Regent College Unit 21 Human Resource Management
In the context of any big organization, human resource and personal development of the employees are the two sides of a coin. These two are related through different activities. In this paper we are going to explore these activities and also the different techniques of motivation. For the success of any organization it is very important that the staff they are recruiting fulfils the requirement of the position for which the recruitment is going on. Another aspect of good human resource is the retaining of the good employees who has the good knowledge of the concerned area and company has invested highly in their development (Kehoe & Wright, 2013, pp. 381).
On the other hand, human resource management includes that the process of hiring the employees and retaining them is following all kinds of legal and regularization techniques. As most of the managers have accepted that the employees they have are the most valuable resources for the company and retaining the good old staff has always been the priority in their job description.
LO1 Personnel management and human resource management
P 1.1 Harrods and Small Businesses
The terms personal management and human resource management have always been the cause of confusion to the managers in any company. Though if looked only at the outer side both of the terms mean same to the common people, but managers have to distinguish between them and use them appropriately. Personal Management is the term which is older than human resource management and used in managing the people in small companies. Human resource management has a wide area than personal management and deals with the overall performance of the company and strengthens the human resources in the company through various activities and also takes care of hiring the quality staff and reward schemes. In Harrods, Human Resource Management is the key department which has contributed a lot in the success of the company. Harrods is a 160 years old business and employs more than 4500 people (Boxall & Purcell, 2003, pp. 84). British; Luxury; Service; Innovation and Sensation are the five values of Harrods and it is the responsibility of the HRM department to engage the employees who could adhere to these values and work towards making these values better. On the other hand professional Development in the small companies is just limited to organize the current staff and hiring the staff as per the requirements given by the managers.
P 1.2 Function of Human Resource Management
As mentioned above the purpose of the human resource department is to take care of the five values of Harrods and to achieve that, human resource has to make sure that they have working people are qualified and productive in the company and also the staff they are hiring is according to the standards of Harrods. It is the job of the human resource that they keep the engaged people in the company because these kinds of people always go for the hard work and accept the challenges happily. Engaged people are the employees of the company who participate in the decision making process at the Harrods and these are the resources which are most important for the Harrods because they understands the responsibilities given to them by Harrods. Respecting these employees and developing more employees like these is the main function of the human resource at the Harrods. Other than these, there are three more activities which human resource follows at Harrods:
- Recruitment and selection – Recruitment and selection of the best talent available in the market is the primary function of the human resource at Harrods. The requirements are given by the developing manager for managing human resource and finds the talents which fulfill conditions.
- Performance – Keeping an eye on the performance of the employees is another function of the human resource. Enabling the employees who are not able to perform their duties effectively is managed by the human resource department. Human resource provides these employees training opportunities which help these employees in doing their job perfectly (Becker & Gerhart, 1996, pp. 780).
- Development – Development of the employees in Harrods is also the responsibilities of the human resource department. To persuade the engaged employees in building their long term relations with Harrods and help them in the process is the one thing which human resource is doing perfectly at Harrods. Human resource provides the career progressive opportunities to the employees in the company.
P 1.3 Roles and responsibilities of line managers
Line Managers at Harrods work as a mentor to the staff and to new employees in the company. They are like the coaches who train the people and also listen to their problems. They are also the advisors and guides to the employees in the company who might not have the knowledge as the line managers and it is the duty of the line managers to fulfil that gap. These activities also help the line managers in developing the managerial skills, leadership skills, communication skills, forming a bond with the employees in the company and also enforcing the trust among the employees at Harrods. Sometimes line managers might not be agree with the decisions of the human resource department and they help the human resource in understanding people and also suggest the different options which could be very helpful to human resource department. In the recent days, a new phenomenon has been developed in the business which is outsourcing the work to other companies and countries (Delaney & Huselid, 1996, pp. 981). It is also the responsibility of the line managers to handle the outsourced work and make these companies deliver the quality work. To do this sometimes line managers have to learn foreign languages which are an extra burden on them. Line managers also take part in the strategic execution of the policies of the company. Line managers also handle the personal management and employees relation programs.
P 3.2 The process of job evaluation and other factors determining pay
At Harrods, pay determination is purely based upon the performance of the employees. These performance are measured not only in the work assigned to them bus also the initiative taken by the employees to make Harrods a better place to work (Ulrich, 2013, pp. 376). The job evaluation at Harrods is multilevel process which makes it perfect for determining the pay. In this process, first of all the employee is asked to submit a self-evaluation form, which is forwarded to the team lead. Team lead mentions his comments on the assessment done by the employee and may add some comments also. Once the team lead is done with the evaluation, form reaches to the line manager which discusses the points mentioned in the form with HR of the company. In this discussion the performance of the employee is evaluated on the basis of the comments given by the team lead. Employee self-assessment is also considered in this matter. Once the evaluation is done and pay is decided, HR calls up the employee for the pay discussion and listens to the employee. If the employee is not happy with the pay HR may take a final decision on the pay and increase it to an extent if convinced by the arguments of the employee.
P 3.3 Effectiveness of reward systems
The rewards system in an organization has always been the topic of interest for the employees. But the effectiveness of the reward system depends upon what is being rewarded and who is being reward. Sometimes a person whose performance is not very good but he is rewarded due to some reasons could affect the effectiveness of the reward system. Another issue is what is being rewarded. If a reward is provided to the employee but he has no use of that reward, the effectiveness of the reward system is affected.
Rewards play an important role in the motivation of the employees. It is not necessary that these rewards are always monetary, but anything which makes people happy is considered a good reward. At Harrods the reward system comes under the human resource department. Human resource department evaluate all the employees in the above mentioned manner and reward the people who are at the top of the performance list.