosh Ltd. McDonald
 Job analysis
 Application
 Activities
 Liability
 Panel
 It is easy to do job
analysis.
 Receiving application
from various sources
are very easy.
 It is based on
advertising system
(Gatewood, Feild and
Barrick, 2015).
 In this job officer is
liable for total
recruitment process.
 Filters the application.
 It follows complex
process.
 It is just opposite to
Posh Nosh Ltd.'s
process.
 It is based on planning
which helps in
advertising.
 In this job officer is not
only liable for this
process.
 Viva board exist for
filtering the
application.
Here Posh Nosh Ltd. Is able to develop a better plan to compete with much bigger
competitors like McDonald. Today they have a plan that helps the company in achieving the
desired result. If company will not adopt it then it can not utilize the resources effectively and

efficiently. Currently Posh Nosh Ltd is adopting the best techniques that is helping in achieving
the positive result (Salvendy, 2012).
2.4 Evaluation of effectiveness of recruitment and selection techniques
If Posh Nosh Ltd. Want to get success then it should adopt the best techniques for
recruitment and section and should enhance their skills and capability. Company should use
proper channel for supply of human resources at the time of need and also should provide the
training and development programme for enhancing the skills of man power. There are no. of
factors to analyse the effectiveness of the process-
 Developing job advertising database – For controlling the cost of advertising,
company should keep the advertising database. From this company will be able to attract
the most qualified employees (Scullion and Collings, 2011).
 Use of template letters – If company want to save time then it should made template
letter which consist of ready made letter and just have to be filled with name and orders.
This letter is very helpful at the time of recruitment process.
 Relationship building – HR process is helpful in building the relationship with in
organisation and maintains good relationship with members.
 Quality of hire measurement – While conducting recruitment and selection
process ,there should be maintained good quality of process that helps in maintaining
the best qualified personnel.
 Candidates interview -It is a step where company selects or rejects the candidates on
their performance at the time of interview. HR manager have to make sure that the
company is able to get from the candidates who passes the interview.
Posh Nosh Ltd should do evaluation of recruitment process time to time (Stredwick, 2013).
TASK 3
3.1 Link between motivational theory and reward
A HR manger have responsibility to create link between better performance and reward
system. Motivation of employees is very important for company because if employees will be
motivated the they will perform efficiently and effectively and then they will get good reward.
There is a direct relationship between motivational theory or reward. If employee will perform at
the higher rate then they will get high amount of reward (Tyson, 2014).

If employee is place at the right Job then they will get motivated on its own motion.
Better motivation helps in achieving the high result. Motivation can be of two types one is
extrinsic and intrinsic motivation.
Employees will be motivated if employer will provide the good rewar5d to them if they
are producing positive result for the company. For example – employees will be motivated if
employer will give them incentives ,bonus ,gifts etc.
Motivation is of two types one is positive and second is negative. If mangers uses positive
motivation, it should give monetary benefit or reward to the employees. It is the best way to
getting the best qualified employees. They require incentives in terms of money. Negative
motivation will be used when employees are not performing well then employer have right to
give punishment to them.
Manager has responsibility to link the reward with motivational theory in that way that
will help in enhancing the performance. As soon as the employees start achieving the result in
effective manner then it is the responsibility of manager to compensate them properly.
3.2 Factors of job evaluation and factors determining pay
HR manager have to do job analysis before conducting job evaluation programme and
Posh Nosh Ltd. Should ensure that HR manger should analyse the job properly. Analysing the
job profile, complete job description for each position can be determined.
Job evaluation process look at the different aspects of the job held by the employees. It is
very important to know the skills, knowledge and abilities of the employees as per the
requirement of job. Manager have responsibility to identify certain leadership quality, customer
handling, employees total capabilities etc. Job evaluation is very helpful in assessing the working
environment ,complexity of work and KSA of the employees (Tang and Tang, 2012). These days
organisation uses computer aid which measures 28 exempt and 17 non work dimensions. By the
use of this software the relative worth can be determined.
There are many factors which helps the organisation to determine the pay structure of
employees which are as follows -
 Organisation ability to pay how much amount can be given by the company.
 Educational qualification
 Awards

 Competitors while giving the salary or wages, Posh Nosh should evaluate the competitors
strategy then accordingly set the strategy for pay.
 Position of the employees – Company gives the salary according to their position or job
responsibilities.
 Government regulation – There are many factors that affects the pay structure of the
company. Every company have the responsibility to follow these regulation
(Kraaijenbrink, Spender and Groen, 2010).
3.3 Effectiveness of reward system
Reward system is a system according to which organisation gives rewards to its
employees for performing certain task in a above expectation level. The reward system is
developed as to motivate the employee to work harder and in efficient manner to get more
monetary and non monetary incentives as rewards. Posh Nosh is being taken as the company
whose reward system will be analysed. Posh nosh gives different rewards to its different
employees according to their job profile, task completed and goals achieved. For each quarter all
the employee can get incentives if they achieve all the standards as set by the management. These
incentives help the company in improving the quality of services their employees give to
customer. Every month one employee is selected as the employee of the month. This gives him a
different level of satisfaction.
Managers have to take care of these type of employees who can create a negative
environment by giving them better incentives which match their desires and companies cost. It is
very important as they will have to keep their cost low while giving out more rewards to keep the
employees satisfied (Jiang and et. al., 2012). The employee of the month get extra benefits like a
gift voucher from the company which allows them to get free meals in next 3 months . His name
is also put up on the companies notice board which makes his image and personality much better.
There are some employees who are still not happy with the reward system as they feel it is biased
and do not gives out enough incentives for their performance.
3.4 Methods for monitoring employees performance
There are many methods that helpful in monitoring the employees performance. HR
manager of Posh Nosh Ltd. Also uses methods for monitoring the employees performance.
Following are the methods that helps in evaluating the performance of the employees which are
as follows-