Human Resource Management
A layman’s description of HRM can be said to be the art of managing people in an organization. Just like any other asset in an organization, human being in any organization needs to be managed if the said organization has to achieve its objectives. A growing awareness of the strategic importance of HRM to organizations and, the threat of competition, and the awakening that organizations entirely depend on people, has led to new emphasis on the concerns of people management.
The idea of viewing human beings as valuable assets in the organization is based upon the economists’ views which were developed by the early theories of Human Relations School of organizational behavior.. The right HRM systems should be in place for negotiations between employees and workers to be superfluous.
The Human Resource Management (HRM) function includes variety of activities and the key among them is deciding what staffing needs you have and whether to use in 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 From these views, it is evident that, there is no organization that is innocent of Human Resource Management. Tesco UK will be used in this paper to analyse the major HRM systems and their validity in organisations.
Tesco is an organization that dominates the market space in United Kingdom. It is one of the major income earners in the world. Tesco has widely grown since its establishment in the late 1920. As an organization this organization has enjoyed expansion of services to all types of consumers. It has a good coo prate culture and smart social responsibility to the surrounding environment. Tesco specializes in groceries as the major product, and also succeeded in forming a business coalition with ESSO a major petroleum producing company in the UK.
Tesco as an organization has employees who constitute its internal organization and therefore as it had been stated earlier, these employees are valuable assets in this organization and they need to be managed. Every organization has to recruit, select and appraise the performance of its employees. Compensation and training systems should be available. Recruitment and selection refers to the process of finding candidates who may be suitable for the job that ma have been advertised by an organization. The suitable candidates for a particular job can be done by assessing their skills.
Recruitment process is normally accompanied by follow-up process. The candidates to be recruited must also have job experience according to set standards o the organization. Some countries have recruitment centers where the recruitment process is done. Recruitment and selection process should be aimed at obtaining quality employees required to satisfy the human resource needs in the organization at a reasonable cost. There are three stages involved in the recruitment and selection process. These are defining requirements, candidates and selecting candidates
The main selection methods that many organizations employ can be interviews, which can be done either face to face, through phones, tests and assignment centers. In the UK graphology is used. This refers method where by the social structure of an individual is analyzed through his/her own writing. Recruitment and selection processes that an organization involves itself in are very significant because these processes can make or “break” it in terms of achieving its objectives. There is thus a need to emphasize on these two processes because they entail the biggest challenges facing the personnel managers in the recent times.
Selection follows the recruitment process and it may be defined as the event and procedures by which assessment of the applicants is made, taking of decisions and the offering the employment. Before recruitment is done, a vacancy has to exist in the organization. This is then followed by planning process and deciding the recruitment methods to be employed. Job analysis is also a crucial practice in the recruitment process. Job analysis is determining the nature of the job as far as the skills, knowledge, the power to take responsibilities and general potential to take responsibilities and general potential of the worker concerned.
Information obtained from job analysis should be recorded in the form of job specification and job description. A consideration on the labor market should also be considered before the recruitment methods mentioned earlier and advertisement construction are done. The diagram below shows a breakdown of the recruitment process. The method of recruitment and selection varies from one country to another. In the UK for instance where Tesco is based, has laws that prohibit organizations from discriminating women, physically challenged people and marginalizing some regions as far as recruitment and selection process is concerned.
The major UK acts are: the equal Pay Act, 1970; the sex discrimination Act, 1975, the Employment Protection (Consolidation) Act, 1978; and the Social Security Act, 1989. It is therefore an offence to practice discrimination in the recruitment and selection process. Tesco UK adheres to all these acts in its selection and recruitment process. Tesco recruits employees whenever there is a vacancy in all its disciplines, which includes site managers, planners, project managers, estimators and all Director level positions.
The vacancies are always advertised in their website, on notices etc. This due to its rapid expansion and growing need from its environments to pursue career from the organization. Their recruitment process is always innocent of discriminations of all types. Performance appraisal can be seen as the formal performance whereby individuals in an organization are rated in the meetings, which may be held yearly. This practice concentrates much on what might have gone wrong in the past. The organization rates the employers to see whether the set goals and objectives have been achieved.
The organization’s strategies and human resource management are inter-twined by performance appraisal. The performance appraisal was seen to have many problems and this performance management was preferred, which seem as being wider and a continuous process and which focuses on the future development rather than the past. Though performance appraisal contributes, a lot to the career development of the individuals, its schemes have been seen to be isolated in existence and therefore having no connection with the needs of the organization.
Managing performance, which is stronger than management appraisal coaches, guides, rewards and motivates employees and therefore improving the performance of the said business. Performance appraisal is also linked with rewards employed by many organizations, employees have not been taking it kindly. It has also been associated with lack of accuracy since managers may rate some employees as being above average and others below average depending on the relationship they have. Line managers need to be very careful when setting the methods of appraisal to be employed in their business.
Some of these criteria’s may be based on personal qualification of the individual response to change, etc. However, there have been advancements on performance appraisal and the emphasis has shifted to facilitating improvement in performance and training and development needs. Performance management and performance appraisal are thus necessary in an organization and Tesco UK is not an exceptional. Appraisal is done depending on the set standards of the business. Basing argument on the growth of Tesco, this concept has been well responded to that is performance appraisal has been embraced by most of the employees in this business.
Compensation is one of the ways in which most employees in a business can be motivated depending on whether it is proportional to the labor he/she provides in the business. A competent and qualified staff is the pride of every organization and should therefore be embraced and maintained. “This can be achieved by giving money and goods and services of different kinds”. Compensation can either be direct or indirect. Direct compensation is what an employee is rewarded depending on the work done while indirect compensation is what an employee is entitled to by a virtue of being an employee of a particular organization.
Most organizations have reward management departments, which are concerned formulating and implementing strategies and policies with an aim of rewarding employees fairly. The use of benefits varies from one country to another as well. The UK for instance, being a developed country, has high provision of benefits to its employees. They also have better pension schemes, which are in four levels namely; state schemes company pension schemes, industry pension scheme, industry-wide schemes, and individual’s schemes.
These schemes are made to motivate the employees and maintain them in their places of work. The UK system has also sick pays and cars, profit sharing among others. These compensation schemes adopted by UK are rarely found in developing countries and this explains the slow industrial growth in these countries. With the high demands for development worldwide, the employers need to increase rewarding schemes to their employees if they are to retain them and increasing their output. Some theories have been put forward that can be adopted in organizations.
The Maslow theories and Hezberg’s theories explains the reactions of employees to reward systems and they therefore help an organization to know the kind of theory to adopt, depending on the goals and objectives and the individuals/employees of the organization. If an organization has good rewarding systems in its business, it creates an attractive cooperate image and a better organizational culture both to the internal and external environment. However, the basic question is which employee should receive how much. This calls for a need to have a pay processes shown below
Figure 2 Process Used to Establish Base Wages and Salary Structures in an Organization Job evaluation determines the monetary value of several jobs in the organization. Whenever job evaluation is done, some employees many receive more money than what they have been receiving while others may receive less. Money as a form of compensation motivates and demonstrates employees. Tesco thus has high compensatory systems to its employees. This has been motivating its employees and this can be said to be the reason why Tesco UK has been named to be one of the high income Earners in the UK.
With the dynamics of the global market, organizations need to be more flexible and innovative to match the demands of the market world. Training systems in an organization are meant to improve the performance of the employees and to improve their skills and knowledge. This can be done by establishing learning departments and knowledge management in the organizations. Employees also need to keep on adjusting to the changes through training and this makes them to be attractive to their employers. Training is thus aimed to promote employee and hence organizational development.
The main challenge in this in this process is to match the organization’s strategic plans and achieving the set goals and objectives and at the same time meeting the employees needs. The other challenge is creating a learning-friendly internal environment; whereby all the people in the organization can participate in the practice to create a pleasant cooperate image. Training can also be said to mean getting smart in the business world because it updates the employees and directors. It empowers them and equips them with knowledge and skills.
Training is also related to compensation because it motivates the employees; it is an effective input that produces high and attractive output. Training is also a development strategy to the employees. Spending money to train employees can make. Training also leads to great cooperate development and it is the only best way an organization can be able to handle growth in the business world and it also reduces cases of injuries in the organization since it creates knowledge and knowledge is power. Tesco advanced training methods to its employees and this has resulted to high performance by the employees.