HRM Report: Blue Inc.

This HRM report provides a detailed analysis of human resource management practices at Blue Inc., a fashion retail chain in the UK. It examines the differences between personnel management and HRM, outlining various HRM functions and their benefits. The report evaluates the roles and responsibilities of line HR managers, analyzing the impact of legal and regulatory frameworks on HRM. It offers suggestions for human resource planning, evaluates recruitment and selection techniques in Blue Inc. and another organization (Tesco), and illustrates the link between motivational theory and reward systems. The importance of job evaluation is discussed, along with various reward systems and suggestions for improving performance appraisal. The report also explores reasons for employee exits, recommendations to reduce turnover, employment exit procedures, and the impact of legal frameworks on redundancies and dismissals. The report concludes by summarizing the key findings and recommendations for Blue Inc. to improve its HRM practices.

HRM
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
TASK....................................................................................................................................................3
The difference in applying personnel management and human resource management..................3
The various human resource management functions which can be feasibly implemented and their
benefits.............................................................................................................................................4
Evaluation of the roles and responsibilities of the line HR managers can perform.........................4
Analyse the impact of the legal and regulatory framework on human resource management........5
Suggestions for human resource planning in the Blue Inc..............................................................6
Evaluation the effectiveness of the recruitment and selection techniques in two organizations.....6
Illustration of the link between motivational theory and reward systems.......................................7
The importance of job evaluation....................................................................................................7
Pay is considered reward for performance and evaluation of various reward systems...................8
Suggestions for the better alternatives for performance appraisal in Blue Inc................................8
The various reasons for employee exits from organizations and the recommendations to reduce
employee turnover...........................................................................................................................9
The employment exit procedures used by two organisations and the usefulness of exit interview 9
Impact of the current regulatory and legal framework on the employee redundancies and dismissals
and their recommendations............................................................................................................10
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11
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INTRODUCTION
Human resource management (HRM) is a function which is designed to enhance performance
of employees and potential in terms of fulfilling the employer's strategic objectives (Long, 2016).
Human resource is an essential part of the organization. Blue Inc. is a chain of fashion retail stores
which is operating across the United Kingdom. It is one of the largest menswear and women wear
retailers in the country (Blue Inc, 2016). It has stores nationwide mainly in larger towns and cities. The
reports cover the human resource management, stages of human resource planning and company
contribution in the organizational goals. Moreover, the report also features the relationship between
motivational theories, performance appraisal system and cessation of the employees.
TASK
The difference in applying personnel management and human resource management
The difference in applying personnel management and human resource management are as
follows. Approach: Personnel management is a traditional approach of managing people in the
organization. On the other hand, human resource management is a modern approach of
managing people and their strengths in the organization. Focus: Personnel management focuses on personnel administration, employee welfare and
labour relation (Lattmann, 2013). But, HRM focuses on acquisition, development, motivation
as well as maintenance of employees in the organization. Function: Personnel management is a routine function whereas HRM is a strategic function. Job design: In personnel management, job design is done on the basis of division of labour.
Under human resource management, job design function is performed in group work/team
work (Long, 2016). Decision -making: In personnel management, decisions are made by the top management as
per the rules and regulation of the organization. On the other hand, in human resource
management, decisions are made collectively after considering employee's participation,
authority, decentralization, competitive environment etc. (Jiang and et.al., 2012).
 Employees: Personnel management emphasizes on increased production and satisfied
employees. But, HRM focuses on effectiveness, culture, productivity and employee's
participation.
Human resource management is the most appropriate approach because it assumes workforce
as an important element and valuable resource for achieving desired output. Here, employees are
provided with training and development opportunities to enhance their skills.
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The various human resource management functions which can be feasibly implemented and their
benefits
The various human resource management functions which can be feasibly implemented in the
organization can be as identified. The function of human resource management is part of organization
which is concerned with the people who are at work as well as also include their relationship within an
enterprise (Armstrong and Taylor, 2014). HRM motivates employees which are essential for the
continued growth of the Blue Inc. There are some functions of human resource management which are
staffing, training and development and compensation etc. and they are as follows: Staffing: It emphasizes on the recruitment and selection of human resources for an
organization. Recruiting is the personnel function which attracts qualified applicants to fill the
job vacancies. In the selection function, the most qualified applicants are selected which are
hired by the recruiting function by their skills. It benefits the organization in recruiting skilled
and talented employees for the organization (Bratton and Gold, 2012). Training and Development: Training and development enhances the skills and knowledge of
employees to perform their jobs effectively. This program provides useful means of assuring
that employees are capable of performing their jobs at the acceptable levels. Tuition assistance
and tuition reimbursement programs are the example of the training and development. (Buller
and McEvoy, 2012). It benefits in developing performance capabilities of individuals. The
programs helps in preparing employees for higher level responsibilities within the organisation
 Compensation: Human resource management provide rational method for determining how
much employees should be paid for performing certain jobs. It is related to employee
development in which it give incentive in motivating employees (Wang and et.al., 2013). The
incentives include higher levels of job performance and high pay from which they get
motivated and provides benefits to the organization.
Evaluation of the roles and responsibilities of the line HR managers can perform
Evaluation of roles and responsibilities of the line HR manager are as follows. Line managers
are an important source of organization which gathers information about worker satisfaction level
from their different strategies. these strategies are implemented by the higher management to take into
account in their organizational planning process (Rosemann and vom Brocke, 2015). Blue Inc has
strategically integrated HR into their overall plans. Recruitment and management of employees are
carried out by the line managers. The roles and responsibilities are: Employee Engagement: The approach which line managers take in supervising their
employees is the most critical factor in employee engagement. Line managers create
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organizational culture for their teams. If Blue Inc. managers focus on their employee’s strengths
and encourage open communication, they are more likely to engage and encourage their
employees (Whincup, 2014). Performance Appraisal: These processes may be designed by HR professionals but they are
implemented by the line managers. Employee performance and behaviors are assessed and
rated by direct line managers. Feedback is provided in a one-to-one meeting between employee
and line manager (Mayhew, 2016). Disciplining Employees: Discipline in the workplace begins when a line manager sets out his
expectations with his team. These expectations may be supported by policies and procedures
produced by the HR department in Blue Inc.
 Performance Related Pay: This business has a performance related pay structure; the line
manager has a significant role in determining whether his direct reports will receive a pay
increase (Chand, 2015). .Performance ratings motivates the talent employees to perform better
than the average employees.
Analyse the impact of the legal and regulatory framework on human resource management
The impact of legal and regulatory framework on human resource management has been
analysed. Employment legislation deals with the body of laws that helps in maintaining smooth
relationship between employees and employers (Benson and Garmestani, 2013). There are various
legal regulatory laws which will impact HRM and they are as follows: Equal Employment Opportunity: HRM is impacted by regulatory frameworks as it should to
protect employees from unfair discrimination in the workplace. Blue Inc. should also practise
these policies to not discriminate between the employees. Compensation: According to the legal frameworks impact, HRM should set 40-hour work per
week as work duration, pay rate for working overtime, and the minimum wage for their
employees. It is required that the firm should provide the same pay for men and women who
are doing equal work. Labour Relations: HRM should describe the process to their workforce by which labour unions
can be formed and indicate the parties can impact them in various ways (Bratton and Gold,
2012). Employee Safety and Health: Employers are obligated to provide each employee with a safe
and clean environment at their workplace. Blue Inc. should also take care of the employees'
health and safety. Sexual Harassment: It prevents uninvited sexual advances, requests for sexual favours, other
can be inappropriate verbal and physical conduct or hostile conditions.
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 Employee Privacy: This privacy is limited but cannot be used against employees unless there is
strong suspicion of inappropriate actions. It is important for the chosen company to not disclose
employee’s privacy (Siavelis, 2012).
 Developing Policies: Human Resources management has to develop policies to make sure that
manager and employees are aware of these legal restrictions and know how to deal with the
potential violations.
Suggestions for human resource planning in the Blue Inc.
Suggestions for human resource planning in the Client's organisation have been illustrated. The
main goal of human resource planning is to ensure that a company always has candidates lined up to
fill a new available post or position so that time and productivity are not lost. The long delay times of
planning in between one departed employees and new hire could be more weigh on the company
(Wang and et.al., 2013). The other suggestion of human resource planning can be forecasting. It is an
important factor of the process that can tell how long the procedure to hire new employee will take
time.
In case when the large number of employee are needed and job market is stiff for workers
because they required skills workers which are needed by HR department in future. It will be difficult
when the rivals are also seeking employees with these skills and for that they will secure the new
talents by providing increase compensation packages to attract more employees (Chand, 2015).
Moreover, , if a company did not engage in human resource planning by which HRM would not know
how difficult it would be to hire the necessary workers until too late. Potential employees would be lost
to rivals, and the business would be unable to build the team it needs.
Evaluation the effectiveness of the recruitment and selection techniques in two organizations
The effectiveness of recruitment and selection techniques in two different organizations are
been evaluated which carried different methods to select their employees. The client organization is
Blue Inc. and the other larger organization is Tesco and their recruitment and selection techniques are
as follows: Blue Inc.: Company pay attention to the reasonable direction of its staff. The company focus
more on the deal with its candidates with its equality and diversity policy of all times. That
policy is framed to recruit and select people without discrimination as well as its aim is to
choose employees with diverse personality and ability (Saxena and Rai, 2015). Blue Inc. Also
recruits from the existing employees and if not then they take help from advertising agency for
the recruitment.
 Tesco: It mainly uses means like in-store advertising, local agency and various promotional
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tools. Meanwhile, Tesco chooses the new staff through online video conferences which favour
the rapid efficiency as well. In addition, unlike other common businesses, the interviews at
Tesco will be conducted by the line manager to build loyalty with the recruit and help to make
decisions (Tesco PLC, 2016). The interview includes various aptitude and selection tests which
the candidates have to pass to get selected in the company.
It conclude that, selection process of the Blue Inc. is quite different as it follows small method
which is considered effective because they tend to select and recruit employees based on their skills
and technical ability due to the nature of their business. Due to the effective selection process, Blue
Inc. elimination cost is less as compared to Tesco.
Illustration of the link between motivational theory and reward systems
The link between motivational theory and reward systems are affecting the business differently.
HRM must think of new ways to maintain the employee's attention and interest on a project or the
company as a whole. Many companies employ motivational tactics and rewards systems. The link
between motivational theory and reward systems are following: Motivation: Company use positive reinforcement to motivate employees. Many managers
believe that using positive motivation techniques encourages human resource to produce more
and better quality work (Impett and et.al., 2014). For example, Blue Inc. selects an employee as
"Employee of the Week." This technique praises the winning employee; while positively
encourage other manpower to keep trying to do well. Rewards: Companies reward their employees with both tangible goods as well as praise. For
example, Blue Inc. host free lunches or give away company memento to good workers (Kerr
and Rifkin, 2013). HRM also give reward their best employees by simply praising them for a
job well done or by recognizing the hard work they put into project.
Recommendations
The recommendations to improve workforce motivation in Blue Inc. . can be through by using
positive support to motivate their employees. For example a manager may build a good relationship
with his employee that develop trust between them. The company can provide rewards which are both
tangible and in the form of praise that can make employees happier. Satisfied employees often perform
better at work.
The importance of job evaluation
Job evaluation is the generic term in which the relative worth or value of different jobs may be
established. It helps to determine internal relativities by relating different rates of pay to different
elements in the job. Management, administrative, sales and customer service are common departments
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of an organization. Within those departments is a hierarchy that determines the chain of command. To
determine that order, an organization can conduct job evaluations (Bandyopadhyay and Ganguly,
2014). One method is classification which divides jobs by grade while another method is ranking
which puts jobs in their order of importance. Deciding of the hierarchy is an important aspect for the
job evaluation. By evaluating the job, the employer can determine where in the organization hierarchy
the employees can fit for their job. For example, if the job evaluation involves the position of manager,
customer service representative and administrative assistant. Blue Inc. will need to determine which of
the three jobs is most important, which is second most important and which position is third.
Pay is considered reward for performance and evaluation of various reward systems
Pay is the only appropriate reward for performance because Blue Inc. puts a lot of stress on
their reward system to apply its effectiveness. The idea that it might be possible to match a payment
system and a set of circumstances in such a way through which company can achieve stated objectives
which deserves its consideration. Pay is linked to assessment of individual or team performance, skills,
competence or contribution (Avena and Bocarsly, 2012). It could be skill based or performance based.
The various types of reward systems in different organizations are salary, bonuses, gifts, promotion and
recognition. Tesco uses skill based reward method which offers employees with recognition and good
salary. Whereas, Blue Inc. uses a performance related method to reward its human resource by
bonuses and promotion.
Suggestions for the better alternatives for performance appraisal in Blue Inc.
The better alternatives for performance appraisal in Blue Inc. can be suggested as follows. In an
effective organization, other performance appraisal such as assignments and projects should be
monitored regularly. Monitoring is measuring and providing ongoing feedback to employees and work
groups on their progress towards achieving goals. Regulatory requirements for monitoring system is
for the comparing employees performance according to the required standards (Jacobs and et.al.,
2014). The process provides opportunity to review the performance how well employee meet
programmed standards and to make changes in the unrealistic or problematic standards. So monitoring
process is a way to avoid and rectify the unacceptable performances and provide assistance. With this
process, an organisation can get better support from its staff on all level, because of this they are able to
monitor and also assist when needed.
The various reasons for employee exits from organizations and the recommendations to reduce
employee turnover
The various reasons for employee exits from organizations and the recommendations for the
same have been provided below:.
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 Personal problems: Unfortunately, this reason indicates incomplete data capture by HRM or
line managers which typically indicates a lack of a good existed employee (Hauser, 2014).
Recommendation: HR should ensure that each employee has a formal exit interview through
which the exact reason for exit can be captured. Growth Prospects: It is related to a higher compensation, education for a better role, career
growth, team management responsibilities, promotion and bigger job responsibilities.
Recommendation: Organization can reduce exits through open communication, career
counselling, internal job placement, re-training and providing opportunities to the top performers
(Chiang and Borrelli, 2014). Family Reasons: The reasons why employees exist from organization are relocation due to
marriage, maternity, unwell family members and a number of similar situations.
Recommendation: Company can prevent this type of exit by offering options of part-time work,
work from home and flexible work hours (Whincup, 2014).
The employment exit procedures used by two organisations and the usefulness of exit interview
The employment exit procedures are the procedure used within many businesses to terminate
their employee’s contracts in a professional manner. An employee exit procedure should be formally
prepared, documented, and published to provide consistency for the managers in dealing with
terminated employees (Curl and et.al., 2014). The exit procedures used at Blue Inc. and Tesco are
same. To request for a letter of resignation which provides documentation of the employee's intention
to resign. Which allows the department to post and refill the position more efficiently. It should contain
the last day of active work, the last day on payroll and the reason for leaving. It should prepare a notice
of termination for terminating the employee, obtain authorising signatures. The advice which are given
to employee are:
 Cancel telephone and IT system accesses.
 Cancel departmental computer passwords and computer accounts.
 Cancel employee's bank details.
The usefulness of exit interview is to gain valuable information which can prove to be useful in
all aspects of the work environment. This include aspects like the work culture, day to day concerns,
processes, issues around management style, workplace ethics and employee morale (Kulik and et.al.,
2012). Exit interviews can be extremely effective because it helps in assessing and analysing overall
employee engagement.
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Impact of the current regulatory and legal framework on the employee redundancies and dismissals and
their recommendations
There is significant impact on the current regulatory and legal framework on employee
redundancies and dismissals in Blue Inc. The organization has to follow legal and regulatory
framework while dismissals and redundant of an employee. Before deciding to make any employee
redundant there must be a genuine need for redundancy (Whincup, 2014). When choosing employees
for redundancy, the HRM must use a method which is fair and does not discriminate against employee
for reasons. The reasons are age, marriage, pregnancy and maternity, religion, race or sex. For
example, The Equality and Human Rights Commission (EHRC) have produced an information booklet
on managing redundancy for employees who are pregnant or on maternity leave. HRM must make
their decisions on some evidence, for example, on disciplinary records etc. If the employer uses an
unfair selection procedure, this could be unfair dismissal and employee may be able to claim
compensation from an employment tribunal of UK. As well as claiming unfair dismissal, employee
may also be able to claim redundancy pay.
The recommendation in case of a redundancy or dismissal is that the employer should follow
redundancies procedures when making the employee exist from the company. These procedures are
needed when the company are unfair or give employee fewer rights than the legal minimum (Kruppe
and et.al., 2013). If employee has been chosen for redundancy and one think the reason is
discrimination then manpower has the right to compensation. Employee can claim compensation for
discrimination regardless of how long he has worked for the employer.
CONCLUSION
The report concludes that on emphasis legal and regulatory framework, human resource
planning and recruitment process of Blue Inc. can lead to expansion of new markets in UK and abroad.
Blue Inc. aims to recruit right number of employees at the right place and at the right time and ethically
getting rid of them when they are not needed. The report also concludes the relationship between
motivational theories, performance and appraisal system. The report also give recommendations on
the motivating their workforce as well as describe the procedure of the exit interview.
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