Human Resource Management
Introduction
Human Resource Management is responsible for attracting, selecting, recruiting, placing, recognizing, engaging, retaining and rewarding people while developing anticipated organizational culture and leadership, as well as, ensuring compliance with national and international labor and employment laws. Mostly, small to medium organizations manage their HRM activities by outsourcing their human resource functions to specialized HRM firms. Other hires few HR professionals. However, larger business corporations uphold an all-inclusive HRM functional division that is characteristically dedicated to the specialized tasks such as strategic recruitment and selection, employee engagement, and development of functional leadership across the business undertakings (Bratton & Gold, 2011, p. 6). The organization provided in the cases study is Harrods.
Harrods is a high-end departmental store located in London – United Kingdom. The brand also undertakes several other enterprises under the flagship of Harrods Group of Companies, which mainly include Harrods Estate, Harrods Aviation, Air Harrods, Harrods Buenos Aires and Harrods Bank. The core values of Harrods are – British, Luxury, Service, Innovation, and Sensation. This paper focuses on comprehensively analyzing the role of human resource management in enhancing employee engagement at Harrods.
LO1: Task 01
Distinguish between personnel management and human resource management.
The major difference between HRM and Personnel Management (PM) is that HRM deals with workforce management that flourishes and fosters towards the achievement of organizational goals and success; whereas PM deals with employment laws, legislative processes, and employee payroll. However, there is much more difference between the two such as both varies in their ‘nature of relations with employees’ and ‘relation of management & power’. For instance, PM is the targeted integration of the employees and managers in the tasks of the company and therefore, it is more focused on an individualistic approach and always puts ahead the interests of an individual as compared to a team/group interests (Cole, 2012, p. 17). Alternatively, HRM focuses on developing and fostering a shared vision between employees and management, and strive to develop and install collective mission, vision, and short-term and long-term objectives that are aligned with the central corporate goals (Stredwick, 2011, p. 11). It also emphasizes on developing policies and exercising activities that satisfy the mutual needs and interests of employees and organization simultaneously. Likewise, the decision-making authority of personnel managers is centralized, where they cannot participate in corporate decision-making in full-fledged manner and the ultimate decisions are made by top management. Conversely, the decision-making powers of HR managers are decentralized as they share an almost equal stake with top management groups (Bratton & Gold, 2011, p.7).
Assess the functions of human resource management of Harrods.
At Harrods, HRM involves a comprehensive set of functions that are designed and carried out to maximize the effectiveness of both employees and organization. Apart from following the conventional HRM role of planning, developing, administering employee programs and policies; the HR department of Harrods endeavors hard to make consistent constructive changes in organizational culture in order to enable the organization to satisfy the needs of her employees while also upholding the corporate interests and values (Pieper, 2014, p. n.d). Primary HRM function of Harrods includes developing and valuing its people through efficient Recruitment & Selection, Performance Management, and Employee Development. Through effective recruitment and selection, Harrods attracts the most anticipated talent and skills and fulfills the existing and future personnel needs of the organization. It also manage and assess employees’ performance and aims at nurturing a working environment, which facilitates employees to perform at their best by recognizing their competencies and providing them with the relevant opportunities and training. Likewise, the employee development function of Harrods’ HRM focuses on mounting employees’ careers by bringing them the best of career progression opportunities (Garavan et.al, 2015, p. 25).
Evaluate the roles and responsibilities of line managers in a human resource department of Harrods.
The HRM functions at Harrods do not only manage its existing workforce but also plan for the changes that may affect organization’s future staffing requirements. The phenomenon is typically known as the workforce planning and in order to stream down this effect, line managers play a vital role. Major roles and responsibilities of line managers in HR division of Harrods include Talent Spotting, Coaching & Mentoring, and supporting the organizational networks. The most significant responsibility assigned to the line managers at Harrods is to keep identifying the existing and future staffing needs in order to provide input for the requirement of skilled, cost effective, and timely recruitment to prevent workforce shortage or surplus. Additionally, a primary role involves the identification of talented individuals, assessing their performance, and recognizing their training and development needs. On-job and off-job coaching and mentoring programs are also marked under the job responsibilities of line managers at Harrods (Stredwick, 2011, p. 43). They are responsible for developing effective communication with their subordinates through formal and informal means in order to communicate goals, advice, response, opinion, and criticism by structured feedback system. Apparently, acting as a mentor/coach assist line managers to develop necessary managerial skills, fortify trust and build a healthy relationship with employees, which ultimately contribute to buttress encouraging and engaging work settings. Similarly, the role is to follow and support the defined organizational frameworks hierarchies and networks. Managers are responsible for meeting up regularly to identify existing and potential organizational issues, employees’ needs, resources requirements, to share idea and to ensure the alignment between the projected and actual performance at both operational and strategic level (Bratton & Gold, 2011, p. 9).
1.4 Analyze the impact of the UK legal and regulatory framework for human resource management of Harrods.
The UK has a comprehensively defined legal framework when it comes to the management of human resource at small, medium and large enterprises. The UK legal and regulatory framework involves a number of legislations related to the advertisement, employee health and safety, tax responsibilities and employments rights, compensation, wage rate and labor hours. Although there are numerous legal provisions that affect Harrods in many ways; however, three most significant are discussed here. Harrods abides by the state and national legal context on recruitment and selection such as Equal Pay Act, Equality and Diversity, Health and Safety. For instance, according to Equality and Diversity, Harrods cannot include any kind of personal or discriminatory question in its job application forms that are not directly or indirectly related to employment. Therefore, Harrods application question merely asks applicant what is necessary for the employment application. Secondly, Harrods is liable to conform to the defined provisions of European and United Kingdom’s domestic legislation in order to ensure workplace safety, health and wellbeing of its employees, suppliers, customers, and community under the Occupational Health and Safety Act. Apparently, Harrods operates a system, which safeguards the workplace safety and health of employees and provides an extensive range of occupational health benefits and service to its employees. Thirdly, Harrods has to meet the defined wage rate, working hours, overtime, hiring and termination demarcations under the Equal Pay Act. These standings provide and limit the human resource functions of Harrods within a well-defined legitimate structure that is authorized and permissible to all business organizations and cultivates fairness and impartiality in the industry (Molander & Winterton, 2010).
LO2: Task 02
2.1 Analyze the reasons for Human Resources Planning for Harrods.
Succession planning has progressively become a greater concern and business requirement for HR professionals as business organizations are increasingly facing the challenges related to employee turnover, strategic leadership, and employee retention (Boxall & Purcell, 2011, p. 22). Harrods needs effective HR planning to fulfill its internal and external needs for staff supply so that it does not lacks of excess in human workforce. The employee turnover statistics derived from the employee survey at Harrods indicates that Harrods is required to make effective efforts to engage its employees more effectively in order to reduce its annual employee turnover. Therefore, the primary reason for HR planning at Harrods is to enhance employee job involvement and organizational commitment. Other major reasons include the precise estimation of future staffing needs and developing a proficient HR planning process that delivers healthy outcomes. Harrods has integrated the employee survey in its HR planning process in order to develop a strategic plan and policies to improve employee trust and engagement at work. Four major reasons related to HRM planning at Harrods include consistent changing and development of organizational culture, future leadership, effective communication, and achieving the Harrods’ brand value (Bratton & Gold, 2011, p. 36).
2.2 Outline the stages involved in planning its HR requirements of Harrods.
The HR planning processes of Harrods facilitates the company to anticipate its business environment while assessing the capabilities of its workforce and their requirements with respect to forthcoming market occurrences. The first stage in Harrods HR planning involves designing of an all-inclusive management system that proficiently deals with the corporate objectives. Secondly, it assesses the potential and effectiveness of the existing employees through a structured performance management system and also upholds a comprehensive employee survey to find out the level of their engagement and organizational commitment. Thirdly, it focuses upon the respective demand and supply of the employees. On the basis of these existing workforce needs, Harrods forecasts the future operational and workforce requirements. The outcomes of this assessment are then incorporated in developing strategies that can be used to improve employee trust and engagement, changing organizational structure, changing leadership and improving communications (Sheldrake, 2013, p. 64). Harrods also continuously motiner and review its plan to make sure if everything is going smoothly. However, the framework is continuously improved by making changes and by filling the current loopholes.
2.3 Compare the recruitment and selection process of Harrods with another company of your choice.
Recruitment and Selection Process at Harrods
The recruitment and selection process of Harrods is very comprehensive in a way as it timely identifies the staffing needs to induce required qualifications, talents, and skills within the organization. The recruitment and selection system begins when an organization understands that there is a vacancy, which should be filled. A set of working responsibilities and job description is then composed out this framework the employment title and in addition the responsibilities and the obligations that will be secured by the productive applicants. Both essential and optional sources are then utilized to gather information. Once the staffing needs are identified and job descriptions are prepared; Harrods undertake both internal and external hiring initiatives. If the need can be full filled internally, then the employees are short listed for the position and the position is then allotted to the selected individual after an evaluation by the top management. If incase the exiting employees does not possess the required skills and competencies, then Harrods go for the external hiring options which primarily include job posting on its website. Harrods maintains a structured and non-discriminatory recruitment & selection process, which encourage the best talent to apply for the suitable positions. In order to select candidates internally/externally, Harrods maintain a set of assessment tests and interviews (Stredwick, 2011, p. 81).
Recruitment and Selection Process at Marks and Spencer
In comparison with Marks & Spencer Group P.L.C., this is the biggest competitor of Harrods, their recruitment, and selection process focuses on attracting the best talent, developing and retaining them. Marks & Spencer strive hard to align their recruitment and selection processes with their corporate strategies while invading the edges of succession planning and employee development in their planning. Identifying the staffing needs, M&S usually attract the talent through internal hiring, referral hiring and relying on newspaper advertisement, website ad-posting if hiring externally. Once the application pool is developed, the candidate are then short listed for individual as well as panel interview, successful candidates are then hire. The recruitment and selection process of M&S include an all-inclusive series of assessment test and interviews. Furthermore, it upholds wide-ranging programs and policies for induction, training, employee development, coaching, and mentoring (Stredwick, 2011, p. 56).
2.4 Evaluate the effectiveness of the recruitment and selection techniques of the two companies discussed above.
The recruitment and selection process of Harrods is very comprehensive in a way as it timely identifies the staffing needs to induce required qualifications, talents, and skills within the organization. Harrods maintains a structured and non-discriminatory recruitment & selection process, which encourage the best talent to apply for the suitable positions. Recruitments give opportunities to different divisions, for example, adjusting staff abilities sets to activities and objectives, and making arrangements for departmental and individual development and growth. In spite of the fact that there is work required in the hiring procedures, legitimate planning and assessment of the need will prompt hiring the opportune individual for the team and role. Before building up the expected set of responsibilities or job description, the employing manager ought to recognize the accompanying position purpose, preferred qualifications, general information, minimum requirements, and essential functions (Buhler, 2012, p. 27).
LO3: Task 03
3.1 Assess the link between motivational theory and reward.
Employees should always be encouraged, compensated, rewarded, and supported for their talent and hard work. Various researchers and authors have examined the association between reward and employee motivation. A theory that stands out amongst was proposed by Abraham Maslow, which alludes as the Maslow’s hierarchy of needs. For example, the first stage of Maslow’s hierarchy of need is about physical needs such as food, shelter and so on. Apparently, company should have set suffient salary to fulfill those needs and if these needs are effectively met then the employee automatically becomes more motivated towards his or her job as motivation has a direct link with financial rewards.
Similarly, concentrating on this methodology empowers us to comprehend the kind of rewards that people expect to get with a specific end goal to have these requirements met. It is conceivable to organize an arrangement of propelling rewards such as bonuses, perks, vacation vouchers, recognition and title etc. that are focused on these distinctive kinds of employee needs. For instance, fundamental level of individual needs can be met by offering employees with a decent living standard through attractive remuneration structures. Reward packages can also be planned so as to empower individuals to accept full latitude of human needs. However, by empowering this satisfaction of employee needs, the business can empower and encourage its employees to be hard working, involved, dedicated, engaged, productive, and focused towards their jobs and organization (Aswathappa, 2013, p. 21).
3.2 Evaluate the process of job evaluation and other factors determining pay in Harrods.
Effective job assessment or job evaluation is a fundamental component for rational and nondiscriminatory compensation management reviewing frameworks and grading methods. At Harrods, the job evaluation system is linked with its pay structures and grading methods. The great hierarchical configuration and organizational design of Harrods ensure that its pay structures and operations are working at their most contributive and effective levels. At Harrods, they use a blend of Ranking Method and Grading Method for the job evaluation. The system deals with the arrangement and sizing the employment from high to low, as well as, guarantee that rewards that are offered to the employees are suitable and reasonable according to their hard work and efforts. Nevertheless, job evaluation is not only a tool that can be used for safeguarding the claims of fair pay. At Harrods, the line managers identify the individual performance of employees at their jobs through structured performance evaluation system and then incorporate its outcome in HR planning in order to find the best combination of compensation and benefits that not only retain employees but also keep them engaged, motivated, and committed.
3.3 Assess the effectiveness of reward systems in two different work contexts.
In competitive business settings, business organizations are looking forward to the changes that improve quality while lessening their costs. In the meantime, the resilient economy has brought about a constricted employment market. So where small business organizations are striving to get the more output from their employees; on contrary, their employees are expecting them for additional benefits and returns. In developing a reward program, an organization needs to distinguish the merit pay from the reward framework. Specifically, monetary rewards that are given all the time, such as profit sharing and bonuses ought to be attached to the achievements of an individual or team, and must be differentiated as the ‘pay at possibility’ to distinguish it from general compensation.
Rewards system can be equally effective in different work contexts. For instance, team-based reward systems undertake the outcomes of team performance as a whole and encourage the entire group of individuals to give their best and work collaboratively to achieve the target. For instance, lunch vouchers for a group, sponsored holiday, email recognition, award and title giving in monthly magazine. However, individual rewards encourage employees to compete with each other while contributing towards the organizational goals (Buhler, 2012, p. 44). Individual rewards may include monetary reward, recognition as the best performer, performance bonus etc. These rewards put positive impact on the employees and they can be deemed effective in order to keep the employees motivated and committed towards their job.
3.4 Examine methods that are being used by businesses to monitor employee performance in Harrods.
Harrods made use of the following methods to monitor employee performance;
One of the best approaches that are used by Harrods to monitor performances of employees is everyday on-job observation. Observing the work behavior and body language of employees assist line manager in comprehending the level of job involvement and engagement of employees.
The self-monitoring tool is also utilized by Harrods. This empowers the employee to maintain an effective track on their personal performance while staying steady and upright onwards organizational goals.
Another approach to monitor employees’ performance at Harrods is the regular review of their work on regular basis that is undertaken by line managers at regular interval of times. This implies the line managers to carefully check their subordinates’ work all along the way. And therefore, if any employee is unable to produce a substantial amount of output, then he should be given instant feedback, assistance, or should address the issues that are hindering his work performance.
Harrods has also installed customized and fully automated monitoring software that keeps a regular check at employee performance.
LO4: Task 04
4.1 Identify the reasons for cessation of employment with Harrods.
Cessation of employment is referred to the termination or dissolution of the employment (Aswathappa, 2013, p. 8). At Harrods, employees can leave employment or organization in different conditions. For instance, they can purposely quit employment to advance in their career, to acquire a better monetary opportunity, to migrate, voluntary redundancy, to take early retirement, or maybe just of being tired of job nature. As Harrods abide the legislative framework of UK; therefore, the reasons for cessation of employment with Harrods are all complied with the systems. Therefore, under the UK law, Harrods is authorized to end up the employment of any of its entitled employee under the reasons of employee’s sudden or accidental demise, inability to productively perform the job tasks to which he was hired and compensated, layoffs, retirements, end of specified employment terms, end of employment agreements or contracts, involuntary termination, unethical or discriminatory behavior, found guilty for bullying or sexual harassment, disseminating confidential organizational information or any other specified termination reasons defined within the law or organizational policy of Harrods (Buhler, 2012, p. 10).
4.2 Describe the employment exit procedures of two different organizations including Harrods.
At Levis Strauss, involuntary employee exit takes place whereby the organizations no more wishes to proceed with the working relationship, for instance, in the case of Levis Strauss that laid off employees as a result of overcapacity in its production unit. Involuntary employee release can be as a consequence of redundancy or dismissal. In the case of Levi Strauss, after informing employees regarding their release from the organization, HR sends the structure for Exit Interview to the representative. At that point, HR gets some information about any matters that representative needs to talk about in the meeting. As soon as the termination or resignation letter proceeds, the HR department carried an exit interview with the exiting employee. The HR department then gets some information about any matters that he/she feel like to talk about in the meeting. Similarly, like most organizations, Tesco also follows a standard exit procedure. After employees inform to leave the organization, the HR department first tries to gauge the reason for such a decision. If the reasons are related with lack of compensation or benefits, it tries to retain its valuable employees by offering them a better compensation. But if an employee is persistent to leave, the employee is called for an exit interview. After the interview, the employee is provided with all the relevant documents such as experience letter. After that, all the pending dues of that employee are cleared that he or she is entitled to according to their employment contract (Buhler, 2012, p. 11).
At Harrods, a leaving employee may encounter following steps when existing the organization
Receives termination or resignation assurance in the presence of at least one witness; however, in the case of termination this could be a private meeting to play out the terminating activity.
His system and network access will be disabled or may be asked to voluntarily give away the passwords and authorities.
Arrange for the arrival of any off-site gear that the ex-employee may have, for example, laptops, notepads, documentations, and so forth.
Attend an exit interview with HR to fulfill the exiting formalities and to receive the last paycheck including get-away pays. HR may also talk about the transfer or exchange (Molander & Winterton, 2010, p. 34).
4.3 Consider the impacts of the UK regulatory framework on employment cessation arrangements of Harrods.
There are such a large number of good preferences of legitimate and regulatory structure on employment cessation provisions. The accompanying are a few of its effects for Harrods. For instance, it improves the job security for employees and provides a solid framework to employers in a way that if anything unfair will happen to the employees such as irrational termination or firing from the employment, then the affected employees can get a strong legal backing from this structure that can be dragged to the courtrooms as well. Likewise, it facilitates the employers to conform with the legislations in order to avoid such conditions. It also plays a vital role in lessening the segregating and discriminatory work environment. It also has some wide-ranging impacts in the terms of reducing workplace discrimination (Molander & Winterton, 2010, p. 67). Under this framework, Harrods cannot discriminate anybody merely by relying upon his/her gender, religion, age, ethnicity, sexual orientation, and race. On the off chance that if something happens on such issues, then affected employee is liable to get 100% upkeep from the UK regulatory framework on employment cessation. Lastly, it gives affirmation in some monetary aspects. When the employment arrives at its end in case of retirement, redundancy, resignation or incapability, the employee is entitled to receive the outstanding money from his/her employer. If in case, the business endeavors to disregard this provision then they can be sued/charged for a major sum under this arrangement (Aswathappa, 2013, p. 17).
Conclusion
The importance of human resource management in enterprises is growing steadily with the recognition that the quality of modern and innovative human resources significantly influences the economic success of a company. The above discussion concludes that Human Resource Management takes a look at what number of employees the business will require in future, and also the employee type that will be required with respect to skills, qualification, and productivity levels. The HRM system of Harrods enables it to have the right person at the right place and at the right cost and time. Harrods is a large business organization and upholds well-defined frameworks and structure for every HRM processes, such as employee compensation, rewards, evaluation, recruitment, and selection. It also concludes that an effective organization needs to look after every single bit of operations that is related to the productivity and performance of its employees because only integration among them and their alignment with corporate business strategy can bring about success, productivity, and profitability to the business. Lastly, the discussion shows that it is progressively becoming more important for business organizations to keep their employees engaged and committed to the organizations in order to ensure low cost, high productivity and competitiveness in the market.
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