Business organisations have various departments. These enterprise need different divisions because if they will allot all the work to a single department then it will result in mismanagement (Human Resource Management Review, 2017). Human resource is a wing of organisations who is responsible for managing employees of the company (Albrech, 2011). The recruit workers and do all the activities which is directly connected to employees like their promotion, provide training to them, solve their problems etc. ‘Say it with Chocolate’ is known for selling tailor made chocolate greeting cards. They are present in every part of UK and this company is facing issues like high employees turnover and poor selection method. This report will discuss about purpose of human resources management along with the function which is perform by HR division. Their are different recruitment methods and they will be discussed in this assignment. The benefits of HRM to employer and employee will also become part of this file. Human resource practice made a huge impact on profitability and productivity of the company, this point will be explained in the report by considering case of Microsoft. Employee relation and various legislations relating to employment will g
P1 Purpose and functions of HRM
Significance of HR division is rapidly growing in this business era because company's now understand that if they will not recruit right person for a job profile then organisation will never succeed on attaining their set targets because employees do those work which cannot be done by machine. They make strategies and they understand the needs of customers. ‘Say it with Chocolate’ is facing various issues but the most important is increasing employee turnover. Role of HR division is important in resolving this issue (Anderson, 2013).
The main purpose of existence of HR division is to recruitment best candidates for the company. If a company will not hire appropriate number and quality of human resource then they cannot perform any task in effective manner. ‘Say it with Chocolate’ has high employee turnover because they are not selecting those candidates who are fit for a position. HR team in the organisation is made by hiring right people in the organisation and it can be considered as the main purpose of this HR division. If this function of the organisation is performed in appropriate manner then company can achieve their set targets and expand their business at global level. Another function which is done by HR wing is to make the policies for the organisation and communicate it to all the employees of the firm. They do not only construct policies, they also assist company in following various legislation which is made by government. Management of ‘Say it with Chocolate’ do not have time to focus on this issue because it is not directly connected to the revenue of company so they give this responsibility to HR team. This division make sure that every employees follow the rules which is made by government along with organisational policy (Armstrong, 2011). Achieving this purpose results in saving millions of pound of the company which they may have to pay in the name of fine.
HR team has to do another important function which is related to training and development of employees. They find training requirements of employees and then arrange their training sessions accordingly. ‘Say it with Chocolate’ is failing to provide proper training to the employees so most of them are leaving organisation because they do not see career growth. If workers get training then their productivity enhances which ultimately help company in earning more profits.
Responsibility of HR officer
HR office is an important post in every organisation because this person is responsible for managing all the workers who are working in the firm. In the case of ‘Say it with Chocolate’, HR officer first have to change recruitment procedure because it is not working for company and HR officer is responsible for recruiting best man for a job. An important role of manager is to resolve issues, like related to salary, of employees so they do not leave the organisation and employee retention ratio of company improves in less time period (Bamberger, Biron and Meshoulam, 2014). It is the responsibility of HR officer to work as a bridge between both sides i.e. workers and employers. In present scenario, ‘Say it with Chocolate’ is failing to hire correct candidates and this why new employees are not clearing test of company. HR officer is accountable for telling management that they have to make changes in the process of selection. Math and English are not the right criteria for recruitment and HR officer is accountable for this changing this ineffective procedure of selection by giving proposal of a new process to the management of company.
P2 Strengths and weakness of different recruitment methods
If employee turnover ratio in a country is increasing that their can be many reason behind it. At ‘Say it with Chocolate’, the reason is that company is failing to select right people and this is why new employees are failing to pass the test which is taken by company after completion of probation period.
Merits and demerits of present selection procedure
This company is currently using methods like interview and assessment test of English and methods at the time of hiring a person. An important thing about the first part of selection procedure is that every candidate has to earn at-least 50% mark in both subject i.e. English and maths. If they clear the test then next part is interview which is done in an informal style. The strength of these method is that it help company is finding those candidates who have basic knowledge about common language like English and their intellectual power can also be checked by assessing the marks they get in the maths test (Bloom and Van Reenen, 2011). Maths is a subject which assist company in checking the whether the applicant possess basic common sense.
Beside this, informal interview allow company to check that whether the claim which candidate in making those his/her degrees is true or not. ‘Say it with Chocolate’ do not only need people who are good in maths and English, they also want employees who can support company in resolving the issues related to poor quality of products and service. Anther merit of this method is that it help in understand the person who may work in the organisation in upcoming time. Nature and thinking of every person differ and one cannot find it by taking a test. Informal communication do not put an extra pressure on the candidate which can normally be found in formal interview where most of the time interviewee fail to express himself/herself.
The weakness of assessment test is that it does not cover an important part i.e. psychological testing. ‘Say it with Chocolate’ need those people in the firm who can handle pressure and at the same time they have ability to become expert in their field. Informal interview also have many weaknesses like sometime it interview has to convince a potential candidate to join the organisation but because of his/her informal approach, other person do not think that company is serious about their business (What is human resource management?, 2017). Another issue with informal interview is that interviewer may forget to ask some very important questions to interviewee because he/she does not a process to follow. Missing key question always happen in informal interview and it ultimately make whole procedure very weak (CHUANG and Liao, 2011).
As mentioned earlier, psychological testing is an effect approach because it help in understanding whole personality and attitude of a person which cannot be analysed by taking test of subjects like Maths and English. Reference is another important and effective method of selection which allow company to start and use formal interview in a right manner. If a person is suggesting someone for a post then he/she must have basic idea about work and skills which is present in the referred person. This approach may have some issues like candidate fail to properly present himself/herself but it may provide right employee to the company who can work in the company from a long period of time.
Improvement in current selection method
Present method of recruitment can be improved by adding a psychological test and organising a formal interview in which interviewers can have some informal communication with employees so they do not feel unnecessary pressure at the present themselves in properly. They also have to opt options like campus placement and reduce dependency on present tests (Farndale, Scullion and Sparrow, 2011).
Application of HRM practice
''Say it with Chocolate'' want to hire a receptionist in the organisation and HR team have to make arrange for the whole procedure.
Person Specification for receptionist
Department --- Administration
Job title --- Receptionist
''Say it with Chocolate'' have to find various options for this post and they cannot find right pool of talent without adopting right medium of advertising. Although there are various medium which a company can adopt like print advertising, Broadcasting, digit advertising etc. ''Say it with Chocolate'' will adopt digit adversing because most of the people are now spending more time on internet compared to T.V or newspaper. This company want to recruit best person for this job and an advertisement on mobile or computer will assist them in calling more people for the interview compared to other options (Flamholtz, 2012).
This company has used Newspaper and Broadcasting in past for job advertisement. These two mediums has their own pros and cons. Newspaper is not an expensive source of advertising and company can post a big advertisement on the paper as there is no issue relating to space. But there is a big disadvantage related to Newspaper advertisements i.e. they have limited reach. Their popularity has also went down among young generation in past. Broadcasting is very expensive and this can be considered as its prime disadvantage. But there is a big merit which is attached with Broadcasting i.e. its reach. If a company will telecast their advertisement at prime time then they can address maximum number of people in short period of time.
Q1. Tell me something about you.
Q2. Why do you want to make career in this filed?
Q3. What was your role in previous job?
Q4. What do you want to work for this company?
Q5. What is one quality which you possess and other applicants do not have?
P3 Advantages of HRM practice of both employee and employer
Human resource management division do lot of work and it do not only provide benefits to employer but to employee also. Microsoft is among one of the most successful company of all time and they offer apprenticeship and training session to their employees.
Benefits of Microsoft's training programmes to employer and employees
Microsoft is a successful MNC and they know that if they will not work on weaknesses of their employees and teach them new thing then company cannot retain the position where they are present now. This training programme is the key part of organisation's HRM practice and it help many young graduates to get a chance for learning new stuff which is required for employees career growth. Every employees seek fast promotion and more money. In training session they learn new and updated things which increase knowledge of workers and assist them in grabbing promotion and more incentives (Hendry, 2012).
Employer i.e. Microsoft also have various advantages of their apprenticeship and training scheme. This company understand that they are working in an industry where if they will not focus on innovation and retention talent then they cannot succeed in their mission. Microsoft made a quality workforce who can face any challenge by using this programme. Their revenue and market share also increased with a high rate because their employees had more practical knowledge and they were ready to work at low salary because many of them were young graduates. New employees do not care much about money, their main aim is to learn and increase their value in the organisation and Microsoft use this thinking for increasing their profit margin.
Opportunities to permanent staff members
If an employee, selected by company, get permanent then then various opportunities get unlock for him/her. Microsoft have lucrative incentive scheme for their permanent workers and permanent employees can earn huge amount of money by using their knowledge and skills (Kehoe and Wright, 2013). This company give special rewards to those workers who provide innovation solutions to problem but only permanent staff workers are allowed to get a chance in the team who is responsible for working on big projects. Besides monetary benefits, they also get more number of leaves and they can set their office timings according to own schedule. One of the most important opportunity which permanent employees get at Microsoft is that they get an environment where their ideas earn appreciation and a chance to work with great people i.e. industry experts.
P4 Effectiveness of HRM practice in terms of productivity and profitability
The work of human resource division is getting more and more important in this era because now it is directly connected to productivity and profits of the organisation. The people who are selected by this division work on significant projects of the company and if these employees do not have required set of skills then productivity of whole team go down which ultimately make a negative impact on company's profits.
Benefits of Microsoft flexible working practice
HR division play an important role in resolving the issues of employees. Microsoft is known as an organisation where people have to work for long hours. HR department of company started a new scheme where employees get permission to set their timings of working according to their desire (Kusluvan and et.al., 2011). This flexible working hour strategy made a positive impact on their performance of workers by increasing their productivity. Earlier workers have to change their lifestyle in when they join the organisation but now company have a flexible working hour policy which allow employees to come at a time which they suits them. Employees starts earning more incentives which means that company is also earning more profit as incentive is only a small portion that is given by company to its employees. Company allowed their employees to work from at place and on any device. Sometime workers take leave because they cannot come to office but this approach allow employees to work the location where they are currently present. The work of company does not get hamper because of the leaves taken by workers. Their are few employees who like to work from home or a coffee shop, this approach give them a chance to work in the environment which is suitable for them so their productivity do not get hamper and company continue to earn high profits.
Motivation at Microsoft
Microsoft is a big corporation and they know that if they will not design the jobs in a proper manner then employees will not stay in the organisation or they will feel and unnecessary pressure (Lengnick-Hall, Beck and Lengnick-Hall, 2011). Company motivate their employees by designing jobs in a such a way that they can develop a work-life balance and assure wellness of employees. Most of the MNCs think that they can motivate workers by giving them more monetary benefits but they do not see than if a person will work for more than 14 hours a day for a long period of time then he/she can never keep a balance between his/her work and social life. Beside job design, this company also use reward scheme for motivating employees. Company ask workers to work on a project and do their job. If employees perform better than company's expectation then they get reward for it. Microsoft have a clear reward system, work more and earn more.
P5 Significance of employee relation
Employee engagement means commitment of employees towards organisation's goals. It is a emotional commitment where worker actually care about their job and responsibilities. Every organisation want to their employees to get emotionally attached with the company because it reduces workers turnover ration and provide stability to the business of company. The relation between employer and employee is known as employee relation. Their was a time when trade unions want work as a bridge between workers and employer but now every company has HR department who is responsibility for strengthening the ties between personnel and organisation. Microsoft understand that their quality workforce is key factor which provide them competitive advantage and they organise different kind of events like employee engagement summit to improve morale of workers (Mossholder, Richardson and Settoon, 2011).
When management organise programme where key people in the organisation meet with employees then it improves relation between both sides and worker feel motivated that their leaders are listening and sharing their experience with employees. Employee relation reduces the cost of business by saving the money which company could have to pay for hiring new employees. It enhances employee retention rate and hurdles various kind of hurdles related to training and promotion of personnels. Another advantage of employee relation is better productivity. When workers have good understanding with management then they give their best and try to give a result which is better than the expectation of company.
Employee engagement is main part of employee relation
Employee relation is big term which basically identify the connection between two parties i.e. workers and employees. Relation between workers and management of Microsoft can only remain good if somehow company interact with their workers on regular basis and try to make them emotionally connected with the organisation. This strategy (employee engagement) is key part of employee relation because the main aim of employee relation is to motivate workers and ask them to achieve organisational goals, and employee engagement help in moving forward towards this aim by creating emotional relation between workers and company. Employee relationship manager is responsibility for many various key works like develop benefit schemes, act as representative of employees etc. Employee engagement assures that workers do not feel that company does care about workers growth and well-being and without executing this strategy, Microsoft cannot assure fine relationship with their employees (Ployhart and Moliterno, 2011).
Main approaches of employee engagement and their importance
In the summit, which was organised by Microsoft, company discussed various approaches of employee engagement. Yammer is first approach where communication in the organisation will be done openly. The main aim behind this is to ensure transparency in the organisation and get ideas from every person of the company i.e. crowdsource ideas. Importance of this programme is that it develop confidence among employees that they are not ignored at the time of making crucial decision and their ideas are taken in account by management. This minimises the communication gap which is present between employees and employer. ''Microsoft teams'' is another effective approach which basically focuses on using technology for improving the connection between team members. The advantage of this approach is that it helps in removing various unnecessary confusions which are present in a team and it also improve tuning & communication among group members.
P6 Main elements of employee legislation and their impact on HRM decision making
It does matter whether a company is big or not, they have to follow the legislations which are present in the country where they are operating. Every country make some laws relating to employment so they can assure that any misconducts should get necessary punishment and the confusions which may arise between employer and employee, relating to rules of employment, do not take place.
Regulations and their impact on HR decision making
Sex discrimination Act 1975 states that every business organisation have to treat both men and women in same manner. They cannot do discrimination on the basis of gender or their martial status. Microsoft is operating in technology sector and there is a general perception that women are not in terms of understand new technology or doing innovation (Werner and DeSimone, 2011). Managers of this company may feel this but if they find an appropriate female candidate then they have to recruit her. They cannot reject her selection on the basis of her gender. If company find required set of skills in a female applicant then they have to recruit her. Sometime. This law forces companies like Microsoft to give employment to women. This increases the diversity in the organisation which ultimately make a positive impact on culture of company.
National minimum wages Act 1998 have set a limit from the minimum amount which a company have to pay to the people who are working in the organisation. Microsoft cannot argue that they are spending money on the training and development of the employees and this money is added in the salary of workers. Wages is the amount which employees get as a disposable income. HR division of the company have to make sure that they do not hire a person without considering this law. Minimum wages in UK, from 1 April 2018, for people aged 25 and above is 7.83 per hour. 21-25 age get minimum 7.38 per hour and 18-20 get 5.90 per hour. Sometime HR team find a worker who is ready to work at low remuneration but this law forces company to pay employee more money. These kind of situation affect Microsoft in a negative way by increasing their cost of business.
Disability discrimination act 1995 save the rights for employees with some disability. One of the major decision which HR team of Microsoft have to take is related to training & developing and rewards. HR team cannot make a decision where they do not allow disable people to take training or do not involve in reward generation system. Company may have to arrange additional facilities for disable people so they can provide training. This will increase the overall expenditure which organisation is doing for providing training to their employees and influence financial position of the firm in negative way.
In UK, redundancy and the Over sixty-fives retirement related laws ended in 2011. HR team of Microsoft cannot ask their employees retire when they turn 65. The law says that if there are some genuine occupational requirements then company can impose retirement but they have to justify the reason. This law negatively impact growth of an organisation because company always want to hire fresh blood in the organisation and if they will not retire old people then they cannot recruit new one.
From the above report, it can be concluded that function of HR department is continuously increasing because every company want to recruit best talent. An organisation has various options in terms of approaches to recruitment and selection. They can adopt most suitable one by checking their strengths and weaknesses. HRM practice is essential for both employer and employees and this is the main reason that every company want to have this department in their organisation. Organisational profitability and productivity is affected by HRM practice of the firm. Business enterprises has to obey the rules which is present in the environment where there are operating.
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Books and Journals
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- Armstrong, M., 2011. Armstrong's handbook of strategic human resource management. Kogan Page Publishers.
- Bamberger, P. A., Biron, M. and Meshoulam, I., 2014. Human resource strategy: Formulation, implementation, and impact. Routledge.
- Bloom, N. and Van Reenen, J., 2011. Human resource management and productivity. Handbook of labor economics. 4. pp. 1697-1767.
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- Farndale, E., Scullion, H. and Sparrow, P., 2011. The role of the corporate HR function in global talent management. Journal of World Business. 45(2). pp. 161-168.
- Flamholtz, E. G., 2012. Human resource accounting: Advances in concepts, methods and applications. Springer Science & Business Media.
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- Lengnick-Hall, C. A., Beck, T. E. and Lengnick-Hall, M. L., 2011. Developing a capacity for organizational resilience through strategic human resource management. Human Resource Management Review. 21(3). pp. 243-255.
- Mossholder, K. W., Richardson, H. A. and Settoon, R. P., 2011. Human resource systems and helping in organizations: A relational perspective. Academy of Management Review. 36(1). pp. 33-52.
- Ployhart, R. E. and Moliterno, T. P., 2011. Emergence of the human capital resource: A multilevel model. Academy of Management Review. 36(1). pp.127-150.
- Werner, J. M. and DeSimone, R. L., 2011. Human resource development. Cengage Learning.