Human Resource Management Report: DCSL Software Company Analysis

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This report provides a comprehensive analysis of Human Resource Management (HRM) practices within DCSL software. It begins with an introduction to HRM, its functions, and its importance to organizations, particularly focusing on DCSL's context. The report delves into the strengths and weaknesses of DCSL's recruitment and selection processes, offering suggestions for improvement, such as competency-based interviews and the STAR method. It then explores the benefits of various HRM practices, including training, coaching, and simulation, for both employees and the organization. Furthermore, the report examines employee engagement and its significance in fostering effective employee relations within DCSL. The report also discusses the application of HRM practices and concludes with a summary of key findings and recommendations. The report covers topics such as employee turnover, product quality, and market share, highlighting the impact of effective HRM on these areas. Finally, the report references relevant literature to support its analysis.
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HUMAN RESOURCE
MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1) Purpose of HRM function, importance for organization.......................................................3
P2) Strength and weakness of recruitment and selection process................................................4
LO 2.................................................................................................................................................6
P3) Benefits of DCSL software HRM practices to employees and organization........................6
P4 Benefits of HRM practices in increasing productivity and profit of business .......................8
LO 3.................................................................................................................................................9
P5 employee engagement and its importance in effective employee relation in DCSL software
......................................................................................................................................................9
LO 4...............................................................................................................................................12
P7 Application of HRM practice................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Human resource management is a formal system in the organization. It is responsible for
employee benefit, employee engagement, staffing, directing, planning, controlling, performance
appraisal etc (Bello‐Pintado, 2015). Human resource provides training and development to
employees so that they feel motivated and perform their 100% for the organization. Present
report is based on DCSL software company, it develops software and is working since 1994..
Company need to recruit skilled employees so that they retain in the company for longer
duration. Report will include functions of HRM, its purpose and how it is applicable in
workforce planning. Strengths and weakness of recruitment and selection process used by
company is also identified and benefits of various HR practices is highlighted in the report.
Further report also states the effectiveness of HR practices and how it is useful in raising profits
of organisation, how employee relation is influencing decisions of HRM. Lastly report emphasis
on employee legislation act, how it has impacted on decision making of HR (Noe and et.al.,
2017).
LO1
P1) Purpose of HRM function, importance for organization
Human resource management is an essential part of organization. It is responsible for recruiting,
hiring, staffing, selecting, conflict resolution, reward management, performance appraisal etc.
HR manager of company distributes resources equally in the firm in order to achieve goals
effectively and efficiently. HR manager plan, directs and control the employees and solve their
needs so that they are satisfied (Bello‐Pintado, 2015). There are various functions of human
resource which are as follows:
There are two types of functions that is operative and managerial functions-
Managerial functions
Planning: It is one of the primary function, HR of DCSL software company performs
this function and decide the number and kind of employees required in the organization.
The main purpose of this function is to collect the available data, analyze and identify
future needs. It is beneficial for the company to plan the business activities and distribute
all the resources so that objective is achieved. HR plan all the benefits given to employee,
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how to motivate them so that they retain in the firm for long period (John and Taylor,
2016).
Organizing-
After the leaders of the company complete the aspect of planning they need to work on the
structure of the company so that they can meet up with the demand and successfully complete
their operations. It involves the grouping of activity related to personnel and their positions,
assigning different individuals different activities, delegate the power according to the potential
of the task and the involvement of responsibilities and in last coordinating the activity of every
person in the company.
Directing-
HR of DCSL can implement the plans on the basis of the motivation level of the employees. This
function encourages the employees in the company so that they can achieve the goals of the
organization. The HRM can encourage them and boost the morale of the people by increasing
their salary or fulfilling their safety needs such as providing them with medical and health
insurance and the welfare for them.
Controlling-
This aspect helps the company to regulate their the plans so that the company can achieve their
objectives. It is the fourth part of this function and helps the company to correct their deviations.
Apart from this measures such as evaluation and controlling of performance, audit, appraisals
etc.
Operative Functions
Recruitment: It is an essential function where candidates are hired to perform the given
jobs. The main purpose of recruitment is to bring right pool of candidates who are
capable to achieve organizations goal. HR of DCSL software company bring right
candidate and select them on the basis of skills requires to complete the job offered
(Brown, 2019). Recruitment function is important for DCSL software to recruit best
talent with qualified skills and evaluate the candidate whether they have capacity to do
the job.
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Performance appraisal: The purpose of this function is to evaluate the performance of
employees. Employees are evaluated on the basis of their performance in the given job
and their overall contribution in completing the given task. HR of DCSL software
evaluate the performance of employees by comparing actual performance with the
expected performance. It is beneficial for company in identifying the skilled employees
(Meijerink, Bondarouk and Lepak, 2016).
Training and development: It is the most important function for HR manager. HR
provides training sessions so that employees acquire skills and knowledge which is
beneficial in performing their job effectively and efficiently. The main purpose of
providing training is to enhance knowledge and skills of employees so that they perform
their work effectively. DCSL software HR managers also provides training and
development sessions to their employees so that they learn new strategies and ideas
which will help them in innovating products (Reiche And et.al., 2016).
DCSL software is facing certain issues such as the company is growing their employee
turnover is increasing, there is poor quality of their products. Company want to increase its
market share in future which requires skilled employees. Firm need to hire new candidates.
Hard Skills-
These abilities are learned with a lot of hard work, practice and education. These are
important because they increase the level of productivity and improve the satisfaction to them.
Soft Skills-
These skills are considered as qualities and traits that makes someone a good member of
the team or a good employee.
P2) Strength and weakness of recruitment and selection process
Best Fit approach: It makes sure that strategies of HR are being formed properly and it is also
implemented in order to make organizational environment better.
Strength
It makes organizational culture better and this approach also helps employees in increasing their
efficiency.
Weakness
This type of approach may create miss-communication in department which can affect
organizational growth.
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Best Practice approach: It can be defined as that approach which can be implemented in
organization in order to achieve goals and objectives on time.
Strength:
This practice enhances employee’s ability and it helps them in achieving their goals and
objectives on timely basis.
Weakness:
This method may not beneficial in short run, it can hamper working of firm in short run. So by
thinking about future organization needs to lay emphasis on it.
Selection:
Selection is a process of selecting right candidate for right job. It involves various steps
which candidate need to pass. If the candidate fails one of the step than an individual is
disqualified from the selection process. DCSL software uses 2 methods of selection such as
aptitude test and informal interview.
Aptitude test: It is the most common method to select employees. It helps organization
in measuring the suitability of candidate for the job profile. This test includes reasoning,
English and Math (Valeau and Paillé, 2017).
Strengths Weakness
It helps in finding actual
knowledge of the candidate.
The actual qualification of the
candidate is known.
It is a time consuming process.
This method does not determine
actual capability of the candidate.
Informal interview: It takes place over a casual lunch or coffee. The aim of
interview is same. It is also used in selection of job applications. Interviewer
investigate the candidate by collecting all the important information.
Strengths Weakness
It is flexible and interactive process.
It reduces the communication gap and
interviewee feels comfortable.
It is a costly process.
It may create a negative impact about
organization.
improvement for selection process
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It is very necessary to select the right candidate for the right position because of the
reason that it is the employees who work for the company and they are the reason behind the
success of the company (Chilton, Masur and Rozema, 2019). The existing selection process of
DCSL software is not that effective and efficient in hiring and recruiting talented employees
within the business. So for improving this the company needs to improve its selection process.
The two improvements which DCSL software can use to improvise its selection process are as
follows-
Competency Based Interview (CBI)- it is a type of interview which is a structured type
of interview wherein the interviewer designs the questionnaire in such a way that with the
answers of these questions the hidden skills and competencies are revealed. The main objective
of conducting this interview is that the result of interview helps the interviewer to decide that
whether the candidate is suitable for the particular job within DCSL software or not (John and
Taylor, 2016). Another reason behind conducting the competency based interview is that this
type of interview clearly outlines the whole behavior of the candidate as such questions are asked
relating to it only. The questions included within this type of interview are relating to the
different business situations and skills and competencies which the candidate will use within
these different situations.
Situation, Task, Action and Result (STAR)- this is yet another method of selecting the
candidate for the vacant job position. In this type of method, the company ensures that the
candidate is judged thoroughly so that it productivity and efficiency can be measured correctly. It
is a method wherein the candidate is given with a situation which it may encounter at the
workplace if given the job. Then in that situation the candidate has to think about the task which
it would have done if the candidate would have been in the real life situation (Mendes, Andrea
Lucchesi and Bresolin, 2019). Then the candidate will have to perform the action which it might
have done in the actual situation. After the action is performed then the interviewer will have to
analyze the actions performed by the candidate in the given situation. After that the interviewer
will finalize that whether the candidate have been selected for the job or not.
Benefits and Disadvantages of internal and external recruitment
Internal Recruitment
Benefits
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This method is cheaper and takes less time. Apart from this it always works in the favor
of those employees who were already working in the organization as it generates loyalty and
improve the morale of them.
Disadvantages-
It will create a lot of gap in the workforce and it can make the employees of the company
way too comfortable and this can make the culture of the organization stagnant. This type of
recruitment reduces the chances of innovation because the employees of the company feel way
more convenient.
External Recruitment-
Benefits-
It helps the company to get more ideas as new people bring new ideas with them. This
helps the company to get experienced and more knowledgeable employees in the company
which are more qualified.
Disadvantages-
New employees won't have the knowledge of the future prospects of the company. Apart
from that they won't even have the knowledge of the environment and culture of the company.
This method increases the chances of conflict between new entrants and old employees.
LO 2
P3) Benefits of DCSL software HRM practices to employees and organization
Simulation: A simulation is an approximate imitation of the operation of a process or system;
that represents its operation over time. Simulation is used in many contexts.
Coaching: In this leaders and managers of company is been engaged in giving lessons to
employees by arranging classes for them. This will support them in increasing their efficiency.
Role playing: In this managers of firm given other workers to perform a different role so that this
can enhance their productivity and efficiency.
Training and development
DCSL software is providing training and internship to graduate and that is very beneficial
to the employees and organization in following ways:
Company is giving training to the graduates on day to day roles and responsibilities for a
particular job role. 70% learning is on the job, 20% is from the managers, peers and
motors and rest 10 % training is through structured courses. This helps the company to
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make their future employees trained and make them work more effectively. In this way
interns are able to understand companies working environment (Reiche And et.al., 2016).
This training scheme also helps DCSL software to evaluate whether the trainee is having
potential as a full time employee or not. Quality interns contributes for the productivity of
the business and reduces overburden on employees by working on side projects.
This scheme helps the company to find low cost labor as full time employees. DCSL
software is having internship opportunity for all the graduates and this scheme helps them
to get training in their own field. DCSL software is also giving unpaid training to the
graduates and people join the organization due to its reputation in market (Berman and
et.al., 2019).
Interns are set free to interact with the employees and this helps the interns to get
knowledge about the work they have to perform. This also helps the managers to get
aware about the positive and negative points of the interns so that they can be trained to
work in that environment (Valeau and Paillé, 2017).
This motivates the employees to work with the firm and when these interns join as
employees they work happily and with full potential. This reduces the work of training
department as don't need to train the employees again and again as new employees were
trainees and are aware about the business operations and working environment of the
firm (Brewster and et.al., 2016).
This training scheme have helped DCSL software to get skilled and advanced employees
who can work effectively in order to achieve the targets of the firm. DCSL software is
having several trainees who work effectively for the company and also enhance their own
skills.
Working arrangements
Flexible working hours is beneficial to employees and DCSL software in following
ways:-
Flextime:- It is very important for both employees and employers to have flexible work
options. It makes the staff work effectively in daily operations of the business, and they
also retain for long period in the organization as they work with a stress free mind. This
also helps the company to increase its productivity as employees’ efficiency to complete
the tasks on time and with accuracy get increased. It becomes easy for the employees of
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DCSL software to have a balance life and this results in their good performance that
finally leads to increase in productivity of the business (DeCenzo, Robbins and Verhulst,
2016). Employees are motivated and this helps in bringing innovative ideas that can help
to finish the tasks more effectively. Having creative minds in the organization brings
competitive advantage for the firm as there is huge competition in the market. DCSL
software is also giving unpaid training to the graduates and people join the organization
due to its reputation in market This also attracts talent as many professionals want to
work in flexible working hours. That is the reason most of the people want to work with
DCSL software as the company is providing flexible working environment to their
employees (John and Taylor, 2016).
Job sharing:- It means two employees share responsibilities and this helps the
employees to keep their career on right track. It is basically part-time job that allows
employees of DCSL software to give time for family responsibilities also. DCSL
software is also giving work from home opportunity and this new way of working have
influenced many employees to work effectively. This also gives freedom to employees to
take their work at home and work with focus in submission of the tasks. For the same
employees are provided laptops so that they can work remotely (Cascio, 2015).
Compressed workweek arrangements:- This arrangement allow employee work 40 hours
in less than 5 days. These gives advantage to employees as they can have extra day off
and this arrangement have resulted in higher productivity in DCSL software. Employees
can work stress free and are able to give time to their family and personal life also
(Meijerink, Bondarouk and Lepak, 2016).
Reward management
This is another HRM practice in which DCSL software provides attractive pay to its
valuable employees, it fulfills their needs and encourage them. This motivation retain staff
which helps employers in raising productivity.
Strength of Best Fit-
It helps the company to set the direction and follow the priorities. It promotes active
learning and helps the company to learn from the success of their competitors.
Weakness of Best Fit-
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This method takes a lot of time which gives the competitors of DCSL to formulate a new
strategy.
Instructor Led Training-
It is a type of classroom training and can be learned online with a group. It also includes the
aspects of on the job coaching and on the line training.
Advantages-
It can be revised and developed easily.
It can facilitate contact on the basis of face to face which helps to save the cost of traveling
and transfer the knowledge in an effective manner.
Disadvantages-
In this method scheduling is difficult and the content differs in class to class. On line training
requires electronic equipment which requires huge amount of investment by the company.
P4 Benefits of HRM practices in increasing productivity and profit of business
Reward and payments is the most essential HR activity, DCSL provides incentives to
people to motivate people. DCSL software is having a highly motivated environment where
every professional want to work. To motivate their employees company is giving job roles
according to their ability to work. Following are the ways in which company is motivating their
employees: Company is giving attention to each and every employee and making them feel that
they are valuable resource for the organization. Communication between the Employees and
employer is very effective so that if employees are having any issue with the job role than they
can take help of managers. This helps in increasing there working efficiency and they feel
comfortable with their job role (DeCenzo, Robbins and Verhulst, 2016). Company is giving
rewards to employees so that they get motivated to work more effectively and with high
efficiency. For the same DCSL software gives promotions and recognition to the employees who
are excellent in their job role. This encourage them and make them more productive. This also
gives freedom to employees to take their work at home and work with focus in submission of the
tasks. This rewards fulfil their needs and they become loyal and give best services to consumers
which aid business in increasing product selling in the firm.
Training and development is another effective HRM practice, company gives training to
staff to raise their technical skill which make them more productive and they make less mistakes
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which reduces cost of business unit. Managers of DCSL software involve their employees in
decision-making process and this motivates the employees to come up with creative minds and
make the problem solve. A proper training and development is there so that skills of employees
can be developed according to the job role. This help in raising profit of the firm and attracting
more corporate consumers towards the business (Reiche And et.al., 2016).
Recruitment is the major HR function in which company attract people by using external
recruitment sources. through DCSL software also provides job description so that employees
can understand their job role and their purpose in the organization get fulfilled. Company is
taking feedback and suggestions from the employee’s time to time so that employees can suggest
the managers to make improvement in workforce. Company not only motivates the employees
but also helps them to achieve their goals on time. Employees in DCSL software play games
called pirate power that is a team based activity and this helps the employees to run their creative
minds and work in team. This creates the great environmental and people become more
productive (Valeau and Paillé, 2017).
LO 3
P5 employee engagement and its importance in effective employee relation in DCSL software
Employee engagement is concerned with improving relationships between the
workforces of the organization (Meijerink, Bondarouk and Lepak, 2016). This is done basically
to improve their efficiency, reduce turnover and absent ism and to achieve more profits for the
company. It is a psychological aspect and it aims towards maximizing the productivity of
employees so that they feel confident and happy about their position and the job assigned to
them.
Employee engagement not only helps the company in maximizing their profits but also
helps them to overcome their competition and become market leaders.
DCSL software is an American multinational company that deals in technology, software
and hardware development. It is counted among the most valuable companies in the world. The
MNC employs more than 140000 employees around the globe therefore it is imperative for them
to take care of their employees and to retain them in order to achieve cost advantages (John and
Taylor, 2016).
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