The report would follow the learning outcomes to demonstrate the Human Resource Management (HRM) strategies followed in business. For the discussion, the example of the Global Leader in telecommunication and Home Appliance brand Samsung is chosen to discuss the policies of Human resource followed therein (Paauwe, 2004). A critical view of recruitment, reward and the legal aspects of business HRM are discussed with various theories and models as propagated by the scholars.
Personnel management and HRM
The concept of Human Resource management (HRM) is the new version of Personnel management. However, there is little difference in the concepts between the two but whatever there is. The difference of Personnel with HRM starts where the traditional approach in managing people is compared with the modern people management approaches in business is concerned (Guest, Paauwe, & Wright, 2012). Hence, the focus of HRM is to manage the strengths of people in the business so that these people take the business to a new level with their talents. In the past, the people were administered in a business where the business took measures for employee welfare and labour relations. This was a very narrow space of work when people management were concerned with strict norms of legal and social norms. The modern day HRM is concentrated upon manpower acquisition or recruitment, grooming of people after recruitment and motivate them to do better for the business (Bondarouk, Looise, & Ruel, 2011). The scope of HRM is thus wider which undertakes all the responsibility of Personnel management and done a bit more than just sticking to the legality of employment.
Personnel management makes the assumption that people are needed to give desired output as the business wants. Hence, the outlook is that people are just a media to achieve the production quality and quantity. Human Resources seals with the manpower as an asset where they are valued to achieve the desired outcome for the business. Thus, the outlook is to groom and retain talent to achieve the desired outcome and be competent in the market where the HR assets back the innovation and development (Jackson, 2002). The personnel functions are done for employee’s satisfaction but the HRM undertakes the administration for goal achievement. The division of labour determines the job design in personnel management however the HRM concepts stresses on the group work where all becomes the part of the job. The training and development initiatives taken by the business are much more in HRM than in personnel management. Since the people are considered as assets in HRM, the grooming and development of people are given much more attention. It is evident that the top management takes the decisions and people implement them. In HRM, people are part of decision making and the decisions are taken on the basis of the team consultation. Thus, personnel management is a routine function while HRM is a strategic function in business.
Functions of HRM
A strong HRM needs planning where analysis of the organization needs to be done so that the strategic way forward can be strategized for the best business outcomes (Barrett & Mayson, 2008) The steps are thus as below:
Fig 1: Functions of HRM in Business
The functions are very much oriented with the business process and future demands. So the business HRM being a strategic partner of the business needs to identify the future demands and thus accommodate the manpower that may fulfil the business objectives. The business HR needs to access the business details to make an inventory of the capacity to fulfil the needed manpower needed or training and development plans formulation. So the HR puts the right with right skills in the right place and identifies the place which needs to be manned for the future productions. The gaps to are identified where the HR takes the training and skill development initiatives (Coronas, 2008). The control encompasses feedback of the people to get the feedback and information regarding the job and organizational culture. Hence, the business can accommodate the needed innovations and training with the change in business environment. Not all men expect similar behaviour so the process has to be conducted with a very personalized approach. Hence, the motivation of manpower and inclusion of innovations are very much part of the job where the business incorporates the needed steps to see that the people becomes an asset for the business.
The roles and responsibility of HR manager
Like any other business manager, HR managers also have their own set of functions where managing the departmental activities and managing employee are the key jobs. Thus being a key strategic part of the business, HRM has to encompass the manpower related strategies in business. The overall responsibilities include the inclusion of administrative measures as per the legal norms and company policy, training, recruitment, compensation and performance management (Armstrong & Baron, 2002). The legal norms of a state determine the HR activities like payment, benefits, work time and load etc. These are the minimum that the managers have to do and eventually they can develop the people associated to be assets in the future. Training and development planning and execution for the best outputs is the key area of work and responsibility of an HR Manager. Understanding the need for the future the professional plans for the employee is chalked out based on which the training are planned. Thus showing the career track to the employees for the best of professional development and desire to reach there is developed by the HR manager (Sharma, 2009). This develops the aptitude for the employee to perform and get stability and growth in career.
The same can be jested as:
Enterprise strategy management
Labour and Industrial relations
Managing the grievance of the people associated in business is the key responsibility of the HRM. How the managers achieves it is upon the way they plan the Organizational culture and behaviour. Thus, a policy has to be framed so that all understands and follow the company policy and have little to complain. Further, if an employee needs to report an event they should find space and protection of management so that there is no fear of retribution from any side (Martin & Kidwell, 2001). Clarity of interpersonal communication, grooming people for the best output and futuristic works, motivation to give the best of output.
Legal and Regulatory framework on HRM
In the UK, a business needs to adhere to the legal and regulatory frameworks to do a business in adherence to the legal norms of the state. There are various laws and regulations for an HR manager to adhere to while working. The following are few examples from the Industrial point of view.
Race Relations Act of 2000 (amended), Sex discrimination Act of 1997 and Equal Pay of 1970 are pertinent for the discussion. The laws give all employees irrespective of gender, colour, caste creed or ethnicity to get similar treatment in education, job and all other public functions. Thus, it gives the people equality payment and treatment where the employer cannot show favours for a particular group or person. Thus, the workplace is much more secured for all people working without any basis of discrimination by the basis of the law. The act of 1995 amended in 2005 to protect the disables via Disability discrimination act and Employment Equality Act of 2010 (Sims, 2007). These laws give the employee of the organization or in public equal payments and non-discrimination due to their disability or on the basis of sexual orientation, religion or belief. The Employment act of 2008 guides the employment and acts as a law that protects employer and employee in case of dispute. So the motivation is the resolution of employment-related disputes. Data Protection Act of 1998 is to safeguard the in-house data from being slipped to competitor’s while it also guides storage, transfer and usage of data flow in the business. The Work and family act of 2006 guarantees the benefits for employees like leaves, maternal and paternal leaves, and flexibility in working time to give employees work life balance.
Reasons for HR planning in an organization
The role of HR planning is to give the right amount of planning for Human resources to let the right and qualified man sit in the right place at the right time to ensure that organizational objectives are met. The planning process includes a manpower survey to identify the current manpower structure which enables the right man to be in the right position and identify the gaps in skills and required manpower for the objective achievement in the future. As discussed earlier, HR function is strategic in nature which enables right person work in the right place. So the to ensure organizational goals are achieved training needs and manpower requirements are identified. The hierarchy and organizational behaviour are fixed in order to get the organizational goals achieved. Hence, the planning gives the HR manager a direction in which the strategic move needs to be done that enables with the right amount of planning for future direction to the HR team.
Planning guides the execution where the people and job are equated and necessary gaps in skills are identified to improve the employee skills with the right amount of training.
Stages of Organizational Planning
The theory of Herzberg theory states that there are certain factors in the workplace that cause job satisfaction while a separate set of factors cause dissatisfaction. The connection with Maslow’s theorem is the attitude towards the Administration. The Maslow’s theorem suggests the practical attitude towards administration while the Herzberg theorem suggests the minimum requirement of work like salary and working conditions. Rather, individuals look for the gratification of higher-level psychological needs having to do with achievement, recognition, responsibility, advancement, and the nature of the work itself. This appears to parallel Maslow's theory of a need hierarchy. Herzberg added a new dimension to this theory by proposing a two-factor model of motivation, based on the notion that the presence of one set of job characteristics or incentives leads to worker satisfaction at work while another and a separate set of job characteristics leads to dissatisfaction at work (Wilton, 2010). Thus, satisfaction and dissatisfaction are not on a continuum with one increasing as the other diminishes, but are independent phenomena. This theory suggests that to improve job attitudes and productivity, administrators must recognize and attend to both sets of characteristics and not assume that an increase in satisfaction leads to decrease in un-pleasurable dissatisfaction.
Maslow’s theorem suggests that the hierarchy of need is the basis for the understanding of human motivation. This has psychological, safety, belonging, esteem and self-actualization needs. This suggests that the need for the employee motivation is the requirement of employees own self-goals along with organizational goals (Excel Books India, 2012). The needs of a personnel working in the business may be biological or psychological where the business has to be associated so that the best from the employee can be got.
Fig 2: Maslow’s Hierarchy of Needs
The various stages of Maslow’s need theorem can be suggested as above diagram depicts. The safety needs and psychological needs suggest that the food, drink shelter, security, protection, a law to protect is being adhered to. The need of belonging suggests the love and care of the family, relationship etc. The need for esteem is the status, independence in the job which needs mastery and recognition of the skill sets that the man possesses. The knowledge and meaning of the job are decided by the cognitive needs while aesthetics like beauty balance and form is depicted by the self-actualization (Price, 2011). The self-actualization suggests the self-fulfilment and personal growth in personnel to reach the peak of their performance.
Recruitment and selection stage in an Organization
The two organization selected are Samsung in UK operations to highlight the recruitment and selection processes taken in the organization. The process adopted is as below:
Fig 3: Recruitment and Selection at Tesco
Hence, the diagram above depicts the recruitment and selection process at Samsung UK where the candidates are called for the interview and they are being sent to the panel of selectors for selection (Sinofsky & Iansiti, 2009). Once selected the panel decides upon the recruitment and selection strategy of each of the candidates and evaluates the potential. After evaluation, the shortlisted are called while the non-shortlisted are not called and being given a letter why their names are not shortlisted. This gives the clarity of recruitment and the shortlisted candidates appear for the primary interview (Wang, 2005). Once shortlisted the employees are sent for the second round where the final selection is done on the basis 0of skills and efficiency. Thus, the Samsung UK follows a structured form of interview where the employer and employees are equally participating in the organizational development.
Effectiveness of recruitment and selection in two different Organizations
The recruitment and selection for the Samsung and Apple UK operations are selected to understand the necessary strengths of the system adopted. The benefits of adopting the recruitment techniques have been that it has not to depend on the corporate approval at Samsung while the Apple the company based out of US needs to. The corporate approval policy followed at Apple is due to its policy adopted to keep the technology undisclosed to the competitors and also due to the uniqueness of its product. Samsung, on the other hand, is into the UK market with a diverse range of product so the recruitment is supported by the larger scope of various electronic goods that the producer has to offer. Hence, if the personnel is not suited for telecommunications or IT they may be tried of the consumer goods which makes the scope of the job laugher. Nevertheless, the business gives a career growth in various markets with good work done but the same is not possible in the case of Apple. Both the brands have similar compensation in the respective levels of career but the ability to motivate the people to find scope in Samsung is much more prevalent due to the vast offerings it has in UK market over its rivals in electronic, telecommunication and consumer durable.
Link between Motivational Theories and Reward
Reward and motivation have been taken together as part of the same coin. Motivation is the act of changing a personnel’s behaviour towards his work and productivity that helps in business growth and goal achievement. The ways to get is via an offering of various rewards to the personnel that enables this change of behaviour. Hence, the reward and motivation have been attached with each other. However, this is also noted by the scholars that not all man desires similar benefits so the rewards are to be well designed and have a strategic overview of the success it has that enables proper reward policy administration (Hoffmann, 2007). There had been several Herzberg’s theory and Maslow’s are very prominent among them.
Reward factors may be financial, positional, praise and recognition or perks and holidays. Herzberg’s theorem suggested that hygiene factors like pay and compensation and motivational factors environmental, working condition, recognition, praise are factors those brings in motivation. Maslow’s Motivational theory suggests the motivation have a level in people’s life. Nevertheless, the Theory proposed by Victor Vroom on expectation model of Motivation and man management is a very important part which relates the expectation with rewards well. It suggests that individuals in business may adopt a certain way of behaviour or like one over the other one due to the expectations of the fact that the reward of that certain behaviour would generate rewards. Hence, the motivation of a certain kind of behaviour is based upon the desirability of outcome where the theory proposes a cognitive process of how the behaviour is determined by individual processes. Thus, the mental processes involved in the choices and choice making is more prominent in the Vroom’s theory.
On the contrary, the benefit of the process is to give the employer an opportunity regarding choices that the employee makes. Vroom proposed that the Organizational behaviour makes the expectations in an employee driving his motivations to achieve. A process controlled by the individual from all the alternatives that they have and choose the one which most suits the activities. So the motivation is the certain amount of expectancy which a certain effort leads to that would help the organization get the desired benefits out of the many choices that they have. Hence the governing of choices from the alternative choices to achieve a certain result. Expectancy, Instrumentality and balance are three components in the expectancy theory of Vroom (Beck, 2003). Here the Self efficiency is projected as the efforts put into drive performance and instrumentality is the faith that a person is going to receive rewards when the performance criteria are met. Thus, the instrumentality is the belief that a person would perform with an expectancy of reward between performance and outcome. The valence in here is the behavioural alternative where the decisions are measured on the value of the reward.
Job Evaluation and other factors determining pay
The determinant of payment with the job done is well defined by the Maslow’s and Herzberg theorem which depicts the hygiene factor and need of the personnel. Thus, the job evaluation for each of the job needs to be done which includes the skill, education, hierarchy etc. To determine the job evaluation, the employee can be asked regarding job position to analyze and use them for future references. Thus, the job evaluation can suggest why the site engineer gets more than the site manager evaluating the job as a whole and the methodologies and competence needed for the completion of the similar job. (Armstrong & Baron, The Job Evaluation Handbook, 1995)There are many ways to determine the job content which involves fair salary payment on the job evaluation, responsibility and job skills and contents.
The job evaluation is done on the basis of the content of the job where the skills and education required for the job are being specified on the basis of final outcome. The final outcome needed for the specific job is determined on the job content and skills needed to acknowledge it and do it with utmost satisfaction. In this case, the example of Samsung can be taken where the salary of the retail manager is lesser than the software development engineer. The duty and responsibility of the position suggest the person needed to do the job with proper execution. Nevertheless, the size of the business, position, skill and experience along with organizational profitability and employee performance are dependent for the payment structure in the organization.
An Engineer needs to have the expertise and are directly responsible for the product quality so their salaries are more than retail managers in any economy of operations.
Effectiveness of reward system in different context
The reward can be classified into two different contexts extrinsic and intrinsic. Extrinsic rewards can be administered by the Human resource and administration which part of the policy and Organizational systems. Intrinsic rewards too need to be administered with a certain amount of organizational and policy aspect in mind so that the reward is not seen as out of the scope of work. Extrinsic rewards can be those like payment, bonus, incentives, gift commission, bonus for performance etc. The Intrinsic rewards are like praise, faith, feedback, promotion, authority, responsibility allotted etc. It is believed that once the personnel is motivated they would do all to help the organization reach its objectives.
The managers shall choose or select rewards and times of rewards most effectively and properly as it is one of its important tools. To increase the effectiveness of the organisation, it should be used. Reward system relates to employee motivation. A number of purposes are served by the reward system in an organisation. It helps in maintaining healthy competition, retention of key employees, and in the reduction of labour turnover and hence the cost of recruitment. It helps in maintaining and reinforcing an image of the organisation among its key stakeholders or future employees. People i.e. the employees are a most important resource of the organisation. There is intense competition to attract and retain the best employees. The consistency of services is improved and it allows developing a healthy relationship between clients and organisation. Lastly, it also helps by a reduction in labour absences and also helps with recruiting efforts.
Pay increases, bonuses, pensions or health care premiums are most common forms of monetary rewards. Direct and Indirect compensation are the two broad categories of it but both contributing to the financial betterment of the employee. Direct compensation is comparatively straight forward whereas indirect compensation increases the benefits or adds to them. Now lets us compare monetary benefits with the non-monetary rewards. Non-monetary compensation is a cost to the organisation but does not improve the employees financial position. The best example of it is providing the employees with the best tools and equipment possible such as laptops, proper and safe working conditions. Non-monetary awards are clearly visible among all in an organisation and it can create a perception of inequality. This is not present in the case of monetary benefits as employees must not know the full details of other co-workers pay and benefits. This can be used effectively by some organisation as it has positive implication and strives the employees to increase production.
Monitoring Employee Performance
Monitoring employee performance can be very useful for organisations as well as its employees. Clear policies should be set on staff timings and productivity. Regular check-ins, inspections and reporting system should be installed. Benchmarking should be done appropriately. Monitoring employee performance has a number of advantages to the organisation. It provides them with performance feedback which helps them to grow and satisfies and motivates them. It helps in employee training and development decisions. Monitoring employee performance is also effective during promotions layoffs and transfers. It is an effective and efficient tool which helps in Human Resource Planning (HRP).
Performance appraisal is a systematic and periodic process that examines and assesses the employee’s job performance and productivity individually. This is done in relation to a certain and specified pre-established criteria and organizational objectives. It is a method in which job performance is documented and evaluated. It continuously evaluates the performance of individual employees within the organisation and is a part of career development. It consists of regular reviews and reports (Robinson, et al., 2015). Objective production, personnel and judgement evaluation are its three main methods. Previously it was conducted annually but now with time companies are shifting towards shorter cycles. For providing feedback to employees, counselling and developing them, the interview could be used. Performance appraisal is often a part of performance management system. It takes into considerations two aspects namely the expectations from each employee and secondly the way to achieve it. It is used to manage and align all of the organisations resources in order to achieve highest possible optimum performance effectively. Improving their respective PA’s should be each one's highest priority. It helps in facilitating management and employee communication. The main objective of it is performance improvement and it is also a basis of employment decisions. It also aims at aid in the job criteria formulation and personnel selection. It also helps in work motivation through the use of reward system (Barrett & Mayson, 2008).
360 Degree feedback is also known as, multi-rate feedback, multi-source or multi-source assessment. In this method feedback includes direct feedback from employees, subordinates, peers, supervisors as well as self-evaluation. Feedback from external sources is also entertained like customers and suppliers. Its results are often used to plan and map specific paths in their development. It also aids in making an administrative decision and which guides to frame pay and promotion policies. A 360-degree appraisal is a type in which everyone autonomously rates the employees.
The self-concept is socially negotiated and modified by the process of self-evaluation. People select ways which are influenced by motives and these help them to select self-relevant information, gauge its veracity, draw inferences about themselves and make plans for future. Self-enhancement, self-assessment, self-verification and self-improvement are the four motives of it. Self-enhancement enhances positivity in one’s self and reduces the negativity. It improves the self-esteem of a person while others see them as a more socially desirable person. Self-assessment ensures a reduction in any uncertainty about one’s personality trait. It increases the accuracy and objectivity. Whereas self-verification maintains a balance between previously formed self-conceptions and any new information that is significant to the self. It helps in the development of a sense if control and predictability among all.
Customer feedback is also a dimension of employee evaluation which gives a variety of reviews and has various advantages. Customer feedback gives us the best real world feedback. It improves the quality and adds to the proof of internal human resources controls. This feedback results in quick action and implementation as they want to maintain a healthy and long relationship with its customers. It also avoids Self-serving hierarchy of the internal evaluation process. It also ensures proper knowledge regarding your customers and the organisation gets to know about its customers better. It helps in alignment of employees works with the needs of the customers rather than boss’s needs.
Reasons for Cessation of employment
Employees are the assets to an organisation and they act as the backbone of organisations. But employees are terminated for many varied reasons mainly due to variance in company and employee’s expectations. Reduction in the budget or a financial crisis can be one of the strong reasons for it. Due to lack of funds, they terminate employees to maximise their budgets. A team or individual is terminated if identified as the cause and the reason for lowered profits or other negative issues. Consistent and continuous absence from work may lead to termination as lateness and absenteeism affect the productivity and company morale’s negatively or adversely. Every individual or employee is given a task particular target to achieve within a stipulated time frame or within the deadline (Lewis & Sargeant, 2004). The shortfall in achieving their goals may lead to cessation. They are also fired due to lack of knowledge and skill required for the assigned tasks. Unethical and disrespectful behaviour towards co-workers seniors and customers is also one issue. The workers also leave their workplace due to various reasons. Unsuitable working conditions, harassments, partiality, biases, huge workload, underpayment of wages, unhealthy working atmosphere etc are the reasons why employees shift organisations.
Employment exit procedures
Employee exit management is used to terminate an employment contract in a very professional manner. It ensures that access privileges are revoked to the leaving employee and ensures security integrity via recovery of keys and other important documents and things.
In this organisation, the employee has to submit his/her resignation in writing with the line managers who forwards it to the HR department promptly. Managers also forward the details regarding last working day and any annual leave etc to the HR department. The HR finally processes the Termination form for Payroll. Then the HR department finally contacts the employee themselves and they undergo an interview and questionnaire. The final decision is given by the HR after analysing the interview which completes the process. And in the case to termination due to dismissal, the following procedures have to be taken into account.
Letter- a formal letter in writing explaining the situation
Meeting- face to face discussion should take place
Verdict- the employer should then write expressing their final decision
Appeal- an employee can appeal against the employee’s decision.
Medical University of California
The state agency with the Medical University shall be regarded for termination of employment and must complete the exit procedure according to the policy in less than ninety days. A resignation letter has to be submitted with the seniors with a minimum of a month’s notice and has to complete the exit interview with the HRM department before cessation. They also have to file a return of retirement system contributions. They can either withdraw all keep it or receive it as pensions on attaining retirement age. Health and Dental Insurance should be applied for and all the other social security benefits are also provided. In the case of death counselling and assistance is provided to the designated beneficiary or the administrator of the estate.
Legal and Regulatory framework on employment cessation arrangements
Maintaining regulatory framework is very important in today’s world. Every organization has to follow the terms and conditions of cessation and exit procedures and strictly abide by them. If all the law and rules are followed and abided i.e. all the requirements of the legal issue are satisfied then they do not have to face any intervention from any outside third party or body. One should never skip any provisions of labor laws and rights in case of cessation procedures.
From all the above discussions we can conclude that humans are assets to an organization and HRM is a department that is continuously is in function and is pervasive in nature. It plays a very vital role in an organization’s overall production and outcomes and results. To maximize the benefits and optimally utilize one's human resource the organization should install a proper managed HRM system. It ensures that a friendly and working atmosphere is maintained which increase the work i.e. the productivity and hence the profits and increase customer base. All the laws and regulations are abided by thus preventing any intervention and fines or penalty. Thus, it has a very important role in achieving the organization's objectives aligning it with the needs and satisfaction of the individual employees effectively and efficiently.
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