Human Resource Management
Human Resource Management

Lecturer Name :
Student Name : Andrei Baneoti
Student ID : hndb11686

Lecturer Name :
Student Name : Andrei Baneoti
Student ID : hndb11686

Executive Summary

Human resource management is supposed to be the most challenging part of management system of an organization. It is the management system which is concerned about all the aspects of human resource of an organization. As such personnel management, human resource planning, recruitment, motivation, reward system, performance evaluation, cessation of employment all this functions fall under the broad concept of human resource management. Here all these activities of human resource management are presented with the analysis of human resource management at Harrods. Harrods is a popular brand name in the world of business. Here human resource management is discussed in the context of Harrods for understanding the practical application of human resource management.

Contents Introduction 5 Understand the Difference between Personnel Management and Human Resource Management 6 1.1 Differentiate between Personnel Management and Human Resource Management 6 1.2 Assess the Function of the Human Resource Management in Contributing to Harrods Purposes 8 1.3 Evaluate the Role and Responsibilities of Line Managers in Human Resource Management 9 1.4 Analyze the Impact of Legal and Regulatory Framework on Human Resource Management 10 Understand How to Recruit Employees 12 2.1 Analyze the Reasons for Human Resource Planning in Harrods and One More Selected Business 12 2.2 Outline the Stages Involved in Planning Human Resource Requirements 13 2.3 Compare the Recruitment and Selection Process in Harrods with Another Organization Such As John Lewis, M&S or Sainsbury Etc. 14 2.4 Evaluate the Effectiveness of the Recruitment and Selection Techniques in the above Two Selected Organizations 15 Understand How to Reward Employees in Order to Motivate and Retain Them 16 3.1 Assess the Link between Motivation Theory and Reward 16 3.2 Evaluate the Process of Job Evaluation and Other Factors Determining Pay 17 3.3 Assess the Effectiveness of Reward Systems in Different Contexts 18 3.4 Examine the Methods Harrods and One More Selected Business Use to Monitor Employee Performance. 19 Know the mechanisms for the cessation of employment 20 4.1 Identify the Reasons for Cessation of Employment with Special Reference to Harrods 20 4.2 Describe the Employment Exit Procedures Used by Harrods and Any Other Organization of Your Choice 21 4.3 Consider the Impact of the Legal and Regulatory Framework on Employment Cessation Arrangement 22 Conclusion 23 References 24
Introduction
Human resource is the most complex resource of an organization. Managing this resource has become a complex job of management. In the changing business world, the importance of managing labor force of an organization has lead to maintenance of a separate division of management which is human resource management. In modern world the business job is becoming more challenging. To match the qualified human resource with the complicated job system is the objective of human resource management. For that all the tasks related to employees of a company like: selecting, appointing, developing, motivating, rewarding, monitoring, controlling etc. together are functions of human resource management. This management may vary from company to company but importance of human resource management is same for all the organizations. Here different aspects of human resource management are discussed in the context of a reputed company- ‘Harrods’. Basic functions, responsibilities, legal framework, recruitment process, reward system and cessation process of human resource management are highlighted here in perspective of ‘Harrods’.
Understand the Difference between Personnel Management and Human Resource Management
Personnel management is about personnel administration and labor relation. It is only about employees, their payroll, laws relating to them etc. On the other side human resource management is the management of people as a team and development of them as the strength of the organization. In today’s world employees are not only persons of putting labor, they are considered as a resource of a company. So they need to be managed in an organized way and maintained properly which is the objective of human resource management. Human resource management is the broad version of personnel management.
1.1 Differentiate between Personnel Management and Human Resource Management
Personnel management and human resource management are two common terms for the maintenance of labor force of a company. Organizations follow both of these managements to manage their workforce (Alegre et al., n.d.). But there are some differences between these two concepts.
Personnel management is a traditional concept concerning about workforce that includes recruiting, developing compensation system, managing employee-employer relationship etc (Kalamas and Kalamas, 2004). It is all about the management of workforce. On the other hand, human resource management is the modern concept where human component of an organization are considered as resource. It is about managing the human capital to obtain the target of the company. Personnel management is concerned about the recruitment and payment of employees. Division of labor and monitoring job of employees are main function of it. On the other hand human resource management is concerned about job specification, job design, recruitment, appointment, system of payment, promotion and other facilities. All the functions of employee management are part of human resource management.

Figure: Personnel Management and Human Resource Management

Practice in Harrods:
Practice in Harrods:

In Harrods employees are recruited without any bias, on the basis of qualifications. Recruited employees are paid fairly at predetermined rate. Without this, in order to improve the performance of employees at Harrods, it offers training program for employees. At the same time, it gives the opportunity of promotion, job enrichment, job enlargement, job rotation etc. to engage the employees with the success of Harrods. As such, the recruitment and payment system of Harrods are personnel management while the whole procedure of employee management is human resource management.
Personnel management is the traditional concept of employing people where human resource management is the extended form of personnel management. Scope of human resource management covers all the aspects of employee management that is why this is more popular than personnel management in practice.

1.2 Assess the Function of the Human Resource Management in Contributing to Harrods Purposes
Human resource management is a broad department of management. Functions of human resource management include - workforce planning, recruiting, determining salary, performance appraisal, training and development etc.
Human resource management covers various functions in the context of an organization. Functions of human resource management of any company are planned according to the strategy of the company (Balkin, 1992). The objective of every function of human resource management is to contribute in the achievement of organizational goal.
Practice in Harrods:

Practice in Harrods:

In Harrods human resource management functions includes recruitment and selection, performance and development. Harrods human resource management at first chooses the employees suitable for the company, enables them to perform their job, provides training where required and develops employees by providing career opportunities. This human resource management policy is very effective and specific in the context of Harrods purposes. This policy emphasizes on selecting only those employees who can be fit in perspective of the job and environment of Harrods. Then the employees are given opportunity of training so that they can play their role with the best of their ability. Most importantly employees are given progression opportunities to develop their career. The whole system not only prepares human capital to uphold the brand of Harrods but also encourages the employees to work for increasing the reputation of the company.

Figure: Functions of the Human Resource Management in Harrods

The human resource management functions of Harrods are engaging its employees for the success of the company. Thus the functions of the human resource management are contributing an important role to fulfill Harrods purposes.

1.3 Evaluate the Role and Responsibilities of Line Managers in Human Resource Management
In modern organization system the roles and responsibilities of line managers in human resource management is very wide in scope. It includes all the responsibilities related to converting the labor force of a company into human resource.
The role of human resource manager is very strategic in an organization. He needs to develop the human resource as per the objective of the company. At first he understands the business process then ensures employees of the company have necessary qualities and skills required in that process (Brewster and Holt Larsen, 2000). The responsibility of the human resource manager includes managing recruitment, training and development process and influencing employees toward the development of the organization.
Practice in Harrods:

Practice in Harrods:

In Harrods the line managers of human resource management play a significant role in maintaining popular brand value in the market. The line managers played their roles and responsibilities by providing more opportunity of job through job enrichment, engaging them to the vision of the company through leadership, improving communication system throughout the organization and ensuring clear understanding of brand value. By these the engagement of employees as well as their trust toward Harrods increased which contributed to the better performance of the company.
The role and responsibilities of line managers in human resource management in Harrods are very impactful. It reduced the employee turnover, improved employee-employer relationship, developed the quality of service and understanding of the employees. Thus it contributes in the achievement of Harrods.

1.4 Analyze the Impact of Legal and Regulatory Framework on Human Resource Management
Every legal organization must be complied with applicable legal and regulatory framework. That regulatory framework has an influence over the whole activity of the organization (Guerin and DelPo, 2009). Being an inseparable part of the organization management system, the human resource management is also influenced by legal and regulatory framework.
Legal and regulatory framework regarding the human resource management of a company emphasizes on protecting employees from discrimination at the workplace and protecting employee interest (Okeyo and Adelhardt, 2003). This framework includes minimum wage, rate of overtime, payment of pension, labor relations and other legal restrictions which to be mandatorily followed by any company.

Figure: Legal Regulatory Framework
Practice in Harrods:

Practice in Harrods:

In Harrods the human resource management division is very careful about fair opportunity for employees. The human resource management unit of Harrods put special attention to labor rights, labor relations, work environment, compensation, facilities etc. So implementation of legal and regulatory framework regarding human resource management is carefully followed by Harrods. The whole human resource management system is designed considering all the legal and regulatory facts.
Human resources department is bonded witht the legal framework. He needs to develop the human resource as per the objective of the company. At first he understands the business process then ensures employees of the company have necessary qualities and skills required in that process. The responsibility of the human resource manager includes managing recruitment, training and development process and influencing employees toward the development of the organization.
Harrods has great brand value in the market. It believes in upholding brand name by fulfilling all the legal requirements required by legal and regulatory framework at all of its departments. Thus it achieves a distinct position and great reputation in the market.

Understand How to Recruit Employees
Recruitment process is a complex function of human resource management. It is the process where future employees of an organization are chosen (Parry, 1994). For this reason this function needs to be conducted with proper planning and executed with due control. Importance of recruitment increases the necessity of understanding this process.
2.1 Analyze the Reasons for Human Resource Planning in Harrods and One More Selected Business
Human resource planning is the first stage of recruitment process in a company. It is a strategic planning regarding the future workforce of a company who can match the objective of a company (Tyson, 1995).
Planning of human resource is a mandatory task of human resource management. The reasons for this planning are it identifies the skills that are required for a job, it identifies the sources from which work force will be invited and it determines the facilities that can be made available to the future workforce (Peppitt, 2001).
Practice in Harrods:

Practice in Harrods:

In Harrods human resource planning is very important because it always tries to engage the workforce with its objective. For that purpose, Harrods needs to assess the existing workforce, identify the sectors where new employees are required, determine the qualities that can ensure ability of performing the job, determine the source from where the employees can be offered for job. In Harrods skills and adaptability of employees is more important than the experience of the employees. So Harrods needs proper planning for human resource.

Practice in Tesco:

Practice in Tesco:

In another company Tesco which is one of the largest grocery retailers, resource is one of the vital jobs of human resource manager. In Tesco when employees are required for any post jobs are specified at first, skills for the jobs are noted then. Trainings sessions to be provided are also made part of the planning. In Tesco as a multinational grocery store, the employees need to conduct with a large number of people so they need to handle new situations every day. So to find the best suitable employee for the job, Tesco needs detail and effective human resource planning before recruitment.
Reasons of human resource planning vary according to the type of business and objective of an organization. But the reason should always match the vision and goal of an organization.

2.2 Outline the Stages Involved in Planning Human Resource Requirements
Planning of human resource requirements is the initial step of planning human resource. Though it is the primary step but whole recruitment process depends on this planning (Richards, 1998). So this planning needs to be done carefully.
Planning human resource requirement involve the outlining the job for which labor is required at the same time identifying the qualities that are necessary for the job. This planning process depends on the type of job which is being offered.
Practice in Harrods:

Practice in Harrods:

In Harrods employees are considered as the essential for success. To recruit this valuable human capital, the stages of planning human resource requirement are also done carefully. There are two stages of this planning: 1. Specification of job in detail that requires new workforce and 2. Identification of qualities and skills those are necessary for the job. As the future employees of Harrods will represent the brand, these two stages are outlined with special attention.
Successfully recruitment and selection techniques of a company depends fully on the strategy and policy of a company. When the recruitment and selection techniques match the strategy of a company, ensure the success of that company.
Human resource requirement planning is the base of human resource planning. For this reason this step most important than any other stage.

2.3 Compare the Recruitment and Selection Process in Harrods with Another Organization Such As John Lewis, M&S or Sainsbury Etc.
Hiring of qualified workforce can be ensured by effective recruitment and selection process. For this reason recruitment and selection process is always designed considering all the facts. Different companies adopt different recruitment and selection process to hire their employees.
Recruitment and selection process is the process of finding new workforce in an organization. This process may include: preparing job description, preparing vacancy announcement and asking for application, screening the applications and call for interview, arranging interview, checking reference, selecting candidates, arranging employee orientation etc.
Practice in Harrods:

Practice in Harrods:

The recruitment and selection process of Harrods is a fair and unbiased process where every qualified candidates have chance to get the job. As the employees need to present the brand toward the customers, activeness and communication skill of candidates are specially considered. After defining the job description, advertisement is done for applications, from the applicants best participants in the interview and demo sessions are selected for recruitment.
Practice in M&S:

Practice in M&S:

The recruitment and selection process in M&S is different than that of Harrods. The main distinction point in the processes is M&S put emphasis on selecting from internal source. Generally in the process after describing the job vacancy is announced internally. From the applicants reference is considered when hiring the final candidates. M&S also hires people from external source but the internal source is preferred first.
Recruitment and selection process is a vital function of human resource management. The future success of a company depends on recruitment and selection process to a great extent.
2.4 Evaluate the Effectiveness of the Recruitment and Selection Techniques in the above Two Selected Organizations
Efficient performance of a company depends on effective recruitment and selection technique of the company. If a company fails to design effective recruitment and selection technique for hiring its employees, it may choose employees not suitable for the job.
Practice in Harrods:

Practice in Harrods:

The recruitment and selection technique of Harrods is effective in perspective of Harrods. Harrods selects their new employees on the basis of their skills in an unbiased way. As such they can find the best employees who are suitable for the job.
Practice in M&S:

Practice in M&S:

In M&S generally recruitment from internal source is preferred. That is because internal employees have better understanding about the environment and tasks of the company. Their previous experiences in M&S also help them to handle situations in their job. So recruitment and selection technique of M&S is also effective considering their strategy.
Effectiveness of recruitment and selection techniques of a company depends fully on the strategy and policy of a company. When the recruitment and selection techniques match the strategy of a company, ensure the success of that company.
Understand How to Reward Employees in Order to Motivate and Retain Them
To get desired performance from employees, employees need to be motivated in a systematic way. The motivation system of a company should be designed carefully considering employee needs and expectations. The techniques of rewarding should be planned as the part of motivation system (Chapman and Kelliher, 2011). The procedure of performance evaluation and job evaluation are also designed to determine what type of motivation is required in an organization perspective. For these reasons reward system needs to be understood.

3.1 Assess the Link between Motivation Theory and Reward
Motivation theory and reward are two interrelated concepts (Gaston, 1978). A company can adopt many motivational tools to motivate their human resource. Reward system is one of the motivational tools.
Motivational theory is the theory of encouraging people to act in a specified way or to attain predetermined target (Druker and White, 1997). This motivation can be in a positive way or in a negative way. This process may include: preparing job description, preparing vacancy announcement and asking for application, screening the applications and call for interview, arranging interview, checking reference, selecting candidates, arranging employee orientation etc. Positive way involves motivating through reward or recognition and negative way involves motivating through punishment or reprimand. Thus reward is linked to motivation theory as a motivation technique.

Figure: Motivation System

Practice in Harrods:

Practice in Harrods:

The motivation technique of Harrods involves psychological needs like: need for encouragement, need for being part of team, need for respect etc. In Harrods reward is also adopted as a motivation technique to inspire its employees to perform better. The reward system of Harrods includes promotion, participation in decision making, involvement in team and contribution in various types of tasks. Harrods also offers job empowerment, job rotation and job enrichment to motivate its employees.
So reward system and motivation theory are closely related. Company wise reward system may differ but the main objective of any reward system is to motivate the workforce.

3.2 Evaluate the Process of Job Evaluation and Other Factors Determining Pay
Payment of salary can be made based on different factors. Evaluation of job is the most common factor to determine the payment of any particular job (McDavid and Hawthorn, 2006). Other factors can be hours of job, tasks of job etc.
Job evaluation is the process of valuing a job in comparison to other jobs in the company. It is a system of establishing rational pay in the organization. Several methods of job evaluation are: job ranking, job grading and factor comparison (Ferrari and Spadoni, 1981). The process of any job evaluation involves job analysis, job rating, money allocation and job classification.
Practice in Harrods:

Practice in Harrods:

In Harrods job is evaluated on the basis of ranking method. In this method job are analyzed and rated after arranging jobs orderly and money allocated to each job is based on the position in the order. This is an effective process in the context of Harrods culture because Harrods believes in fairness. This payment system can ensure fair and worthy payment of employees on the basis of their job.
In the perspective of different companies suitable job evaluation systems are different. To value the service of the employees properly, job should be evaluated accurately following all the steps of job evaluation.

3.3 Assess the Effectiveness of Reward Systems in Different Contexts
Reward system is a very important component to motivate employees of an organization to attain particular goal (Grinblatt and Titman, n.d.). But this reward system needs to be appropriate otherwise the whole motivation process may become ineffective.
Practice in Harrods:

Practice in Harrods:

Harrods emphasizes on intrinsic reward system along with extrinsic reward system. In Harrods employees are motivated by participation in decision making, involvement in groups, promotion on the basis of performance, job enrichment, job enlargement etc along with regular pay, bonus etc. Thus Harrods gives both financial and non-financial reward to its employees.
Reward system in Harrods is very effective because it encourages its employees to engage with the company as a member. It gives them power to say in decision making, authority to do job independently, opportunity to improve and progress etc. As such they become more concerned about performing better and upholding the brand name of Harrods.
Reward system of any organization should be designed considering the objective and type of activities of an organization. One reward system may not be effective for two companies of the same industry.
3.4 Examine the Methods Harrods and One More Selected Business Use to Monitor Employee Performance.
To evaluate the performance of employees it is important to monitor their performance. The monitoring system of a company should be such that it will inspire to better the performance of employees not create pressure on them.

Monitoring employee performance is a process of collecting information about employee’s performance to compare that with expected performance. It is an important part of control activity of a company.
Practice in Harrods:

Practice in Harrods:

Practice in M&S:

Practice in M&S:

The method of monitoring employee performance is a continuous process in Harrods. After assigning responsibilities, employees are mentored and guided at regular interval. Again managers meet the employees at regular interval to discuss related issues. As such performance of employees is monitored at regular basis and if any deficiency remains that can be corrected at that time.

Monitoring system of employee performance is different in M&S. They monitor the performance after a period of time and match it with the targeted performance. Being a large company it is costly to monitor each employee performance regularly. That is why performance is monitored in an aggregated way after a fixed interval of time.

Type of organization determines the monitoring system of a company. Company policy and culture can also play role in influencing the monitoring system
Know the mechanisms for the cessation of employment
Cessation of employment is an important part of human resource management. It is a sensitive issue in the management process of employees. Legal requirements are related to the procedure of this function in a company (Lippmann, Cohen and Schlesinger, 2003). Violation of any of those requirements may harm the reputation of a company and cause penalty. So this specific function of human resource management requires special attention of management. That is why mechanisms for cessation should be known for Developing A Flawless Human Resource Management In A Company.
4.1 Identify the Reasons for Cessation of Employment with Special Reference to Harrods
Cessation can be done for many reasons in a company. Sometimes on the basis of activity of the company tendency of cessation on a particular reason seemed to be high.
Cessation is the discontinuance of job. There can be various reasons behind cessation, some are: recession in the economy, discontinuation of business, fraudulent activity of employee, cutting off in the layout, employee’s unwillingness to work, failure of employees to perform as required etc (Putnam, 1996).

Figure: Cessation of Employment

Practice in Harrods:

Practice in Harrods:

Harrods believes in fair treatment to its employees so it will not fire its employees without valid reason. In general the cessation rate of employment is low at Harrods. But cessation of employment may occur at Harrods due to illegal or unethical practice, poor performance or unacceptable behavior of employees. Another common reason which can lead to cessation is recession in the economy.
Based on the type of business new reasons of cessation of employment may be included. But the reason should always be valid to terminate anyone’s job.

4.2 Describe the Employment Exit Procedures Used by Harrods and Any Other Organization of Your Choice
Practice in Harrods:

Practice in Harrods:

Employee exit procedures generally occur after the decision of cessation of employment. It is a sensitive issue so the whole procedure should be done in a systematic way.

Exit procedure of Harrods is a step by step process. At first formal information about the cessation is given to the employee through notice, and then the employee is given chance to present his say. After the payment of all payables are made clear and the job of the employee exits formally with the receipt of cessation card from the employer.
Practice in Tesco:

Practice in Tesco:

In another company Tesco, the exit procedure starts with specifying the reason of cessation. Notice is given to the employee about the termination of his job and its reason. After that manager meets with the employee for explanation or wants to know the cause of leaving. If the leave is without any fault of employee then compensation or alternative job is offered for the employee. All the payments and pensions are paid before the specific time.
Thus exit procedure of any job should be done in an explanatory way. The procedure must ensure the payment of all salaries and other benefits payable up to the date.
4.3 Consider the Impact of the Legal and Regulatory Framework on Employment Cessation Arrangement
Legal and regulatory framework of employment cessation arrangement requires justifiable reason and process for cessation of employment. This framework ensures that no organization can forcefully terminate an employee or deprive him from his rights or influence him to leave without any notice.
Practice in Harrods:

Practice in Harrods:

The cessation arrangement in Harrods is designed considering all the conditions of legal and regulatory framework. Cessation of employment in Harrods is made for justifiable reasons. The process of termination is also done by step by step systematic procedure in a legal way. Thus the whole process of cessation is done maintaining related labor laws applicable for Harrods.
Maintaining legal framework of employment cessation should be strictly followed at the time of cessation arrangement. To remain in the legal boundary every company should comply with the legal and regulatory framework.

Conclusion
Future success of a company largely depends on proper human resource management of the company. To lead the employees of a company toward the goal of an organization human resource management plays a significant role. Though in some small companies personnel management is practiced, most of the companies all over the world maintains separate management system called human resource management to manage the human capital of the organization. It is a systematic management, functions of which starts from recruiting and continues up to the cessation of employment. Necessity of practicing human resource management has lead to development of numerous numbers of models and theories relating to it.
Day by day the span of human resource management is expanding at the same time functions of human resource management are being complex. For these reasons effective human resource management is a must for the efficient performance of an organization.

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