Human Resource Management Report: Recruitment, Motivation, and Rewards

This report delves into the core concepts of Human Resource Management (HRM), contrasting it with traditional Personnel Management and highlighting the benefits of HRM for organizations. It uses the case of Cambridge Satchel, a UK-based SME, to illustrate key HRM functions such as recruitment, selection, training and development, and performance management. The report evaluates the roles and responsibilities of line HR managers, and examines the impact of legal and regulatory frameworks on HRM practices. It further analyzes the importance of human resource planning, compares recruitment and selection processes in small and large businesses, and assesses the link between motivational theories and reward systems. The report also discusses job evaluation, various reward systems, performance appraisal methods, employee turnover, and the usefulness of exit interviews, providing recommendations for effective HRM strategies.

Human Resource
Management

TABLE OF CONTENTS
introduction....................................................................................................................................1
task...................................................................................................................................................1
Difference between personnel management and human resource management and which
would be better and why..............................................................................................................1
Human resource management function and their benefits..........................................................2
Evaluation of the roles and responsibilities of line HR managers...............................................3
Impact of the legal and regulatory framework on human resource management........................3
Analysing the reasons for human resource planning in organisations........................................4
Comparison between recruitment and selection process between small and large business
organization.................................................................................................................................4
Evaluating effectiveness of the recruitment and selection in two organizations.........................5
Assessment of the link between motivational theory and reward system...................................6
Importance of job evaluation.......................................................................................................6
Evaluation of various reward systems in different organizations and contexts...........................7
Alternatives for performance appraisal methods.........................................................................8
Reasons behind employee turnover and appropriate recommendations......................................8
Usefulness of the exit interview..................................................................................................9
Impact of regulatory and legal framework on employee redundancies and dismissal
recommendations.........................................................................................................................9
conclusion......................................................................................................................................10
references.......................................................................................................................................11

INTRODUCTION
Human Recourse Management (HRM) is a process of hiring and developing employees
so that they become more valuable for organization. There are different functions of HRM such
as conducting job analyses, planning personnel needs, recruitment of right people for the job,
training and development programs, etc (Gopee and Galloway, 2013). The current research
project is based on human resource management and its benefits to a small business
organization. Regarding this, Cambridge satchel has been chosen as a part of study which is a
growing SME of UK. It manufactures leather bags and accessories as per the demand of
customers. The current investigation focuses on personnel and HR management and their
important for small business enterprises. Further, it also shed lights on recruitment and selection
process of the organization and importance of various motivation tools for reducing employee
turnover.
TASK
Difference between personnel management and human resource management and which would
be better and why
Personnel management (PM) Human Resource management (HRM)
 It is a traditional approach of
managing employees.
 It is a modern concept of managing
people and their skills in the
organization.
 Personnel administration, labour
relations and employee welfare
are considered as the major
functions of PM (Longenecker
and Fink, 2013).
 HRM focuses on development,
acquisition, motivation and
maintenance of human resource in
an organization.
 It is based on assumption that
employees are major input for
getting appropriate and desired
output of the firm.
 It assumes that people are very
significant and valuable assets for
attaining organizations goals and
objectives (Sanders, Cogin and
Bainbridge, 2013).
 Designing of job is based on  Job design is based on team work
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division of labours. rather the number of labours.
 Decision making process follows
a centralised system in which top
management takes all decisions as
per the rules and regulations of
the firm (Gravells, 2010).
 HRM includes employee
participation and competitive
environment at the time of making
important decision for organization.
 Lack of training and development
opportunities.
 In human resource management,
company highly emphasises on
training programmes.
 It is routine function.  It is known as strategic function.
As per the above discussion, human resource management is more important and
beneficial aspect as compared to personnel management. So, Cambridge satchel should use
HRM rather than PM because human resource management completely focuses on planning,
monitoring and controlling aspects of resources whereas personnel management majorly
concentrates on linking management with the employees (Pool and Sewell, 2007).
Human resource management function and their benefits
Major functions of HRM are recruitment, selection, training and development and
performance management. All these functions and their benefits are described as under:
 Recruitment: It is most important function of HRM of Cambridge satchel for identifying
the needs of firm to employ someone for a specific post. It focuses on hiring right people
for right place and on right time. Formulation of job description and personnel specific
are also important task of recruitment function which helps in completing selection of
right candidate (Nienaber and Roodt, 2008).
 Selection: This function can be defined as a process of choosing right candidate from all
applicants as per the requirement of vacant post. This function uses different methods for
screening applicants such as questionnaire, group discussion and interview, etc.
 Training and development: For increasing skills and experiences of employee, HRM of
Cambridge also focuses on training and development of new and existing employees. It is
beneficial for making leather goods and bags as per the needs and requirement of
customers (Cooke, 2012).
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 Performance management: This function of HRM of Cambridge satchel focusses on
performance of SME, different departments and employees. It helps in developing a link
between resources, system, employees and strategic objectives of an organization. It is
important for increasing financial performance, employee motivation and improving
management control at Cambridge Satchel (Jetmore, 2005).
Evaluation of the roles and responsibilities of line HR managers
Human resource manager plays a very important role in completing each and every
function of HR department in effective manner. HR manager is accountable for developing
recruitment plan for hiring employees for vacant job position at Cambridge satchel. Along with
this, selection of right candidate is also one of the major responsibilities of HR manager. Making
appropriate arrangement of training and development sessions for increasing skills and
knowledge of employees is also considered as significant responsibility of line HR manager of
SME. Along with this, HR manager provides appropriate coaching and guidance to new
employees for completing their task in an appropriate way. Motivation is one of the major factors
which can increase the individual outcomes (Prasad, 2010). So, HR manager uses different tools
and techniques for improving the level of motivation of entire workforce. Along with this, roles
and responsibilities of human resource manager of Cambridge satchel include performance,
grievance, discipline, termination and reward management. Therefore, HR manager plays
significant role in managing employees for attaining strategic goals of the firm.
Impact of the legal and regulatory framework on human resource management
Cambridge Satchel is operating its business in UK and government of this nation has
introduced some legal rules and regulations for managing employees. Small business firm needs
to follow all rules and regulations at the time of developing HR policies and practices. Sex
Discrimination Act 1995/97, Race Relations Act 1992, Disability Discrimination Acts 1995 has
positive impact on Cambridge satchel and reduces different types of discrimination at workplace
such as gender, race and disability, etc (Agha, 2001). It helps in increasing the level of
motivation and satisfaction of employees towards job. Along with this, Equal Pay Act 1970 and
2005 focuses on salary and wages of employees. As per this act, organization needs to follow
appropriate process for deciding salary and wages of personnel. Therefore, these acts have
positive impact on process of salary and wages of organization. These acts help in providing
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appropriate salary to employees as per their skills and knowledge and completion of allocated
task. In addition to this, Employment Act 2008 and Employment Relations Act 2004 help to
strengthen the employment process of Cambridge Satchel. Including this, there are different
regulatory frameworks which have positive as well as negative impact on HR policies of this
company (Key legislation regarding recruitment and selection, 2013).
Analysing the reasons for human resource planning in organisations
HR planning can be defined as a process which helps in identifying current and future
human resource needs for an organization to attain strategic goals and objectives. Along with this
it plays important role in developing link between human resources and overall strategic plan of
the company. Human resource planning is required for developing organizational strategy of
Cambridge satchel (Tams, 2008). Along with this, small business organization requires
appropriate planning of HR for increasing volume of the business and improving skills and
experiences of personnel. At this stage Cambridge satchel is facing a specific issue of employee
turnover due to the some factors of job dissatisfaction. So, it increases the requirement of
appropriate planning of HRM. This planning helps in reducing employee turnover by improving
the level of satisfaction of employees. Labour cost plays important role in financial performance
of Cambridge and for improving financial performance, company needs to focus on reduction of
labour cost also. HR planning helps in determining different tools and techniques for reducing
unnecessary labour cost of the organization. In addition, it a manufacturing firm so, organization
needs to focus on appropriate supply and demand of labour. So, it is also considered as major
needs of HR planning (Gopee and Galloway, 2013). Including this, government policies, labour
market competition, and changes in nature of work and technology advancement also increases
the requirement of human resource planning in Cambridge Satchel UK.
Comparison between recruitment and selection process between small and large business
organization
Cambridge satchel is a small business firm of UK. On the other hand Burberry is a group
PLC and operating its business operations for manufacturing begs and other accessories also.
Therefore, Cambridge satchel can develop a little competition for this large scale organization.
Both organization follow a specific process of recruitment and selection (Champoux, 2010).
Comparison between these processes are as follows:
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Basis Cambridge Satchel Burberry
Recruitment
strategy
Cambridge satchel uses word of
mouth for the purpose of
recruitment.
It uses appropriate process of
recruitment and selection of
appropriate personnel.
Internal
recruitment
Promotion is one of the best way by
which Cambridge conduct internal
recruitment (DeFeo, 2013).
At the time of internal recruitment
Burberry uses appropriate process
of performance appraisal method
and after analysing individual
performance organization provides
opportunity of growth and
development.
External
recruitment
Advertisement Online recruitment and portals
Policy of
recruitment
It does not follow a specific policy
of recruitment.
Burberry follows a specific process
for developing recruitment policy
and follow each and every step at
the time of selection. Such as:
Online advertisement, collection of
CV, matching skills with job
requirements, etc (Lucio, 2013 ).
Selection Selection is based on interview
only
It uses different methods of
selection such as screening, group
discussion, case study and
individual interview, etc.
Evaluating effectiveness of the recruitment and selection in two organizations
As per the above discussion Burberry follows more effective process of recruitment and
selection as compare to Cambridge Satchel (Boaden, 2006). It helps in selecting right candidate
for right place. Along with this, it also helps in reducing employee turnover. But, on the other
hand Cambridge satchel is not followed appropriate process of recruitment so, it increases labour
cost of the company as well as turnover also. So, Cambridge needs to follow a very systematic
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process of recruitment and selection. It will help in improving growth and development of small
business organization.
Assessment of the link between motivational theory and reward system
There are different motivational theories which plays important role in formulating
appropriate strategies and policies for providing fair, equitable and consistent rewards to
employees. For example, Maslow’s theory of motivation helps Cambridge satchel in determining
needs and requirements of employees (Cambridge Satchel, 2016). By which company can
provide appropriate facilities and reward for satisfying that particular need in effective manner.
Similarly, Herzberg two factor theory focuses on two different factors of job satisfaction and
dissatisfaction. It is appropriate for providing suitable working environment for employees by
which they can satisfy with their jobs. Similarly, other theories of motivation also play important
role in increasing employee involvement in decision making process and other business
operations. It helps in increasing communication between management and employee of the
company by which HR manager can provide appropriate reward to employees. These reward
help in satisfying needs and requirement of personnel as well as also increase the job satisfaction
level. Therefore, motivation theories and reward system has appropriate link to determine reward
for every employee (Prasad, 2010).
So, Cambridge satchel also should focus on needs and requirement of employees and
different factors of motivation which can affect the satisfaction level of employees. So,
Cambridge satchel needs to follow Maslow’s hierarchical theory and Herzberg two factor theory
of motivation for motivating employees and providing monetary and nonmonetary rewards as
per their level of motivation (Bush, 2011).
Importance of job evaluation
Job evaluation can be defined as a systematic process for determining the value and
worth of a particular job as compare to another job in Cambridge Satchel. Process of job
evaluation includes different stages such as:
1. Gaining acceptance
2. Creating job evaluation committee
3. Idnetifying jobs which required evaluation
4. Job description
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5. Methods of job evaluation
6. Classification of jobs
As per this process top management of Cambridge satchel needs to communicate aim and
objectives of this program to employees of the company (Bosma, 2007). Along with this, SME
needs to develop appropriate panel of experiences employees for evaluating job. There is no
needs to evaluate each and every job, so, Cambridge Satchel needs to focus on key jobs of
particular departments. Along with this, for deciding a particular criteria of job evaluation
Cambridge satchel needs to develop appropriate description. Afterwards small business firm
should focus on appropriate methods of job evaluation which will help in evaluating each and
every factor in effective manner. Job evaluation is very beneficial for Cambridge satchel because
it helps in reducing inequalities in salary structure of different employees of the organization.
Along with this, it also plays important role in selecting appropriate employees for specific job.
Further, it develops a significant relationship between management and employee of Cambridge
satchel (Ke, 2006).
Evaluation of various reward systems in different organizations and contexts
As per the above discussion every employee has their own needs and requirement, so
money is not an appropriate reward for satisfying every type of need. So, Cambridge satchel
needs to focus on both tangible and intangible rewards. Tangible rewards can be provided by this
SME for service of employees. These rewards can be in the form of money or can be easily
converted in monetary amount (Brody, 2010). This type of rewards system includes salary,
bonus, fringe benefits, pay raise and membership in club, etc. Money is one of the most
important motivator for employees so, it helps Cambridge satchel in increasing the satisfaction of
employees. On the other hand, in some context money is not enough to rewarding employees.
So, Cambridge satchel needs to provide some intangible rewards also such as award, recognition,
etc.
Appropriate incentive policy helps in improving reward system of Cambridge satchel.
High tangible rewards will not be appropriate for every context because it can increase
expectation of employees as well as reduce the Return on Investment of Cambridge satchel. So,
this small business firm needs to focus on both tangible and non-tangible rewards system for
increasing motivation and performance of personnel (Schoemaker, Krupp and Howland, 2013).
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Alternatives for performance appraisal methods
 Performance indicators: Cambridge satchel can analyse the performance of the
employees against decided targets. It helps in determining difference between actual and
expected performance of employees.
 Checklist: In this method, HR department of Cambridge satchel needs to develop a
statement including different close ended questions. After fulfilling checklist of every
employees HR department can determine the final score for every employee. Score of
every employee will help in analysing performance of every personnel. But sometimes it
is not appropriate to assemble and analyse because it requires lots of time and cost of
Cambridge satchel (Gopee and Galloway, 2013).
 Ranking: According to this method Cambridge Satchel can provide appropriate ranks to
every employee as per their worth for organizational goals and objectives. But,
sometimes it is difficult to assess the worth of employees. So, organization needs to pay
appropriate attention towards ranking.
 360 Degree appraisal: It is one of the best method of performance appraisal of
employees of Cambridge satchel because it focuses on skills, abilities and behaviour of
every employee. Company needs to take appropriate feedback from supervisors,
subordinates, peers and even customers. It helps in analysing performance of every
employee in effective manner (Champoux, 2010).
Reasons behind employee turnover and appropriate recommendations
Cambridge Satchel is facing one of the crucial issue of employee turnover which affects
overall performance of the organization. There are different reasons behind the high employee
turnover such as employees of the company are not satisfied with their job because of the lack of
motivation and communication. Along with this, inappropriate working environment is also one
of the major reason behind the resignation of employees of Cambridge. Further, HR management
of the company does not follow appropriate process to allocate role san responsibility to
employees (Lucio, 2013). It affect their individual and organizational performance. Including
this, inadequate salary and benefits is also an important reason behind the employee turnover.
Further, lack of recognition and opportunities for growth in small business firm is also one of the
reason behind this problem. Including this, small business enterprise follow specific policies and
practices for managing employees so, if employees do not follow rules and regulations than HR
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department of Cambridge terminate and dismiss that particular personnel. It also increases
employee turnover in organization (Gopee and Galloway, 2013).
For resolving problem of employee turnover, Cambridge satchel needs to sue different
motivational theories and communication methods. These theories and methods will help in
increasing motivation and communication among employees. Along with this, organization
should implement 360 degree methods of performance appraisal which will helps in providing
appropriate salary and wages to employees as per their roles and responsibilities (Prasad, 2010).
Usefulness of the exit interview
Cambridge satchel uses exit interview of those employees who want to resign from their
roles and responsibilities. It is useful for determining reason behind the employee turnover. It is
one of the best method for getting immediate feedback of employees for Cambridge Satchel.
Along with this, using exist interview process Cambridge satchel can improve organizational
policy and process which lead improvement in working environment of the firm. Exit interview
is also useful for improving effectiveness of the recruitment process and reducing employee
absenteeism (Bush, 2011). Sustaining or raising organisational performance through potential is
also one of the major benefit of conducting exit interview for organization. Along with this, it
helps in increasing employee engagement at workplace which is beneficial for improving
individual as well as organization performance (Boaden, 2006).
Impact of regulatory and legal framework on employee redundancies and dismissal
recommendations
Employee redundancy is when employer of Cambridge satchel terminates someone’s
employment because of the position is no longer required. In this process employer must have
appropriate work related reason. But on the other hand employee dismiss is when employer
terminate employment of personnel if he/she is not performing their roles and responsibilities in
effective manner or does not follow organization’s standards. According to the legal framework
employer of Cambridge satchel can dismiss an employees with or without notice (An
introduction to employment law, 2015). Along with this, redundancy is also one of the valid
reason for the dismissal. If any employee breach any contract than employer of Cambridge has
right to terminate the employment of that personnel. Therefore, legal and regulatory framework
helps in safeguarding tights of employee and employer.
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For reducing the rates of redundancies and dismissals Cambridge Satchel needs to
consider employment law at the time of developing policies of HRM. Along with this, at the time
of termination company should provide a valid reason behind termination of personnel. It will
help in improving HRM of the company (Redundancy employment law, 2015).
CONCLUSION
The current research project has concluded that human resource management is one of
the important aspects for every individual of Cambridge Satchel not only for business
environment. It helps in improving recruitment and selection process as well as performance
appraisal method of the company. Along with this, report has reflected that inappropriate HRM
can reduce the growth opportunities for Cambridge. So, every Small business firm should focus
on appropriate approaches of HRM for improving performance.
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