Human Resource Management: Tesco Plc.

Executive summary

Human resource management has become a buzzword in the era of present competitive world. In

an increasing rate, it is becoming the basic function of the management. Human resource

management covers the employment planning, recruitment, selection, training and development,

motivating, promoting, degrading and termination of employees for the organisations. Human

resource management serves the various interests of the organisations and contributes to the

firm’s success through proper management of employees. Human resource management ensures

a proper job analysis, job description and also ensures that right employees to be recruited and

selected to the right posts. It ensures the proper nourishment of current and new employees

through proper training and development programs. Moreover, it facilitates the firm to make the

employees satisfied through better compensation plan and reward system and non-financial

rewards. Satisfied employees can give their maximum effort to contribute a lot the organisations

success. Moreover, it also provides effective tools for measuring the employee’s performance

and monitoring their works within the firm so that firm can evaluate that employees are working

as per their employment terms and job requirements. That means it tries to ensure as everything

is going as per the planning. Various legal and regulatory frameworks are also considered by

HRM to make sure that organisation is working up to the legal requirements and various

regulations. Labour relations and various employee and employment rights also considered by

HRM. Finally, HRM sets the termination policies for proper employment cessation management.

Table of Contents

Executive summary.........................................................................................................................1

Introduction......................................................................................................................................4

Task1................................................................................................................................................4

P1.Does the Human Resource Management Just another Term For personnel Management.....4

P2. Benefits of HRM....................................................................................................................6

P3. Legal and regulatory impacts on Human resource management...........................................7

Task2................................................................................................................................................8

P1. Importance Of human resource planning and its stages........................................................8

P2. Effectiveness of Recruitment and Selection process...........................................................10

Task 3.............................................................................................................................................13

P1. How the agency can determine an effective reward system................................................13

P2. Techniques for monitoring performance with their relevant advantages and disadvantages

....................................................................................................................................................16

Task 4.............................................................................................................................................17

P1. Various reasons for termination of employment.................................................................17

P2. Employment Exit procedures...............................................................................................18

P3: How the legal and regulatory framework could affect employment cessation arrangements

....................................................................................................................................................19

Conclusion.....................................................................................................................................20

References......................................................................................................................................21

Figure 1 Major Steps in HR- Planning......................................................................................10

Figure 2 Recruitment and Selection Process for Tesco Plc......................................................12

Figure 3 Recruitment and Selection process of Sainsbury Plc................................................13

Figure 4 Equity Theory...............................................................................................................15

Figure 5 Expectancy Theory.......................................................................................................15

Figure 6 Tesco’s employment exit procedures..........................................................................19

Figure 7Asda’s employment exit procedures............................................................................20

Introduction

Human resource management is considered as the managing of human capital within the

organizations. HRM recognizes humans as the most important resources within the organization.

This report covers the various aspects of human resources management. In the first part it covers

the discussion regarding the differences between HRM and personnel management. Besides, this

part contains the benefits of HRM and impact of various legal and regulatory frameworks on the

human resources management.

In the second part of the report, the importance of human resource planning and stages of the

HRM planning are discussed. Moreover, the recruitment and selection process for organisations

are discussed in details in the second part.

In the third part, the report makes a detailed discussion on the ways of determining effective

reward system. Various motivation theories also discussed in relation with the reward system.

Moreover, the monitoring techniques are also discussed with their related benefits and problems.

In the final part, the various reasons for terminating the organisations employees are stated. The

report also includes employment exit procedures and the impact of legal and regulatory

framework on the employment cessation arrangements.

Task1

P1.Does the Human Resource Management Just another Term For personnel

Management

Human resource management has become a critical aspect for an organizational the today’s

business context. It is related with the proper nourishment and management of the employees

within the organisation (Odden, 2011). Many professionals conclude that there are a few

differences between human resource management and personnel management and believe human

resource management as the new version of personnel management (Robbins, 2005). They found

little and rare defences between HRM and Personnel Management. However, there are some

conspicuous differences between HRM and Personnel Management in the following areas and

matters.

Personnel management is considered as the traditional approach of managing people in

the organisation where human resource management is considered as the modern concept

of properly managing the people and their strengths in the organisation.

The main focus of personnel management is on the personnel administration, employee

welfare and labour relation whereas the main focus of human resource management is on

acquisition, development, motivation and maintenance of human resources in the

organisation (Noe, 2006).

Personnel management states the personnel function as undertaken for employee’s

satisfaction and human resource management recognizes administrative function as

undertaken for goal achievement.

Job design is done on the basis of division of labour under personnel management. On the

other hand job design function is done on the basis of group work or team work in case of

HRM.

Personnel management focuses on the centralized decisions and it recognizes that

decisions are made by the top management as per the rules and regulations of the

organisations (Odden, 2011). On the contrary, decisions are made collectively after

ensuring employee’s participation, authority, decentralization, competitive participation.

These are the theoretical differences that have been drawn between Personnel Management and

Human Resource management. These two concepts can be differentiated in terms of business

examples as well.

For example, Smith practices personnel management in an organisation. Smith involves with the

proper planning and job analysis to determine his organisation’s Current and future labour needs.

Employees with the proper knowledge, skills and abilities are the key people he tries to recruit.

Smith and his co-workers will also focus on developing their current employees through

employee appraisal and training and will further try to ensure a safe and healthy workplace.

John works in human resource management in an organisation. John always seeks to extent to

which his organisation is appropriately staffed by proper job analysis, planning, recruitment and

selection. He and his team members develop training and development programs. Proper

compensation plan plans are also developed by them. Smith engages in developing policies to

comply with various employment and labour laws, employee relations and continuous

improvement.

P2. Benefits of HRM

HRM performs a critical role in the proper management and functioning of the organisation’s

employees and ensures the functionality of other departments as well. HRM benefits to an

organisation are stated in following discussions

Hiring and Training the workforce

HR Managers employ their substantial effort in setting the strategies for bringing the right kind

of people in the organisation and also plan for the training and development of the hired

employees (Robbins, 2005).

Performance management system controlled by HRM

HR provides time to time feedback to the employees to improve their skills and lessen lacking

and develops a performance management system to evaluate employee performance and reward

them on the basis of their performance and relate organisational goal with the personal goal

(Middleton, 2010).

Building culture and value in the organization

Employee performance in the organisation depends on the work atmosphere or culture that exists

in an organisation and HR department is often responsible for creating a good conductive work

environment in the organisation to ensure safety and high job satisfaction (Noe, 2006).

Conflict Management

Conflict may arise where there is a disagreement between the employee and employer. In case of

conflict, HR department acts as a counsellor or mentor and arbitrator to sort the issues in a

effective manner and tries to take timely action so that thing doesn’t go out of hands (Mathis and

jackson, 2013).

Developing Good Relation

He is responsible for establishing cordial relations between the employees and employers and

often responsible for holding meetings, seminars and all official gatherings on behalf of the

management and sometimes they help to develop business and marketing plans for the

organisations.

P3. Legal and regulatory impacts on Human resource management

In the today’s business context, every firm has to be governed by some specific and effective

institutional regulatory framework that influences not only human resource management but also

overall activities of business organisation (Milkovich, 2012). As HRM is very critical aspect for

any organisation, there will be a lot of legal legislations imposed by the EU as the UK is part of

the EU. HRM has to be concerned about the following laws and legislations.

Sex discrimination act 1995/97, races relations act 1992, equal pay act 1970, disability

discrimination acts 1995 and 2005, employment act 2002, and data protection act 1998.

Besides these legislations HRM must put a considerable thought on various ethical issues such as

asking the candidates the same questions, no biasness by the interviewers for a particular

candidate, gender and ethnic balance on panels. Moreover, they need to focus on the following

regulatory frameworks

European Working time directive (All the counties within EU follow and implement the

same working time for their employees. EU suggested a standard of 48 hours a week by

an act. It also determines restrictions on the maximum length of nightshifts, rest periods

and annual leave of four weeks.)

National minimum wage: is set by the government as recommended by low pay

commissions.

Employee safety and health (maintain safe and clean environment)

Sexual harassment (sexual favours, other inappropriate verbal and physical conduct and

hostile conditions)

Labour relations (procedures for labour unions and indicates what parties can and can’t

do)

Employee Privacy (using of surveillance for monitoring with limited context, but can’t be

used against employees unless there is strong suspicion of inappropriate actions).

Task2

P1. Importance Of human resource planning and its stages

Human resource planning serves many important goals and responsibilities for business. HR

planning provides an aid to the managers to recruit talented staff, management of payroll and

benefits, administration over employee policies and employee training programs (Robbins,

2005). HR plans not only covers the tactical needs but also the strategic needs. Tactical planning

focuses on day to day staffing issues and compliance with government regulations are managed.

Strategic planning facilitates a firm by ensuring establishing updated recruitment and training

programs and provides a path for establishing benchmark through which firms can evaluate its

employee’s performances. HRM resource planning focuses on assessment of the manpower

recruitment for future period of time. HRM Planning involves the following steps

Figure 1 Major Steps in HR- Planning

Source: (Robbins, 2005)

Assessing Human Resources

The basic HR planning starts with the environmental analysis which entails external (PEST) and

internal (objectives, resources and structure) to assess the currently available HR inventory level

and provide a guideline to job analysis.

Demand forecasting

Demand forecasting is related with the process of estimating future needs for HR in terms of

quality and quantity and often required to assess the personnel requirements of the organisation

to achieve desired level of output (Torrington, 2013).

Supply forecasting

Supply forecasting is engaged with the estimation of supply of manpower on the basis of current

availability and future availability of human resources in the organisation. Future sources of of

HR are likely to be estimated by this forecasting.

Matching Demand and Supply

Matching demand and supply is to match the supply and demand of the employees by bringing

demand and supply in an equilibrium position so that shortage and over staffing position will be

solved (Kreitner and Kinicky, 2014). Shortage requires additional employees and overstaffing

demands reducing the level of existing employment.

Action Plan

The last stage of human resource planning is concerned with surplus and shortages of human

resources. Under this plan, different HR activities are executed such as recruitment, selection,

placement, training and development, socialization. Finally this step is followed by control and

evaluation of performance.

P2. Effectiveness of Recruitment and Selection process

Recruitment is the act through which competent, appropriate and qualified persons for a job are

attracted, selected and follow-upped in the organisation (Mathis and Jackson, 2003). The

recruitment process can be handled by the firm’s HRM staff, recruitment specialists and human

resource generalists in the organisation and it can be outsourced as well.

Selection is often seen as a valuable HRM activity which involves a process by which

individuals who have skills, education and experience regarding the job offering are identified

and selected (Miller, 2011).

Recruitment and selection is often seen as an integrated approach for many organisations. But it

may vary from organisation to organisation. Recruitment process for two organisations are

shown in below with brief discussion

Figure 2 Recruitment and Selection Process for Tesco Plc.

Source: (Tescocorp, 2015)

Tesco plc. has termed recruitment and selection process as an integrated approach. Tesco

generally publish vacant job on its own website and other media sites and national newspapers.

After that they collect applicant’s CV’s and make a short list according to the best match with

their requirements. Then they conduct an interview session for the preliminary selected

candidates. They sent letter to the unsuccessful candidates after that interview that they are not

selected and also notify the selected candidates for the second interview via letter. After second

interview session successful candidates are selected and make job offer to them via letter and

make a employment contract with them (Tescocorp, 2015).

Figure 3 Recruitment and Selection process of Sainsbury Plc.

Source: (Sainsburys, 2015)

Sainsbury plc. has taken a broad view of recruitment and selection process. They have outlined

significant differences between recruitment and selection. They followed a detailed approach of

recruitment and selection. First they make a proper a job analysis to find out any need for

additional employees in the firm. Then they specify the job descriptions and other criteria. In the

next step, they decide whether to recruit form within organisation or from outside the

organisation. If they decide to make recruitment from outside organisation, then also decide

whether to recruit by the firm’s HRM staff or by outsourcing. After that they decide on the

application methods and advertise the job in various Medias. All these steps form the recruitment

process for them. Their selection process involves making short list of the candidates from the

application submitted. After that they take written exam and interviews for evaluating the

candidates and make a short list for job offer. In the next step they look for references and make

final selection and make job offer. Finally, they introduce new employees within the firm

(Sainsburys, 2015).

Task 3

P1. How the agency can determine an effective reward system

The task of determining the reward system often creates a dilemma for the HR mangers. HR

managers have to consider many options to determine the effective reward system. These

consideration set may include an effective compensation system or pay, profit sharing, gain

sharing, commissions, bonuses, stock options etc.

Compensation system

A compensation system is often used to determine the amount of pay to be given to the

employees within the organisation for their contribution to the organisations operations,

effectiveness and efficiency (Maccarthy, 2014). The basic components of compensation system

are

Pay structure

Pay level

Pay form

Pay may change from year to year because of seniority and longevity, cost of living,

performance/merit, changes in job scope and increase in individual qualifications. Employees

within the organisation may be satisfied with the pay or dissatisfied with it. Pay satisfaction

depends on two major factors. They are

Pay adequacy is the degree to which an individual’s pay level satisfies his or her financial

needs.

Pay Equity refers to the extent to which an individual perceives his or her pay level as

equitable or fair in comparison to the others.

Pay equity can often be judged in terms of the equity theory of satisfaction and motivation that is

often based on the premise that individuals search for achieving a balance between the ratio of

their contribution to rewards to the ratio of contributions and rewards of others (Robbins, 2005).

Contributions include the job contributions, performance contributions and personal

contributions. Equity exists when this ratio balance is achieved

Figure 4 Equity Theory

Source: (Robbins, 2005)

Company can sometimes motivate employees with the pay. They follow expectancy theory to

motivate employees perform extra role behaviour. This theory includes instrumentality, valence

and expectancy.

Figure 5 Expectancy Theory

Source: (Mathis and Jackson, 2003)

Firms sometimes introduce merit pay system for compensating their employees.

Commissions

Commissions are more popular for sales position where sales people are provided with

commission based payment with a fixed amount for their extra effort or performance.

Incentive plans

These system based on the premise that individuals will be paid on his or her measured

productivity. This includes price rate (number of units produced), standard hour plans (extra

payment for overtime works).

Bonuses

Bonuses are generally considered as the lump sum payments awarded for the accomplishment of

specific objectives. Three types of bonuses are individual, team/group/departmental and

organisational (Hunt, 2013).

Profit sharing

Profit sharing is considered as the system in which individuals receive an annual bonus based on

the overall profitability of the organisation.

Gain sharing

Gain sharing are provided on the monthly, quarterly or annual bonuses basis for the employee

productivity generally measured by a formula comparing labour costs to value of products

produced (Liao, 2012).

Stock options: Employees are provided with the opportunity to purchase shares of the company

at a specific predetermined price as an alternative to bonuses.

Motivational potential: Individuals believe that working efficiently and effectively will increase

the profitability and thus increase the stock value of firm.

P2. Techniques for monitoring performance with their relevant advantages

and disadvantages

Monitoring and evaluating performance is often required by the HR mangers to ensure that

employees within organisations are performing their jobs according to the planning and

determine the reward for the employees. The monitoring and evaluating of employees include

Monitoring the employee’s performance with one’s own eyes is one of the most effective

way. The major advantage of this technique is that this will give much more idea about

the employee’s performance. Besides, the manager can easily detect what is going wrong

with the employees and how the employees can do better (Maccarthy, 2011). But the

problem with this method is that it is quite difficult to monitor each employee

individually within the organisation.

The second way to monitor performance is to ask for an account. The method of asking

for an account is related with holding a person accountable that will come naturally if are

having regular one-on-conversation.

The third technique is to emphasize the employees to use self-monitoring tools that will

help the manger to keep track of their actions. Employees are encouraged to use project

plans, checklists and activity lists. Project plans help to monitor whether they are meeting

their goals and deadlines of projects or works. Checklists may be helpful as employees

make notation within it when they accomplish their work and this list is shown to

manager within a regular interval (Crowther, 2013). But this technique is often seems to

be time consuming as it takes a long term view.

The fourth way to monitor the employee’s performance is to review work in progress on

a regular basis. The advantage of this technique is that the manager can’t actually keep

track of everything every employee does but they can check random samples on a regular

basis for monitoring the employee performances (Liao, 2012).

Providing feedback is another way to monitor the employees’ performance. Feedback

must be objective, specific, and timely and must provide a conspicuous signal of how

people perceive behaviour and performance. Supporting evidence must also be

associated. The advantage of feedback is that it enhances performance and enhances

motivation for work. If it is not provided with right substances and proofs than it can

create negative experience (Robbins, 2005).

Task 4

P1. Various reasons for termination of employment

Human resource management not only involves the finding, selecting, training and developing

the employees but also it involves the termination of employees as well (Robbins, 2005). HR

managers sometimes take decision regarding termination of their employees for several reasons.

Those reasons are shown in below:

Inadequate Job Performance

If the employee within the firm can’t perform up to the organisations requirement and fulfil his

tasks properly, then the manager can preliminary provides feedback to him and counsels as well

(Tony, 2012). If employee provides little concern and passion to his job even after counselling,

then the manager can terminate him.

Business Conditions

Sometimes, managers have to take the decision of layoff because of economic reasons as

opposed to poor performance. Layoff can be both permanent and temporary.

Unacceptable behaviour

Some unacceptable behaviour like breaching the firm’s code of ethics, stealing the firm’s

property, engaging in sexual harassment or verbally or physically terminating another employee

may drive the manager to terminate the employee from the firm.

Absenteeism

An employee who misses work frequently or reaches the office late habitually may affect the

organisation’s performance and may place unfair burden on firm’s other employees and that’s

why manger can terminate them from the organisation (John, 2011).

P2. Employment Exit procedures

Employment exit refers to procedures used by many firms to terminate employees in good

professional manner. It is applicable to the employees those are terminated from the organisation

and those resigned from the organisation. Here two organisations are chosen for analysing their

employment exit procedures.

Figure 6 Tesco’s employment exit procedures

Source: (Tescocorp, 2015)

Tesco Plc. has suggested some formalities for its employees whenever the employees want to

resign from the organisation. At first, they collected the resignation form from employee. Then

they check the employment agreement to confirm that resignation is valid in terms of the

organisation’s established rules and policies and various legal requirements. After confirming

that they either accept the resignation letter or not accept it if there is a problem. If they accept

the resignation letter they calculate the final pay to the resigned employee. After that they

conduct an exit interview to gather information about his resign and job satisfaction and probable

recommendation for HR. Finally they collect the firm’s belongings from the resigned employee

that were given to him during his employment (Tescocorp, 2015).

Figure 7Asda’s employment exit procedures

Source: (Asda, 2015)

Asda group also maintains a detailed employment exit procedure for its terminated employees

and employees who want to resign. At first, the exit administrator within HR is notified about

exiting employees whether they are terminated or resigning. Then, EA sends invitation to those

exiting employees to complete exit survey via letters. After that EA monitors the responses of

those employees whether they are inclined to complete the survey or not. If they don’t show any

respect for the survey, then EA sends a reminder. In the next step, employees completes survey

about the cause of living the organisation or making any kind of suggestion and their satisfaction

with the job etc. Finally, EA conducts a proper check to keep the exiting employees responses

confidential (Asda, 2015).

P3: How the legal and regulatory framework could affect employment

cessation arrangements

The legal and regulatory framework must be under the consideration set of HR managers at the

time of cessation of employment in the firm (Witte, 2013). Each organisation has its own set of

terms and conditions for employment cessation or exit procedures of employment. The

organisation not only has to comply with its own standards but also it has to focus on the other

legal and regulatory framework within which it is operated (Graham and Benet, 2012). If an

employee is terminated on the basis of sex discrimination then the sex discrimination act will

protect the employee from being terminated. Moreover, if an employee is terminated on the basis

of racial segregation then races relation act will protect the employee being terminated. Besides

that, data protection act will support the organisation in case of data stealing and supplying by an

employee to other organisation and allow the firm to terminate the employee. Regulatory

framework will allow the employer to terminate the employee if he violates the code of conduct

of organisation and make sexual harassment within the organisation (Graham and Bennet, 2012).

This legal and regulatory frameworks are established to benefit both the employee and employer

and make an equal playing field for both parties. Sometimes, labour unions prohibit or impede

the firm to terminate the employee from the organisation. Organisations need to be concerned

about these things.

Conclusion

From the above discussions, people can come to know the degree of importance of HRM to an

organisation. In the present context, it is quite difficult to properly run the organisation without

the help of skilled and knowledgeable employees. But, these employees can’t be managed in an

easy way. HRM provided the organisations with the ability to better manage the workforce

within the organisation. It ensures the employee empowerment, workforce diversity, workforce

engineering and continuous improvement within the organisation to make it efficient and

effective in case of business planning and operation. That’s why it takes no hesitation to term

HRM as the part and parcel of organisations management.

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