Development of Management Industry - Case Study Example

«Development of Management Industry» Table of Contents Personnel Management and Human Relations (HR) Management 2 Introduction 2 Features of Personnel Management 3 Human Resource Management (HRM) 3 3 Features of HRM 4 Difference between Personnel Management and Human Resource Management 4 Distinguishing Factors 6 Similarities between the Personnel management and HRM 9 Recruitment and Selection 10 Recruitment Process 10 Selection Process 13 Disciplinary Procedures 15 Redundancy 17 Alternative to Redundancies 19 References 20 Bibliography 22 Personnel Management and Human Relations (HR) Management Introduction Personnel management is concerned with those people who are at work and their relationship with each other. It can be defined as a collection of programmes, activities and functions that are designed in order to maximise the personal as well as organisational goals. Personnel management ensures that the organisation is capable of attracting and hiring the right people that matches with the requirement of the organisation. In order to retain the personnel and to deal with them effectively, the companies set various policies and procedures. Various rules as well regulations are set with regards to the working condition, designing of the appropriate compensation structure and also to strengthen the relation that persist between the employer as well as the employee. Human relations management primarily consists of the social relations which are prevalent in a workplace. It comprises of social psychology, social anthropology, and also sociology. Human relations management theory believes that the workers want to feel as a part of any team which comprises of socially supportive relationship. They also want to develop and grow in their workplace environment. The human relation deals with various issues like communication, motivation, employee participation and also that of leadership (BNET, 2010). Features of Personnel Management Personnel management mainly concerns with the employees who are working with the organisation (including both individuals as well as the groups) and are involved in attaining the common goals. It deals with all the level of the organisation i.e. top level, middle level and lower level. It also deals with organised as well as unorganised employees. It is a continuous and ongoing process where constant reviews as well as up-gradations are required. Personnel management and maintaining human relations are the main duties of the line managers who are working in an organisation and these functions are performed by the staff in the organisation (Rao, 2005). Human Resource Management (HRM) Human Resource management (HRM) can be defined as the management of the employees who are working within the organisation, in order to achieve the goals of the organisation. In other words, HRM is defined as the science as well as the practice that basically deals with the characteristic of relationships existing in the process of employment and also deals with all the decisions that are related to the relationship (Ferris & Et. Al., 1995). Features of HRM Human resources management involves aligning organisational goals along with the individual goals. The main task of HRM is to integrate the various human assets that are working in the organisation. HRM can be regarded as the development oriented activity which means that it tries to bring out the best from the individual as well as group who are working in the organisation through continuous monitoring and by providing training and development to the human capitals or assets who require it, through rotation of the jobs in order to gain experience and exposure. An effective HRM is basically future oriented i.e. it aims to help the organisation in order to meet its goals by providing competent as well as energetic people to the organisation (Rao, 2005). Difference between Personnel Management and Human Resource Management Personnel Management as well as Human Resource Management are the integral parts of any organisational growth and development. Both these factors are interlinked to each other. Though there are certain differences between the two factors and those are discussed in the subsequent paragraphs: Evolution of Personnel Management Personnel management as a part of human resource factor was established when the people working in the factories were exploited badly and since then, the laws of land were enacted in order to effectively deal with the issues relating to grievances as well as the welfare of the people working in the factory. As there was change in the relation between the trade union and the management, certain changes were also observed in to the domain of the personnel management. These changes were not only in terms of welfare but also in other sectors such as ensuring that the personnel administration is taken care of as well as industrial relation being effectively looked after. During the last three decades, there have been enormous changes in the competitive environment which had been brought about by the competition that was growing on. With the changes in the business scenario, the companies realised that human resource as well as the adequate knowledge of such human resource is the most important factors in sustaining competitive advantage. Although other resources such as materials, equipment, technology or finance are also important in any organisation but they prove to be short lived process if human resource is not taken care of properly. Therefore the companies have been trying to amass these talents in order to develop new products. With these there has been change in the attitude of management and hence the emergence of human resource management took place wherein the personnel policies are implemented to attain the objectives of the organisation. Distinguishing Factors The study conducted by Storey in the year of 1992 distinguishes personnel management and human resource management and have divided them into four main categories namely: Belief and assumption Strategic aspects Line management Key levers The first distinguishing factor is belief and assumption which can be stated as below: Contract It is believed and assumed that in personnel management, there is careful demarcation of written contracts. HRM aims to go beyond written contract. Rules In personnel management, it is believed and assumed that personnel management shove on devising clear rules whereas it is assumed that HRM tries to devise different rules from time to time. Guide in Terms of Management Action Personnel management believes in elaborate procedures whereas HRM believes in business and the needs of the customers, their commitment as well as the attached flexibility. Behaviours It is assumed that the behaviour of the personnel manager is in line with the customs and traditions. Whereas in case of HRM, it is believed that the behaviour of the HR managers is in line with mission of the company as well as values. Manager’s Task The main task of the personnel manager is monitoring whereas the main task of the HR manager is nurturing. The second distinguishing factor that of strategic aspects can be stated as below: Key Relations The Personnel manager deals with the labour management whereas the HR manager deals with the customers. Corporate Plan In case of personnel management the corporate plan is marginalised whereas in case of HRM it is integrated. Speed of Decision In case of personnel management, the speed of decision making is slower as compared to that of the HRM. The next distinguishing factor is in terms of line management which relates to the following: Management Role The management role in case of personnel management is transactional whereas in case of HRM, it is transformational leadership. Key Managers required Skills The key skill of personnel manager is in terms of negotiation where as in case of HR manager it is facilitation. The other distinguishing factor is that of key levers which can be discussed as below: Attention In personnel management, the main attention is on personnel procedures whereas in case of HRM, the prime focus is on cultural as well as structural issues. Pay The personnel manager is paid on the basis of job evaluation whereas the HR manager is paid on the basis of performance. Job Design In case of personnel management there is a division of work whereas in HRM, the team work prevails (Alagse, n.d.) Similarities between the Personnel management and HRM Personnel management as well as the human resource management both flows from the business strategy. Both of them recognise that the line managers are completely responsible for managing the people in the organisation. It is the duty of both the personnel manager as well as the human resource manager to alter the people according to the requirement of the organisation. One more similarity comes in terms of range of selection and competence analysis of training management development and the reward system that are used in both the personnel management as well as in the human resource management (Armstrong, 2006). Recruitment and Selection Recruitment is the process of locating as well as encouraging the capable applicants to apply for a job. It performs the work of linking the jobs with the job seekers (Rao, 2006). Recruitment of staff is one of the most important tasks of any company. The main responsibility of the management is to recruit and select the best candidate that suit the requirement of the organisation in order to fill the gaps of the organisation and to achieve the goals. Recruitment Process Recruitment process can be broadly categorised into the following headings which can be outlined below: Preparing for recruitment Equal opportunities Development of selection and recruitment policy Delegation of responsibility Planning process Job description Person specification Application form Job advertisement Information to applicants This is the entire process of recruitment which is followed in most of the organisations. Each step can be understood in detail in the following sections: Preparing for Recruitment The first step that is taken in any organisation is to recruit the people in the organisation. It is very important to consider why are the employees being recruited, what will be the cost involved, what will be other implication of recruiting such as the people in the organisation and the kind of employees that are required. Equal Opportunities It has been mentioned in the Employment Equality Act that it is illegal for an employer to discriminate against a prospective employee with regards to the assessment of employment. It is important to eliminate both direct as well as indirect discrimination. Direct discrimination occurs if the employee is being treated less favourably for the employment opportunities because of their marital status or gender issues. Indirect discrimination arises because of irrelevant policies or practices that are being imposed for the employment opportunities. Developing Selection or Recruitment Policy After having learnt about equal opportunities, the next very important step is to develop a recruitment policy. This policy will define the process of recruitment in the organisation. The main purpose of the policy would be to ensure that the approach is fair and consistent. It is important to bear in mind that the policy should be written in accordance with the equal opportunities. Delegating Responsibility After the management has thoroughly gone through the steps that have been mentioned above, it is important for the management to delegate the responsibility for conducting the recruitment to the subgroup. This person will be responsible for everything starting from job description to recommendation for selection in the organisation. Planning the Process of Recruitment In this step, the work of the sub group is determined in detail. The work of this group is to prepare the job description, job specification, application form, preparation and placement of advertisement, handling of the general queries that exist in the organisation. Job Description Job description involves the roles as well as the responsibilities and the task that makes up the entire job process. Job analysis aids in preparing job description. Person Specification Person specification describes in detail the necessary skills, knowledge that is required in the job. Application Forms This is very important part as it is helps to screen out people at the initial stages of selection. Job Advertisement In order to reach the prospective employees, it is important to advertise for the job. Advertisement is the best way of locating prospective employees in a recruitment process (Clarke & Et. Al., 1995). Selection Process Selection is defined as the process of choosing the best applicant from the pool of applicants for the current position that is vacant in an organisation. Selection is the process which starts with the initial contacts with the person who is applying for the job and it basically ends with contract of employment. The various steps can be outlined as follows. Initial Contact Preliminary interview Application blank Psychological test Interviewing Checking references Approval by supervisors Selection decision Physical examination Job offer Contract of employment Evaluation Each step has been discussed below in details: Initial contact can be made with the candidate with the help of the application for jobs in the company. The next important step is to take preliminary interview. This is basically an introductory interview that lasts for a short period and it eliminates the unqualified. The next step is to fill the application form. This helps to obtain factual information about the candidate. The application blank may differ from one company to another. Then psychological test is conducted to measure the mental alertness of the employee. Interview is conducted in the next step by making use of structured or unstructured format of questioning. References are checked in the next important step for verifying and investigating the background of the applicants. The approval of the supervisor is sought in order to verify the credentials of the candidate before moving to the next step of selection. The most difficult decision in selection process is regarding the selection of the candidate. A candidate has also to undergo a physical examination to check his physical fitness. Finally the offer letter is provided to the candidate who has cleared the above steps. The contract for employment is prepared which includes job title, duties in detail, working hours and other formalities (Randhawa, 2007). Disciplinary Procedures Discipline is one of the most important aspects in any organisation. It is important for smooth functioning, peace and harmony in an organisation. It can be defined as such a factor that makes the individual as well as the organisation to look at the rules and regulations that has been set and is vital for the smooth functioning of the organisation. In the first case it was found that the old supervisor had been coming late. The disciplinary actions that can be taken are discussed as follows: Stage One: Verbal Warning When an employee has failed to meet the required standard or rules, a verbal warning can be given to the employee. Verbal warning is the first stage that can be considered within the disciplinary action. The person can be given three months time to take necessary steps to rectify the scenario and it can be recorded in a file. The step will have to be adhered according to the rules and regulations. Stage Two: Formal Written Warning If Mr. David Davis continues to indulge in similar transgression or if there is no improvement then a formal written warning has to be issued to him. This written document will have a detail of the incidents as well as actions that David will be liable to. This document will address the improvement required and the time scale. The details can be recorded in a file and will be provided in six months time and it will make certain that Mr. David Davis adheres to the guidelines and conducts provided. Stage Three: Final Written Warning If the transgression is repeated again then he has to justify his actions in a final written document. In this case, the document will be issued to Mr. David Davis along with the performance that is required. While issuing such copy, member of the HR team as well as the Director of the company will be present who would also personally warn on behalf of the company. No further warnings will be issued to the employee. This is the third stage of disciplinary procedure. The file will contain the detail of the final warning that is issued to him. In this scenario, the period will not be considered beyond 12 months and will be subjected to satisfactory conducts and performances. Stage 4: Dismissal Gross Misconduct Even if the offence is committed after the final warning, then Mr. David Davis can be dismissed with prior reference from the CEO. However, before dismissal it is also important to investigate the matters for the misconduct. The reasons observed and if found to be worthwhile then as a penalty, Mr. David Davis can be suspended for few days, but if the reasons are not satisfactory then he can be dismissed (Becta, n.d). In the second case, it is found that Sheila Blunt was stealing some finished or part-finished items from her department. Certain disciplinary actions as well as legal actions can be taken in this regard. A thorough background check can be conducted of an employee before recruiting them in future. It is important to know from the previous employer about the applicant before hiring. It is also important to check the criminal record of the employee as well. If the employee has been a drug addict in past then she is more prone to stealing items which has to be checked. Sheila Blunt should be made aware that she has been caught performing the misconduct. The awareness would prevent the employee in repeating such theft. Sheila can be educated about the bad effects of committing such crime. It should be emphasised that such an illegal action may cause severe harms and may even take her to the court of laws. If Sheila Blunt is facing any financial problem then the management can assist her in all possible ways. Sheila can be granted rewards if she has been performing well over the past few months. This will make her feel that the organisation really thinks for her betterment and there are chances that this type of activity will be stopped (Wells, n.d.). Redundancy An organisation often looks to reduce their operational expenses. While looking for ways to do so, redundancy is such a process which is conducted to perform cutback. Redundancy in human resource management is the situation where the employment of an employee is terminated because of various reasons like the shut down of the business, or the lapse of the position of employee in an organisation. When making redundancies, it is important to take into consideration the criteria that are basically objective as well as non discriminatory. If non compulsory selection is taken into account, then selection criteria can include voluntary redundancies as well as voluntary early retirement. If compulsory selection criteria are used then the proficiency of the employee through skills and qualifications can be made. The most important criteria can be the length of service rendered as well as seniority while setting the terms for redundancy for an employee. It is important to retain the senior employees as they possess high skills and knowledge. The various steps to be followed while cutting back the employees can be as follows: At first, it is important to write to an employee that he or she is being redundant. This is the most important step and must be presented in a very systematic fashion so that the employees don’t get emotionally affected. Then, it is important to set the reasons of such redundancy. The employees at this stage will be provided details with regards to the reasons for cutbacks. The employees will be briefed regarding the slow down of the demand in the company. In the third step, meeting can be held with the employees to discuss for matters regarding the redundancy if it seems to be necessary. This stage is very important as employees can have their views about the redundancy and can enquire if they have any problem related to this matter. Therefore, a meeting can be held to discuss with the employees regarding the process of redundancy and the method of calculating the redundancy related reimbursements. The employees, who are becoming redundant, will also be assured that they will be relocated if there is an opportunity and the compensation that the redundant employees would be getting. Other issues that can be discussed could be related to time period that would be provided them to shift to other jobs if they don’t want to opt for the one that is being provided by the company. The redundant employees will also be assured that certain people like disabled or the one who is having long term illness will receive special protection from the company (AdidasGroup, n.d.). Alternative to Redundancies Alternatives to redundancy can be outplacement and redeployment. Outplacement is a job assistance program designed by the companies who implement downsizing or staff reductions. The main objective of the outplacement activities is to support the employees to cope up with pressure of termination by helping them to seek new jobs (Pickman, 1994). Redeployment can be referred as employing the same employee of the organisation in some other unit. The various measures that are to be taken into consideration include the traits of the employee, the job – fitness of the employee, the related vacancies among others. References Adidas Group, No Date. Handling Redundancies and Layoffs. What is redundancy? [Online] Available at: http://www.adidas-group.com/en/sustainability/assets/Guidelines/2009_Jan_Guidance_Note_Handling_Redundancy_Layoffs.pdf [Accessed September 8, 2010]. Alagse, No Date. Human resource management and personnel management - shift in focus. Home. [Online] Available at: http://www.alagse.com/hr/hr2.php. [Accessed September 8, 2010]. Armstrong, M. A handbook of human resource management practice. Kogan Page Publishers, 2006. Becta, No Date. Disciplinary procedure. Home. [Online] Available at: http://foi.becta.org.uk/ [Accessed September 8, 2010]. BNET, 2010. Human Relations. Dictionary. [Online] Available at: http://www.bnet.com/topics/human+relations [Accessed September 8, 2010]. Clarke, J. & Et. Al. The staff recruitment process. Combat Poverty Agency, 1996 Ferris, G. R. & Et. Al. Handbook of human resource management. Wiley-Blackwell, 1995. Pickman, A. J. The complete guide to outplacement counselling. Routledge, 1994 Randhawa, H. Human Resource Management. Atlanta Publisher and distributors, 2007. Rao, V. S. P. Human Resource Management. Excel Books Publishers, 2006. Wells, J. T., No Date. How to Prevent Employee Theft. Home. [Online] Available at: http://www.score.org/article_how_to_prevent.html [Accessed September 8, 2010]. Bibliography Hammonds. & Et. Al. Redundancy. CIPD Publishing, 2003. McDonald, L. How to Manage Problem Staff Successfully. Straightforward Co. Ltd, 2008. Read More