• Understand the difference between personnel management and human resource management
• Understand how to recruit employees
• Understand how to reward employees in order to motivate & retain them
• Know the mechanisms for the cessation of employment
Human resource management is an important function that is required to be carried out in organisation for the purpose of managing employees in a way that ensures positive level of contribution towards accomplishing organisational goals. However, the efficient management of human resources requires the application of different strategies and tactics by the human resource managers so that higher overall success can be achieved. The human resource managers facilitates the important organisational functions such as the decision of expansion of business strategies and practices, as they help organisation through human resource planning which aids them in sufficiently performing expansion of their business processes and activities efficiently. The human resource managers are also responsible for planning resources so that they can meet out the employment needs efficiently, and at the same time, they also performs the termination of employees based on the requirements of organisation (Gary, 2010).
This report is focused towards performing a critical assessment of the HRM roles in respect to Pinkberry and the ways in which the HR can assist the expansion strategy of Pinkberry in a positive way. The analysis also focuses towards the role of motivation and performance by the HR manager in umHumamanaging employee performance at Pinkberry and finally, there will be an analysis of the employee exit processes as followed in respect to Pinkberry.
Role of HRM and the HR Manager
This section of analysis focuses towards the role of HRM and HR manager in organisations like Pinkberry which is famous in selling frozen and fresh yoghurts across different markets. The important areas of discussion in relation to HRM and HR managers are discussed as follows:
Difference between Personnel Management and Human Resource Management: The main difference between these concepts is that personnel management is known as traditional approach to managing human resources whereas human resource management is modern approach to managing human resources. The areas of importance in personnel management include personnel administration, employee welfare and labour relations whereas human resource management is concerned with acquisition, development, motivation, training and development of employees. The satisfaction of employees became the prime concern in personnel management whereas human resource management is concerned with achieving organisational tasks and goals (Lussier, 2011).
Different Functions of HRM: There are different important functions of HRM that are applicable in respect to organisations like Pinkberry. The nature of Pinkberry’s operations indicate that the organisation is completely involved in providing fresh yoghurt in the form of its traditional stores and also through franchising concept, and in order to manage these specific areas of operations, there are different specific HRM functions that are essential. The company is also growing rapidly in both the domestic and international markets and this lead to diverse functions of HRM that are carried out. Some of the major ones include recruitment, selection and training of new recruits, professional development, compensation management, legal compliance etc. In respect to the purpose of these specific HRM functional areas, there exists specific purpose behind their performance. As for instance, the recruitment and selection function is aimed at meeting out the human resources need at Pinkberry which has been growing at a rapid pace. The training and professional development is aimed at enhancing the skills and abilities of employees so that they can not only manage the production process, but also assists their franchisees all across the world in performing the management of their operations. The legal compliance function of HRM is aimed at ensuring that there is adequate level of compliance being achieved through its expertise employees across all its franchisees. These are the different important HRM functions and their purpose as applicable in respect to Pinkberry (Pinkberry, 2015).
Roles and Responsibilities of Line Managers in HRM: The line managers have an important role to play in the process of performing the management of operations of an organisation. The line managers are responsible for managing the individual employees within organisation, and they then report the performance to the senior level managers. In respect to small organisations with decentralised HRM such as Pinkberry, the role of line manager is crucial and they are best represented as front line managers in such small organisations. The front line managers are responsible for managing day to day management of people, managing operational costs, allocating works, monitoring their performance, and measuring performance. These important roles and responsibilities are required to be managed by line managers, and in the context of Pinkberry, the frontline managers or line managers are required to make sure that adequate quality level is maintained in different products that it offers, assisting the management and operations at franchisees operating across the world and many more (The role of line managers in HR, 2014).
Expansion Plan and Growth Strategy
The expansion of business and achieving higher level of growth is being expected by organisations in their operations. In achieving success with respect to such expansion and growth strategy of business, the role of HRM function is crucial. In this regard, the important aspects related to HRM in the expansion and growth strategy of Pinkberry are discussed as follows:
Reasons Why HR Planning is Important: HR planning is concerned with making adequate arrangements with regard to current and future HR needs of an organisation. The planning is done by HR managers with a view to ensure that there is sufficient number of human resources available to them in performing their operations in a highly efficient manner. HR planning is therefore highly important to an organisation in the sense that it allows businesses in efficiently meeting out their requirements for human resources. Apart from this, the growth and expansion decisions of the company can be efficiently addressed through a well devised HR planning process because it allows them in meeting out the need for additional human resources in a positive manner. This suggests that the role and importance of HR planning is crucial from the point of view of meeting out the need for additional resources within organisation (Taylor, 2002).
Stages in HR Planning: There are certain important stages involved in the HR planning process, and the important stages as involved within it are indicated as follows:
- Assessing current HR Capacity: This has been the first step that is required to be carried out as a part of HR planning process (HR Planning, 2014).
- Forecasting HR Requirements: This stage involves the forecasting of HR requirements. As in the given case of Pinkberry, it has been analysed that the company has expansion and growth plans, and this implies that there would be future requirements of human resources in assisting such expansion plan (Taylor, 2002).
- Gap Analysis: This is the third stage and it involves performing a gap analysis with a view to assess the gap in current human resources and the future requirements for additional human resources (HR Planning, 2014).
- Developing HR strategies in Supporting Organisational Strategies: This is the final stage whereby important HR strategies are required to be developed with a view to supporting organisational strategies. The HR strategies given the current situation of Pinkberry should be to perform the recruitment of additional staff so that such expansion and growth strategy of the company is positively addressed (HR Planning, 2014).
These are the important stages that must be considered as a part of performing the HR planning process in an organisation.
Recruitment and Selection in Pinkberry as Compared to Large Organisation: The recruitment and selection of candidates is essential to be carried out in respect to every kind of organisations, and it is also applicable in respect to Pinkberry as well. An analysis of the case of Pinkberry also indicates that the organisation has specific recruitment and selection process in recruiting required number of human resource talent by the organisation. As for instance, the applicants are required to send their resumes which are being reviewed and this is followed by the interview process whereby the selected applicants are called upon to examine their skills and abilities. The applicants that efficiently pass this test are given the employment opportunity at Pinkberry and they are provided with necessary training and opportunities aimed at achieving improved skills and abilities in their performance. In respect to large organisations, there are various processes such as personality tests, psychometric tests and many more are carried out in order to address the human resource requirements. In terms of effectiveness is concerned, the recruitment and selection process is highly effective because the job profile is not that specific and secondly, Pinkberry is not a large organisation which requires highly specialised processes in employee recruitment (Working at Pinkberry, 2014).
Motivation and Performance
This section analyses different important aspects related to employee motivation and performance and they are analysed separately as follows:
Link between Motivational Theory and Reward Management: The linkage between motivational theories and reward management is positive. There are different motivational theories that are applied by HR managers in motivating their employees and they are directly or indirectly related to reward management. As for instance, the motivational theory of Maslow hierarchy of need suggests that employees are being motivated by satisfying their higher level of need in the hierarchy, and such higher level of need is mainly driven by rewards. The importance of motivational strategy application is to satisfy employees, and rewards management is an important way in which HR managers motivate their employees. This rewards management can be regarded as an essential component of motivational theories as applied by HR manager.
Process of Job Evaluation Determining Pay: The process of job evaluation is crucial in determining the pay for a job because it is the job evaluation that indicates the systematic assessment of a job in terms of its value or worth. Based on the identification of value or worth of job evaluation, the pay factor can be determined. It is usually the tougher job has higher pay associated with it and vice versa. The complexity nature of the work profile is a crucial indicating factor that can determine pay (Taylor, 2002).
Effectiveness of Different Reward Systems: There are different reward systems that are utilised in motivating employees, and these reward systems as utilised have their own effectiveness. As for instance, rewards systems can be in the form of monetary rewards or it can be in the form of non monetary rewards. There has been direct level of effectiveness of both these rewards systems, as monetary rewards directly motivates employees in doing tasks with higher efficiency whereas non-monetary rewards systems allows for motivating employees in a indirect way. They have different level of effectiveness in motivating different types of employees within organisation (Taylor, 2002).
Methods in Monitoring Employee Performance: The methods that could be utilised in monitoring employee performance could be by focusing on different important attributes of employee quality. These include quality, quantity, timeliness, cost-effectiveness, creativity, adherence, and compliance with the applicable policies and procedures. The performance measure system involving specific processes could also be utilised in monitoring and measuring employee performance (Hakala, 2008).
Employee Exit Processes
Employees sometimes have to exit from their role and operations in organisation, and the important factors in this respect in the context of Pinkberry are analysed as follows:
Reasons for Termination of Employment: There could be different reasons for the termination of employment in respect to organisations such as Pinkberry. These could be in terms of inefficient compliance with the organisational policies, or it could be because of non performance of employees as per expectations of management, or it can also be because of declining profitability performance of the organisation. In respect to Pinkberry, the termination of employment could happen because employees might make mistakes in the process of preparing yoghurts, or employees disrespecting their customers or not serving them as per the requirements (Armstrong, 2011).
Employee Exit Procedure: The employee exit is also carried out in a specific process within organisation, and in respect to Pinkberry, the employee exit by way of providing an application to the management whereby its acceptance would lead to termination of employee from the organisation. In respect to large organisations, there are exit processes such as employees requiring undergoing a exit interview whereby they are asked for their reasons for exiting from organisation, and the changes they suggests for organisation’s improvement (Davenport, Crotty, Torres and International Labour Office. 2000).
Impact of Legal and Regulatory Framework on HRM: The legal and regulatory framework has a direct level of implication in respect to the performance of HRM function. This is evident from the fact that there are employment regulation act, employee discrimination act, fair pay act and many more that governs the HR function of an organisation. It is therefore essential that the HR manager of the organisation should focus towards performing a critical observation of such legal and regulatory framework in ensuring that their roles and responsibilities are efficiently carried out within organisation (Selwyn, 2006).
In this report, a critical assessment has been carried out with respect to the role and function of HR manager and the specific organisation that has been undertaken as the context in the given report is Pinkberry. The analysis has indicated about the role of HRM and HR manager at Pinkberry, and the necessary HRM strategies that must be considered by the organisation in order to address their support the growth strategy of Pinkberry through franchising. The role of motivation by the HR manager and its impact on performance is critically assessed in this report, and there has also been the evaluation of exit processes that have been managed across Pinkberry that has also been carried out. Overall, the analysis indicated significant level of findings with regard to Pinkberry’s performance in relation to HRM strategies.
Armstrong, M. 2011. How to Be an Even Better Manager: A Complete A-Z of Proven Techniques and Essential Skills. Kogan Page Publishers
Davenport, G., Crotty, M., Torres, P. and International Labour Office. 2000. Termination of employment digest. International Labour Organization.
Gary, D. 2010. Fundamentals of Human Resource Management: Content, Competencies And Applications. Pearson Education.
HR Planning, 2014 [Online]. Available at: https://hrcouncil.ca/hr-toolkit/planning-strategic.cfm [Accessed: 05 March 2015].
Hakala, D. 2008. 16 Ways to Measure Employee Performance [Online]. Available at: https://www.hrworld.com/features/16-ways-measure-performance-021908/ [Accessed: 05 March 2015].
Lussier, R.N. 2011. Management Fundamentals: Concepts, Applications, Skill Development. 5th Ed. Cengage Learning.
Pinkberry, 2015 [Online]. Available at: https://www.pinkberry.com/franchise-faq [Accessed: 05 March 2015].
Selwyn, N. 2006. Selwyn's Law of Employment. Oxford University Press.
Taylor, S. 2002. People Resourcing. CIPD Publishing.
The role of line managers in HR, 2014 [Online]. Available at: https://www.cipd.co.uk/hr-resources/factsheets/role-line-managers-hr.aspx [Accessed: 05 March 2015].
Working at Pinkberry, 2014 [Online]. Available at: https://www.job-applications.com/pinkberry-application/ [Accessed: 05 March 2015].