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Practical Issues in Global HR Management

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Importance of Human Resource Management

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Differentiating between personnel management and human resource management

According to Baird and Meshoulam (2013), personnel management was extremely prevalent when the concept of Human resource management was not at all present in a business. It is a traditional approach that took care of staffing issues and maintaining payroll of employees. On the other hand, Human resource management has of late become more synonymous and is considered to be an extension of personnel management. The other point of differentiation arises in the functionality of both the management methods. In the case of personnel management, the major functions that is expected arises from indirect communication since their management role is strictly based on transactional duties. On the other hand, Human resource management deals in direct communication with employees and conducting transformational management activities.

It can be stated that human resource management has eventually taken a firm grasp on every aspect of personnel management that includes recruitment, payroll, training and development and other administrative functions. As per Becker and Gerhart (2015), the impact of human resource management is absolutely resounding in a corporate atmosphere with its ability to change dynamics of a business. Personnel management is a fading process in the current business atmosphere and it has been overshadowed by a more dynamic human resource management. In personnel management, it follows a much more routine function that beneficial for managing day to day objectives. Human resource management on the other hand allows strategic planning for achieving business goals. It allows companies to formulate and alter plans in accordance to business needs.

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Evaluating contribution of human resource management in an organization

Human resource management is a highly interactive process that not only allows the business to operate smoothly, it also tests the management skills of employees. If the example of McDonald’s can be used, it is evident that handling a fast food chain as popular as McDonald’s requires tremendous planning of balancing resources and manpower together. Every intimate procedure from recruiting, training managing payroll is done very systematically in the organisation. Cascio (2015) suggested that human resource management considers every aspect of the employee needs and attempts to create a cohesive working environment for all.

Human resource management contributes immensely in the process of recruitment and training. If the example of McDonald’s is used, it can be understood that their three-way recruitment process enables them to hire young and efficient employees instantly. Another benefit of having efficient human resource management is the ability to motivate workers and building a certain work culture that can be profitable for the business.

A restaurant chain like McDonald’s requires a strong team with good communication skills and human resource management in the company allows them to effectively transmit information to assist in providing best customer service. The award system of rewarding best employee each month boosts employee motivation in McDonald’s and in turn allows the management to assess the progress of every individual. This is necessary to identify weak links and help them generate better results. The quick and effective service provided in their restaurant chains shows the tremendous man-management that is achieved through implementing strict human resource management tactics.

Evaluating the responsibilities that line managers fulfil in human resource management

Segregation of important duties eliminates the risk of concentrating power to some managers and helps in easing work pressure on all departments. Colbert (2014) suggested that line manager’s act as the major ambassadors for handling daily revenue generating operations that is fruitful for the company interests. In the case of GlaxoSmithKline, being a vastly spread organisation, it becomes important to handle operations in each area of business. Line managers hold the authority to manage, supply and implement effective HR policies in the business. This helps in accumulating maximum profits out of several business locations in a single operating fiscal year. It also assists a single manager to undertake supervisory roles in various locations, which is not possible to achieve in a centrally based company.

Delaney and Huselid (2014) opined that line managers play an exceptional role in shaping the organisation as per business demands and have the responsibility to constantly check progress of the employees. The role of a line manager increases twofold in a human resource management context and they must fulfil internal and external duties with maximum ease. Designing the culture of the organisation allows the company to engage its employees towards collective goals. In the scenario of business in GSK, the company values of integrity and transparency in operations allows quality development work and the financial results are proof of its success. Other important duties that every line manager must undertake includes appraising the performance and rewarding them for their efforts. Any shortcomings in performance must be looked at seriously and disciplinary steps are to be taken by the line manager. The internal system where line managers review employee progress and performance give them authority to rate employee’s work and initiate a system where actual pay will be determined by performance. This can be a motivating aspect for employees to try and work as hard as they can.

Analysing importance of legal framework in managing human resource

According to Dowling (2014), legal formalities and procedures are important aspects that must be carefully implemented in the organisations to avoid any fraudulent and discrimination actions by its employees. The importance of implementing Equal pay Act 1970, Sex discrimination Act 1995, Employment Act 2008 and other legal issues such as national minimum wage must be considered before planning and implementation of effective HR practices. These help in avoiding any legal issues that can befall on the company or any discrimination lawsuit from any individual. Operations must strictly be under these rules and regulations so that issues can be avoided altogether.

Management of human resource cannot be undertaken randomly as the steps initiated will have direct legal consequences to the person affected. It is important that major processes starting from recruitment to promotion involves certain legal framework that can bind employers to act fairly with employees. The Sex Discrimination Act 1995 suggests certain rules that restrict employers from indulging in discrimination of employees based on their gender. This is implied during recruitment and in the workplace as well. Gist (2014) argued that indulging in a fair and unbiased manner towards employees must be the goal of a company which involves avoiding any kind of lawsuits from individuals due to acts of discrimination.

Evaluating reasons behind planning human resources in organisations

As per Huselid (2014), the proper planning of human resources allows better execution of the operations by handling manpower and raw materials in a profitable manner. Considering the scenario, it becomes a necessity for effective human resource planning because wastage of resource is occurring due to the double staged interview. It requires separate manpower and resources for each interview. Costs can be saved if only a single properly structured face-to-face interview is conducted. The interview questions can be made even more interactive by providing a situation to the candidate and assessing their response. Allocating staff for synchronising applicant forms and shortlisting the selected candidates can help in structuring a potent human resource plan.

As per Huselid et al. (2015), wastages of resources in recruitment and execution of recruitment procedures adds to the operating costs for the company. In the case scenario it is clear that the organisation do not have sufficient staff members in positions of authority. This increases the burden on a single employee to handle all the management duties and increases chances of human errors. Moreover, it seems that the organisation is a small scale business and wasting resources on a long process for recruitment should be altered. Instead resources should be streamlined to provide selected candidates enough training and development so that they can efficiently handle operations. Making the selected employees confident about their business surroundings will boost their interest to work in the organisation. Clear knowledge about business and operations can help in avoiding any kinds of errors.

Examining stages required for planning human resource needs

It becomes clearly important that restructuring the planning procedures will definitely require elimination of past processes and involve a fresh plan of action. HR planning process that includes recruitment facilities should incorporate the need to review candidate applications and make sure that capable candidates are selected according to their merit. As per Ichniowski et al. (2014), identifying candidates with potential and merit will give the recruiters a clear idea of their aspirations and interview structure can be built accordingly. This stage will help in removing any unsuitable candidate that will incur both time and resources of the company during interview. A clear idea of candidates and their qualifications can be used to develop direct and interactive questions that can allow the applicant to respond as per their capabilities. The next stage must involve proper supply of information about candidate personality to the interview panel and make sure that a structured question format is presented. The interview should be taken generically and must not include any instances of discrimination from the employers. Keeping decorum and fair practices in mind, the interviewer in no circumstances should indulge in either racial or gender discrimination. This can ruin conversation and a capable candidate can be lost. Lastly, a separate entry is to be made for candidates who are selected and candidates that show potential. This may require added machinery and manpower and any manual recording is to be avoided. Proper training and development practices must be used to make the selected applications feel comfortable at work.

Comparison of recruitment and selection processes in GlaxoSmithKline and McDonald’s

McDonald’s initiates a three-step process for recruitment as they believe in conducting a well structure selection process. The first step is to include an application form that includes several questions testing personality for specific jobs. Jackson and Schuler (2015) stated that application forms are crucial in determining the aptitude and general concept about the company in the minds of individuals. Looking at the nature of the applicant’s response, a rough idea about their personality can be made. The second step is the actual interview, and it is conducted in the most simplest of ways within the restaurant. The friendly atmosphere helps in easing tensions. The employer can easily identify whether the candidate possesses any friendly traits since it is a family restaurant. The interview in a way suggest a personality test as well. Lastly, the company runs some reference check to ensure that the information supplied by the candidate is authentic. This helps in promoting safety of co-workers as any candidate with criminal records can be removed.

On the contrary, GSK uses a 5 step recruitment process that also is initiated by an application form followed by online personality tests. It is commenced by first round of interviews that allows the selected candidates to be assessed in the assessment centre so that they get a close view of working methods. The best candidates are then made offers to join the organisation through a Future Leaders Programme. The process is intricate in nature since the field of duty that they have involves strictness due to chances of misuse of medicines.

Assessing the effectiveness of recruitment process in McDonald’s and GSK

If both the processes of recruitment in McDonald’s and GSK are to be carefully assessed, it is evident that their approaches to understand potential candidates is different from each other. It can be also related to the distinct nature of their operations. The recruitment method of McDonald’s suggests the easy nature of their processes and requirements since it is a family restaurant. On the other hand, GSK’s approach suggests an intricate design that exudes detailed response and understanding of candidate potential.

As per Laurent (2014), differences in working standards and recruitment process in every company allows them to reach their targets strategically. Recruitment being a strategic process in HRM allows the company to identify and develop candidates with potential to lead the organisation ahead. McDonald’s recruitment process being very friendly in nature allows hiring of staff that are manually capable and intellectually amiable. This criterion allows the services to be quick and effective. The vast network of restaurant chains across the globe providing goo food and service is a testament to that point. GSK’s business model requires the level of strictness in their recruitment process since legal complications in a pharmaceutical company is immense. They need thinkers and hard workers to handle daily operations.

Evaluating the processes between various motivational theory and reward in Virgin media

Motivation of employees not only boosts their zeal to work for a company, it also initiates loyalty which is sometimes generated by rewards. If the case of Virgin Media is evaluated, reward is considered as a major factor that boosts the level of motivation among employees to achieve their goals. The competitive salaries of individuals make them interested in working due to the monetary benefits. But apart from monetary benefits, Virgin media does provide rewards through health care benefits, pensions and other saving schemes.

Keeping loyalty as a parameter allows Virgin media to focus on keeping employees happy first. This factor of rewarding employees does have an overall impact in the motivation of employees at Virgin media. Maslow’s hierarchy of needs theory clearly defines that motivation can be generated by sufficing human needs. Rewards is one of the best ways to achieve motivation. Rosenzweig and Nohria (2014) opined that reward and motivation are interrelated processes that determine whether an employee is capable enough to tackle their duties. As the company policy of virgin Media suggests to keep employees happy first before business, the system of rewarding does impact the motivation of its employees.

Youndt et al. (2014) argued that the extent of motivation that is achieved through rewards initiates a self-generated willingness to work for the company and increases the factor of loyalty towards the organisation. This is important since employee retention allows a business to function properly. It also eradicates the need to repeatedly hire professionals for job openings. In short it can be stated that reward systems in Virgin media are directly related to the motivation of its employees.

Understanding the job evaluation process and factors influencing pay

Considering the fact that motivation is linked with proper rewards at Virgin Media, it can be suggested that job evaluation is a variable that is looked upon by the level of productivity shown by individuals. The factors that affect competitive salaries of employees is dependent on the company policies that give first priority to employee welfare. As their main agenda is to first keep satisfied employees, it automatically relates to their motivated performance at work to provide customer satisfaction. If the theory of Elton Mayo is used, it can be suggested that job evaluation is looked upon by virgin media by the level of productivity shown by employees. By introducing various schemes for employees, employee motivation was raised and payroll was provided accordingly.

Even the Maslow’s hierarchy of needs can be used to understand the working of Virgin Media for job evaluation. Since the company looks very carefully at the needs of employees, it is obvious that the needs and progress in work are monitored very closely. The high esteem needs and the need for self-actualisation is achieved by regular monitoring and reviewing performance of the employees. Schuler and Jackson (2015) suggested that a motivated employee strives harder to improve their skills and this in turn is identified by the company and the employee can be rewarded accordingly. Constant reviews of performance helps in segregating out the deserving candidates for increase in pay.

Understanding the rate of success of reward systems in Virgin Media

It is but clear that Virgin Media’s management focuses on employee welfare by motivating them with rewards. If the level of success is to be evaluated, it can be adjudged that the various schemes initiated by the company did produce results where employees performed exceptionally well and earned promotions to higher posts due to the reward system. The reward system is basically considered as a huge motivational factor in the company as no stones are left unturned for creating steps for employee improvement.

Snell (2015) opined that business performance improvements can be generated by effectively motivating employees and rewards are the several methods that help a company achieve its objective. Virgin Media successfully uses a recognition scheme based on peer to peer variables that allowed better generation of company values. This reward system helped immensely in keeping the company values intact and helping employees to strive for working to keep company standards intact. This resulted in better employee retention and company performance.Providing successful employees in the customer service section with their own vans as reward was a unique way to show gratitude. These small acts of rewards keep employee interest alive as they get lured into working harder for attaining even more rewards. The various apprenticeship programmes are also key towards the success of employee retention in Virgin Media.

Examining the steps used by Virgin Media for monitoring performance of employees

It is imperative that the monitoring of performance is made in order to check shortcomings of workers so that they can be trained and provided development programmes for enhancing their capabilities. In the context of Virgin Media, the technical staff are monitored and managed through a framework named “Your Story Framework”. This allows them to assess the career progression made by employees. In addition to this, the company also engages in regular meetings that allows a clear view of each employee’s performance. Wright and McMahan (2016) suggests that review of performance helps in building a clear review of the progress made and the areas that need polishing.

The review process is conducted fairly with no kind of biasness towards any employee. Consistency is also achieved due to regular meetings which help in understanding employee needs. This forms the solid basis that ensures the level of increase in salary that an employee has earned through their hard work. Since the process is fair, there are no doubts in the minds of employees regarding any sort of bias. It can be suggested that the operational framework for monitoring progress includes Maslow’s Hierarchy of needs theory and focuses on higher needs of individuals including self-actualisation and esteem needs. Since the business model of Virgin media is set towards achieving the goal of first preference to employee needs, it can be said that ample care is taken for the achievement of this goal. Regular monitoring allows better understanding and the motivation through reward systems makes the company pro-active.

Identification of reasons needed for ending employment of Faisal from the organisation

According to Stevens and Campion (2015), recruitment and termination of employees are the two sides of a coin in every organisation. It suggests that the selection and termination of the candidate will be based on the amount of hard work that they are willing to put. In the context of the case study, it is clear that Faisal was terminated due to the violation of company terms that he managed to do. The impact of poor performance and violation of terms and conditions are enough reasons that can cause termination from the job. On top of that, Faisal had knowledge about the terms and conditions and even then he did manage to violate the rules. This makes it evident that termination was the right decision from Bob.

The other reasons which can be seen from this case study is that being a restaurant manager, he did not fulfil his basic duty of maintaining hygiene and quality standards at work. On top of that his significant time spent on other personal work using the company equipments made it reason enough for the termination process to be undertaken. Bob even attempted development and training procedures and it were a failure, thus it is enough evidence that the employee is not capable enough practically to handle the job and hence the termination. Rules violation are grounds that can also lead to termination of an employee. On top of that improper use of office machinery to handle personal work and neglecting the very reason for his recruitment was enough evidence required to terminate Faisal from duties. The lawsuit filed by Faisal does have some value since Bob terminated him without prior notice. However, if the company handbook has included a clause suggesting termination by employer at any time if they deem it right, then Faisal is bound to lose the lawsuit.

Understanding the exit procedures from employment

Considering the case of Faisal, t is evident that the actions committed by him were reason enough to cause his termination. When he acknowledged the handbook, he must know that he has to abide by those rules and regulations. It is but clear that violation of rules have a penalty to be paid and that caused his termination. Moreover, the employee performance is also a criterion for termination. Ulrich et al. (2015) opined that if there is no improvement on the employee’s part, there is no other option than to terminate the individual as it bears on the costs of the company.

It is also clear that Bob himself caught Faisal watching pornography and on further investigation found that he took time in personal activities using company hardware. This was also a violation of the rules. Faisal’s actions were causing serious damage to the company’s reputation and it provides enough cases that made Bob take the step for termination. Bob also tried coaching Faisal to tune his abilities for work, but there was no improvement. If the company deems a candidate to be unfit for the job and assesses that no evolution in skills has been gathered, the only way to save the company is to terminate services. Being a manager increased Faisal’s responsibility, but he shirked from his duties and this is a serious offence by any employee.

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On Bob’s art, he tried his very best to improve Faisal’s performance, but he cannot watch his company suffer losses due to the incompetence of a single employee. Bob did give ample opportunities to Faisal for improving his conduct and working ethics, however it did not change and after six months of work he had full right to terminate him and avoid any more losses.

Considering the influence of legal framework on cessation of employment

However, the legal implications that are in favour of Bob, outnumber the basis on which Faisal lodged a lawsuit. Firstly, he hired Faisal keeping his merit of experience in perspective and not his race or age. Secondly, the rules and regulations in the handbook clearly point out that in no circumstances will the employee use the company equipments for their personal use. Bob had also caught him red handed doing personal duties from the office equipment. This will definitely go against Faisal as violation of terms of duty. Apart from this, the poor performance in managing duties and even poor results after training and coaching practices suggests the incapability of Faisal in handling the job. The issue of neglect towards duty was evident by the shabbiness of the store front and the devaluing quality standards of the food. Considering it was a food restaurant, these objects of neglect cannot be unseen. Faisal did not complete his duties as a manager and has shown incompetence in work. This is enough evidence that can help Bob win the lawsuit filed against him. Further, Bob can seek damages towards business losses and also file a defamation case for tampering with his name and the image of the restaurant.

Reference List

  • Baird, L. and Meshoulam, I., (2013). Managing two fits of strategic human resource management.Academy of Management review,13(1), pp.116-128.
  • Becker, B. and Gerhart, B., (2015). The impact of human resource management on organizational performance: Progress and prospects.Academy of management journal,39(4), pp.779-801.
  • Cascio, W.F., (2015).Managing human resources. New York, NY: McGraw-Hill.
  • Colbert, B.A., (2014). The complex resource-based view: Implications for theory and practice in strategic human resource management.&Academy of Management Review,29(3), pp.341-358.
  • Delaney, J.T. and Huselid, M.A., (2014). The impact of human resource management practices on perceptions of organizational performance.Academy of Management journal,39(4), pp.949-969.
  • Dowling, P., (2014).International human resource management: Managing people in a multinational context. Cengage Learning.
  • Gist, M.E., (2014). Self-efficacy: Implications for organizational behavior and human resource management.Academy of management review,12(3), pp.472-485.
  • Huselid, M.A., (2014). The impact of human resource management practices on turnover, productivity, and corporate financial performance.Academy of management journal,38(3), pp.635-672.
  • Huselid, M.A., Jackson, S.E. and Schuler, R.S., (2015). Technical and strategic human resources management effectiveness as determinants of firm performance.Academy of Management journal,40(1), pp.171-188.
  • Ichniowski, C., Shaw, K. and Prennushi, G., (2014). The effects of human resource management practices on productivity: A study of steel finishing lines.The American Economic Review, pp.291-313.
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