Human Resource Management Practices in Kingfisher Plc

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Human Resource Management
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TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1 (LO1: P1, P2, M1, M2)........................................................................................................2
1. Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing in Kingfisher Plc........................................................................................................2
2 Explain the strengths and weaknesses of different approaches to recruitment and selection...4
Task 2 (LO2: P3, P4, M3)...............................................................................................................7
3. Explain the benefits of different HRM practices within an organization for both the
employer and employee...............................................................................................................7
4. Evaluate the effectiveness of different HRM practices in terms of raising organizational
profit and productivity.................................................................................................................8
Task 3 (LO3: P5, P6, M4, P7, M5)..................................................................................................9
5. Analyze the importance of employee relations in respect to influencing HRM decision-
making.........................................................................................................................................9
6. Identify the key elements of employment legislation and the impact it has upon HRM
decision-making.........................................................................................................................10
7. Illustrate the application of HRM practices in a work-related context, using specific
examples....................................................................................................................................11
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
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LIST OF FIGURE
Figure 1: Approaches to recruitment...............................................................................................4
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LIST OF TABLES
Table 1: Job Specification of HR Assistant...................................................................................12
Table 2: CV for the student...........................................................................................................12
Table 3: Job Offer..........................................................................................................................14
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Introduction
Human resource management (HRM) has major responsibility for handling the employees of the
organization appropriately so that business can gain a competitive advantage in the market. It
undertakes various functions for various purposes to attain various benefits. In addition to this,
the report will highlight the strengths and weakness of recruitment methods utilised by
Kingfisher that operates as a multinational retailing organization. HRM practices are beneficial
for both employee and employer which will be discussed in the report. Further, topics like
employee relation, employment legislation as well as the application of HRM practices will be
also be highlighted in the report.
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Task 1 (LO1: P1, P2, M1, M2)
Introduction
Human resource management undertakes various functions for fulfilling some specific purposes.
One of its major responsibilities is to identify the human resource needs in the organization and
fulfilling it’s by undertaking the process of recruitment and selection. In addition to this, the
formulation of reward policies as well as other strategies is undertaken by HRM for providing
the overall motivation to the employees.
1. Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing in Kingfisher Plc
Human resource management is the organizational function that contribute towards handling of
issues of employees that includes performance management, wellness benefits, communication,
training, compensation, administration, and many more (Noe, et al., 2017). Kingfisher Plc is a
large scale organization and for the management of employees, it undertakes various functions
with the purpose of maximizing productivity by effective optimization of employees. Some of
the HRM functions are as follows:
Legal Responsibilities: HRM is highly responsible for interpreting employment laws that include
equal employment opportunities, wages and benefits and likewise. It also focuses on
investigating complaints regarding discrimination, and harassment at the workplace.
Recruitment and selection: HRM of Kingfisher Plc is responsible for hiring skilled and capable
candidates so that business can grow by bringing innovative products and services to attain
higher customer satisfaction. In this context, it undertakes a number of assessment test to match
the skills and business needs.
Training: HRM coordinates with manager of the different department so that training needs can
be identified. It conducts training programmers so that lacking areas of the employees can be
improved which can further contribute towards attainment of business goals and objectives.
In addition to this, HRM of Kingfisher relies on utilizing approaches namely best fit and best
practice approaches. Best Practice approaches related to development of HRM policies based on
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business strategies. Such type of approaches is beneficial for the organization to gain competitive
advantage. Best fit approaches have higher focus over satisfaction of employees by providing
rewards and appropriate training and development (Sherrie Scott, 2018).
HRM also adopts the practices as per hard and soft models. Hard HRM serves employees as a
business resource. Kingfisher Plc as per this model identifies the needs of employees and
undertakes the function of recruitment as per the business needs. For example, it provides
rewards to its employees as per their behaviour. Soft HRM model considers employees as one of
the important resources and therefore they contribute towards success of the organization. HRM
assigns responsibility to the workforce after identifying their abilities so that they are motivated
to complete the assigned task with interest and efficiency. For instance, employees are
motivated, and rewards are based on their performance.
HRM of Kingfisher Plc is also responsible for undertaking the responsibility of workforce
planning that deals with forecasting future needs of labor market. Labour market supports
connecting employer and candidates seeking for a job so that they can bargain for wages and
labour. The willingness of a candidate to work with specific organization depends upon the
salary provided by the employer (De Bruecker et.al.2015). HRM undertakes function of
recruitment and selection by identifying current market trends and other internal and external
factors identified using PESTEL analysis that consider factors such as government and trade
policies, disposal economies, unemployment rates, population growth, technological
advancement, environmental changes, and legal related to discrimination, employment, etc. in
addition to this, HRM is also responsible for analyzing the turnover by identifying current
number of employees as well as number of terminated or past employees.
Therefore it has been identified that with the help of appropriate workforce planning, HRM
undertakes the functions of recruitment and selection in an effective manner that contribute
towards attaining talent and skills so that business goals and objectives can be fulfilled. Labour
market analysis will support identifying the supply and demand in the market so that the process
for attracting labour can be formulated accordingly.
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2 Explain the strengths and weaknesses of different approaches to recruitment and
selection.
The process of recruitment is to encourage and locate potential candidates to apply for new job
openings. Kingfisher Plc adopts internal and external approaches to recruitment as per the
demand and need of the vacant position.
Figure 1: Approaches to recruitment
(Source: SHMA, 2013)
Internal recruitment fills the vacant position by providing employment opportunities to existing
employees of the organization with the help of transfer, promotion, etc. However, the method has
its benefits along with disadvantages for the organization which is as follows:
Strengths: When the organization selects the employee from within the business for the new job
position, it has a complete idea about their skills, behaviour, potential and other factors.
Employee is also familiar with the working culture of the organization and therefore the need for
training such as induction programmers can be eliminated which provided cost and time benefits.
Employees who are promoted to a higher position generally exhibit their better performance
because of their increased morale (SHMA, 2013). Other employees also work hard in the hope of
promotions and better job opportunities. HR process that includes more paperwork will be
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reduces related to insurance, employment contract, etc. The new employee can easily equip with
new role without putting much efforts.
Weakness: The process limits the pool of candidates, and therefore the organization can
experience the disadvantage of lack of new ideas to the business. Such type of recruitment is
unacceptable for some of the employees which negatively influence their morale, and the
situation employee turnover may arise. It creates one more vacancy that needs to be fulfilled and
therefore overall cost of recruitment increases.
External recruitment: The process includes hiring of suitable applicant from outside the
organization with the help of advertising, recruitment agencies, and other methods.
Strengths: The process support is bringing new ideas with the help of skilled candidates so that
Kingfisher can gain a competitive advantage in the market. It gains the benefit of a larger pool of
candidates so that it becomes easy to find the more skilled candidate with wider experience.
Weakness: External Recruitment is a longer process and is costly as compared to internal
recruitment process. It includes cost of interviews, advertising, filtering and many other
processes (Farndale et.al.2018). The risk factor is also high and is difficult to identify that
selected candidate will understand the business needs or not.
Methods of Selection
Selection is the process to identify the best and potential candidates for attaining organizational
benefits. Approaches adopted by Kingfisher Plc are as follows:
Online screening: The process supports filtering out candidates based on their experience, skills
and credential.
Structured interviews: It includes interaction of candidate with higher authorities of the
organization so that confidence of employees can be identified (Goldstein et.al.2017). Lack of
attention of interviewer puts negative influence on decision making of selection of employees.
Strengths and weakness of the process can be defined in terms of reliability and validity.
Selection process minimizes time consumption and also reduces the cost. Therefore selection
technique can be determined.
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Conclusion
From the above task, it has been identified that human resource management plays an important
role in managing the employees. Strengths and weakness of recruitment and selection have been
assessed for identifying the best method of gaining skilled candidates. Hard and soft HRM; Best
practice and best fit approaches have been proved to be successful in managing the efficiency of
the employees.
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Task 2 (LO2: P3, P4, M3)
Introduction
Human resource management contributes largely to the success of the business organization. A
number of HRM practices such as training and development, reward and performance
management is beneficial for both employee and employer. The organization will, therefore,
apply appropriate techniques so that organization can raise its productivity and profitability.
3. Explain the benefits of different HRM practices within an organization for both the
employer and employee.
HRM of Kingfisher undertakes various practices which is beneficial for both employee and
employer. It undertakes training and development practices for enhancing the skills of
employees that can successfully contribute towards attainment of business goals and objectives.
Training is a short term process that supports improving skills for accomplishing a specific task.
Development, on the other hand, supports development of interpersonal skills so that future goals
can be attained (Tzabbar, et. al., 2017). There is two types of training undertaken by Kingfisher
such as on the job training and off the job training. On the Job Training encourages employees to
learn skills by actual performing activities at the workplace. It includes apprentice training,
Informal learning, and Audio-visual based training. Off the job training encourages learning
outside the workplace or organization. It includes a case study method, role-playing, etc.
HRM of Kingfisher Plc also adopts various types of payment and reward system that includes
financial and non-financial reward systems. Financial rewards include bonuses, share, salary,
pensions, etc. for enhancing the overall motivation of employees. Non-Financial Rewards
includes promotion, job enrichment, job recognition, etc. so that employees are motivated to
work towards defined goals and objectives (Shin and Konrad, 2017). In addition to this, the
organization focuses on performance monitoring of employees by applying techniques such as
self-appraisal where employees are given with a list of questions to assess their own skills and
level of performance.
Both the practices are beneficial in developing the positive behaviour of employees and also
support enhancing the knowledge of employees. Payment and reward system motivates
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employees to work hard to attain organizational goals and objectives. Therefore it can be
concluded that HRM practices enhance the interests of employees towards their job which
further contribute towards organizational benefits in terms of productivity and profitability.
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