Human Resource Management

Human Resour
Prepared
Edexcel n
Lecturer
Unit code
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I, Dashny Sarvaloganayagan affirm that, the attached work is entirely my own, except where the other
words
or ideas
Human Resource Management
Individual Assignment
of other writers are specifically acknowledged through the use of inverted commas and in text
references. This assignment has not been submitted by any other students at American college of
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Acknowledgment
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I would like to express my deep sense of gratitude to all those who helped me directly and indirectly
in completing this HR assignment for I have completed my project effectively and moreover, on time.
I would like to express my special thanks of gratitude to my Lecture of Mr. Amila Bandara. He gave
me moral support and guided me in different matters regarding the topic. He has been very kind and
helpful, whilst suggesting to me the outlines of this project, and correcting my doubts. I thank him for
his overall support. I would like to thank my college to give me golden opportunity to do this
wonderful project on the topic Human Resource Management and I came to know about so many new
things.
Thanking you.
Dashny Sarvaloganayagan.
Introduction
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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 of managing people within
an organisation was called as Personnel management and it was just a traditional method of
controlling people. With the time it has been changed to Human Resource management which
is more flexible and more organized as well. As HRM has shown its effect on organisational
goals and development and also employee controlling, it has now become a vital part in every
organisation.
Contents
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1.1
Distinguish between personnel management and human resource

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

organisational purposes.
1.3
Evaluate the role and responsibilities of line managers in human resource

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

resource management.
2.1
Analyse the reasons for human resource planning in organisations.
2.2
Outline the stages involved in planning human resource requirements
2.3
Compare the recruitment and selection process in two organisations
2.4
Evaluate the effectiveness of the recruitment and selection techniques in two

organisations.
3.1
Assess the link between motivational theory and reward
3.2
Evaluate the process of job evaluation and other factors determining pay
3.3
Assess the effectiveness of reward systems in different contexts
3.4
Examine the methods organisations use to monitor employee performance
4.1
Identify the reasons for cessation of employment with an organisation.
4.2
Describe the employment exit procedures used by two Organisations.
4.3
Consider the impact of the legal and regulatory framework on employment

Cessation arrangements
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1.1
Distinguish between personnel management and human resource

management.
What is Human Resource Management?

Human resource management is an important department in an organization & It is the
process of proper and maximise utilisation of available limited skilled workforce in order to
achieve the goals of the organization.
There are two types of Human related Managements that can be seen in an organization.
Personnel Management
Distinguish between Personnel management and Human Resource Management
Personnel Management
Traditional approach of managing

people
Assume people as an input to
achieve desired output
Focuses on personnel
administration, welfare and labour
relation
Job design is based on division of

labour
Employees are provided less
training
External controls
Low trust
Low flexible
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Modern approach of managing

people
Assume people as an important &
valuable resource to achieve
desired output
Focuses on acquisition,
development, motivation and
maintenance of human resource
management
Job design is based on group/ team
work
Employees are provided more
training
Self-controls
High trust
High flexible
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1.2
Assess the function of the human resource management in

contributing to organisational purposes.
Functions of Human resource Management

The functions of HR management may be classified into two categories:
Managerial Functions
Operational Functions
Managerial Functions:
The following are the managerial functions.
Planning:
A Human resource manager plans in advance future demand of the employee, the
trend in wages, labour market, union demands etc. Through planning, most of the
future problems can be anticipated.
Organising:
The Human resource manager has to design the structure of relationships, classes,
departments among jobs, employees and physical factors so that the objectives of the
organization can be achieved.
Directing:
The Human resource manager directs and motivates the employees of his department
so that they work willingly and effectively to achieve the organisational goals
Controlling:
A human resource manager has to constantly watch whether there is any deviation
from the planned path. Continuous monitoring of the personnel policies relating to
training, labour turnover, wage payments, interviewing new and separated employees
etc., is the backbone of controlling.
If deviations are unavoidable, corrective action can be planned in advance.
Controlling helps the personnel manager to evaluate the performance of employees of
the personnel department so far as the operating functions are concerned.
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Operational Functions:
The operational functions of the Personnel Management include.
Procurement function:
It includes:
Recruitment: Attracting/tapping the right person to the right place at the right
time from Internal or External side.
Getting information regarding prevailing wage rates and job requirements.
Selecting the best candidate by following a systematic selection procedure.
Maintaining the records of employees.
Job induction & Job Orientation: Introducing the new employee to the officers
of the other departments and make them work willingly.
Training & Development

The training of the new employees and also to the existing employees is the crucial
function of Personnel Department. The training & development programmes increase
the skills and abilities of the employees.
Promotion, transfer and termination function
The performance of the employees is evaluated for the purpose of taking decisions
concerning the employment, exit procedures are done by Personnel Management.
Compensation function
The employees should get adequate and equitable remuneration for the work being
done by them.
Welfare function
These activities relate to physical and social well-being of the employees
Collective bargaining function
To assist in the negotiations which are held with the union leaders?
To know the grievances of employees and following their problems
properly.
Miscellaneous function
To advise the line managers regarding administration of personnel
policies.
To secure co-ordination of all personnel activities.
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To have an effective communication system.

To provide good working conditions.
Function of HRM in vehicle manufacturing industry
Recruitment When recruiting the employee we should select the right person, for
right work, at right time. This should be done effectively when recruiting, HR should
see what kind of qualification and skills they have, according to that they should be
appointed for the particular job. This can be done internally or externally.
Selection - This is also another important function of HR. They have to select the
right candidate for the available vacancy. In the first step they will take deep notice of
the candidates CVs, from that they will choose the right person from the interview in
that they keep variety of tests including IQ, EQ, written, practical, attitude,
personality & medical Tests for candidates to test their knowledge and skills & etc
according to the available position. From that there will be final interview in that they
select the most eligible candidate for the job.
Training & Development- This function should be applied for new and current
working employees to enhance their knowledge and skills. Then they will work more
proficiently. Basically training programs are given to operational level employees
whereas development programs are given to top/ strategic level managers.
Performance appraisal- This is only done by HRs they are the people who see for
employees motivation. When a particular job or a task is done or if they have done an
establishment in the productivity or in their profits they should be motivated by this
function.
Compensation- When an employee is injured or met an accident they will be
compensated only by HR departments,
Employee separation- Each organization must have comprehensive separation policies
and procedures to treat the departing employees equitably and ensure smooth
transition for them. This functions are mostly used by Toyota. What they do is, when
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an employee is met a big injury like losing his leg, he want be sent off from the work,
what they do is they will give another opportunity which his able to do.
1.3
Evaluate the role and responsibilities of line managers in human

Role and responsibility of Line Managers

According to (McDonald, 2013), the responsibilities of line managers can be listed as below,
Employee engagement
Performance appraisal
Disciplining Employees
Performance related pay
According to Slayor Academy (2010), in vehicle manufacturing industry they also have main
role to play, some of the role they have to play is Employee engagement. 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. Line managers who
care about employees and react positively on their performances and focus on their
employees strengths and they give freedom of speech and will get more encouraged and
motivated employees.
When talking about Performance Appraisal are architected 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.
Disciplining is the behavior expected from an employee inside the organization. The expected
behavior is informed to the employees in expressed and implied terms and the behavior is
monitored by line managers. If there has been any breach of the expressed or implied terms in
discipline, the line managers will take actions to correct them.
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. These are the some main roles that line mangers play in vehicle industry.
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1.4
Analyse the impact of the legal and regulatory framework on human

Legal and regulatory framework

Wages act of payment 1936- here they divide the payment method according to the
classes employees belongs
Bonus act of payment 1965- when an employee establish his goals, profits or
achievements his entitled to get bonus in end of month
Equal remuneration 1976- both male and female employees should be paid same
payment if they are doing the same task in industry
The factories act 1948- this will give a clear idea what are the rights of employees
have in an organization
Employee state insurance act 1948- both managers and employees will share a
amount to cover the insurance that if anything happens when working.
Payment of gratuity- this comes to play when an employee works more than 5years
then he has the right to has the gratuity.
Workmen compensation 1923- this a financial protection for the employees when an
accident happens when working then the organization has to pay him an amount until
he get well
Employment rights act 1996- when a threat or illegal happens for an employee he
have the right to ask the mangers.
Sex Discrimination Act and Race Relations Act - 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.
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2.1
Analyse the reasons for human resource planning in organisations.
Human resource planning

According to Price, A (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.
Human resource planning is a process through which the right candidate for the right job at
the right time is ensured. For an example if there are100 machines and 10 people working on
them, and if the company is going to buy 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.
Human resource planning is important to all kind of industries because it develops the
strategies for matching the size and skills of the workforce organizational needs. Human
resource planning help assist organizations to recruit, retain, and optimize the development of
the personnel needed to meet the business objectives and to response to change in the
external environment. Human Resource Planning involves gathering of information, making
objectives, and making decisions to enable the organization achieve its objectives and goals.
According to Dessler, Gary (2010). Human Resource Management, 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.
There must be proper utilisation of human and non-human resources in the
organisation. Sometimes the organisation may have adequate non-human resources e.g.
machines, materials and money but inadequate human resources as a result, manufacturing
process/production cannot be started. Human resource planning helps to offset uncertainties
and changes as far as possible and enables to ensure availability of human resources of the
right kind, at right time and at right place. It also helps to anticipate shortages and/or
surpluses of manpower in the organisation & it helps in correcting this imbalance before it
become unmanageable and expensive.
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An existing organisation, there is a constant need for right-sizing the organisation. In

the organisation, some posts may fall vacant as a result of retirement, accidents, resignations,
promotions or death of employees. Consequently, there is constant need of replacing people.
Human resource planning estimates future requirements of the organisation and helps to
ensure that human resources of right kind, right number, in right time and right place.
Through human resource planning it is ensured that employees in right number and of right
kind are available when required to meet these needs of the organisation. It provides scope
for advancement and development of employees through training and development etc. Thus,
it helps in meeting the future needs of the organisation of highly skilled employees. It helps
to satisfy the individual needs of the employees for promotions, transfer, salary encashment,
better benefits etc.
Anticipating the cost of human resources e.g. salary and other benefits etc is another
importance of human resource planning. It facilitates the formulation of human resource
budget for various departments/divisions of the organisation. To Check Joblessness, in the
exercise of right-sizing of employees by the organisation, some of the employees may
become surplus. It means their services are no more required in the organisation. It tries to
foresee the need for redundancy. It plans to check job loss or to provide for alternative
employment in consultation with various concerned parties and authorities.
Analysing Organizational Objectives
2.2
Inventory of present Human Resources

Outline the stages involved in planning human resource requirements
Forecasting demand and supply of human resources
Process of human resource planning
Estimating man power gaps

Formulating the final human resource action plan
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Monitoring, control & feedback
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Analysing Organizational Objective is the first step of Human resource planning. The
objective to be achieved in future in various fields such as production, marketing, finance,
expansion and sales gives the idea about the work to be done in the organization. After
analysing organizational objectives HR managers have to consider the Inventory of Present
Human Resources From the updated human resource information storage system, the current
number of employees, their capacity, performance and potential can be analysed. To fill the
various job requirements, the internal sources and external sources can be estimated. Then
they have to Forecast Demand and Supply of Human Resource. The human resources
required at different positions according to their job profile are to be estimated. The available
internal and external sources to fulfil those requirements are also measured. There should be
proper matching of job description and job specification of one particular work, and the profile of the person should be suitable to it.
After this process the HR manager will have the Estimating Manpower Gaps. Comparison of
human resource demand and human resource supply will provide with the surplus or deficit
of human resource. Deficit represents the number of people to be employed, whereas surplus
represents termination. Extensive use of proper training and development programme can be
done to upgrade the skills of employees. The next & very important step of Human resource
planning is Formulating the Human Resource Action Plan. The human resource plan depends
on whether there is deficit or surplus in the organization. Accordingly, the plan may be
finalized either for new recruitment, training, interdepartmental transfer in case of deficit of
termination, or voluntary retirement schemes and redeployment in case of surplus. Then there
should be a implementation of the human resource action plan. Human resources are
allocated according to the requirements, and inventories are updated over a period. The plan
is monitored strictly to identify the deficiencies and remove it. Comparison between the
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human resource plan and its actual implementation is done to ensure the appropriate action
and the availability of the required number of employees for various jobs.
2.3 Compare the recruitment and selection process in two organisations
Nestle
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Nestle UK has been trading as a business since the 1860s. Today, Nestle is the worlds
leading nutrition, health and wellness company. It is a major player within the UK and Irish
food industry, employing over 8,000 people across 23 sites. Nestl produces some of Britains
best loved brands, such as Kit Kat, Smarties, Nescafe, Nido, Maggi, Polo, Smarties, Milo,
Perrier, Friskies, KitKat, and Crunch.Nestle. Nestl has 447 factories, operates in 194
countries, and employs around 333,000 people. Their subsidiary companies; Nestle Waters,
Purina Pet care, Nestle Professional, Nestle Nutrition, Cereal Partners UK and Lactalis
Nestle Chilled Dairy Company Ltd.
Tesco
Tesco PLC is a British multinational grocery and general merchandise retailer in United
Kingdom. It is the third largest retailer in the world measured by profits and second-largest
retailer in the world measured by revenues. It has stores in 12 countries across Asia and
Europe and is the grocery market leader in the UK (where it has a market share of around
30%), Ireland, Hungary, Malaysia, and Thailand. The company has more than 500,000
employees worldwide.
Originally a UK-focused grocery retailer, since the early 1990s Tesco has increasingly
diversified geographically and into areas such as the retailing of books, clothing, electronics,
furniture, toys, petrol and software; financial services; telecoms and internet services.
Recruitment:
The process of attracting a pool of qualified applicants that is

representative of all individuals in the labour market in sufficient
numbers with the right skills and at appropriate times to apply for open
positions within the organization.
Selection:
Selection is the process used to identify and hire individuals or groups

of individuals to fill vacancies within an organization
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In this case, Nestle Company has been using a new radical method of recruitment called
Talent puddles similar to talent pools in order to reduce the common recruiting problems
faced by many organizations. This method of recruiting employees has made Nestle to
identify the required employees for a particular position in the organization this can be called
as talent gaps the function of Talented Puddles. This talent puddle is made inside the
organization, so they dont need to outsource any agencies, when candidates applies for the
job they will record according to their skill, education, and what positions they can work, so
when there is an employee is needed they dont need to open up CVs and select . They can
easily access the talent puddle and check the eligible candidate who is fit enough for the
particular position and he/ she will be hired for the job. This is an advantage for organization
because time and money is saved.
The following int methods are also used in recruitment process in Nestle.
Internal Recruitment
Job Posting
Employee Referrals
External recruitment
Employment Agencies
Promotions
Local Advertising Newspaper, Multi Media
Internships
Executive search firms
Selection After obtaining the applications from the applicants, CVs are collected from the
all applicants. The human resource team will consider their skills, qualifications and other
background details. After considering them the CVs will be sent to the recruitment team of
the organization. And they will conduct the interviews to the applicants in variety of methods.
The interview will be in the any form of these below,
Phone calls
Online conversation (skype)
Face to face
When conducting the interview by the HRM team there will be also tests for the candidates.
They can be in different forms according to available positions,
Written test
Interview
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Talent Planning
Practical test
Aptitude
Intelligent test
Personality
test
Medical test
After
the
selection
process the job offer

will
be
given
by
phone or letter to the

person.
And
the
recruited people will

be appointed to the
particular position and
they will be given job
induction
orientation
&
to
Job
the
Nestles culture.
On the other hand in
Tesco recruitment process, they have been improving there business with large labour
workforce, its calculated that there are 500,000 employees are working worldwide for Tesco.
Tescos recruitment and selection process is different when comparing to Nestle. Tesco
practices what it calls 'talent planning, it means selecting a right employee to right position
and establishing the goals of the organization. They have two types of recruitment Internal
and External. Tesco first they see the internal employees whether anyone available for the
particular position from their Talent Planning. Tesco main aim is to seek employees internally
to fill many vacancies from within the company. It recognizes the importance of motivating
its staff to progress their careers with the company. This encourages people to work their way
through and up the organization. Through an annual appraisal scheme, individuals can apply
for 'bigger' jobs.
The steps involved in this process of TESCO are,
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Identify Vacancy
Develop Position Description
Develop Recruitment Plan
Select Search Committee
Implement Recruitment Plan
Review Applicants Short List
Conduct Interviews
Select Hire
Finalize Recruitment
Employees identify roles in which they would like to develop their careers with Tesco. Their
manager sets out the technical skills, competencies and behaviours necessary for these roles,
what training this will require and how long it will take the person to be ready to do the job.
This helps Tesco to achieve its business objectives and employees to achieve their personal
and career objectives.
If no employees available even after accessing the talent Planning, Tesco will go for external
recruitment,. They will publish the available vacancies in internet, advertisements.
Applications are made online for managerial positions. The chosen applicants have an
interview followed by attendance at an assessment centre for the final stage of the selection
process.
People interested in store-based jobs with Tesco can approach stores with their CV or register
though Job centre Plus. The store prepares a waiting list of people applying in this way and
calls them in as jobs become available.
Tesco as policy when recruiting employees, they want waste their time or money by
advertising in radio or posters. They make job vacancies in their official site, so anyone can
access the job and everything will be detailed there. If anyone interest they can apply for it.
The selection process of Tesco
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Vacancies advertised on Tesco website and other offline media,

Television, Radio, on Google / Magazines
Screening of applicants CVs to find best with Tesco

Successful candidates invited for interview
Successful candidates from Screening attend
assessment candidates
centre
Unsuccessful
sent letter
Successful candidates invited to second interview
Successful candidates sent offer letter and contract
The selection process of Tesco also similar to Nestle, here Tesco see the correct person for the
position available. Screening the applicants is the main thing, because it gives the first
impression of that applicant and this should be done correctly, organization should select the
right person, for right work, at right time.
In the first stage the applicants CVs will be scanned carefully. CV shows the applicants
personal information, background, education, work experience, skills and knowledge. Tesco
will assess whether an applicants job description matches to the job specification. To help the
applicant Tesco also provides a job Type Match on their official website, this tool will help
the applicant to select what job available and select the appropriate vacancy for them.
Once they have selected from first phase, applicant should go for second phase Assessment
Centre. This assessment centre is managed by the Managers at the stores. Applicants are
given various exercises, including team-working activities or problem-solving exercises.
These involve examples of problems they might have to deal with at work. Applicants are
approved by the internal assessment centres then they will have second interview. Line
managers for the job on offer take part in the interview to make sure that the candidate fits the
job requirements.
2.3 Effectiveness of Recruitment and Selection Process in Both Tesco & Nestle
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Talent puddle its a proactive recruitment, that help organizations to select the right applicant
to the organization, leading organization are using this tool to improve the way they identify
and access skilled candidates in the labour market. Nestle has a good way of recruiting of
employees, they have also been using a tool talent Puddle, where they will have handful of
candidates with all the qualification and skills, when a shortages of employees happens, it
makes Nestle to recruit that required employees for that particular position . The effectiveness
in this process is Nestle is not required to outsource agencies to select employees for their
organization, from this tool Nestle find the right person to their workforce and they can full
fill skill shortages in the organization. This Talent Puddle is not easy; candidates have to
compete each other to capture a place in the list. Organizations know how Talent Puddle is
important for every of them. Using Talent puddle Nestle can reduce the cost of recruiting
employees from outside agents and more accurate view of the candidates. There are some
disadvantages too in this talent puddle, sometimes failed candidates become frustrated, they
make a bad impression about the organization. Only limited applicants are selected,
sometimes they miss the skillful applicants. Keeping the skillful, knowledgeable, energetic
candidates have to wait on list until to get a available job position in the organization.
Even in the selection process Nestle they go deeply in search of the candidates. In first phase
they are able to identify the required candidate by analysing his qualification, skills,
background, working experience. By going through this selection process Nestle can easily
find the person they need.
Tesco by using the Talent Planning the effectiveness they can have is, they can have the
right person to right job. Through a proper examination of candidates their skills and strength
are identified. When having a right person to right position they can also increase the
productivity through that employee. Also since there is a better alignment between an
individuals interests and his job profile the job satisfaction is increased. Retaining the top
talents is also an important thing to leadership and growth of the organization. Organization
when they lose their top talents, they are also losing with their competitors, suddenly there
will be downfall of productivity where they gain from top talents. The focus of Tesco is now
on charting employee retention programs and strategies to recruit, develop, retain and engage
quality people. Employee growth in a career has to be taken care of, while succession
planning is being performed those who are on the list need to be kept in loop so that they
know their performance is being rewarded. The quality of an organization is the quality of
workforce it possesses. The best way to have talent at the top is have talent at the bottom. No
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wonder then talent Planning programs and trainings, hiring assessments have become an
integral aspect of HR processes nowadays. It makes Understand the Employees Better,
management get deep insights about their employee after the employee assessments. Their
assessment will initiate their development needs, career aspirations, strengths and
weaknesses, abilities, likes and dislikes. It is easier therefore to determine what motivates
whom and this helps a lot Job enrichment process.
If employees are positive about the talent Planning practices of the organization, they are
more likely to have confidence in the future of their organization. The resultant is a
workforce that is more committed and engaged determined to outperform their competitors
and ensure a leadership position in the market for their organization.
Some weakness also there in this tool Talent Planning. When selecting employees by using
tools like talent planning will de-motivate the employees working in the organization it can
lead to high turnover. Sometimes it can cost high payment for selecting process, induction
orientation cost.
Tesco aims to ensure all roles work together to drive its business objectives. It needs to
ensure it has the right number of people in the right jobs at the right time. To do this, it has a
structured process for recruitment and selection to attract applicants for both managerial and
operational roles.
3.1
Assess the link between motivational theory and reward.
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Motivation
Motivation can be referred simply willingness to work. Motivation is about the ways a
business can encourage staff to give their best. Motivated employees care about the success
of the Organization and work better.
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".
(BPP Learning Media, 2010)
Motivation theories are divided into two different viewpoints.
1. Content - Content theories emphasis what motivations are,
2. Process - Process theories emphasise the real process of motivation.
One of the most important functions of management is to create willingness amongst the
employees to perform in the best of their abilities. Therefore the role of a leader is to enhance
interest in performance of employees in their jobs.
Reward
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. These rewards in
organizations help employees to be more committed and motivated to their job and working
environment:
Managers can motivate staff by paying a fair wage. Payment methods include:
Time rate
: Staffs are paid for the number of hours worked.
Overtime
: Staffs are paid extra for working beyond normal hours.
Piece rate
: Staffs are paid for the number of items produced.
Commission
: Staffs are paid for the number of items they sell.
Performance related pay
: staffs get a bonus for meeting a target set by their manager.
Profit sharing
: Staffs receive a part of any profits made by the business.
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Salary
: Staffs are paid monthly no matter how many hours they
work.
Fringe benefits
: are payments in kind, eg a company car or staff discounts.
Managers can motivate staff using factors other than pay through:
Job rotation
: staff are switched between different tasks to reduce monotony.
Job enlargement
: staff are given more tasks to do of similar difficulty.
Job enrichment
: staff are given more interesting and challenging tasks.
Empowerment
: staff are given the authority to make decisions about how they do
their job.
Putting groups of workers in a team who are responsible together for completing a certain
task
Security of service
Praise or recognition
Suggestion scheme
Job enrichment
Promotion opportunities
For example, a sales department may offer a monthly bonus to the highest earner. Not all tangible
rewards come in the form of money. Some companies host free lunches, or give away company gear
to good workers. Many managers choose to reward their best employees by simply praising them for
a job well done, or by recognizing the hard work they put in to a project.
Reward can be divided in another different Point of view
Positive incentives are those incentives which provide a positive assurance for
fulfilling the needs and wants.
promotion, praise, recognition, perks and allowances, etc.
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Negative incentives are those whose purpose is to correct the mistakes or defaults of
employees.
demotion, transfer, fines, penalties.Motivational theories
There are several theories about motivation invented by Human resource experts.
According to Maslows motivational theory there are levels of motivation that people need in
their lives. Staff first want to meet their survival needs by earning a good wage. Safety needs
such as job security then become important, followed by social, self-esteem and selffulfilment needs. Moving staff up a Maslow level is motivational. Managers who follow the
Maslows theory, try to make their subordinates motivated by giving them more attractive
work, more opportunities for self actualization.
Self-actualisation
Esteem needs
Social needs
Security needs
Physiological Needs
Physiological needs
- These are the basic needs of an individual which includes
food, clothing, shelter, air, water, etc. These needs relate to the survival and
maintenance of human life.
Safety needs
- These needs are also important for human beings. Everybody
wants job security, protection against danger, safety of property, etc.
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Social needs
- These needs emerge from society. Man is a social animal.
These needs become important. For example- love, affection, belongingness,

friendship, conversation, etc.
Esteem needs
- These needs relate to desire for self-respect, recognition and
respect from others.
Self-actualization needs- These are the needs of the highest order and these needs are
found in those person whose previous four needs are satisfied. This will include need
for social service, meditation.
In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the

motivator-hygiene theory.
According to Herzberg, there are some job factors that result in satisfaction while there are
other job factors that prevent dissatisfaction. In Herzbergs 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 Herzberg, the opposite of Satisfaction is No satisfaction and the opposite of
Dissatisfaction
is
No
Dissatisfaction.
FIGURE: Herzbergs view of satisfaction and dissatisfaction
MOTIVATION
Satisfaction
No Satisfaction
HYGIENEE FACTORS
No Dissatisfaction
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Dissatisfaction
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In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of human
behaviour at work, or in other words, two different views of individuals (employees): one of which is
negative, called as Theory X and the other is positive, so called as Theory Y. According to McGregor,
the perception of managers on the nature of individuals is based on various assumptions.
Assumptions of Theory X
An average employee intrinsically does not like work and tries to escape it whenever possible.
Since the employee does not want to work, he must be persuaded, compelled, or warned with
punishment so as to achieve organizational goals. A close supervision is required on part of
managers. The managers adopt a more dictatorial style.
Many employees rank job security on top, and they have little or no aspiration/ ambition.
Employees generally dislike responsibilities.
Employees resist change.
An average employee needs formal direction.
Assumptions of Theory Y
Employees can perceive their job as relaxing and normal. They exercise their physical and
mental efforts in an inherent manner in their jobs.
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Employees may not require only threat, external control and coercion to work, but they can
use self-direction and self-control if they are dedicated and sincere to achieve the
organizational objectives.
If the job is rewarding and satisfying, then it will result in employees loyalty and
commitment to organization.
An average employee can learn to admit and recognize the responsibility. In fact, he can even
learn to obtain responsibility.
The employees have skills and capabilities. Their logical capabilities should be fully utilized.
In other words, the creativity, resourcefulness and innovative potentiality of the employees
can be utilized to solve organizational problems.
3.2
Evaluate the process of job evaluation and other factors determined

pay
What is Job Evaluation?

"Job evaluation is a systematic process for defining the relative worth or size of jobs within
an organisation in order to establish internal relativities. It provides the basis for designing an
equitable grade and pay structure, grading jobs in the structure and managing job and pay
relativities.
"(Armstrong, 2006)
Job evaluation is really an extensive process and it must follow in an orderly approach. At the
start of this process management must make clear to its staff the reason of this job evaluation
and importance of it. To determine the pay grade and exemption status for a job, Job
evaluations will determine the salary grade of a job and may occur at any time during the
year.
Type of Evaluation
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Creation of a New Job
Additional Job Responsibilities
Temporary or Interim Duties
After that a team has been set where all the informed HR specialists and workers
are included. In the next step organisation selects the job from each department that they
are going to evaluate, then the chosen job is investigated in detail by the team. Next, the
HR selects a method for the job evaluation. There are two methods that can be followed
to evaluate a job and these are: "Analytical - points rating, factor comparison, proprietary
brands; and Non-analytical - job ranking, job classification, paired comparisons".
Job Evaluati
Non-Analytical Methods
Ranking Methods Classification Metho
Methods designed on the basis Methods

of the jobs
as
desig
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, and redesign the jobs, changes in duties and responsibilities of the person who carries
out the job.
The other factors determining pay:
The pay, which is an award for work, can be influenced by various factors and it creates some
difference between the roles and the organisations.
Those factors are:
Size of the organisation,
Seniority,
Skills and experience,
Industry sector,
Profitability of the organisation,
Employee performance.
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Job Analysis and Job Description - Using a "job profile," the content of each job is analyzed
to identify key duties, responsibilities, and qualification necessary to perform the job. Written
job descriptions are then prepared to contain this information.
The job evaluation process
Job analysis describes a job. Job evaluation develops a plan for comparing jobs in terms of
those things the organization considers important determinants of job worth. This process
involves a number of steps
Job Analysis. The first step is a study of the jobs in the organization. Through job
analysis, information on job content is obtained, together with an appreciation of
worker requirements for successful performance of the job. This information is
recorded in the precise, consistent language of a job description.
Compensable Factors. The next step is deciding what the organization "is paying for"
that is, what factor or factors place one job at a higher level in the job hierarchy than
another. These compensable factors are the yardsticks used to determine the relative
position of jobs. In a sense, choosing compensable factors is the heart of job
evaluation. Not only do these factors place jobs in the organization's job hierarchy, but
they also serve to inform job incumbents which contributions are rewarded.
Developing the Method. The third step in job evaluation is to select a method of
appraising the organization's jobs according to the factor chosen. The method should
permit consistent placement of the organization's jobs containing more of the factors
higher in the job hierarchy, than those jobs lower in the hierarchy.
Job Structure. The fourth step is comparing jobs to develop a job structure. This
involves choosing and assigning decision makers, reaching and recording decisions,
and setting up the job hierarchy.
Wage Structure. The final step is pricing the job structure to arrive at a wage structure.
Job Description is a broad and written statement of a specific job in the organisation, based
on the findings of a the job analysis. Job description usually forms the basis of job
specification.
It is a list of job duties, responsibilities,reporting, relationships, working conditions
and supervisory responsibilities ---- Gary Dessler
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Job Specifications;
the qualities required by people applying for the job.
Job specification is a statement of employee characteristics and qualifications required for
satisfactory performance of defined duties and tasks comprising a specific job or function.
Job specification is derived from job analysis.
Job specification as a statement of minimum qualification that person must posses to
perform a given job successfully --- Stephen. P . Robbins & Marry Coutler
Job Description
Job Title
Location
Job Summary
Duties
Machine tools etc
Material etc
Supervision
Working conditions
hazards
3.3
Job Specification
Education
Experience
Training
Initiative
Physical effort
Responsibilities
Communication skills
Emotional characteristics
Unusual sensory sight etc
The effectiveness of reward systems in different contexts
"Reward system is 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".
Bratton and Gold (2003)
There are two types of rewards:
Extrinsic rewards
Tangible rewards that employee
receives for their good
performance, such as bonuses,
salary raise, gifts, promotion,
compensation and commissions.
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Intrinsic rewards
They are inclined to give personal
satisfaction to an employee, such as
information, feedback, recognition,
trust and relationship.
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Employee bonus systems are positive strategies and they can provide actual motivation.
Moreover to monetary thoughts; bonus systems take into account factors such as attendance,
customer service, quality, group and individual performance. Also bonuses increase
employees' motivation and output. It improves employees' morale and increases their selfesteem. However, a carefully planned bonus scheme can improve retention which helps to
preserve the best employees. 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.
Salary raise is the other types of reward system and it is one of the most significant
motivators for the employee, also it is the key motivation behind an employee's performance.
Staffs are given more interesting and challenging tasks in Job enrichment system. This can be
done by increasing his responsibilities, giving him an important designation, increasing the
content and nature of the work. This way efficient worker can get challenging jobs in which
they can prove their worth. Sometimes praise & recognition becomes more effective than any
other incentive. The organization should look forward to taking suggestions and inviting
suggestion schemes from the subordinates. This ultimately helps in growing a concern and
adapting new methods of operations. In Job rotation method staffs are switched between
different tasks to reduce monotony, In Job enlargement staffs are given more tasks to do of
similar difficulty, In Empowerment staffs are given the authority to make decisions about
how they do their job, putting groups of workers in a team who are responsible together for
completing a certain task. From these kind of methods employees may be more motivated.
Providing employee Security of service also can be a motivation method. If his job is
secured, he will put maximum efforts to achieve the objectives of the enterprise. This also
helps since he is very far off from mental tension and he can give his best to the enterprise.
Promotion is Promotion is an effective tool to increase the spirit to work in a concern, where
an organisation rewards an employee by moving them from their position to a higher
position. Promotion improves employee's morale and job satisfaction.
However, improved performance is an effectiveness of reward system; it helps the employee
to perform better at work in order to get extra reward from the organisation. At the same time
employees also work hard and put their skills and understanding which assist them to gain
knowledge and learn something new.
Reward system also boosts profit, where a company has good chance to make return because
member of staff works honestly and carefully. It also helps to bring positive psychological
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contract between employees and the organisation; it creates a better working environment and
helps organisation to keep gifted, potential employees with them.
3.4
Examine the methods organisations use to monitor employee
Performance Appraisal refers to all those procedures that are used by an organization to
performance
evaluate the employees
Personality
Performance
Potential of its group members
A good performance appraisal system can greatly benefit an organization. It helps direct
employee behaviour toward organizational goals by letting employees know what is expected
from them, and it yields information for making employment decisions, such as those
regarding pay raises, promotions, and discharges.
Following are the tools used by the organizations for Performance Appraisals of their
employees.
Rating scale
Self-evaluation
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Essay evaluation
Paired Comparison
Forced Distribution
Confidential Report
Critical Incident
Psychological appraisals
Behaviourally anchored rating scale
Ranking
Assessment Centre
360Feedback method
Forced Choice Method
Management by Objective
Field Review Technique
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 fulfil their training needs. In this method the employee has to honest about
his knowledge in order for the final outcome to be accurate.
In the ranking system it requires the rater to rank his subordinates on overall
performance. This consists in simply putting a man in a rank order. Under this
method, the ranking of an employee in a work group is done against that of another
employee. The relative position of each employee is tested in terms of his numerical
rank. It may also be done by ranking a person on his job performance against another
member of the competitive group. Employees are ranked according to their
performance levels. It is easier to rank the best and the worst employee. The whole
man is compared with another whole man in this method. In practice, it is very
difficult to compare individuals possessing various individual traits. This method
speaks only of the position where an employee stands in his group. It does not test
anything about how much better or how much worse an employee is when compared
to another employee. When a large number of employees are working, ranking of
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individuals become a difficult issue. There is no systematic procedure for ranking

individuals in the organization. The ranking system does not eliminate the possibility
of snap judgements.
Forced Distribution method is a ranking technique where raters are required to
allocate a certain percentage of rates to certain categories (eg: superior, above
average, average) or percentiles (eg: top 10 percent, bottom 20 percent etc). Both the
number of categories and percentage of employees to be allotted to each category are
a function of performance appraisal design and format. The workers of outstanding
merit may be placed at top 10 percent of the scale; the rest may be placed as 20 %
good, 40 % outstanding, 20 % fair and 10 % fair. This method tends to eliminate
raters bias. By forcing the distribution according to pre-determined percentages, the
problem of making use of different raters with different scales is avoided. The
limitation of using this method in salary administration, however, is that it may lead
low morale, low productivity and high absenteeism. Employees who feel that they are
productive, but find themselves in lower grade (than expected) feel frustrated and
exhibit over a period of time reluctance to work.
Under the Critical Incident techniques method, the manager prepares lists of
statements of very effective and ineffective behaviour of an employee. These critical
incidents or events represent the outstanding or poor behaviour of employees or the
job. The manager maintains logs of each employee, whereby he periodically records
critical incidents of the workers behaviour. At the end of the rating period, these
recorded critical incidents are used in the evaluation of the workers performance.
This method provides an objective basis for conducting a thorough discussion of an
employees performance. This method avoids recency bias (most recent incidents are
too much emphasized) Negative incidents may be more noticeable than positive
incidents. The supervisors have a tendency to unload a series of complaints about the
incidents during an annual performance review sessions. It results in very close
supervision which may not be liked by an employee. The recording of incidents may
be a chore for the manager concerned, who may be too busy or may forget to do it.
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Self-Assessment
Checklists and Weighted Checklists - In this system, a large number of statements that
olleagues Peers
describe a specific job are given. Each statement has a weight or scale value attached
to it. While rating an employee the supervisor checks all those statements that most
closely describe the behaviour of the individual under assessment. The rating sheet is
then scored by averaging the weights of all the statements checked by the rater. A
Customers
Suppliers
checklist is constructed for each
job by having
persons who are quite familiar with the
jobs. These statements are then categorized by the judges and weights are assigned to
the statements in accordance with the value attached by the judges. It is the most
frequently used
method
in evaluation of the employees performance. This method is
Direct
Reports
Superior
very expensive and time consuming. Rater may be biased in distinguishing the
positive and negative questions. It becomes difficult for the manager to assemble,
analyse and weigh a number of statements about the employees characteristics,
contributions and behaviours.
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 employees 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
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probability of getting false information is less. This can be considered as the best
performance monitoring method
4.1
Identify the reasons for cessation of employment with an

organization.
What is Cessation of employment?

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.
' Separation is a negative recruitment. It may be In the form of resignation, dismissal
or discharge, suspension, retrenchment or lay-off."
- Yoder
Cessation is classified in two forms:

Voluntary
Involuntary
Initiated for various reasons by the
Initiated for various reasons by the
employee( these are often employee
organization ( these are usually
who the organization would prefer to
involving employees who would prefer
remain within the organization)
to remain within the organization)

organization)
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Employee separation is a sensitive issue for any organization. Usually, an employee leaves
the organization after several years of service. Thus, the permanent separation of employees
from an organization requires discretion, empathy and a great deal of planning.
Each organization must have comprehensive separation policies and procedures to treat the
departing employees equitably and ensure smooth transition for them. Further, each employee
can provide a wealth of information to the organization at the time of separation.
When it comes to employees willing resigning from work, the reason, most of the
time if de-motivation. Relationship with boss, Bored and unchallenged by the work itself,
Relationships with co-workers can be the reasons for voluntary separation. Another important
for leaving job is Retirement.
Expiration of an employment contract or as part of decreasing of the workforce. To
seek better positions, responsibilities and status outside the present organization, employees
leaving their present organization. Efficient employees would seek to expand their knowledge
and skills continuously by working in different capacities/positions in various organizations.
Relocation for family reasons like marriage of the employees and health crisis of family
members, maternity and child-rearing. For instance, when working women get married, they
often prefer to settle in the partners place of occupation. Similarly, an employee may seek
voluntary separation to look after the child or parent.
An involuntary separation is caused by the factors which remain beyond the purview
of the employees. However, these factors may be classified broadly into health problems,
behavioural problems and organizational problems. Major health problems crippling the
employees may make them invalid or unfit to continue in the profession. For instance,
accidents causing permanent disabilities and illness of the employees like brain stroke and
other terminal illnesses can lead to their involuntary separation. Death of employees is
another factor which results in their involuntary separation.
When employees are hired to work for a company, they are given a job description
that outlines the duties they're expected to fulfil. When employees fall short in achieving their
goals, managers are faced with deciding whether or not an employee's performance warrants
his termination. Poor performance can include everything from not hitting target sales goals
and overlooking project details to not missing deadlines. Employees may also be terminated
because they lack the knowledge and skills needed to fulfil assigned tasks. Employees are
expected to maintain a level of respect for the company they work for, their employer, fellow
employees, vendors and clients. Behaviours such as using profanity when speaking to
customers, stealing from the company, defaming the company, visiting prohibited websites in
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the office and even drug and alcohol abuse are negative behaviours that may result in an
employee being fired.
While employers understand that employees may need to take occasional time off for
sickness, deaths in their families, vacation and even personal days, employees who are
consistently absent from work may be subject to termination. Frequent absenteeism and
lateness can have a negative impact on productivity, profits and company morale. Employees
who frequently come to their workplaces late, or leave the office before their assigned shift is
up, may also be subject to termination depending on their companies' work schedules. An
employee's objectionable and unruly behaviour within the organization may also lead to his
involuntary separation from the organization. Consistent failure to reach performance goals
by an employee can also result in his involuntary separation.
Organizational problems are another important factor that contributes to the
involuntary separation of employees. If profits are down, or small businesses lack funding
from investors, small business owners may be unable to afford keeping their full staffs. As a
result, they begin terminating employees to maximize their budgets. Termination decisions
may be based on how essential an employee's position is to a company.
4.2
Describe the employment exit procedures used by two Organisations.
Employment exit procedures

Exit procedure in involves 4 steps. Those are,
Processing resignation
Exit interviews
Reference requests
Review
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 theres 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.
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And finally the managers and the HR department will review the policy of exit and will make
any changes if they identify any needs.
Classified employees, both temporary and regular, should submit a letter of resignation.
Classified employees should give no less than two weeks notice and vacation time should
not be requested during this time if they wish to resign in good standing. Classified
employees who are retiring must formally announce their intention to retire in the applicable
manner described above. All terminating employees will be asked to complete an Exiting
Employee Information Questionnaire. A personal exit interview with the Senior Advisor for
Performance and Talent Management may also be requested.
Disposition of the final pay will be deposited to the direct deposit accounts(s) on
record and will take place on the employees next regularly scheduled pay date including
unused vacation, up to the maximum of 360 hours. Arrangements for initiation of retirement
benefits, if any, will be handled by the Benefits Department. Student employees are
encouraged to submit a letter of resignation to their immediate supervisor at least two weeks
prior to their last working day.
4.3
Consider the impact of the legal and regulatory framework on

employment cessation
arrangements
Framework at the time of cessation of employment is very essential for corporations of the
business world (Grubb & Wells, 1994). Each and every organization must have to follow the
terms and conditions of cessation and exit procedures of employment. 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.
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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 managements 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, and the legal framework have also
been compared and contrasted. After all the facts that have been considered, it vividly depicts
that the Human Resource management is a vital part in any organisation for its growth and
success.
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References
Text Book
Handouts
Banfield, P (2008), Introduction to Human Resource Management, Oxford:

University
Press.p83-84
Armstrong M (2003), A handbook of human resource management practice, 9th ed.

USA: Kogan Page Publishers. p361-365
http://www.humankinetics.com
http://www.slideshare.net/
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.
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