Human Resources Management as an Important Aspect of Any Business That Wants to Thrive - Assignment Example

HUMAN RESOURCES MANAGEMENT Human resources management is a very important aspect of any business that wants to thrive. Human resources have been argued to be the most important asset to an organization. This therefore means that people within an organization have to be treated with the respect they deserve. All engagements with members of staff should be as per the laws and regulations that the business is operating in. In this paper we will discuss some of the legal provisions importantly in the United Kingdom among other factors that would impact on the human resources aspect of a business situated in the country. #Activity 1 1.1 Factors That Impact Employment Relationship The relationship that exists between employers and employees which are at times referred as industrial relations can affect how the management and employees perform their duties. The quality of the relationships highly impacts the performance of the organization (Mellahi, 2007, 22). The factors that influence these relationships can either be internal or external. Internal factors Motivation Employee motivation affects how they relate to the management. Employees with confidence about communicating their issues to the management are more likely to be productive than those that fear their employees. It is important that the management involves their staff in decision making so as to improve the working relationships between the management and staffs (Mellahi, 2007, 35). Human resource management The conduct of the human resources manager and team affects working relationships in an organization. Procedures and processes for crucial events like promotion, remuneration are some of the factors that people who work in these units need to look out for. Bargaining power Membership to a trade union was sometimes back a standard for employees especially those in the lower cadres. Organisations need to put in place systems that allow employees to air their grievances and ensure that conflicts are resolved accordingly. This will go a long way to improve relationships within an organization. External Factors Some of the outside influences that may affect the relationship between the management and employees include matters such as the private life of staff. This can result in absenteeism and low performance at their tasks. Government regulations can also affect the relationship between staff and employees. These include regulations that touch on worker safety, workplace rights and family leave. 1.2 Types of employment status There are five employment statuses that are known worldwide and more so in the United Kingdom. These are: Permanent – A permanent employee is one that has been engaged to work either in full-time or part-time basis for the long-term of the company (Lindsay, 2011, 56). Basically permanent employees are envisioned to work for the company till they retire upon meeting the retirement age. Self-employed – These are employees who run their businesses and therefore are responsible for the success or failure of the business (Lindsay, 2011, 101). These staffs mostly work for businesses as consultants. They are not paid through the main salary system and therefore are not entitled to some of the rights and responsibilities enjoyed by other staffs. Contractual staff - This is a special group of employees. Unlike permanent staffs, their working periods at the organization are well defined. This period could be from as high as two years to as low as three months. This staffs also don't enjoy full rights and responsibilities like permanent and pensionable staffs. They are mostly employed to perform a certain task, and the contract ends once the task is finished. Agency staff – These can also be called out-sourced staffs. Institutions that will need many people prefer getting these staffs through an agency (Lindsay, 2011, 66). A good example is a call centre setup. Agency staffs are paid by the recruiting agency or as per the contractual agreement between the two institutions. Volunteer/Interns – These are people who work for an organization to achieve self-satisfaction or for their education purposes. Institutions like Non-Governmental organizations enjoy the services of such individuals. They are mostly not paid as they give their services to charity. 1.3 Importance of Determining an Individual Employment Status The employment status of an employee is a big deal as it affects many aspects of their relationship with the institution where they work. Knowing the employment status of a staff enables them to know their rights while an employer can know of their obligations to the individuals working for them. With the correct identification of employees, the working relationship will be highly influenced (Klandermans, Hesselink, & Van, 2010, 88). Another importance of knowing the employment status involves taxation. Different types of employees pay different taxes and at different levels. While permanent staffs will be deducted PAYE, it is not compulsory for self-employed. This makes it crucial for a business to know the type of employees it has employed so as to apply the most appropriate tax regime. Through a better understanding of their employment status, employees can tell the conditions that they need to be provided for to perform their tasks (Klandermans, Hesselink, & Van, 2010, 74). An employee through an agency should have similar working conditions and terms as a permanent employee employed to perform similar tasks. This, therefore, means that it is important that a member of staff and the organization are clear about the status of the staff. #Activity 2 2.1 Importance of Work Life Balance So as to keep employees energized and motivated, it is important to ensure that they maintain a stable work life balance. Employees need to be allowed to meet their other needs such as family and friends when they leave work (Beauregard & Henry, 2009, 108). This is what matters to them most and therefore organizations need to ensure that this is in place. In the United Kingdom as per the working time directive’ or ‘working time regulations ‘one is not allowed to work for more than 48 hours a week. As per the law employees are not expected to work more than five hours consecutively. There are however also exemptions for those working in the armed forces, security and surveillance and where the job requires 24 hours operation. Employees in the United Kingdom are entitled to various types of leave. This is in line with aiding them maintain a reputable work life balance. Female employees are entitled to 52 weeks of maternity leave that is fully paid for. Male employees receive 1-2 weeks of paternity leave and all employment rights guaranteed. Staffs are also entitled to Time off so as to deal with family emergencies. The specific days are not stated, it is however expected as per law that this is going to be reasonable. Work life balance is highly dependent on the set law in a jurisdiction and in our case it’s the United Kingdom (Beauregard & Henry, 2009, 55). Legislation on leave days, working hour limits among other issues highly affect how an organization manages work life balance for its employees. 2.2 Legal Support to Employees An employer has an obligation to support their employee when they are dealing with certain aspects of their lives. These issues mostly need to be related to the tasks and responsibilities that an employee is supposed to do (Halbesleben & Rotondo, 2007, 66). An employer should also support staffs when some of the issues that they are facing are affecting their performance at work. Some of the issues that an employer can support their staff include: Maternity - An employer should ensure that female employees have humble time to deliver. They should be given maternity leave before giving birth and after. In case there are any legal complications the employer is also to advice the employee on the avenues to follow. In terms of finances, an employer is required to offer a medical cover that is reasonable as per the position of the employee (Halbesleben & Rotondo, 2007, 33). Paternity – After a father has been blessed with a child they are also entitled some leave days to celebrate and bond with the young one. In the United Kingdom, new fathers are given 1-2 weeks after the child has been delivered. Adoption – An employee can choose to adopt a child rather than have their own. Whereby an employee decides to take this route, the set laws in the United Kingdom are not very clear. Though one might hypothesize that staffs are expected to use their annual leave days to attend to such matters. Dependents leave – When staffs encounter an event that will not make it easy for them to work though it does not relate to them, the employer is expected to release them for a reasonable period. These occurrences include the death of a close relative or when marrying (Halbesleben & Rotondo, 2007, 25). 2.3 Treating Employees Fairly in Relation to Pay It is important that an institution pays its employee fairly as per their agreement. Payment through financial means is a token of appreciation to a member of staff for their time and talent spent working for the organization. There can’t be a satisfactory amount to compensate for time spent working for an organization (Wu & Wang, 2008, 41). However, employers should try as much as possible to pay their staff as fairly as possible. There are three main reasons why employers should pay their staff fairly. These include: Motivation – Research has shown that there is a direct correlation between employees who are paid well and those that are highly motivated. Staffs that are able to meet all their needs will look forward to reporting for work the following day. This is not possible to an individual who is living in misery yet they have a paying job. Staff turnover – When signing employment contracts employees will together with other factors consider the pay. This, therefore, means that if another company offers them more money and other enticements, they are likely to move. An organization should always try to pay its employees well to retain them for the long run. Legal implications –By failing to pay staff well, an organization can be sued for violating labour laws. This can be done by the employee himself or by most likely a trade union. In the United Kingdom, there are certain set parameters that employers must meet when making pay decisions. An example is that you cannot use pay as a disciplinary action (Al-Ahmadi, 2009, 78). This will violate the labour laws of United Kingdom and could lead to serious legal repercussions. 2.4 Discrimination Legislation in the United Kingdom Institutions in United Kingdom have to adhere to equality act of 2010 which speaks about discrimination at work and other setups. The act enacted in the year 2010 protects people within the United Kingdom jurisdiction against discrimination within their workplaces and the society at large. The act replaced all other anti-discrimination laws thereby making it easy to understand and strengthen the protection of individuals. The act specifically set out the various ways in which the law deems illegal to treat an individual. The act came into force in October 2010. This therefore means that any discrimination acts that happened before then are prosecuted with the previous laws. Those that happened later on are prosecuted based on these new laws. Types of discrimination There are various ways in which you can be discriminated against. These are as per the provisions of the equality act of 2010. These ways are; Direct discrimination – This is whereby an individual is treated differently in a negative manner when compared to other individuals. This could be due to their gender, race or disability. Indirect discrimination – This is whereby rules are put in place that apply to everybody within an organization. These rules however will put an individual who has a certain characteristic at a disadvantage Harassment – This occurs where an unwanted behaviour that is related to a certain protected characteristic ends up violating an individual’s dignity and creates an offensive environment to them. Victimisation – An individual could complain about a certain aspect which is not against company policy or any laid down process. They could however be treated unfairly for this, this action amounts to victimisation. 2.5 Good Practice That Underpins Organisational Policies In employment, it’s crucial to be on the lookout for the psychological contract that exists between employer and employee when also considering the physical contract as well. The main function of the psychological contract is so as there is the reduction in insecurity. This is because not all issues of employment have been addressed under the formal contract. The psychological contract in other terms helps to increase trust between the employer and employee. Psychological contract concept attempts to encourage discretionary effort by an employee while at the same time balancing mutual expectations. It gives employees a sense of influence on their roles played within the organization. David Guest writes that managers are the key influencers of performance within an organization. He emphasizes the importance of having a positive psychological contract in the organization due to the role it plays in the performance of the organization. A good example is where a line manager in a petroleum firm is promised to have full responsibility for a certain project. Upon completion of the project, it is discovered that he did not deliver by the agreement. This leads to an effect on trust and the breaking of the psychological contract which eventually leads to low loyalty, earlier exit and lack of discretionary effort. #Activity 3 3.1 Differences between Fair and Unfair Dismissals Any dismissal that involves an employee exercising certain rights that they are privileged to be deemed to be unfair. These rights involve: Pregnancy and other matters that are related to maternity Family issues that are related paternity leave, parental leave, time off for dependants and adoption leave Acting as a representative of an employee in a trade union setup. Issues surrounding pay and working hours. Classification of a dismissal as fair A dismissal can be proven to be fair by the employer if they can show that the dismissal was for the following reasons: Issues regarding employee conduct. Issues on employee ability and qualification to perform the requirements of a task Redundancy Due to a restriction or statutory duty which makes it impossible for the employment to continue Substantial reasons outside this framework that justify the dismissal. The employer needs to show that he acted reasonably and that the reasons used were sufficient to permit a dismissal. 3.2 Importance of Exit Interviews Exit Interview – In the United Kingdom, it's important that you carry out an exit interview. An exit interview allows the employer and employee to be clear on the reasons for leaving the organization. It's important to note that it will not always be easy to conduct these interviews. Most employees prefer not to give their reasons for leaving making these interviews difficult to conduct. These employees also prefer not to give the problems they could have faced in the organization. Through conducting a fair exit interview employers in the United Kingdom are presented with an excellent opportunity to know the levels of motivation amongst the staffs. Employers caton gain insights into the perceptions of employees onto how they view the organization Allen, 2008, 29). Through this, the management is able to deal with any underlying managerial issue or workplace issues. These are important for law suits defence, and eventual success of the organization. 3.3 Best Ways of Managing Redundancies Redundancy is occasioned by the dismissal of an employee due to reason that is beyond the control of the employer. These could be issues regarding matters such as; closure of a certain line of business, diminishment of the job or movement from one location to another. It is rare for employees to be rendered redundant in United Kingdom though the application of technology has led to witnessing of such instances. When this happens, a company needs to make a stable case that making such a move would save the company costs or would be for the betterment of the institution. Key Stages of Managing Redundancies i. Planning This is the first stage of managing redundancy in an organization. At this stage, the HR and line managers have discussions on the effects of the departmental structure necessitude by the events. This is done when the risk of redundancy has become inevitable. ii. Identifying pool for selection This is the second stage. At this stage, managers identify the pool of employees that are more likely to be affected by the redundancy. To be fair during this stage, it is important that an organization employs the redundancy selection criteria. iii. Seeking Volunteers In this stage an employer seeks to have people volunteer for early retirement. If this goes on successfully the need for compulsory redundancy will be alienated altogether. iv. Consulting Employees In cases where less than 20 employees are being rendered redundant, it is not mandatory to have consultations. When 20-99 employees are being rendered redundant the recognised trade unions have to be consulted. There needs to be consultations 30 days before the first dismissal within a period of 90 or less days. This has to be done before notification of redundancies have been issued. In cases where more than 100 employees are being laid off, the consultations need to happen 45 days before the fits dismissal within the same company for a period of 90 days. v. Selection Once consultation is complete, the employer chooses staff from the selection if there were no enough volunteers. There must be subjective criteria such as length of service or attendance records. vi. Appeals and dismissals All employees selected for redundancy have to be notified and they are invited to a meeting. There must be another consultation meeting on the same. The employer then makes the final decision once these consultation meetings have been held. vii. Suitable alternative employment Employers consider the availability of another job for these employees. As per the law entitlement to statutory redundancy payment is removed if an employees refuses to take up another job offered by the organization. viii. Redundancy payment Once decided that there are no other available alternative employments and that no appeals have been made, the company now needs to make a redundancy payment to the affected employees. Employees who have served the company for more that two years are entitled to the minimum redundancy payment. ix. Counselling and support Managers should be well trained on how to handle situations surrounding redundancy. They should conduct themselves with sympathy and clarity. A well-designed redundancy programme should also train employee on how to look for another job. Conclusion To finalise, this assignment has made it clear that human resource management practices are almost similar in most parts of the globe. The differences that could happen are caused by cultural differences or legislations (Idris, 2007, 37). The United Kingdom has proven to have clear policy guidelines on matters employment. The only debate is on discrimination, though as evidence the country is making strides towards the right direction. Through the availability of these processes and procedures, companies can conduct their business without the intervention of the state. Companies through following the rule of law will also be able to maintain a strong psychological contract which is important in improving morale and motivation of employees. This enables it to deliver its objectives. Works Cited Al-Ahmadi, H., 2009. Factors affecting performance of hospital nurses in Riyadh Region, Saudi Arabia. International Journal of Health Care Quality Assurance, 22(1), pp.40-54. Allen, D.G., 2008. Retaining talent: A guide to analyzing and managing employee turnover. SHRM Foundation Effective Practice Guidelines Series, pp.1-43. Beauregard, T.A. and Henry, L.C., 2009. Making the link between work-life balance practices and organizational performance. Human resource management review, 19(1), pp.9-22. 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The impact of organizational justice on employees' pay satisfaction, work attitudes and performance in Chinese hotels. Journal of Human Resources in Hospitality & Tourism, 7(2), pp.181-195. Read More