Course: BTEC HIGHER BUSINESS (HND) Awarding Body: Edexcel

NATIONAL

DIPLOMA

IN

Module Unit 21: Human Resource Management Session: 2008 - 2009 Submitted by: MD.HELAL UDDIN Student ID Number: 3984

ICON College of Technology and Management 1 13 Adler Street, London E1 1EG Tel: 020 7377 2800 www.iconcollege.com
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Introduction In a company environment the Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs company have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or non-profit) have to carry out these activities themselves because they can't yet afford part or full-time help. However, they should always ensure that employees have and are aware of personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have. (McNamara, C. 1999) On the other hand, Personnel management is the part of management that is concerned with people and their relationships at work. Personnel management is the responsibility of all those who manage people, as well as a description of the work of specialists. Personnel managers advise on, formulate, and implement personnel policies such as recruitment, conditions of employment, performance appraisal, training, industrial relations, and health and safety. (Herbert J. C. 1976) According to Niven M.(1967), The institute of personnel Management defines personnel Management somewhat more comprehensively as follows : Personnel Management is that part of management concerned with people at work and with their relationships within an enterprise. Its aim is to bring together and develop into an effective organisation the man and woman who make up an enterprise and, having regard for its well-being of the individual and of working groups,to eneble them to make their best contribution to its success. (Personnel management, 1913)

However, businesses are diverse. Prisons, restaurants, oil companies, corner shops, fire brigades, churches, hotel chains, hospitals ,schools, newspaper, charities, doctors, professional sport teams, airlines, barristers` chambers and universities are all business in the sense that they have overall corporate missions to deliver and these have to be achieved within financial constraints. They all need to have their human resource managed, no matter how much some of the management process which limit individual freedom of action.

Q1. a) Important role and purpose of Human Resource Management as distinct from personnel management: According to Derek T(2005), HRM is a model of personnel management that focuses on the individual rather than taking a collective approach. Responsibility for human resource management is often devolved to line management. It is characterized by an emphasis on strategic integration, employee commitment, workforce flexibility, and quality of goods and services. The different approaches taken by the personnel management and human resource management are compared below :

Features
Beliefs & assumptions Contract Rules Managerial task vis--vis labour Strategic aspects Key relations Speed of decision Line management Management role Key managers Communication Standardization Key leavers Selection Pay Labour management Job design Training and development

Personnel Management
Careful definition of written contracts with fixed approaches. Importance of devising clear rules/mutuality Monitor activity labour

Human Resource Management

Aim to go beyond contracts & flexible `Can-do` outlook; impatience with rules Nurture labour

Labour management Takes long time Believe in transactional leadership Personnel specialist Indirect High(e.g. `parity an issue`) Separate, marginal task Job evaluation(fixed grade) Collective bargaining contracts Division of labour Controlled access to courses

Customer oriented Much faster Believe in transformational leadership. General/business/line managers Direct Low(`e.g. parity not seen as relevant`) Integrated, Key Task performance related Towards individual contracts Teamwork learning companies

(Source: Storey, 1992) Q1. b) The role, tasks and activities of a Human Resource practitioner: HR Manager is one of the most important key to open a lock hanging on the door of success in an organization. If an HR Manager is efficient enough to handle and to take out best from his team members any organization and can achieve more from his target goals. Stated below are major responsibilities of HR Manager: To maintain and develop HR policies, to ensure the provision of a professional HR service to the organization, ensuring compliance and to contribute the development of corporate HR policies. To ensure timely recruitment of required level / quality of Management staff, other business lines staff, including non-billable staff with appropriate global approvals, in order to meet business needs, focusing on Employee Retention and key Employee Identification initiatives. Develop, refine and fine-tune effective methods or tools for selection / or provide external consultants to ensure the right people with the desired level of competence are brought into the organization or are promoted. Prepare information and input for the salary budgets. Ensure compliance to the approved salary budget; give focus on pay for performance. To maintain and develop leading edge HR systems and processes to address the effective management of people in relation to the following in order to maintain competitive advantage for performance Management, staff Induction, reward and recognition and so on. Provide counsel and assistance to employees at all levels in accordance with the company's policies and procedures as well as relevant legislation. Oversee the central HR Administration employee offer letters, salary letters and employment contracts, approve updated organizational charts on a monthly basis and maintain complete/accurate personnel records. Counseling and Guidance cell - provide support to Managers in case of disciplinary issues.

Above points are amongst the most important responsibilities which has to be taken care by an HR

Q1. c) Line managers role and responsibilities in HRM practice:

In the organisation, HR professionals architect, facilitate, recommend an HR agenda, and coach line manager, but line managers have ultimate responsibility for approving and executing HR, as they have ultimate responsibility for approving and executing finance, marketing, and R&D. The central role of line managers in implementing human resource management is widely acknowledged. In HRM practice line managers responsibilities include: Staff interview: Interviewing new staff for their own department on be half of HR manager and by doing that they can make sure that the person got the skills to perform this particular role. Induction : A formal ceremony conducted by the line manager in which a person is inducted into an organisation which helps the person to get to know about the organisations activities and his part of role in it. Training: Helping the new recruit to make proficient with specialized instruction and practice towards performing his role properly. Performance check: Checking the persons ability and skill to perform the role which determine whether he needs training or he can be promoted and so on. Promotion selection: Through checking the performance of the colleagues, line manager can decide which person should be promoted according to his ability and skills. Health and safety: Make sure the work area is safe and risk free and resolve all health and safety issues in the workplace. Disciplinary investigation: When a disciplinary matter arises, the line manager come forward first to deal with it and having investigated all the facts the line manager decide whether to, drop the matter; arrange informal coaching or counselling; or arrange for the matter to be dealt with under the disciplinary procedure. Grievance: Grievance refers to a complaint filed by an employee regarding working conditions.

Q2. a) Importance and need for systemic Human resource planning : HR Planning involves gathering of information, making objectives, and making decisions to enable the organization achieve its objectives. Surprisingly, this aspect of HR is one of the most neglected in the HR field. According to the organization goal HR planning can be short or long term. Whole HR planning includes company objectives, demand for labour, how many labour required, what skills they need to have, where they are going to work, supply of labour and other HRP. The programme does not assist the Organization only, but it will also facilitate the career planning of the employees and assist them to achieve the objectives as

well. This augment motivation and the Organization would become a good place to work. HR Planning forms an important part of Management information system. HR have an enormous task keeping pace with the all the changes and ensuring that the right people are available to the Organization at the right time. It is changes to the composition of the workforce that force managers to pay attention to HR planning. The changes in composition of workforce not only influence the appointment of staff, but also the methods of selection, training, compensation and motivation. It becomes very critical when Organizations merge, plants are relocated, and activities are scaled down due to financial problems. Some other areas are also related with HRP such as Further human resource needs Employee development and training Staffing cost & cost centres Abilities, experience & skill analysis Age analysis Ratio of work force occupancies Local & national demographic trends Dismissing (b) Stages involved in planning: These are the following stages involved in HRP process. HR demand forecasting: HR demand forecasting is the process of determining how many people will actually be needed in the organisation to succeed in achieving business objective. Analysis of existing resources : This part of HRP dealing with a profile of the workforce which is based on certain characteristics which are relevant for planning purposes-supplemented, in some instances, by analysis of certain issues like absenteeism, overtime working etc. Auditing HR resources: Auditing HR Resources is all about clarifying desired practices of HR work and roles within the organization (HR Department, Line Managers), to establish a baseline for future improvement, to evaluate current effectiveness, to standardize practices across multiple sites within a division or company, to assess current knowledge and skills required of HR practitioners, to improve performance levels to key customers within the organization. HR supply forecasting: An analysis of the supply of workers-the numbers and the types of people expected to be available to meet demand. This worker supply can come from the inside of the organisation (people can be promoted, demoted, transferred or trained and developed

to help meet future HR demand) and from the outside of the organisation (people can be recruited from college ,competitors, specialised training programs and other sources to help meet future HR demand). HR plan : All the information that has came out from the first three steps should bring together and analyse to determine the action required fulfil the gap between the demand forecast and the supply forecast is made. Afterwards under several personnel policies the activities to be undertaken will be determined by those actions which have been discussed above. Implementation and control: This is the final stage in the HRP model and this part focuses on the skills and the competencies needed as well as internal HR expertise to ensure that the management of the organisation is both competent and confident in the design and operation of the resourcing policies. Policies need to be regularly reviewed to ensure compatibility with the strategy.

If people really are to make a difference and to contribute fully to organisations success, human resource planning is a vital and integrative element of HR strategy. Q3. (a) Procedures used for structured recruiting of employees: The costs to an organization of recruitment can be high. But the costs of poor recruitment are dramatically higher. Recruitment-created disasters such as the wrong people for the job, lack of suitable candidates for interview, shortfall of labour and many other familiar problems have a direct impact on the organization. A formal policy document for recruitment can provide valuable guidance to prevent these disasters, but it must be up to date, especially in the light of current employment legislation. (MacKay, I. 1993, p. 152)

Employee recruitment procedures Determine the vacancy Complete the job analysis Write the job description Draft the personnel specification Advertise in suitable sources of recruitment Receive applications and pre-select candidates

Determine the vacancy: Determine whether there is a lying vacant or not

and what are the alternatives to undertake the full recruitment and selection procedure and select the right one.

Complete the job analysis: A process for collecting information that

describes in detail the criteria for successful job performance. Typically, job analysis focuses on tasks, responsibilities, knowledge and other skill requirements. Write the job description: Job description is a document explaining in a concise and clear way the chief characteristics of a given job which includes title of the position, department, overall responsibility, qualifications and so on. Person specification: The skills that a job candidate must have in order to complete the tasks of a position offered by a company Recruitment advertising: It is an advertisement for a job position, where the company goes looking for a employee instead of the employee searching out a company.

Receive applications and pre-select candidates: When all the applications have arrived, Its function is to asses the candidates application to determine their suitability for the post where some of them are being rejected and others are being retained to go forward to the final selection process.

(b) Interview evaluation as a selection technique and various selection

methods: Selection can be conceptualized in terms of either choosing the fit candidates, or rejecting the unfit candidates, or combinations of both. So selection process assumes rightly that, there is more number of candidates then the number of candidates actually selected, where the candidates are made available through recruitment process (Prasad, 2005) When all the candidates application have been received, the selection actually starts from this point. After the process of shortlisting, the final selection will be undertaken by following one or more of this methods : Interviewing Testing Group assessment The aim of the selection interview is to determine whether the candidate is interested in the job and competent to do it. A selection interview also explain the work of the organisation, the job and any features such as induction and probation. It uses to set expectations on both sides, including a realistic discussion of any potential difficulties (if appropriate) to enable the candidate to assess whether they want the job being offered. The main advantage of face-t-face or direct interviews is that the researcher can adapt the questions as necessary, clarify doubt and ensure that the responses are properly understood, by repeating or rephrasing the questions. The researcher can also pick up nonverbal cues from the respondent. Any discomfort, stress and problems that the respondent experiences can be detected through frowns, nervous taping and other body language, unconsciously exhibited by any person. This would be impossible to detect in a telephone interview. So face-to-face helps the interviewee to get the desired results and help them the expression of the person to whom they are interviewing. By reading the facial expression of the respondent the interviewer can easily understand what the respondent want to tell them about any thing. The main disadvantages of face-to-face interviews are the geographically limitations they may impose on the surveys and the vast resources needed if such surveys need to be done nationally or internationally. Its not a good 9

selection procedure in terms of halo effect and the horns effect. Halo effect means where the interviewer see the person in an exalted way because they have the same hobbies or interests, they go to same golf club or both of them used to go to a top school etc whereas the horns effect is totally opposite and both of this effects can result a bad judgement about a person during an interview. Q4.(a) Employee performance monitoring principals : Performance appraisals have become an integral part of many organisations human resource management approaches and have developed into what has become known as performance management (Fletcher, 2001) This approach provides managers with a process for evaluating, motivating and managing performance outcomes at one or multiple levels of the organisation. Basically employee performance process run on the principles of : a) Employee first impression is very important. We know that first impression is the best impression So line manager value the appearance, dress up, cleanliness, voice, manner & social experience of employee. b) Employees mental ability means employees analytical quality such as : in Tibet travel employee quality about how to calculate fare & others facilities by including discounts, special offer in different season valued by line manager. c) Employees skills & experience includes employees educational qualification, fluency in language & any other specific experience. d) Line manager very aware about employees acquisition process how employee are able to get idea in job field which is considered as employees aptitudes knowledge. In Tibet travel line manager calculate the ability of employee how he or she adapting to solve the problem. e) Personal qualities of employee which is behavioral aspects & creativity of employee have to be valued. I would like to recommend Tibet travel to follow above all assumptions to run an effective job evaluation process because if job evaluation process wrong than other process can be failure than employees can be discouraged & output can be bad from employee.

Q4. (b) Employees rewarding procedure:

"You get more of the behaviour you reward. You don't get what you hope for, ask for, wish for or beg for. You get what you reward." Michael le Boeuf

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If organization fail to provide sufficient facilities & rewarded employee, They will not get better performance from staff what they are supposed to get through whole job evaluation process. Reward system consist of the following elements 1. Financial reward- Compensation Base salary Pay incentives Employee benefits 2. Non-financial rewards Intrinsic Rewards centres on the work itself Praise, recognition, time off and other rewards given to the employee by peers or superiors. The procedure is based upon the following principles: . All staff should be rewarded fairly according to their sustained contribution, including the application of new skills and of expertise developed over time in the job The equal opportunity procedure procedures should be carried out with due regard to any diversity issues which may have affected either the original situation or the current process. A summary of appraisal could be used in support of an application for reward. It is recognised that the introduction of a new appraisal scheme will require Heads of sales/ managers and staff to be fully trained in its use. Assessment of objectives / performance standards achieved should be clearly related to Departmental/ Section objectives, recognise achievements and reward competencies and activities likely to contribute to future success of the school. Objectives / performance standards must be applied fairly and consistently. Judgements should be demonstrably based on objective evidence and, where appropriate, recognise initiative, leadership and/or contribution to teamwork.

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Arrangements for access to contribution points should be fully communicated to staff in a way that makes clear how it operates and the part that they and their managers play in it.

Factors of pay determination: Long-term factors: Regulations including laws of national minimum wage, equal pay, pensions and other benefits, contract law, corporate governs eg Stock exchange listing rules Collecting bargaining or individuals pay-settings institutions or processes Use of job evaluation Organisations strategic reward orientation- for example, policies in relation to pay market or regarding individual performance and pay History and tradition in the organisation/sector Short term factors: Inflation and other general economic factors Company performance/profit Labour market trends-supply and demand for skills Pay survey trends or comparability Q5. Motivation theory and its link with employee reward system: Motivation is that which energises, directs and sustains behaviour. (Steers & Porter 1979). For the Human Resources department, HR motivation is a key goal and consideration when working with employees There are a number of different motivation theories as to what motivates workers. However, i would like to explain Path-goal theory. The theory that a leader's behaviour is contingent to the satisfaction, motivation and performance of subordinates. Path-goal theory The Path-Goal Theory of Leadership was developed to describe the way that leaders encourage and support their followers in achieving the goals they have been set by making the path that they should take clear and easy. In particular, leaders:

Clarify the path so subordinates know which way to go. Remove roadblocks that are stopping them going there. Increasing the rewards along the route.

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Leaders can take a strong or limited approach in these. In clarifying the path, they may be directive or give vague hints. In removing roadblocks, they may scour the path or help the follower move the bigger blocks. In increasing rewards, they may give occasional encouragement or pave the way with gold. This variation in approach will depend on the situation, including the follower's capability and motivation, as well as the difficulty of the job and other contextual factors. The path-goal theory is complex. Its complexity is reflected in its component: four types of leadership, two classes of situational (contingency) factors, three different outcomes, and two proposition. The term path refers to the workers activities or courses of action to achieve a goal. This theory also state that leaders will motivate workers to increase their work performance under two conditions: (1) the leaders behaviour directly links the satisfaction of workers needs to the achievement of work goals and (2) the leaders behaviour matches the type of task and the workers personalities and abilities. To simplify ,leaders can increase worker motivation by directly linking goals and rewards and by helping workers achieve the goals and, thereby the rewards. b) Monitoring Performance When the training program is implemented, organization should continue to monitor employee performance to ensure performance level stay within organizations high standard. However, there are two general ways to monitor employee performance: 1) Informal performance monitoring: This type of monitoring is done by a day-to-day basis and includes action on the managers part such as observing employee at work, employees inter-personnel skills and checking in with customers. It I important to let employees know when they are performing well and when they need to improve. When criticizing an employees performance, it should be respectful. Some ways of making constructive criticism are : Criticize the action, not the person Dont focus on the trivial Be clear about explaining what the employee is doing incorrectly and correct way should be explained. Dont get angry because anger will only provoke fear and cause a loss of motivation in employees. 2) Formal performance monitoring: Formal performance monitoring goes beyond the daily observing of employee behaviour. This monitoring focus on particular aspects. For this aspects, organization need to Set standards which have to be specific, clearly defined and also be achievable so employees dont become frustrated.

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Measuring performance which should be fair and communicated to all employees that these measurements will affect. Feedback should be given on employees performances otherwise other two actions above would be useless cause people cannot change inappropriate or unwanted behaviour if no one tells them to. Feedback should be collected from clients or customers. Employees who are meeting or exceeding the standards also need to be praised and recognized for their efforts.

Q6. (a) Evaluation of exit procedure: Every company needs to have an organisational exit policy for whatever the reason an employee leaves the company. It is important whether employees leave on their own, because they are resigning or retiring, or if they are asked to leave because they are being terminated, downsized, or laid off. It is the way that can handle the situation of an employees exit from the organisation sends a strong massage to those who remain in the organisation. So exit procedures have to be free, fair & acceptable by employee & employer both. So an specific exit procedures models shown on behalf of Tibet travel & Indi travel which can be used by both as best practises.

Exit procedure

Voluntary exits

Involuntary exits

Redundancy

Resignation

Retirement

Layoffs

Terminations

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The Exit process orders are as follows: Resignation from employee side or notice from employer side Notice period: employee or employer both should give enough time to each other before any steps. Conducting Exit Interview where employee is asked some questions such as what is his primary reason for leaving or what was the most and the least satisfying about the job and so on. Provide Exp letter as well as relieving order or letter Full & final settlement and No dues Certificate

b) Selection criteria for redundancies: Redundancy is a reason for dismissal and is not itself dismissal. In particular it is not unfair dismissal although a dismissal by reason of redundancy may be unfair dismissal if the facts warrant it. 1. If a group of employees are selected for redundancy the employer must show what type of work they do and why the demand for that work has decreased or stopped completely. 2. If the amount of work has decreased so that only some of the employees within a group are selected, the employer must show how they picked those unlucky ones. 3. The employer must show in detail the selection procedure and criteria. This can range from "last in first out" to a scoring system, with the employer giving points for certain job skills.

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4. The selection criteria should not be based upon an individual's view of each employee, (for example, what the personnel manager thinks). 5. Once the criteria has been agreed it should be kept to. If the selection criteria is based upon Race, Disability, Age or Sex the affected employee can claim under Unfair Dismissal or the relevant discrimination law. Conclusion : The Human Resources (HR) function provides significant support and advice to management. The attraction, preservation and development of high calibre people are a source of competitive advantage for our business, and are the responsibility of HR. Mr Anthony should follow this procedures to success his travel and tourism business.

References .( Personnel management 1913-63: the growth of personnel management and the development of the Institute By Mary Margaret Niven, Institute of Personnel Management Published by Institute of Personnel Management, 1967 168 pages )

Bibliography

Baum, T. Human Resource Management for tourism, Hospitality and Leisure. An international perspective. Australia: Thomson Learning, 2006.

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Go, F.M., Monachello, M.L., Baum, T. Human Resource Management in the Hospitality Industry. New York: John Wiley & Sons, Inc, 1996. Tooman, H., Mristaja, H. Human Resource Management in Tourism, 2007. Torrington, D.P, Hall, L.A, Taylor, S. Human Resource Management (5th ed.). Harlow: Pearson Education, 2002. Torrington, D.P, Hall, L.A, Taylor, S. Human Resource Management (6th ed.). UK: FT Prentice Hall, 2005. Torrington, D.P., Chapman, J.B. Personnel Management. Hemel Hemstead: Prentice Hall, 1979.

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