STRATEGIC MANAGEMENT & LEADERSHIP (Edexcel BTEC Level 7)

INTERNATIONAL COLLEGE OF BUSINESS AND TECHNOLOGY 

PROFESSIONAL DIPLOMA IN STRATEGIC MANAGEMENT & LEADERSHIP (Edexcel BTEC Level 7)

ASSIGNMENT COVER SHEET 2013/2014 

Task 01

Write a report not more than 3500 words covering the criteria given below by analyzing a strategic change you think your organization should implement.  The strategic change can be either a change within a department, SBU or an entire organization.

1. Discuss different models of strategic change available for an organization and critically analyze them to identify the most appropriate model for the above change considering the current business context (Need to analyse at least 03 models highlighting the differences and similarities)

(LO 1.1 / LO 1.2)

2. Critically discuss the importance of making the above change, asses the factors that are driving the change and asses the resource implications which make the organization not respond to change

(LO 2.1 / LO 2.2 / LO 2.3)

3. Assess the value of using strategic intervention techniques in organisations

(LO 1.3)

4. Develop a change management strategy which will involve stakeholders for the above change, develop systems to involve stakeholders in the planning of change and critically evaluate the systems used to involve stakeholders in the planning of change

(LO 3.1 / LO 3.2 / LO 3.3)

5. Create a strategy for managing resistance to change

(LO 3.4)

6. Develop appropriate models for change, plan to implement a model for change and develop appropriate measures to monitor progress

(LO 4.1 / LO 4.2 / LO 4.3)

Introduction

The company which has been selected for this assignment is Hayleys Advantis Limited. Hayleys Advantis Limited is a leading logistics service provider in Sri Lanka with connections to the international logistics, freight forwarding and shipping lines. The service provided from Hayleys Advantis Limited includes integrated logistics services which includes inland transportation of goods, energy support services, other transportation services, international freight management services which includes moving goods through shipping lines and airline transportations, marine services that include container vessels management, and harbour terminal services. The vision of Hayleys Advantis Limited is ‘To be Sri Lanka’s logistics inspiration’. The assignment will discuss on the theoretical and practical aspects of managing organisational change in Hayleys Advantis Limited.

1. Different models of strategic change available for an organization and critically analyse them to identify the most appropriate model

Among many theoretical models of change that can be applied to make changes in the Hayleys Advantis Limited organisation, the 8 steps to change by Kotter, Three stages change management model by Kurt Lewis and ADKAR model can be identified as three main models that can be used for managing changes in Hayleys Advantis Limited organisation. The change that has been proposed for the organisation is to change the current ERP system new an updated ERP system where the employees will be provided with new user interfaces to manage their work in offices. Employees who are providing their contribution as manual labour will not have a higher impact from the change as the change will focus on people who are using the computerised ERP system (Hayleys Advantis, 2015).

8 steps to change by Kotter model has steps that have its first three steps which focus on freezing the organisation, second three steps to make the changes happen and then the final step for refreezing the organisation. In the first step, urgency for change is increased. In that people are inspired and motivated support the change by showing the benefits they will receive from changing to the new ERP system. The second step is building the guiding teams where properly qualified employees at the position those will be impacted by the changes. This will include aligning the operational teams and other support teams of the Hayleys Advantis Limited. Third step is creating the vision for the change. In the case of Hayleys Advantis Limited, the vision will be change the ERP system for receiving better operational outcomes and make the business process smoother. Then the fourth step is communicating the vision to the organisation. Fifth step of the model is empowering action. Empowering action includes removing the obstacles for the change and recognises progress. This step will include providing training and basic demonstrations of the new ERP system. 6^th step is creating short term wins. This will be achieving the systems implementation steps (Kotter¸ 2006). Not letting go and make the changes reinforce are the next two steps. In those two, the system will be monitored and support will be provided (Senior and Fleming, 2005).

Kurt Lewis has introduced the model with three steps, unfreeze, change and refreeze. In unfreeze, the change will be thoroughly investigated and understood. The actions that were carried out in the first three steps of Kotter’s model will be performed in the unfreeze phase. The second phase is change phase, in that switching to the new ERP system will be done and the employees will be using the new system instead of the old one. Then the refreeze will be done where stability of the new system will be increased and people will get comfortable with their routine.

The ADKAR model is another change model that can be used to manage change which has a different step of steps than the previous two. In ADKAR model, five activities are carried out. Those include,

1.      Awareness – increasing awareness about the new system and its benefits

2.      Desire – motivating the employees to reach for the changes which will benefits them and make their work easier

3.      Knowledge – providing product knowledge for the employees in the new ERP system

4.      Ability – providing practical training for the employees for the employees of Hayleys Advantis Limited to use the new ERP software that are relevant to them

5.      Reinforcement – making sure that the employees are taking the best use of the systems

When the models are compared, it can be seen that Kotter’s model of change and Kurt Lewis model has similarities of the process even though the steps taken are slightly different. But the ADKAR model has provided a clear and better understanding model which can easily be implemented. As the five phases of the ADKAR model also match the type of the change that needs to be implemented in Hayleys Advantis Limited (Wren, 2008). Therefore a decision can be made to use the ADKAR model as the change model for Hayleys Advantis Limited.

2. Discuss the importance of making the above change, asses the factors that are driving the change and asses the resource implications which make the organization not respond to change

Importance of making the above change

The change that has been proposed includes giving new ERP software systems for the employees of the organisation which are relevant for them to manage their work. This will include updated logistics management systems, management information systems, human resource information systems, and customer relationship management systems etc. using of the systems for the change will have several advantages for the Hayleys Advantis Limited organisation.

The ERP systems will give complete visibility in to all parts of the business such as Human resource management, logistics management, purchasing management, operations management and all other business functions of the Hayleys Advantis Limited so that the management will be able to easily monitor the changes and analyse the business requirements. It will help to build more coordination and coherent workflow in the organisation. The ERP systems will be connected to each other and therefore the systems will allow building relationships between the business units of the organisation so that mistakes that happen due to lack of coordination will be reduced (French and Bell, 2001).

Management Information reports can be easily created with the ERP systems and therefore the management of Hayleys Advantis Limited will be able to keep track of the business performance easily and in a convenient way.

Business decision making will be made easier by the ERP systems as they are able to track down the current business flow and forecast the future of the business flow. That information can be used by the management to support the business decisions so that the business can be developed.

The factors that are driving the change

Increasing demand – as one of the popular and highly reputed logistics service provider in the country, the Hayleys Advantis Limited keeps developing the demand for services day by day. Therefore the management and the directors of the organisation have understood that more efficient systems and developed working systems are needed for the employees perform better and match the supply of service to the demand they have. And it also includes developing the business with help of more human workforce.

Performance development – using new ERP systems that are updated with the newest technologies and the more efficient techniques have been proven to increase the organisational performance. As a service provisioning organisation, Hayleys Advantis Limited has a higher requirement of efficient work as efficiency is a key quality in logistics service. Need of more efficiency can also be identified as a driving force for a new ERP system.

Need of higher revenue – higher revenue generation is also a strategic goal of Hayleys Advantis Limited as an organisation. It includes generating more sales, generating more income and finally developing the business as a whole unit. As the ERP systems have the ability of performing these activities directly and indirectly, the organisation has identified the change as an essential factor.

Resource implications which make the organization not respond to change

Human resources – lack of expert and highly skilled human resources is one of the resource implications that have made the Hayleys Advantis Limited reluctant for the change. The employees those working in the departments have been using the old ERP systems for a long time and they have become very familiar with those systems. And the employees do not have hands on experience with the new or complex ERP software package. Due to lack of skilled employees, the Hayleys Advantis Limited has shown low responses for the change.

Physical resources – there are hardware and other physical resources that are also need to have when the new ERP system is implemented in the Hayleys Advantis Limited. This will include new computer systems that are capable of installing the advanced ERP system. Therefore the old computer hardware will not support the new change.

Financial resources – having to purchase new hardware systems, provide training for the employees and also purchase of the ERP software will incur expenses that are out of the normal budget for the year. Therefore the lack of financial resources will also be another factor for the organisation show low responses for the change.

3. The value of using strategic intervention techniques in organisations

Use of the strategic intervention techniques for managing the change process of the Hayleys Advantis Limited can have several benefits and advantages for the organisation itself and for the employees who are working in the organisation.

Team building consensus and conflict – getting the consent of all the employees that are working in the team of the Hayleys Advantis Limited organisation and getting consent for the change from all the employees who will be affected from the change will be one of the intervention techniques that can help the changes be more effective. As the change actions have been taken with the consent of the employees, they will be working towards applying the changes to the system on their own.

Contingency theory – use of the contingency theory in the Hayleys Advantis Limited will allow the management of the Hayleys Advantis Limited to use different management styles and strategies to match the background of the business problem throughout the change process (Kotter¸ 2006). This will allow making flexible and more effective decisions throughout the change management process.

Taking proactive actions – taking proactive actions in the organisations such as providing training for the employees the systems are set up, purchasing the hardware requirements beforehand in order to avoid waiting time for processing will be some of the proactive actions that can be taken by the Hayleys Advantis Limited organisation. These will reduce the processing time in the change management process it will allow the organisation to make the process faster and more convenient for the employees and also to achieve a higher productivity level at the same time.

4. Develop a change management strategy which will involve stakeholders for the above change, develop systems to involve stakeholders in the planning of change and critically evaluate the systems used to involve stakeholders in the planning of change

Develop a change management strategy which will involve stakeholders for the above change

A stakeholder analysis can be conducted to identify how the stakeholders of the project should be managed.

Identify stakeholders –

The stakeholders of the change process at Hayleys Advantis Limited for switching to new ERP system solution will include,

1.      Employees

2.      Supervisors

3.      Middle managers

4.      IT officers of the company

Stakeholder	Responsibilities	Strategy	Strategy explanation
Employees	Adapting according to the new systems, being the primary impacting group of the change process at Hayleys Advantis Limited.	Manage closely	The employees of the Hayleys Advantis Limited will be provided inductions, presentations, meeting, group training sessions and also practical training sessions to adapt to the new systems
Supervisors	Providing supervision for the change activities and making sure that the short term   targets are achieved	Keep informed	The supervisors will be provided information about the project schedules, important targets and special deadlines to be met
Trainers	Trainers will train the employees for the new ERP systems and will make sure that employees are able to handle the systems independently	Keep satisfied	The trainers will be given instructions on what should be done and how the training programmes need to be organised.
IT officers	Setting up the new ERP systems and being responsible for procurement of the hardware items those will be needed for the project.	Monitor	Instructions will be given for the IT officers of the Hayleys Advantis Limited organisation how the purchases should be made and what are the new ERP systems that will need to be set up in different departments of the organisation.

Develop systems to involve stakeholders

Meetings – meetings will be one of the main methods the management of Hayleys Advantis Limited will need to use as a strategy to get the stakeholders of the business involved for the change management approach. Meeting will include gathering the employees of the Hayleys Advantis Limited and the management of the organisation to share the idea, thoughts and views about the change that is about to be carried out in the organisation. at first the management can provide information on what are the changes that will be made and their impact (Weisbord¸ 2004). And then the employees have the freedom to express their thoughts on the discussed items.

Group facilitation – having employees in group facilitation in the organisation will be another method that can be used to involve the stakeholders for the change management process. With group facilitation, the employees will be allowed to gather as teams and present the problems they will be facing as a result of the change process. This will allow the employees to receive solutions and clarify the issues related to change that is about to take place.

Delegation – delegation of authority is another effective and result oriented method of involving the stakeholders of the Hayleys Advantis Limited. When the stakeholders of the change process such as employees, supervisors, managers, trainers and stakeholders outside the organisation are given authority for tasks and processes of the change process, they will be holding more responsibilities and the stakeholders will be in charge of the changes. This will make the stakeholders learn more about the change process at Hayleys Advantis Limited and take actions on behalf of the organisation (Rothwell, 2005). Therefore using delegation of authority can be seen as an effective method that will get the stakeholders involved in the change process in a better way.

5. Create a strategy for managing resistance to change

Following strategies will be carried out in the Hayleys Advantis Limited organisation for managing the employee resistance for the change management process at the organisation.

Objective – reducing and minimising the resistance for changing over to the new ERP system at Hayleys Advantis Limited.

Time frame – within the system transition period (1 month)

Training and education – providing training and providing education for the employees of the organisation is one of the most effective actions that can be taken to reduce resistance. With the educational programmes and training programmes, the employees of the Hayleys Advantis Limited organisation will be able to get a better understanding of the change that is about to take place and how the employees of the organisation will be affected from the change. With trainings and education programmes, the employees will be more confident about the new working systems they have to work with and continue the operations (Anderson, 2009).

Taking feedback from the stakeholders – taking feedback from the stakeholders and making changes for the change process and activities related to the transition process will be another method that will help to reduce the resistance of the employees. With that, the employees will be able to express the difficulties they have face in the process and get help from the organisation to reduce the difficulties they face. Taking feedback from the employees will help to mitigate the difficulties and build confidence among the employees which will then help to reduce the resistance for change in the organisation (Smith, 2002).

6. Develop appropriate models for change, plan to implement a model for change and develop appropriate measures to monitor progress

Change model

This part of will focus on applying the selected model of change for the Hayleys Advantis Limited organisation, preparing the environment for implementing the change process and then the methods on how to assess the progress of the change process.

The strategic change model that has been selected to use is the ADKAR change management model. The ADKAR model will be included with steps as Awareness, Desire, Knowledge, Ability and Reinforcement.

Awareness

In the awareness stage, the change that has been proposed to take place in Hayleys Advantis Limited will be communicated with the middle management, the supervisors and with the employees of the organisation. this will focus on making the employees understand why a change to the ERP system is needed at this time and what benefits they will receive.

Desire

In this part, it is expected to create desire within the employees of Hayleys Advantis Limited and other involved parties for the change. It will include showing the benefits of the changed systems for the employees themselves and how they are able to make their work easier.

Knowledge

This part focuses on providing theoretical knowledge to the employees on how to use the new ERP systems and how they are able to process information and keep the operations up to the required level. Knowledge will be provided to the employees using formal training programmes, coaching, and group discussion and troubleshooting guidance from internal and external parties of the organisation.

Ability

In knowledge, the theoretical knowledge was provided for the employees. Since theoretical knowledge is not sufficient for them to work independently with the new systems. Therefore practical training and hands on experience with the systems is given to the employees using direct involvement of the coaches, monitoring the performance, using expert trainers, and practising the operational activities suing the systems.

Reinforcement

Reinforcement of the changes will be focusing on developing the performance of the employees with the system that was implemented and making sure that the employees are satisfied with the new system and also that they are comfortable with the system.

Implementation model

As the change that has been proposed for the organisation is an internal change that does not require interactions with the outside of the organisation, customers or the suppliers, the change can be implemented using the business process reengineering (BPR) approach. The implementation of the BRP will be done in six main steps. Those are,

1.      Stating the case for action

2.      Identifying the process thoroughly for reengineering (switching to the new ERP system)

3.      Evaluating the factors that support the process

4.      Understanding the current process

5.      New process design

6.      Implementation of the process

Methods of monitoring progress

Goal based evaluation –

Goals related to efficiency of work can be given for the employees in order to compare the performance of the employees with the old systems and with the new system (Smith, 2002). This will allow the management to identify how the performance of the employees has been developed or upgraded after the implementation of new ERP systems.

Employee feedback –

Taking feedback from the employees on how they have found the new ERP system to be helping them for their work. Getting feedback from the employees will be important as employees are the main group which faced the changes and therefore their feedback will provide more relevant feedback for the management to make changes to the systems and also to identify which areas of the system has not supported the employees to maximise their work and performance.

Quality circles –

Quality circles are another approach that can be taken to discuss the progress of the new system within the organisation. The quality circles can be organised with the participation of employees, supervisors and the middle management. In the quality circles, the employees will be allowed to bring up the issues they have been facing with the new system (Smith, 2002). This will be helpful for the organisation to identify how the new system has been performing and what areas are still needed to be developed.

Conclusion

Three models of change that can be used to manage the change the Hayleys Advantis Limited organisation were discussed and the differences between the different models of strategic change were identified. After comparing the models of change, the most suitable method of change was identified as the ADKAR model of change for Hayleys Advantis Limited. The importance of making the changes in Hayleys Advantis Limited that includes switching over to the new ERP systems was discussed and resources implications that the organisation has to face have also been identified. The benefits that can be derived by using strategic intervention in the Hayleys Advantis Limited organisation have also been discussed. A strategy has been created to reduce the resistance for change in the Hayleys Advantis Limited organisation and models of change have been formed for implementing the change and measuring progress.

References

Anderson, D., (2009), Organization Development: The Process of Leading Organizational            Change, Sage Publications

Daft, R. L. (2001), Organization Theory and Design, Ohio: South-Western College           Publishing

Drucker, P. F. (2001), Management Challenges for the 21st Century. New York: Harpers   Collins

French, W. L. and Bell, C. H., Jr., (2001), Organization Development, (5th ed.) New         Jersey: Prentice Hall

French, W. L.; Bell, C. H., Jr.; and Zawacki, R. A. (2004), Organization Development       and Transformation: Managing Effective Change. Illinois: Irwin.

Hayleys Advantis (2015), about us and our services (online), available from:           www.hayleysadvantis.com [accessed on 7/10/2015]

Kotter, J. P. (2006), Leading Change, Massachusetts: Harvard Business Review Books

LaClair, J. and Rao, R.(2002), Helping Employees Embrace Change, McKinsey Quarterly

Lawler E., Worley, C., (2006), Built to Change: How to Achieve Sustained            Organizational Effectiveness, John Wiley & Sons

Murphy, R. M. (2000), Strategic Management vs Strategic Leadership: Untying the            Gordian Knot, Published Proceedings, Academy of Administrative Sciences and        Business Conference

Palmer, I., Dunford, R. & Akin, G, (2006), Managing Organizational Change: A Multiple Perspectives Approach, McGraw-Hill

Paton, R. & McCalman, J., (2000), Change Management: A Guide to Effective     Implementation, Sage

Prigogine, I. (2006), the End of Certainty: Time, Chaos, and the New Laws of Nature.        New York: The Free Press

Rothwell, W.J. & Sullivan, R., (2005), Practicing Organization Development: A Guide     for Consultants, Pfeiffer

Senior, B. & Fleming, J., (2005), 6. Organisational Change (2nd Ed), Prentice Hall

Smith, M., (2002), Success Rates for Different Types of Organizational Change, ISPI         January

Weisbord, M.R, (2004), Productive Workplaces Revisited, Jossey-Bass

Wheatley, M. J. (2001), Leadership and the New Science: Discovering Order in a  Chaotic World. California: Berrett- Koehler Publishers

Wheatley, M., Tannenbaum, R., Griffin, P., & Quade, K., (2003), Organization     Development at Work: Conversations on the Values, Applications and Future of      OD, Pfeiffer

Wren, D. & Bedeian, A, (2008), The Evolution of Management Thought (6th Edition) ,      John Wiley & Sons

Zander R. & Zander, B, (2000), the Art of Possibility: Transforming Personal &     Professional Life, Harvard Business School Press  

Pearson BTEC Level 5 HND Diploma in Business - Human Resource Management - assignment

Pearson BTEC Level 5 HND Diploma in Business

Unit 21: Human Resource Management

   

Introduction

Human resource management has become more important factor for consideration in an organisation. HRM has come with new procedures which will affect the organisational goals and the employees of the organisation as a whole. In the history managing people in an organisation was called as ‘Personnel management’ and it was just a flat theory on controlling people. With the time it has been changed to Human Resource management or Human capital management, which is more flexible and more organized as well. As HRM has shown it’s affect on organisational goals and development and also employee controlling, it has now become a vital part in every organisation.

1.1            Distinguish between personnel management and human resource management
According to Mathis and Jackson (2005), a traditional approach to Personnel management is managing people in an organisation. Human resource management can be considered system that manages people and their strength is a modern approach. Personnel Management focuses on employee administration, benefit and employee relations. Human resource management system focuses development, train, and retain of employees in an organisation.  Personnel management considers people as an input for achieving goals. Human resource management considers people as an important and valuable resource for achieving a desired output. Under personnel management jobs are designed on the division of the labour and when it comes to human resource management the jobs are designed to promote team work and team building.

According to Dessler (2010) Human Resource Management, a company that practices personnel management does not like to spend money on training and development but in human resource management, the money spent on training and development is considered as an investment. The decisions that are being made inside a company that practices personnel management are sole decisions of its top management but in an organisation that practices Human resource management, they value the suggestions of the employees of the organisation. And all the people in the organisation are given authorities to make decision in their levels of management. Personnel management always tries to keep an increased production without caring much about the employees. But human resource management focuses on employee satisfaction, efficiency and effective and the well being of the employees as well as the production.

Shown below is a chart that shows the difference between personnel management and HRM,

Figure: Difference between HRM and Personnel management

Source: http://www.virbusgame.eu/virbus/mediawiki/images/8/8b/Hr_management.png

1.2            Assess the function of the human resource management in contributing to organisational purposes.

Typically the proposes or goal of an organisation is to make higher number of sale, increase profits, get market for the products, getting their brand name popular and expansion of business, expansion of clientele etc. in-order to achieve these goals, the goals itself has to be specific, achievable, challenging enough and executable.

According to American Management Association (2000), "Human Resource can be described as the organisational function accountable for obtaining and maintaining qualified employees. In the complex environment today, fulfilling that mission is a major contributor to an organisation success". As it states, managing of human resources plays a giant role when it comes to increasing the productivity and the performance of an organisation which finally leads to achieve organisational goals. People or the employees working in the organisation contribute their knowledge and labour for the achievement of objectives. Human resource management selects the people from outside of the organisation who have the potential to support the organisation in achieving it’s goals, and give them employment opportunities, develop their skills more and more, utilise their skills, and compensate them for their contribution. Functions of the human resource management include,

·         Enterprise Management

·         Individual administration

·         Human energy management

·         Industrial and employee relations.

Human Resource department of ScottishPower is responsible for Employee Relations, Recruitment, Staffing, Training and Development, Security, Rewards, Facilities, Pensions, Fleet, , Health and  Safety.

According to Horler, the CEO of ScottishPower, "Our people are at the heart of our success".  This means that he truly considers the human resource as his success key. Out of the five 5Ms which are,

·         Men

·         Money

·         Machinery

·         Market

·         Material

According to Resnick (2013), Men or the human capital considered to be the most important part of an organisation as men can react on different situation and they are unpredictable. Therefore it is essential to have a system to manage, motivate and maintain people in the organisation in order to keep it running smoothly and to make sure the organisational goals are being achieved at the same time.

1.3            Evaluate the role and responsibilities of line managers in human resource management

According to McDonald (2013), the responsibilities of line managers can be listed as below,

1         Employee engagement

2         Performance appraisal

3         Disciplining Employees

4         Performance related pay

1.      According to Slayor Academy (2010), line managers supervise their employees to take the approach of employee engagement, is the most important factor. The culture in a team is created by the line manager. Managers who focus on the negative aspects of the employee's performance, or to micromanage their employees only seek to raise their status, create detached and dissatisfied employees. But line managers who care about employees and react positively on their performances and focus on their employees’ strengths and freedom of speech will get more encouraged and motivated employees.

2.      Performance Appraisal are architect-ed by HR professionals and are being practiced by line managers of HRM. Performance is monitored and evaluated by the line managers and the feedback is given to the employee directly in one to one meeting at appraisal meetings.

3.      Disciplining Employees – discipline is the behaviour expected from an employee inside the organisation. The expected behaviour is informed to the employees in expressed and implied terms and the behaviour is monitored by line managers. If there has been any breach of the expressed or implied terms in discipline, the line managers will be taking actions to correct them.

4.      When it comes to performance related pay, the line managers are responsible for deciding the performance levels and the deserved pay of an employee. Line managers should make sure that the above average performing employees should get paid more. And the pay should be fair depending on the load of work and the quality of work of an employee. And not be biased or discriminatory.

1.4            Analyse the impact of the legal and regulatory framework on human resource management.

According to www.legislation.gov.uk (2014)  , There are 9 laws and regulations in the UK. Those are,

1.      Sex Discrimination Act (1975/1995/1997).

2.      Race Relations Act (1992 – amended 2000)

This law is to protect men and women from any discrimination on their gender or marital status, race, colour, nationality, ethnic, and national origin in the fields of employment and as in education and public functions as well.

3.      Equal Pay Act (1970)

This is an act which stops favourable treatment or pay for men and women in professional environments.

4.      Disability Discrimination Act (1995 –amended 2005)

This law has prohibited discriminating people on the grounds of their disabilities in the fields of employment and as in education and public functions as well.

5.      Employment Equality Act (Sexual Orientation,Religion and Belief) (2003; Equality Act - 2010)

Like the Race relations act, this act also defines that there shall not be any discriminations in any organisation for people on their race, gender or disability.

6.      Employment Act (2008)

This act is to make provisions for resolutions that needs to be applied in case of any occurrences of disputes between employer and the employee.

7.      Work and Families Act (2006)

This is an act made to help employees to balance their work and family lives without much problems. This act defines the maternity leaves and payments, introducing new rights for fathers such as paternity leaves, making flexible working times etc.

8.      Data Protection Act (1998)

Mainly defines how the data should be gathered, stored, transferred and destroyed inside organizations and on individuals.

9.      Rehabilitation of Offenders Act (1974)

This act makes sure that the criminal convictions are ignored after a rehabilitation period so that people would not have a dark mark in their whole life for a minor offense came across.

2.1 Analyse the reasons for human resource planning in organisations

According to Price (2000), a simple definition to human resource planning is making sure that the right amount of qualified people are working in the right place and in the right time in-order to make sure that the organisational goals are achieved.

For an example if there are 10 machines and 10 people working on them, and if the company is going to but another 5 machines, the Human resource planners will make sure that another 5 trained people will be there to work on the new machines when they arrive, but not before it is too early or after it is too late so that there will be production loss or time lost.

2.2 Outline the stages involved in planning human resource requirements

Shown below is a graph that simplifies the human resource planning process.

                                    Figure 2: human resource planning process

                                    Source: http://webfidel.free.fr/maich/ch04.htm

According to Dessler (2010)  the first step is to assess and make an inventory of existing man power in the organisation. Then the human resource planners have to forecast the future demand and supply of human resources. There are several expertise methods to forecast the man power demands and supplies in the future. And then the planners have to take actions to fill the imbalances in the areas that were assessed.

2.3 Compare the recruitment and selection process in two organisations

The two companies taken for evaluation are TESCO UK and ASDA. And their recruitment and selection process is briefly stated below. The steps involved in this process of TESCO are,

• Identify Vacancy
• Develop Position Description
• Develop Recruitment Plan
• Select Search Committee
• Implement Recruitment Plan
• Review Applicants Short List
• Conduct Interviews
• Select Hire
• Finalize Recruitment

Shown below is a sample advertisement of Tesco.

                                    Figure: sample advertisement of Tesco

                                    Source : Case 2- Recruitment and Selection at Tesco

The process of recruitment and selection in Tesco is as below,

Figure : Recruitment and selection in Tesco

Source : Case 2- Recruitment and Selection at Tesco

According to Case 2- Recruitment and Selection at Tesco After all the applications are received or the deadline for applications is met the candidates who are short listed will be called for interviews. In those interviews, recruitment team will select the best person from all the applicants and hire.

Once that decision is made, the applicant will be notified that they have been selected and will be given all the appointment letters to start their employment. After that the decision will be reviewed depending on the feedback which the recruitment team will receive and will be used to make the future recruitments better.

The other organisation I have selected, ASDA, uses pretty much the same recruitment method with few differences.

Figure : Recruitment and selection in ASDA

Source : Case 1- Recruitment and Selection ASDA

The differences are that ASDA offers a four week induction period for the newly selected employees. And the other difference is that they do not send out emails to the candidate who gets eliminated in the screening process.

2.4 Evaluate the effectiveness of the recruitment and selection techniques in two organisations

According to Raymond,A. (2004), When it comes to the effectiveness of the process, the process which was more close to the ideal process shall be the one which is more effective. So in the first steps of identifying vacancies the small company has a benefit as it does have many employees and therefore the forecasting of Human resource needs can be easily done and accurate.

But in the process of making job description and job specification the larger company which has more employees and experts can perform more and be more accurate.

And also in the sections of selecting recruitment methods, the larger company as more options as internal and external while the small company will have to stick to external recruitment as the number of employees is very low.

However we can say that the recruitment process in the larger company will be more effective and accurate over the small company we talked about as they have the privilege to do an ideal recruitment.

3.1 Assess the link between motivational theory and reward

According to BPP Learning Media (2010), “Motivation is the process by which the behaviour of an individual is influenced by others, through their power to offer or withhold satisfaction of the individual’s needs and goals”. According to that definition, motivation can be defined as a process of influencing the people in and to achieve the goals and objectives of the .

And the other factor, reward, is something that employees may receive depending on their performance. Reward can be a financial incentive, or that can be non financial as well. Non financial rewards are promotions, recognition, achievement and praise.

According to Learning Media (2010), There are several theories about motivation invented by Human resource experts.

 In Herzberg’s theory he mentions that there two factors that motivates people. Those are hygiene factors and motivation factors. The motivations include recognition, working environment, working conditions, challenging work etc. hygiene factors are the ones that de-motivates people such as pay and compensation.

According to Maslow’s motivational theory there are levels of motivation that people need in their lives.

Figure : Maslow’s Hierarchy of needs

Source : www.google.com/images

According to Dale M (2004), Managers, who follow the Maslow’s theory, try to make their subordinates motivated by giving them more attractive work, more opportunities for self actualization.

Moreover we can say that there’s a direct link between reward and motivation. Basically the more rewards and employee gets, the more motivated he will be. Therefore rewarding system is a good way to make the employees motivated which will at the end help the to achieve its goals.

3.2 Evaluate the process of job evaluation and other factors determining pay

According to Armstrong, (2006), “Job evaluation is a systematic process for defining the relative worth or size of jobs within an organisation in order to create internal relativities.” In simple language job evaluation includes gathering all the information related to a specific job position, analyzing them and recording the information for future references.

The main advantage or the objective of the job evaluation is to determine the pay structures or salary scales.

Figure : Job evaluation Methods

Source : www.google.com/images

As shown above there are many ways and methods to evaluate the jobs. However it is done, the final outcome of the job evaluation will be to make decision on fair salary payments, improve the job design, redesign the jobs, changes in duties and responsibilities of the person who carries out the job. 

As Dale M (2004), mentiones, other factors that determine pay can be vary from one to another. The pay is a compensation for work, and that can be influenced by various factors and it creates some difference between the roles and the organisations. Those factors can be stated as below,

1.      Size of the organisation,

2.      Seniority,

3.      Skills and experience,

4.      Industry sector,

5.      Profitability of the organisation,

6.      Employee performance

3.3 Assess the effectiveness of reward systems in different contexts

Bratton and Gold (2003) define a reward system as “The mix of extrinsic and intrinsic rewards provided by the employer. It also consists of the integrated policies, processes, practices and administrative procedures for implementing the system within the framework of the human resources (HR) strategy and the total organisational system”.

There are basically two types of rewards. Those are,

·         Extrinsic rewards

·         Intrinsic rewards

Extrinsic rewards are the financial intensives the employees are given for their performance. Those are,

·         Bonuses

·         Salary increments

·         Gifts

·         Commissions

·         Target bonuses

Intrinsic rewards are the non financial rewards given to employees for their performance. Those are,

·         Good feedback

·         Praise

·         Recognition

·         Promotions

·         Seniority

·         Trust

·         More responsibilities

·         Authority

As per Raymond (2004), reward systems are implemented as a very positive strategy of motivation. Rewards has to given for not only performance, but attendance, loyalty, quality of work, group work, confidence, and leadership. When the employees are rewarded they become motivated and they will try to make their performance even better. And when the employees receive the deserved recognition and reward, it will help the to retain the employees in the rewards will also help to reduce the labour turnover in and also, the salary increments can be the most important reward an employee may receive for his performance. When they are treated fairly and in a justifiable way, they will not have any disputes with the management and will try to improve their performance to get better rewards in the future.

3.4 Examine the methods organisations use to monitor employee performance

According to Price (2000), monitoring and evaluating the performance is vital part in rewarding and recognizing high performing employees. Since the performance and reward is directly linked, the monitoring of performance has to not bias and has to be accurate. Organisations use different protocols to monitor the performances of their employees. Those can be stated as,

·         Self-Evaluation

Self evaluation is when the employee is asked to evaluate his own performance in pre defined categories. The employee is given a form to fill, most of multiple choice questions, which will help the management to understand the knowledge level of the employee and the quality standards. In this if the management can identify the training needs of the employee; the management will take actions to arrange training session to fulfill their training needs. In this method the employee has to honest about his knowledge in order for the final outcome to be accurate.

·         360 degree Evaluation

Figure : 360 degree performance evaluation

Source : www.google.com/images

As shown in the graph, 360 degree performance monitoring involves for parties apart of the employee. Those are the direct reports, peers, customers and his subordinates/ superiors. They will be asked to monitor and give feedback on the employee’s performance. This method is the most widely used method to monitor the performance of employees. This method will be more accurate as there will be 4 parties evaluating one person. Therefore the probability of getting false information is less. This can be considered as the best performance monitoring method.

·         Checklists

In this method, a manager or the person who is appointed to evaluate the employee will get a form with checklists and will tick them according to the performance of the employee. This method can be very fast as it will be just a form with questions and the manager who knows well about the employee can fill the form quickly. Shown below is an example for a checklist form,

Figure : Checklist form

Source : www.google.com/images

4.1 Identify the reasons for cessation of employment with an organisation.

Cessation of employment can be simply defined as either the employee leaving the organisation for his personal reasons or the organisation terminating the employment for any reason.

When it comes to employees willing resigning from work, the reason, most of the time if de-motivation. Heathfield (2010), who is an HR expert, mentions 10 reasons why people leave companies. Those are,

1.      Relationship with boss

2.      Bored and unchallenged by the work itself

3.      Relationships with co-workers

4.      Opportunities to use skills and abilities

5.      Contribution of work to the ’s business goals

6.      Autonomy and independence

7.      Meaningfulness of job

8.      ’s financial stability

9.      Overall corporate culture

10.  Management’s recognition of employee job performance

And there are the reasons for the company to terminate the employees from their work. Heathfield (2010), presents top five reasons why the people are being terminated in s. Those are,

1.      An employee lacks integrity and you have caught him or her in repeated lies or underhanded actions.

2.      The employee can’t do the job.

3.      The employee demonstrates that he/she doesn’t fit the company’s culture

4.      The employee fails to keep commitments. 

5.      The employee behaves unethically and ignores the company code of conduct.

4.2 Describe the employment exit procedures used by two Organisations

According to the hand book “Exit procedure” published in NHS Shetland website (2014), exit procedure in NHS Shetland involves 4 steps. Those are,

·         Processing resignation

·         Exit interviews

·         Reference requests

·         Review

As per the regulations mentioned in “Exit Procedure” by NHS Shetland, Once a resignation is submitted, the HR department will process it and will confirm the last working day to the employee. And his line managers will also be notified and if there is any unfinished work to be done, the line manager will be taking responsibility of them to allocate them to another person.

Then there will an exit interview to inquire why the employee has decided to leave and the information will be used to improve the organisation if there’s anything that needs change.

Liner managers will provide personal reference to the employees if they wish to get reference from the company when they are applying for new positions.

And finally the managers and the HR department will review the policy of exit and will make any changes if they identify any needs.

And the other company, Pizza hut, uses a very simple exit procedure. The employee has to give 2 weeks’ notice to the line manager. The manager will try to identify the reasons of the resignation and will try to retain the employee by making a positive idea.

4.3 Consider the impact of the legal and regulatory framework on employment cessation arrangements

According to UK Government Legislation (2014), cessation of employment is directly impacted by laws and regulatory frameworks in the UK. The job security is assured by the laws. This means that no employee will be terminated from employment without any fair reason. If anything like that happens the employee has the right to take legal actions against the employer.

And the other is that, any kinds of discriminations regarding the gender, race, nationality or ethnic are prohibited inside the company. No employee can be dismissed or terminated owing to his gender, race, ethnicity, nationality or colour.

And also no employees can be terminated owing to any physical conditions like being disabled or pregnant or any kind of those.

There are laws and acts for the company to support and pay pension to the employees when the employees are retired.

Conclusion

The core processes of Human resource management have been taken in to consideration and have been evaluated. The difference between personnel management and human resource management, human resource management’s contribution to organisational goals, responsibilities of Human resource departments in organisations have been mentioned with examples. And also, the motivational theories and its applications, employee performance evaluation and exit procedures of different organisations have also been compared and contrasted. And the legal framework in UK and how it affects organizations in different scenarios has been discussed. After all the facts that has been considered, it vividly depicts that the Human Resource management is a vital part/ process in any organisation for it’s growth and success.

References

Armstrong, M. (2003), A handbook of human resource management practice,9th ed.         USA:Kogan Page Publishers. p361-365

Banfield, P (2008), Introduction to Human Resource Management, Oxford: University      Press.p83-84

Dale M (2004), Manager's guide to recruitment and selection, 2nd ed, USA: Kogan Page   Publishers. p1-2.

NHS Shetland, (2013), The Exit procedure, (Online), Available from:            http://www.shb.scot.nhs.uk/board/policies/hr-ExitProcedure.pdf [Accessed on       9/5/2014]

Gunnigle, P (2006), Human Resource Management in Ireland, 3rd ed, Cork: Gillmacmilian.          p109.

Mathis, R L., and Jackson, J H. (2005) Human Resource Management, Thomson   South-Western, (2005)

Price, A (2000), Principles of human resource management: an active learning approach.  London, Wiley-Blackwell, p152

Raymond,A. (2004), Fundamentals of human resource management. London: McGraw-Hill,        p72-75.

Recruitment in Tesco, (2014), (Online), Available from: www.tesco-careers.com/home/recruitment,   [Accessed on 9/5/2014]

Simon, D. Cambridge University, (2007), the legal framework of employment relations, Centre for Business Research, University of Cambridge

Torrington, D (2008), Human Resource Management, 7th ed. London: Pearson Education.           p178.

Tyson, S (2006), Essentials of HRM. 4th e,. London, Elsevier. p97-98.

UK Government Legislation (2014), (Online), Available from: www.legislation.gov.uk, (Online), [Accessed on 9/5/2014]

           

www.asda.jobs/,(2014), (Online), Available from: http://www.asda.jobs/[Accessed on 9/5/2014]