Competitive Advantage by HR Planning
1. To what extent can HR planning give a firm competitive advantage?
2. Critically evaluate the selection procedures of a role-play firm (or firm of your choice approved by the module leader) by comparing the short-listing and interview procedures against concepts considered as best practice. This must include a discussion of the extent to which the relevant recruitment documentation supports these procedures.
3. Assess the value of 360-degree appraisals for evaluating the effectiveness of the recruitment and selection of staff?
Management of human resource is defined as the coherent and strategic approach towards managing the most valuable assets of an organization that includes the person who collectively and individually contributed towards achieving the key objectives being followed by the organization. Since the beginning of the 21st century, there has been an increase in the claim that the path towards competitive advantage can be achieved by personnel (Hunger and Wheelen, 2003). In such a situation, where identical non- living resources such as software, hardware, technology, plants, raw materials, and finance ae easily accessible for having a healthy competition with the organizations by having different performance in the economy amongst business organizations.
In order to be competitive in nature, business organizations must stay attributed towards these variations and differences when people perform (Boxall & Purcell, 2003). For the managers at senior level in the business organization, the responsibility is planning to respond to the pressurizing aspect related to continuous trends, the selection and recruitment, attraction, utilization, future and development of the business organization ought to be having consistency in the functions of line (Armstrong, 2009). These functions of line include production, marketing and finance within the duration of which strategic plans.
In the light of this concept, this report will be focusing on the concepts of human resources. Firstly, the limit to which planning of HR can provide competitive advantage will be discussed. Further ahead, a critical evaluation will be conducted for the procedures of selection. In addition to this, an assessment will be conducted for the importance of 360 degree appraisal for the evaluation of effectiveness related to the procedures for recruiting and selecting the members of the staff.
Human resource planning is the process by which various processes within an organization are aligned together to achieve the final goals of the organization effectively and efficiently. Effective human resource panning however is possible only when elaborative findings are gained from internal analysis of the organization. With HR planning several benefits can be gained such as motivated working force, positive culture in the organization, lesser conflict and skilled employees. Each of these benefits in turn leads towards making an organization gain competitively from HR planning. In consideration with the strategy of competitive advantage, the organization of Pepsi has been considered as a strong case regarding how an organization must be successful to build and to maintain its brand position by having competitive advantage. In the present era of globalization, the organization of Pepsi is known to be the most successful brand in the entire global industry with the major competitors, Coca Cola (Hunger and Wheelen, 2003). Also, the organization has started to make an extension in the categories of its products in order to be successful in improving their relationship with the customers being targeted by them that involves every segment in the customer market and also be successful in attracting newer base of customers in a significant manner. The HR department of Pepsi Co is known for giving considerable relevance to the managers and brands in terms of strategies. All of this has been taking place due to the involvement of competitive advantage. However, in the situation of Pepsi, the situation has been identified to be different. Not only the HR department has been considering when they had made an improvement in the products but even when an improvement had been made by them in the packaging structure of the products being provided to the customers (Armstrong, 2009). The brand of Pepsi is known to be the one that can be related to each and every youngster all across the globe.
Selection Procedures
Political Factors are inclusive of trends being involved in the laws and the regulations, differentiated conditions in political environment, the ability of entering the markets that are still developing and trends being involved in the environment of non- alcoholic industry. Economic factors are inclusive of Economic Factors recession across the globe, different rate of interest and fear related to the rate of inflation. Social factors furthermore are inclusive of Changes in the preferences of customers within the international and domestic market and customers showing more willingness towards non- carbonated drinks. Technological factors are inclusive of Understanding the use of technology for the stronger presence of its brand in the market by the platform of social network and focusing to introduce new vending machines for widening the availability of its products. This factors can only be dealt with by appropriate planning done by human resource department.
Selection is known to be the final stage involved in the process of recruitment. This consists of choosing the methods by which there is reduction in the list being made for the purpose of covering the vacant position in the organization (Boxall & Purcell, 2003). This is known to be a major decision with respect to employment. The key focus related to the system for HR department at the organization of Pepsi Co has been established by laying emphasis on specific number of standards in order to initiate successful provision of information related to the elements involved in the products of the brand with more accuracy, clarity and reliability. This particular system has been identified focusing mainly on four key functions. These functions are the system to bottle, partners as agencies, functions related to the brand, and the main stakeholders involved like the members of the work force. The HR department of Pepsi can be seen working on the below stated commitments (Hunger and Wheelen, 2003):
- Facilitation of an increase in the level of productivity being delivered by the system
- Provision of improved consistency and quality being presented in the products
- Successful to leverage the level of control within the entire market
- Focusing to maintain and enhance the level of authenticity along with the development of equity with respect to the brand
- The standards of identity and the principles of design has been playing a significant role for the system of implementation. All of the activities being performed have been set with respect to each and every principle and standard
- All of those categories are identified and sorted in order to have a better understanding with respect to those having higher degree of potentiality
Selection is known to be the final stage involved in the process of recruitment. This consists of choosing the methods by which there is reduction in the list being made for the purpose of covering the vacant position in the organization. This is known to be a major decision with respect to employment. For majority of the people at Pepsi Co, this has been identified as a visible stage in the cycle of resourcing as the experience involved in more in relation to the subject or the participant instead of being involved in the stage of planning within the whole process involved (Armstrong, 2009). When there can be perceiving of recruitment being an activity that is positive, there is a generation of an optimum population of candidates seeking the job, selection is known to be inheriting negativity within the fact that there is a probability with an involvement of rejection within the applicants involved. Based on these facts, it can be stated that the managers of Pepsi Co. will be shortlisting applications obtained followed by the time and date of closing and in the duration of five days (Boxall & Purcell, 2003). The criteria of shortlisting is known to be considered in the specification of person identified and must be utilized for the selection of candidates involved in the process of selection.
The human resources will be coming in contact with each and every candidate being short listed, in written form, and to provide advice for the process of selection within the duration of 7 days with a notice (Armstrong, 2009). Within this process, shortlisting of candidates also takes place. This short listing further helps in understanding whether or not the interview selection was successful because with short listing only the most skilful candidates are selected. This particular letter is known to be including a confirmation from the candidates for choosing the job position or understanding if there is an involvement of any specific requirement at any of the stage involved within the process. In the usual sense, it has been seen that the human resources do not come in contact with the candidates being selected that had not been approved for the application as the other ones had been better. However, the department of human resources tends to be coming in contact with the candidates if interns are selected from colleges (Hunger and Wheelen, 2003). If a request has been placed, the department and authorities of human resources will be making arrangements for the managers to be coming in contact with those candidates who are unsuccessful at each and every single stage.
In the process of selection, the candidate is known to be given the right for working with verification for being in compliance with the legal obligation of the organization. Human resources seem to be working in accordance with these activities taking place. There is a need for involving a process that is robust and must take place such that there is an inclusion of competency that is formal on the basis of interviews, presentations for the posts of delivery, along with any other significant assessments of objectivity in alignment with the provision of opportunities that are equal (Armstrong, 2009). In the panel of interview, there will always be an involvement of two or more than two individuals. The panel of interview helps in ensuring that each and every single candidate has an appropriate welcoming and full information regarding the procedures of the organization. This should include the duration as to when they should be expecting a notification from the result of the processes, what they should be expecting in the duration of process, and how the feedback can be obtained by them (Boxall & Purcell, 2003). The tasks and questions of interview will be adequate with respect to the needs of the position and in alignment with diversity and equality.
The utilization of these tests of psychometric can only be conducted by an adequately qualified individual and with respect to the guidelines established by the publisher of test and the most appropriate practice as recognized by the institute of Personnel and Development. The HR department of Pepsi Co is known for giving considerable relevance to the managers and brands in terms of strategies. All of this has been taking place due to the involvement of competitive advantage (Godard & Delaney, 2000). However, in the situation of Pepsi, the situation has been identified to be different. Not only the HR department has been considering when they had made an improvement in the products but even when an improvement had been made by them in the packaging structure of the products being provided to the customers. The brand of Pepsi is known to be the one that can be related to each and every youngster all across the globe.
360 degree appraisal system is a system of obtaining feedback from the members of the organization separated in immediate circle at work. More often, 360 degree appraisal system will be including direct feedback will be including the direct feedback from the subordinates of employee, colleagues or peers, as well as supervisors being self- evaluated (Guest and King, 2004). There will also be an inclusion of certain situation, feedback being availed out of external sources, like suppliers and customer or other stakeholders showing major. It can be considered contrasting with the feedback on upward basis, where the managers are provided with feedback only through the reports in direct form. Since the beginning of the 21st century, there has been an increase in the claim that the path towards competitive advantage can be achieved by personnel (Hunger and Wheelen, 2003). In such a situation, where identical non- living resources such as software, hardware, technology, plants, raw materials, and finance ae easily accessible for having a healthy competition with the organizations by having different performance in the economy amongst business organizations. In order to be competitive in nature, business organizations must stay attributed towards these variations and differences when people perform. For the managers at senior level in the business organization, the responsibility is planning to respond to the pressurizing aspect related to continuous trends, the selection and recruitment, attraction, utilization, future and development of the business organization ought to be having consistency in the functions of line (International Test Commission, 2005). These functions of line include production, marketing and finance within the duration of which strategic plans. This method as an appraisal may not provide an organization with the most effective and efficient leader especially because appraisals motivate an employee individually. An employee at an individual level thinks about his or hers individual goals and aspirations whenever an appraisal is announced. Some employees may not need appraisal of such kind and may only need recognition of their work.
This particular system is mostly received by planning and mapping the particular paths within the scope of development. The utilization of results is also done by some of the organizations in order to take administrative decisions with respect to promotions and payment. By this particular system is known to be extremely useful for the development of knowledge and skills along with the impact imposed over the attitude of the employees. Hence, it is a significant system that can be used for understanding and learning the attitude of employees within the workplace. The following benefits can be enjoyed by this system (Legge, 2001):
- Better understanding about the perspective of employees along with their impact
- Understanding the changes within the behaviour
- Improvement in the trust and communication amongst the employees
360 degree appraisal system is a system of obtaining feedback from the members of the organization separated in immediate circle at work. More often, 360 degree appraisal system will be including direct feedback will be including the direct feedback from the subordinates of employee, colleagues or peers, as well as supervisors being self- evaluated.
Conclusion
For the managers at senior level in the business organization, the responsibility is planning to respond to pressurized business environment for which they need to conduct the process of selection and recruitment. Furthermore human resource attraction, utilization, future and development of the business organization ought to be having consistency in the functions of line managers (Newill & Schackleton, 2000). This essay has critically evaluated the various ways by which recruitment and selection is done in a firm, selected as Pepsi Co. for this report. Further, it was evident that the functions of line include production, marketing and finance within the duration of which strategic plans. When there can be perceiving of recruitment being an activity that is positive, there is a generation of an optimum population of candidates seeking the job, selection is known to be inheriting negativity within the fact that there is a probability with an involvement of rejection within the applicants involved. Based on these facts, it can be stated that the managers of Pepsi Co. will be shortlisting applications obtained followed by the time and date of closing and in the duration of five days (Wite, 2000). The criteria of shortlisting is known to be considered in the specification of person identified and must be utilized for the selection of candidates involved in the process of selection.
References
Armstrong, M (2009), Handbook of HRM practice, Kogan Page, London and Philadelphia.
Boxall. P & Purcell. J. (2003), Strategy and Human Resource Management, Palgrave Macmillan, New York.
Godard J. & Delaney J. T. (2000) Reflections on the High Performance Implications for Industrial Relations as a Field, Industrial/Labour Relations Review.
Guest, D. E and King, Z (2004), Power, Innovation and Problem Solving: The Personnel Managers’ Three Steps To Heaven? Journal of Management Studies, 41 (3), pp 401-23.
Hunger, T.D and Wheelen, T. (2003) Essentials of Strategic management, New Jersey, Pearson Education Inc.
International Test Commission (2005), International Guideline on Computer-based and Internet Delivered Testing, British Psychological society, Leicester.
Legge, K. (2001) “Silver Bullet or Spent Round? Assessing the Meaning of the High Commitment Management/Performance Relationship” in J. Storey (ed) Human Resource Management” A Critical Text (2nd ed).
Newill S & Schackleton .V. (2000) “Recruitment and Selection”, in Bach & K Session (eds), Personnel Management (3rd edition) (Pp 111-36).
Wite, K. (2000), Human Resource Management: Gaining A competitive advantage, 3rd edition McGraw-Hill, Boston.
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