In the era of present competitive business world, Human Resource Management is an important and one of the vital issues for any type of organization. Day by day human resource management is becoming as a part and parcel study management. By human resource management we mean that it is a process of recruiting, selecting and developing people at work. Human resource management can be distinguished from personnel management in terms of some key issues of managerial activities. Perfectly human resource management ensures the success of business organization at a large extent. Although the basic and key functions and practices of z are almost same and common for most of the organization of the world but still many of them may vary from country to country to country and organization to organization. The functions of human resource management highly contribute to the purposes of any organization. There are some common terms of human resource management which are very important for organization like employee recruitment, training and development, performance management system, labor relation and collective bargaining, employee benefits, motivations etc. Strategic implication of a human resource management environment, at present, is a common concern for each type of organization. In the era of globalization business organization are more or less concentrated to international business related operations. Particularly for the multinational companies workforce diversity, changing skill requirement, labour shortages,some common issues. And managing those issues human resource management practices are must. For HRM practices there is a legal and ethical perspective that are essential to follow by managers of the organizations.Human resource management significantly benefit organization and Harrods is a remarkable example for it. This assignment will be made with an eye to Harrods.
Task 1: Understanding the differences between personnel management and human resource management.
According to Budd& Behave (2010),by human resource management it is meant that human resource management is such a part of management what is highly concerned with the people or employees working in the organization. Human resource management can be seen by two ways. Firstly, for example, human resource management is considered as the staff or support functions and its contribution is to conform assistance to the line managers or to the worker involved in production or service related activities. Secondly human resource management can be recognized as the functions of every manager’s job because in organization , when one manager failed to perform perfectly another one may do it perfectly.
On the other hand personnel management refers a system or discipline of hiring and growing employees. It includes job analysis, planning personnel needs, recruitment and determining wages, salaries, compensation and incentives (Rothwell & Kazanas 2003).
P1.1: Distinguishing between personnel management in Small retail organizations practicing PM and human resource management at Harrods.
Differences between personnel management in small retail organizations and human resource management in a large organisation is broadly seen in terms of some key factors like types of operations, decision making, employee engagement or involvement, motivation, employee turnover rate, employee thinking about long term career for future etc. It can be said that personnel management is just a part of human resource management.(Boxall& Macky, 2009).
In a small retail organization there are may be a few persons are recruited for its daily operations and performances. Here an autocratic mode of the owner is observed. This type of organization is not more concerned about Motivation factors for employees since it can be stopped any moment or any time. There is no more categories in employees. Since the pattern of operations don’t vary too much so manager or owner is not much concern about motivation. The owner directly or indirectly supervise the employees engaged in daily operations.
On the other hand, the organization like Harrods has a lots of employees. Harrods has to categories its employees in different sections to perform the various responsibility. Management of Harrods is so much concern in terms of motivation, employee turnover, reputation, controlling. Management is categorized by top level managers, middle level manager, staff manager, line manager etc. Harrods has a very specific and fair corporate governance to manage the whole activities of this organization.
P1.2: Assessing the functions of the human resource management in contributing to Harrods purposes.
In each organization, there are some functions addressing the purposes of the organization. Since human resource management is a vital and essential issue for organization so HRM has also some functions like recruitment and selection, performance, training and development etc. (Huselid & Becker, 2011).
Recruitment and selection indicates the whole activities from circular for employees to final selection. In this range job description, circular, different written or viva voice, negotiation and final contract to the selected persons. Training and development refers to the elementary learning and lessons about the knowledge needed to perform the jobs. Employee development also refers to grow employees as effective and efficient for specific jobs.
To address the purposes of Harrods, the human resource management functions are playing very important role. Harrods has a very fair and specific employee recruitment policy. Harrods always prefer quality rather than quantity. Harrods always try to prefer the skilled, talent and smart employees without any discrimination. This recruitment policy is highly contributing to Harrods to ensure today’s lucrative position in market. Harrods has some expert trainers by whom it conforms the effective training and learning session.
P1.3: Evaluation of the roles and responsibilities of line managers at the Harrods human resource department.
It is beyond description matter that the roles and responsibilities of line managers of any organization is very important to achieve the ultimate goals of that organization (Bose lie, Dietz & Boon, 2005). Since the key functions are supervised by the line managers so line managers should be very sincere, dutiful, knowledgeable and honest.
Harrods today’s reputation and lucrative position in market is being possible by a strong and very specific management system. One of the notable factor of this achievement is the roles and responsibilities of line managers. The roles and responsibilities of line managers of Harrods are very specific. Line managers always supervise their subordinates properly. Line managers of Harrods are very responsible in terms of helping and problem solving in daily operations of their subordinates.
Based on the culture of Harrods, there is a strong relationship between the line managers and their subordinates. This relationship helps the employees take Harrods as their own organization. And by dint of this relationship scenario Harrods is now at this level.
P1.4: Analysis of the impact of legal and regulatory framework on Harrods human resource management.
From the very beginning of 21st century, business organizations and its activities are governed by a very specific and effective institutional regulatory framework. This regulatory framework influence the overall activities of business organization. And human resource management is a key issue to be influenced by regulatory framework. Regulatory framework is notably influence the human resource department when company goes for international operations for business performances (Preuss, Haunschild & Matten, 2009).
Harrods is very serious and sensitive in terms of discrimination in human resource management practice concerning the ethical and legal perspective of legal frame work. Human resource management department of Harrods is also influenced by legal framework in terms on labour dispute, labour relations, labour rights, compensation, employee work environment, organization attitude towards its employees etc.The another area of human resource management to be influenced by legal framework is equal employee opportunity. So the impact of regulatory framework of Harrods positive as Harrods always try to achieve the best by its commitment to fulfill the rules and regulations law and ethics.
Task 2: Understanding how to recruit employees.
Understanding the ways employees are recruited is very elementary part of business related knowledge. If managers have not proper knowledge about recruitment process the overall and ultimate goal of any organization may not stand aligned. Understanding how to recruit employees means the knowledge of hiring and selecting proper and appropriate employees for an organization (Windolf, 1986).
P2.1: Analysis of the reasons for human resource planning at Harrods.
It is said that, “a correct planning is half of done”. Human resource planning refers the process and technique and determination the needs of an organizations human resource. Planning is must for any type of organization. Without proper planning no activity can be performed perfectly for maximum cases. Since human resource management is a vital factor for organization so importance of planning for human resource is very essential.
There are some important reasons for Harrods’ planning for human resource planning. Some of those reasons to be discussed now. Firstly Harrods always try to make the linking between organizations strategy to human resource planning. Harrods also needs for planning for assessing current human resources, determining the demand for labour, predicting the future labour supply, finding or searching the needed employees, matching the demand and supply for labour. Human resource planning helps Harrods to manage its human resource effectively and efficiently.
P2.2: Outline the stages that Harrods can adapt in planning human resource recruitment
For human resource recruitment there are some standard stages that can be adopted by an organization. Those stages are almost common for medium and large size of organizations. But for achieving or availing competitive advantages in terms of “human resource” many organizations are now a days practicing at those stages in somewhat different ways.
Harrods is very well known and famous brand in the business world in terms of its good will in terms of employee selection process and employee and employer relationship. For this Harrods has to adopt some recruitment stages effectively and efficiently.
Two major stages of Harrods recruitment of employees are recruiting sources and meeting the organization. Firstly Harrods is try to maintain by its recruiting sources by internal source, employee referrals and recommendations, external searches with advertisement, employee agency, school, college, university, unsolicited applicants. And meeting the organization includes resumes collection, some final remarks, viva voice and finally the recruitment is occurred.
P2.3: Comparison of the recruitment and selection process at Harrods with another organization as John Lewis, M&S or Salisbury etc.
Recruitment and selection process is one of the major issues of “human resource management”.
The ultimate success or failure greatly depends on recruitment and selection process of any organization (Lloyd, 2007).
Recruitment and selection process varies organization to organization and country to country. Some differences are observed between the recruitment and selection process of Harrods and John Lewis, M&S and Salisbury. From the background of Harrods it has been known that Harrods follow a very fair and non-discrimination for recruitment and selection process. Corporate governance’s are fully followed by it. Beside that it try to select the active, smart, communicative people. Harrods’ recruitment and selection process starts with advertisement and ends with practical or demo session. The significant differences are seen between Harrods and three others mentioned above in recruitment and selection process in terms of internal selection, hiring people for final selection process etc.
P2.4: Evaluation of the effectiveness of the recruitment and selection techniques in the above selected organizations.
If we try to evaluate the effectiveness of the recruitment and selection techniques in above selected organizations we can say that the recruitment and selection process of Harrods is very effective compared to others. The process or technique followed by Harrods ensures the equal employee opportunities. Suitable and required employees can be selected by that way. One the other hand for other three organizations there may internal selection process that can result bellow the expectation performance level.
Harrods never prefer nepotism in terms of recruitment and selection process that ensures the effectiveness and efficiency in terms of performances. But there may be some problem arise since a few moment observation by test and viva may not always work well. In this regard internal recruitment and selection process sometimes work well since by this technique corrective recruitment is possible at a greater extent.
Task 3: Understanding how to reward employees in order to motivate and retain them.
Rewarding employees is considered as the another most important issue for motivating employees and retaining them. Employee motivation and retention are two important key for the sustainable development for an organization. The organization capable to motivate and retain its employees by proper reward system must be benefited in terms of cost minimization and sound employee and employer relationship in long run (Kuvass & Dysvik , 2009).
P3.1: Assessment of the link between motivation theory and its reward with and application on Case study.
Normally there is a strong relationship between reward system and motivation. Motivation can come from many ways. Appropriate reward system is one of them (Kiyani, Akhtar and Haroon, 2011).
From the above case study it has been seen that intrinsic needs results the strong motivation for the employees. The intrinsic needs are the needs of the individual needs. Human being, generally, have a number of key psychological needs including the need to feel that employee can do something well, the need to be a part of group, the need for respect and encouragement from others. Those needs may come from some certain issue like promotion, making decision, contributing to a team, doing variety of tasks etc.Harrods is such an organization that has a strong commitment to meet these needs by job rotation, employee engagement, employee involvement in decision making that always create a strong link between employee and employer.
P3.2: Research and evaluation of the process of job evaluation and other factors determining pay with special reference to Harrods as my scenario.
There is a close relationship between job or performance evaluation and payment. But payment strategy may vary organization to organization and country to country over the world. In some organizations job or performance evaluation is only one criteria to determine the payment. And it is true for small retail organization for the maximum cases. But in case of large size based corporation other factors with job evaluation may be considered as very important issue to determine the payment or compensation.
Based on the scenario of Harrods it has been observed that, are three methods of job evaluation are seen like ordering method, classification method and point method. Ordering method also known as ranking method generally consisted by both management and employee representatives arranging job from highest to lowest order.
P3.3: Assessment of the effectiveness of reward system in different contexts with our references to Harrods.
According to the experts of
human resource management
, four types of reward system are there practiced by the organizations. They are consecutively intrinsic versus extrinsic reward system, financial versus non-financial reward system, work place issue: job enrichment, performance-based versus membership-based reward system.The motive and goal of each organization is not same. So one reward system is effective for one organization. It varies organization to organization.
If we try to assess the reward system of Harrods it can be seen that Harrods is following the intrinsic reward system that is very effective for this organization. The employees of this organization is so much pleased to this reward system. The characteristics or features o intrinsic reward system are very helpful for its employees as this reward system includes participation in decision making, greater job freedom and discretion, responsibility, more interesting work, personal growth opportunities, diversity of activities. These all features are very helpful to motivate and retain the employees of this organization.
P3.4: An examination of the methods adopted by Harrods to monitor employee performance. Comments with suggestions.
Monitoring employees and performance management is one of the key factors in human resource management. Without proper monitoring and performance management a firm or organization can’t see the ultimate success in future (Van Herpen, Van Praag, and Cools, 2005).
When we try to examine the methods adopted by Harrods to monitor employee’s performance some questions may be very helpful to examine it. Those questions should be (1) is the method perform well ? (2) are there any fruitful methods more effective than that of it ? (3) how actually is works well?
Getting all the answers from the practical scenario we should have a look to Harrods’ approach to do it. We can see that Harrods is very eager to engage its employees in decision making, to job enrichment etc. The purposes of Harrods are being achieved by doing so. Now we can think if this organization takes another methods to monitor its employees then what will be the real scenario? The answer can be very pessimistic. So it can be said that the method followed by Harrods is working favor for it.
Task 4: Knowing the mechanisms for the cessation of employment.
Cessation of employment is a very sensitive issue for an organization in modern and competitive world of cessation. Although cessation is not expected any more from an organization but still this scenario is occurring in some organizations. Cessation can be occurred by the termination of any organization or minimizing the labour costs or any disputing or unfair means of means. Cessation of employment is more sensitive issue because of labour law and labour rights.
P4.1: Identification of the reasons for cessation of employment with special references to Harrods in general.
As I have mentioned there are some specific reasons behind cessation of employment like termination of business operations, minimizing the labour cost, unfair means of employees, labour dispute etc.
When we see the reasons for cessation of employment with special reasons to Harrods it is to mention that the cessation rate of employment of Harrods is very low. For the maximum cases cessation of employment in Harrods was occurred for fraud and highest absenteeism rate of employees, financial distaste in early stages of its operations. Besides that cessation of employment was seen in that organization because of very poor performance in terms of customer dealings, customer relationship maintaining. Among the reasons mentioned above financial distaste is remarkable specially for Harrods and for most of the organizations. Recent world economic crisis is the suitable example for it.
P4.2: Research and description of the employment exit procedures used by Harrods and the comparison of it with any other organization of my choice.
Employment exit procedure is the next step of cessation of employment. It varies organization to organization and country to country. But the rights of employees must to be ensured by each type of organization. The employment exit procedure system should be very fair and specific. According to the labour right organization must ensure the fair means of employment exit procedure (Standing, 1988).
Employment exit procedure of Harrods is very exemplary for other organization. Firstly it inform the employee formally about cessation. Secondly it gives time to employee to put his or her argument against the step taken by organization. If employee is not able to put his or her argument in his or her favor, organization formally inform him or her finally. Then Harrods fulfill all the requirement due to the employee. Then a cessation card is sent to the address of employee. For comparison we can put an example of Wall-Mart. But many of the retail shop’s don’t match with the procedure followed by Harrods. For example we can see mention the name of Wall-Mart. The exit procedure of employment of Wall-Mart varies from that of Harrods in small extents in terms of providing information providing.
P4.3: Consideration of the legal and regulatory framework on employment cessation arrangements with special reference to Harrods.
Maintaining the regulatory framework at the time of cessation of employment is very essential for corporations of the business world (Grubb & Wells, 1994). Each and every organization must have to follow the terms and conditions of cessation and exit procedures of employment.
When we consider the cessation arrangement of employment in Harrods it is seen that the cessation procedure of Harrods match all the requirements of legal issue. Harrods never try to violate any terms and conditions derived from legal framework. From the background of Harrods it is known that, Harrods never tried to skip any articles and provision of labour law and labour rights in terms of cessation procedures.
From the above discussion we can conclude such a way that since human resource management is a continuously practicing issue so it plays a significant role on organizations overall performance. If an organization wants to gain full benefit from human resource management it should follow all the sections of HRM. In a small retail organization there are may be a few persons are recruited for its daily operations and performances. Here an autocratic mode of the owner is observed. This type of organization is not more concerned about Motivation factors for employees since it can be stopped any moment or any time. Harrods never prefer nepotism in terms of recruitment and selection process that ensures the effectiveness and efficiency in terms of performances. From the background of Harrods it is known that, Harrods never tried to skip any articles and provision of labour law and labour rights in terms of cessation procedures.Harrods itself has legal advisory board that always deal the legal based issues and provides the fair and specific consultancy to take the necessary steps.
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