Comprehensive Human Resource Management Report for People Solutions

This report analyzes the Human Resource Management (HRM) practices for People Solutions, a fictitious small business consultancy firm in the UK. It begins by differentiating between personnel management and HRM, emphasizing the need for People Solutions to adopt an HRM approach. The report then evaluates key HRM functions, including managerial, operational, and advisory roles, and analyzes the roles and responsibilities of an HR manager within the firm. It explores the legal and regulatory aspects of setting up an HR function, highlighting their impact on employee trust and ethical business practices. Furthermore, the report examines the significance of HR planning, recruitment and selection processes, motivational theories, reward systems, job evaluation, employee turnover, exit interviews, and the impact of legal frameworks on employment cessation. The analysis provides insights into how People Solutions can optimize its HRM strategies to achieve its business objectives and navigate the competitive market effectively.

MANAGING HUMAN
RESOURCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
Analysing the difference between personnel management and human resource management
for People Solutions....................................................................................................................1
Evaluating the human resource management functions which can be implemented in People
Solutions......................................................................................................................................3
Analysing the roles and responsibilities of HR manager for People Solutions..........................3
Legal and regulatory aspects considered for setting up the HR function for the company........4
Analysing the impact of human resource planning in People solutions.....................................5
Comparing the recruitment and selection process in People Solutions and Accenture..............6
Analysing the link between motivational theories and reward systems for HR solutions..........7
Significance of job evaluation for the business...........................................................................8
Analysing different reward systems in different business units for employee performance......8
Evaluating the reasons for employee turnover and seeking effective measures to minimize the
same...........................................................................................................................................10
Types of exit interviews and their usefulness...........................................................................11
Analysing the impact of legal and regulatory framework on employment cessation
arrangement...............................................................................................................................11
CONCLUSION..............................................................................................................................12

INTRODUCTION
Human resource management is the crucial and most significant part of the business
management and development in the present market scenario. Employees in the present
conceptual era plays a significant role in the growth and development of the business unit.
Modern business operations define the human resource as the asset of the company which help in
analysing the business objectives and working effectively to attain the same (Iles, Almhedie and
Baruch, 2012). Global business expansion and increasing diversity in business operations have
demanded companies in adopting effective and well defined means of HR functions to manage
and maintain the working environment for the company and enhance effective policies for
working.
The present study will focus on analysing the business operations of 'People Solutions'
(fictitious firm) which is a small business consultancy firm proving HR consultancy services in
the UK market. The study will develop an in-depth understanding about the business operations
and HR functions that the company must adopt for attaining high and favourable business
objectives. The research will be a well defined approach to examine and analyse the impact of
legal and regulatory framework on different HR functions for the business.
Analysing the difference between personnel management and human resource management for
People Solutions
The present case mentions that People solution is a small business consultancy firm
which is seeking effective advise for managing the HR operations in the business. The company
initially need to understand the difference between personnel management and human resource
management to analyse the effective approach for application in the business.
BASIS Personnel management Human resource management
Nature It is an approach which remains
aloof from the entire business
operations and focuses on carrying
out the administrative operations for
the business unit (HRM Vs
Personnel Management, 2014).
It is an integrated business approach
which focuses on analysing the
business objectives and employees
needs individually and develop
integrated business solutions to
attain them collectively
Scope It develops policies, procedures and It stabilizes the policies and

documentation for the business
operations in order to attain the
specifies business results for the
company (Rodriguez and et.al.,
2014)
regulations of the business while
analysing the employee needs and
preferences. HRM develop
strategies for employee growth and
development
Functions It focuses on traditional functions of
documentations, recording,
monitoring, controlling and planning
while focusing as per the business
objectives
The overall HR functions including
planning, organizing, staffing,
directing and controlling are carried
out by the department to attain the
mutual objectives of employees and
business.
Approach Rigid policies and procedures which
is limited to the predefines rules and
policies of the business.
Flexible approach adopted while
analysing the employee needs and
demands to stabilize business
objectives and attain high business
growth in the market
Impact Monotony, high control, effective
monitoring proper records and
reports, low communication, low
employee morale
Integrated business objectives,
mutual goals, high motivation, open
communication and well developed
growth
The above analysis develop an in-depth understanding of the concept of personnel
management and human resource management. The above distinction in the functions clearly
defines that the approach adopted by the firm 'People solutions' is traditional and not affluent for
the present business needs. The company must adopt human resource management approach to
attain the business objectives and enhance high growth of the business in the market. The
argument that the business operations are small for the cited firm will be resolved by analysing
that developing effective HR department will help the business unit in analysing individual
needs of employees and also effective delegation of responsibilities will help in attaining
business objectives in well defines manner (Kooij and eta.l., 2014).

Evaluating the human resource management functions which can be implemented in People
Solutions
Human resource management is an organised business approach which helps the business
unit in analysing the organizational objectives and developing effective solutions for the same by
adopting people approach. As per the present case HR functions for the business operations of
People solutions is significant. The company must adopt the following categorization for
attaining well defined business objectives: Managerial functions: This is one of the most signifiant part of the HR function which
focuses on analysing and understanding the business needs and demands and develop the
business policies accordingly. These are the primary function of Human resources which
deals with the process of planning, organizing, directing and controlling. These functions
of HR focus on developing an effective base for operating the business operations and
attaining high organizational results. These functions of the department develops a
strategic base for business operations of the company (Varma and Budhwar, 2013). Operational functions: The human resource functions are not limited to the strategic
level planning and monitoring. The department carries out the day to day activities for
developing a balance between the business and employee needs while carrying out the
regular business operations. People solution will have to analyse the regular need of the
business regarding recruitment, selection, motivation, training, development etc.
Decisions regarding policy implementations, employee development and employee
motivation are undertaken by the HR supervisors. They bridge the gap between planning
and execution for the employees.
 Advisory functions: These functions for the people solutions are crucial as human
resource does not merely operate and meet the employee demands. The HR department
of the company will need to analyse the individual needs of the employees and effective
solutions to attain the same (Armstrong and Taylor, 2014). These functions of the
business will focus on understanding the employee problems and successfully resolving
the same by stating proper policies or strategies for the same.
Analysing the roles and responsibilities of HR manager for People Solutions
As per the present case People solutions is focusing on reoranizaing its HR department to
effectively structure the business actions and attain high and effective grpwth prospects for the

business. In addition to this the business operations of the company needs to be well managed
and defined as per the industry norms and requirement. As a small business consultancy firm the
roles and responsibilities of the HR manager of the company will be: Developing and implementing policies: The HR manager for People Solution will play a
significant role in developing organizational policies and measures for the growth and
development of the staff. These policies will integrate the business objectives in order to
communicate the business objectives for the employees. The business consultancy is a
service sector unit thus the role of HR manager will be to analyse the industry norms and
develop business policies as per the industry norms (Ulrich, 2013). Moreover, the HR
manager will focus on analysing the overall employee performance for the business to
plan and develop the future growth and development aspects of the business unit. Hence,
this function will focus on developing organizational standards and benchmarks for
communicating the organizational expectations to the employees. Employee development planning: HR roles focuses on analysing the employee
development measures for the business unit as well. Employee performance monitoring is
crucial for the business growth and development as they are the source of organizational
growth. People Solution will have to analyse the development needs and demands for the
staff to plan the development strategies and ascertain employee motivation in the
business. This function of the HR manager will help the company in attaining high
efficiency while enhancing the organisational culture for the business unit.
 Monitoring and controlling: The role of monitoring and controlling the HR activities for
the business is also a crucial role of HR manager. The business will focus on monitoring
the business activities closely to determine the employee contribution for the same. This
will be effective for attaining high and efficient growth aspects for the company.
Moreover, overall performance analysis will help in determining the individual
contribution in the performance of the business (Purce, 2014). This will be effective for
attaining high and effective growth and development aspects for the business unit.
Legal and regulatory aspects considered for setting up the HR function for the company
The legal and regulatory framework of the company plays a significant role in the growth
and development of the business. It helps in stabilizing the business operations and developing
policies in accordance to industry norms and standard. Regulatory framework for HR functions

helps in determining the rights and duties of the employee. It is also significant for protecting
employees from exploitation of the staff. It also helps in communicating the rights and
responsibilities of the employees in the company.
People Solutions will have to develop a strong base for legal and regulatory framework in
the company in order to develop trust and loyalty within the employees. Legal regulations such
as Employment Act 2002, Equal Pay Act, Data protection Act and National Minimum wage Act
etc will help the company in developing a fair working environment for the employees. It will
result in minimizing the cases related to employee discrimination in terms of wages,
opportunities, growth, training treatments etc (Kehoe and Wright, 2012). Moreover policies
regarding well defined working environment within minimum risk of bullying or exploitation
will be adopted for the business. These frameworks will ensure that data security and cases of
cyber crime is minimised for the business unit.
The overall impact of implementing a well defined legal and regulatory framework for
the business unit will be that it will enhance employee trust for the company. Moreover, the
organizational operations and activities will be in line with and legal guidelines. The brand
image of the business will be enhanced in the market as an effective employer which will help
the company in attaining talented workforce for the business. Furthermore, it will also result in
enhancing the ethical business practices thus minimising the occurrence of confusions regarding
code of practices (Hendry, 2012). Hence, the overall analysis of the report reflects that abiding
legal framework for the business is significant for attaining favourable business results for the
company in the present competitive market.
Analysing the impact of human resource planning in People solutions
HR planning is the process of analysing and estimating the demand of employees in the
business unit to attain high and effective business objectives for the company. Human resource
planning is one of the significant and most crucial part of the business growth and development
in the present competitive market. The industry analysis revealed that the cost of employee
replacement is high for every business unit. Moreover, cost of salary and wages constitutes fixed
business cost which cannot be minimised or controlled by the company. People Solutions need to
effectively manage and plan the HR functions for the business in order to enhance profitability
and growth of the business (Jackson, Schuler and Jiang, 2014). The impact of Human resource
planning on business operations of the company is significant it will help in forecasting the

future demand of the employees and the skills and attributes demanded for them as well. The
company thus can seek effective ways to hire and plan the recruitment process. In addition, the
process will not affect the current business operations as the employee demand will be demanded
in well advance.
Implementing HR planning for People Solutions will be highly beneficial for the business
as it will help the company in attaining the organizational purpose to create a competitive
position in the economy. Managing talented and skilled team of employees will help the business
in attaining the same (Bernardin and Wiatrowski, 2013). The stated process will also help the
company in creating wide impact on analysing the employee turnover rate for the business. It has
been analysed that HRP helps in managing the record of employees and their rate of turnover as
well. Lastly HR panning helps in managing the organizational culture for the business as well.
This will help the company in analysing the need of change and preparing the employees for the
same as well.
Comparing the recruitment and selection process in People Solutions and Accenture
The recruitment and selection process for the business plays a significant role in attaining
effective and talented team of employee for the business unit. It is a well defined measure for
enhancing the internal strength of the business thus creating high organisational standards for
working and attaining business objectives. Every business unit adopt unique recruitment and
selection process for attaining effective and well developed business objectives. The comparative
analysis of recruitment and selection process of Accenture (Large and globally established
business consultancy firm effectively operating in more that 18 countries of the world) and
People Solutions will help in attaining the effective understanding about the stated fact.
Accenture has developed an effective and well structured means of employee recruitment
and selection process. The business operations of the company are highly people oriented thus
the company demands a skilled team of employees to attain the business objectives in this
competitive market (Dusterhoff, Cunningham and MacGregor, 2014). Accenture adopts internal
and external recruitment measures to seek the competent employees for the business. Internal
recruitment such as employee reference is regarded to seek talented team of staff. External
recruitment measures for the business include advertisement, posting on job portals, online
recruitment and campus selection. This strategy help in attaining fresh talents for the business.
The overall applicants are then screened by conducting an Online aptitude test for the business.

The selected candidates then undertake a group discussion round for further screening. The
remaining applicants then undergo HR interview round, panel interview and personal interview
process. This is a long yet effective process adopted by the company to manage a strong team of
workforce for the business.
People solution however must adopt the following process for recruiting and selecting a
strong team of employees for effective business growth. The company must focus on internal
and external recruitment for seeking competent employees. Being a small firm small number of
employees will approach. Effective screening must be carried out by the HR team. The first
round of HR interview must be conducted then to analyse the employee objective and finally
selected employee must undergo PI where specialised knowledge salary negotiation will be
carried out (Espinilla and et.al., 2013).
Analysing the link between motivational theories and reward systems for HR solutions
The human resource operations has effectively analysed that reward management is one
of the most crucial part of employee motivation and growth. The impact of effective reward
system of the company help in attaining high and well defined motivational factors for the
business. Different authors has given different motivational theories which reflect a direct link of
reward on employee performance and growth in the market. Maslow need hierarchy theory helps
the business unit in effectively linking the reward management strategies with employee needs in
the present market (Grigoroudis, Tsitsiridi and Zopounidis, 2013). According to the theory the
basic needs of the employees seeks food water and shelter for making survival in the market. At
this level employee needs financial rewards and effective salary for motivation. The next level of
the theory defines employee needs for safety and security in the market. These needs of the
employee are attained by providing job safety and safe working environment to the employees.
The Social needs constitute next level of employee needs. The organization plans for team work
measures, social recognition in the firm. Strategies regarding promotions, increasing employee
responsibility etc. are adopted. The esteem needs are demanded by the higher level employees
where high recognition and respect. For this level the business has to implement the strategic
measures to attain high and effective business results for the company. This creates a wide and
effective impact on business growth and development in the market. The final stage of
motivation as per the motivation theory is self actualization stage. This stage of employee
motivation focuses on the personal goals of the employees which are effectively attained by the

employee on the individual al level (Peretz and Fried, 2012). The overall analysis of the above
report helps in reflecting that employee motivation and reward system of the business are
directly related. Reward is the major source f employee motivation thus the business unit must
effectively plan and analyse the same for the business.
Significance of job evaluation for the business
The job analysis process helps an organization in analysing the capabilities of an
individual and thus providing the equivalent remuneration against the same (Armstrong and
Taylor, 2014). It is a significant role of human resource management as it helps the business unit
in attaining high and effective business objectives for the company. In addition, this the stated
measure also helps the company in developing a well defined business result for the
organizational efficiency. People Solution is a business consultancy unit which deliver services
to its clients to attain effective business objectives. Job evaluation is a well defined measure for
organizational growth in this current competitive market. It helps the company in defining the
remuneration strategies for the business unit and attaining high level of growth and development
in the market (Mayhew, 2013).
Every business unit adopt effective and well defined means of job evaluation to attain
high and effective business results. Different strategies are adopted by the companies to attain
effective business results. Job evaluation helps the company in developing a fair and clear means
of employee performance evaluation. This approach is not subjective thus the effect of the same
is significant for the company. It helps in developing employee trust and loyalty for the business
operations as risk of biases and discrimination is minimized in the stated approach. Moreover,
adoption of the stated approach helps the company in enhancing employee morale thus reducing
the employee turnover for the business.
Analysing different reward systems in different business units for employee performance
The reward system for the business unit plays a significant role in enhancing employee
performance for the company. The impact of reward system in the business is direct on the
employee morale and satisfaction level. Every business unit implement the two basic types of
reward system in the company. These include: Financial rewards: These rewards are the basic and most crucial needs of the employees
which help the companies in attaining high level of performance and productivity. These
rewards are categorised as salary, remuneration, bonuses, allowances etc. These rewards

are short term motivators and are used to attain the targets of the business unit
(Developing a Human Resource strategy, 2014).
 Non financial rewards: These are the typical business rewards which are not attaining in
terms of money by analysing the internal needs of the employees. These rewards include
promotions, Additional responsibilities, employee recognition, working environment,
growth opportunities etc. these are effective source of long term satisfaction and business
growth as well.
Analysing the effective means of performance appraisal measures that the business could
implement to attain effective results
The cited company is presently using simple rating system with an aim to appraise the
performance of its employees. The method is effective but still presenting number of problems in
front of the manager of organisation. It is due to the presence of given aspect, two different
methods of appraising the performance of employees are suggested which cited firm could use. It
is of 360 degree feedback and checklist method.
360 degree is the method wherein performance of employees is judge on the basis of 360
degree aspects. Here, worker get feedback about its performance from employer, colleague and
peer group member. It is an effective approach as it help in giving effective feedback to the
employees regarding the performance which is being given by it during the period of time.
Besides this, the performance of cited enterprise workers can also be judged through checklist
method (Kehoe and Wright, 2013). Herein, at first thorough checklist will be prepared regarding
the task which need to be performed by employees. Hence, the right sign will be putted against
the task which is being completed by employee. Thus, the task which employees have not
accomplished will be consider as feedback regarding the performance which require
improvement. Thus, with the help of these given methods performance of the workers can be
evaluated in an effective way.
Evaluating the reasons for employee turnover and seeking effective measures to minimize the
same
Employee turnover in the business unit may take due to different reasons. Some
of the measures are controllable while others reason are not in the control of the business
(Farndale, Hope-Hailey and Kelliher, 2011). For the current scenario the possible reasons which
may result in high employee turnover for the business unit may include motivational actors,

ineffective working environment, leadership issues, internal conflicts etc (Willits, and Nowacki,
2014). In order to reduce employee turnover in the business the company may effectively
implement the following measures to manage employee retention late:
 Developing and defining the employment policies effectively for attaining high business
objectives
 Creating wide impact on employee growth and development opportunities
 Enhancing level of communication for the employees and management
 Developing well defined means of motivational strategies for the business.
 Creating effective leadership styles for the company
 developing well defined means of team management
Types of exit interviews and their usefulness
Exit interview refers to the interview which is conduct for terminating people so that they
would be able to improve their current processes of the firm. Exit interview also helpful to
reduce employee turnover and increase productivity. Conducting exit interview includes reduce
absenteeism, improve innovation and reduce litigation. There are different types of exit
interviews are as follows-
In this session employee will gives resignation letter to the HR department through
emails and after the HR manager of People solutions centres call them and discuss the reasons
behind leaving the firm.
Another type of exit interview include the notice which will be given by the employee
who separate from the organisation. Employees have to give notice to their HR department
before one month so that they clarify the reasons behind leaving (Bernardin and Wiatrowski,
2013).
Another one is to directly report to HR department so that they can find the reasons of
leaving and if they got any problem which is related to employees like misbehaviour and
absenteeism then the HR team directly terminate those employees.
Usefulness of exit interviews-
Aim of conducting exit interview is to reduce inefficiency of work as well as employee
turnover. By conducting exit interview it will help to realize the current situation of the firm and
improve them accordingly. It also helpful to sustain performance and the company should know

that where they need to change and improvement in the organisational process so that they
reduce the employee termination and achieve goals of the mentioned organisation.
Analysing the impact of legal and regulatory framework on employment cessation arrangement
For employment cessation arrangement, there are many acts imposed by the government
of UK to support employees cessation by analysing the reasons behind cessation. The
government regulates many act regarding to employee recession like training and development,
recruitment and selection process and favourable working conditions provided to employees
which the organisation have to follow.
There are following act which is regulated by the government of UK such as equal
opportunity act, discrimination act. On other hand regulatory framework defines the reasons
behind separation from organisation and they have to give notice to the authority so that they
would be able to take decisions about employee cessation. If the authority found that the
employees need training and development process then they give notice to the organisation to
conduct training and development programmes (Espinilla and et.al., 2013). According to
government of UK, if the employee leave the organisation for a reason then they notified to that
organisation to provide claims to the separated employees, they will provide claims in terms of
life insurance, fund and financial insurance to them. It helps to employees to felt reliefs from
separation from the organisation. In other words legal and regulatory framework are the rules
which beneficial for the employees and also gives a systematic approach to the organisations. If
legal authority found any fraud in the cessation of employees then they have right to take action
for that particular organisation so that they reduce the unfairness of the firms and maintain
equilibrium among employees and organisation.
CONCLUSION
Human resource management is an age old approach adopted by the business units which
has helped the companies in attaining efficient employee contribution for achieving
predetermined objectives of the company (Soublière, 2010). The human resource practices for
the business helps in analysing and understanding the individual needs and demand of the
employees and attaining effective solutions for the same. Well defined policies and procedures
for employee functioning and growth is significant for developing strong organizational culture

within the business. The overall report reflects the significance of human resource in the business
unit and it impact on organizational growth and development.

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