Running head: ROLE OF HRM

Understanding the role of HRM in an Organisation

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Role of HRM 2

Table of Contents

1. Introduction........................................................................................................................4

2. Task 01 - 2.1 To understand the difference between HRM and personal management....4

2.1 Understanding the difference between HRM and PM................................................4

2.2 To assess the HRM functions......................................................................................5

2.3 To evaluate the line managers responsibilities in HRM..............................................6

2.4 To analyze the impact of regulatory and legal framework..........................................6

3. Task 02 – To understand how employees are recruited.....................................................7

3.1 To analyze the reasons for HRM at Harrods...............................................................7

3.2 To outline the stages which Harrods may adapt while planning HR recruitment.......7

3.3 To compare the selection and recruitment procedure with other organizations..........8

3.4 To evaluate the efficiency of recruitment and selection procedures...........................8

4. Task 03 – To understand how employees are rewarded....................................................9

4.1 To assess the connection between motivation theory & the reward...........................9

4.2 To evaluate the procedure of job evaluation and various factors................................9

4.3 To assess the reward system’s effectiveness.............................................................10

4.4 To monitor the performance of Harrods’s employees...............................................10

5. Task 04 – To know the mechanisms of employment cessation.......................................11

5.1 To identify the reason behind cessation of employment...........................................11

5.2 Employment exit procedures.....................................................................................11

5.3 To consider the regulatory and legal framework on cessation of employment arrangements........................................................................................................................12

6. References........................................................................................................................13

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1. Introduction

In this competitive business era, the role of Human Resource Management (HRM) is

very essential for any kind of organization. Human resource management day by day is

turning out to be as an integral part of the studies. Human resource management means that it

is a procedure of developing, selecting and recruiting individuals at work. HRM can be can

be differentiated from personnel management (PM) in some main activities of

managers(Townley, 2014, p.92).Human resource management greatly pays attention towards

the purposes of organization.

Some of the common role of HRM that is very essential for any organization such as,

motivation. Employee benefits, labor collective bargaining and relation, performance

management system, employee development, training and recruitment etc. at present.

Strategic implication of HRM environment is a typical concern for every kind of

organizations(Huselid, 1995, p.669). For practices of HRM there is an ethical and legal

perspective which is important and should be followed by supervisor of an organization.

HRM significantly benefits the organization and we have considered Harrods which is an

amazing example for this assignment.

2. Task 01 - 2.1 To understand the difference between HRM and personal

management

2.1 Understanding the difference between HRM and PM

HRM is mainly concerned with employees or people working in an organization.

HRM can be seen in two ways, first staff of HRM in any organization is those who support

functions and their commitment towards assisting the worker or line managers who are

involved in production or other activities in an organization(Bartol & Srivastava 2002, p.68).

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Secondly HRM’s role is to evaluate the job of managers and if one manager is failed

performing the activity they can hire another one who may perform it better.

On other side personnel management which refers as the discipline or system of

growing and hiring employees. It also includes incentives, compensation, salaries,

determining wages, recruitment, planning personnel needs and job analysis. (Gruman & Saks,

2011, p. 132). Difference between human resource management and personnel management

is comprehensively found in some factors such as types of decision making, operation

running in an organization, employee motivation, involvement, employee turnover rate,

workers thinking regarding their career for long term in future. It can be seen that personnel

management (PM) is a part of HRM.

The company like Harrods has many employees. Harrods needs to categorize their employee

in various sections in order to perform the different responsibilities. Harrods management is

much concerned towards employee controlling, reputation, turnover and motivation. Their

management is categorized by line manager, staff manager, middle level manager, top level

manager etc. Harrods has fair and specific corporate governance which managers the entire

activities running in an organization(Babu & Kumar, 2015, p.120).

2.2 To assess the HRM functions

In every organization, there are few functions which address the organizational

purpose. Since HRM is essential and vital issue in any organization which performs functions

like training and development, employee performance and recruitment and selection. The

functions of HRM in Harrods play very essential role(Guest, 1987, p. 518). Harrods has very

specific and fair policy of employee recruitment; they always prefer quality in spite of

quantity as well as they try to select the talent, smart and skilled employees with no

discrimination at all. Such policy of recruitment in Harrods guarantees productive position in

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today’s market. Harrods also has expert trainers who provide learning session and effective

training.

2.3 To evaluate the line managers responsibilities in HRM

In today’s market Harrods lucrative position and reputation is only possible because

of specific and strong management system. The remarkable factor behind this

accomplishment is responsibilities and roles of line managers. Harrods line managers always

oversee their subordinates properly(Townley, 2014, p.92). They are very responsible when it

comes to help other and to solve their problems in day to day operation of subordinates.In

Harrods culture, there is a solid relationship between the subordinates and line managers.

This relationship always helps the workers to consider as their own company. Also, Harrods

presently at this level is due to this relationship(Kovach, 1987, p.60).

2.4 To analyze the impact of regulatory and legal framework

In 21st century, organizational activities are governed by an effective and specific

institutional regulatory framework. Such framework influence entire activities of an

organization. And, HRM is one of the main issues which influence the regulatory framework.

Harrods is very sensitive and serious regarding discrimination in HRM practice which mostly

concerns the legal and ethical perspective of regulatory framework. Also, Harrods HR

department is influenced by regulatory and legal framework with respect to labor dispute,

employee work environment, compensation, labor rights and organizational attitude towards

the workers etc(Tohidi, 2011, p.1143). The HR department also focuses on the equal

opportunity of employees. So the positive impact of regulatory framework always tries to

accomplish the best productivity by their dedication to satisfy the regulations and rules of

ethics and laws.

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3. Task 02 – To understand how employees are recruited

3.1 To analyze the reasons for HRM at Harrods

It has been said that, "the right planning is large portion of done". Planning of HR

refers the determination and processes the needs of human resource in an organization.

Planning is mandatory for every kind of organization. With no proper planning, there will be

no activity perfectly performed in many cases(Purce, 2014, p.67).As HRM is an important

component for an organization and similarly significance of planning for HR is also very

important.

Some of the important reasons for human resource planning in Harrods are discussed

here. Firstly Harrods attempt to make the connection between strategy of organization and

human resource planning. Harrods also need to plan for evaluating current human resource,

and to define demand for labor, foreseeing the future supply of labor, searching or

discovering the required workers, supply for labor and matching the demand.Planning for

human resource helps Harrods to deal with the human resource more efficiently and

effectively(Kovach, 1987, p.60).

3.2 To outline the stages which Harrods may adapt while planning HR recruitment

For HR recruitment in an organization there are few standard stages which can be

adopted. Such stages are mostly common for large and medium size of

organizations.However for availing or achieving the competitive advantaged with respect to

“human resource” nowadays numerous organizations are practicing in those stages in distinct

ways.Harrods is famous and very well-known brand in this world of business in terms of the

goodwill of selection process of employee as well as in employer relationship. But Harrods

need to adopt some of the recruitment stages more efficiently and effectively(Gruman &Saks,

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2011, p. 132).Harrods two main stages of employee recruitment are meeting the organization

and recruiting sources. At first Harrods is always trying to keep up the recruiting sources

throughemployee referrals, recommendations and internal source, external findings with

employee agency, advertisement, unsolicited applicants, colleges, school and university. And

secondly meeting the organization involves viva voice, some final remark and resumes

collection and at last the recruitment is happened(Purce, 2014, p.67).

3.3 To compare the selection and recruitment procedure with other organizations

Recruitment and selection procedure is the main issue of HRM. The ultimate

achievement or failure greatly relies on recruitment & selection procedure in any

organization. This process of recruitment and selection varies country to country and

organization to organization. Few distinctions are seen between Harrods andSalisbury, M&S

and John Lewis. From the Harrods background it has been realized that Harrods follows the

fair procedure while recruiting and selecting the employees(Guest, 1987, p. 518). Corporate

administrations are completely following this. Next to that it attempts to select the dynamic,

brilliant and communicative individuals. Their procedure begins with advertisement and

finishes with demo or practical session. The critical contrasts are analyzed between Harrods

and other three organizations mentioned above with respect to their internal selection and

recruiting individual for final process of selection.

3.4 To evaluate the efficiency of recruitment and selection procedures

If we evaluate the efficiency of recruitment and selection processes we can analyze

that by comparing Harrods with other three organizations, Harrods recruitment and selection

technique if exceptionally effective contrasted with others. Harrods follow the techniques

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which selects the required and suitable employees.But for three organizations, their internal

selection techniques result in below performance level.

Harrods never lean toward nepotism which guarantees the efficiency and effectiveness with

regards to the organizational performance. However, there are few issues that Harrods is

facing in this time, as it has been observed that viva and test methods are not always working

well(Becker & Gerhart, 1996, p.780).

4. Task 03 – To understand how employees are rewarded

4.1 To assess the connection between motivation theory & the reward

Typically there is a solid relationship between motivation and the reward system.

Motivation is originated from numerous ways and one of them is proper reward system.This

case study has analyzed that the employees intrinsic need results in strong motivation. The

intrinsic needs basically are the individual needs(Tohidi, 2011, p.1143).Generally human

beings, have various psychological needs which include the need that employees can feel that

they can do something great, the need of being a part of the team, the need for encouragement

and respect others.All these needs may originate from certain issue such as performing

variety of tasks, decision making, promotion and contribution towards team etc(Dohmen &

Falk, 2011, p.566). Harrods is an organization which has the strong commitment in order to

meet these needs through involvement of employees while making decision, employee

engagement, job rotationwhich always makesa strong connection between employer and

employee.

4.2 To evaluate the procedure of job evaluation and various factors

There is this close relationship between payment and job performance. But over the

world the payment strategy varies country to country and organization to organization. In few

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organizations job evaluation or performance is the only criteria which determine the

payment.However, in large size organizations different components with job performance are

considered as an essential issue that identified the compensation or payment

methods(Dohmen & Falk, 2011, p.566).

In Harrods, this has been analyzed that there are three process of job evaluation which

are, ordering process also called as ranking method and it is consisted by both employee

representatives and management and arranging job roles from the highest to the lowest

orders(Kovach, 1987, p.60).

4.3 To assess the reward system’s effectiveness

As indicated by the experts of HRM, four kinds of reward systems have been analyzed which

organization are practicing. Consecutively they are intrinsic reward versus extrinsic reward,

non-financial versus financial reward system, issues in work place: job performance and

enrichment reward system based versus membership reward system(Tohidi, 2011, p.1143).

The goal and motive of every organization is different. Therefore one reward system can be

effective for only one organization.

Harrods reward system can be analyzed that they are following intrinsic reward system,

which is effective for the organization. The employees working in this organization are very

satisfied with this reward system(Becker & Gerhart, 1996, p.780). Features or characteristics

of intrinsic system are quite useful for their workers as this kind of reward system involves

participating in making decision, highly freedom in job, more responsibility and various

activities, personal growth opportunities and more interesting work. All these features are

useful to retain and motivate the workers of an organization.

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4.4 To monitor the performance of Harrods’s employees

When we attempt to look at the techniques embraced by Harrods to screen worker's

performance few questions might be useful to analyze it. The questions are (1) is the methods

or systems are performed well? (2) Is there any more effective productive techniques than the

previous one? (3) How really is functioning well? From the practical scenario we can get all

the desired answers and we should look are the Harrods approach towards it. We have seen

that Harrods is extremely eager to connect with its workers in making decision to job

enrichment and so on(Huselid, 1995, p.669). The Harrods purpose is being accomplished by

adopting that strategy. Presently we think if the Harrods take other methods to screen or

monitor their workers then what could be the genuine situation? The answer could be

extremely skeptical. Therefore it can be seen that the system which Harrods follow is

working to support for it.

5. Task 04 – To know the mechanisms of employment cessation

5.1 To identify the reason behind cessation of employment

As it was mentioned earlier there are various reasons behind employment cessation

such as labor dispute, unfair treatment with employees, terminating the business operation

and reducing the labor costs (Townley, 2014, p.92).In Harrods case, this was analyzed that

employment cessation rate is very low. In maximum case Harrods employment cessation was

occurred for highest absenteeism and fraud of employees. Other than that the employment

cessation was observed in the organization because of bad performance when dealings with

customer and badly maintained the relationship with the customers.

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5.2 Employment exit procedures

The next step in employment cessation is the exit procedure.The exit procedure of employees

must be specific and very fair and their rights must be clearly ensures by organizations. As

per the labor laws the organization should guarantee the fair treatment of exit procedure with

employees(Dohmen & Falk, 2011, p.566).As compared to other organizations, Harrods

employment exit procedure is exemplary. They first formally inform their employees about

their cessation after that they give time to their employees to place their argument against the

cessation. If the employee couldn’t place the argument in the favor, the organization will

formally ask him for the final step. Then Harrods complete all the procedures or requirements

payable to their employees(Huselid, 1995, p.669). After that the cessation card is posted in

the given address of employee.

Talking about the comparison, we consider the Wall-Mart example. As many retail business

doesn’t fit with the process that Harrods follow. Wall-Marts exit process varies from Harrods

in small ranges.

5.3 To consider the regulatory and legal framework on cessation of employment

arrangements

At the time of employment cessation maintaining the regulatory and legal framework

is very important for organization in this business world. Every organization must need to

follow the conditions of exit procedures and cessation of employment(Purce, 2014, p.67).If

we consider in Harrods cessation procedures of employments, it matches every requirement

of the legal issues. Harrods has never violated any conditions or terms got from legal

systems. Harrods has also never skipped any provision and articled of labor rights and labor

laws with regards to the procedures of cessation.

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ReferencesBabu, B. S. S., & Kumar, P. A. (2015). HUMAN RESOURCE MANAGEMENT: THE

CHAMPION OF MANAGEMENT. Editorial Board, 4(4), 120.

Bartol, K. M., & Srivastava, A. (2002). Encouraging knowledge sharing: The role of organizational reward systems. Journal of Leadership & Organizational Studies, 9(1), 64-76.

Becker, B., & Gerhart, B. (1996). The impact of human resource management on organizational performance: Progress and prospects. Academy of management journal, 39(4), 779-801.

Dohmen, T., & Falk, A. (2011). Performance pay and multidimensional sorting: Productivity, preferences, and gender. The American Economic Review, 556-590.

Gruman, J. A., & Saks, A. M. (2011). Performance management and employee engagement. Human Resource Management Review, 21(2), 123-136.

Guest, D. E. (1987). Human resource management and industrial relations [1].Journal of management Studies, 24(5), 503-521.

Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of management journal, 38(3), 635-672.

Kovach, K. A. (1987). What motivates employees? Workers and supervisors give different answers. Business Horizons, 30(5), 58-65.

Purce, J. (2014). The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.

Tohidi, H. (2011). Teamwork productivity & effectiveness in an organization base on rewards, leadership, training, goals, wage, size, motivation, measurement and information technology. Procedia Computer Science, 3, 1137-1146.

Townley, B. (2014). Selection and appraisal: reconstituting. New Perspectives on Human Resource Management (Routledge Revivals), 92.