Project Report, 2013
28 Pages, Grade: 91% (Distinction)
Human Resource Management (HRM)
Difference between Personnel Management and HRM
London Linen Supply
HR tasks helping business strategies
HR tasks hindering business strategies
Effective Line Manager Tasks
Ineffective Line Manager Tasks
Recommendations for Improvements
Human Resource Planning
HR Planning Stages
HR Planning Difficulties
Tesco’s Recruitment & Selection
Effectiveness of Tesco’s procedure
Ineffectiveness of Tesco’s procedure
Google’s Recruitment & Selection
Effectiveness of Google’s Procedure
Ineffectiveness of Google’s Procedure
Job weighting process
Factors determining pay
Skill Based Pay
This report distinguishes the types of management and assesses the HR function. Also evaluates the roles and responsibilities of line-managers and HR planning. Furthermore it will outline the stages of HR planning and comparing the recruitment and selection process. Moreover evaluate the effectiveness of recruitment and selection techniques and the link involving motivational theory. Finally evaluate the job evaluation process whilst assessing the effectiveness of reward systems to monitor staff performance.
Reddy (2004) states personnel management is the execution of actions associated with the staff function which focuses on the individuals and performances but not on the overall tactical position of the unit. Furthermore the reactive approach establishes and employs procedures that influence the phases of the employment sequence. Also Personnel Management emphasises on administrational actions for example the recruitment and selection process as well as safety and business affairs.
Furthermore Torrington, Taylor and Hall (2005) suggest personnel management prepares, arranges, compensates, incorporates and preserves the workforce to ensure that they are able to contribute towards a business’ managerial, individual and communal business aims and objectives.
Sims (2006) suggests HRM is a proactive approach that uses specific means and utilities towards the recruitment and improvement of workers as ‘human resources’ with the intention of effectiveness to meet business objectives. Moreover by offering a working environment to encourage staff to work by means of providing financial and non-monetary incentives such as wage hikes and holidays which inevitably aid in increasing productivity.
Capon (2000) says HRM judges the tactical input the workforce makes towards a business whilst being anxious with the numbers of employees needed, as well as their expertise and cost to the business. Through the utilization of skilled employees who are dedicated to their job it enables a business to gain a competitive advantage by positioning its workers tactically.
Personnel Management focuses on employee needs such as providing them adequate resources to solve problems. Personnel Management is reactive meaning deeds are not internally encouraged however are evident when replying towards a circumstance or external act. Price (2011) says HRM centres on managing staff collectively whilst building a dynamic culture to contribute towards the business’ success. HRM is proactive meaning it aspires to discovering and utilizing opportunities to execute against possible threats.
Also Köster (2007) says personnel management believes that for the production of the business to be increased by ensuring that the employees are satisfied thus they will be more productive. Whereas HRM believes that the culture of the working environment and the effectiveness of the employee using the equipment given to them they will be more work-orientated.
In addition Cole (2002) states the decision making process is different when comparing personnel and HR management. This is because as personnel management is bureaucratic all of the decisions are made the senior staff at the top-end of the hierarchy which is embedded into a business’ rules and regulation. But in HRM the decisions are made communally, meaning that management takes into account the views of the workers before making a decision which leads to a decentralized management structure.
The approach which London Linen Supply has adopted is Personnel Management.
This is based on the fact that the business uses many of the points established in Guest’s model (1987) regarding Personnel Management. The first point which London Linen uses is a bureaucratic business structure since each hierarchy level is noticeably defined with a formal approach hence employees are focused upon the task. Thus employees will be working repetitively meaning they will increase their abilities and become more productive as they develop into becoming familiar with their jobs. Furthermore Jacoby (2004) suggests with a bureaucracy the business is viewed as a ‘machine’ that has different components which require constant synchronization of resources. Hence the business will operate perfectly in stable environments since management just need to ensure that each component of the ‘machine’ is functioning; and the business will be on the path to achieving its strategic aim.
The second point is the job roles delegated are based upon the specialism of the employees rather than being integrated by line-managers thus ensuring high employee productivity as shown in figure 1. Since the workers of London Linen are specialists then they will to a certain degree be experts in their field meaning that they do not require any supervision or instructions on how to do their job which enables the employees to execute their jobs without any intervention from management. Krausert (2008) states the workers do not need to be attended to the organisation is able to use the excess funds (which would have been used to employ a supervisor) to reinvest into the business in terms of improving machinery and equipment or paying shareholders.
The third point London Linen executes is the business is reactive meaning it focuses on the short-term of the business to ensure the company is prepared for any changes in the market. Marr (2007) says this means that the company will not be prepared to look at job applications which have been sent to the organisation until a vacancy arises thus there is not a continuous flow of people leaving their positions for the business to replace them with. Meaning that labour turnover is kept at its minimum and if a project in the future requires more workers then London Linen can look through the job applications to decide who is best suited for the role instead of hosting continous interviews even when there is not a vacancy in a proactive environment.
London Linen uses the best-practice approach since the business believes when employee morale and behaviour is improved then productivity and quality of service also does. London Linen’s HR department uses Pfeffer’s (1994) model to reward employees on their ability and when business objectives are met.
Employment security is used to support inventive behaviour to emphasise to employees that their job is safe if they take creative risks. Furthermore Codling (1992) says by selective hiring they invest into employing the ideal person by assessing candidates on their ability thus evading time-wasting and capital on training people.
A HR task the business implements below-par is assessing individual performances. Management focuses more upon how each department performs instead of the level of contribution each person has given to the business’ success. Druckman (1998) suggests this means that employees who have contributed more will not get any recognition hence they are overlooked regarding promotion opportunities which demoralizes them and decreases productivity.
A task London Linen performs adequately is recruiting individuals with the appropriate skills to work at a high-standard. Fox (2000) states the HR department offers jobs to candidates with sufficient experience and skill to carry-out a task thus the business can meet its objectives. Furthermore if a candidate or an employee is lacking a skill which is not mandatory then the business will provide training to help develop them.
Another task is HR Planning; the company prepares and outlines its needs to achieve its goals. Caruth (2008) says this means the business can produce contingency plans i.e. a top-level employee leaves then the business can employ a current employee who has been groomed to take-over the position which ensures time is not wasted by employing externally.
A HR task which helps London Linen achieve its business strategy is employing the most suitable candidates. Gatewood (2010) says when a business employs an individual who meets all the necessary requirements for a job it aids the organisation in its strategy to improve itself and become up-to-date with the latest business trends.
Since London Linen employ candidates who have been trained with the latest systems and software it ensures they operate to a standard which is considered ‘modern’ and ensuring the company is kept abreast of advancements in technology and communication models which improves their productivity in the long-term.
Another HR task is planning HR. This helps London Linen achieve its business strategy of retaining skilled employees for future business endeavours. The planning of HR ensures the business is prepared if there is a shortage of workers in the future by implementing a recruitment method to employ individuals if they lack any i.e. keeping in contact with employment agencies.
Whereas if there is a surplus of workers the business can delegate new job roles to the workers where they are best suited or remove them from their positions to guarantee the business maintains a flexible workforce if the business contracts any problems in the future as suggested in Rothwell (2003).
A HR task hindering London Linen’s business strategy is evaluating and assessing job salaries. This does not help the financial productivity of the business since they use pay bands to determine the salary of an employee.
The hindrance from London Linen’s use of pay bands is that salaries are decided on business perception; without any set criteria. Meaning certain jobs are given inflated salaries in comparison to the average for that job hence the business pays more than it should in employing individuals. Ekerman (2006) states this decreases the net profit and the shareholder dividends thus losing potential investors and future liquidity.
Another hindrance is the business trains and develops some workers. This HR task hinders the business strategy of becoming a cost leader. Phillips (2012) says for a business to train and develop its employees it takes plenty of time and money to implement the task which risks hampering production.
As London Linen usually trains its factory workers to use the machinery available within the business it means production is not maximised since the opportunity cost is too great; employing an experienced worker who can use the machines and commence work immediately. London Linen attempts to sell products low-priced whilst a high supply to combat competitors; however training employees hinders production. Briscoe (2009) states this permits competitors to ‘seize’ on the detriment by lowering their prices and increasing production to ‘poach’ their market share.
The HR tasks of line managers which are effective in London Linen is to motivate employees by providing appraisals and rewards as well as training individuals. By using Purcell’s model (2003) in figure 2 the line managers are able to identify the skills and abilities of their employees through appraisals; the performance of the workforce will be evaluated hence they decide what course of action to take.
For instance if an employee has shown signs of being productive in his/her appraisal then the line-manager will provide a reward to help motivate them and ensure that their morale is maintained. This helps build a sense of ‘security’ for the employee in regards to their position at the business and may lead to an opportunity to being promoted in the future.
Griffin (2010) suggests however when an employee has been discovered lacking certain skills and traits for their job within the appraisal then line-managers of London Linen create training and development plans so the individual gains new skills and becomes ‘multi-skilled’ and thus is able to execute their current job effectively which would lead to a positive appraisal and towards a prospective promotion.
The HR tasks which are ineffective is permitting adequate amounts of holidays and communicating with subordinates. Ulrich and Brockbank’s (2005) model shows that even though employees and line-managers can be categorized as ‘business partners’ there will always be a power disparity between them.
The line-manager of London Linen is delegated the role of providing employees with holidays and sick-days however since the line-manager is solely responsible for a department it is difficult to distribute holidays to everyone since the lack of help the line-manager has. Harris (2003) says therefore not all of the employees will gain breaks or holidays and will be ‘over-worked’ at work and would not be motivated to work to the best of their ability.
Smith (2008) states in regards to communication employees can never be business partners since they lack the knowledge and ability to work as a business partner. Hence the line-manager of London Linen would not have a working relationship with his/her subordinates and hence the environment of the employees would be perceived as autocratic which would affect employee morale negatively.
A recommendation to improve the effectiveness of line-manager tasks is streamlining and delegating the line-manager’s less important tasks. This can be done by outsourcing tasks such as holidays and sick leaves meaning the line-manager has less work thus they can focus on pressing matters as suggested by Saunders (2007).
If the job is outsourced then workers abroad will be unbiased since they will not be exposed to the employees directly; who might persuade the line-manager to give them preference regarding holidays. Beaman (2004) says the improvement ensures holidays are distributed equally which ensures workers are given the ‘benefit’ based on merit.
Kearns (2013) states another recommendation is employing HR professionals who are equal to the line-manager and challenge the line-manager’s operational activities whilst doing some of the line-manager’s tasks. The advantage is that line-managers are kept on their ‘toes’ which motivates them to work to their best whilst some tasks are undertaken by HR professionals to enhance productivity.
Boyse (2009) says employing HR professional can be used to ‘bridge’ the power disparity between employees and the line-manager as HR professionals can question and challenge the line-manager. The employees may utilize the HR professional as an advocate regarding their rights; voicing their opinions meaning the line-manager must consider the implications of any actions on the employees.
Turner (2002) says HR Planning is a practice which ties the human-resource requirements of a business with its strategic proposal to guarantee workers are adequate, skilled, and proficient to attain business objectives.
HR planning is a fundamental business factor to sustain a competitive advantage. Harris (2003) states a competitive advantage can be sustained by foreseeing employee training requirements which permit businesses to be hands-on and plan financially. Equipping workers with the information they require leads to employee competence and efficiency thus gaining a competitive advantage to generate higher sales.
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