In every business, organization employees play a very crucial role in order to make business effective and successful. In the absence of qualified and skilled personnel’s, business enterprise can nor survive its business activities and functions. In order to survive business functions smoothly, management have to develop effective policies and practices which is suitable for human resource. Human resource management department have major responsibility to develop working practices and strategy for employees so as they can effectively perform their job. In a simple word it can be said that human resource management is a process s of recruit, select, manage, motivate and control the employees so as they can able to achieve the predetermined objective of organization. In this project report, various function of human resource management has been addressed with respect of Holiday inn hotel. Furthermore, importance of human resource planning and its impact in the business enterprise has been studied in this report. The significance of motivation techniques and their influences
1.1 Difference Between the Personnel Management and Human Resource Management
Personnel management and human resource management is quite different from each other. There are various difference among these two term which are as follows-
- Human resource management is a modern approach of managing people and their strength in the organization (Armstrong and Taylor,2014). On the other hand personnel management is a traditional approach of managing people in the organization which focuses only on the outcomes. They do not focus on the employees’ requirement and need.In the Personnel management firm treats their employees as a cost factors or machine of corporation. Holiday Inn hotel adopted the concept of human resource management whereas Marriot hotel adopted the concept of personnel management.
- Personnel management focuses on the personnel administration, employees welfare and labor relation. On the other hand human resource management concentrate on acquisition, development, motivation, maintenance of human resource in the corporation.
- Human resource management assumes that personnel are very important assess for the business organization. On the other hand personnel management believes that individuals are as a input for achieving desired output.
1.2 Assessment of Human Resource Management Function
Human resource management is a very essential aspect in the organization through which firm can manage personnel in order to attain determined objective. It is a process of hiring and developing employees so that they become more valuable to the business enterprise. In the context of Holiday inn hotel, its major objective is render quality services to customer and earn maximum market share in the UK. In order to achieve this purpose, cited venture have to consider on various functions of HRM which are as follows-
HR planning- In this function of HRM research is very important through which information is collected and analyzed to identify current and future human resource requirements and to forecast changing values, attitudes and behavior of personnel and their impact in the business organization (Bamberger, Biron and Meshoulam,2014). In the Holiday inn hotel, HR planning assist in identifying the actual requirement of workforce in order to accomplish organizational goal
Organizing- In this function, tasks are allocated among its members, relationships are identified and activities are integrated toward common goal. Holiday inn hotel management can distribute the various assignment among the workforce and set business function according to objective.
Directing- Directing means activating employees at various level in the organization and making them motivated in order to achieve desired task. Cited venture direct and guide the employees so as they can effectively perform their job
Controlling- It is a very essential function under which cited venture management control and monitor the actual performance of employees (Bloom and Van Reenen,2011). In this function, the performance of employees is checked, verified and compared with the plans.
1.3 Evaluation of Roles and Responsibilities of line Manager in the Holiday Inn Hotel
Line manager is a very important person in the organization who create the link between the top level management and worker or staff members. The major roles and responsibility of line manager is to maintain the healthy relationship between the department of organization. He/she is obligate to monitor and evaluate the employees performance according to desired outcome. In the context of Holiday inn hotel, in order to achieve the predetermined objective line manager have various responsibilities which are as follows-
- Maintain Healthy Relationship- Line manager have major responsibility to maintain the healthy relationship between the lower level management and top level management. Line manager creates the link between the higher authority and workforce. Staff member can communicate with higher authority with help of line manager because he/she create link between both of them
- Performance Appraisal- In the organization while performance appraisal processes may be designed by HR professionals, they are implemented by line manager. Employees performance and behavior are assessed and rated by direct line manager.
- Disciplinary Employees- Discipline in the workplace begins when line manager sets out his expectations with his team. These expectation may be supported by policies and procedure produced by the HR department.
- Performance Related Pay- In the organization when pay scale sets according to employees performance then line manager play a very crucial role. Performance rating from line manager can influence the amount of increase employees receive, with top talents receiving more than average workers (Boxall and Purcell,2011).
1.4 Analysis of the Legal and Regulatory Framework Impact on Human Resource Management
In order to provide the protection and security in the context of employment, UK government has made some legal legislation and coded of conduct which every business enterprise in UK have to follow. This legislation has major aim to render the security to workforce against their employment. In the Holiday inn hotel, HRM department have to consider the various legal framework which are as follows-
Equal pay act 1970- According to this act company cannot partiality with candidate on the basis of gender. In the organization, male and females should equality treated and their salary and promotion should on the basis of their performance. In the business organization, all employees should treat as same and their salary and promotion should done according to their efficiency. For example in the UK many company believes that male employees are more efficient and hard working as compare to female employees(Bratton and Gold,2012). So that management gives preference to male candidate while they provide promotion and increment. In order to remove such kind of mentality from the business organization, equal pay act has made. With assistance of this legislation, company cannot any partiality with any candidate at the time of recruitment and promotion.
Discrimination act 2010- As per this legal framework, in the business organization there should not any kind of partiality and discrimination at the time of recruitment and selection. This act has made in order to provide the protection to individual for employment and with the help of this legislation company cannot make partiality with any candidate at the time of recruitment, promotion, training. As per this act, management cannot discriminate any candidate at the time of recruitment on the basis of their average, gender, culture, region and personal reference.
2.1 Analyzing the reason of human resource planning
Human resource planning is very significant process in business organization under which management can estimate the actual requirement of employees. With assistance of this they can estimate actual demand and supply in business enterprise.. In a simple word it can be said that human resource planning is process under which manager determine the current and future requirement of workforce (CHUANG and Liao 2010). In the context of Holiday inn it is facing the problem of employees turn over. So its HR manger requires to develop a systematic HR planning through which manager can easily manage the demand and supply of workforce. With assistance of proper HR planning, company can also easily survive in the surplus time of business.With the help of HR planning, company can forecast future requirement of human resources and organize training programs in the future. Employees turnover rate can estimate by organization and according to that future recruitment can plan.
2.2 Analyzing the stages of human resource planning
As per the above discussion it has been ascertained that by design the proper human resource planning, Holiday Inn hotel can overcome the issue of high employees turn over.HR manager can use the several stages while it planning for human resource which are as follows-
- Assessing Human Resource- The assessment of HR begins with environmental analysis, under which the external and internal environment are analyzed to assess the currently available HR inventory level. In this stage, HR manager find out the internal strengths as well as weakness of the organization in one hand and opportunities and threats on the other.
- Demand Forecasting- HR forecasting is a process of estimating demand for and supply of human resource in an organization. In this stage, HR manger estimate and forecast the future demand of employees in the business. Future human resource requirement can estimate with the help of organization’s current human resource situation. In this stage, HR manager can forecast the demand of human resource in the future and analyze the condition of labor market.
- Supply forecasting- According to the demand of human resource in the business, corporation organize the recruitment and selection programs.
- Matching Demand and Supply- In this stage, HR manger match the actual supply according to the demand of human resource in the organization (Dessler, 2016). The matching process refers to bring demand and supply in an equilibrium position so that shortage and over staffing position can resolve.
2.3 Comparison of current recruitment and selection process with another organization
Recruitment and selection is an essential process in the corporation through which company can hire new skilled and qualified employees. By this process, company can fulfill the requirement of workforce and attain its desired outcome within a time period. In the context of Holiday inn hotel, it organize the telephone interview before face to face interview. In this recruitment process, HR manger invite the candidate by telephonic round under which manager ask some question to the candidate such as what are your life goal, what is main motivation in applying for this goal, tell me something about your self etc (Grum and Saks, 2011). When the candidate select in the telephone round then manager invite them for face to face interaction,. In the cited venture, manager does noit take any kind of aptitude test , written test and group discussion. On the other hand Marriot hotel conducts recruitment programs on the basis of external process under which it publish advertisement for recruitment in the print media and electronic media. While application gathered in the HR office then manager shortlist of application. After that manger invite candidate for interview under which they candidate have to face three round that is aptitude test, group discussion and personal interview. Internal recruitment and external recruitment are completely different from each other. In the internal recruitment, company does not invite any candidate from outside of the organization. In this manner Only HR manger promote, transfer and enlarge the responsibility of employees. On the other hand in the external recruitment HR manager prepare the documentation of recruitment and provide the information about vacant position. After than HR manger conduct interview and analyze candidate efficiency and quality for desired position.
2.4 Evaluation of Effectiveness of Recruitment Process
As per the above discussion it has been ascertained that Marriot hotel and Holiday inn hotel have adopt the different recruitment and selection process. It has seen that Marriot hotel conducted the various round of interview while its manager recruit the candidate in the organization. Its manager organize three round of interview that is aptitude test, group discussion and personal interview (Guest, 2011). This is more suitable criteria for analyze the efficiency of individual for vacant position. With assistance of this long process of recruitment, Marriott hotel can effectively analyze and evaluate candidate performance. On the other hand Holiday inn hotel has not adopted the effective recruitment process because its manager has not conduct the aptitude test and group discussion. Furthermore, telephone is not more suitable and safe mode of taking interview. By use of recruitment process, company can hire and recruit the new candidates in the business at global level. External recruitment is more effective as compare to internal because by this it can search many new skilled and effective candidates.In the external recruitment, company have opportunity for hire skilled and qualified candidate from outside of organization. On the other hand internal recruitment is less expensive because manager hire on,y internal employees.
A case study on HR- HR Case Study Review on ASDA Company
3.1 Assessment of the link between motivational theory and reward at Virgin Media
As per the given case study, it has been understand that Virgin Media has created merger of NTL, Telewest and Richard Branson's Virgin Mobile. In the present time, it is a part of Liberty Global PLC which is one of the world largest international cable companies. Also, in the UK, organization is of the firms which has provided quad pay and has also invested £13 Billion to own the UK’s largest fibre optic network. To attain these all objectives, there are huge numbers of employees who are working on different projects of Virgin Media. In this context, management has required effective motivation techniques to motivate them. For this, organization has used Maslow’s theory for motivation (Harzing and Pinnington,2010). Under this, management has organized annual employment survey where different values have developed by Virgin Media by considering opinions of the staff members. To increase the involvement of personnel in this survey, top management has given rewards to employees for their best inputs with the aim of increase their effort levels and inputs. Maslow’s theory has enhanced the contribution of workers in different business operational activities. For example, at the second stage of following model i.e. security, sufficient relaxation time gives by Virgin Media to its employees. This helps them to stress free for some time from workplace pressure. The small duration of rest boost-up to increase efforts for attains objectives.Due to this, the cited organization has seen year by year improvement where in 2012, 82% workforce has engaged in various business activities because of the motivation strategy and reward system. The following example shows that there is a link between motivational theory and reward at Virgin Media.
3.2 Evaluation of process of job evaluation and other factors determining pay at Virgin Media
To evaluate job, Virgin Media has used a systematic process of job evaluation. From the assessment of the following procedure, it has found that there are some steps of this method. Under this, management has firstly evaluated objectives of job evaluation which has stated the reasons of job assessment practice. After this, job analysis course for the particular position has carried out where it has categorized into job description and job specification sections. With the help of this, the required information about various aspects of jobs has obtained. Job description has assisted the HR manager of Virgin Media to create a job profile for specific job position. While job specification has facilitated to prepare specification statement related to skills, experience, knowledge and abilities of candidates. On the basis of collected information from the above stages, HR manager of the cited organization has developed job evaluation program. By considering the outcome, a wages survey has taken place where a pay structure for each job has decided. Job classification has the last stage of job evaluation process where assessment process has stated that according to pay scale, jobs have categorized in to different sections.
There are also some other factors to determining pay at Virgin Media. These are reward systems, attendance bonus, performance-based pay etc. Employment stability has one of the element in this direction where the employees of the organization has felt their jobs are secure and they have gained expected wages rate for their work. From the evaluation of other factors of find pay at cited firm, it has identified that gender difference issues have not occurred at the workplace of Virgin Media at the time of setting of wages for same job positions (Jiang, Lepak, Hu and Baer 2012). Along with this, company productivity has increased with the time. This component has influenced the wages rate of the cited organization.
3.3 Assessment of different contexts how effective is the reward systems at Virgin Media
Virgin Media has used various rewards systems in different context where the aim of this is to motivate the employees in an effective manner. Evaluations of preferred remuneration scheme in diverse conditions are as follows:
Extrinsic versus intrinsic reward system: Extrinsic remuneration system has followed by Virgin Media to motivate operational and middle level personnel. For this, management has given promotion, bonus and other kind of tangible and non-tangible benefits to the employees. While intrinsic reward systems have applicable for senior management level because they have play key roles in the direction of setting of objectives and strategies to attain the mission and vision of the company. It is an intangible reward system which gives for recognition and they are intangible in nature.
Financial versus non-financial reward system: Financial rewards can be categorized into direct and indirect remuneration which has included incentives, salary, other kinds of financial rewards etc. Apart from this, non-financial rewards system has referred to recognize efforts of the employees, effective leave management; enhance roles and responsibilities, job rotation etc (Kehoe and Wright,2013). Both reward systems have used by Virgin Media to bring the improvement in the productivity of personnel of different organizational level.
Both of the rewards systems have different in nature. In intrinsic reward method, job rotation, job enrichment, short work weeks etc are offer by management to employees. Money, promotions, and fringe benefits are part of extrinsic reward systems. But in financial reward methodology, company gives wages, bonuses, profit sharing and other additional benefits such as pension plans, paid vacations, paid sick leaves and purchase discounts gives to staff members. Along with this, in non-financial reward methods, these focus over making life on the job more attractive of personnel.
3.4 Examining the methods of Virgin Media to use the monitor employee performance
From the given case study of Virgin Media, it has clearly demonstrated that company is operating its business at international level. It has only possible because of the excellent efforts of the employees who are working are various level in the organization in different nations. In this situation, it becomes important for the company to monitor the performance of personnel to determine the recital gap. By considering this, some methods of judge the performance of workers by cited firm are as follows:
360 degree feedback: It is a process in which employees receive anonymous and confidential feedback from the people who are working with them. Mainly, it has included managers, peer groups, team member, direct reports, management etc. Virgin Media has used 360 degree feedback method to get better understand of strengths and weaknesses of personnel and take right actions to resolve them. This process helps individuals to know which areas they have to focus or need improvement.
Management by objectives: It defines the process of setting objectives in the organization to with the aim of give a right and proper direction to the staffs. Here, some goals have set out by management of Virgin Media for the employees so that they can know what they are supposed to do at the workplace. It has clearly defined individual roles and responsibilities and helps them to take future course of actions to attain those goals. An MBO method has assisted the cited organization to judge performance of the employees on the basis of set objectives. With the help of this, company can judge the performance of the staffs in probation period. Under this, some criteria such as attendance, attitude etc taking into the consideration.
4.1 Identification of the reasons for termination of Faisal’s employment contract with the Chicken Master and generally explains other reasons for cessation of employment
From the given case study, it has been clear that Bob Jones has appointed Faisal who was the Chicken Master with 15 years of restaurant management experience to run his restaurant. But after 6 months Bob’s has terminated Faisal’s from employment because of his poor performance and violation of company policy. For example, front of store was not properly cleaned and arranged, the kitchen was not cleaned, food was not prepped and employees were not being supervised by Faisal. Along with this, he has frequently taken time off for personal business without informing anyone during the working hours. One night, Bob’s went to check something in the back office and he has found that Faisal daily looked pornography and spend most of the time to email his wife, help in complete the homework of his daughter and designing of his own restaurant (Mathis and Jackson, 2011). As per the employment contract of the Chicken Master that employees were not use the company assets for their personal use. But in the case of Faisal, Bob has found that he has not followed the contract rules and regulation. So, these were the reasons due to restaurant owner was terminated Faisal from employment. In general, other reason of cessation of employment by an organization with its employees are violation of the company code of conducts, breach of contract, threat of negative behaviour, falsifying records, harassment, failing an alcohol or drug test, lying etc. As per the UK government act, Default Retirement Age (DRA), an employer can force its employees to retire at the age of 65. With the help of this legislation, Chicken Master Owner could force Faisal to get retirement from the job without terminating from the job. On the other, as per resignation law of the UK, it becomes important for employer to invite resignation letter from the employees. Without informing workers, management cannot terminate from job. As per the given case study, Bob has terminated Faisal from his job without any information and has also not given chance to serve notice period.
4.2 Describing the employment exit procedures used by the Chicken Master
In the Chicken Master, the first step of employment exit process has being the process in which employee notify supervisor of intent to separate in the written form i.e. resignation. It has included the reasons of separation from the firm with appropriate notice period to complete the rest of the formalities.Next stage has completed the exit clearance requirements. In this, staff member and supervisor have met to discuss exit clearance requirement. The issues faced by the workers at the workplace have discussed during the meeting and management has tried to retain that person for more time within the Chicken Master. Along with this, some accountable groups complete and clarify exit clearance requirements. Last step of employment exit procedure used by the cited organization has verified completion of clearance documents and release the employee from his responsibilities. Here, separation date has announced by the management for releasing the staff members from his or her duties on the basis of legal requirements. Along with this, some retirement, pension and other facilities can be offered by Chicken Master to its employees.
4.3 Considering the impact of the legal and regulatory framework on employment cessation arrangement with the Chicken Master
As per the English Law, if a company performs any type of unethical or unfair practices with its employees than Unfair Dismissals act 1977-2015 and Redundancy Payments Act 1967 legislation can be easily applied. In the case of the Chicken Master, Bob has exit the employment contract with Faisal because he has worked against the code of conducts of employment contract like watching pornography on restaurant computer, use system to send mail to his wife, design own restaurant etc. In against of this, Faisal has immediately filed a case at the Employment Tribunal for a charge of discrimination, claiming that he was replaced by a female under the age of 40 and thus was a victim of age and race discrimination. In this case, Unfair Dismissals and Redundancy Payments legislation can be applied on Bob. The impact of this legal and regulatory framework in employment cessation arrangement on organization is owner will have to pay compensation to Faisal in oppose of terminating him without giving him prior notice period (Purce, 2014). It may be possible; restaurant will need to again employee Faisal on his position. Along with this, with the help of ACAS, Bob has to solve the dispute with Faisal. This will assist to educate the employees to follow employment contract norms and regulations.This Code is designed to help employers, employees and their representatives deal with disciplinary and grievance situations in the workplace. Fairness and transparency are promoted by developing and using rules and procedures for handling disciplinary and grievance situations.
Human resource management is essential process under business organization through which company can manage the employees for higher performance and productivity. From this project report it has been concluded that recruitment and selection is very helpful process to hire the skilled and talented employees in the corporation. In addition to this by design the proper human resource planning, cited venture can easily forecast the future requirement of workforce. Furthermore, company can encourage and motivate employees by various monetary and non monetary rewards.
Books and Journals
- Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management practice. Kogan Page Publishers.
- Bamberger, P.A., Biron, M. and Meshoulam, I., 2014. Human resource strategy: Formulation, implementation, and impact. Routledge.
- Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity. Handbook of labor economics. 4. pp.1697-1767.
- Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
- Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave Macmillan.
- CHUANG, C.H. and Liao, H.U.I., 2010. Strategic human resource management in service context: Taking care of business by taking care of employees and customers. Personnel Psychology. 63(1). pp.153-196.
- Dessler, G., 2016. Human resource management. Prentice Hall.
- Gruman, J.A. and Saks, A.M., 2011. Performance management and employee engagement. Human Resource Management Review. 21(2). pp.123-136.
- Guest, D.E., 2011. Human resource management and performance: still searching for some answers. Human Resource Management Journal. 21(1). pp.3-13.
- Harzing, A.W. and Pinnington, A. eds., 2010. International human resource management. Sage.
- Hendry, C., 2012. Human resource management. Routledge.
- Jiang, K., Lepak, D.P., Hu, J. and Baer, J.C., 2012. How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of management Journal. 55(6). pp.1264-1294.
- Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource practices on employees’ attitudes and behaviors. Journal of Management. 39(2). pp.366-391.
- Mathis, R.L. and Jackson, J., 2011. Human resource management: Essential perspectives. Cengage Learning.
- Purce, J., 2014. The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals). 67.
- Scullion, H. and Collings, D., 2010. Global talent management. Routledge.
- Storey, J., 2014. New Perspectives on Human Resource Management. Routledge.
- Ulrich, D., 2013. Human resource champions: The next agenda for adding value and delivering results. Harvard Business Press.
- Werner, J. and DeSimone, R., 2011. Human resource development. Cengage Learning.
- Wright, P.M. and McMahan, G.C., 2011. Exploring human capital: putting ‘human’back into strategic human resource management. Human Resource Management Journal. 21(2). pp.93-104.