Human Resource Management Restructuring Report: McLaren Group

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HUMAN RESOURCE MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................................3
OVERVIEW OF THE ORGANIZATION............................................................................................................4
LO1..............................................................................................................................................................5
Internal recruitment............................................................................................................................9
L02.............................................................................................................................................................12
L03.............................................................................................................................................................15
LO4............................................................................................................................................................19
CONCLUSION.............................................................................................................................................24
REFERENCES..............................................................................................................................................25
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INTRODUCTION
This review report is prepared to restructure the human resource management department of
a chosen organization as a part of structural transformation. Human resource (employee,
employer, consumer, etc.) is the most valuable part of any organization and its functions and
management play an important role in the overall growth of the business unit. Restructuring is
a crucial part to adopt the changes in the business environment profitably. The future prospect
of any business unit depends on the fact that how effectively an organization manages its HR
activities. HRM activities are very important for an organization to increase efficiency and bring
productivity to of outcomes. Human resource management is all about upgrading the
performance of its employees in order to maximize revenue generation (Darren Perucci, 2018).
This review report will study in detail the roles and responsibilities associated with the human
resource management segment of any organization and how it affects the business operations
in terms of profit. The profit margin tends to rise if the selection and recruitment and the
management of potential works have been conducted effectively. This report will critically
evaluate the HRM of the McLaren group and suggest possible changes to accommodate the
dynamic business environment. This report, in the end, will evaluate the procedure undertaken
to choose the desired candidate and the logic behind it (Shin and Konrad, 2017).
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OVERVIEW OF THE ORGANIZATION
McLaren Group is a UK based conglomerate founded in 1985 with the aim to offer the best
formula one car globally. With time it has expanded its business operations into precision
manufacturing and other types of manufacturing. It also exploring possibilities of business in
the renewable energy sector and applied technologies. It is also committed to research and
exploration in manufacturing and other engineering practices in order to offer the most
technologically advanced solutions to the world.
McLaren gives importance to research and development for offering the technologically
advanced products and services to its consumers. Their investments in innovation have created
a brand name and worth for it and help it become one of the leading organizations in its
domain (McLaren Group, 2019).
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LO1
Humane Resource Management can be explained as the management of any organization all
stakeholders effectively and profitably. It requires managing the complete process of selecting,
recruiting, managing the personnel in order to bring efficiency and productivity. Different
training and development modules are also part of the skills enhancement of employees for
output generation. This process of human resource management includes planning, organizing
and assessing the complete employee management cycle proactively (Darren Perucci, 2018).
The human resource management of the McLaren group is acknowledged for its efficiency in
formulating and managing the strategies and procedures. It offers a flexible, transparent and
competitive environment for its employees. It also manages its business relationship amicably
(McLaren Group, 2019).
PURPOSE OF HRM
Human resource management is the foundation of any business process and it is responsible
for devising the policies and procedures for current and future needs of an organization. It also
aims to improve the output generation of any business entity.
Planning and Development: the development of skills and enhancement in employee’s
performance can be achieved by adopting an appropriate measure to reduce the gap between
the level of performance required and offered. Devising a strategy for skilling and reskilling of
employees helps in effective business execution.
Consolidating: the HR department of any business entity is responsible for crafting and
consolidating the business objectives for any organization. And also ensures organizing the
tasks and roles assigned to an individual and a group of employees (Cassar and Bezzina, 2017).
Guiding: the business policies and frameworks are designed by the HR department after the
keen observation of market dynamics by the market forces. The business prospects are to be
designed carefully and the direction of business performance and the performance of
employees should be aligned with the very goals of the business (McLaren Healthcare, 2019).
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Governing: the human resource department is responsible for monitoring the level of
performance of the business and also suggests effective measures for improvement. It is
responsible for preparing several appraisal reports to monitor the performance of employees
and sending feedback along with the suggestion to the supervisors and top leadership (Shin and
Konrad, 2017).
KEY ROLES AND RESPONSIBILITY OF HRM
The roles and responsibilities of HRM are centered on improving the performance in order to
generate the maximum benefit for an organization. It is about employing people, procuring
their services and motivating them to reach their maximum possible potential to fulfill their
commitment towards the company.
The roles and responsibilities are as follows:
Recruitment and Selection: recruitment is a process of appealing, screening and selecting the
most eligible and qualified employees for the given job role. The process of recruitment should
be followed by preparing an effective job description for the available opportunity. Recruitment
and selection is a screening exercise before hiring in order to reduce the cost and time of the
organization by discouraging the incompetent candidates (Cassar and Bezzina, 2017).
Orientation: Many organizations do not offer orientation to their new employees in order to
help them to understand their job roles and position of the organization they are working for.
But if it is conducted properly then help the new employees to adjust easily.
Sustaining decent working surroundings: offering and maintaining decent working conditions
to the employees so as to make them like the organization and gain loyalty from them. Such
conditions involve open, equitable and transparent work-environment (Gold and Rees, 2018).
Managing employee relations: The HR department acts as a bridge between the employees
and the senior leadership. Crating healthy and friendly relations between the employee and
employer is a key to success for any business venture (McLaren Healthcare, 2019).
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Training and development: T&D includes offering opportunities to improve the skill set and
gain further qualifications through various learning programs offered by the company.
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THE HR FUNCTIONS TO FULFILL BUSINESS OBJECTIVES
McLaren group is acknowledged for proving good working conditions and sustaining good
relationships and job satisfaction with its employees. The following are the HR functions
performed by the HR segment of McLaren with the aim to improve business prospects:
Recruitment and selection: McLaren adopted a very specifically devised strategy to hire new
employees for future business operations. The complete process is simple, transparent and
there is a free flow of information (McLaren Healthcare, 2019).
Payroll and attendance: as of data available more than 3000 employees are working with
McLaren and their payroll and attendance is management with the help of software. And the
finance department in coordination with the human resource department manages the salary
and related transfers very well.
Legal compliance: there are various laws related to employees for better working conditions,
equal pay for equal work, payroll, tax, and other laws. And McLaren abides by all legal norms
and regulatory mechanisms (Gold and Rees, 2018).
Employee retention: McLaren is famously known for its high employee retention ratio due to
offering better working conditions for its employees. There are also various growth
opportunities as well as companies tilt towards R&D encourages employees to enhance their
leanings.
Employee satisfaction: the McLaren group offers quality services to its employees and ensures
the best working culture for them and it helps in proving the satisfaction to its employees. As
per the online survey, more than 85% of employees are happy to work with McLaren Group
(MSG, 2019).
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THE STRENGTHS AND WEAKNESSES OF DIFFERENT APPROACHES TO RECRUITMENT AND
SELECTION
Recruitment is a process of hiring the talent and most qualified employees for the organization.
It is done in order to expand the business and maintain the competency of the business unit.
There are different types of recruitment: internal recruitment and external recruitment.
Internal recruitment
Internal recruitment can be defined as offering the job role to the employees of an
organization. It takes place within or outside the department. This method of recruitment has
mixed outcomes for an organization as:
Positives of internal recruitment:
 It is cost-effective and it can sometimes be done instantly.
 It consumes relatively less time as there is no need to publish any job posting on various
platforms for inviting the best talent for an organization.
 It is very effective in case of urgent requirement.
 It helps in Improving loyalty and trust between the employee and employer (Noe et al.,
2017).
Negatives of internal recruitment:
 It reduces the chances of fresh talent’s entry into the workforce.
 It discourages and demotivates the departmental managers.
 It can create a vacancy.
 It can lead to restricting the entry of talented candidates outside.
 It can lead to a lack of dynamism in the work culture of an organization.
 It can also give rise to cronyism and the organization will be crowded with less tented
employee pool (Reader et al., 2017).
External recruitment
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In this type of recruitment, candidates are selected from outside the organization. The job
postings and other jobs related process takes places with the help of various modes of
communications as online and offline advertisement, publishing job description on job portals,
taking references from employees, etc. (Cassar and Bezzina, 2017).
Positives of external recruitment:
 It helps in creating the database of talent candidates for current and future
requirements.
 The entrance of new candidates brings new opportunities for the organization as well.
 It helps the organization in gaining a competitive edge in the market.
 It is a very just and neutral process.
 It instills the competitive spirit in the available talent pool as the arrival of new and
intelligent brains invites competition for them (Noe et al., 2017)
Negatives of external recruitment
 It is a costly and time-consuming process as it involves vacancy publication other
charges.
 The process of external recruitment requires training and development modules for the
fresh employees and it can be tedious sometimes.
 It discourages the current employees if they are looking for an internal job change.
 Sometimes the new candidates find it difficult to adjust to the new work environment
and it may impact their productivity (Reader et al., 2017).
As we have discussed the strength and weaknesses of different types of recruitment
procedures. Both types of selection and recruitment are an integral part of the recruitment
process and the key role of HR managers. Here, it can also be illustrated by taking the real-life
situation of McLaren Group (McLaren Healthcare, 2019).
McLaren group adopted both the methods of recruitment in a good proportion. It gives
opportunities to both internal and external pools of talent as per the need of an organization.
The type of recruitment depends on the requirement of a number of employees, whether that
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demand is immediate or not? Or the budget available with the company etc. the organization
like McLaren chose external recruitment when they have massive vacant positions available.
And if they have less number of positions they internal job postings suits the need. Internal job
postings limit the choice available for the vacant position and also limit the scope of entry of
new and novel ideas (Gold and Rees, 2018).
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L02
DIFFERENT HRM PRACTICES AND THEIR BENEFITS
The human resource management system comprises of training and development, payroll, time
and attendance, etc. the key elements of the human resource management system help in
administrating various business operations efficiently. This different HRM practice helps in
recruitment and selection of talent pool for various job roles. It also helps in managing as well
as retaining the talent pool in the organization. Various HRM practices along there evaluation
are as follows (Joy, 2018).
Training and development modules: These sessions are conducted with the purpose of offering
the best learning opportunities for existing and new employees. They can be both long-term
and short-term depends on the need.it can comprehensively be called a learning management
system that helps the HR to track the skills, abilities, qualification and learning outcome of
employees which in turn helps in performance evaluation (Dianna L. Stone, 2015).
HR Management Information System: the human resource management information system is
a tool used by the HR managers to store demographic, educational, personal and other details
of employees in single platforms. During the time of recruitment, HR managers are flooded with
new candidate's data and such tools help them to filter and store the relevant data for present
and future use (Noe et al., 2017).
Organization: The organization segment of the HRM system involves the collection and
organization of data related to the company, its structure, policies and procedures, induction
and termination, etc. details. The collection of such data helps in decision making and
formulation of employee-centric policies (Joy, 2018).
Time and attendance: the time and attendance segment of HRM helps in pursuing and unifying
the time-related processes with the help of a single tool. It helps the organization to manage
the employee related data with ease and as per need. Automation of this process saves lots of
time and effort of the HR manager. It also helps in the fast retrieval of data in case of an
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