Virgin Media's HRM: Recruitment, Selection, and Porter's Analysis

This report provides a comprehensive analysis of human resource management (HRM) practices at Virgin Media. It begins with an overview of the company, its operations, and its vision. The report delves into the HRM styles employed by Virgin Media, including differentiation, cost management focuse...Read More

Running head: Human resource management
Human resource management

Human resource management
Table of Contents
Introduction.................................................................................................................................................3
Description about the company..................................................................................................................3
Human resource management styles..........................................................................................................4
Recruitment and selection in virgin media..................................................................................................5
Porter five forces analysis..........................................................................................................................11
Conclusion.................................................................................................................................................14
References.................................................................................................................................................15
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Introduction
The main purpose of this task is to explain and analyze the effectiveness of recruitment
and selection process in Virgin Media Company. The firm offers mobile telephone, internet, and
television services to the customers across the world. It is the largest international cable
corporation in the global world. It depicts that how HR executive uses human resource theories
to meet its long-term mission and vision. Apart from this, porter five forces model has been
explained in the paper which helps to overcome the competitors in the global world. In addition,
advantages and disadvantages of human resource management have been shown in the task.
Moreover, it discusses little about the business operations of the firm and also explains about the
human resource management style that helps to attract more candidates in the organization.
Description about the company
Virgin Media plc is a British corporation that offers television, fixed and mobile
telephone and broadband internet services to consumers and businesses in the United Kingdom.
The firm was founded in 2006 with its headquartered is located in Hook, Hampshire, United
Kingdom. The organization operates and manages its own fiber-optic cable network in the
United Kingdom. The firm is trying to make a digital world that makes good things happen for
the communities and customers in which they operate. The company launched the first virtual
mobile network in the world. It is one of the largest fixed home phone providers in the Ireland
and UK. The company is the part of liberty global plc, the world biggest international cable
corporation (Virginmedia, 2017). The main aim of the company is to provide effective and
dynamic telecom services with maintaining sustainability in the organization. The company uses
effective and attractive strategies to achieve vision and mission of the firm. Virgin Media
employs approx 14,004 employees within the organization. Apart from this, the organization
uses effective and unique promotional and advertisement strategies to attract more and more
customers across the world (Scott, 2015).
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Human resource management styles
Human resource management styles are the principles and values that underline the
abilities, methods, approaches which managers utilize in managing and controlling situation and
expressing leadership in the firm. The HR management style is well built and effective
differentiator for Virgin media. The HR management style is attractive and unique to ambiguous
and creative workers (Boxall and Purcell, 2011). The style of HR management and leadership
may be explained in the human resource strategy and has to be permitted and approved by the
managers and top management within the organization. The differentiation of the HR style has to
be associated with the differentiation of the whole business and trade strategy. The effective and
dynamic organization must not initiate different management and competitive HR style. The firm
has to choose right and appropriate HR strategy to carry out the trading activities effectively and
successfully. The human resource management styles have been stated below (Bratton and Gold,
2012).
Differentiation HR strategy: The differentiation strategy is the most effective and dynamic HR
strategy for the innovative and creative employees. Virgin media uses this style to communicate
and collaborate with people in the global market. The firm makes procedures, policies, and
processes differently. It initiates new strategies, approaches and policies and it does not handle
costs of HR procedures in a deeply (Armstrong, 2011). The company does not provide
information about its domestic practices. It is difficult to say that HR management is called the
creative organization. It is about the management and administration of the chaos. The human
resource professionals have to set the specific vision and loose HR tactics and plans to absorb
and adopt quick changes. In this way, this style is useful and effective to accomplish goals and
objectives of the firm (Marchington, Wilkinson, Donnelly, and Kynighou, 2016).
Cost management focused HR Strategy: The cost management focused HR strategy is quite
different from differentiation HR strategy. The HR procedures and approaches encourage and
underline the stability of the firm. The significant HR processes and procedures are strictly
controlled and handled by the hierarchy of top management. The cost management focused HR
strategy is closely connected with industry standards. Along with this, Virgin media can take
competitive advantages by using this style within the organization. The HRM management style
is monitored on designing processes and policies which can efficintly and easily operate in the
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secure environment. Furthermore, the organization is ready to face and handle various challenges
and risks of the market. Natural fluctuation is one of the significant resources of the cost
management (Jackson, Schuler, and Jiang, 2014).
HR strategy with the focus on key elements: This strategy is used by HR managers to increase
sales and properity of the Virgin Media. It also helps to beat the rivalries in the global world. The
firm uses this strategy to maintain the stability of the workers and to maintain a favorable
working environment in the organization (Bamberger, Biron and Meshoulam, 2014).
Recruitment and selection in virgin media
Recruitment is a primary and core function of human resource management. It is the first and
important step of appointment. Recruitment may be defined as a process of attracting, selecting,
shortlisting and appointing suitable candidates for jobs either permanent or temporary within an
organization (Daley, 2012). In contrast, the selection is the process of interviewing and
examining skilled and capable applicants for a specific job and selecting a candidate for job
based on specific criteria. Recruitment and selection are significant function of the human
resource department that helps to attain desired vission and mission of the association (Buller,
and McEvoy, 2012). Virgin media uses the effective and attractive selection process to attract
more candidates and to increase the productivity of the firm. By selecting the best and potential
candidate for the required job, the company will get quality of performance and productivity
(Brewster and Mayrhofer, 2012). Virgin Media uses dynamic and unique techniques for
recruiting the best employees. Workers are the most significant assets of any organization. Good
and potential can help to grow the business, and foster amazing culture. There are several
techniques for recruiting the best employees that have been discussed below.
 Promote brand: It is one of the best and attractive ways to recruit the candidates for
doing work in an organization. Virgin media should build and develop a brand that helps
to attract and intrigues a candidate within the organization. Having a strong, recognizable
brand, logo and mission statement that resonate with the desirable and potential candidate
is one of the significant factors to recruit the candidates. The organization should make
brand bold and specific to enlist the capable employees. Being an expert, the firm has
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been able to gain competitive advantages by recruiting skilled and potential applicants
(Fong et al, 2011).
 Make a personal connection: Virgin media should make personal connection and
relationship with employees. Although, it is very critical to make an effective relationship
with the candidate in the organization. It also helps to know about the background of the
applicant in the organization.
 Filter the candidates: Having a plethora of applicants is not always a good thing. If a
majority of these applicants are under qualified and poor fit in another way, then their
entry is a waste of everyone’s time. Therefore, the firm should eliminate these barriers to
gain several advantages in the global market.
 Create a talent pool: The firm needs to create a talent pool to attain long-term goals and
objectives. It also helps to collect information about the past experience of the workers.
 Use a targeted search: A targeted search and survey is conducted by the organization to
reduce risks and challenges of the market. It also helps to attract suitable and capable
candidate in the organization.
 Ask for the best: If the company wants best, then they should demand for the best work.
It will help to create a positive cycle in the organization. For example, if the potential and
capable workers have the impression then the firm will hire these potential and capable
employees.
Apart from this, the company uses the effective and unique selection process to retain more
candidates in the organization (Madera, 2012). The selection process consists of eight steps that
have been discussed below.
Initial screening: Generally, the recruitment and selection process starts with the primary
screening of candidates so that unprofessional and incompetent employees leave the job at the
initial stage. This stage is helpful to save the time, efforts and outlay of the organization. In this
stage, general and important questions are asked from the candidates. There are chances that
some applicants would be incompetent for the employment but some of them would be capable
and competent for doing the job. Therefore, the main aim of screening of applicants is to
eliminate the number of candidates available in the selection process (Aswathappa, 2013).
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Completing the application form: It is the second stage of selection process in which
candidates are asked to fulfill the organization’s submission form. There are several information
given in this application form such as applicant’s name, telephone number, and address.
Employment tests: The physical and mental abilities, skills, knowledge, personal attributes and
other aspects of behavior can be successfully and efficiently analyzed through the employment
tests. For this purpose, there are various types of assessment that can evaluate and measure the
different phases of human behavior. The main advantage of employment tests in the selection
process is that it can identify and evaluate the competent and potential candidates from a wide
range of applicants for the job. The several tests include cognitive aptitude tests, work sample
tests, job knowledge tests, personality tests and vocational interest tests (Berman et al, 2012).
Job interviews: In this stage, the applicant and interviewer exchange information in order to
attain goals and objectives through conservation. The employment interviews are conducted by
managers and top management to judge and indentify the skills and knowledge of the candidates.
A job profile must be formulated on the basis of job report before conducting the interview.
There are several types of interviews used by the company such as structured interview,
unstructured interview, and mixed interview.
Background checks: The background of the candidate is verified and confirmed through several
references and former manager. Along with this, the criminal records, educational and legal
status to work are checked and confirmed. Personal information of the candidate are contacted to
ensure the correctness and validity of the provided information. Efforts are done by HR
executives to know and understand the past activities of the employees to that the future actions
and activities can be estimated from it.
Conditional job offer: After checking the background of the employees, a job offer is provided
to the workers. It is one of most significant steps of the selection process. It helps to make
effective and dynamic decisions in the organization. The candidate that best meets the needs and
demands of the employment, he is selected to do job effectively. Thus, conditional job letter is
given which should be followed by medical exam (Weekley and Ployhart, 2013).
Medical exam: It is the significant step of the selection process in which the medical/physical
examination of the selected applicant is conducted. The medical exam of the applicant is
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necessary to check and examine either applicant is suitable for employment or not. If the
candidate passes the exam, he will be finally selected for the job.
Final selection decision: It is the final stage of selection process. In this stage, the final offer
letter for the job is issued to the candidate by the relative department (Harzing and Pinnington,
2010).
Now it is assumed that Virgin Media Company uses the above-mentioned selection
process to improve and enhance performance and productivity of the firm. Apart from this, the
company also uses some selection strategies to hire the workers within the organization that has
been stated below.
Multistage selection strategies: A multistage selection strategy is used by the firm to engage
employees in the organization. The human resource executive is liable for evaluating each and
8
1. Preliminary interview
8. Final selection
2. Receiving applications 3. Screening of applications
4. Employment test 5. Employment interview
6. Checking references 7. Physical examination

Human resource management
every appraisal tool and ensuring that it is legally connected to the needs and requirements of the
open position. This strategy is paired with either compensatory or conjunctive strategy.
Conjunctive strategy: HR professional uses a conjunctive model to manage and administer
several types of evaluation tools and techniques in several stages. If an individual does badly on
a primary assessment and evaluation, then he is eliminated from the group of candidates. If the
firm uses this strategy, evaluation and assessment tools should be ordered carefully so that an
applicant is not eliminated based on less significant criteria that one is assessed later in the
procedure. The main advantage of this strategy is that it is less expensive compared to the
compensatory strategy.
Compensatory selection strategy: Virgin media uses this strategy to make effective selection
process worldwide. In this strategy, an applicant is not eliminated on basis of results and
outcomes of a single evaluation tool and technique. In this way, this strategy is effective and
unique to select the people in the organization (Thunnissen, Boselie, and Fruytier, 2013).
Virgin media also uses enormous types of theories to gain competitive advantages and to
overcome the competitors in the global market (Stahl, Björkman and Morris, 2012). The human
resource management theories have been discussed below.
Resource-based view approach: This approach focuses on internal sources of the organization.
It is the principal element for a sustainable rivalry benifit. The value brought by human resource
professional is the primary factor of this approach where flexibility is utilized in order to
minimize costs and maximize efficiency. RBV is a managerial framework used to determine and
evaluate the strategic resources with the potential to render comparative benifits to a firm. These
resources can be utilized by the company in order to attain sustainable competitive advantages.
This theory helps to understand and evaluate the conditions and circumstances under which
human resources become a valuable, scarce and organization-specific (Nath, Nachiappan, and
Ramanathan, 2010).
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Best fit approach: HRM uses this strategy to attain optimal vertical fit with the maintaining
sustainability in Virgin media and environment as well. This approach depicts the relationship
between strategic human resource management and human resource management. It helps to
keep in mind the needs and requirements of the organization. Best fit practice helps to gain
competitive advantages in the global world. This theory is unique and effective to attain desired
goals and objectives of the firm. Best fit system indicates a high margin of confidence regarding
pay as a motivator. In this way, this theory plays a vital role to accomplish the mission and vision
of the company (Boselie, 2010).
Motivational theory: It is a significant theory to encourage the employees for doing work
effectively and efficiently. It is one of the most important elements that help to enhance and
maximize the revenue and profitability of Virgin media. The company uses this theory to
increase the number of people in the organization. It also helps to achieve and improve the high
level of performance and productivity. There are several motivational theories are used by the
company to maximize the outcomes and results of the firm. The theories include cognitive
evaluation theory, Alderfer’s ERG theory, expectancy theory, Maslow theory and Herzberg two
factor theory (Elliot, Dweck and Yeager, 2017).
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Strategy
Competitive advantage
Capability
Resources
Investigation of the
resource gap
remained and fills
them with proper
measures
Determine the best strategy that
can bring the resources in proper
channel according to firm potential
and capability
Access the potentiality of the resources as
per capabilities and potential
Identify the capability of the firm and plan the
resources percentage for every capability
Identify the resources and classify them. Perform
SWOT analysis for absolute utilization of resources.

Human resource management
Contingency theory: This theory states that human resource management strategies and
practices are dependent on the organization’s circumstances and environment. This theory claims
that there is no specific way to originate and organize an association to make effective and
dynamic decisions. This theory is dependent on the external and internal situation. This theory
helps to maintain flexibility and transparency in the organization. By using this theory, a
potential and capable person can become a leader in the organization. In this way, various
advantages are gained by using enormous types of human resource management theories in an
organization (Kim, Song and Jones, 2011).
Human capital theory: This theory focuses whether how employees in an organization
contribute their skills, abilities, and knowledge to enhance and improve organizational capability.
The human capital theory uses employee’s skills, knowledge and experience to increase and
enhance the economic values and belief. Also, it will help to attain outcomes of the firm with
more effectively and efficiently.
System theory: It is an alternative theory for understanding, examining, handling and planning
organization. It helps to maintain discipline within the organization. Furthermore, it maintains
favorable relationship between employer and employee.
Porter five forces analysis
Porter five forces analysis is a significant model to analyze and evaluate strengths and
weaknesses of the competitors. It also helps to identify and measure the plans, policies, and
strategies of the competitors in the world (Campbell, Edgar and Stonehouse, 2011). The porter
five forces model for Virgin media has been stated below.
Entry barriers: Entry barrier is a most effective factor in the telecom industry. This barrier is
determined by the high cost of the fixed assets. These costs include operating cost of the
network, cost of establishing the network and infrastructural cost. The firm has spent billions of
pounds for fiber cable network required within the organization. The telecom industry is a
tremendously rivalry market where key market leaders try to attain more profits through sales
volume. High cost for advertisement and promotion is one of the significant factors that
influence the success and growth of the firm. It also focuses on the services of the telecom
industry. Furthermore, the firm needs to monitors on the activities and operations of the
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competitors. It will help to reduce and eliminate the number of new rivalries in the
telecommunication industry (Lefever, 2012).
Rivalry determinates: Due to the presence of effective market players such as BT and SKY,
there is immense competition in the telecom sector. It also increases expectations, requirements,
and needs of the customers in the global market. The firm differentiates the products and services
from the competitors to attract more consumers in the market. For this purpose, the company is
reducing and minimizing the prices of services and products to attract more customers in the
global world. The competitors maintain a strong position in the market that affects the overall
profitability of the Virgin Media. Sky network renders premium television services and content
to the customers. Therefore, Virgin media needs to focus on the plans and policies of the rivalries
to increase the number of customers in the global world. High switching cost is another issue for
the organization because it makes difficult for Virgin Media Company to maximize its market
share (Simon, 2012).
Supplier power: To attain cost leadership advantage, the company needs to really control
supplier power. It is one of the significant elements of economies of scale. The suppliers demand
higher prices for rendering the services in the competitive market. If the company is not met the
demand of the suppliers then they refuse to work with the organization. Thus, it affects goodwill
and position of the firm in the market.
Threats of substitutes: There are several players in the market such as Sky and BT in the
bundled service market and Vodafone and O2 in individual service market segment. All the
companies render similar services and products at competitive prices. Hence, it is quite difficult
for new customers to select a service in the global market. The choices may be based on either
current needs, requirements or instantaneously. In this way, it is difficult for the company to
render its services in the market. Thus, a threat of substitute is the biggest issue in the
organization (Nikolaos and Evangelia, 2012).
Buyer power: The telecom industry such as Vodafone and Virgin media try to minimize its
churn rate. Therefore, the customers enjoy a greater and higher degree of bargaining power.
Service providers render discount and cheaper rate to ensure that they do not lose the customers.
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Human resource management
The organization may be forced to renegotiate deals with the consumers to reduce risks and
challenges in the market.
In this way, porter five forces analysis provides information about the internal
environment of the business. It helps to gain competitive benefits in the international market.
Furthermore, the firm is developing innovative strategies to create value for the customers.
Porter five forces model suggests that Virgin Media can either differentiate their services and
products by managing lowest delivered cost or differentiating their products offered by the
company. Apart from this, the firm also uses SWOT analysis and Pestle analysis to evaluate and
know the opportunities and weaknesses of the competitors across the world (E. Dobbs, 2014).
Human resource management is considered the backbone of each and every organization.
The success and growth of the each and every company depend on the sustainable human
resource management. HR executive maintains coordination and cooperation among the different
department to carry out the business smoothly (Tooksoon, 2011). Several functions are
performed by HR professional to run trading activities successfully and effectively. It also helps
to develop and build favorable working environment in the marketplace. The advantages and
disadvantages of human resource management have been discussed below (Scullion and
Collings, 2011).
Advantages
 HRM helps in training and hiring the workforce. Manpower planning and development is
one of the most effective responsibilities of the HRD. Effective and attractive hiring and
training strategies are used by HR professionals for bringing the right and suitable
candidate in their organization. For this purpose, they prepare a job description and job
design to attract more candidates in the market (Guest, 2011).
 Human resource management take care of the performance management system to
evaluate and recognize the performance and efficiency of the employees. HR executives
keep their one eye on the performance and productivity of the workers. Along with this,
they motivate and encourage employees for doing work more effectively and efficiently.
 Additionally, HR managers help in building and developing a favorable culture and
values in the organization. The performance and productivity of an individual are
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dependent on the working environment and culture of the firm. Hence, creating a positive
and good working environment is expected from HR professionals. It helps to provide job
satisfaction and job security to the workers (Scullion and Collings, 2011).
 Furthermore, HRD helps to reduce and eliminate conflicts and issues of the employees
related to the workplace and culture. They also maintain a reciprocal relationship with
workers to build and encourage their morale and interest towards employment and work
(Griffin, 2013).
Disadvantages
 Sometimes, human resource department does not implement programs and campaigns
effectively and efficiently. Therefore, HR executive is unable to provide training and
development coaching to new candidates. The programs and campaigns take a lot of
time. It is the biggest disadvantage of human resource management.
 When the training and development programs conducted do not bring any most
significant advantages to the firms then the firm has to spend lot financial resources and
time. It affects employee’s competencies and capabilities adversely. In addition, it has a
direct impact on the productivity of Virgin media.
 Apart from this, HR professional is not able to maintain a manual relationship with
employees within the organization. It also affects the ability and potential of the workers.
Conclusion
On the mentioned study, it has been analyzed that human resource management is
essential and significant part of each and every organization. The paper explains the recruitment
and selection strategies of Virgin Media Company which is one of the biggest telecom industries
and has acquired a good position in the global market. The company uses several types of human
resource management styles to attract more applicants in the market. Apart from this, dynamic
and unique human resource theories are being used by the organization to make a good financial
position worldwide. Porter five forces analysis is done to sustain competitive benefits in the
global market. Along with this, the significance of human resource management has been
explained in the paper. Now it is recommended that Virgin Media should maintain sustainable
human resource management to conduct business activities and operations effectively and
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efficiently. HR professionals must use unique and dynamic recruitment and selection strategies
to enlist capable and talented employees within the organization.
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