Unit 3 Human Resources Management Assignment

Introduction

This Unit 3 Human Resources Management Assignment is a study about the importance of human
resource management and personnel management and explains difference between the traditional and
modern approach of work force management. A company works for achieving its goals and objectives by
increasing the performance of the employees. Job evaluation and motivation by rewarding system helps
to increase the engagement of employees in the company. There is a detailed study of the role of
human resource planning process in the effective human resource management. Some companies of UK
are taken as examples like Amway, The Body Shop International and case study of Virgin Media. A
comparative study is done of these companies for the applicability of  human resources
management and process of termination of employment.

Task 1

1.1 Differentiate between personnel management and human resource management giving examples in
two suitable organizations.

Personnel management can be defined as approach to manage employees and maintain the workforce
satisfied. This approach concentrates with the relationship of the employees with organization. This
relationship can be positive or negative but personnel management makes an effort to keep the positive
relationship of employees with the growth of organization. Personnel management includes all the
activities which are related to employee retention like organizing, integrating and compensating the
work force. Basically the approach is a traditional approach which is a general management of entire
activities of work force in organization, whereas Human Resource Management is a modern approach to
employee management and managements of their capabilities. Human resource management is an
approach which is work for the optimum utilization of human resources. In human resource
management an overall development is done in the direction of achieving the goals and objectives of
organization. in personnel management job design is executed according to the distribution of work but
in case of human resource management the job is designed in team work and tasks where a team and a
group is constructed to do a particular task (Tran, H. 2015).

Human resource management is adopted in the human resource in FMCG Company of UK Body shop

international. The company is investing in the activities of human resource for expanding the human
resources of the company and overall development of man power. Activities of personnel management
are covered in the human resource management as in it is wide approach. The company’s staff
management, organization, integration, compensation and development are the activities covered in
the process of human resource management(Tran, H. 2015). The leading FMCG Company Amway has
adopted the approach of personnel management. The company recruits selects and then trains the
entrepreneurial managers. By personnel management approach an overall development is created of
employees who give them direction to meet their personal requirements in the company
asemployee.Human resource management helps to increase the involvement of employees in
organization and help to achieve optimum utilization of workforce. These approaches are used to
motivate the employees in the company (Tran, H. 2015).

1.2. Assess how human resource management functions help your chosen organization in achieving its
purpose.

The main purpose of human resource management is to manage the human resource in a manner that
the best can be abstracted from them. In present business scenario employees are not just an input for
the company they plays important role in the success of the organization. In an organization following
activities are covered in the process of human resource management (Parry, & Tyson 2011).

1. Planning: Planning of human resource is the initial function of human resource management in

any organization. Planning is defined as making an estimation of the number of employees and
 staff required in organization.  Required quality and standards are defined which will be the
basis for the recruitment. In Amway the planning for resources is very important for the
management of all the activities.As the company is one of the biggest FMCG Companies in the
world, and have its business around the world so it is necessary to have sufficient workforce.

2. Staffing: Staffing includes recruitment process and selection of people for achieving the goals
and objectives of organization.Every company has its requirements for the selection of
employees. Predefined objectives and requirements works as the benchmarks for selection of
human resource. Amway have staffing policy in which the employees are selected according to
the methods and techniques within the different qualified applicants. Job designing is also done
in the process of human resource management as in work and tasks are defined according to
the ability of the human resources (Parry, & Tyson 2011).

3. Orientation and trainings: Orientation is a period which works as a helpline for the new
appointed employees. In this period employee adjust himself in the working environment of the
company and helps to know about the company’s working strategies. Amway provides proper
orientation programs to its employees and entrepreneurial managers in which presentation
about the company and its working culture is shown to them. Trainings and development
programs are executed to increase the quality of employee’s performance.

4. Performance appraisal and compensation: Performance appraisal is a technique which helps to

monitor and control performance of employees. Performance appraisal depends upon the
feedbacks and reviews of the supervisors and managers.Incentives, bonuses, promotions are
includes in the techniques of performance appraisal. Compensation is the value of performance
of employee and is defined as a major cost in organization. Amway has a framework for the
distribution of compensations and policies for performance appraisal (Parry, & Tyson 2011).

1.3. Evaluate the role and responsibilities of line managers in your organization or familiar organization
and how it supports human resource management functions.

Line manager: In organizations there are levels in structure and hierarchy is also there. Line managers
are the authorities which are have responsibility to manage activities of employees. In this type of
management communication is from top to down level and feedbacks are down to top level.Line
manager helps to proper execution of human resource management(Nankervis, A.R., et. al 2013).

Roles and responsibilities of line manager-

 Day to day activities is managed by line managers of employees which help to monitor
employee’s performance.  Amway have a quality of line manager which manages employee’s
activity.

 Line manager provides his expertise information if required to employee. In Amway the line
managers are responsible to guide its employees by their expertise knowledge.

 In Amway the line managers are liable for the allocation of tasks to team of employees or
individual.
  He is the responsible person for controlling the performance of company’s employees. The line
manager of company evaluates the performance of employees on a regular basis and avoids
unethical activities (Nankervis, A.R., et. al 2013).

1.4. Analyze how legal and regulatory framework impact on human resource management.

Human resource management is a methodology for the overall development of human resources in
organization.In the process of human resource management legal and regulatory frameworkworks as
safe wards for the employees against any kind of misconducts (Bratton, J. 2012). Following are the acts
and regulations which make impact on the human resource management-

 Sex discrimination Act 1995/97- The act was established to protect the employees at work
place by the discrimination on the basis of gender.

 Equal pay Act 1970- according to this act there should be no discrimination for compensation on
the basis of gender, religion,cast etc.

 Employment rights Act 1996- The employment rights Act is incorporated to protect rights of the
employees in the work place.

 National minimum wages Act 1998- The national minimum wages act provides minimum wages
to every employee for per hour work which is decided in the act and categorized (Bratton, J.
2012).

Task 2

Introduction

Human resource management plays an important role in the growth of organization. The company
cannot achieve its goals and objectives without effective work force.  In the given scenario there is a
high staff turnover which means the human resource management does not effectively adopted in the
company. There is lack of human resource planning in the company which is estimation by the human
resource manager about the requirement of staff and demanded qualities in the applicants. The finance
manager is playing the responsibilities of the HR manager which is creating the problem of lack of
motivation and direction in the employees and leads to decrease the ratio of employee retention. There
are no policies for any human resource planning and recruitments are done by telephone interview
before the face to face interviews. Human resource management is a process in which planning, staffing,
training and development, and compensation are included.The initial stage of human resource
management is planning. In which a data is analyzed and predefined for the requirement of staff in the
organization and there should be a benchmark set for the applicants, these standards can be based on
their degrees and diplomas and experience.To understand the importance of effective planning and
selection we will study this report. The companies taken for the study of human resource management
are two big FMCG Companies, Amway and Body Shop International having their business all over the
globe (Bach, S. & Edwards, 2013).

Read About:Unit 22 Managing Human Resources Assignment Solution

2.1 Analyzing the reasons for human resource planning.

Human resource is a technique to optimum utilization of human resources in a company. It is a direction

for the achievement of goals and objectives. For an effective management of work force in the
organization planning is required and has its benefits in managing the work force. Planning is a futuristic
approach and includes an estimation and analysis of data and makes a framework for the entire process
of human resource management. In the companies like Amway and Body Shop International, human
resource plays crucial role. The effective manpower generates more profits and increases the
productivity of the company. The requirement of human resource planning can understand by following
points (Bach, S. & Edwards, 2013).

 Ensure the required work force: A company cannot achieve its objectives without the adequate
and efficient work force. If there is excess in the number of employees then the cost of
production will be high of company as in the compensation is one of the largest costs of any
company, and if the number of employees will be less than the required then it will reduce the
productivity of the company.So there should be effective estimation of the required work force
in the company. Amway and Body Shop International are Multinational companies so the need
of work force is estimated by analyzing the requirements by different techniques.

 Cope up with changes: In today’s business environment where there is globalization,

privatization and liberalization is there in the market, every company have to change itself with
the change in the business culture. These changes are necessary for the growth of the
company.Amway and Body Shop are multinational companies and have to plan according to the
culture of every country. These changes can be organizational, cultural, technological and legal
(Bach, S. & Edwards, 2013).

 Expansion and diversification of organization: Amway and Body Shop International are most
profit earning companies of UK and have so many opportunities for expanding and diversifying
their business. For applicability of these strategies and plans there are required many resources,
and human resource is one of them. Human resource planning helps to manage these resources
for these plans.

 Optimum utilization of resources: When the work force is effective and work efficiently it leads
to the effective and optimum utilization of other resources.Goals and objectives cam be
achieved by these effective utilization of resources.

The above points are the reasons and importance of human resource planning in the process of human
resource management.

2.2 Outlining the stages involved in planning human resource requirements.

Planning – planning can be defined as a technique by which it is ensure that right candidate is for right
job. In the planning process the requirement is estimated of number of work force by following the
process which is given below.

1. Analyzing the organizational goals and objectives: It is essential to analyze goals and objectives
of organization, which will help to estimate the required work force to achieve these goals. The
priority must be identified of company which will help to categorize the resources.Goals and
 objectives are wide of Amway and Body Shop and they analyze the motive which will influence
human resource management (Mitchell, R., Obeidat,et al 2013).

2. Gap identification by analyzing existing human resources: Analysis is done to identify the

existing human resources and then gap is identified by calculating difference between goals and
existing resources.it is an estimation of demand and supply of human resources. Companies like
Amway and Body shop International keep analyzing their demand and supply of human
resources in the company which helps to maintain the requirement of man power.

3. Developing the plan: A plan is developed to fill this gap by recruitment of employees in the
company. The plan includes all the decisions related to the methods and strategies going to be
used in the human resource management, the prioritized aspects of the organization in the
process of human resource management.Budgetary control and methods of communication and
marketing are also defined in the plan of human resource management.

4. Control: Control can be expressed as the monitoring of the activities of human resource

planning. The process should be monitored effectively which helps to evaluate the variation in
the performance and identify the reasons for that. Amway and Body shop controls their process
of human resource planning by monitoring all the activities (Mitchell, R., Obeidat,et al 2013).

2.3 Compare the current recruitment and selection process in the organization with another
organization you recommending.

Amway and Body shop International are taken for the comparison of recruitment and selection process.
Both companies are FMCG companies of UK.

Recruitment is the technique to maintain the work force in the company by giving right job to right
candidate. On the other hand selection can be defined as a process of choosing the appropriate
candidate by analyzing the required qualities among the applicants. The process of recruitment and
selection can be done by using various sources. Every source has its merits and demerits. Every company
chooses sources by analyzing the goals and objectives of the company. In Body Shop International the
current recruitment procedure is to take telephonic interview of the candidates and then shortlist them
and call for face to face interview. We can see that the company is focusing on the external sources for
the recruitment. External recruitments can be done by advertising the vacancy, placements from
educational institutions, recommendation of existing employees.And selection from the applicants is
done by choosing the appropriate candidate. This is an expensive technique for recruitment and time
consuming also. There are advantages of collection of new talents in the company (Aravamudhan, &
Krishnaveni et al 2015). On the other hand the recruitment policy of Amway is less expensive and
effective also. The company adopts internal sources for recruitment of work force. Internal sources
include promotion and demotion of existing employees, transfers in different departments and
recommendations of existing employees. This approach for recruitment and selection is less time
consuming and also removes the requirement of orientation period and initial training requirements.

2.4 Evaluating how effectiveness is the organization recruitment and selection techniques with another
organization you recommending.

There are two types of techniques and sources for recruitment and selection process, internal sources
and external sources.The Body shop is doing recruitments by external source in which the
advertisements are given in newspapers, blogs, websites and trade publication announcements. The
company is taking telephonic interviews to shortlist applicants and then face to face interview of
remaining candidates. In the external technique of recruitment the time and money consumption level
is high as in there is also required proper training about the work in the company and expenses over
advertisement activities (Aravamudhan, & Krishnaveni et al 2015). Amway has adopted both the sources
of recruitment in which the company tries to fill the gap by internal sources of recruitment but for the
other requirements they applied for external sources. Internal sources include promotion and demotion,
transfer of existing employees. This is a cost efficient approach to fill the gap in the work force. The
company organizes promotions and transfers time to time to manage the human resource in the
company.External sources are also used to appoint the managing human entrepreneurship managers in
the company. The benefits of internal sources results as cost efficiency in the company and more
productivity.This leads to the growth of the organization.

Conclusion

By doing this analysis we can conclude that in the process of human resource management, planning
plays an important role to cover the gap in the quality and quantity of the human resource in the
company.The study of two companies recruitment and selection policies are done to understand the
effective and efficient methods of human resource planning.

Task 3

3.1 Assess the link between motivational theory and reward at Virgin Media or your chosen
organization. Your answer must show if you think there is a link, what connects the two.

Virgin Media is a part of the world’s largest international cable company Liberty Global Plc. The company
virgin media is formed by the merger and amalgamation of NTL, Telewest and Richard Branson's. The
company is providing broadband service to 4.49 million subscribers as per the estimation in first quarter
of 2013.The company ownsUK’s largest fiber optic network which is making the company biggest
privately built network (O'Meara & Petzall et al 2013). Motivation can be defined as the physiological
process which leads the performance of individual or a group in the direction of achieving the goals and
objectives of the company.Motivation is an approach towards increase in the intrinsic and extrinsic level
of willingness of work and also enhance the involvement in the company if employees. The level of
motivation is the parameter for the performance of the work force in an organization. Rewards works as
tool for increasing motivation. Reward includes intrinsic, extrinsic and social rewards. Extrinsic reward
includes the level of compensation employee gets by doing any work. Intrinsic reward is the satisfaction
an employee gets by achieving a particular task. There are so many theories to develop motivation
which relates by reward system.

Maslow’s hierarchies of needs, Herzberg’s two factor theory, Expectancy theory, Equity theory, X and Y
theory is the well-known theories of motivation.In the process of human resource management
motivation is a must factor which leads the activities of human resource in the direction of goals of the
company. Human resource manager is responsible to motivate its employees by giving them reward and
increasing involvement of employees in the company. Virgin media is a company with high goals and
objectives and wide resources. Company has huge investments and number of customers so it is
necessary to achieve quality performance. The company follows the following theories for motivation
(O'Meara & Petzall et al 2013). In the Herzberg’s two factors theory the motivation level is determined
on two factors. These two factors influence performance of the employees. These factors are as follows-

 Hygiene factors- Availability of these factors in the business environment helps to reduce any
inconvenience in the work. It helps to motivate employees lead them in the direction of more
productivity. These factors include security in the company, management quality, relations with
the superiors and subordinated and rules and policies of the company.

 Motivation factors- These factors includes the self-achievement and self-recognition and a
sense of responsibilities. When the employee found interest in his work it works as a
motivational factor. Personal growth of employee is considered in this approach.

3.2 Evaluate the process of job evaluation and other factors determining pay at Virgin Media or your
chosen organization.

Job evaluation is a process which analyzes the rank and value of the job. This evaluationhelps to
categorize task and job on the basis of some criteria. This process is essential to execute human
resource management. The company Virgin Media is the biggest privately built network so there should
proper categorization of jobs and tasks to manage the human resource effectively. The following points
are included in the process of job analysis (Hallman, G et al 2011).

 Job description and planning

 Job classification

 Job ranking and point rating

 Paired comparison

The company does the job analysis by two methods which are non-analytical method and analytical
method.Non-analytical method includes job ranking, job classification and paired comparison.And
analytical method includes point rating, factor comparison, and proprietary brand etc.

3.3 Assess in different contexts (for e.g. attracting talent, retention, and motivation) how effective is the
reward systems at Virgin Media or your chosen organization.

Reward is a tool to increase motivation and engagement of employees in organization. The objective of
reward is to attract the most efficient staff which can increase growth of the company. Rewards help to
maintain the staff retention in company as in it increases their involvement by motivating them that
they are important for effective working of organization. There are different types of reward, intrinsic,
extrinsic, and social reward. The company uses intrinsic and extrinsic rewards to increase the employee
engagement by providing the organizational environment which have organizational values and effective
work life balance, extra benefits, sense of responsibility, self-analysis, trainings and personal and
professional development etc.Virgin media has effective policy for reward system (Hearn, S. 2011).

3.4 Examine the methods Virgin Media or your chosen organization use to monitor employee
performance.

To control and evaluate the activities and performance it is required to monitor the performance of
employees. It is a technique or method to maintain effective human resource management.  Evaluation
of performance is termed as to calculate the difference between the set goals and actual performance
of the employees. This is a process to calculate the variance. The company Virgin Media choose the
following methods to control and monitor employee performance.

 Checking the attitude and reviews- Line managers monitor the performance of the employees
by checking attitude and taking reviews from their superiors and subordinates.  He monitors
that all the activities are executed by considering the organizational culture and ethics (Foss, N.J
et al 2015).

 Ensuring the quality of work- The best way to monitor employee performance is to check the
quality of work of employees and calculating any misinterpretation. It is also checked that the
deadlines are meeting properly and to find out reason in case of delay in deadlines.

Task 4

4.1 Identify the reasons for termination of Faisal’s employment contract with The Chicken Master and
generally explain other reasons for cessation of employment.

As given in the case study that the owner of the chicken master Bob hired Faisal a 54 year old Asian male
having experience of more than 15 years. There are clear instructions given in the company’s employee
handbook which includes all the rules and policies of the company.The reasons for termination of Faisal
are listed below.

 The capacity of employee is not highlighting in his work. He was unable to satisfy the employer
with his work even after the trainings given by the employer.

 The misconduct of Faisal was also a reason for his termination from work. He was not mentally
present in the work he was doing some unethical activities which is against the company’s
culture (Quiñones, M et al 2013).

 This is a statutory or legal reason for termination by the employer. There is employee handbook
which should be followed by the employees. This handbook explains that there should not be
done any personal work by the office equipment. Faisal has not followed these rules and
terminated by Bob.

4.2 Describe the employment exit procedures used by The Chicken Master and another organization of
your choice.
According to the scenario in case study the procedure followed by the employer of Chicken Master is
involuntary termination. In this type of termination the employee do not want to leave but fired by the
employer and have a right to appeal in the court. In voluntary termination the employee leaves the
company willingly for example retirement. There is no termination procedure is followed by Bob. But we
can explain the process of termination as follows (Quiñones, M et al 2013).

 A written statement or a notice is given by the employer to the employee, including all the
reasons which are base for this termination. It is a call letter also for a meeting of employer and
employee.

 A meeting must be conducted before taking any action. This meeting is an interaction between
the employee and employer. In this meeting all the reasons are explained to the employee.

 After the discussion the employee can appeal in the court for his rights.

4.3 Consider the impact of the legal and regulatory framework on employment cessation arrangements
with an organization such as The Chicken Master if Faisal’s claim was proven to be true.

In the country UK there are a legal and regulatory framework is established to protect the rights of the
employees in different prospective. There are so many Acts and regulations established to protect and
manage employee’s problems in civil cases. If the employer of Chicken Master has terminated Faisal on
the wrong statement of problems and the claim of Faisal was proven right then Bob will be punishable in
accordance the following Acts and laws (Duncan, M. et al 2014).

 Sex discrimination Act 1995/97- The employer has replaced Faisal for a woman under the age
40.

 Employment Relation Act 2004

 Race Relation Act 1992

In case the claims of Faisal will be proven as true then he can demand his job as well as a good
compensation from his employer Bob.

Conclusion

The Unit 3 Human Resources Management Assignment is covering all the aspects which are essential for
effective human resource management in organization.It explains difference between human resource
management and personnel management. Importance of all the aspect of human resource management
are explained, like human resource planning, recruitment and selection, job evaluation, motivation and
rewarding system, and process of cessation or termination of employment.