HRM - BM 60

HUMAN RESOURCE MANAGEMENT
INDIVIDUALASSINGMENT
HUMAN RESOURSE
MANAGEMENT
Compiled by - M.A.M Sadiq

Batch No
- CT/HNDBM/60/02
[DATE]
ICBT
[Company address]
BM/60/02
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INTERNATIONAL COLLEGE OF BUSINESS AND TECHNOLOGY

BTEC HND DIPLOMA IN BUSINESS (MANAGEMENT & HUMAN RESOURCES)
ASSIGNMENT COVER SHEET 2014/2015
UNIT TITLE &

CODE
BM/60/
STUDENT ID
STUDENT NAME
ASSESSOR
4
15
LEVEL
CREDITS
K/601/1264: Human Resources Management
Dulanga Kodituwakku
IV by
Inoka Guarathna
Task 01 2000
Assignment
ASSESSMENT
1 Of 1
1 OF 1
reviewed on
WORD
Task 02
COUNT
Presentation
Task 03 4000
ASSIGNMENT
ASSIGNMENT
00.04.2015
ISSUE DATE
Report
SUBMISSION
ASSIGNMENT
DATE
ASSIGNMENT
DISCUSSION
RESUBMISSION
DATE(s)
FINAL GRADE
DATE
ORIGINAL
RESUBMISSION
SUBMISSION
ASSESSMENT CRITERIA TO BE ASSESSED IN THIS ASSIGNMENT

(Identify all criteria to be assessed in this assignment)
Achieved Pass Criteria
LO1
1.1
1.2
1.3
LO2
1.4
2.1
2.2
2.3
LO4
LO3
2.4
3.1
3.2
3.3
3.4
4.1
4.2
4.3
Original Submission
Resubmission
Grade Achieved
M1
Merit Criteria
M2
M3
D1
Distinction Criteria
D2
D3
Original Submission
On resubmission
AUTHENCITY STATEMENT
I certify that the attached material is my original work. No other persons work or ideas have been used without
acknowledgement. Except where I have clearly stated that I have used some of this material elsewhere, I have not
presented it for examination / assessment in any other course or unit at this or any other institution
This
assessment..
brief has been internally verified for use.
SIGNATURE:
BM/60/02
DATE:..
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Internal Verifier Name &
Signature :
Ms. Inoka Guarathna
Feedback issued to the student

ILO
1.1
Date Verified
Date of Issue:
Description
Comment
Distinguish between personnel management

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

purposes
1.3
1.4
2.1
2.2
2.3
2.4
3.1
3.2
3.3
3.4
4.1
4.2
Evaluate the role and responsibilities of line

managers in human resource management
Analyse the impact of the legal and regulatory
framework on human resource management
Analyse the reasons for human resource
planning in organisations
Outline the stages involved in planning human
resource requirements
Compare the recruitment and selection
process in two organisations
Evaluate the effectiveness of the recruitment
and selection techniques in two organisations
Assess the link between motivational theory
and reward
Evaluate the process of job evaluation and
other factors determining pay
Assess the effectiveness of reward systems in
different contexts
Examine the methods organisations use to

monitor employee performance
Identify the reasons for cessation of
employment with an organisation
Describe the employment exit procedures
used by two organisations framework on
employment cessation arrangements
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Consider the impact of the legal and
4.3
regulatory
Identify and apply strategies where expected

in task. You have to consistently make
M1
effective judgments through an effective

study/research approach with proper
explanations on the study content.
The organisations complex information had
M2
been synthesized and processed in order to

answer to the questions effectively.
A range of methods of presentation has been

used effectively with a good command of
technical language in an accurate way where
M3
communication has taken place in familiar and

unfamiliar contexts.
The given structure to provide answers had
been used.
Generated suitable conclusion for the report
D1
D2
The written answers for all tasks had been
submitted on time by managing substantial
activities in a well-planned and organized
manner.
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Demonstrate convergent, lateral and creative
D3
thinking when finding and presenting

information referring to all parts of the
assignment
Assessors Name
Dulanga Kodituwakku
Signature
Date
Student Feedback Response
I received the feedback and have a thorough understanding on it.
Signature of the Student: .
Date: .
Practices of Human Resource Management

UNIT AIMS & OBJECTIVES
This unit provides an introduction to the concepts and practices of human resource
management within the United Kingdom and focuses on the management of recruitment,
retention and employment cessation.
Learning outcomes:
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1. Understand the difference between Personnel Management and Human Resource

Management
2. Understand how to recruit employees
3. Understand how to Reward Employees in order to motivate and retain them
4. Know the Mechanisms for the Cessation of employment.
This assignment consists of Three Tasks. You are required to answer for all Questions
Task 01 LO 01 (Individual)
You need to prepare a report cover following areas
a) Distinguish between Personnel Management and Human Resource Management
(LO 1.1)
b) Assess the function of the Human Resource Management in contributing to the
organizational purposes
(LO 1.2)
c) Evaluate the role and responsibilities of line managers in Human Resource

Management
( LO 1.3)
Task 02 LO 02 and LO 04 (Class Room Activity - Group)

You need to form a group (04 - 05 members for the group) do a presentation to cover the
following areas. Every team member should evaluate the contribution for each member by
using the attached Evaluation Form.
Presentation Duration : 30 minutes
Suppose you are the HR Manager in a leading Paint company in Sri Lanka. The management
had decided to start a new business in FMCG. In the board meeting the management had
asked you to come out with an effective HR plan in order to start the new business.
You are supposed to do a presentation covering the main areas as follows.
1. Analyze the reasons for human resource planning in organization
(LO 2.1)
2. Outline the stages involved in planning human resource requirements.
(LO 2.2)
3. Compare the recruitment and selection process in two organizations. (FMCG
operates as a subsidiary of the Paint Company. Paint Company works as the mother
company.)
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(LO 2.3)
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4. Evaluate the effectiveness of the recruitment and selection techniques in two

organizations.
(L.O.2.4)
5. Analyze the impact of the legal and regulatory framework on human resource
management to the given scenario.
(L.O1.4)
Parallel to the new business in FMCG the organization started a delivery service. Since it
is not functioning well due to many reasons organization want to exit from that business.
Managing Director gives you the responsibility to you to closure the business.
6. Identify the reasons for cessation of employment with an organization
( L.O.4.1)
7. Describe the employment exit procedures can be used by the organization. (L.O.4.2)
8. Consider the impact of the legal and regulatory framework on employment cessation
arrangements.
(L.O.4.3)
Task 03 LO 03 (Individual Report)

Assume that the new company (FMCG) runs its operation successfully for more than five
years in the local market. Although the company earns profits the production and marketing
managers complain that their employees have become demotivated due to ineffective reward
system. They want you to make a proper reward system.
a) Asses the link between Motivational Theory and Reward (develop a reward system
for a specific Job Title and explain how company can motivate the employee through
the developed system.)
(LO 3.1)
b) Explain to this organization how they can evaluate the process of job evaluation and
other factors determining pay.
(LO 3.2)
c) Asses the effectiveness of Reward System in different context (you need to assess the
effectiveness for both employer and employee perspectives)
(LO 3.3)
d) Examine the methods that organization can use to monitor employee performance
(LO 3.4)
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REVISIONS & THE GRADING GRID
Task
01
02
Pass
LO 01
LO 04
03
LO 02
LO 03
Merit
Distinction
M1
M2
---
---
---
---
M1
M2
M3
D1
D2
D3
The standard assignment (For Task 03) should consist of the following documents
and should be in order:
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1.
Cover Sheet / Title page (if required)
2.
Assignment Brief
3.
Grading Descriptors
4.
Acknowledgement
5.
Executive summary
6.
Table of contents
7.
List of illustrations/diagrams (if applicable)
8.
Introduction
9.
Answers for the given questions (Task 03)
10.
Conclusion
11.
References (follow Harvard referencing style)
12.
Appendixes (number your appendices clearly and neatly. Avoid attaching

excessive and irrelevant documents)
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Group Contribution Form - Task 02 LO 04 (Class Room Activity - Group)

Performance Indicators (Rate with 1 to 10; 1 Way below the standard and 10 Highest Standard
Team Member (Name and the
Registration Number)
Contribution for
Contribution for
Contribution for
Contribution to
Attendance team
LO 4.1
LO 4.2
LO 4.3
prepare the Report
works
Individual Contribution Form - Task 02 LO 04 (Class Room Activity - Group)
Your Name and the Registration

Number
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Performance Indicators (Rate with 1 to 10; 1 Way below the standard and 10 Highest Standard
Contribution for
Contribution for
Contribution for
Contribution to
Attendance for all
LO 4.1
LO 4.2
LO 4.3
prepare the Report
team works
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ACKNOWLEDGEMENT
First and for most I would like to praise almighty Allah for giving me the knowledge and strengths to
complete this report. And special thanks to ICBT City campus for giving me the opportunity to study
at their institute and all the necessary facilities that are being provided for the completion of this
course.
The support given from my family is never forgotten.
However this wouldnt have been a possibility to complete this module without the guidance and help
of the module lecturer MRS Dulanga Kodituwakku.
Furthermore I would like to thank all my friends and classmates who helped and supported me
directly and indirectly.
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Executive Summary
This report discuss about Human resources management within an organization. There have been lots
of discussions about difference between HRM and personnel management. The difference between
HRM and personnel management has been discussed in this report. And how HRM functions helps in
achieving the organizational objectives. Moreover the roles and responsibilities of the line managers
are mentioned within this report. Legal and regulatory frameworks that an HRM department should
follow are also discussed.
HR planning is very important for an organization. HR planning is necessary while starting to recruit.
If starting without any HR planning there would be some positives and negatives of it. Furthermore
the HR planning process has also been discussed in this report.
The methods that organization can monitor employee performance are critical incidents, graphic
rating scale, and behavioral anchored rating scale, management by objectives, ranking and 360
degree.
The reasons for cessation of employment are dismissal, redundancy, retirement and resignation. There
are resignation procedures for employees when leaving or terminating the employee in the
organization.
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Introduction
Human resources management is a very important aspect in an organization. HRM manages the
workforce in an organized way using personal techniques. HRM recruit people according to the
requirements of the organization and train them to do their job in the best possible ways. Moreover
HRM deal with the conflicts that arise at the work place.
The concept of Human Resource Management (HRM) has attracted considerable attention over the
last two decades from scholars and practitioners alike. While some scholars consider HRM to be
another definition of Personnel Management in an organization, some scholars like to argue that there
is more to HRM than merely managing the human resources of the organization. They consider
HRM to have a wider scope which is more business oriented and inter-linked to the overall business
strategy of the organization. However, the general view is that HRM is a qualitative function of any
organization that has an element of emotional involvement in it as well.
It is pertinent to note that HRM as a concept is driven by the western ideology of capitalism and free
market economy, while its concepts are based on individual values of personal growth, development
and freedom.
Human resources management deal with the termination of the employees and their pay structure. In
addition to that HRM decides the reward that is to be given to the employees according to their
contribution to the organization.
Human resource management does the best to keep the employees satisfied by providing different
incentives and recognition of their work. Hence they keep the employees motivated for the benefit of
the organization. If the employees are motivated their work efficiency will be high which leads to
high output.
The most important thing that HRM should be concerned about is the legal framework that involves
in dealing with the employees.
FMCG runs its own operation successfully for more than five years in the local market. The company
earns a good profit but production and marketing managers complained that the their employees have
become demotivated due to ineffective reward system
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Difference between human resource management and personnel management

One way of knowing what is happening around the world is to look at the past events and understand
how the human resource practices are rapidly changing. Every organization in the business
environment is expected to follow and maintain good HR practices that would help the Company to
achieve the set goals and objectives without any hassles. Humans are the vital aspects for any
businesses and it has the capacity and capability to change the company performance in many ways.
Simultaneously understanding the human aspect will give a wide knowledge and the HR functions
must relate to the organizational purposes.
Personal management and human resource management plays a major role in the organization for the
business development. Personal management is part of the management process which emphasize
about people at workplace and their relationship with in the organization. Human Resource
Management (HRM) refers to the policies, practices, and systems that influence employees behavior,
attitudes, and performance. The HRM is responsible for the process, which allows the organization to
stay competitive in the external market and internally efficient.
Personnel management is workforce centered, directed mostly at the organizations employees; such
as training and development, arrangements for effective pay, clearing up managements expectations,
justifying managements actions etc. While on the other hand, HRM is resource centered, in terms of
devolving the responsibility of HRM to line management, management development etc. Personnel
Management is basically an operational function, concerned mainly with carrying out the day-today
people management activities. Whereas, HRM is strategic in nature, and being concerned with
directly supporting an organization to gain sustained competitive advantage.
The human resource management is responsible for many functions in order to accomplish the
organizational goals. Some of the functions are recruitment, training and development, man power
planning, performance evaluation, discipline administration, etc. when the functions are carried out in
a prodigious manner it would help the organization to stay in the business for many years and likewise
to face the competitive challenges.
The reason why man power planning is important is because it gives a certain direction to the work
process of the organization. When there is a plan for a couple of years ahead it is important to identify
what position should be filled and how many employees should be recruited and what skills they
should have. If there isnt sufficient number of supply it is the organizations responsibility to come up
with a plan to produce sufficient employees. They could set up an online campus, contact universities
which has preferred graduates with the preferred skills of the organization in order to recruit them
after they graduate. These kind of strategies will help the organization to find their purpose of
existence.
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These are the Difference between Human Resource Management and Personnel Management.
Personnel Management
Earlier personnel management used to manage
Human Resource Management

However, now human resource management is
the employees in the organization.
using to manage employees and their strengths
Employees welfare, personnel administration
in the organization.
Development, acquisition,
and labor relation in the organization are the
maintenance of the human resources of the
main areas related to personnel management.
organization are the main areas relates to
Employees as an input for achieving their
human resource management.

Employees as an important and valuable
expected output are considered in personnel
resource for achieving their expected output are
management.
The job design is planned on basis of division
considered in human resource management.

The job design function is planned on basis of
of labor in personnel management.
group work/team work in human resource
The employees are expedited with less
management.
The employees are expedited with more
development opportunities and training in
development opportunities and training in
personnel management.
The top level management take their decisions
human resource management.

The top level management take their decisions
according to the rules and regulations of the
collectively
organization in personnel management.
participation,
after
motivation
considering
authority,
and
employees
decentralization,
competitive environment etc in human resource

Only increased production is considered in
management.
The productivity,
personnel management.
employees
culture,
satisfaction
and
effectiveness,
employees
participation is considered in human resource

Personnel manager involved in personnel
management.
All levels of managers from top to bottom are
management.
Personnel management is considered as a
involved in human resource management.

The human resource management is considered
routing function.
as a strategic function.
Table 1: Difference between Human Resource Management and Personnel Management
Function of human resource management

HR can make positive and distinctive contribution to any organization. HR needs to understand the
organization objectives and create a workforce capable of achieving it and encourage them to work
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towards it. For this HR needs to do the human resources planning. This is they will have to forecast
the requirements of the organization identifying whether current employee numbers is enough to
achieve the goals and do they have adequate skills to work. And forecast requirements of labor and
skills and meet them in future. In order to identify the best possible candidates for the job they need to
go through the recruitment process to attract the candidates and choose them. A good workforce will
make works easier and makes it easier for organization to achieve their goals.
Moreover HR needs to manage the performances of the employees. This will help them to understand
the best performing employees and warn or fire the employees who are not working up to standard.
After this HR needs to reward the employees by offering them promotions, cash incentives or nonfinancial rewards. In addition to that HR needs to do is keep the employees satisfied and motivated.
For this its important to identify their career goals and needs within the organization. HR needs to
work upon with them to achieve their career goals by providing time to time trainings which will
make them feel they are important and motivated. Motivation will lead to better work efficiency and
this will lead to success in organizations efforts to achieve the objectives. If this happens opposite, the
employees effort in the work will be low due to lack of motivation.
HR also needs to make a good working environment where they can work comfortably. The
surroundings also affect their working efficiency. Therefore HR should look to avoid conflicts in the
work place. Conflicts can be reduced by implementing effective communication system between
employees. When there is no conflicts, employees can work together to achieve the goals. Or else
employees will try to work for themselves which doesnt help to achieve the organization objectives.
These are the function of the Human Resource Management in contributing to the organizational
purposes
Job design
Job analysis
Human resource planning
Recruitment
Selection
Hiring
Induction
Performance evaluation
Pay management
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Training and development
Employee movement
Safety and health administration
Discipline administration
Grievances handling
Labor relations
Job Design
Job design means describing the tasks, duties and responsibilities of the job.
Job Analysis
Job analysis mean describes about duties, responsibilities and basic qualifications needed for the
person who does the job.
Human Resource Planning
Human resource planning is the process that links human resources needs of the organization to
ensure that staffing is sufficient, qualified and competent enough to achieve the organizational
objectives.
Recruitment
Recruitment is the process to find the people who have qualification and appreciate them to apply the
job vacancies in the organization. It does not mean to select the people to process the vacancies using
attraction. The result of this will create a pool of job candidates according to the human resource
planning. There are two types of recruitment methods. They are internal recruiting methods and
external recruitment methods. The skill inventories, succession plans, job posting, internal statements
and employee referrals are the internal recruiting methods. Job fairs, job advertising, job agencies,
professional online recruiting directories, online career opportunities, e-recruiter software, e-bio data
or CV are the external recruiting methods.
Selection
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Selection is the process to identifying the most suitable people from recruited candidates to fill the job
vacancy. It helps to find the person for the job and to make good relationship with the employers.
Application/ bio data evaluation, tests, interviews, background investigation, medical test, etc are the
methods used to select employees.
Hiring
Hiring means legally appointing people/ person who have selected the job vacancy. After selecting
people/ person hire the job, when an appointment of employee is offer, organization can provide them
a contract basic appointment or probation period appointment. An appointment letter has to be create
in this process. Company can hire employees by internal ways and external ways.
Induction
Induction means introducing the hired new employees to the organization, to their job and the existing
staff. It means this is the program that uses to introduce new employees to the organization and
organizational activities. It helps to guide the new employees to start the job.
Performance evaluation
Performance evaluation is used by the organization to identify whether the employees expected
performance level is good or bad. Administrative purposes and development purposes are the main
purpose of performance evaluation.
Training and Development
Training helps to learn non-managerial employees to how to perform their present job more
efficiently. Development helps to improve Managers knowledge, skills and behavior. Apprentice
training, on the job training, off the job training, simulation and online training, programs are the
ways that use to train employees.
Employee Movement
It means the changes of the employees job or post. This can happen by a promotions, transfers,
terminations, demotions, layoffs, retirements, resignations, dismissals, etc.
Discipline Management
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Employees tasks and attitudes have to control according to the current rules and regulations of the
organization. For this organization needs discipline management system, so human resources manager
have to develop a discipline system, implement and maintain it. It helps to reduce arguments and
misunderstanding of the employees and control human resources systematically.
Pay Management
As externally and internally, human resource manager has to develop a reasonable pay system and
maintain it. It helps to control the employees cost, to give a reasonable payment for the employees and
to motivate employees.
Health and Safety Management
Employee should have a good physical and mental health to do their job efficiently, so human
resource manager has to protect the employees from factors that effect employees health in the
working time.
Grievances Handling
Sometimes employees not satisfy with their job. It can be dissatisfaction of the wages, working hours,
working conditions, etc. These grievances will effect to the employees performance and also it will be
a problem to achieve the goals of the organization. These employee grievances will make base to start
violations. Human Resources Manager have to manage grievances in the beginning.
Welfare Management
Wages, salaries, allowances and all other facilities given by the organization are called welfare
management. Health care facilities, transportation facilities, educational facilities, loan facilities, etc
are the ways use in welfare management. It helps to motivate the employees.
Labour Relation
Labour relation is the relationship between the employer and employees. Mismatch of the employer
and employees goals is the main barrier to a good labour relationship. Employees much concern about
their salaries, not about the profit of the organization. Employers much concern about the profit of the
organization, not about the salary of the employees. Human Resource Manager has to fix this problem
of the both parties.
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Roles and responsibilities of line managers in human resource management

Line managers and employees in human resources management
The development of HRM, the role of line managers and the employees have changes drastically.
Previously, the role of a line manager was limited to controlling the work force in order to ensure that
the targets are met, now the role of a line manager is much broader and includes communication of
objectives, calculated deployment of human resources and evaluation of performance.
Furthermore, it can be stated that the role of the employee has also evolved where they are being
delegated more responsibility. So now, rather than being mere units of resources doing their allocated
work like before, employees are encouraged to be innovative, ambitious and more involved in the
company.
Roles and responsibilities of a human resources manager
Recruiting the new specialized employees to the organization

Train and developing staffs.
Emerging employee programmers.
Managing existing staffs and also planning for further staffing needs.
Managing business activities.
Rewarding employees who perform well in the organization through promotions and salary
increments.
Analyzing the personal files and monitoring the employees performances.
Developing existing employees instead of appointing the external employees for the vacant
positions.
Taking disciplinary actions to the employees who dont follow the rules and regulations of
organization.
Managing the internal customers of the organization
Guidance role of HR management of organization- Recommendations, guiding, specialist in

effective implementation of new rules.
Advisory role of HR management of organization- Offering specialist information to line
managers and individual employees.
Participate in business planning and ensure alignment of HR delivery with business goals at
the site. The HR manager establishes objectives and delivers HR strategy for the attainment
of the compass vision and objectives and in a tactical role is deeply knowledgeable about the
design of work systems in which people succeed and contribute. Supports managers and
teams in business delivery through their capability to deliver the compass objectives, manage
their implement change and build relations with key stakeholders (internal and external). As
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an employer advocate the HR manager plays an internal role in organizational success

through knowledge about and advocacy of people. The HR manager helps establish the
organizational culture and climate in which people have the competency, concern and
commitment to for business success.
Task 3
Motivation and reward theory

Motivation
Link between Abraham Maslows hierarchy of needs theory and
Reward
Diagram 1: Abraham Maslows hierarchy

The Five levels of needs in the hierarchy are:
1. Physiological needs
These are important needs for sustaining the human life. Food, water, warmth, shelter, sleep,
medicine, salary and education are the basic physiological needs which fall in the primary list of need
satisfaction. These are basic need for every employee of the organization. The basic salary of Adidas
store managers average pay is $61781 if in case Adidas plan to increase it by 10% will be the best
way to motivate employee to contribute more towards the Adidas to carry out its business activities in
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a better way and also it will ensure employee loyalty where the employees will continue to work
Adidas.
2. Security or Safety needs
These are the needs to be free of physical danger and of the fear of losing a job, property, food or
shelter. It also includes protection against any emotional harm. These are reasons that provide safety
in the working environment the salary increase give financial security for the employees which mean
the employees will be fear free of receiving a proper pay. This will make sure employee motivation
and will generate less focus for other safety reason since proper salary is being one main safety factor.
3. Social needs
Since people are social beings, they need to belong and be accepted by others. People try to satisfy
their need for affection, acceptance and friendship. These are organizational employee environments.
The 10% increase in salary will create motivate to store manager who will be in contact with positive
response motivated. This will ensure that the organization become popular among other companies
and becomes a more practical workplace to other external parties.
4. Esteem needs
According to Maslow, once people begin to satisfy their need to belong, they tend to want to be held
in esteem both by themselves and by others. These are the factors of prestige. The salary increase of
the store manager will make sure the employees of Adidas to guide a better life by accepting better
life style. The added purchasing power will improve the social class and social status of the
employees.
5. Need for self-actualization
Maslow regards this as the highest need in his hierarchy. This is the extreme stage of motivation
where the motivated party is trying to be creative and innovative. With regards to the increase the
employee of Adidas will put his maximum effort to contribute towards parties who rewarded them
which means they will take out working activities with creative thinking and high commitment.
Reward System for a Marketing Manager Post

An organization can reward the employees with tangible goods or by praise them for their work.
Reward systems include:
Compensation
Benefits
Recognition
Appreciation
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FMCG should create a list of things that they expect from the employees. It may include performance,
new ideas they bring to organization and their relation with clients. Then they should do a survey
within the organization to see the performances of the worker to identify who have exceeded the
expectation and who have not reached their targets and could also have ideas from their co-workers
about their works. After that the organization should consider about the reward that should be given to
those employees. It may include a pay rise, promotions or even certificate of recognition, appreciation
and tangible goods. Moreover FMCG should also provide employees with a good working
environment. In addition to that then FMCG should figure out the ways enrichment programs to the
employees. These enrichment programs will have an effect on the employee lives. One thing that
FMCG should be aware is to not to take the reward system away in order to punish the employees.
FMCG should look to have a good reward system for their employees. They can reward them by
analyzing their performance and behaviors.
The Best for Less Ltd they give rewards to the employees based on the performances. Here they
offer only cash incentives to the employees or promotion. Rewards like recognition and appreciation
are not done in this company. Its true that employees are mostly motivated by money but not all
employees. They sometimes seek for words of encouragement from their managers.
This is the reward system for a Marketing Manager post in Knowledge Ltd.
Direct Pay
Basic salary
Performance or Variable Pay
Paying bonus for the working performance
Payment for the successfulness of the marketing campaigns
Paying bonus for the profitability of marketing firm
Recognition schemes
Non-cash prizes for innovative ideas
Promotions
Indirect Pay
Company car
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Educational programs
Allowances
Holiday entitlements
Healthcare offers
EPF
ETF
Leaves/ maternity/ Paternity leaves
Job Evaluation Process and other factors determining pay

Job evaluation is the process used to determine the pay grade and exemption status for job. It can be
done for either a new job or already existing job. It also ensures pay and benefits to the employees are
worth to the organization and equity and fairness should be there. In an organization evaluations such
as creation of new job, additional responsibilities and duties.
Salaries to the employees in a particular job should be evaluated. In order to evaluate the pay for the
employees, organization should observe the salaries paid in the market place where they hire people
and should look for the similar sort of pay to the similar jobs. Moreover they should evaluate the
salaries to be paid to the employees at the same level in an organization. If not, then the employees
may be less motivated and conflicts may arise which may lead to the employees leaving the
organization. Therefore fairness should be there when pay structure in made for the employees at the
same level. In addition to that they should also consider the qualification and they work they do for
the benefit of the organization. Therefore FMCG should observe internal and external environment
when evaluating the pay for the employees. The salary should match the knowledge required, ability
to make decision making and control invested within the position. Moreover for the best performing
employees, they can offer certain incentives and salary increments to keep them motivate. These
things also should be evaluated when they evaluate the job.
This company is following an outstanding and unique job evaluation process to assess the value of
each and every job within the Company. All the employees are treated equally and the Company
always ensures that the equal pay to get equal wage. This fundamental factor will help organization to
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separate their employees different classification considering their skills and job position. The
Companys job evaluation process is presented below in four stages.
These are the steps of Job Evaluation Process.
Job Analysis
Compensable factors
Evaluate Job
Assign Specific Pay Values

Diagram 3: The steps of Job Evaluation Process
1. Job Analysis
In this step Human Resource Manager should gather information of the job in the organization.
This helps to gather information about the tasks and responsibilities of the job and qualifications
that help to do the job successfully.
2. Compensable factors
In this step, Human Resource Manager should decide the factors, what organization is paying for.
These factors help to identify the relative position of the job. Knowledge skills, judgments,
decision making, freedom to act and responsible for financial resources are the compensable
factors.
3. Evaluate Job
In this step, Human Resource Manager should select a job evaluation method to evaluate jobs
according to the selected factors. Non-analytical schemes and analytical schemes are the types of
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job evaluation methods. Factor comparison and point rating or assessment are the analytical
schemes.
4. Assign Specific Pay Values

In this step Human Resource Manager should compare jobs to develop a job structure and value
jobs according to that job structure.
Other Factors determining Pay
Market Rates
Company have to determine the pure value of jobs to the organization and competitiveness in the
labour market, when they paying for these jobs.
Individual Performance
Company can increase the payments due to seniority, competence and performance levels.
Legal Factors
Company have to concern legal factors, when they make payments to the employees. For an
example, according to equal pay act, women are entitled to claim an equal payment.
Benefits of a Reward System

Benefits of a Reward System to the Organization
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It helps to motivate the employees
Page 26 of 32
It reduces the employee turnover
It helps to make the employees job satisfaction
It helps to increase the loyalty of the employees
It develops employees morale and positive behaviors
It helps in recruiting employees to the organization
It helps to increase the efficiency level of the employees
Benefits of a Reward System to the Employees
It gives values to the employees performance
It helps employees to develop their skills and knowledge by educational programs
Employees can have different allowances
Employees can have recognition schemes and suggestion schemes
It helps to develop employees job career
It helps to fill the needs of each employee
Healthcare offers help employees to have a healthy life
Employees can have good working environment
Methods that Organization can use to monitor Employees Performance

Performance appraisal is the process of monitoring the performance and work of employees and
giving them concretive feedbacks to improve the work and themselves. This will also help them to
overcome any problems they face during the work. There can be many types of methods for
performance appraisal such as:
Critical Incidents
In this method, Manager keeps a written record of positive and negative performance of
employees throughout the performance period. It means Managers provide task to employees and
they keep written record of positive and negative performance of the each employee at the time.
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Graphic Rating Scale
Page 27 of 32
In this method, Manager simply rates the performance level of the employees according to a
scale, such as excellent, good, average, fair and poor. It can be numerical scale.
Behavioral Anchored Rating Scale
In this method, Manager rate employees based on employees behavior and performance.
Managers have to analyze the behavior and performance of the employees after the manager
anchored employees in different slots such as good, average and bad.
Management By Objectives
In this method, Managers and employees set objectives together. Manger evaluates the employees
performance periodically and reward the employees according to the results.
Ranking
In this method Manager evaluate the performance of the employee according to best to worst.
Manager always no needs to rank all employees. There is no actual standard form used for it.
360 Degree
This method evaluate the performance by data collected from all around employee such as
subordinates, supervisors, management, customer and peers.
The line managers in FMCG can use Job results/ outcome as performance appraisal methods. Here the
managers can compare the results employees achieved against the objectives they set prior to the
projects. In some cases if the results are not available or the result is qualitative result then the
managers should evaluate their performances on their behaviors and characteristics.
Another possible method that is possible for the line managers in FMCG is essay methods. This is
where the evaluator writes an appraising report about the employee. This will determine for
justification of pay, promotion or termination based on the performances and behavior of the
employee. However sometimes these essay based evaluation can be bias and unstructured.
Apart from performance following factors are also considered:
Quality and quantity
tardiness
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Creativity
Personal appearance
Cost effectiveness
I suggest this company to follow 360 degree appraisal method, as it is an accurate method to
monitor the employee performance. By using this method this company can improve the
productivity of an employee to gain maximum output to achieve their strategic goals and
objectives.
The benefits that the organization can get by adopting this method are as follows,
1. Perspective and impact: By involving major four people the feedback enables the
employees to gain a thorough understanding of their impact within the organization.
2. Job satisfaction: This can help to gain a thorough understanding of your strengths and
areas for improvement.
3. Focus on customer services: This is designed with customer focus in mind. By
including feedback from both internal and external customers, it highlights the
importance of customer expectations in determining the companys focus.
4. Succession Planning: This help to make a good succession plan.
5. This can used to manage the talents accurately and without any misunderstanding as
well.
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2. Conclusion
In concluding this report all the relevant information about human resources management is
addressed. Some managers dont see that there is difference between HRM and personnel
management. However in this report the differences between human resources management has been
identified and compared. Moreover the importance of human resources management is identified and
how its functions contribute to the organizations objectives and goals. Having an HRM department is
not enough as the line managers in the organization should act to their roles and responsibilities.
Therefore the roles and responsibilities that they should carry out are identified. While dealing with
employees, there should be certain legal and regulatory framework that organization should follow for
the benefit of employee and the organization. The possible acts for the organization have been
suggested in this report.
The importance of HR planning for FMCG has been identified and how an HR planning would help
in recruitment and selection. Analyzing the importance of HR planning, a recruitment and selection
process for the organization has been suggested such as interviews and how effective those can be.
HRM needs to keep the employee motivated in the organization. Therefore the link between reward
system and motivational theory has been identified and a reward system for the organization has been
suggested and analysis of how effective it could be for the organization. Moreover the best possible
ways to monitor the performance is suggested for FMCG.
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References
Bianca, A 2013, 'The Role of Human Resource Management in Organizations, Hearst

Communications, Accessed 06th July 2015, Source: from http://http://smallbusiness.chron.com/rolehuman-resource-management-organizations-21077.html
'Job Evaluation Process', Western Reserve University, 2015, Accessed: 07th
July 2015, Source:
from: http://http://www.case.edu/finadmin/humres/compensation/spprocess.html
Job
evaluation',
WebFinance,
2015,
Accessed:
07th
July
2015,
Source:
from:
Source:
from:
http://http://www.businessdictionary.com/definition/job-evaluation.html
'Maslow',
Business
Case
Studies,
2015,
Accessed:
10th
July
2015,
http://http://businesscasestudies.co.uk/tesco/motivational-theory-in-practice-at-tesco/maslow-andherzberg.html#axzz2huLNf3E9
Scott, B 1998, ARMSTRONGS HANDBOOK OF HUMAN RESOURCE MANAGEMENT

PRACTICE, 11th ed., London and Philadelphia,. p 486
Differences between Human Resource Management and personal Management

Accessed
10th
July
2015,
Source:
from:
http://www.case.edu/finadmin/humres/compensation/spprocess.html.
University of Petra. (2015) Handbook of human resource management. Accessed : 10th

July
2015
from:https://www.uop.edu.jo/Repository/39/Handbook%20of%20Human
%20Resource%20Management%.
BM/60/02
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HUMAN RESOURCE MANAGEMENT

Compiled by - M.A.M Sadiq

HUMAN RESOURCE MANAGEMENT

INTERNATIONAL COLLEGE OF BUSINESS AND TECHNOLOGY

UNIT TITLE &

K/601/1264: Human Resources Management

ASSESSMENT CRITERIA TO BE ASSESSED IN THIS ASSIGNMENT

Achieved Pass Criteria

HUMAN RESOURCE MANAGEMENT

Ms. Inoka Guarathna

Feedback issued to the student

Distinguish between personnel management

management in contributing to organisational

Evaluate the role and responsibilities of line

Examine the methods organisations use to

HUMAN RESOURCE MANAGEMENT

Consider the impact of the legal and

Identify and apply strategies where expected

effective judgments through an effective

The organisations complex information had

been synthesized and processed in order to

A range of methods of presentation has been

communication has taken place in familiar and

Generated suitable conclusion for the report

HUMAN RESOURCE MANAGEMENT

Demonstrate convergent, lateral and creative

thinking when finding and presenting

Practices of Human Resource Management

HUMAN RESOURCE MANAGEMENT

1. Understand the difference between Personnel Management and Human Resource

c) Evaluate the role and responsibilities of line managers in Human Resource

Task 02 LO 02 and LO 04 (Class Room Activity - Group)

HUMAN RESOURCE MANAGEMENT

4. Evaluate the effectiveness of the recruitment and selection techniques in two

Task 03 LO 03 (Individual Report)

HUMAN RESOURCE MANAGEMENT

REVISIONS & THE GRADING GRID

HUMAN RESOURCE MANAGEMENT

Cover Sheet / Title page (if required)

List of illustrations/diagrams (if applicable)

Answers for the given questions (Task 03)

References (follow Harvard referencing style)

Appendixes (number your appendices clearly and neatly. Avoid attaching

HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT

Group Contribution Form - Task 02 LO 04 (Class Room Activity - Group)

prepare the Report

Individual Contribution Form - Task 02 LO 04 (Class Room Activity - Group)

Your Name and the Registration

Attendance for all

prepare the Report

HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT

Difference between human resource management and personnel management

HUMAN RESOURCE MANAGEMENT

Human Resource Management

the employees in the organization.

using to manage employees and their strengths

Employees welfare, personnel administration

and labor relation in the organization are the

maintenance of the human resources of the

main areas related to personnel management.