Essay: Significance Of HRM In Achieving Organizational Success.

Task 1: Significant contribution of Human Resource Management (HRM) to Organizational Success

1.1: Critical evaluation of the theory and actual practice related to Personal and Human Resource Management in the selected organization:

1.2: The ways HRM functions can contribute to organizational goals and success:

1.3: A brief analysis of how legal and regulatory frameworks impact on human resource management in the two types of selected organization

Task 2: Employee recruitment

2.1: Importance of human resource planning in the organizations

2.2: Stages involved in planning human resource recruitment in the selected organization

2.3: Evaluation of recruitment and selection process of the selected organization.

Task 3: Rewarding Employees for Employee Motivation and Retention

3.1: The significance of the employee rewards system which will facilitate the HRM practices to achieve the intended success of the organization

3.2: The outline of the various theories on motivation and explain the link between reward and motivation.

3.3: The factors that determine the pay and evaluate the process of job evaluation

3.4: Explanation of the methods, organization use to monitor employee performance of the selected organization.

Critical evaluation of theory and practice related to Personal and Human Resource Management

Human resource management is a very essential management process in the overall management system in a company. Human resources are the most needed resource in order conducts a company’s operational activities. It can be said that human resource management help company to appropriate carry out the operational activities a given time. In this assignment, there will be discussion over various aspect of Human Resource management. The company chosen for the current assessment is Laughf’s Supermarket that is the largest retailer company in the Sri Lanka and is also renowned for its operation worldwide. The company is known to have a good human resource operation that helps the following in conducting their operating efficiently and achieving financial stability in the market.  The Non Profit organization which is addressed in this project is Green Building Council OF Sri Lnaka which is nonprofit organization and there task is create better environment for the growth of construction and retail markets. Both of these companies have been operating in Sri Lanka for 10 year now.

Laughf’s Supermarket tends to follow the matching theory of human resource management in the Human resource management process. The matching theory is basically based on having employee which are competent enough in doing their job is perfectly. The major objective of this HRM theory is to derive the best out the organization’s workforce. It can be said that through the use of affection manage the company has to ensure that there number of employees within the company are enough to carry out the operational activities of the firm. It can be said that the theory and the practice of the company also look to performance appraisal; scheme which motivate the employees of the company to perform well in workplace increasing the company’s efficiency in their business activities (Armstrong and Taylor, 2014).

There are various ways in which the HRM helps Laughf’s Supermarket to effectively operate in market.  HRM helps the organization too effectively to manage the Human resource within the firm and make the Human resource competent enough so that the following can operate efficient providing operational stability to the firm in the market. HRM of the company also helps in planning for human resource which will be needed by the firm forthere future activities. HRM in Laughf’s Supermarket also help the firm to calculate the Human resource expense which the company has to take in order to properly operate the workforce of the organization. The HRM within the company help the firm to manage and optimise the Human resource cost within the firm (Collingset al. 2018).

Legal and regulatory Frameworks play and significant role in the company’s HRM. Work health and safety regulation are followed by the firm to ensure that the operational activities with  the firm do not have any negative impact on the employee in an negative way. Legal and regulatory framework related to anti racism and gender equality helps the firm to create safe and positive working environment within the firm. The HRM policy of Laughf’s Supermarket Support the idea of giving opportunity to every employee regardless of their caste, creed and religion. The gender pay gap is also optimized in the firm and the company has remover the income pay gap between male and female employees. This shows that legal and regulatory framework doe have huge amount of impact of the company's HRM activities (Bratton and Gold, 2017).

Evaluation of legal and regulatory frameworks related to Human Resource Management

It can be said that planning in any aspect of business organization is important as it increases the efficiency of the company in order attaining a subjective goal. Human resources planning is also very important for a companies like Laughf’s Supermarket and Green Building Council as it is totally dependent on its Human resources to carry out the operational activities of the company. Human Resources planning is process in which the company decide and plans over the future Human resources strategy and on how they will recruit, train and use there human resources to increase the operational activities of the firm. The importance of Human resources planning in a companies like Laughf’s Supermarket as well as a Non Profit company like Green Building Council as follows:

1. Human resource planning is efficient process through which can build and efficient Human resources which can carry out the operational activities of the firm efficiently. It can be said that through efficient use of Human Resources planning companies cut down on inefficient employees decide on competencies needed by a employee in order to efficient in rendering high level of job performance. In this, the company increases the workforce strength within the company (Brewster and Hegewisch, 2017).

2. Human resources planning also help the company in forecasting the future needs of Human resource that the company needs to have in order to conduct their business operations efficiently. In this company, determine the number of existing employees and the number of employee that is needed by the company in order to complete the forecasted business operations of the company in annual year. This helps the firm have the efficient and estimated amount of employees in the workforce that increase the operational efficiency of the firm.

3. Human resource planning also helps the company to decide there training and developmental procedure which is to make the following more comprehensive and effective to deliver effective employee competency at work place. Human resource planning determines the effective element which should be included in the training and development process of the employee this include off job and on job training of the employee to deliver better performance in the operations of the firm (Chelladurai and Kerwin, 2017).

After seeing the importance of human resource planning within Laughf’s Supermarket and  Green Building Council  it can be said that planning in any department is very important for its developmental activities.

The Stages involved in planning human resource recruitment in Laughf’s Supermarket and Green Building Council are as follows:

Analyzing Organizational objectives: This is one of most important stage which the planning of human resources within Green Building council and Laughf’s Supermarket starts with. The HR department determine the Human resource objectives of the firm, for the initialization of the planning in accordance to the objective which is set by the management of the company in order to get to a stipulated goal.  

Identification of current Human Resource:  After the goal and objectives are set the HR manager look at the current workforce strength. The HR managers look for the number of workers in the company and there competency which will have effect on there operational performance. Therefore by identifying the current workforce and human resources strength the managers plan for further expansion of the workforce within the company.

Analysis of employee recruitment and reward system

Forecasting future demand and supply of Human resources: This is a major stage that is practised in Laughf’s Supermarket.  The HR manager determines the current demand and supply of Human resource in various sectors of company’s operation. Then the company looks at the demand and supply of Human resource in the market to ensure that everything is in control in the future operations of the company (Brewster et al. 2016).

Estimating the gaps in current and future resources:  

This is one of the most important stages which is required in Green Building Council to determine the future need of employees. In this stage the company determine the amount of needed human resources and the current amount of Human resource after which the gap in future and current status is determined to know the amount of Human resource needed for the future operational activities of the firm. If there is need of extra Human resource the company will recruit and of there is demand of lower resource the company will cut down on the Human resource.

As said in the above stage if there is need of extra Human resource the company will recruit and if there is need of lower amount of human resource the company cut down on their current human resource. In this stage the company mainly creates action plan on how this is to be done and what will be the steps taken to recruit or cut the down human resources. Action plan is then implemented and the company recruits and cut down according to the requirement and gets the efficient of Human resource required.

Monitoring and feedback; The companies then monitors there Human resource process monitor the recruitment and selection process providing a feedback and reports at the end of the action plan’s implementation (Marchingtonet al.  2016).    

The companies believe in equivalent to every applicant before recruiting the following which mean every applicant for the recruitment process is approached in the same way regardless of their caste, creed, culture and colour. The recruits believe in having a moral stigma in their employees that will build a positive working environment within the diverse workforce of the company. The training and selection process of the company is as follows:

Recruitment: The recruitment is done on the basis of the applicants competencies and educational qualification. It can be said that through effective competency and educational qualification the applicant can be recruited for further process of the company's training and selection policy. The recruitment within Laughf’s Supermarket is much linear and effective in respect to its competitor. Whereas recruitment in Green Building Council is tougher in comparison to the Laughf’s Supermarket as there are various competencies test which the applicant have to go through to get recruited. Different level of competencies and educational qualification is needed for people applying for different designation. The higher the applying designation the higher is the requirement of competencies and educational qualification.

Training: After the recruitment process the applicant are recruited which are then trained as per the working operations of the company and organzation. In which the organizations train the recruit about the operation which company conduct in their business operations. Training increases as per designation for which the applicant has applied for.  Training test are taken after the training of the recruit are complete.

Selection: After the training test is over the test result depicts the amount o competencies which the trainees have. The trainees who have done good in the test are selected to the human resources of the company. Selection is done to designation to which the applicant applied for.

The above is the selection and recruitment procedure of Laughf’s Supermarket and Green Building Council which states that Laughf’s  has a very simple and effective Recruitment and selection process in comparison of Green Building council which helps the company to derive efficient and competent employee for the operations of the firm (Brewster et al. 2016).   

Laughf’s Supermarket in Sri Lanka provides a wide range of opportunity and facility for both their customers and employees. The recruitment system of the company is highly skilled based and the selection process is a bit tough. To make the HRM practice easy the company already has many ways which provides comfort to their employees. One of them is the reward system. The company provides rewards for the employees who perform best in monthly basis and also in weekly basis. The organisation makes sure that they provide a good service to their employees. The working environment of the company is friendly so that the people can work in peace. Reward by the company helps the employees to bring their inner potentialities. The employee performs much better after he/she gets reward for the first time.

When an employee receives reward he/she becomes more active and try their best to receive the reward again. Laughf’s Supermarket being a retailing company provides retailing products reward for their employees (Bayraktaret al. 2017). They believe that reward system is essential as it will create a good working environment and it will help the company to achieve its goal. The larger the amount of reward is the more the employees do their best performance for gaining rewards.

The decision of the company providing rewards to their employee is included in their HRM policy. The HRM designs a structure for their employees which includes all these policies regarding reward system, motivation and etc.

With good rewards the company motivates their employees by assuring them to fulfil their needs and their demands. While rewards increase the performance motivation increase their self-confidence. Laughf’s Supermarket provides some more facilities to their employees in order to motivate them. One of the most important things that they provide their employees is personal health allowance which includes physical health and oral health. There is every month physical check-up facility which the company provides. Every month on a particular date the employees get physical check-up. If any employee is suffering in the company then the company provides medical facility and pays their bills. Dental check-up occurs in every six months. Another important need which the company provides is the physiological needs. Whether it is food, clothing or shelter the company arranges everything for their employees. The company also provides travel allowance to their employees (Kuvaaset al. 2018). There are many people who come from a great distance and also many employees who do not owe personal vehicles so for them the company provides transport allowance. Apart from all these things the company also provides personal needs. If an employee of the company is following any kind of issue regarding money then the company pays extra money to the employee or sometimes also lend them money. These factors help in motivating the company’s employees which makes easier for them to work.

Laughf’s Supermarket is a prominent company so their criteria for employee recruitment consist many things. For instance their main look out is the qualification of the new comers. In order to be an employee of the organisation the basic qualification is graduation. No matter what post the employee will get after selection but they have to be graduate to enter in the organisation. Another factor which the company demands is the experience. Since Mark and Spencer is a retailer company so the person at least have one year of experience. The company does not compromise in their recruitment process. The HRM of the company is very strong. They do not want to take any risk in future for employees’ mistake.

 On the other hand the pay Scale within Green Building Council is decided by the government it depends on the positions and designation in which the employees are working in. In other manner, the employees are paid according to the contribution scale to the firm. This shows that position of th employees in the company matter on there pay scale. Further extra contribution is also paid off in form of bonus given to the employees as performance appraisal.

The HRM of Laughf’s and Green Building Council monitor employee performance. The companies use the method of observation by which they see that how the employee show fascination about their work, the arrival of the employees in office, their behaviour with their clients and customers etc. They maintain a performance track record which the HRM checks at the end of the month (Mone and London 2018).

Laughf’s Supermarket provides opportunities for their customer at the same time they keep eye on their employees. The performance of employees is also measured by their determination and their contribution for the company (Lindiaet al. 2014). The HRM checks that whether the employees are contributing anything for the company or not. Here the contribution means that how the employees are making effort, whether they are working with enthusiasm or not and how they are representing their given task. On the other hand Green Building Council looks after the employee working approach and workforce performance to determine on whether the workforce is productive enough to create better operational environment which is the core objective of this non profit organization.

The employee monitoring policy helps the company to enhance their performance quality. Monitoring employees can help the company to understand their flaws and problems which the company can fix for its betterment.

Conclusion:

Concluding in the light of above context It can be said that Laughf’s Supermarket has very prominent Human resource management system which helps the company in having efficient human resource for their business activities. Whereas Green Building Council has more dependent human resources which depends of government recruitment and UN recruitment although the Human resources management is very efficient to deliver effecting operation from the organization’s workforce. The company also follows effective strategies and policies in Human resource which strengthen its operational strength and give the firm financial stability in the market.  Through human resource planning process that the companies follow it can be said that companies are very focused on getting efficient human resource for meeting the growing demand of the products and services rendered by the companies. It can be said that through efficient use of Human resource selecting, training recruitment strategy the company is able to train their recruits in a efficient way making them competent enough to operate efficiently in the operational activities of the firm. It can be said that a company should plan and select there human resource properly which are competent enough to deliver work on time and to ensure that the operational activities of the firm are not hampered due to weak human resource of the companies.

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