The Secret of Personnel Management and HRM - Essay Example

? Task P1) Personnel management represents the managerial function of estimating and ifying human resources requirements for attaining organizational goals. Personnel management can be categorized into two based on function: operative function (activities linked to procuring, compensating, developing, and utilizing an efficient work force. Human resource management represents the function within an organization that centres on recruitment, availing direction for individuals working within the organization, and management of employees. Effective HRM allows employees to contribute effectively and productively to the overall success and attainment of the organization’s goals and objectives. Differences between Personnel management and HRM Personnel management is essentially an administrative record keeping function at the operational level. Personnel management attempts to sustain fair terms and conditions of employment while simultaneously, efficiently managing personnel activities. HRM, on the other hand, is concerned with the development and implementation of people strategies that are integrated with corporate strategies and guarantee that the culture, structure, and values of the organization, as well as the quality, motivation and commitment of the employees contribute fully to the attainment of the organization’s goals (Armstrong 2006, p.5). HRM is concerned with undertaking of analogous functional activities conventionally undertaken by the personnel function such as job analysis, employee relations, planning, and compensation management; however, the HRM approach undertakes these functions in qualitatively distinct way relative to personnel management (Duberley and Walle1995, p.891). Personnel management is essentially workforce centered, directed largely at the organization’s employees. HRM, on the other hand, is resource-centered, directed largely at management as per devolving the responsibility of HRM to line management. Personnel management has never entirely identified with management interests given that it becomes ineffective when not able to comprehend and articulate the aspirations, as well as views of the workforce. Personnel management is essentially an operational function concerned largely with undertaking the day-to-day people management activities. HRM, on the other hand, is strategic in nature concerned with directly aiding organizations to gain sustained competitive advantage (Guest, Michie, Conway, and Sheehan 2003, p.291). HRM is mainly more proactive than personnel management, whereas personnel management is concerned with the maintenance of personnel and administrative systems. Personnel management is largely applied in the public sector, tertiary education, and local government despite the complexity associated with public sector including a mix of politics, service delivery, and management. In the private sector, HRM can be used to manage the human side in corporate and large organizations, banks, small and medium –sized enterprise, consultancies, and trade unions. High performance working environment is linked to attainment of high levels of performance, profitability, and customer satisfaction (Armstrong 2006, p.6). Firms such as Tesco and British Airways have demonstrated the significant role played by HRM in the attainment of management objectives mirrored in the transformation of the personnel management function. (P2) The function of HRM centres on planning, developing, and administering policies and programs designed to render the expeditious utilization of organization’s human resources. HRM is concerned with the process of hiring and developing employees with the aim of transforming the employees into valuable resources for the organization (Sims 2002, p.3). The human resources function is mainly responsible for managing workforce as primary resources that play a critical part in the firm’s success. HRM largely functions as a value adding a component in the organization based on the strategic utilization of employees. The objective of human resources centres of allowing employees to work to maximize efficiency (Anyim, Ekwoaba, and Antony 2012, p.68). The objectives of HRM centre on the efficient utilization of human resources, maintenance of desirable working relationships among all members of the organization, and facilitating maximum individual development. HRM aids organizations to strategically manage people as business resources employees as business resources. This encompasses managing recruiting, coordinating employee benefits, hiring employees, and suggesting employee development strategies. (P3) Typically line managers made a significant difference to people management practices in areas such as performance appraisal, employee involvement and communication, training, guidance and coaching, work-life balance, openness, and recognition. The front line manager’s role is essential in facilitating HR policies and practices, or bringing them to life. Line managers take the role of supervising their employee, which can be regarded as one of the most pertinent factor in employee engagement. HRM is increasingly becoming the domain of line managers conversely to the conventionally held perception that it is a specialist HR function. Consequently, there has been growing debate as per the division of HR roles between HR specialists and line managers. Line managers play a central role in human resource management. HR practitioners gauge employee engagement via surveys; however, employee engagement is generated or extinguished by line managers. Some of the challenges faced by line managers in HR include speedily changing business environment, pressure to “do more,” and the rising gap between job requirements and skill availability. (P4) HRM practice is increasingly finding itself in the middle of a growing regulatory environment. The pattern of employment legislation within the late twentieth and early twenty-first centuries has centered on compelling employers to be highly socially responsible for their employees. Equal employment opportunity law seeks to safeguard employees from unfair discrimination within the workplace. Human resources personnel ought to be familiar with the requirements of legislation give that noncompliance can impose adverse outcomes to HRM practice. Employment practice and law avail businesses with assessment and documentation in the absence of policies and procedures. For instance, businesses pay statutory maternity pay to employee’s, but enjoy the right to claim the majority of this from the government. There a number of laws that must be considered during the recruitment process, which encompasses legislation centring on description and equality. The Equality Act 2010 brings together several laws into one covering aspects relating to discrimination within the workplace based on sex, race, age, orientation, and religion. This law also addresses victimization that may feature when an employer treats and employee unjustly on the basis that the employee has brought a claim under the Equality Act. Equal opportunities and diversity laws and regulations within the workplace allow businesses to get the best out of their employees. Employment practice and law avail businesses with guidance and documentation on how organizations should offer equal opportunities and diversity via their workforce devoid of any discrimination (Clardy 2003, p.27). Employment regulation is considered necessary and fair as it guarantees that employee’ rights are safeguarded, and avail employers with the legal framework to refer to when managing staff. Task 2: (P5) HR planning represents the systematic analysis of HR needs so as to guarantee that correct number of employees with suitable skills is available when they required. HR planning fosters decision making in which various alternatives are discovered and best alternative selected (Legge 2004, p.10). HR planning aids HR practitioners to anticipate HR changes such as abrupt resignation of a key employee and address the HR changes with minimal disruption to the formal workflow of operations. (P6) Human resource planning appraises the manpower requirement for the future period and seeks to avail adequate manpower required to undertake organizational activities. Different organization can have diverse planning process including: Assessing Human resource The appraisal starts with environmental analysis under which both internal (objectives, structure, and resources) and external (PEST) variables are analyzed to appraise the currently available HR inventory level. Consequent to the analysis of external and internal variables of the organization, it becomes easier for the organization to spotlight internal strengths and weaknesses of the organization. Demand and supply Forecasting HR forecasting represents the process of estimating demand for and supply of HR within an organization. Demand forecasting represents the process of establishing future needs for HR based on the quantity and quality undertaken to satisfy future personnel needs of the organization critical to attaining a desired level of output. HR planning necessitates that organizations gather data on their goals and objectives. The HR plan must directly support the objectives and need of the organization. This should be informed by the pros and cons in the HR environment. Inventory The next step after forecasting entails taking stock of the present employees within the organization. Skills inventory avails valid information on professional and technical skills, as well as qualifications provided in the firm. Skills inventory exposes the skills that are immediately available when compared to the forecasted HR requirements. Audit Whereas HR inventory calls for collection of data, HR audit demands systematic examination and analysis of the collected data. The audit explores what had occurred in the past and present with regard to labour turnover, sex groupings, age, absence, and training costs. Based on this information, organizations can be able to predict what will happen to HR in the future within the organization. HR Resource Action Plan People can be regarded as the greatest assets of nay organization and organizations are at liberty of developing its staff at full pace in the manner ideally suited to the individual capacities. Once in action, HR plans are transformed into corporate plans as they become part of the company’s long-range plan. Failure to attain the HR plans owing to cost, or absence of knowledge, may present serious constraints on the long-range plan. Monitoring and control This represents the last stage of HR planning within the organization. After implementation of the program, it has to be controlled; the notion behind monitoring and control is to ensure that the organization makes use of all the available talents that are at its disposal. (P7) Recruitment and selection processes seek to attract and admit those deemed by the management to be the “right” people. The recruitment of individuals to fill certain posts within a business can be undertaken internally or externally by recruiting people from outside. Underpinning the process of selection and choice of techniques are two pertinent principles: prediction of performance and gauging individual differences. Basic selection criteria include formal education, personality characteristics, physical characteristics, and experience and past performance. Effective recruitment and selection can also avail significant enhancements in productivity and employee morale. Job analysis can be regarded as the “backbone” of recruitment and selection activities with potential contribution to organizational performance. Competency based job analysis spotlight the behaviours of job applicants such as flexibility, motivation, teamwork orientation, as well as other analogous characteristics. Internal recruitment is advantageous as it heralds significant savings given that individuals with inside knowledge on how a business operates will require shorter periods of training and time to “fit in.” The disadvantage of this form of hiring is that an insider is unlikely to make essential criticisms essential to make the company work effectively (Legge 2004, p.12). External recruitment enables organizations to draw upon a broad range of talent and avails the opportunity to herald new experience and ideas into business. Tesco is the biggest private sector employer in the UK with trading spread more than 13 countries. Tesco mainly employs internal recruitment method, as well as interview method and assessment centres during the selection process. Tesco’s recruitment process hinges on the job available and the internal recruiting method. At first, Tesco looks for internal talent plan to fill the vacancies. The process lists present employees seeking a move either at the same level or on promotion. In the event that there is a suitable person internal management establishes a training and development program. Tesco utilizes internal e-recruitment method to advertise pos within Tesco’s intranet. In the event that external recruitment is utilized, the firm advertises the post in their website. British Airways (BA) is UK’s biggest international scheduled carrier and features among top global airlines. British Airways, on the other hand, utilizes an integrated approach. The utilization of the management system integrates all sections of the recruitment process and replaces the separate systems that were initially used. BA utilizes e-recruitment systems that mirror the organization’s requirements and existing processes. The form of recruitment takes into account high volume forms rather than CV applications. The talent acquisition awards recruiters the tools to exercise control all aspects of external and internal recruitment processes. E-recruitment platform has provided BA with a more sophisticated solution to minimize time to hire, cost per hire, and improve candidate experience. The integrated recruitment process truly mirrors BA’s full service experience and efficiently manages volume applications from both internal and external job seekers. The systems can also be regarded as faster, more reliable, and availing improved experience for the candidate and ensures that BA has the capability to recruit the best talent. (P8) I prefer Tesco’s method of recruiting and selection. Tesco’s methods of recruiting and selection hinges on the situation, but candidates are mainly recruited through internal talent plan from current employees seeking a move at the same level or on promotion. The use of internal talent plan heralds several advantages such as reducing cost of recruiting employees, availing a more accurate view of candidates skills, enhanced commitment to the company, increasing employee morale, less training and orientation is necessitated and sustaining knowledge and culture. The organization is also less likely to be significantly disrupted by compared to external recruitment. Task 3 (P9) Employee motivation theories seek to create models to comprehend what motivates individuals to push their performance at work. Effective employee motivation can enhance employees’ productivity and loyalty, and failure to put the theories into place can yield to enhanced employee turnover. Motivated employees are required in the rapidly changing workplaces. Motivation represents what makes individuals take action, whereby the forces that underpin motivation can be social, biological, emotional, or cognitive in nature. Process theories are concerned with “how” motivation occurs while content theories are interested in “what” motivates people and is mainly concerned with individual needs and goals. Needs-based motivation theories are grounded in the notion that motivation derives from the desire to fulfil or attain a need. Incentive theory of motivation suggests that individuals that individuals are motivated to undertake things owing to external rewards.  Finally, humanistic theory of motivation stipulates that individuals manifest powerful cognitive motives to undertake various actions. This is evidenced by Abraham Maslow’s hierarchy of needs that represent diverse motivations at diverse levels. In this section, I will analyze how Barclays Bank motivates and rewards its employees based on incentive theory of motivation. Incentive theory asserts that an employee will enhance his/her efforts to gain a desired reward, which is grounded on the general principle of reinforcement. The desired outcome in this case is usually money. Barclays has adopted rewards systems based on the pay-per-performance scheme, which rewards or sanctions employees as per performance evaluation. Extrinsic motivation might possess powerful and visible effects; however, extrinsic motivation does not have lasting effects as the stimuli is emanating from outside the individual (Bacon, Ackers, Storey and Coates 1996, p.83). Barclays Bank utilizes staff incentives in building trust and encourages the right behaviours. Staff incentive scheme can aid a business to build trust with the employees by stimulating and rewarding the right behaviours. The entity has attained sustained motivation among employees by first recognizing that the forms of employee behaviours, which will move the business towards its objectives. Business and HR teams can determine criteria and communicate the scheme to its employees. Concise goals can be a critical element of staff incentive and essential for building trust.  One of the things that Barclays undertook in October 2012 was to drop the connection between employees’ bonus and sales and streamline the criteria to ensure that bonuses are connected to customer satisfaction. Barclays has successfully kept up motivation in their employees while at the same time rewarding employees with bonuses. As such, employees are motivated by financial incentives rather than fear. The implementation of a new culture with values includes respect, stewardship, and integrity has fuelled high motivation among its staff, high productivity, as well as low absenteeism. The high motivation among its staff can be linked to Barclays Bank being among the employers awarded for payroll giving, which recognizes employers who have demonstrated a strong commitment and generosity to charities via payroll giving schemes. (P10) The process of job evaluation seeks to ensure that job descriptions and employee specifications are up to date and mirror the demand of the post. Job evaluation also seeks to ensure that pay structures are consistent and non-discriminatory. Job evaluation can be attained through job analysis questionnaire, evaluation panels, or job analysis interview. Some of the factors that Barclays employ to consider pay for different levels include the kinds and levels of required skills. The other factors that Barclays consider while determining pay for different levels entail employment setting given that, regularly there are distinct circumstances that propel alary-related decision making in diverse settings. The philosophy embedded in the negotiated agreements impacts on salary decisions throughout the rest of the organization. Barclays Bank also puts into account its compensation philosophy in paying some of its employees above industry standards, which ensures that it attracts and retains the very best pool of skilled employees. (P11) Employee compensation represents all forms of pay or rewards going to employees and arising from their employment. Employee compensation can be divide direct financial payments and indirect financial payments. Direct financial payments encompass pay in the form of salaries, wages, commissions, bonuses, and incentives. Indirect financial payments encompass payments in the form in the form of financial benefit. The motivational framework features five interconnected aspects manifest in an employee’s life that contribute to motivation namely: individual, colleagues, customers, organization, and the boss. This should be informed by the fact that incentives introduced with the best intentions can backfire. The effectiveness of salary structures that Barclays has instituted is manifested by internal equity and external equity. This is informed by key strategic issues based on the objectives of the company and the extent to which salary will be employed to attract and retain employee. Barclays Bank example demonstrates the significance of constantly ensuring that a business possess reward systems to suit the employees. (P12) Effective performance management aids to drive the success of the company. Setting performance standards, observing and availing feedback, and undertaking appraisals allows organizations to attain the best results via management of employee performance. Barclays Bank should continue to create and implement training and development programs to guarantee that the company enjoy the capabilities to attain performance objectives. Barclays should ensure that measures performance measures are accessible to every member of the process. The performance measures should be accurate, which necessitates that measures be feasible, valid and reliable, acceptable and feasible. Task 4 (P13) Employee termination represents the process by which an organization terminates employer/employee relationship. Employers enjoy a fundamental right to terminate the employment of an employee, but this right comes with responsibilities as employers must comply with employment/labour standards, as well as human rights legislation. Termination may manifest “for cause” such as reduced job performance, lack of “fit” in the organization, incapability to undertake job responsibilities, misconduct, or conflict with employees or managers. Employment cessation may be caused by developments that are beyond the employee’s control such as relocation, downsizing, and restructuring. Other events that can trigger job termination include company relocation, mergers and acquisitions, and job redundancy. Employees resign from work based on numerous motives ranging from a spouse’s relocation to a shift in career path. Involuntary termination may be motivated by failure of the employee to satisfy performance improvement process policy and gross misconduct. Gross misconduct may arise from Contravention of any law, regulation, policy, or practice, illegal or improper conduct while at the workplace, conviction of a crime, theft, or fraud, violence or threat of violence within the workplace, or lying/deliberately withholding information, acts of discrimination, or serious negligence, intentional wrongdoing, or recklessness. (P14) Some organizations have instituted employee exit procedure that applies to all employees leaving the organization on a permanent basis, apart from the employee that have been dismissed consequent to a disciplinary action. NHs also features policies on maternity leave, adoption leave, career break, paternity leave, and special leave. The employees are expected hand in the notification of intention to leave or resign to the staff manager. Employees resigning from work are expected to give adequate contractual notice as require in the contract notice; nevertheless, employees have no obligation to outline the reasons for the resignation. The exit interview that the from conduct is structured to allow the organization to monitor the motives for individuals leaving the organization, as well as gauge the efficacy of HR policies and procedures in availing good working conditions. Exit interview avails employees to discuss their working experience in an objective and confidential manner. The NHS recognizes that their staffs are the most essential asset and the organization has a deep commitment towards sustaining and improving its standing as an employer of choice. As such, the NHS must attract and maintain the best calibre of an employee so as to deliver its aim of availing high quality healthcare services. NHS is committed towards maintain a good image during recruitment, as well as throughput the course of their employment, including maintaining that image when exiting the organization. NHS exit procedure guarantees that practical matters arising from an employee’s resignation are effectively addressed. The exit procedure also wards individuals an opportunity to avail feedback on the perceptions of the Board as an employer, while allowing NHS Board to collect valuable information that may be employed constructive to improve employment practices. Abercrombie & Fitch was recently sued for wrongful dismissal of a 22-year-old student, whom the company alleged did not satisfy the firm’s “looks policy.” Abercrombie & Fitch has faced lawsuits on unlawful dismissal advanced by its employees. The adverse exposure to wrongful discharge suits can be linked to the weak exit procedures, especially in cases where BBC has been deemed to retaliate against its employees for exercising a right that is supported by public policy within the jurisdiction. Dismissal can be just for diverse reasons such as failing to follow proper dismissal process. The firm manifest procedural unfairness as the majority of the dismissal manifested dismissal defects based on unfair selection for redundancy, and failure to undertake proper investigation prior to dismissing employees for gross misconduct. Abercrombie & Fitch does not take the process of employee exit surveys seriously and appears not to derive commitment from senior management that they will support and encourage the exit survey initiative. Organizations should utilize exit system process as a learning tool given that exit procedures award constructive feedback and criticism based on their work experience. (P15) Employment is usually the outcome of a series of progressive disciplinary actions. Voluntary termination occurs when employees’ resigns from his/her job based on a number of reasons such as a new job, retirement, and return to school. Employment/labour standards dictate the fundamental rights and responsibilities of the employer when terminating the employment of an employee. Employer can terminate the employment of an employee at any period provided that the employer has a cause and that reason does not contravene human rights or employment legislation. The employer can terminate the employee as long as the employer does not contravene the contract or employment and anti-discrimination law. When firing is required, businesses must handle the situation well to avert numerous potential pitfalls such as a reduction in morale and productivity among the remaining employees, complexity associated with hiring new employees, and reduction in the company’s public image. Majority of employers find dismissal of employees a difficult process irrespective of the reasons given for the dismissal; nevertheless, when a dismissal is necessitated, it is essential that the employer comply with legislation, treat the employees justly and at in good faith, handle the termination process professionally, and exercise care on how much information is communicated, primarily relating to the facts and reasons for the termination. Human rights safeguards individuals from termination that is discriminatory as outlined in the act/code. UK labour Law encompasses the legal relationship between employees, trade unions, and employers. Examples of UK labour law include Equality Act 2010, The Employment Rights Act 1996, Health and Safety at work Act 1974, and Pensions Act 2004. Employers should avoid firing employees on the spot and should utilize severance and release agreements to limit liability (Clardy 2003, p.26). Courts have ruled that temporary cessation of work need not break continuity of employment. References List Anyim, F. C., Ekwoaba, J. O., & Antony, I. D. (2012). The role of human resource planning in recruitment and selection process, British Journal of Humanities and Social Sciences 6 (2), pp.68-78. Armstrong, M. (2006). A Handbook of Human Resource Management Practice, London, Kogan Page. pp.5. Bacon, N., Ackers, P., Storey, J. & Coates, D. (1996). It's a small world: managing human resources in small businesses, International Journal of Human Resource Management 7(1), pp.83-100. Clardy, A. (2003). The legal framework of human resource development: Overview, mandates, strictures, and financial implications, Human Resource Development Review 2 (1), pp.26-53. Duberley, J. P. and Walley, P. (1995). Assessing the adoption of HRM by small and medium-sized manufacturing organizations, The International Journal of Human Resource Management 6 (4), pp.891-909. Guest, D., Michie, J., Conway, N., & Sheehan, M. (2003). Human resource management and corporate performance in the UK, British Journal of Industrial Relations 41 (2), pp.291-314. Legge, K. (2004). Human Resource Management: Rhetorics and Realities, Basingstoke, Palgrave Macmillan. Pp.12. Sims, R. R. (2002). Organizational success through effective human resources management. Westport, Ct: Quorum Books. Pp.3 Read More