Automated Hiring Process in Human Resource Management

Automated Hiring Process

In the enterprise world there have typically been course of redesign groups and automated implementation teams.  Each with a common goal of bettering efficiency and streamlining to enhance outcomes and lower value.  Sometimes improved efficiency and decrease cost do not equal improved results.

There are multiple purposes obtainable that can scan and skim resumes for organizations.  There are automated techniques that may run background checks and credit reviews on candidates.  For some occupations there are knowledge bases out there for knowledge retrieval related to performance on potential applicants.

All of those individually or collectively can assist many organizational human resource departments.

There is also the perceived thought course of that by removing human flawed interpretation of data – one would obtain unbiased interpretation of information.  When there are no human palms screening a resume then there may be little chance very important information a couple of potential associate will be missed.  By automating the process then there shall be less time delay in retrieving solutions.

Theoretically this automated course of would lower the time and cost of choosing and hiring of new associates.  In flip this is able to additionally improve the standard of the associates being hired by any organization.  The cost financial savings can be instantly recognized and these financial savings would be seen on the underside line of the monetary reviews.

Since all applicants had been screened and selected by way of an automated process – the standard of those associates should be greater than those chosen with human intervention.  There was no likelihood of any favoritism enjoying a component within the hiring process.

  Due to automation the applicant was completely screened – matched to an open place in the organization – made a job provide – accepted and was employed  without any attainable human error.  There was one step missed in the automation – a important step in constructing an effective group within any group.  The one step missed was the human perception step.

Without the human involvement within the hiring course of – be default – that process is flawed.  Numbers and information will never inform the whole story.  Data retrieved off of some data base will not reveal how nicely the applicant works underneath stress.  Data retrieved from the pages of a resume will never reveal the power for the applicant to combine as part of a team.  A credit report won’t reveal how keen the applicant would be to working floating shift work or unplanned overtime.

The interview course of is the one part of the hiring course of that may be the most difficult to eliminate.  Any automated system used for sole determination of hiring associates for any group will fall short.  No matter the talent level or job description of the candidates.  A custodian affiliate will nonetheless must be screened for possible work ethic points.  The hiring determination is made not solely on expertise – but on ethical causes.  How nicely did the affiliate carry out the tasks?  How properly did the affiliate work throughout the team?  How flexible was the associate with regard to work hour adjustments and overtime?  Some of those questions may be answered by way of reference checks – but most will need to be answered by way of an interview process.  This interview process might be conducted by a skilled human resources associate who can ask the best questions to realize accurate answers from the applicant.

There are many circumstances where the numbers will not inform the whole story.   It is only by way of a structured interview can the most effective candidate be identified.  There are disadvantages to the human based mostly hiring course of additionally.  The process takes man hours for screening and reference checks.  The course of is open for favoritism to come into play when selecting the best candidate.

The best course of is possible a hybrid of the 2.  Utilization of an automatic process to establish the top 5 – 10% of candidates.  Then use the human assets interplay and interview course of to make the final choice.  Mark Lange, with Brass Ring Solutions – an automated applicant screening firm states, “we don’t outline high quality, however we do proved instruments for the corporate to use…” (Lange).

Do not depend upon an automatic system solely – it is simply a tool to be used by organizations to increase a hiring process.  Automation gives us the best of both worlds – it doesn’t substitute a world.


Lange, M. (2001). Brass Ring Systems Automated Hiring Systems: How to Impress a Robot. Retrieved February 16, 2009, from

Australia”s Economic Objective of Resource Allocation

The objective of efficient resource allocation refers to an economy’s ability to meet its obligations in ensuring that all social and economic aims are met with out waste, for instance to allocate resources in order that they are distributed efficiently to improve the standard or dwelling.

This is the only way that we are in a position to ensure that we will maximize the number of items and providers that we’re capable of present. In addition, we may even be more prone to assure the long term availability of the resources which may be at present out there to us.

The current target for efficiency goal concerning labor is 1.5-2% per year or extra.

Thus, the financial goal of efficiency in resource allocation exists when our productive inputs are used to create the very best possible worth of national output (ie GDP is at its highest level). In flip, having more G&S obtainable helps to ensure the maximum satisfaction of our society’s needs and desires.

In Economics, we distinguish between 4 several varieties of effectivity:1.Productive (or Technical) efficiency: Is about corporations producing G&S utilizing the least-cost technique and by minimizing the quantity of assets used. This is probably the easiest type of effectivity to understand. In this instance, we are interested in guaranteeing that any time we produce an excellent or service we’re able to do so by utilizing the smallest number of sources. If I use a tree to make 4 cricket bats, and you can produce five cricket bats from a tree of the same size, then your productive efficiency is best than mine.

Another example can also be sometimes a higher level of investment spending by corporations on new gear rather than merely employing extra employees is the cheapest way to carry output per employee.

2.Allocative effectivity: ensures that sources are only used to make these explicit types of G&S that best fulfill society’s wants and wants. That is, we want to produce these issues most desired by the community first. This is a problem skilled by most of the world’s poorer countries, particularly these which endure from poor governance. Corrupt leaders will often use a nations scarce sources to provide elaborate palaces, rather than guaranteeing that their people have entry to clean drinking water. This is very poor allocative efficiency.

3.Dynamic efficiency: entails that companies are able to reply quickly to altering financial circumstances. To be dynamically environment friendly signifies that companies are aware of the altering circumstances, and they’re ready to adapt to fulfill those new wants and tastes of customers. For example, as technology has improved, many companies have elected to adopt computers. This has concerned shopping for the hardware, choosing the proper software program and coaching the employees. In going by way of this course of, the firm is demonstrating their dynamic effectivity.

4.Inter-temporal effectivity: means that there is a suitable stability between sources being allocated in the course of current consumption and saving that turns into out there to finance future funding.

Causes of efficiency of useful resource allocation:Cyclical changes in domestic economic exercise resulting from adjustments in demand facet conditions that affect effectivity in resource allocation.

Supply side structural causes of modifications in labor in lobular and capital productivity.

Demand Side CYCLICAL FactorsIf ranges of AD and EA gradual resulting in a recession (due to weak demand-side circumstances like drops in business confidence/consumer), labor efficiency can endure for a minimum of four causes.

1.Firms are reluctant to sack skilled employees throughout a slowdown of gross sales, as they hope that recovery is not far away and thus save them the value of hiring and coaching new employees. This results in over staffing which lowers the extent of output per hour worked.

2.Prolonged or extreme cyclical recessions in EA causes higher cyclical unemployment as workers are cut in numbers, slowing down efficiency charges as a end result of more of labor sources are idle.

3.Business confidence about sales and profits, once down, can partly trigger recession. This causes the agency to chop investment on new P&E with new know-how, consequently productiveness slows.

4.Cyclical slowdown in home productiveness generally follows trends in the stage of EA and productivity abroad.

Productivity additionally slows when there is an inflationary boom following cyclical rises in the level of home economic activity. This is true when the expansion in AD exceeds the economoy’s productive capability. Productivity may slow down on this scenario.

1. Workers could not work as exhausting as they feel secure within the jobs when the economy is stretched to its capability. Abseentisms can rise, together with strikes and industrial unrest, slicing efficiency.

2. When the economic system is at its full capacity, there may be diminishing returns resulting from equipment breakdowns, labor shortages, leading to less environment friendly natural, labor and capital sources.

3. Rapid inflation can undermine business confidence, resulting in decreased funding in new expertise and equipment, slowing effectivity.

4. Investment used for expanding the enterprise by way of plant & equipment can be pumped into much less productive or more speculative areas (eg actual property and stock market actions.) This is a mis allocation of sources that slows down productiveness.

So, when EA is weak due to lowered degree of AD, productiveness falls because of pessimism, lowered funding, unemployed resources, and labor hoarding. However, on the opposite excessive, excessively strong spending and EA signifies that productivity suffers from the above reasons.

Productivity is likely to be maximized when AD and domestic EA are at ideal ranges and demand side conditions are optimistic however are neither too weak nor too sturdy.

Business Confidence – Optimism of business (eg ^ shopper confidence, ^ household disposable incomes) has a cyclical impression on effectivity. This leads to the business investing in new tools with latest technology, resulting in the employee having a greater value/amount of machinery to make use of within the manufacturing process than previously (capital deepening), thus raises theh degree of GDP per hour labored.

Interest Rates – Higher enterprise overdraft signifies that companies are extra reluctant to borrow in order to purchase new, more efficient plant tools due to increased repayments. Investment thus is decreased and productivity slows.

Company Tax Rates – Impacts the extent of the firm’s investment spending. Reduced tax rates elevated funding spending and better productivity.

Supply Side Structural FactorsSupply components are much more important than demand elements when we are considering the impression that sure events may have on our ability to allocate our assets effectively. If you focus on this for a second it is logical – provide factors are those issues that affect the power and willingness of producers to supply a great or service at a given value.

When the US financial system experiences a rise in AG, we should always see an increase in output without any stress on productive capacity which will result in inflation. This is a sign that resources are being allocated extra effectively.

As a end result, we can conclude that any issue that can result in a rise in mixture provide may even result in a more efficient allocation of assets.

For example through the Nineteen Nineties the Australian financial system noticed the introduction of technology on a bigger scale. This improvement in capital belongings, mixed with the mandatory support in the form of training for the workforce, resulted in important improvements in productiveness, exhibiting that resources have been allocated more effectively.

Climatic situations – Drought and under average rainfall (2002-03 – 06-07), floods, cyclones (coastal Northern QLD 2006) impacted efficiency in resource allocation as a end result of national output is reduced excess of the amount of inputs of labor or capital sources. Drought also had an influence in the effectivity in water, fuel and electrical energy sectors that is, the identical labor inputs have been used but much less output has been produced.

Sporting events (Before and After) – Events just like the Sydney Olympics (2000) and Melb’s Commonwealth Games (06) may have helped in slowing productiveness. Studies show throughout these occasions that worker efficiency fell perhaps due to distractions and telecasts and worker fatigue from watching TV replays at night.

Changing charges of funding in new technology – Investment spending on new P&E like ICT and robotics happens in waves or cycles, that is, accelerates or slows down. After the flurry of robotics, electronics and computer and web based mostly applied sciences within the mid-late Nineteen Nineties, many recent innovations have been far less vital, tending to sluggish efficiency. However pretty latest spending on R&D as a proportion of GDP from 1.fifty one to 1.78% b/w 200-1 and 2004-05 is a sign that US productivity will rise again.

BIBLIOGRAPHY, Economics Down Under 2nd Edition

A Speech by a Human Resource Manager

1. What roles the HR perform has been taking half in within the company?

The human useful resource management has been playing an indispensable position in this financial institution. From the case we are able to find out the HRM consists of many capabilities:

(1) Recruiting the best individual for the best job at the proper submit.

(2) By constituting and implementing insurance policies, accessing and monitoring the employees’ performances.

(3) Helping design coaching applications that assist workers continuously enhance.

(4) Assisting organizational members in how to work successfully (E.g., team building). Aiming to increase will increase the extent of efficiency, productivity and also improves the quality of the product and service.

(5) Making the employees satisfied with high quality of labor life. Giving them equal chance to comprehend their potential and fulfill their profession dreams.

(6) Supporting the group obtain its strategic goal.

2. How would you describe the HR management practices the company is implementing? Can they be transferred to the opposite Nepali organizations?

The firm is implementing the assorted HR administration practices. It holds a weekly meeting to debate day-to-day activities to attain the organizational goal simply.

Through the Internet access to the HR system the corporate has been in a position to reduce its recruiting price by greater than 33 p.c. They implemented an in depth coverage on employee monitoring maintaining informed on employee actions. They also enlightened each employee of this group of this coverage. They also helped design training applications that assist senior manager’s continuous enchancment program. The manager additionally emphasizes on teamwork and flexibility to change.

I suppose some of these practices may be transferred to the opposite Nepali organizations.

Because many corporations solely focus on productiveness and profit, but ignore the resource of human that created the wealth. So how to use this useful resource effectively is an enormous problem for an organization. The practices of this profitable bank can be utilized for reference. However, in accordance with its personal circumstance, the policy and the practices can be applied correctly.

3. What are the major HR challenges/issues dealing with the company? Do other organizations face similar challenges? How they are often addressed?

–The main challenge identified in this company is the changing environment. As said by the manager that organizations have advanced tremendously over the previous decade and alter is not one thing that occurs in a managed fashion. So the necessary thing is to be taught tips on how to become extra flexible in coping with the adjustments that will come up and taking active roles within the administration. The vice chairman plans to retrain the human resource in phrases of effective managerial skills and competencies corresponding to project management and team constructing.

–Second, the sophisticated expertise that makes jobs getting extra advanced and requires significant interplay is a problem as properly. The manager ought to make sure that they’ve the right people for these jobs, which in most cases, would require then to repeatedly train and upgrade their employees’ abilities.

–Diversity among the many staffs is one other problem for them. All employees are not alike either in talent stage or of their backgrounds. Thus the company wants to acknowledge and respect differences in people so that it may possibly capitalize on their strengths they bring to them.

No doubt other organizations may even face the similar challenges. However, respecting people and retraining the staff are the essential solutions to these challenges.

Human Resource Management: Dreamworks Animations

With Jeffrey Katzenberg as their CEO, DreamWorks Animation’s business encompasses animated content creation for theatres and television as well as merchandising and licensing of their associated characters (Fixmer, 2013). DreamWorks Animation has been an exemplary example when it comes to keeping its employees happy at work, being voted 12th on Fortune’s 2013 top 100 best companies to work for (CNN, 2013). DreamWorks Animation goes through great measures in order to maximize the potential of their employees by ensuring that they are always motivated.

By organizing regular special events such as movie screenings and family get-togethers, DreamWorks Animation acknowledges on ensuring work-life balance (Stanger and Groth, 2012). Jeffrey Katzenberg would also initiate communication with his employees daily through social media (Stanger and Groth, 2012). Apart from motivating the employees, this gesture removes the barrier between employer and employee, allowing effective communication. To encourage freedom and expression of creativity, the company allows employees to personalize workstations and create an environment which would maximize their potential (CNN, 2013). DreamWorks Animation depends heavily on their employees who will directly affect the quality of products.

To ensure that DreamWorks Animation is able to meet organizational goals and gain a competitive edge over competitors such as Disney Pixar and Sony Entertainment, it is important that the right human resource management practices are being utilized to maximize the potential of the company and to create a high-performance work system. Such a system is achieved through human resource management by reacting to trends such as increase in emphasis of knowledge workers, empowerment of employees, and improving of teamwork (Noe, R.A. et al., 2014, pg.35). .

Analysing and design of jobs
For DreamWorks Animation whose main business focus is on the development and creation of animation using state-of-the art technology, this process requires technical knowledge and creativity from their employees in many different specializations. Therefore, it is imperative that job analysis and design of jobs must be done to match the right person to the right job and maximize the potential of the company. The first step is using work flow analysis to gain a better idea on what the work needs to be done is.

This is achieved by first determining the products of DreamWorks Animation, followed by the work processes including activities required to produce it, and finally the inputs such as raw materials, equipment, and human resource (Noe, R.A. et al., 2014, pg.100). In the case of DreamWorks Animation, an animation is produced using state-of-the art technology by teams of experts in niched specializations from content creation up to licensing. After determining the work processes and inputs, the next step is to zoom in to the specific job roles and functions.

Through the use of job analysis, DreamWorks Animation will be able to get more detailed information and understanding of the jobs in order to match it with the people which best fulfils its requirements (Noe, R.A. et al., 2014, pg.103). The company can get more information about certain job roles and requirements using the Fleishman job analysis system by asking existing employees to fill up surveys based on 52 categories of abilities (Noe, R.A. et al., 2014, pg.108).

Having been in the job for a certain period of time and accumulating experience in the certain specialization, a 3-D modeller, for example, could advise on what kind of software knowledge is required by a prospective employee. Once the information is gathered, the next step is to
create the job description which would list out the task, duties and responsibilities of the specific job (Noe, R.A. et al., 2014, pg.103).

This is important as it provides prospective employees with a clear indication of what is expected of them and the key roles which they will be playing in the job. For DreamWorks Animation, a company which requires knowledge workers who possess specific skillsets and talents in order to fulfil roles within the production process, the emphasis on job specifications is important. By evaluating the job function and understanding the inputs which they invest in such as the equipment and technology, DreamWorks Animation would have to indicate clearly the knowledge, skills, abilities, and other characteristics required for the job (Noe, R.A. et al., 2014, pg.103).

By indicating the need of certain software skills or technical certification important in content creation of an animation, DreamWorks Animation will be able to attract the right people for specific jobs. Using job design and redesign, DreamWorks Animation could enhance job performance by fully utilizing the strengths of their employees (Rehman, 2011). One of the ways is by designing efficient jobs, for DreamWorks Animation, could be the passing down of operating procedures from senior employees to speed up certain work processes. Being assigned to specific jobs for extended periods could demotivate employees due to the monotony of the job.

By introducing self-managing work teams giving autonomy with regards to schedules and duties to achieve project based objectives, employees feel more empowered and the job becomes less rigid (Noe, R.A. et al., 2014, pg.116). Introducing flexi-time whereby employees are allowed to choose their working times as long as they meet targets set by the company, DreamWorks Animation can also benefit from having a more motivated workforce, in turn encourage generation of creative ideas and improve efficiency.

DreamWorks Animation is a company whose product creation involves an intensive work process which requires the expertise and technical nous of knowledge workers. Through the use of job analysis and design, they could benefit from finding the right people for the right jobs by clearly defining the description and requirements (Rehman, 2011). DreamWorks Animation could also increase efficiency and motivation of their employees, benefitting from increased productivity and reducing the turnover rate.

As DreamWorks Animation depends on development and creation of creative content as their main business function, the quality of employees they have plays a large factor on the quality of product produced. Therefore, employees become the most important resource the company has, and being able to identify and attract potential employees through recruiting becomes a top priority.

The decision made by the company in recruiting consists of three main aspects; personnel policies, recruiter traits and behaviours, and recruitment sources (Noe, R.A. et al., 2014, pg.143). In order to attract top talents in their relative specializations to choose DreamWorks animation over their competitors, the first step is using image advertising. Under personnel policies, image advertising is the focus on creating a good impression of the company by advertising the positive experiences of working for them (Noe, R.A. et al., 2014, pg.144).

By advertising what DreamWorks Animation has done to provide opportunities for existing employees to showcase their talents and how they have provided a working environment which encourages creativity, the company would be able to appeal to potential employees who value such a working culture. In many cases, especially in a highly-competitive labour market where top talents in the animation industry are highly sought after, DreamWorks Animation should also adopt personnel policies such as lead-the-market pay in order to attract employees with top potential.

This is achieved by paying the potential employee a higher salary compared to any others in the current market for the same position (Noe, R.A. et al., 2014, pg.144). For DreamWorks Animation where top talents are needed in niched positions for the creation of their product, they could also offer the potential employee benefits in the form of profit-based bonuses from the project they will be working on.

This way, not only does DreamWorks Animation benefit from acquiring a top quality employee, the employee would also be highly motivated to excel due to added benefits. Once the personnel policies are in place, the company would have to make decisions based on recruitment sources. It is important to use the appropriate sources to attract the ideal employees out of a huge job market (Noe, R.A. et al., 2014, pg.145).

One option is through internal sources whereby current employees are sourced to fill up newly opened positions. This can be done through job posting whereby information of the position is communicated to the employees through employee publications or the intranet (Noe, R.A. et al., 2014, pg.145). By recruiting through internal sources, the company will benefit from having an employee who already has experience in the industry and would be able to adapt easily. It will also increase the morale of existing employees as they will see the opportunity for future advancements with the company choosing to recruit from within.

DreamWorks Animation could also choose to recruit through external sources such as tertiary institutions. By tapping onto universities, especially those with good reputation and track record for producing the top students in certain specializations, DreamWorks Animation could benefit from attracting the best talents.

This is done through enhancing of the company’s presence by attending job fairs and providing internships to students (Noe, R.A. et al., 2014, pg.151). In order to attract the best talents, top companies such as Google have not only provided interns with the opportunity to participate in real projects, they are also paid in the average of US$6000 per month (Buxton, 2013). Once the recruitment process has been completed, DreamWorks Animation should also evaluate which sources attract the best talent and this would help them with future recruitment decisions.

Last but not least, DreamWorks Animation should ensure that they provide training to the recruiters who are an extension and representative of the company. By providing guidelines on what are the behaviours to display as well as information which should be provided, recruiters will be able to appeal more to the prospective recruits. With proper utilization of human resource practices in recruitment, DreamWorks Animation will benefit from recruiting the best employees in the industry. This is important as it ensures that not only will they be able to create and develop the best products, they will also gain a competitive edge over their competitors by staffing the company with employees possessing the right competencies and are able to fit in seamlessly to contribute towards achieving organizational goals (Chew and Horwitz, 2004).

Performance Management
Another important human resource practice DreamWorks Animations should look into is managing of their employee’s performance. There are three main purposes for performance management and the first one is to achieve strategic purpose whereby the company will be looking to reach organizational goals and business objectives (Noe, R.A. et al., 2014, pg.236).

It is also done for administrative purpose which helps the DreamWorks Animation make decisions on appropriate compensation as well as identifies employees who are not meeting required standards (Noe, R.A. et al., 2014, pg.237). Lastly, is to achieve development purpose whereby the strengths and weaknesses of employees are evaluated to provide them with feedback or suggestions to improve their knowledge and skill (Noe, R.A. et al., 2014, pg.238).

The first step to effective performance management is to understand the desired outputs and goals set for the company (Noe, R.A. et al., 2014, pg.236). For DreamWorks Animation, the overall objective would be hitting certain profit margins from the successful launch of a new animation. Next, is to evaluate the goals and performance requirements set out for individual employees in order to achieve the organization’s goals, the consequences and performance outcomes should also be evaluated (Noe, R.A. et al., 2014, pg.236). Once the goals are set, it should also be followed by observing and providing of constructive feedback to employees to guide them in achieving the goals (Noe, R.A. et al., 2014, pg.235).

With the process in place, DreamWorks Animation should decide on methods or combination of methods most suited for measuring performance. One of the methods could be attribute measurement through graphic rating scale. Through this scale, the employees are being rated based on a list of traits and to what extent do they display such traits (Noe, R.A. et al., 2014, pg.242).

This is a highly customizable method which allows DreamWorks Animation to rate their employees according to certain traits which are important for the company such as knowledge and creativity. The company can also measure results through management by objectives by setting goals flowing from top to bottom which contributes to achieving the overall organizational goals, and using of these goals to evaluate performance of employees (Noe, R.A. et al., 2014, pg.248).

The goals are often set by individual departments through discussion between managers and employees whereby the goals are specific and challenging (Noe, R.A. et al., 2014, pg.248). For DreamWorks Animation whose business objectives hinges on the success of their animated content, using its profitability as a measurement for evaluating performance is also valid.

However, such a method might be unable to predict factors
such as climate of the market and efforts put in by the employees (Noe, R.A. et al., 2014, pg.249). By comparing between employees using the simple ranking method, DreamWorks Animation would also be able to have an idea of how employees fare among their peers. This method is carried out by ranking the employees in the department from the best downwards (Noe, R.A. et al., 2014, pg.240). With the method of performance management formulated, the next step is on the delivery to the employees.

DreamWorks animation should emphasize on scheduling regular appraisals to ensure that their employees have ample time to correct. Managers providing the feedback should also be trained on how to deliver and prepare for the appraisals (Noe, R.A. et al., 2014, pg.257). To minimize any errors in performance management which may result from difference in standards of judgment or bias which may occur in any of the above methods, DreamWorks Animation should utilize the 360-degree performance appraisal. This method gathers feedback not only from managers, but from the peers, customers, as well as the individual (Noe, R.A. et al., 2014, pg.253). Performance management should also be done in a legal and ethical way to ensure that employees are treated fairly.

With proper performance management, DreamWorks Animation will be able to benefit from not only having employees who have a clear idea on what are their goals and ways they could improve, constructive guidance and feedback will also ensure that the company is focused on achieving a common objective. As a result, the productivity of DreamWorks Animation will be improved and employees will be more motivated to work towards their goals.

With the above human resource management practices in place, in the next five years, DreamWorks Animation will be able to benefit from understanding specific requirements of each job and improve productivity. Having the right people at the right job where their talents are fully utilized, they will create effective workgroups and ensure that their resources are well invested to improve performance. Through finding ways to improve on the current jobs would also be beneficial in their corporate branding as a top company to work for, attracting the best talents around the world.

The improvements to existing jobs would also ensure that the employees are given more support and encouragement to realize their potential, therefore empowering employees. With the right recruitment practices, it would also ensure that their resources would be maximized on sources which would generate quality hire. The emphasis on performance management also allows gives a clear direction on organizational goals and guides employees towards working more effectively. On the whole, DreamWorks Animation will be able to create a high performance work system, they will also see a huge increase in employee morale and reduce turnover rate.

Reference List
Buxton, R. 2013. Google Intern Salary Reached $6000 A Month, Plus Free Food And Gym. Huffington Post [Online] Available at: [Accessed 6 June 2013] Chew, I.K.H. & Horwtiz, F.M. (2004): ‘Human Resource Management Strategies in Practice: Case-study Findings in Multinational Firms’, Asia Pacific Journal of Human Resources, 42, 1: 32-56. CNN Money (2013). Fortune: 100 Best Companies to Work For. [Online] Available at: [Accessed

5 June 2013] Fixmer, A. 2013, DreamWorks Animation CEO Says TV Will Give Revenue Boost. Bloomberg [Online] Available at: [Accessed 5 June 2013] Noe, R.A., Hollenback, J.R., Gerhart, B., Wright, P.M. (2014): Fundamentals of Human Resource Management, 5th Edition, Singapore: McGraw-Hill. Rehman, M.S. (2011): ‘Job design and job performance relationship: A study of Pakistan Public Sector employees’, Interdisciplinary Journal of Contemporary Research In Business, 2.12: 562-76. Stanger, M. & Groth, A. 2012. 23 Companies With Employee Perks That Will Make You Jealous. Business Insider [Online] Available at: [Accessed 5 June 2013]

Human Resource Management


Purpose – The purpose of this report is to explore the hypothesis that recruiters have more power but less costs of employment in recruitment and selection than candidates do, and to offer recommendations. Findings – The report finds out the difference between recruitment and selection and the methods used in recruitment and selection. Discussion – According to the findings, the paper discuss the different result and effect in recruitment and selection separately. Conclusion – The findings partial support the hypothesis. In recruitment, it costs less relative to selection for both recruiter and applicant. And the applicant dominates in recruitment. Nevertheless, in selection, it costs much time and resource for both recruiter and applicant. And the recruiter is more powerful in this relationship. Recommendations – The paper provides four recommendations for recruiter and applicant respectively to overcome the asymmetrical power relationship in recruitment and selection.


The successful recruitment and selection have proved to be a vital part of business success. Recruitment and selection have proved to be a human resource planning activity and play a significant role on an organization’s overall strategic plan. Some believe that recruiters and employers dominate the recruitment and selection process. Many people desperate to find work and would have been prepared to accept anything to which they are remotely suited. Whilst others argue that candidates take the initiative in recruitment and selection in recent years. Applicants openly discuss their willingness to take jobs for which there are over-qualified.

Existing researches in this argument have demonstrated the factors which affect the recruitment and selection. Interpersonal and communication skills including written and oral, academic qualifications and work experience are proved to be three priorities in all selection criteria. Managers and recruiters both rated work experience as the most important factor influencing the decisions to hire an applicant (Daly, Baker & McCarthy 2004).

Although much work has been done to date, previous studies did not consider separately about recruitment and selection that would have different effects on recruiters and applicants. The study reviews previous research and literature about the employment relationships in recruitment and selection. The purpose of this study is to investigate the asymmetrical power relationship in recruitment and selection. The hypothesis is recruiters have more power but spend less costs in recruitment and selection than applicants do.


Most people argue that recruiter takes a dominant position in deciding to hire an employee. In recruitment and selection, the costs of employing resource for recruiter and applicant are very different if an applicant failed to get a job position. The paper will investigate the following aspects to give a better understanding of the asymmetrical power between recruiters and candidates in recruitment and selection.

Differences between recruitment and selection
Methods used in recruitment and selection

Differences between Recruitment and Selection

The differences between recruitment and selection are showed in the following table, Basis
It is an activity of establishing contact between employers and applicants. It is a process of picking up more competent and suitable employees. Objective
It encourages large number of Candidates for a job.
It attempts at rejecting unsuitable candidates.
It is a simple process.
It is a complicated process.
The candidates have not to cross over many hurdles.
Many hurdles have to be crossed.
It is a positive approach.
It is a negative approach.
It precedes selection.
It follows recruitment.
It is an economical method.
It is an expensive method.
Time Consuming
Less time is required.
More time is required.
Source: Management Study Guide.
According the differentiation summarized above, we can see that selection process is more complex, expensive and time-consuming than recruitment activity.

Methods Used in Recruitment and Selection

An organisation’s strategies, human resource policies and process should be taken recruitment strategies into consideration, that is, internal, external or a combination of both. Hacker (1997) pointed out several factors associated with the cost of recruitment, as training a replacement, advertising, time, recruitment agency fees and possible unemployment compensation claim. It is suggested that referrals from existing employees can be a low-cost, effective methods of recruitment, and educational institutions are regarded as a source of labour with newly acquired skills (Compton et al. 2009). Furthermore, it is suggested that advertising media can be a useful tool to attract direct applicants. Internet recruitment comes at a more effective method of attracting widely distributed applicants in the last few years (Kramar et al. 2011).

After recruitment section, applicants’ selection is more complex and costly. Previous survey was conducted by Cameron (2008) identified the selection tools used in selection processes as the following,

It is apparently that interviews and written applications are the two most commonly used selection methods. Participants indicated that the face-to-face interview was the most favoured selection process (Daly, Baker & McCarthy 2004). The sifting of CVs and application forms and interviews as two techniques dominate the selection. It is found that interviewers place too much emphasis on individual information, thus making decisions based on their gut feeling and are unable to explain the strengths and weaknesses of their preferred applicant (Billsberry 2008). Besides, Billsberry (2008) also pointed out that interview’s free format and unclear decision criteria would cause interviewees misrepresenting themselves, thus making biased and unlawful decisions by interviewer.


The aim of this research is to investigate whether recruiters have more power but cost less in recruitment and selection than applicants do. The result should be concluded into two sections. The findings, however, partial support the hypothesis.

The most important finding is, in recruitment activity, it is not cost much for recruiters and applicants. For recruiters, they just need to set the job vacancy and related requirement, and then put the recruitment advertisement through a variety of advertising media or recruitment agency. It may cost some money but not too much. As we all known, internet recruitment usually costs free, such as Gum tree. For applicants, all they need to do is delivery their resumes or fill in the application form. They do not spend much time in recruitment but may wait for the result in a long time.

Another significant finding is, in selection process, it is time-consuming and resource-costly for both recruiters and applicants. One job vacancy may attract a large number of applicants including over-qualified and under-qualified. Of all the applicants, the most competent person will fill the vacant position. Thus, the recruiters should spend plenty of time in sifting of CVs. Sometimes it resulted in literally hundreds of resumes, not one of which made it past the first round. After that, recruiters can arrange the interviews. It is generally not only the recruiter but also the manager will interview the candidate. And then they will make a choice among those candidates according to their qualification and performance. Selection is a cumbersome process.

In addition, applicants take a greater extent of participation in recruitment activity. They are positive and initiative in this section. However, recruiters and managers dominate the selection process. Candidates remain negative and passive in this section.


The paper provides a briefly understanding of the asymmetrical power relationships in recruitment and selection. According to the research, it found out the difference between recruitment and selection, and the methods used in recruitment and selection. In discussing the findings, the author takes the positions into account separately and gets different result.

In conclusion, the power relationships between recruiter and applicant are different in recruitment and selection respectively. In recruitment activity, it costs less relative to selection process for recruiter and applicant. The applicants dominate in recruitment. On the contrary, selection process is time-consuming and resource-costly. And the recruiters are more powerful in selection.


In order to overcome this asymmetrical power relationship, effective methods in recruitment and selection should be considered and designed. In this case, the paper offers the following recommendations for recruiter and candidate.

Recruiter can establish specific selection criteria such as competency profiling to the essential and desirable qualities for the job vacancy. Recruiter can build a rigorous framework for filling an application form to save time in sifting in the first round. Innovative format of resume such as video resume can be used by applicant to show talent and personality for standing out from the competition. Candidate may apply for a couple of positions which are in the same industry and similar. Thus they could make choices between the companies, and the cost of job or no-job could be diminished.

Applying the above suggestions in recruitment and selection, both recruiter and applicant could save time and cost.


Billsberry, J 2008, Experiencing recruitment and selection, John Wiley & Sons Ltd, Chichester, England.

Cameron, LC 2008, Staff recruitment, selection and retention in family-owned small businesses, Southern Cross University, Lismore, NSW.

Compton, R, Nankervis, A & Morrissey, B 2009, Effective recruitment and selection practices, CCH Australia Limited.

Daly, AJ, Baker, MC & McCarthy, P 2004, ‘Preferences in recruitment and selection in a sample of Australian organisations’, International Journal of Organisational Behaviour, vol. 9, no. 1, pp. 581-593.

Difference between recruitment and selection n.d., Management Study Guide, viewed 17 May 2013, .

Hacker, C 1997, ‘The cost of poor hiring decisions and how to avoid them’, HR Focus, vol. 74, no. 10, pp. 13-14.

Kramar, R, Bartram, T & De Cieri, H 2011, Human resource management: strategy, people, performance, 4th edn, McGraw-Hill Australia Pty Ltd, NSW.

Planning Human Resource

Human resource planning has a major role to meet the company objectives in professional and efficient comportment. In this case study planning process is to meet the short term, by having the right people and the right skills of workforce to supply demands of the new contract at the same time to adjust staffing change for long term objectives. As an HR manager main role is to meet business needs through workforce planning. Part of the planning is to investigate and gather information where the company stands now where we want to take it and how to do that. I can employ the Manpower requirement approach for Human resource planning, to analyse the current situation and estimate future needs and implement the new strategy.

The manpower requirement approach enables the HR to investigate the quality and the quantity of the existing workforce and analyse the company situation, forecast an adequate number of skilled manpower to satisfy future needs and achieve targets. 1- Analyse the current workforce: to learn about employees profile, expertise, age education, roles and gather information about staff rotation, this data base permit the company to evaluate the core competences and the power of it is human capital, identify surplus or shortage for short term and long term targets and measure it up with the company objectives and capabilities to appraise the current productivity, Moreover to evaluate the corporate strategy alignment with the vision and mission. 2- Forecast future manpower: identify supply and demand.

Expect the quantity and characteristics of the manpower in demand for future needs based on projecting employer past trends. Using previous trends of employment of a specific qualifications and expertise employed earlier in the past years by the company to ensure productivity. “In this approach an attempt is made to forecast future requirements of educated manpower to fulfil a future target of Gross National Product (GNP) or specified targets of industrial production”. (According to Mahapatro, et al. 2010) Predict directions and development in each size of individual sectors of the economy. Use series of data and historical trends to acquire the ratio between the growth of the skills of the workforce and output growth.

This method allow to associate experienced manpower and their productivity influencing the economic growth in a specific sector. According to Mahapatro, et al. 2010, “the fundamental axioms of manpower requirements approach is that there is a definite link between the education and the economic growth and the lack of skilled manpower in required number impedes growth”. Analyse and estimate the requirements of educated manpower to develop and advance, by assessing different factors engagement level, wastage and recession rate. Estimate the level of labour force participants by comparing the participant’s rates and the number of graduates for a specific occupation.

The main strengths of this method are estimating and comparing the demand and supply over a period of time in a specific economy and correlate this with the total population level of employment and production. Moreover this approach helps the company to identify future needs for development and training allowing them to categorise. According to Mahapatro, et al. 2010,” this approach assess the skill requirements to achieve any predetermined economic growth, and to gear the expansion of educational system to provide the needed education and training” However there are some flaws in the Manpower Requirements approaches. The first limitation:

The Manpower requirement approach, link skilled manpower to a specific occupation task, however it’s limited to be valid since it is not including the price and the cost of formal training and education to produce such educated level required, and it can only be relevant to developing countries, where high proportion of manpower have obtained these skills through informal learning and job experience. According to Mahapatro, et al. 2010, “in the Indian context, it has been observed that over 30 percent of the manpower do not have the basic minimum qualification. They have reached these levels through on-the-job training and such other informal training in the requisite skills.”

The second limitation: This method confirms that there are no replacements for the required skilled manpower; however we cannot expect to find in one country all jobs requiring a specific skill to be executed by manpower having the same category of education. According to Mahapatro, et al. 2010, “the educated manpower of different types are used in fixed proportions and that there no substitutions possibilities among the various categories of educated manpower”.

The future is uncertain, technological and economical factors constantly changing affect the patterns of demands predicted in an earlier stage, since estimated skilled or unskilled labour force is derived from the patterns of services or goods in demand, this approach is relatively unreliable for future for long turn estimates and can produce large errors. According to Mahapatro, et al. 2010, “Any error in judgment, in this regard, will seriously affect manpower balances at a later date resulting in either excess supply or excess demand”. Flexibility

For example the Audit Commission, they have developed different type of employment to meet their business needs. “”These different contracts help the Audit Commission to cope with all of its changing needs. They also help it to be flexible.” (The Times 100, 2013) The Audit Commission is constantly faced with peaks and troughs in the workload that cannot be met simply by having its employees on full-time contracts. There are situations where they need either more staff or fewer staff. By increasing or reducing staff in these situations the Audit Commission has developed numerical flexibility. (The Times 100, 2013)

As we know the organisation had some success stories and some unstable situation, HR planning at this phase after winning a new contract is extremely crucial. We can learn from the Audit Commission and apply flexibility to be able to meet future business needs without raising employment cost and by avoiding downsizing. I can suggest developing and applying flexible working patterns by introducing different type of employment contracts.

The internal labour market 350 employees 95% of them have permanent contract consisting the core group of the organization having the skills and knowledge to work in many roles, the abovementioned manpower enable the organisation to run the daily operation having the expertise the knowhow of the company production standards and quality, and they can meet the enquiries in an efficient ways. However the company has recently won a new contract that might implicate needs for recruitment. The existing 95% will remain on permanent contracts and will consist the 75% of the company new structure, as for the new workforce joining the company we can introduce different type of contract to hire them in order to maintain the flexibility of the organisation.

They consists the first peripheral and the second peripheral. In the company situation we are examining to hire the first peripheral group that is numerically flexible and the second peripheral group that include employees on short-terms or contractors from agencies, where the organisation needs more staff, that will not by necessary after the production demands of the new contracts are met. As for a construction company that have just signed a new hotel construction project that will end in 5 years, they cannot afford to hire employees on permanent contracts for the new project, as they will have surplus after the hotel is build.

In this situation by applying the new working patterns the manufacturing company can meet the new contract needs and ensure that we will not have a manpower surplus after the project is done, it is always easy to increases the number of the workforce but not simple to reduce it. Since the company have liabilities toward their workforce. The cost is extremely high to offer all its employees benefits, health insurance, schooling, bonuses and end of service indemnities. Question 2:

As we have discussed before temporary workers play a significant role in current fast pace evolving industries, no matter how skilled or unskilled they are, a certain amount of training is required to make sure they can perform well the assigned tasks. We have to plan the training process and identify the gaps.

According to Gomez-Mejia et al, 2012 “The trainng process consists of three phases: (1) needs assessment, (2) development and conduct of training, and (3) evaluation.” 2.1 Assessment Needs: The type of training should be linked to the organisation goals, in our organisation situation the company needs to meet the new project production needs on time efficiently without compromising the quality.

By hiring the new temporary workforce, the company is not looking to develop them or invest in them, as they are only hired to assure the production for a certain period. However we need their contribution to achieve company goals and meet business demand, the required training should enable them to acquire the skills and the knowledge, by identifying a certain type of training that will ensure they are prepared to do the assigned tasks and have the complete knowledge of the company procedures and safety related issue. 2.2 Development and conduct of training

We can refer to Aldi’s company case study that was experiencing a rapid expansion and needed to recruit more than 4,000 employees. It is not so easy to involve a large number of employees and engage them to the company objectives, we can examine below how Aldi’s planned to train the new workforce and make them committed to their new roles. They have chosen to provide the on-the-job-training.

“On-the-job training is training that takes place while employees are actually working. It means that skills can be gained while trainees are carrying out their jobs. This benefits both employees and the business. Employees learn in the real work environment and gain experience dealing with the tasks and challenges that they will meet during a normal working day. The business benefits by ensuring that the training is specific to the job. It also does not have to meet the additional costs of providing off-the-job training or losing working time”. (The Times 100, 2013) we can use the same training approach to apply it to our organisation, as we have to be careful about the cost.

At the beginning we have to introduce them to the work place they are joining, an induction training should be provided to familiarize the new group joining to the company and colleagues, this orientation ensure their understanding to the company structure and the corporate culture and we can gain their involvement from day one to the organisation objectives and goals. We are examining here the instrumental learning type.

On job training approach is applicable in this case study as it is considered cost effective and does not require an expert trainer to be hired from outside the company to teach them specific skills or to provide a certain knowledge. “OJT also spares the organisation the expense of taking employees out of the work environment for training and usually the cost of hiring outside trainer, because employees generally are capable of doing the training” ”. (Gomez-Mejia et al, 2012)

At the same it can deliver a clear message about the company expectation while saving time, as senior skilled staff can train new employees divided in groups depending on job requirement and the group can actually learn the required skill while conducting day-to-day activities, it allow them to observe and try. One of benefits for the company will be having skilled employees that will need less supervision to perform tasks in the future, furthermore that will increase the loyalty to the employer and employees relationships, since they will be interacting closely with the senior staff for the training period. In addition they can get guidance and learn new technologies practically rather than theorist, where most of the times theories are not so clear to be applicable.

“The guided on the-job training approach helps build relationships”. (Gomez-Mejia et al, 2012). The informal training or the OJT can enhance relationships between the workforce interacting together to acquire skills and learn better about our organisation, it can be also considered as socializing activity since they can be more open and communicate easily with no barrier, this process will make effective the on-boarding new employees. “Socialization is not a single event. Rather, socialisation is the iterative process between the new employee and the organisation as the individual develop skills, knowledge, role behaviour, and adjustment to norms and values in response to needs and expectations of organisation. (Jolton et al, 2010). For the employees it helps them to be more motivated and self confident about the job, where they can gain more skills in a practical way.

They can get guidance and learn new technologies practically rather than theorist, where most of the times theories are not so clear to be applicable. We have to plan carefully the On-the-Job-Training, to allow immediate benefits and reduce the unproductive breaking-in period of the new joiners. If we leave them to learn through unplanned methods employees may feel anxious unmotivated as they are not confident about their job roles and performance. Since we are aiming for temporary manpower and flexible working patterns this method is considered efficient to make them productive as quickly as possible. In addition the OJT permit to examine at early stage employees basic skills problems, for this scenario we can plan for further training for a certain group, simply it can eliminate skills deficiency. Question 3:

3.1 Benefits of Diversity at the workplace.
a. Internal advantages.
Emerging economy, constantly changes in lifestyle and social demands stimulate people to move from their native countries to a better place, society are becoming more diverse. One car type cannot fit to one population; diversity in choice can make a difference and appeal to everyone. By recruiting a diverse workforce we won’t be only addressing legislation or avoiding discrimination lawsuits, but we ensure engaging our stakeholders’ demands. Avoiding the stereotype in recruitment is the key success for the company to become an employer of choice. Diversity at the workplace can bring a pool of creativity and new ideas; contribution from people coming from different background can advance work and give the ability to the company to comprehend better our stakeholders’ needs and demands.

People having different cultural perspectives and lifestyle can give different ideas about the same subject and convey wider exposure for the company. According to Gomez-Mejia et al, 2012, “to survive and prosper in an increasingly heterogeneous society, organisations must capitalize on employee diversity as a source of competitive advantage”. Regardless that managing employee diversity is politically correct, diverse workforce enhance better problem solving, in our manufacturing company people tend to work in groups, interacting together can solve occurring problems easier as their life experience is dissimilar and they will approach the arising problems differently. Demographic and Cultural diversity can draw more flexibility to the company culture; sharing different experiences can make the work smoother and enjoyable, since learning is wider and more open. b. External advantages

A team of different people sharing life experiences and values can improve our corporate culture to become a multicultural organisation having the experience to understand better international market, this advantage can aid the company to generate more profits and widen our market. Talented people are not limited to one culture, certain age or religion, our aim is to match the right people to the right job, so why to slim our choices since we can recruit from a pool of talents.

By offering equal opportunity and overlooking differences we can focus better on having the right skills, Cultural diversity at the workplace can promote competitive advantage over rivals, Moreover respecting individual diversities in recruitment can increase productivity and promote the business image. Diversity at the workplace is the key to stay competitive and to be able to cope to the fast changing economy. “Given the global nature of business today, organisations have to create very specific and effective recruitment efforts to build a deep reservoir of global as well local talent to staff all their organisational levels. (Jolton et al, 2010)

As example we can spot the light to Tesco operating in UK where people from different culture and background lives. “Tesco recognises that every person is different and will bring unique talents and experiences to a role”. (The Times 100, 2013).

According to Tesco; “Difference can be our strength because talent and diversity are two sides of the same coin. To focus on one while ignoring the other is like trying to run a store with no customers – it just won’t work’”. (The Times 100, 2013).

3.2 Employee Diversity Challenges.
However some challenges can draw, if diversity is not correctly managed in our organisation, as we can face negative outcomes in communication and productivity

Resistance to change from majority and cultural clashes may occur, people tend not to accept each other easily especially if they consider minority inferior, or not as qualified to compete for a promotion or a career development. Cultural diversity may create a barrier between majority and minorities what can affect teamwork and participation. Communication flow might be distracted; people tend to be more involved in relationships with colleagues having the same culture and background, as they share same point of view and lifestyle, minorities can be left out of the company mainstream. Minorities will start to be unmotivated and not satisfied in the work environment and significant turnover and absenteeism can face the company.

Diversity can enhance creativity, however minorities being ignored and less valued, will affect their enthusiasm and involvement in the company goals and achievement, and they won’t be able to perform efficiently and effectively due to the low morale. “Conversely, the proponents of relativity argue that failure to adapt HR practices to the needs of a diverse population may alienate much of the workforce and reduce their potential contributions”. (Gomez-Mejia et al, 2012)

1- Mahapatro,. Bhussan,B., 2010. Human Resource Management. New Delhi: New Age International Limited. Available from: [Accessed 30 June 2013]. 2- The Times 100 Business Case Studies, 2013. Flexible working patterns An Audit Commission Case Study. The Times 100. Available from: [Accessed 3 July 2013]. 3- Gomez-Mejia,L., Balkin,D., and Cardy,R,. 2012. Managing Human Resources. Seventh Edition. United States of America. Pearson Education, Inc. 4- Jolton,J,. Lundby, K,. 2010. Going Global: Practical Applications and Recommendations for HR and OD Professionals in the Global Workplace. United States of America: Jossey-Bass. Available from: [Accessed 16 June 2013].

Human resource is the most important asset for an organisation

We know that manpower is playing a very important role in the entire organization as well as in economic. Why is the manpower very affecting toward every organization? Human resource can be defined as labor as well as all the employees within the entire organization regardless of rank. Human resource is a resource provided by labor. Peoples whoever working in a company consider employee including of higher management such as general manager and operation manager. For every organization needed labor in order to maintain the productivity of every sector. Meanwhile, organization must require professional to manage the labor, we call that human resource management. Human resource management is to maintain and manage in the labor sector of an organization. Human resource department is a group of professional that doing labor management such as recruitment, labor welfare, academic and research of staff training, management of performance appraisal of staff, benefits and compensation and employee relationship.

When comes to human resource, it is also discuss about productivity in every sector of an organization. Nowadays, we understand that technology is growing rapidly in past decade, it brings huge impact for every sector including of human resource. It could be in positive and negative. We understand from Jared Lewis (n.d), some of the areas in human resource had significantly impacted by technology such as recruiting, training and data storage. Recruitment traditionally relies on publication on multimedia such as newspaper and poster. Since the technology was growing in past decade, we are realize that job vacancy are lesser appear in newspaper or street poster but Internet. Now people are more easy to seek opportunity in one platform which is Job website. I believe everyone has been through some training.

We could realize that most of the training was conducted with technology. In human resource, HR professional could be more efficient to reach every single employee by using technology such as training and access of personal particular of employees. On the other hand, some of the industries have more negative impact in human resource. Example in production industry, we know that machines provide efficiency and productivity; in the same time human resource are affected. Contrary, some of the industry required more human resource such as retail and food & beverage industry.

For my point of view, technology critically impacted human resource sector. However, in certain way that human resource still irreplaceable. In economic, people study different impacts toward the economic growth; one of the critical factor could affect economic is unemployment. As we know Singapore is a country with no natural resources. Report from UNESCO Singapore in 2008, Singapore treated human capital is the most valuable asset for the country. Within an organizations. Human resource is also one of the most important assets. How could human capital affect the entire organizations? As we know people manage the entire system of an organization. In every sector of an organization needed human capital in order to process. Therefore, we realize high turn over rate of a company is not a good sign. Labor keep changing within a company lower the productivity; labor low confident and low morale brings huge impact in productivity.

Some of the companies realize this valuable asset has high potential growth opportunity toward the company. We could see most of the company really taking care of their labor, which they will implement, benefits or provide allowance for their workers such as attendance allowance, best worker of the month rewards. Some of the small enterprise may also provide company trip as well. As we know that all above benefits and allowance had given to the workers is to maintain high morale and encourage workers; this is of the common strategy used in human resource management.

Beside reward, there are some strategy was implemented to sustain low turn over rate such as sending employee to training and skill development courses to improve in quality of work force. Not necessary only HR department uses human resource management. In every single department in a company needed human resource management, which handled by the head of department. In order to ensure the operation well progress, superior have to be manageable and interactive to the subordinates.

Compare to past decade, we realize that most of the industry were computerized and it brought huge impact toward labor force. However, human resource is still very important in every sector. Human resource is flexible, high potential of growth and manageable. As we know, in every sector needed people to operate and ensure the operation flow going smooth including machine and computer operation. Changes in human source could affect every single corner in an organization. Nowadays, companies are more concern the issue of human resource; companies are trying as best as they can to sustain low turn over rate and improve quality of labor in order to bring the company towards growth. In every field, human resource is one of the keys to success and we realize human resource is the most valuable and important asset to the organization.

Google: Human Resource Strategy

Developing an effective human resource strategy to manage an organization’s human assets requires considering employees as investments. Such an approach helps ensure that HR practices and principles are clearly coordinated with the organization’s overall business strategy. It also forces the organization to invest in its best opportunities and ensures that performance standards are met. Google is one company that has reinvented their approach to human resource strategies. Google has renamed their human resources to people operations. Several human resource strategies have made Google what it is in today’s market. The top HR strategies that have made Google a success include strategies in management, hiring, and recruitment, training and development, compensation and their 70/20/10 rule. The rationale behind each of these strategies is easily revealed through their overall business strategy.

Keywords: human resource strategies, people operations

Google: Human Resource Strategy
Google has renamed human resources to people operations. This encourages employees to participate in running the company and building effective teams. One philosophy that Google focuses on is what they consider people management when it comes to human resource strategies. Sullivan (2013a) reveals a top priority for Google. They believe that innovations come from people and you cannot maximize innovations unless you are capable of recruiting and retaining innovators. Google uses a human resource strategy called databased decision-making strategy.

This human resource strategy has been highly successful in attracting innovators and managing them within the company. “Almost everyone has heard about Google’s free food, 20% time, and wide range of fun activities but realize that each of these was implemented and are maintained based on data” (Sullivan, 2013a). The following will be a brief description of some human resource strategies that Google uses for their people management practices as it relates to a data-driven approach. Management HR Strategy

Human resource managers at Google have determined that great managers are essential for top performance and retention. One practice they use to keep manager’s performance high is to have their employees rate managers twice a year. The researched data proved that Google could maintain its success not by superior technical knowledge but by one-on-one coaching with management, which included expressing interest in employees and providing personalized feedback to those employees. Google also uses the PiLab. The PiLab conducts applied experiments within Google to determine the most effective approaches for managing people and maintaining a productive environment (Sullivan, 2013b). This data driven strategy has provided results to human resources on the approaches of how to be successful in their HR strategy. Hiring and Recruitment HR Strategy

Google is also unique in its strategic approach to hiring because its hiring decisions are made by a group in order to prevent individual hiring managers from hiring people for their own short-term needs. They are explicitly seeking to attract the kinds of people to the company who will be successful in their open, collaborative culture (Zhong, 2011). Hiring the right people is a key HR strategy at Google. Their retention rate and turnover data proves that the organization has been successfully able to attract, retain, and motivate a younger generation of workers who would otherwise be more apt to leave an organization. Training and Development HR Strategy

Another important HR strategy for Google is in its training and development program. Google employees are offered tremendous opportunities to learn and grow. Some of the professional development opportunities include classes on individual and team presentation skills, content development, business writing, executive speaking, delivering feedback, and management and leadership (Lawler, 2014). Google pays special attention to training for engineers due to their level of importance to the success of the company. They want to ensure the engineers as well as other employees have received the mandatory training and development sessions for a minimum of 120 hours per year. This is about three times the industry average in North America of 43 hours per year. Despite the cost to Google, this is an essential part of their HR strategy and contributes to their overall business strategy.

Compensation HR Strategy
Google has an unusual HR strategy when it comes to its compensation structure. Google is often known as one of the most sought after and yet one of the most underpaying employers in the industry. Despite this, employees are still attracted to working their dream job at Google. More frequently than not employees are attracted to the support system, that can help them create anything rather than monetary returns. Therefore, the work hives at Google have day care and elder care centers, have spa and hair salons, car wash and oil check facilities, and virtually everything that a technology obsessed geek would like to worry least about, in the form of an all-inclusive liberal benefits package, but the actual take‐out cash component is negligible (Sullivan, 2013b). Google offers all employees unlimited sick leave as well as 27 days of paid time off after one year of employment. This is highly unusual for most organizations but Google believes in an even work live balance and keeping their valued employees returning to work happy. 70/20/10 Rule HR Strategy

Another important HR strategy for Google is the 70/20/10 rule. This HR strategy ensures creativity remains a top priority at Google. Employees are required to divide their time into the following three parts: 70 percent is spent on search and advertising

20 percent (1 day of the work week) on a project of their own choice 10 percent to far-out ideas HR believes that with this strategy, employees will remain motivated and committed to innovation and novelty and therefore production will increase. Because of this rule, some very successful ideas have emerged such as Gmail, and Google Talk. HR Strategy Rationale

Google is continuing to grow every year, and some of these HR strategies are becoming more challenging. Behind every strategy comes rationale for using it and how it provides continued success within the company. It is important to note that HR strategies, activities, and policies are actually driving Google’s corporate business success. Google’s HR strategies reveal that the company’s approach helped in increasing employee productivity. The average Google employee generates more than $1 million in revenue each year (Lawler, 2014). The following will give rationale for each strategy previously discussed. People Operations Rationale

People operations focus on the idea that HR is not just administrative functions but ideally focuses on the meat of the company. The meat of the company is people or human capital. Human capital is the stock of knowledge, skills, and abilities among employees that provide economic value to the organization (McShane, 2013). This rationale was developed as part of the overall business strategy at Google. Google takes pride in their human capital by ensuring they are part of the team and actively involved in the decision making process (Bock, 2011). Human capital can also consist of employee capability, employee satisfaction, and employee sustainability. These three components of human capital are considered an essential part of organizational growth.

Employee capability is the creativity and knowledge that an employee contributes to the organization. Employee satisfaction refers primarily to an employee’s emotional or affective state. An employee’s overall satisfaction relates positively to job satisfaction, reflecting the difference between what the employees want from their job and what they perceive it as offering to their overall success within the organization. If employee satisfaction is high, then an employee’s commitment to the organization is high which will result in a greater retention of that employee. Management Style Rationale

The main philosophy at Google that backs up their management style is open door policy. Top management leaves their office door open in order for workers to feel free to come and talk directly versus phone or email communication. The official policy states in part Google desires to maintain a friendly, cooperative atmosphere between employees and all levels of management. Consequently, the company provides opportunities for you to express yourself without recrimination. If you have a problem with your manager that, despite your mutual efforts, cannot be resolved, you may discuss this with the next higher level of management or with human resources. While Google prides itself on being an open organization where you can approach any member of management directly, we recommend you first attempt to resolve the issue through your manager or human resources (Gupta, 2009). This open style of management allows better communication between staff and management, and can help ensure staff is more productive at solving problems that may arise. Hiring and Recruitment Rationale

The rationale for using small teams to do all the hiring for Google is quite simple. These teams seek to recruit and hire the most qualified individuals out of thousands of applicants. The hiring decisions are made by a team in order to prevent individual hiring managers from hiring people for their own short-term needs. Human resources also approach recruiting scientifically. They have developed a way to predict which candidates have the highest probability of succeeding after they are hired. This rationale saves time and money, and provides a greater success rate for new applicants turning into long-term employees. Training and Development Rationale

A properly trained employee is an essential part of maintaining a successful organization. Research has shown that a majority of people learn by on the job training, including a hands-on approach. Google has adopted this rationale for their training programs by not focusing only on classroom training but by placing emphasis on hands-on training. Google has increased discovery and learning through project rotations, and learning from failures (Sullivan, 2013a). They believe a well-trained employee will increase production as well as increase the company’s reputation. As productivity and reputation rises the profits will also rise. Compensation Rationale

Rationale behind the lower compensation packages offered at Google has to do with the importance of work/life balance philosophy. As previously discussed Google places a significant amount of importance on the benefits offered instead of the actual monetary salaries. Money is important to survive but Google also wants to make everyday life easier for employees by offering in house daycares, and free meals along with many other benefits. If they can keep the employees from spending their work time performing life chores, then they will increase productivity by improving the employee’s job satisfaction. 70/20/10 Rule Rationale

This concept allows the employee to grow in their abilities as an employee and as a person. By allowing this concept, Google is reinforcing its relationship with its staff and developing brand strength externally. Good news spreads quickly. As a happy employee who enjoys spending time creating their own projects, shares with outside friends and family, this increases customer satisfaction for the brand name of Google. This rule is part of Google’s HR strategy as well as their business model strategy. Analysis of HR Strategy

Google has developed an effective HR strategy that does align with their overall organizational strategy. One of the biggest parts of their organizational business strategy is to focus on people. Google executives have learned that continuous innovation cannot occur until a firm makes a strategic shift toward a focus on great people management (Sullivan, 2013b). By shifting to this idea of hiring great people versus hiring mediocre people, the business decisions will reflect their knowledge, skills, and ability.

Executives at Google have a clear understanding of strategies in the human resource department, and have a clear understanding of how they effectively tie into the overall business strategy of the company. One thing they have done successfully is to focus all business decisions on data and analytics. This is evident in the HR department with how they make their decisions. A mission goal that they highlight is to bring the same level of rigor to people-decisions than they do to engineering decisions (Sullivan, 2013b).

Reinventing the HR strategy at Google has been a success. Top executives coached effective ways to measure human resources so they can improve in this area. One deficient area Google was able to recognize was the areas of predictive analytics, statistics, and mathematics that would be needed to transition into the databased model of a HR strategy. Change can be difficult, and some HR managers are not open to this idea of a data based approach when they consider HR to be a people based function.

The transition to the data based approach of HR could have been introduced in a more effective manner among current HR managers at Google. When this concept was first introduced, it was done ineffectively. Management decided to change the strategy and without warning made it effective. Open communication is key to effective strategies within an organization. A change of this magnitude needs to be tested, and employees should be coached and eased into before it can be an effective change. HR’s Effectiveness and Metrics

HR metrics is important because it allows organizations to make the connection between the value of what HR is doing and the outcomes of the business. One of the key metrics within Google that make their HR strategies effective is the revenue factor. It indicates the effectiveness of company operation with the use of the employees as their human capital. Without this key metric, human resources would be the same as any other organization. Changes and Alternatives

After researching Google, it is hard to think of many needed changes to their already effective HR strategies. I would recommend to HR and management that they continue to stress the importance of training and development with all current employees as well as any new employees. I would also recommend that HR take full advantage of continuing to implement the job rotation strategy. This will provide employees insight to each department, and the job duties of other employees as well as the different jobs available at Google. Call to Action

In order to implement these recommended changes it will be necessary to call to action all management and the human resources department. One way for training and development to remain a top priority to all employees is to
develop a reward system for completing the required number of hours of training, and additional rewards for extra training in the employees’ area of expertise. These rewards should be monetary.

Human resources should develop a rotation schedule with the help of the employee’s on-site manager. Once the employee is properly trained in their area of expertise they should then be rotated through each department that works directly with their department. This will not only help employees learn about the other departments but they will also gain an understanding of the duties of other employees. This will make requests from other departments less stressful to all employees, as they will know what it takes to generate and submit that information. Conclusion

Google has placed great emphasis on the people within their organization and made these valued people part of their HR strategies. This strategy has been highly successful to this organization. Many organizations could benefit from the simple HR strategies that Google has focused on in their company. Sometimes it is not what you know but whom you hire. This is a common philosophy at Google as they strive to continue to hire great people to do a great job.

Bock, L. (2011). Yale Insights. What’s the Google approach to human capital?. Retrieved August 11, 2014, from Gupta, A. (2009). Strategic HR Planning at Google Inc. Scribd. Retrieved August 17, 2014, from Lawler, E. (2014). What Should HR Leaders Focus On In 2014?. Forbes. Retrieved August 17, 2014, from McShane, S. L., & Von Glinow, M. A. (2013). Organizational Behavior Emerging Knowledge Global Reality. (6th ed). New York: McGraw-hill Irwin. Sullivan, J. (2013a). How Google Became the #3 Most Valuable Firm by Using People Analytics to Reinvent HR. Retrieved from Sullivan, J. (2013b). How Google Is Using People Analytics to Completely Reinvent HR. TLNT. Retrieved August 19, 2014, from Zhong, R. (2011). Human Resource Management Issues at Google. Human Resource Management Issues at Google. Retrieved August 15, 2014, from

Human Resource Management

Human Resource Management (Fall 2013)
MGMT 351

I Feel Great

Les Partain, manager of the training and development department for Gazelle Corporation, was 64 years old and had been with the firm for over 30 years. For the past 12 years he had served as Gazelle’s training and development manager and felt that he had been doing a good job. This belief was supported by the fact that during the last five years he had received excellent performance reports from his boss, LaConya Caesar, HR director. Six months before Les’s birthday, he and LaConya were enjoying a cup of coffee together. “Les,” said LaConya, “I know that you’re pleased with the progress our T&D section has made under your leadership. We’re really going to miss you when you retire this year. You’ll certainly live the good life because you’ll receive the maximum retirement benefits. If I can be of any assistance to you in developing the paperwork for your retirement, please let me know.” “Gee, LaConya,” said Les. “I really appreciate the good words, but I’ve never felt better in my life, and although our retirement plan is excellent, I figure that I have at least five more good years.

There are many other things I would like to do for the department before I retire. I have some excellent employees, and we can get many things done within the next five years.” After finishing their coffee, both returned to their work. As LaConya left, she was thinking, “My gosh, I had no idea that character intended to hang on. The only reason I gave him those good performance appraisals was to make him feel better before he retired. He was actually only an average worker and I was anxious to move a more aggressive person into that key job. We stand to lose several good people in that department if Les doesn’t leave. From what they tell me, he’s not doing too much of a job.”

1. From a legal viewpoint, what do you believe LaConya can do regarding this
situation? Discuss.

2. What actions should LaConya have taken in the past to avoid her current predicament? __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Human Resource Forecasting


Reference: Adapted from Human Resource Forecasting Assignment, pp 108 – 110 in Nkomo, S. M., Fottler, M. D., McAfee, R. B. (2008) Human Resource Management Applications: Cases, Exercises, Incidents, and Skill Builders, 6th Edition

Due date: Week 9


•Practice in forecasting an organisation’s people needs •To familiarize you with some of the factors that affect an organisation’s future people needs •To familiarise you with the complexities involved in making human resource forecasts •To point out that all human resource forecasting is based on assumptions and that these assumptions are critical to the accuracy of the forecast


It has been a busy year with staff turnover, new employees and new equipment on order. Your CEO has requested a forecast of the human resource needs for North West Regional Hospital for the coming years.

North West Regional Hospital (NWRH) is a purpose built, 180-bed inpatient facility and the largest regional hospital in the state. NWRH also has 15 outreach sites located throughout tropical, northern Australia, each of which employs approximately 17 individuals. In total, NWRH currently employs 700 people.

Over the coming three years, NWRH is planning an expansion into additional regional areas and expects to add 25 new outreach sites. Each outreach site varies in size according to the needs of the community, so the figures represent averages.

During the past month, NWRH has placed an order for 3 new dialysis machines to increase its renal support services. These machines are scheduled to be in operation December 31, one year from now in existing outreach sites only. NWRH has found that for each new machine purchased requires four (4) additional nurses, on average. In addition, five (5) new doctors are added in year 2. A breakdown of NWRH’s current staffing is shown in Table 1.

Your CEO has asked you to perform three human resource-forecasting tasks. First, based on the assumptions given below, you are required to determine employee turnover for the inpatient facility office, the old outreach sites, and the new outreach sites. The CEO would like to know this information for each of the next three years and for each of the major personnel categories (i.e., Doctors, Nurses, and Inpatient Facility Administration staff).

Your job is to complete Table 2.

Second, your CEO would like to know the number of new employees NWRH will need to hire for each major personnel category for each of the next three years.

Your job is to complete Table 3.

Finally, your CEO would like to know the total number of employees who will be working for NWRH as of the end of each of the next three years.

Your job is to complete Table 4.

Table 1: Present staffing
Total Employees700
Number of outreach sites15
Doctors per outreach site5
Number of Doctors75
Nurses per outreach site12
Number of Nurses180
Outreach facility employees255
Inpatient Facility Employees445

Table 2: Turnover
Employee CategoryCurrent YearYear 1Year 2Year 3
Old outreach site Doctors
Old outreach site nurses
Inpatient facility
New outreach site Doctors
New outreach site nurses

Table 3: Number of Employees to be hired
Employee CategoryCurrent YearYear 1Year 2Year 3
Old outreach site Doctors
Old outreach site nurses
Inpatient facility
New outreach site Doctors
New outreach site nurses

Table 4: Year-End Employment
Employee CategoryCurrent YearYear 1Year 2Year 3
Old outreach site Doctors
Old outreach site nurses
Inpatient facility
New outreach site Doctors
New outreach site nurses

In order to complete your assignment, your CEO has told you to make a number of assumptions. They are:

A.You are making all projections in December for subsequent years ending December 31

B.With regard to the existing outreach offices, assume

a.The 15 existing outreach offices employ 5 doctors and 12 nurses each. b.On December 31 (one year hence) 3 new dialysis machines are placed in operation and require an additional 12 nurses (4 per machine). c.On December 31 in the 2nd year, 5 new doctors are employed. d.Turnover rate is 40 percent for nursing personnel, and 20 percent for doctors.

C.With regard to new outreach sites, assume
a.New outreach sites are added as follows: 6 in Year 1, 10 in Year 2, and 9 in Year 3. b.Each new outreach site employs 17 individuals (5 doctors and 12 nurses). c.Turnover is 30 percent for nurses, and 20 percent for doctors.

D.With regard to the inpatient facility, assume that turnover will be 15 percent per year.


References:Adapted from Job Analysis: Writing Job Description, pp 97-99 in Nkomo, S. M., Fottler, M. D., McAfee, R. B. (2008) Human Resource Management Applications: Cases, Exercises, Incidents, and Skill Builders, 6th Edition

Note: For your presentation in Week 5, you will use one (1) Job Description to develop one (1) Advertisement to present as a group. The developed advertisement cannot be used in the Portfolio Assignment.


•To familiarise you with the job analysis process and with job descriptions •Practice in writing job descriptions
•To make you aware of different methods for recruiting candidates and stand out from the crowd

INSTRUCTIONS:Job Analysis, Writing Job Descriptions and Recruitment Advertising

You are required to write three (3) job descriptions, one (1) job advertisement, and one (1) selection criteria for the Portfolio Assignment.

The job advertisement should reflect one (1) selected job description (choose one (1) – doctor, nurse, and inpatient facility administrator), and the selection criteria should reflect the selected job advertisement to create a flow in your portfolio.

A.Draw up a set of job descriptions for each of the (3) positions in the case (doctor, nurse, and inpatient facility administrator).

You may use whatever sources you want, including interviewing people you may know in these positions or similar positions or searching relevant web sites as you want job descriptions and lists of duties that apply specifically to regional hospitals and outreach facilities.

The Job Analysis Questionnaire (below) can be used as a guide to help determine the major responsibilities and tasks of the job and the required knowledge, skills, abilities, and personal characteristics needed to perform the job.

Remember to write the job description using action verbs when describing the employee’s tasks, duties, and responsibilities. It is also important that specific duties be grouped and arranged in descending order of importance.

The complete job description should follow the format shown in sample provided (below).

B.Choose (1) job description to draft one (1) job advertisement, to attract the right people to apply for that position. Write the advertisement as if it will appear on an online employment agency (e.g. It will need to stand out amongst the many thousands of other positions being advertised.

Job Analysis Questionnaire
A.Job Responsibilities and Duties
a.Job title
b.Department title and/or division title
c.Title of immediate supervisor
d.Description of duties (describe the duties in enough details to provide a complete and accurate description of the work) i.Provide a general overall summary of the purpose of your job ii.What are the major results or outputs of your job?

iii.Describe the duties and tasks you perform daily; weekly; monthly.

iv.Describe duties you perform irregularly.
e.List any machines, instruments, tools, machine, materials, and work aids used in your job. Indicate percent of time used. f.Describe the nature of your responsibility for nonhuman resources (money, machinery, machine and so on). What monetary loss can occur through an error? g.What reports and records do you prepare as part of your job? When are they prepared? h.What is the source of instructions for performing your job (e.g. oral or written specifications)? i.Describe the nature and frequency of supervision received. j.How is your work reviewed, checked, or verified?

B.Reporting Relationships
a.How many employees are directly under your supervision? What are their job titles? b.Do you have full authority to hire, terminate, evaluate and transfer employees under your supervision? Explain. c.What contacts are required with other departments or persons other than you immediate department in performing you job? Describe the nature and extent of the contacts.

C.Working Conditions

a.Describe the working conditions present in the location and environment of your work such as cold/heat, noise, fumes, dust, and so on. Indicate frequency and degree of exposure b.Describe any dangers or hazards present in your job.


Job Qualifications (Be certain not to list the incumbent qualifications, but what is required for performance by a new employee). a.Describe the kind of previous work experience necessary for satisfactory performance of this job. b.What is the amount of experience required?

c.What kinds of knowledge, skills, and abilities (KSAs) are needed to perform the job? d.What is the minimal level of education (grammar, high school, degree etc.) required? e.Are any special physical skills and/or manual dexterity skills required to perform the job? f.Are there any special certification, registration, license, or training requirements?

Sample Job Description
Job Title: Shift Supervisor (Mining)
Position Purpose: The purpose of this position is to maintain a safe and efficient plant operation through directing the activities of the operation’s personnel and providing a management support function for the plant superintendent.

Typical Job Duties:

1.Directs the activities of the operations personnel and coordinates the activities of the maintenance personnel. 2.Issues written communication to employees concerning personnel policies and operational concerns. 3.Administers a maintenance request program through collecting requests, scheduling, and recording maintenance activities. 4.Administers the plant tagging procedure.

5.Conducts the training and safety programs for shift employees. 6.Schedules shift assignments to reflect workload and vacation schedules. 7.Performs administrative tasks such as recording workers’ time, maintaining records concerning operational activities, and updating written procedures. 8.Prepares annual budget for assigned plan area and maintains the inventory level on these items. 9.Appraise performance of shift employees annually

10.Counsels employees on disciplinary problems and job-related performance. 11.Assumes plant superintendent’s duties when assigned.

Physical Requirements: walking and climbing stairs
Working conditions: Remote locations; secure fully furnished housing is provided. Quarterly rotations between locations are available. Four day rotating roster with morning, afternoon and night shifts. Machine and Machines Used: CRT, spectrometer, PH metre, conductivity metre Reporting Relationships: The shift supervisor reports directly to the plant superintendent. The shift supervisor directs the control room operator, two or more utility operators, trainees, and other assigned personnel, and coordinates the activities of the maintenance personnel present on shift.


Education: Associate degree or equivalent training (e.g. management training classes) OR five (5) years of management experience Related Experience: Minimum of three (3) years as a control room operator for a coal-fired boiler operation.

Job Knowledge/Skills Required:

1.Comprehensive understanding of plant systems.
2.Fundamental understanding of electrical systems and motor control centres.

3.Thorough knowledge of boiler chemistry.
4.Comprehension of flow, logic, and electrical prints.
5.Ability to perform elementary mathematical and algebraic calculations.

6.Communication and human relations skills.
7.Ability to operate CRT, spectrometer, PH metre, and conductivity metre.

8.Managerial skills.



Adapted from Selection Decisions, pp 131-138 in Nkomo, S. M., Fottler, M. D., McAfee, R. B. (2008) Human Resource Management Applications: Cases, Exercises, Incidents, and Skill Builders, 6th Edition

Selection Criteria adapted from Practical Exercises: Graduate trainee selection at Yarra Bank, pp 269–271 in Stone, R. J. (2010) Managing Human Resources, 3rd Edition


•To help you develop skills in developing selection criteria and evaluation measures •To make you aware of the complex criteria often used to select candidates •To help you develop skills in planning and implementing semi-structured interviews •To give you practice in preparing for the selection interview

INSTRUCTIONS:Selection Criteria

Using the job description, you chose for the job advertisement:

1.Develop a list of key selection criteria for an upcoming vacancy in this position in terms of experience, qualifications, skills/abilities, personal qualities and special requirements (see template below).

2.Outline how you would evaluate the candidates on each criterion. What questions would you ask?

3.Identify your interview selection panel. Indicate the number of people to be on the panel, the positions that they hold and provide a brief explanation of why they are required on the panel.

Key selection criteria
What type of and how much experience is required to perform this job successfully?

What are the minimum formal educational qualifications required to perform this job successfully?

What special skills and/or abilities and knowledge are required to perform this job successfully?

Personal Qualities:
What special personal qualities (physical characteristics and personality characteristics) are required to perform this job successfully?

Special requirements:
What special requirements are required to perform this job successfully?

Human Resource

1.1 Distinguish between personnel management and human resource management: There is not a really big difference between Human Resource Management and Personnel Management, in actual fact “Human Resources” have largely replaced the term “Personnel Management”. Human Resource Management is basically much broader in scope than Personnel Management.

Personnel Management can be described as reactive. The reason why I would say this is because of the way they operate. An example of this would be that they respond to demands and concerns as they are presented. Personnel Management could also be seen as a independent way of managing. It is a sole responsibility of the organization.

On the other hand, Human Resource Management could be described in two ways: Strategic and Proactive. The reasons behind those there strategies are ongoing and they constantly work towards managing and developing an organizations workforce. It can be seen as Proactive because of their continuous development and functions to improve the company’s workforce. Human Resource Management is the type of Management where almost everybody
in Managing Position can play a part in Training and Development. They aim to have many different Managers in various departments with the necessary skills to handle employee tasks at hand.

When a difference between personnel management and human resources is recognized, human resources are described as much broader in scope than personnel management. Human resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization. A primary goal of human resources is to enable employees to work to a maximum level of efficiency.

1.2 The function of the human resource management in contributing to organizational purposes: Human Resources Management is an important asset to any business. It provides expertise in: Managing change and facilitating training and development

Recruitment, selection and employee relations
Pensions and benefits
Communicating with employees

The main functions of HRM are to employ people, to develop their resources and to utilizes maintain and compensate their services for the organization. Other HRM functions and activities are falling under the following categories: Firstly the organizational design, because acquiring HRM capability should begin at the origins and involves interactions between people, technology and the tasks to be performed in context with the organizations objectives, goals and strategic plan (e.g. job design, team building, restructuring etc.). Furthermore the staffing, which involves recruitment, employee orientation, selection, promotion and termination processes and the performance management including individual assessments, improving and measuring work performance. HRM is also concerned with employee and organizational development programs to maintain and improve employee skills as well as reward systems, benefits and compliance available for staff (also: laws, policies, health and safety).

1.3 The role and responsibilities of line managers in human resource management: Line managers are those managers to whom individual employees or teams directly report and who have responsibility to a higher level of management for those employees or teams.

The term ‘front-line managers’ is rather more specific and normally refers to line managers in the lower layers of the management hierarchy – that is, where the employees who report to them do not themselves have any managerial or supervisory responsibility. Front-line managers are often promoted from within and are unlikely to have formal management education.

An HR manager’s role is to ensure that business managers apply HR policies and procedures consistently through all business units. This helps to develop partnerships across different teams, which supports corporate aims and objectives. Typically the management responsibilities carried out by line managers might include: Day-to-day people management

Managing operational costs
Providing technical expertise
Organization of work allocation and rotes
Monitoring work processes
Checking quality
Dealing with customers/clients
Measuring operational performance.

1.4 The impact of the legal and regulatory framework on human resource management: The legal framework governing human resource development in organizations can be as important as other human resources laws, but it is seldom fully reviewed. Factors defining this framework are presented, followed by a model for identifying the domains of HRD for which laws and regulations can apply. Legal mandates for training, particularly in the areas of drugs, safety, and for certain occupational training, are examined. Rules governing apprenticeship programs are reviewed in this context, too. The features of intellectual property law, ethics, and privacy as they relate to the practice of human resource development are presented. Tax laws
and regulations also impact human resource development; those rules are reviewed. Laws covering employee compensation are then examined.

Legislation involved in recruitment:
There are various laws which must be considered during the recruitment process which includes legislation regarding discrimination and equality as well as other ethical issues. Employers could risk heavy penalties if they were found to be breaching the laws.

The Equality Act 2010 brings together a number of old legislations together into one law. This covers all aspects of discrimination in the workplace including age, sex, orientation, race and religion. It also includes gender realignment and pregnancy and maternity. Victimization occurs when an employer treats an employee unfairly because they have brought a claim under the Equality Act. The Sex discrimination act 1975/97 states that employees are protected from discrimination on the basis of their gender or sexuality under the Equality Act 2010. Protection from discrimination applies to recruitment; terms of employment; access to training and promotion; access to benefits, facilities/services and dismissal. Sex discrimination occurs when an employee or potential employee receives unfair treatment because of his/her sex.

2.1 The reasons for human resource planning in organizations: HR Planning involves gathering of information, making objectives, and making decisions to enable the organization achieve its objectives. Surprisingly, this aspect of HR is one of the most neglected in the HR field. When HR Planning is applied properly in the field of HR Management, it would assist to address the following questions: How many staff does the Organization have?

What type of employees as far as skills and abilities does the Company have? How should the Organization best utilize the available resources? How can the Company keep its employees?

HR planning makes the organization move and succeeds in the 21st Century that we are in. Human Resources Practitioners who prepare the HR Planning
program would assist the Organization to manage its staff strategically. The program assists to direct the actions of HR department.

The program does not assist the Organization only, but it will also facilitate the career planning of the employees and assist them to achieve the objectives as well. This augment motivation and the Organization would become a good place to work. HR Planning forms an important part of Management information system.

2.2 The stages involved in planning human resource requirements: Human resource planning is a systematic analysis of HR needs to ensure the availability of the correct number of employees with the necessary skills at the right time. The increased competitive nature of business that makes workforce flexibility – an imperative need has raised the importance of human resource planning.

The steps for effective HR planning encompass demand forecasting, supply forecasting, audit, reconciliation or affecting a demand-supply fit, and control.

Demand Forecasting
The steps to HR Planning start with forecasting the number and type of employees needed in the future. This requires a good understanding of the internal and external environment of the enterprise. The major aspects of the internal environment that affect HR Planning include short-term and long-term organizational plans and strategies, and the status of the organization’s human resources.

Inventory Analysis and Supply Forecasting
The second step in HR planning is inventory analysis or keeping track of the current employees in the organization to determine the extent to which this meets the forecast. The HR inventory analysis entails Skill inventory, or keeping track of the number of employees, and the age, locations, qualifications, and skills of each employee Forecasting resignations and recruitment and understanding their impact on the skill inventory levels
Forecasting leaves, transfers, dismissals, sabbaticals, prolonged illness, and deaths of employees and their impact on inventory levels

The third step in HR planning is audit, which includes reconciling inventory with forecast through a systematic analysis of demand and supply forecasting, and identifying areas where shortages and surpluses exist. The audit phase also involves, among other tasks: Identifying reasons for resignations and devise retention plans to retain key talent, if required Review the effectiveness of the recruitment activities, training and development initiatives, career planning exercises, succession planning, and other interventions

The next step in HR Planning is developing action plans to bridge the gap between forecast and supply. The various alternatives include: Strategy to recruit new employees
Retrenchment of downsizing strategy to shed excess workforce Training and Development plans to right-size the workforce
Career Planning and Succession Planning to identify key personnel Changes in work regulations such as timings, overtime policy and the like Control
The last step in HR Planning is monitoring and controlling implementation of the HR plan. This entails ensuring implementation proceeds in accordance with the plan and taking timely course corrections. The external and internal environment of an enterprise always remains in a state of flux, and a good HR Plan incorporates mechanisms to make timely revisions in accordance with such changes.

2.3 Compare the recruitment and selection process in two organizations: The process of recruitment & selection deals with the attainment of organizational objectives by selecting the most appropriate candidate. Internet has become the most effective method of recruitment as it saves time and cost of the Recruiters and the Candidates too.

In order to achieve the objectives of the organization the HR also follow some practices like Ability Tests, Behavior based interviews and also analyze the candidate’s knowledge required for the concerned job. Initially, it involves short listing of those candidates who are eligible for the mentioned profile. Then, the candidate is required to present his ability and knowledge by undertaking some tests which are based to analyze the knowledge of the candidate. Then the candidates are required to take interview on the basis of which the skills of the candidates are evaluated. Then after this stage, HR selects those candidates whom he thinks will prove to be beneficial for the organization.

Recruitment and Selection Process of Tesco:
Internal recruitment
Tesco first looks at its internal Talent Plan to fill a vacancy. This is a process that lists current employees looking for a move, either at the same level or on promotion. If there are no suitable people in this Talent Plan or developing on the internal management development program, Options, Tesco advertises the post internally on its intranet for two weeks.

External Recruitment
For external recruitment, Tesco advertises vacancies via the Tesco website or through vacancy boards in stores. 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.

Selection involves choosing the most suitable people from those that apply for a vacancy, whilst keeping to employment laws and regulations. Screening candidates is a very important part of the selection process. This ensures that those selected for interview have the best fit with the job requirements.

In the first stages of screening, Tesco selectors will look carefully at each applicant’s curriculum vitae (CV). The CV summarizes the candidate’s education and job history to date. A well-written and positive CV helps Tesco to assess whether an applicant matches the person specification for the job.

A candidate who passes screening attends an assessment centre. The assessment centers take place in store and are run by managers. They help to provide consistency in the selection process. 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.

Recruitment and Selection Process of British Airways:
“Recruitment is closely monitored to ensure that it is only authorized if the Company is confident that the business need is critical”

So, it can be concluded that BA is following a balanced combination of both models in order to maintain efficiency and cost effectiveness by carefully hiring and training employees and on the other hand self-satisfaction and benefit of workers by using a humanistic approach.

British Airway’s focus on establishment of effective recruitment and selection methods and more importantly on training and development of employees can be understood by this increase of 5% on the employee costs.

Townley argues that “organizations are increasingly likely to focus on more general attributes and values than narrow task-based criteria.” Barclay explains the fitness of organizations are expressed in terms of personality, attributes, flexibility, commitment and goals rather than the ability to do specific job for which person is being recruited. Torrington and Hall termed these general but valuable attributes as organizational criteria. It now depends on the nature of organization that what attributes are much valuable for them than other. In case of British Airways, the massiveness and expanding nature of organization requires candidates with flexibility and adoptability and ‘utmost professionalism’.

2.4 The effectiveness of the recruitment and selection techniques in two organizations: Recruiting staff is a very costly exercise. It is also an essential part of any business and it pays to do it properly. When organizations choose the right people for the job, train them well and treat
them appropriately, these people not only produce good results but also tend to stay with the organization longer. In such circumstances, the organization’s initial and ongoing investment in them is well rewarded.

An organization may have all of the latest technology and the best physical resources, but if it does not have the right people it will struggle to achieve the results it requires. This is true across the whole spectrum of business activity e.g. schools, hospitals, legal practices, restaurants, airlines, and diesel engine manufacturers.

Cummins is well aware of the importance of ‘getting it right’. Poor choices at the recruitment stage can prove expensive. The company needs to be sure of a  candidate’s technical competence. For example, if an engineer designs a component that fails and has to be re-engineered, the company loses both time and money and may incur penalty charges on any delay in fulfilling particular contracts. Time and money spent in recruiting that particular employee will have proved expensive and wasteful whilst a better candidate may not only have ‘got away’ but also gone to a competitor.

3.1 The link between motivational theory and reward:
Motivation in simple words may be understood as the set of forces that cause people to behave in certain ways. It is a process that starts with a physiological deficiency or need that activities behavior or a drive that is aimed at a goal or an incentive.

The concept of motivation occupies a central place in the discipline of Organizational Behavior. It is a concept, which has received the maximum attention from the academicians and researchers alike. Since a motivated employee is highly productive and highly quality oriented, the managers are also interested the concept of motivation.

Most people understand the concept of intrinsic satisfaction or intrinsic motivation, i.e. when an activity is satisfying or pleasurable in and of itself. Naturally, these activities are things we like and want to do. For most of us, intrinsically enjoyable activities are things like eating, resting, laughing, playing games, winning, creating, seeing and hearing beautiful things and people, being held lovingly, having sex, and so on. To do these things we don’t need to be paid, applauded, cheered, thanked, respected, or anything–commonly we do them for the good feelings we automatically and naturally get from the activity. Intrinsic rewards also involve pleasurable internal feelings or thoughts, like feeling proud or having a sense of mastery following studying hard and succeeding in a class.

Money is understood to be powerful motivator for more than one reason. In the first place, money is fundamental for completion of a task. The employee takes pay as the reward for his or her work, and the employer views it as the price for using the services of the employee. Second, as a medium of exchange, third, money is one of the hygiene factors, and improving maintenance factors is the first step in efforts directed towards motivation. Fourth, money also performs the function of a score card by which employees assess the value that the organization places on their services and by which employees can compare their values to others. Fifth, reinforcement and expectancy theories attest to the value of money as a motivator.

Sixth, money acts as punctuation in one’s life. It is an attention getting and effect producing mechanism. Money has therefore tremendous importance in influencing employee behavior. Seventh, money is easily vulnerable to manipulation. Finally, money will be a powerful motivator for a person who is tense and anxious about lack o money. But behavioral scientists think otherwise. They downgrade monetary rewards as a motivator. They prefer, instead, other techniques such as challenging jobs, goals, participation in decision-making and other non-monetary rewards for motivating employees. The financial rewards are basically of three types: Profit sharing

Job evaluation; and
Merit rating

3.2 The process of job evaluation and other factors determining pay: Evaluating Jobs
The job evaluation process establishes the relative value of jobs throughout the University. There are two steps involved in this process: Job Descriptions – Each position has a job description that identifies the job’s major responsibilities, decision making, accountability, qualifications, and organizational relationships. Job Evaluation – this step measures three major factors: knowledge required for effective performance; the complexity of the decision making role; and the authority or control invested within the position.

Salary surveys are another of the tools used by Compensation Services to compare Brown’s staff salaries and compensation policies with a cross-section of other employers. Brown participates in multiple surveys to capture information about the breadth of positions represented on campus. Compensation Services analyzes this survey data and prepares a report each fall recommending pay practices for the next fiscal year.

Determining Pay
In formulating salary offers for employees in new positions, the following considerations are taken into account: departmental budget; external equity; internal equity and relevant education, experience and skills. Routinely, salary offers fall within the first quartile of the applicable salary range for the position’s grade level. No offer or promise of an offer can be made without authorization by Human Resources. External Equity is the term used to describe comparative salaries paid in the marketplace. Compensation Services participates in various salary surveys to determine competitive pay practices. Internal Equity is the term used to describe the comparison of salaries paid to employees working in the same grade or level. Department head level positions and above: national markets

Professional and administrative positions below department head level: regional markets Support staff and entry level exempt positions: local markets

3.3 The effectiveness of reward systems in different contexts: A corporate culture that rewards excellence motivates employees to do their best. An employee wants to know that his employer recognizes the skills he brings to
the workplace and appreciates his contributions on the job. Having a motivation and reward system in place for your employees acknowledges their accomplishments and demonstrates their importance to the organization.

There are a number of reasons why recognition may be as important as, or even more important than, money as a reward for today’s employees. One of the most obvious is that enterprises typically have pay systems that are designed to review performance and give incentive payments only once or twice a year. So if someone does an outstanding good job in July, the manager may be unable to give the person a financial reward until after the annual performance review in December. Nonfinancial rewards, on the other hand, such as genuine social recognition, can be given at any time. It is these more frequent nonfinancial rewards that have a big impact on employee productivity and quality service behaviors.

Research shows that there are many types of recognition that can lead to enhanced performance and loyalty. One of these that is receiving increased attention is recognition of the fact that many employees have work and family responsibilities and when the organization helps them deal with these obligations, loyalty increases.

3.4 The methods organizations use to monitor employee performance: Great employee performance is a key to business’s success. Employees are the first line of many businesses’ offense and their performance makes a direct impression on the customers. Customers are the primary source of business’s income and normally factor their overall experience at the establishment into whether they may return or become a regular customer. This is why monitoring employee’s performance is invaluable. There are some techniques to monitor employee performance: Planning employee’s job tasks in advance

Consistently supervising and evaluating employee’s performance Providing feedback by administering
Training employee that focus on improving positive work flow, time management, and introducing new skills and responsibilities Identifying best employee and use him/her as a model for current and future employees
Rewarding employee

4.1 The reasons for cessation of employment with an organization: Many jobs will have a probation period lasting several months for new employees. During this period, the employer can often terminate the employment of an employee without giving much of a reason or continuous benefits. The word “termination” covers both employees leaving the company voluntarily and the employer letting an employee go, according to Small Business Notes, but it is typically used to refer to involuntary termination. There can be numerous reasons why an employer decides to terminate an employee early. The reasons behind cessation of employment are:

Needs of the Business
The business may discover that the job position the employee is currently working is not needed in order to operate the business. While some companies will offer the employee another position in the company, smaller businesses may not have other positions available or may not have the budget to keep an extra employee on the team.

Poor Employee Performance
The employer may terminate an employee’s employment because of small details pertaining to poor employee performance. For example, employee tardiness, poor performance on projects and tasks, general incompetence, lack of contributions in teamwork settings, or working slowly and missing deadlines.

Violation of Company Policies
An employer may also terminate the employment of a new employee if the worker has violated or broken company rules and regulations. Examples of these include lying about education or experience on the resume, being negligent when working with machinery or other employees, violating strict company rules and policies, harassing other workers, violation of safety regulations, stealing from the company, using unauthorized property or tools, damaging company property, or sleeping on the job.

Closing of the Business
The business may also terminate an employee because the business is closing, being sold or going bankrupt. The employer may not have an option to terminate the employees, but as with the first section, this termination has nothing to do with the employee’s capabilities, performance level or skills.

4.2 The employment exit procedures used by two organizations: The purpose of an employee exit policy is to gain the perspective of an employee during his time with a company and to document the reason he decided to leave. The policy helps companies learn how they can improve upon employment practices and the work environment, as well as identify problem areas within the company.

When an employee resigns from her position, she should submit a written letter of intent to her supervisor or human resources department at least two weeks prior to the date she intends to resign, per the company’s policies and procedures..

Exit Interview
Before an employee’s last day, the company’s human resources office should conduct an exit interview in person. Exit interviews conducted over the telephone are appropriate for employees who do not live in the area or are not able to meet in person.

Out-Processing Procedures
After an employee submits a letter of resignation, her supervisor may provide her with a checklist of activities to complete before her last day of work. Out-processing procedures an employee needs to complete include providing an employer with a forwarding address and surrendering company keys, key cards, computer passwords, company credit cards, identification badges and the employee handbook.

All information collected during an employee’s exit, including details regarding the exit interview, should remain confidential. Moreover, the company should not hold any information the employee provides during the exit process against the individual.

4.3 The impact of the legal and regulatory framework on employment cessation arrangements: Termination of an employment relationship is one of the most important institutes of labor law because it closely affects both parties in their contractual relationship. Therefore, it is necessary for the legal regulation to comply with the fundamental principles governing labor law and expressed both in international instruments and national regulation. These fundamental principles can be considered as follows: The right to work together with the protection of stability of employment Prohibition of discrimination

Freedom of work together with the prohibition of forced labor

There are many reasons today for owner-managers of businesses to look at the legal structure of their firms. The changing tax laws and fluctuating availability of capital are just two situations which require alert mangers to review what legal structures best meet their needs. Going into business requires strategy and planning. Most important, to be successful in business, you must understand the rules (or the laws) by which a company must conduct business. All planning and strategy must consider the multitude of local, state, and federal laws and business practices that govern the operation of the business. Before entering the complex arena of business and the myriad of laws which influence the freedom of choice and mobility of action, one must first choose the legal structure for the business that will best suit the needs of the particular business.

HRM has significantly increased the need of a department that can proportionate the motivational factors once required to do a job in a manner where everything is under a specific control. Creative, self-controlled and motivated are the traits every company nowadays should have. Thorough knowledge of business as well has of human resource functions, the ability of an organization to overcome and lead a change, problem solving techniques and to influence other organizations in the competition can be greatly controlled. Starting from the very core of it, success of any organization relies on the ability to manage a vast majority having various talents that can innovate and revolutionize the whole concept of workforce. With the mixture of talents of different cultural backgrounds, genders, ages and lifestyles, an organization can respond better to business opportunities more rapidly and creatively especially in the global arena which must be one of the important organizational goals to be attained. More importantly, if the organizational environment does not support variety broadly, one risks losing talent to competitors

In today’s workplace, the environment is constantly evolving. Many of the ideas that will be driven in HR firms will be based upon working to adapt to these changes while being proactive as well. This is the eventuality that must be confronted while trying to maintain a balance work life for employees and manages alike.


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Human resource management

Many business owners prepare a business plan before starting their business. However, small business owners often do not include human resource planning as part of their over-all business plan. They may start out with only a few employees or none at all. Over time, it is important to properly forecast employment needs. Just as failing to address potential threats in the marketplace can jeopardize the viability of your business, failing to anticipate personnel needs can impact on overall business success.

The success of a business is directly linked to the performance of those who work for that business. Underachievement can be a result of workplace failures. Because hiring the wrong people or failing to anticipate fluctuations in hiring needs can be costly, it is important that you put effort into human resource planning. Planning for HR needs will help to ensure your employees have the skills and competencies your business needs to succeed. An HR plan works hand in hand with your business plan to determine the resources you need to achieve the business’s goals. It will better prepare you for staff turnover, recruitment, and strategic hiring – and alleviate stress when you have emergency/last-minute hiring needs.

Human Resource Planning Process Or Steps Of HR Planning

Human resource planning is a process through which the company anticipates future business and environmental forces. Human resources planning assess the manpower requirement for future period of time. It attempts to provide sufficient manpower required to perform organizational activities. HR planning is a continuous process which starts with identification of HR objectives, move through analysis of manpower resources and ends at appraisal of HR planning. Following are the major steps involved in human resource planning:

1. Assessing Human Resources
The assessment of HR begins with environmental analysis, under which the external (PEST) and internal (objectives, resources and structure) are
analyzed to assess the currently available HR inventory level. After the analysis of external and internal forces of the organization, it will be easier for HR manager to find out the internal strengths as well as weakness of the organization in one hand and opportunities and threats on the other. Moreover, it includes an inventory of the workers and skills already available within the organization and a comprehensive job analysis.

2. Demand Forecasting
HR forecasting is the process of estimating demand for and supply of HR in an organization. Demand forecasting is a process of determining future needs for HR in terms of quantity and quality. It is done to meet the future personnel requirements of the organization to achieve the desired level of output. Future human resource need can be estimated with the help of the organization’s current human resource situation and analysis of organizational plans an procedures. It will be necessary to perform a year-by-year analysis for every significant level and type.

HR planning must be tied to the overall business plan. You can start the process by assessing the current conditions and future goals of your company. Perform these assessments regularly. Consider some of the following questions:

What are the company’s goals and objectives?
Do these goals call for expansion into new markets?
Are new product lines planned?
Are changes in technology necessary to stay competitive?
Will new skills and/or training be required to meet the company’s goals and objectives?

The following three-step method is designed to help you
determine whether or not you are ready to hire:

1. Identify Business Strategy and Needs
2. Conduct a Job Analysis and Write a Job Description
3. Determine the Feasibility of Hiring

Human Resource Planning Checklist
Step 1: Identify Business Strategy and Needs
Identify pressures and opportunities
Clarify your business strategy and direction
Identify aspects of the business that need help
The following questions will help you determine how many people are required, and with what skills, to fulfill your business needs. What new positions are opening up?
What special skills (e.g. computer applications) will be needed? What work experience (e.g. in a particular area) will be required? When will new staff be needed?
When should hiring be scheduled to ensure a smooth transition?
Does the hiring plan also provide for employee turnover and attrition?

Step 2: Conduct a Job Analysis and Write a Job Description
Review your current workforce-
Describe the employees you now have in terms of their knowledge, skills, and experience and describe how they function together to get work done, At the same time, consider how the current work could be reorganized to make the best use of current and future employees.

Identify any skills and knowledge gaps-
Note any gaps between the skills and abilities your current employees have and the skills and abilities that your workforce needs to meet your business objectives in the future. Write a job description

Set an appropriate salary-
Start by adopting a general salary range to help you determine what you will need to budget – and whether potential candidates are within your budget. You may want to complete a job evaluation, whereby you rank jobs and their corresponding salaries. Weigh the importance of critical skills and knowledge for each position, compare positions, and rank the new position on the pay scale accordingly.

You will need to do a comparison between the new and existing positions.

Is the new position more junior/senior?
Will the new position require more specialized skills and knowledge? Will the position have more complex tasks and different working relationships? Will the new position have more or less responsibility?

Tips for Conducting a Job Analysis

* Ask employees about each position within the business and how they are (or are not) connected * Ask employees if they think hiring a new employee or creating a new position would be a good idea * Observe employees at work and earnestly ask for their ideas about better ways to operate; be prepared to put good suggestions into action * Talk to customers about which employees are easiest to deal with or provide the best service * Find out and understand why past employees have left – be truthful with yourself * Talk to customers about their needs

* Understand the needs of people the new employee will be working with * Differentiate between “nice to have” and “must have” skills and experiences * Look at employees who are performing at a superior level and try to assess the skills and behavior`s that distinguish them; look for evidence of these behavior`s during the interview * Look at similar positions in other companies and

the requirements they have
* Read books or articles about companies that may have found themselves in similar situations

Step 3: Determine the Feasibility of Hiring
Understand the costs of hiring-
Labor costs, such as salary and benefits, Recruiting costs, which may include advertising in addition to time spent on recruiting activities, orientation and training.

Understand the benefits of hiring-
* Improved morale of other employees, if a departing employee was a problem or if the area has been Under staffed for some time
* Improved morale of existing staff if the growth means new business and opportunities * Improved productivity if a departing employee was not productive or if employees believed that you have made the decision to hire as a result of their input

* Increased revenues once a new employee is performing at an acceptable level * A new employee who is more qualified than current employees can help train the existing employees * Increased customer satisfaction and potentially saved business.

Understand the risks of not hiring-
* Loss of revenues because of an inability to keep up with demand * Loss of employees because they are unwilling to continue being overworked or to do the work of a departed employee
* No new ideas or knowledge brought in through new employees

If you decide that hiring a new employee is feasible, you are ready to begin the recruitment process. If not, you might need to revisit your strategic plan or business objectives.

3. Supply Forecasting
Supply is another side of human resource assessment. It is concerned with the estimation of supply of manpower given the analysis of current resource and future availability of human resource in the organization. It estimates the future sources of HR that are likely to be available from within an outside the organization. Internal source includes promotion, transfer, job enlargement and enrichment, whereas external source includes recruitment of fresh candidates who are capable of performing well in the organization.

4. Matching Demand And Supply
It is another step of human resource planning. It is concerned with bringing the forecast of future demand and supply of HR. The matching process refers
to bring demand and supply in an equilibrium position so that shortages and over staffing position will be solved. In case of shortages an organization has to hire more required number of employees. Conversely, in the case of over staffing it has to reduce the level of existing employment. Hence, it is concluded that this matching process gives knowledge about requirements and sources of HR.

5. Action Plan
It is the last phase of human resource planning which is concerned with surplus and shortages of human resource. Under it, the HR plan is executed through the designation of different HR activities. The major activities which are required to execute the HR plan are recruitment, selection, placement, training and development, socialization etc. Finally, this step is followed by control and evaluation of performance of HR to check whether the HR planning matches the HR objectives and policies. This action plan should be updated according to change in time and conditions.

Human Resource Management


Throughout the time of the course, Human Resource Management, we have been able to learn and use HR practices in everyday life. This paper has been put together using two case studies and eight chapters from the book, Managing Human Resources. The two case studies are based on Lincoln Electric Company and Southwest Airlines, the eight chapters include chapters 1 and 3 then chapters 7 through 12. As a group we have worked together to prepare each different chapter and we have used the cases to help develop our own Human Resource skills. This paper will demonstrate how as a group we were able to relate the case studies to different aspects that the Human Resource field covers.

Chapter 1: Managing Human Resources

Read the two cases at the end of this book regarding Lincoln Electric and Southwest Airlines. Then using Exhibit 1.1 as a guide, make an illustration that identifies the stakeholders of each company and shows the relative importance of each stakeholder to each company. To complete this assignment, you can gather your information materials in this chapter, the cases at end of the text, and from other sources, including newspapers, magazines, the internet, and your own experience. If you are unable to obtain information you feel is relevant, make assumptions based on your best judgment. Note any major assumptions you make.

Southwest Airlines

Lets elaborate on each stakeholder in more detail. First is suppliers which are Boeing Aircraft, airport, and the fuel companies. Boeing supplies the airplane that they us which is the Boeing 737, the airport gates provide income for the company, and the fuel company of course supplies fuel. With all the different suppliers Southwest has to keep them in line with what they are trying to accomplish which is offer the best prices to its customers. Competitors are all the airplines at the airport. Southwest has to figure out a way to maintain a profit and still offer lower or same prices at the other airlines. They should always know what the competition is doing or offering.

Customers are stakeholders in that they are the Shante’ Johnson people who are buying the product and without them there is no business. Employees are important because they add value to the company. Employees are resources because they provide labor and help with production. Finally the enivornment/communtiy is a stakeholder because Southwest has plans in motion to help protect the resources they have and give back to the community. Southwest prides itself on being socially responsible and has done so by charity programs, recyling, and going green. They feel that if the community is on their side and supportive of them then they can prosper and be a household name.

The Lincoln Electric Company

Corporations like The Lincoln Electric Company are dependent on their customers. If they do not improve their relationship and offer the best for their guest the businesses might not be as successful. The customer makes it likely to for a company to attain its goals. LEC views it employees as being of importance because they are the heart of the company. They maintain production and their performance Shante’ Johnson affects the company. LEC feels that it will do what is needed to make their employees happy so that they can keep producing results. Lastly I feel that LEC values the environment as a stakeholder in that it wants to come up with practice that will keep the environment safe and clean. They want to maintain a healthy environment for the community. They want to support communities in which they are located.

Chapter 3: Ensuring Fair Treatment and Legal Compliance

A. What evidence exists to demonstrate that each company manages employees fairly and legally?

Southwest Airlines

When reading about Southwest I feel that they treat their employees fairly and follow the legal procedures in obtaining their employees. Southwest like most companies value their employees and the work they do for the company. I found it interesting that Southwest renamed its HR department the People department. By changing the name of the HR department shows that they see the significance in people and the relationships that are involved with that. The article also says that Southwest puts time into hiring and interviewing applicants. I view that as they only want the best for their company and will use the resources needed to get the best. If that means interviewing 100 people for one job then so be it. If I was applying and knew that they only want the best and have measures in place that shows their support and care for employees I would want to work for them.

Lincoln Electric

At first when reading about LEC I thought they value their employees because they know their employees are the main reason they are able to be successful. Lincoln Electric recognizes that money is an incentive to employees and knows that by offering an incentive they can get the workers to be more productive. They understand that there was to be an honest relationship between employees and managers. There has to be a level of respect for each other. Lincoln Electric has HR Objectives that pertain to its employee; I am going to list three out of four of the objectives first is “to maintain and Shante’ Johnson expand the Lincoln Incentive Management Philosophy, to recognize people as the company’s most valuable asset, and to promote training, education, and development that broaden employee skills” (Jackson, Schuler, Werner pg 563).

I do not know many companies that have objectives written down for their employees. Having objectives in place to be followed by HR personnel is reassuring that they Lincoln Electric cares about its employees. As I continued to read about the company I found out they have a low turnover rate, but they keep their workers busy and focused on the task at hand. They also have no leisure time and many do not receive a break. I do not believe that to be fair because if you are working a certain amount of hours a day you need a break. Also not having time to socialize with others I can picture the workplace being full of robots. People clocking in and doing their jobs and then clocking out and going home.

B. Are there company practices at Southwest Airlines and/or Lincoln Electric that you would consider to be unfair? If so, which ones? Why?

Southwest Airlines

I will be honest is was hard finding a practice that was unfair but after much thought I find it unfair that when an applicant is being consider they may be asked to speak in front of a large group of people. If I am interviewing for a basic job that does not involved a lot of interaction with people why should speaking in front of a large group be a part of my applicant process. I also find it strange that Southwest will red flag an applicant that is flying in. I understand the idea of seeing how they behavior around others and handle certain situations, but they should also be notified that they may be watched. I also do not find it fair to judge an applicant before you even get to meet them. You cannot always take the opinion of others when making important decisions that can affect your company. I do like having others opinions and having them way in, but I do not want them to spy on an applicant.

Lincoln Electric

Shante’ Johnson

Lincoln Electric included a dialogue of a few interviews they held and it immediately stood out to me that they were asking questions that are unfair and illegal. I do not find it professional to ask how much money did you make last year, what did you do with that money, and how do you feel about joining a union (just to name a few). Employers can get into trouble asking those questions because if someone is rejected they can sue based on the questions they were asked. I also do not think it is fair for management to have the authority to cut hours without any notice. Some employees’ livelihood depends on their job. If their hours are suddenly cut it does not give them time to put other plans into motion. I also feel that it makes the company look bad and can bring down employee morale.

Chapter 7: Selecting Employees to Fit the Job and the Organization Describe, evaluate, and compare the selection procedures used at these two companies. In preparing your answer, consider the following issues: A. The objectives of the selection process.

Each company has a different selection process for job applicants and how the company selects its applicants is unique. Some companies may not have an intricate selection process; instead they just want to fill the absent position. However, this is not the case when Southwest Airlines or Lincoln Electric selects employees. Southwest Airlines believes that investing in recruiting should be a top priority for their company, and so it has become the goal to select applicants who will fit into the culture that Southwest has created instead of just filling a vacant position. Southwest wants to make sure they are hiring people who will be beneficial to the company instead of hiring someone quickly then the new employee not fit into the mold Southwest has created.

In the case of Lincoln Electric, they do their selection process a little differently. Instead of going out and recruiting for all the open positions within the company Lincoln Electric instead only uses external recruitment in cases of entry level positions. Lincoln Electric has decided to fill all other open job positions internally, with those employees who have already been a part of the company. Since Lincoln is filling most job openings with people already employed within the company it shows that the company believes in the employees it has, and wants to help them grow individually as the company grows as well.

B. The criteria used

The criteria used in the selection process of new employees for Southwest Airlines and Lincoln Electric differ greatly between the two companies. The major criterion used for Southwest Airlines is attitude. Southwest’s selection process has strong roots in the attitudes of the job applicants. The company has selected five key predictors to see if the applicant’s attitude would blend well within Southwest. The predictors are: blend of energy, humor, team spirit, and self-confidence. It makes sense that Southwest wants to hire employees who would fit into the company culturethat way they can ensure positive and team work oriented attitude is kept within the company.

The major criterion used for Lincoln Electric for filling positions is based on in house hiring, except for entry level positions. By giving employees notice of the open positions it can help keep the company culture the same, and is beneficial to keep employees and teach them new skills. When the company is able to teach employees new skills it helps build the different competencies they possess; different competencies can help make an employee more attractive to the organization instead of just one specific job title. This employee then becomes multi-functional. C. The techniques used to assess the competencies of job applicants.

Southwest Airlines and Lincoln Electric have specific hiring techniques to assess the competencies of potential employees. Southwest uses three distinctive techniques to help figure out who will best fit the dynamic of the company. The first technique used is the personality test. The personality test helps “The People Department” get to know job applicants values and what type of personality he or she has. There are seven traits used: cheerfulness, optimism, decision making skills, team spirit, communication, self-confidence, and self-starter skills. The person being interviewed needs to receive a three or higher, on a scale from one to five, to move on to the next stage of the interview process. The next technique used would be the actual interview. Southwest looks to find people with great people skills, matching work experience, and people who are team players.

Hiring people without these qualities would be a waste of time, considering that many of the jobs Southwest provides have to do with teamwork, helping people have a pleasant experience, and experience. The last technique is the most interesting, Southwest wants to make sure they hire people with a great attitude so they have managers jot down anything memorable about the applicant, good or bad, they give applicants special tickets on their flights so employees will know to observe them and their behavior, and they are also asked to speak in front of groups of people. However, the audience is also being evaluated along with the speaker; Southwest wants to see if the audience members are attentive and paying attention to who is speaking. Southwest wants to find people whose attitudes fit in with current employees and the culture they’ve built together.

Therefore their selection techniques are quite focused on the job applicant’s attitude and values. Lincoln Electric has kept a constant theme throughout their selection process. During the selection process, Lincoln Electric uses current employees to fill open positions; and they are able to find out if employees can take on a new position through the interview process. Lincoln does not use aptitude or psychological interviews; instead they focus on the personal aspects of the employees. There is a committee that is made up of supervisors and different vice presidents whom interview the different job applicants. Since the interviews are on a more personal level, the committee is looking for the correctperson who can perform the specified tasks and fit in with the new department. Although Lincoln Electric uses the committee to perform the interview process, the final selection is left up to the supervisor who is in charge of the department where the job opening is. D. The apparent effectiveness of the selection process.

The effectiveness of both companies selection process has been extremely effective. In the case of Southwest Airlines because of the friendly culture close to 90,000 people applied in the past few years. This many applicants can be overwhelming, but since the HR department is committed to only hiring those applicants who can fit into the company culture, they only hired 831 people. Due to the specific selection process and the use of different employees from the HR department, managers, and employees the turnover rate for Southwest is less than five percent.

The employees of the company enjoy their jobs and the culture that they are involved with on a daily basis that the employees continue to work for Southwest for the long-term. Lincoln Electric’s selection process is as similarly successful as that of Southwest Airlines. Since Lincoln Electric fills openings in-house the company doesn’t experience a high turnover rate. Employees average around 18 years working with the company, and due to the in-house hiring process employees become more satisfied with their work because they are able to develop and move up in their career path.

Putting faith in current employees to help build the company from the ground level to top level, put trust in employees and thus employees trust Lincoln more and want to stay with the company longer. E. The roles and responsibilities of line managers, HR professionals, and other employees in each company. Each company has their own unique way of selecting the perfect job applicants to fill the needs of the company, and each company has proven to be successful in the selection process. But without the helpof HR professionals, line managers, and other employees the companies may not have had such smooth sailing. Southwest Airlines makes sure to include every level of employees to help choose new employees through their selection process. The HR professionals, or the “People Department”, work to set up and organize the different interviews and where they will be held, the HR professionals also distinguish what qualities are important to the company culture for job applicants to be able to fit in. Line managers and employees are also involved, they are able to interact and speak with job applicants.

By Southwest involving line managers and employees in the selection process, it shows how important the company culture is to the company. Having the line managers and employees involves also allows them to help select future employees that they will have to interact with on a daily basis. Lincoln Electric also involves HR professionals, line managers, and employees in the selection process. The HR professionals post the job openings on an internal job board and set up the interviews that will be conducted to find the right applicant. Line managers are involved in the selection process through interviews, and they ultimately have the final decision in who is hired to work in their department.

Employee involvement is probably the most important part of the selection process. Employees are important because if they are not actively involved in applying for the open positions Lincoln Electric would not be able to fill the open job positions. Having the employees involved with filling the job positions is crucial to keeping the company on task and not having a lot of turnover. Chapter 8 – Training and Developing a Competitive Workforce A. For which company is training and development more important? In the case of Lincoln Electric and Southwest Airlines there is one company who puts more emphasis on training than the other. Southwest deeply involves new employees into the training process much more than Lincoln Electric. In the production area of Lincoln Electric the employees are given on-the-job training that is over a short time period, and they are then expected to perform their duties correctly. When it comes to sales jobs they receive on-the-job training at a plant, then they go to a regional sales office and receive more training while they are working. Lincoln Electric does not provide or pay for outside training, unless there is a specific need for the outside training.

Even though Lincoln Electric does not spend a great deal of time with training, Southwest does. Southwest places a large emphasis on employees fitting in to their work culture so the company provides ample training in all aspects the employees will be involved in. There are seven different areas that new employees are trained in when entering the Southwest team. The areas include: Freedom-LUV-and You, Leadership 101, Leadership Southwest Style, Next Level Leadership, Power Speak, Successful Performance Appraisals, and Every Customer Matters. Unlike Lincoln, Southwest encourages employees to take full advantage of outside training whenever they can. Not only does Southwest train employees in their own respective fields, but they also train employees on the jobs of other employees who they will be working closely with.

This type of training helps employees understand and better relate to those who they will be working with on a regular basis. Southwest provides an enormous amount of training for new employees, but they also continue development and training for existing employees as well. Once a year all employees are required to attend training programs that help reiterate the shared values throughout the company. B. Describe how the training and development activities in both companies are related to other HR activities. The training and development activities at Lincoln Electric also relate to other Human Resource activities that are involved within the company. The main human resource policy that fits well with the training and development of Lincoln Electric employees are the work assignments. The management teams at Lincoln Electric have the power to change or transfer the work assignments of current employees. In order to keep up with the changing of work assignments the training process cannot be lengthy.

The training that employees receive is on-the-job, so if a work assignment changes they are able to be taught quickly on what their new responsibilities will be. In a company like Lincoln Electric the needs of consumers may change and having the ability to move workers assignments and provide sufficient on the job training helps the company keep up with the changing external factors the company faces. The training and development activities at Southwest Airlines are in direct correlation with their hiring and selection process. Southwest works particularly hard to find employees who exhibit the right attitude, who will fit in, and demonstrate the qualities that are important to the company culture.

Since the time is spent to find the best employees to fit in, the company wants to invest into training them properly to become part of the Southwest team. The training Southwest provides its new employees is an extension of their selection process. Southwest does not hire employees just to fill positions accordingly the company wants to invest in the new hires to expand their abilities and qualities. Not only does Southwest want to connect the selection process to training and development for new employees, but training continues for existing employees too. Existing employees are encouraged to do outside training to improve their skills and knowledge. The company also requires a yearly training session to make sure that everyone is still operating with the same shared values throughout the company. The values in the training are the same values that the employees shared with Southwest Airlines from the time of their selection.

Chapter 9 – Conducting Performance Management

A. Compare Lincoln Electric and Southwest Airlines with respect to the major purposes of performance measurement and feedback. Which organization seems to be more concerned with traits? With behavior? With results? What uses does performance measurement serve in these two companies?

Performance measurements and feedback are vital to the success and knowledge of Lincoln Electric and Southwest Airlines. Each company uses performance measurement tools to help gage the employees’ performance and where there is room for improvement. The performance measurement Lincoln Electric uses is based on a great deal of results and how the employees are performing their jobs and designated tasks. Employees and managers are evaluated on different terms. Employees are evaluated twice a year, and their performance principles include: quality, dependability, ideas and cooperation, and output. Managers are evaluated on six different competencies: leadership/ownership, decision making and judgment, results orientation, teamwork/commitment, quality and customer focus, and creativity/innovation.

When it comes to feedback managers at Lincoln Electric discuss the performance scores with employees and if necessary will provide recommendations. Once a year the company provides feedback based on performance and will also assist in performance improvement and development. Southwest Airlines focuses on results, but their main concern for employees is based on their traits and behavior. Southwest strives to have excellent customer service, as a result employees performance is measured on how well they are performing their jobs and handling the customer service aspect. The performance measures used help with building team cooperation instead of enticing competition between different departments.

When managers evaluate employees, especially regarding customer service, they have to provide documentation of the events and how the employee performed. The manager cannot just give an outstanding score without regarding actual events that took place. Southwest Airlines contributes feedback to what they call “loving feedback”. “It celebrates successes, it lets people know how they’re doing, but it’s also honest”(Jackson, Schuler, and Werner, 2012). The feedback system for Southwest has two different objectives; first is the metrics level and second is the conversation, people to people level.

The performance measurements used for both companies reflect the performance of employees and management. However, Lincoln Electric focuses more on the results that employees receive from their evaluations. Lincoln Electric does use the performance measurements to influence, whether it is an increase or reduction, in merit pay and the decisions of bonuses for employees. Not only do the results of the performance measurement affect if an employee receives merit pay or a bonus, the company uses the evaluations to fix warranty claim problems. In the case of a warrant claim the manager can trace the claim to the exact employee error made. When this happens the employee’s performance score may be reduced, or the worker may be required to repay the cost of servicing the warranty claim by working without pay (Jackson, Schuler, and Werner, 2012).

Southwest Airlines truly uses their performance measurement and feedback system to focus on the traits and behaviors of the employees. They want to show employees they value their work, and give them feedback that helps. Due to how concerned Southwest is to give employees a meaningful experience, employees would rather hear negative feedback and performance ratings than hearing nothing at all. At least by hearing the negative feedback they have something to work towards and improve on to make themselves better. B. For Lincoln Electric, how well do the performance criteria fit the company’s strategic objectives? Identify any potential sources of deficiency and contamination in the company’s performance measures.

For the most part Lincoln Electric fulfills two out of the four HR Objectives that the company has deemed to be important. Those two are: to maintain and expand the Lincoln Incentive Management Philosophy and To maintain an affirmative action program, and provide employees with opportunities for advancement commensurate with their abilities and performance regardless of race, religion, national origin, sex, age, or disability (Jackson, Schuler, and Werner, 2012). There are two other objectives that I do not believe Lincoln Electric is taking enough advantage of when using their performance criteria. Two objectives include: recognizing people as the company’s most valuable asset and promoting the training, education, and development to broaden the employee skills. Lincoln Electric only provides on-the-job training and they do not pay for or encourage outside training, unless the need is absolutely necessary.

Not only do they only offer on-the-job training, when performance results are released twice a year, the employees only receive coaching and performance improvement development once a year. Lincoln Electric should at least offer the coach and performance improvement directly after each performance evaluation and feedback term. By not investing in the training and education of employees they are not fulfilling that particular objective. Also, when an employee’s performance is bad, management punishes the employee instead of taking the time to find out what went wrong in the making of an item. There might have been something the employee didn’t understand. Not taking the time to discuss and figure the source of the issues doesn’t show that Lincoln sees people as the company’s most valuable asset. Especially, when a mistake happens, their performance score is reduced and they have to fix the problem without receiving pay.

C. Compare the sources of performance information used at Lincoln Electric and Southwest Airlines. Would you recommend that these organizations use 360-degree appraisals? Why or why not? Each company has a different way of evaluating their employees to find out how they performing and if they need any help or training. When looking at the sources of how Southwest evaluates their employees’ performance I do not think they need to use 360-degree appraisals. The company focuses different aspects that affect the employees individually and what teams they are a part of collectively. Southwest’s “performance management also reflects how we value our employees”(Jackson, Schuler, and Werner, 2012). Southwest effectively measures the performance of employees and the teams they are on, this type of performance measurement promotes cooperation between employees instead of employees trying to compete to be the best.

Southwest prides itself on teamwork, so when something goes wrong it isn’t just one individual’s fault, the company examines what different departments were effected to make this problem, and as a team they fix the problem. When examining the performance measurements of Lincoln Electric, I do believe that the company could benefit from implementing 360-degree appraisal performance measurement. Lincoln Electric employees are evaluated by their department manager, and employees help establish the goals that the managers are performance evaluations are based on. 360-degree appraisals would be able to give employees and managers more evaluations to work with. This type of appraisals uses supervisors, subordinates, peers, and employees to evaluate performance. The people chosen to evaluate the employee or manager are not random either, they are people who work with the employee on a regular basis and who know how well this individual does with his or her job.

When Lincoln Electric is only using a manager to evaluate the employees, the manager may be bias and not give each employee a fair evaluation. However, when using 360-degree appraisals it is hard for one individual to sway the evaluation when there are multiple people working to evaluate the employee properly. “Multiple-source evaluations are perceived as being more fair, reliable, and valid than single-source approaches”(Jackson, Schuler, and Werner, 2012). The 360-degree appraisal process may benefit Lincoln Electric when fulfilling their HR objective of recognizing people as the company’s most important asset as well. By having more than one person involved with the performance measurements, employees may gain a better since of how important they are to the company overall.

Chapter 10: Developing an Approach to Total Compensation

The purpose of an organization’s total compensation is to provide sufficient incentive and recognition to attract and retain the right people for the right positions within the organization and for those hired, to remain engaged within the organization and perform at their best ability. It has been proven that by having the right “employee fit” will improve motivation and productivity, resulting ultimately in a more content workforce and increased retention and tenure. Establishing a solid and competitive total compensation package contributes to employee retention, which happens to be one of the greatest “concerns of employers today, with 59 percent of those surveyed worried about losing their best employees to competitors and 67 percent concerned about the difficulty of finding skilled labor.” (Taylor, 2013)

Total compensation not only refers to an employee’s salary, benefits, and other monetary rewards, it also factors in non-monetary rewards as well. There are four strategic objectives, tied directly to total compensation that should be considered when establishing an organization’s total compensation. These include: 1) Attracting, motivating, and retaining the talent required for a sustainable competitive advantage; 2) Focusing the energy of employees on implementing the organization’s particular competitive strategy; 3) Improving productivity; and 4) Cost containment. (Jackson, Schuler, & Werner, 2012) 1. Compare and contrast the two companies on the following:

a. The objectives of their total compensation practices
As communicated in Lincoln Electrics Employees’ Handbook (Lincoln Electric Company), as well as in the text case study (Jackson, Schuler, & Werner, 2012), Lincoln Electric’s compensation practice is premium total compensation for premium overall performance. “The key elements of premium total compensation are base pay and bonus. Premium performance is your individual performance as well as Lincoln Electric’s performance. When you meet or exceed your goals and the Company meets or exceeds its business goals, the result is premium total compensation for premium overall performance.” (Lincoln Electric Company) The company’s objective is to “reward employees through recognition, pay for performance, and by sharing profits with incentive bonus compensation based on extraordinary achievement as a means of motivation.” (Jackson, Schuler, & Werner, 2012) Base pay for Lincoln’s employees is determined by salary surveys comparable to the salaries of similar jobs in the Cleveland area, comparing externally as well as internally, through job evaluation and adjusting quarterly to ensure the salaries remain aligned accordingly.

Job evaluation and continuous/comparative review is important to the organization’s position alignment and the employees’ total compensation. Base pay can be earned by either piecework pay, hourly pay or salary pay dependent on the type of position and classification of the job within the organization. In addition to the base pay received, Lincoln’s eligible employees have the opportunity to receive a portion of the company’s annual profits as incentive bonuses. These year-end profit sharing bonuses are proportional to the individual’s merit scores. The Board of Directors determines if there will be a bonus payout and dictates the amount to be distributed. It will only be paid out if the company was able to earn a profit for the year. The individual pay outs and employee shares are based on the individuals’ pay and performance during the year.

A successful year for the company results in a shared portion of its success with the employees, rewarding them for their part in earning the profit. Southwest Airlines overall objective of their compensation program is “to promote and reward productivity and dedication to the overall success of the Company and to thereby also support the company’s overarching objective of attaining reasonable profits on a consistent basis and preserving job security. The development of a more performance-oriented compensation structure is intended to support and reinforce the factors management believes are most relevant to the company’s success.” (Commission, 2011) Southwest’s employees’ total compensation is relatively equivalent to other airlines, given the nature of the type of labor required of the industry. Labor costs account for 35% of Southwest’s overall expenses, with 83% of these positions falling into, and controlled by, collective bargaining agreements (union positions).

Although Southwest’s base pay structure has been at or below the market and operates in an industry where other entities dominate the bargaining power, this low-fare/no-frills airline has maintained a productive workforce through its total compensation offerings of “numerous opportunities to share in company success through variable pay programs, including profit sharing and a stock purchase plan.” (Jackson, Schuler, & Werner, 2012, p. 579) Given Southwest’s continuous success over the years, these offerings of lucrative buyout plans to highly compensated employees and different variable pay programs, such as profit sharing and stock purchase plans have been extremely attractive to its workforce. Allowing and encouraging their employees to do what is necessary to satisfy the customer, empowers and motivates them, resulting in a greater level of job satisfaction and retention, therefore, increased customer satisfaction and company profits.

The profit sharing plan offered by Southwest was the first of its kind in the airline industry and is directly tied to a defined contribution plan, encouraging a long-term employment relationship with its employees. Owning approximately 80% of the company’s stock, employees also recognize the advantages of Southwest’s stock purchase plan, offered to them only at a discounted stock share rate. “Their monetary gains are closely tied to the company’s financial future.” (Jackson, Schuler, & Werner, 2012, p. 587) In addition to the above stated company’s total compensation offerings, Southwest Airlines also uses recognitions to reward their employees. “The awards in these programs and others are given to employees who perform at a high level consistent with Southwest’s strategy and culture, and they can come in the form of plaques, monetary payments, photos taken during the awards ceremony, photos of the award winner with the CEO, and mentioned in the company newsletter.” (Jackson, Schuler, & Werner, 2012, p. 587)

b. The role of total compensation in achieving a competitive advantage
Lincoln achieves a competitive advantage through its piecework pay, shared profits incentive bonuses, as well as job security and guaranteed employment. These elements gave Lincoln employees a sense of ownership in the company. The company’s goal was fulfilling the customer’s needs and therefore, recognized that “employee performance and productivity are the means by which this goal can best be achieved”. This belief led to the company’s commitment that “the earnings of each must be in accordance with accomplishment. If money is to be used as an incentive, the program must provide that what is paid to the worker is what he has earned.” (Jackson, Schuler, & Werner, 2012, p. 562) This company attitude and total compensation plan empowered its workforce to work harder and smarter; resulting in little to no employee turnover, employee compensation that is almost twice that of other comparable job families in the same Cleveland area, and a workforce that sees themselves as part of an organization with executives and leadership that takes care of its employees.

In some ways similar to Lincoln, Southwest Airlines maintains its competitive advantage through its compensation of base salary, profit sharing and stock purchase plans, as well as, short/long term incentives and annual incentive bonuses. As promoted by Southwest’s website “Our people are our single greatest strength and most enduring long-term competitive advantage.” (Kelly, 2014) In order to have a competitive advantage over its competitors, a firm must have the ability to obtain/sustain profits/benefits that exceed the average for others within its industry. As stated earlier, Southwest was “the first to introduce a profit sharing plan in the airline industry.” (Jackson, Schuler, & Werner, 2012, p. 586) Another strategic business initiative and example that contributed to the company’s competitive advantage was through the introduction of the 10-year pilot contract agreement of 1995. Specifically, during the first five years, the pilot wages would not change, then five years following, the pilots got the stock option of the company and annual salary would increase by 3 %. “This kind of salary strategy combined economic interests of the pilot with the interests of the shareholders of the company (if share prices rise, both sides would profit), so the company added value.

Italso helped southwest airlines to provide tourists frequently and economic flight to tourist, and won the competition advantage. This kind of salary strategy is hard to be imitated by competitors.” (Zheng, 2012) c. The pay mix and employee’s reactions to the pay mix

As stated earlier, the pay mix for Lincoln Electric consists of base wages (piecework pay, hourly pay and salary pay) and bonuses. The piecework system adopted by Lincoln Electric is based on some fundamental principles including: 1) Rewards employee for what is done rather than for how much time is spent on the job (more productive employees who meet quality standards = greater compensation than those who are less productive); 2) Changes in piecework prices will be made as changes in equipment, method, layout, procedure, tooling, design or materials are made; 3) Group piecework is interdependent, and the cost of the job is limited by the bottleneck or the slowest operation in the line; 4) All Lincoln employees guarantee their quality and workmanship; 5) Pieceworkers are paid only for production that meets Lincoln’s quality standards. Production of scrap or defective parts will be taken into account during merit rating.

Hourly and salaried employees’ base pay is determined by means of “benchmarking”, comparing the base pay for a sampling of jobs at Lincoln to the base pay of similar jobs in other companies of the same industry. “The bonus plan has been the cornerstone of the Lincoln management system, and recent bonuses have approximated annual wages. Bonuses have averaged about 90 percent of annual wages and the individual bonuses are proportionate to merit rating scores.” (Jackson, Schuler, & Werner, 2012, p. 560 & 570) Lincoln Electric’s employees’ reaction to the pay mix of the company is very supportive and positive. Based on five employee interviews, all five expressed their satisfaction with the compensation received. Each of the employee’s interviewed acknowledged that their salaries exceeded those of employees in similar jobs within the Cleveland area, considering themselves fortunate and better off financially due to their positions with Lincoln Electronic.

Most also stated that the greatest advantage of working for Lincoln was the compensation or the amount of money they can make (base, incentives/bonuses, stock dividends). They mentioned that they “didn’t believe they could make this type of money anywhere else”. As mentioned previously, most of the employees in the airline industry are union employees, controlled by bargaining units and union contracts. In addition to the hourly base pay employees (typically at or below market), Southwest’s pay mix also offers opportunities to share in the company through variable pay programs (profit sharing and stock purchase plans). Mentioned previously, this mix has proven attractive by employees, as well as competitors, with attempts of mimicking in the airline industry. Unlike many of its competitors, however, Southwest is a low-fare, no-frill airline. Rewards and/or perks such as cars, club memberships, etc., are not awarded to the company officers at Southwest, maintaining lower costs to the company and ultimately higher profits to be shared.

Although this pay mix has maintained attractive for many years, its future is questionable due to the acquisition and future integration of AirTran. I am not certain that this lean airline machine will be able to continue to remain as “lean” and profitable as they have been given the competitiveness and external threats of this industry. 2. Which approach to compensating employees would you prefer? Why? The compensation structure I find more desirable would be that similar to the pay mix exercised by Lincoln Electronic. Although I believe it is dependent on the type of industry you are in, I prefer a compensation plan or structure with more internal controls. I find the Lincoln pay mix to be one of which there are more “internal controls” over. As a manager, I believe it also encourages a more team-centric approach to the workforce and empowers employees at all levels to push themselves and to be accountable for the compensation they receive. The Lincoln Electrics plan allows its employees to be part of the big picture, a more wholesome contribution approach and one of which is always looking at improving the process and making a better product overall.

Given the employees level of contribution and sense of ownership, there seems to also be a higher level of dedication and pride, pushing their capabilities to the limit…benefiting everyone in the end. Chapter 11: Using Performance-Based Pay to Achieve Strategic Objectives 1. Compare and contrast the approaches to performance-based pay used by Lincoln Electric and Southwest Airlines. Overall, which plan do you think is more effective? Why? Lincoln Electric’s compensation approach is predominantly based on employees’ performance. Employees’ rewards are heavily monetary in nature (i.e., annual bonuses/incentives based on piecework). As expressed by many interviewed, the harder and more efficient you work, the greater the pay and/or incentives awarded. Employees’ salaries are directly impacted by their level of performance. Although Southwest Airlines does reward their employees based on their performance, most of the rewards received are non-monetary and company culture driven. Some of non-monetary rewards identified include luncheons, plaques, photos taken with VPs, making mention of success in the company newsletter, etc.

The ultimate objective of Southwest’s performance-based recognition is to “create a sense of family and mission”. (Jackson, Schuler, & Werner, 2012, p. 582) Based on my review of the successes from each of these companies in their respective industries, I would conclude that each plan is effective, relative to their performance in their industry. To determine which performance-based plan is more effective, I believe consideration needs to be given to the type of industry and employee it is supporting. The effectiveness determined is also affected by how their employees perceive and/or measure their level of job satisfaction. Obviously, Lincoln attracts a compensation-driven workforce (i.e., sales), while Southwest attracts more cohesive and cooperative relationships between employee groups that seek to be recognized publicly and through other means than only monetary sources.

2.Lincoln Electric is gradually moving toward using a more traditional approach to pay, putting less emphasis on earnings at risk. What strategic objectives would lead the company to conclude that a more traditional approach to pay may be more effective than their present practices? A more traditional approach to pay would be more effective for Lincoln Electronic as they continue to become more global and publically owned. As Lincoln’s interest in globalization continues to grow, so does the need for additional funding and profits to support this expansion. This reallocation requirement of profits, currently used to pay bonuses and incentives to employees, therefore supports the changed focus toward global expansion. As the public ownership of Lincoln continues to grow, their focus needs to expand beyond that of just the employees and begin to include all stakeholders, of which are contributing to the successful expansion of the organization.

Chapter 12: Providing Benefits and Services

1. What are the objectives of each company’s approach to benefits and services? Lincoln Electric’s benefit program includes several components to include a retirement annuity program, 401(k) plan, stock purchase plan, flexible benefits program, medical, dental, life & disability programs, as well as flexible spending and health savings accounts. An additional benefit offered by the company includes a paid vacation during the company’s seasonal shutdown, regardless of the employees’ tenure with the company. Based on no layoffs since WWII, as well as comments noted by the interviews in the case study, employees feel a sense of job security, loyalty and satisfaction to Lincoln Electric and the benefits and services the company offers. The objective of their benefits and services is to offer an attractive and beneficial plan to their employees, maintaining competitive advantage and employee retention, resulting in a more experienced and tenured staff.

More challenging to that of Lincoln’s approach to benefits and services is the benefits and services offered by Southwest Airlines. Due to their focus to provide a more employee-centric benefits package, continually surveying their employees to determine what their employees value, they have implemented a flexible plan that allows the company to change as frequently as needed to maintain its attractiveness to top applicants in a competitive industry, as well as retain their valuable employees, “their most valuable asset”. Southwest’s objective in “hiring the best people and knowing how to find…and treat them” (Jackson, Schuler, & Werner, 2012, p. 577) requires a solid, attractive and competitive benefits package, including job security, in an industry that is not typically known to be competitive in this area.

2. How well do the benefits and services packages serve the business objectives and the needs of the employees? Which package would you prefer? Explain why. Although the benefits and services package offered to Lincoln Electric’s employees is satisfactory and competitive to other similar companies, the interviews held expressed the employees’ main reason for job satisfaction rests with the compensation package, with minimal comments regarding the benefits offered. Southwest employees, however, have experienced and expressed a greater level of satisfaction with the benefits and services offered by their employer. Having a broader, more wide-range of offerings in their benefits package to full-time and part-time employees, it allows the company to meet its objective in attracting the best applicants and caring for their most valuable asset…its people.

Although both benefits and services packages offered by Lincoln and Southwest provide excellent job security, I would personally prefer the package offered by Lincoln, as opposed to Southwest. Southwest may offer a more employee friendly and focused benefits package, however, its flexibility and potential for change seems more appropriate for a younger workforce that has not yet established loyalty to their employer, with the intention of long-term employment. Therefore, as a middle aged employee myself,  my benefits focus and interest lies with a package that can offer more long-term and stable incentives such as employee stock purchase and pension plans, as well as a promising and reliable retirement plan.

3. Could Southwest Airlines adopt the approach to benefits and services used at Lincoln Electric? If so, what would be the advantages and disadvantages for Southwest Airlines of adopting this approach? Be sure to consider how various stakeholders would be affected by such a change. I would not suggest nor support Southwest Airlines adopting the benefits and services packages used by Lincoln Electric. Southwest gains their competitive advantage in their industry through their benefits package, whereas Lincoln does so through their compensation package. Therefore, my reasons supporting the lack of confidence in Southwest’s adoption of like benefits and services to Lincoln’s is because I don’t feel that Southwest’s compensation package is as strong as Lincoln’s in their respective industries.

By adopting a similar benefits and services package as Lincoln’s, Southwest may lose their competitive advantage for attracting top talent. Additionally and as stated earlier, Lincoln’s benefit package is geared toward retention and catered to a tenured workforce, which is not the objective of Southwest Airlines. The need to continually bring young, energetic and new talent into the firm requires an employee friendly and flexible plan that is focused more on short term advantages and offerings, as opposed to long-term. “Southwest seeks to reduce labor costs” (Jackson, Schuler, & Werner, 2012, p. 579) and by doing so, implementing a strong, attractive, but flexible benefits and services plan allows them to meet this reduced labor cost objective, while continuing to bring in new talent and maintain their company’s goal to remain a low-fare, no-frill airline.

Works Cited
Commission, U. S. (2011). Definitive Proxy Statement – Southwest Airlines Co. Washington DC: Southwest Airlines Co. Jackson, S. E., Schuler, R. S., & Werner, S. (2012). Managing Human Resources. Mason, OH: South-Western. Kelly, G. (2014). Retrieved from About Southwest: Lincoln Electric Company. (n.d.). Employees’ Handbook. Lincoln Electric Company – The Welding Experts. Human Resource Services. Retrieved from Taylor, T. C. (2013, November 12). Compensation Today. Retrieved from Communicating Total Compensation to Employees in a Meaningful Way: Zheng, F. (2012). Research on Enterprise Competitive Advantage Based on the Total Compensation Strategy. Communications in Information Science and Management Engineering, 28-29.

Human resource management

1. What do you think was causing some of the problems in the bank home office andbranches? There is clearly a problem with communication, and the effects are felt in thearea of employee commitment. Ruth Johnson who has been workingat the bank’s head office for last two months did not know what the machine she is usingis called or what is does. That shows that the bank did not give her sufficient training tofamiliarize herself with the name and the function of the machine. However, she didknow how the machine works, but this doesn’t mean that she has been trained properly.A huge problem in the bank’s home office is the lack of a proper Training program. It can be an in-house training program especially designed for the new employees at the bank or a practical on-the-job training program. This will give new employees the change to practice, observe others, ask questions, learn from mistakes and familiarize themselveswith the equipment that they are using. It is very important for the bank to utilize itsavailable resources. In this case the supervisor could have given her proper, on-the-jobtraining and informed and familiarized her with the name and function of the machinethat she operates. 2. Do you think setting up an HR unit in the main office would help? Of course I think itwould! Since there are HR-related problems both in the home office and in the branches, it isclear that if a personnel office were set up, it would need to help to coordinate the HRactivities in the branches. 3. What specific functions should it carry out? What HR functions would then be carriedout by supervisors and other line managers? What role should the Internet play in thenew HR organization?

There is room for quite a bit of variation in the answers to thisquestion. Our suggested organization would include: HR Unit: job analyses, planning labor needs and recruiting, providing advising and training in the selection process, orientation of new employees, managing wage and salary administration, managing incentives andbenefits, providing and managing the performance appraisal process, organization-widecommunications, and providing training & developing services. Supervisors and Other LineManagers: interviewing and selection of job candidates, training new employees, appraisingperformance, departmental & personal communications, and training & development.Internet and HR: shift some activities to specialized online service portals and providers. Qs. A pharmaceutical company placed in Pakistan wants to launch its operation in Afghanistan.

Initially they plan to reach out to the market through off the shelf medicines and gradually penetrate through extensive distribution and in the next three years target manufacturing to cater the needs of Afghanistan and Central Asian Republics. Q1: prepare HR planning for the position required to ensure screen of its operations? First of all the company must consider the organisational strategic planning objectives, then the possible available woekforce must be evaluated by identifying both the external nad internal workforce. When these things are completed, forecasts must be develpoed to identify both the demand and supply of human resources.finally HR plans must be developed to provide specific direction for the management of HR activities related to employee recruiting, selection and retention. Q2: Prepare job descriptions and job specification for key personnel’s Executive Positions who would be managing these operations. JOB DESCRIPTION

JOB TITLE: Key Personnel Executive Position
DEPARTMENT: Human Resource Management
GENERAL SUMMARY: Supervises, coordinates and assigns work to ensure department goals and making sure customer needs are met ESSENTIAL JOB FUNCTIONS:
* Supervise the work of employees to enhance performance by coordinating duties, advising on issues and checking work * build effective business relationships with health care partners and customers * prospect for new business

Assignment 1: Case Study, Jack Nelson’s Problem 1. a) What do you think is causing some of the problems in the bank’s home office? 1. Ruth Johnson who has been working at the bank’s head office for last two months did not know what the machine she is using is called or what is does. That shows that the bank did not give her sufficient training to familiarize herself with the name and the function of the machine. However, she did know how the machine works, but this doesn’t mean that she has been trained properly. A huge problem in the bank’s home office is the lack of a proper Training program. It can be an in-house training program especially designed for the new employees at the bank or a practical on-the-job training program. This will give new employees the change to practice, observe others, ask questions,
learn from mistakes and familiarize themselves with the equipment that they are using. It is very important for the bank to utilize its available resources. In this case the supervisor could have given her proper, on-the-job training and informed and familiarized her with the name and function of the machine that she operates. 2. There is also mayor lack of communication in the bank’s home office. Ruth has been working there for almost two months and nobody has briefed or informed her on the name and function of the machine that she is using. The fact that Ruth’s supervisor or her colleagues did not notice that she does not know the function or name of the machine after she is has been using it for two months is worrying. It shows that there is very little interaction and communication between employees, supervisors and managers at the bank’s home office. Communication and interaction between employees are very important. It keep all employees informed, motivated and make them feel valued. In Ruth’s case communication and interaction between the supervisors and employees can be improved by starting a Trainee Performance Appraisal program. This would help… [continues]

Below is a free essay on “Jack Nelson” from Anti Essays, your source for free research papers, essays, and term paper examples. What do you think is causing some of the problems in the bank’s home office and branches?

There seems to be a break down in communication between management and staff. Communication is the lifeline for successful businesses, and it plays a vital role in our lives (O’Rouke, 2010). Communication can only be effective when three fundamental elements are applying. The elements included are total participation from employees, and effective dialogue and listening, which are all missing in this case. In addition, there seem to be no centralizing human resources management within the facility because similar issues were found at different branches. Therefore, it is evident that polices and procedures are lacking; therefore, resulting some of problems at the home office and branches.

Do you think setting up a HR unit in the main office would help?

Without a doubt, setting up a HR unit in the main office would definitely help. HR management would be an effective tool to address some of the issues within the organization. Training and development to optimize proper channel for communicating is an example, which the HR department could coordinate and implement.

What specific functions should a HR unit carry out?

There are many functions a HR unit could implement. First, they could try and reduce the gaps in communication. Second, they could hire training and developing manager to coordinate activities within the organization. Third, they could hire a job analyst manager to define roles, duties and responsibilities as it relates job descriptions. Last, most organizations need a coordinator to organize medical, dental, vision and insurance benefits (Dessler, 2011).

What HR functions would then be carried out by supervisors and other line managers?

The supervisors and line mangers could assist with the selection of candidates for interviews. The supervisors and line mangers are fully aware of jobs responsibility, which makes them perfect individual for… What do you think is causing some of the problems in the bank’s home office and branches? The following are the problems faced bank home office and its branches. 1) lack of Training:

When Jack Nelson was introduced to the entire employee in the home office, he was introduced to Ruth Johnson. Ruth Johnson has been working in a home office for two months, however she does not know what the machine called she used and what it did. That means there is no any HR to assist her about that machine. Organization did not oriented and trained her properly. We can say that: a) There is no on-the-job training for the newly hired employees, b) Supervisors and Managers have to provide to effectively and properly train their employees. C) On Job Training is the quickest and most cost effective method of training. High employee turnover and:

The major problem is a high employee turnover during past eight years. Supervisor tried to find a suitable employee to replace the worker who had quit. Every time an employee was hired, another was seen resigning. As known that employee turnover is a costly expense especially in lower paying job roles, for which the employee turnover rate is highest. Employee turn-over has a high cost attached to organization, not just in monetary terms but also the time the manager has to spend in training. There was no standardization of recruitment process in organization. In addition, there is no participation or contribution from the HR Department in terms of hiring new employees. The office does not have any HR Department process and planning. Employees were hired by supervisors who were over occupied with many job responsibilities. Lack of communication

There is no any communication between branch supervisors, home offices, and other branches. The supervisor employs their own employee without any communication with the main branch. All branch office hired employee without communicate whit their home office. Bank’s supervisor is failure to train their employee. They don’t have much time for their employee. Also they do not know about the performance of their employee. Among the branches and between the main office and the branches were broken down communication. It is very important in any organization for people to communicate. The main office apparently does not know the problem faced by all the branches.

Human Resource Management

The organization that we have chosen is Cathay Pacific Airways, an airline industry that was established in 1946 in Hong Kong by an American Roy Farrell and an Australian Sydney H de Kantzow (Cathay Pacific n.d.a). The company has been named as “Best Airline in the World and Best Airline First Class in the 2012 Business Traveller China Awards” (Cathay Pacific n.d.b). This shows that Cathay Pacific is the one company that has its core competency in the development of world class employees based on their recruitment and selection process that is crucial as a starting point for any achievements. Recruitment is basically the process of identifying and hiring the best-qualified candidate internally or externally for job vacancies offered in an organization (Dessler 2013, p.172). Likewise, Cathay Pacific has emphasised on a few recruitment methods to invite people that are interested to apply for the job offered by them. However, selection is the process of selecting the most suitable candidate in order to fill certain job position by using screening tools like tests, assessment centers, etc that was also practiced by Cathay Pacific (Dessler 2013, p.202). Then, further issues on the recruitment and selection process of Cathay Pacific are analysed as follow.

Types of internal and external job position
There are several types of internal job positions in Cathay Pacific Airlines, Technical Instructor under the department of Flight Operations, Assistant Manager Communication Services / Editor under the department of Corporate Communication and Aircraft Mechanics (Cathay Pacific n.d.c). Besides, examples of the external job positions are Flight Crew, Flight Attendant and Flight Simulator Instructor. Internal recruitment

The types of internal recruitment are promotion where the second officers must achieve his or her target ranking within four-and-a-half years to be promoted as the first officer (Flight Global 2012). Succession planning involves development and recruitment in filling up employer’s top position. As such, Cathay Pacific offers programmes like the Management Trainee Programme to prepare candidates to get promoted and for advancement in the
more challenging role (Cathay Pacific n.d.c). External recruitment

The external recruitment methods of Cathay Pacific are basically online recruiting, advertising and graduate programmes. Cathay Pacific uses online recruitment as it is considered the most effective way hire the best candidate. As such, they have started using their own website and job boards like The Pilot Career Centre (The Pilot Career Centre 2012) and The Recruitment Place (The Recruitment Place n.d.) as job seekers may search the company and job position conveniently by entering keywords, read job description and other details regarding the company or jobs offered (Pilot Career Centre 2012). Examples of jobs offered on the internet are Customer Service Officer, Flight Crew and Flight Attendants (Cathay Pacific n.d.c). The importance of online recruiting is due to convenience, accuracy and also environmental friendly, their application form is known as Cathay Pacific Green Explorer Application Form (Cathay Pacific n.d.d). A problem that might occur is internet overload where employers would end up with deluged resumes. In advertisement that was published in the local newspaper, jobs offered are Pilots, Flight Attendants and many more. Their basic requirements are to have an excellent command of written and spoken English, be physically fit and qualify for a Class I Medical and meet flight deck reach requirements. Cathay Pacific will send their recruits to Australia to undergo a fully paid training upon acceptance. Then, if completion is successful, they will be based in Hong Kong (Airlines Jobs 2012).

Cathay Pacific is looking for people with a genuine interest in aircraft and flying who will make good representatives of Cathay Pacific and have passionate about flying and have enthusiasm about aviation (Zavadszky 2012). The graduate programmes are exclusively for those who have just graduated or looking for new exciting jobs to pursue, namely there are Management Trainee, Engineering Trainee, Customer Services Officer, Cadet Pilot Programme and Flight Attendant (Cathay Pacific n.d.c). No working or flying experience needed, so long as they have completed secondary school, have good passes in maths and science, and are technically appropriate. However, it is an advantage for those who have a degree or diploma, or passes in pilot license subjects (Zavadszky 2012). The recruitment for second officers take place through three entry streams, and three different training programmes which includes the Cadet Pilot Programme, that takes about 61 weeks for those with no or little experience in flying. It will be fully funded in Adelaide, Australia, Cathay Pacific’s flight training centre. Then, for those with flying experience are qualify for a 32-week advanced entry or a 14-week transition training (Zavadszky 2012). After became second officers, they will work on Cathay Pacific’s fleet of Boeing 747-400, Boeing 777, and Airbus A340-300 and A330-300 aircraft, operating worldwide on long-haul routes.

Selection Process
After completing the application form, candidates have to face some tests and interviews before they are accepted to work in Cathay Pacific. Basically, selection process of Pilot, Flight Attendant and Crew, and Officer Staff are almost the same. According to Cathay Pacific (n.d.e), the first step in selection process to be a pilot is to pass the first interview and some tests provided by Cathay Pacific (refer to selection test part). Then, the short-listed candidates who have passed their interview and tests, they are invited to Hong Kong for the second interview and a medical test. The last stage of the selection process is actually a training program, Cadet Pilot Programme, held in Hong Kong. Similarly, for the second officer selection process also need candidates to attend for the first interview where expenses are not covered by the company then, the same process goes on for the final interview if they are qualified (Cathay Pacific n.d.e). According to (n.d.), in Cathay Pacific, there will be two interviewers; one is first or second officer (for officer interview) and Captain (for pilot interview), and a HR department staff. Furthermore, there will be many questions asked by the interviewers. Likewise, they will ask about personal information, behaviors, motivation to work in Cathay Pacific, and knowledge about the company ( n.d.). Also, for the first or second officer and pilot, they are frequently asked about general knowledge questions related to aviation or their job position and situational questions.

Selection Tests
Candidates have to pass some tests provided by Cathay Pacific before proceeding to the second interview and they are English test, Technical knowledge test, Psychometric test, Aptitude test, Reasoning test, and Medical test after succeeded the second interview ( n.d.). •English test

According to (2009), after completing the first interview, candidates must also complete the ICAO English test (English test system for all Airlines Companies). They will be tested for grammar and listening skills for the English test because it is the international language and important for communication. Then only candidate will have next tests. •Technical Knowledge test

Before assessment, Cathay Pacific will provide Job Knowledge Index (JKI) to candidates as the test is based on that book ( n.d.). •Psychometric test
All the airlines company will test the candidate about this test and the purpose for this test is to know about the personality and the integrity of response of the candidate. Cathay Pacific is looking for the candidates who are able to multi-task, to analyze information, to make wise decisions, to work in team, and have leadership skills ( n.d.). •Aptitude test

Cathay Pacific test aptitude using computerized system to test coordination skill, reaction time, recall ability, orientation and mental capacity ( n.d.). •Reasoning test
Same as aptitude test, Cathay Pacific uses computerized system to test reasoning test. Reasoning test in here uses matrices to test the logical ability of candidates ( n.d.). •Medical test

After completing all those tests, candidates have to do medical check-up in Cathay Pacific. They usually check blood pressure, eye test, and ear test. If the candidates pass this medical test, candidates will pass the Class 1 Aircrew medical for the Hong Kong civil Aviation Department and they can proceed to the second interview ( 2009).

Cathay Pacific strongly practices and engages with diversified workforce. Previously Cathay Pacific has 1,577 employees and now it has almost 20,000 employees around the world, of which 9,700 of them are cabin crew from 14 different territories, generations and nationalities, 3,000 pilots from 42 nationalities, predominantly from Hong Kong, Canada, New Zealand, Australia and United Kingdom (Cathay Pacific, 2011). Cathay Pacific believes that multiple cultures, backgrounds, people and languages are essence to strengthen and develop a winning team in the industry (Cathay Pacific, 2011). With a diverse workforce, Cathay Pacific hopes to enhance communications, ensure that views and opinions of people are heard and acted in an appropriate manner. With multicultural employees whom Cathay Pacific has, helps in learning and development within the workforce, which create opportunities for preparation of various roles and responsibilities. These developments and learning to be taught on employees will help strengthen their service, business awareness and interpersonal skills. That eventually helps in building leadership and management skills to enhance professionalism and service quality of crew members. Diverse workforce allows engagement of labour union relationships for example, Cathay Pacific will deal labour union relationships in Hong Kong and across all of their outports, which some has mandatory union recognition legislation, countries alike Canada and Australia (Cathay Pacific 2011).

5.1Racism in recruitment process
According to Leake (2011), Cathay Pacific had faced a racism issue in the recruitment process. He mentioned that there was an Islamic worker who has been working as a Heathrow flight-handling agent for 17 years, applied as a passenger services officer in Cathay Pacific and was rejected. Then, Leake further explained that the applicant tried to send another application letter with different identity that was not showing he is an Islam and he received a called for the interview. According to Hodges (2012), Cathay Pacific employed candidates regardless of gender, race, belief, and religion. However, according to Leake as above it has expressed some racism
issue in Cathay Pacific. In fact, organisations have to be aware that recruiting diverse workforce is really important nowadays. Also, with the ever-changing environment in demographics, recruiting diverse workforce brings more advantages. According to NAS (2005), the first advantage of recruiting diverse workforce is that organisations can attract and retain the best talent. It also helps to create a good image for the organization where it can then establish in partnership easily with minority groups. Furthermore, NAS also mentioned that it could help to expand the market share and help the organization to be more flexible in adapting the changes of market environment. Lastly, organisations can reduce in the turnover rate because they can create a favorable reputation and a good employer brand (NAS 2005). There is no such thing as being racist in an organisation.

Everyone has to appreciate each other regardless of their gender, religion and race. Hence, Cathay Pacific has to encourage and practice fairness when recruiting people. Somehow according to rumors or news of Cathay Pacific saying that it is not a good place to work or being accused as racism regardless of whether the news is true, people would doubt to send their application form and would not willing to work there. Meaning, Cathay Pacific will miss the opportunity in recruiting talented people and would create a bad reputation in the airline industry. Furthermore, because of bad reputation, Cathay Pacific will lose their market share and cannot manage to get high income. There are some suggestions that can be used for Cathay Pacific to prevent such issue to happen again in the future. Cathay Pacific can use computerised system in prescreening the application form. They must also set certain requirements or standards to obtain quality candidate and carry on with the first interview. So, the system will work for them and this helps Cathay Pacific to avoid the subjective judgment in prescreening the application form. Apart from implementing the computerised system, Cathay Pacific has to ensure that their employees understand the importance of achieving goals and function of recruiting diverse workforce, as it should be align with organisation’s needs. By understanding those things, employees at Cathay Pacific can change their perception on the diverse workforce recruitment and support what the organisation is trying to achieve according to the recruitment programme. Furthermore, Cathay Pacific have to ensure the public that this company is the right place to work by referrals
program, providing employee benefits, and supporting woman and minorities’ event. Hence, this can help in bring back their good image of a company who has social responsibility and supports diverse workforce (NAS 2005).

5.2Validation of selection program
By looking at the steps in selection process, Cathay Pacific has a good selection process. They have used the right selection tools to find the most suitable candidate by testing them in fields like personality, knowledge, logical thinking and has three interview stages in order to get accurate and more information about the candidates (Bartram and Baxter 1996). Furthermore, these authors also mentioned that Cathay Pacific uses practical testing in the selection process. Therefore, with this long process, Cathay Pacific expects to get the right person to fit the job in the right position. As mentioned before, to be a pilot or a staff in Cathay Pacific, candidates have to pass some tests and three interviews. Then, completing those processes does not mean that they will officially become employees of Cathay Pacific however, they still have to pass some training programmes provided by the company, like Cadet Pilot Programme for pilots. According to Bartram and Baxter (1996), Cathay Pacific realised that their success is based on their employees, whereas recruiting and hiring incur a high cost. Therefore, they must expertise in hiring the most suitable employee in order to reduce cost and meet goals. Besides, Cathay Pacific ensures that their selection process is reliable and valid. All candidates have to go through the same tests and interviews before they are accepted to join the training program. However, there is a question in validating the result. Cathay Pacific is using computer-based system to perform the tests. As such, the criterion validity is not based on the result of the test and meaning that higher result does not mean to be accepted in Cathay Pacific (Bartram and Baxter 1996).

However, these authors further mentioned that the interviewers (Board of Cathay Pacific) will decide base on their interview and practical in the flying simulation. In here, some problem might occur, which is the subjecting judgment and validating result. When it comes to individual to make decision, subjective opinion is always there. Therefore, the result of recruitment may not be accurate and valid. Likewise, the racism issue in Cathay Pacific, recruitment is also an example of subjective judgment occurring in the company. Hence, Cathay Pacific has to find ways to prevent this subjective judgment happen in order to get maximal recruiting result. First, Cathay Pacific has to reassure the board of directors or interviewers to practice professionalism in judging and making decisions. Next, Cathay Pacific has to come out with a rating scale that can be used as the guideline in marking the candidates (Bruce and Lack 2009). In this rating scale, Cathay Pacific should mention what objectives or standards that they are marking on, therefore; the interviewers may not be misled. Lastly, these authors further explained that there should be more than one person to rate the candidate in order to get accurate result and are able to compare the results. Then, if there is an equally weighted in the result between judges, meaning that the result is taken accurately and fairly.

5.3Conclusion of the Issues
In a nutshell, both issues in Cathay Pacific are actually discussing about the involvement of personal judgment in recruitment and selection process. This should not be happened nowadays because organisations have to be fair in making decision and giving equal treatment for everyone. Furthermore, it has proved that by practicing fairness, organisations would have a good reputation that can bring benefits. Well, Cathay Pacific might face some difficulties in finding synergies to work together with different people. However, the workers need some time and process to adjust themselves with the organisation and by providing training is one of the effective way to help. Furthermore, Fairness can then be achieved if the Board of Directors in Cathay Pacific uses their professionalism in recruiting and selecting candidates.

In conclusion, we would like to say that Cathay Pacific has several steps in their recruitment and selection process where it is crucial for making the right choice to employ suitable employees for the organisation. Likewise, the internal and external recruitment provides a great opportunity for candidates to develop and enhance themselves for a better success in the future, whereas the selection process prepares candidates for the next test or interview by providing them training and so on. As a result, we would
make a firm statement that Cathay Pacific performs a stringent and diligent activity in employing people. However, as for some predicament issues regarding their employment practices, Cathay Pacific has made an effort to prove it wrong by providing suggestions and evidence of their past recruitment results and also by acknowledging the fact that they are “the Best Airline in the World and the Best Airline First Class in the 2012 Business Traveller China Awards” (Cathay Pacific n.d.b).

Airline Jobs 2012, Cathay Pacific Pilot – Second Officer Recruitments, viewed 15 November 2012, Bartram, D & Baxter, P 1996, ‘Validation of the Cathay Pacific Airways pilor selection program’, International Journal of Aviation Psychology, vol. 6, no. 2, pp.149-169. Bruce, JC & Lack, ML 2009, ‘Using subjective judgment to determine the validity of a tutorial performance-evaluation instrument’, Journal of Interdisciplinary Health Sciences, vol. 14, no.1, pp.1-6, Health SA Gesondheid, viewed 16 November 2012, Cathay Pacific (n.d.a), History, viewed 17 November 2012, Cathay Pacific (n.d.b), Press Release Details, viewed 17 November 2012, Cathay Pacific (n.d.c), Careers at Cathay Pacific, viewed 14 November 2012, Cathay Pacific (n.d.d), Cathay Pacific Green Explorer Application Form, viewed 20 November 2012, Cathay Pacific (n.d.e), Frequently Asked Question, viewed 14 November 2012, Cathay Pacific 2011, Cathay Pacific Sustainable Development Report 2011, viewed 20 November 2012, Cathay Pacific Services Ltd 2012, Career News, viewed 15 November 2012, Dessler, G 2013, Human Resource Management, 13th edn, Pearson Education, Harlow.

Strategic HUman Resource Management

Defining SHRM
The purpose of this portion of the paper is to provide an explanation into strategic human resource management (SHRM). This information will look at the ways that some scholars have defined the concept of SHRM, and the role that it serves within an organization. In addition, the first part of this research will examine how a human resource department can actually be called strategic in nature. This information will also be examined in relation to an actual organization. Various models of SHRM will be discussed, and the idea of how they compare to the organization in question will be presented. After reading this portion of the paper, it should become clear that SHRM is much more than simply hiring people. It is also much more than operating within a bubble. It is about actually helping the overall strategy and vision of a company.

The first thing that needs to be done is to provide an actual definition and analysis to what it actually means to be SHRM. In order to define this concept, it is first important to actually explain what is meant by human resources in general. Appleby & Mavin (2000) explain that Human resources are the efforts, skills, and capabilities that people contribute to an employing organization which enable it to continue in existence. Although difficult to define, SHRM is generally perceived as a distinctive approach to managing people which seeks to achieve competitive advantage through the strategic development of a highly committed and capable workforce (s555).

The definition that is provided here explains that human resources is really about the skills that the people of an organization bring together in order to keep it alive. In addition, the authors explain that moving into the realm of SHRM is about managing the human capital of an organization in such a way as to achieve some type of competitive edge. Having not only a committed workforce, but also having a workforce that is highly trained for the job that must be performed achieves the competitive edge. Moving in this direction is where human resources becomes SHRM.

Van Donk (2001) takes this idea one step further by explaining where in the planning process of a company the human resource management role must fit in order to make it strategic in nature. He also explains how this role has evolved in the past twenty years or so: From the 80s onward there have been pleas for integrating human resource management and corporate strategy. A number of authors have been working on approaches to the achievement of what is called Strategic Human Resource Management. These approaches place the human resource management policy formulation at the strategic level. In these approaches to Strategic Human Resource Management it is claimed that: (1) human resource problems are problems solved by linking HRM and strategy formulation at an early stage; and (2) problems with strategy implementation are solved by early adjustment of the HRM to these strategies (299).

In the end, what Van Donk adds to the definition of SHRM is that human resources cannot be called in at the last minute to fix a hiring problem. Instead, human resources must be involved from the very early planning stages in terms of the type of human resources that are needed. This early involvement allows human resources to understand exactly what is needed. It also allows human resources to be able to adjust so that the decisions that are made about the people that are needed can be adjusted immediately to fit new or changed strategies for the company.

Finally, Mueller (1996) adds one additional piece to the information that helps us to formulate an overall definition for SHRM. He explains that: I propose to take the following as the defining features of the ‘orthodox notion of SHRM. According to this notion a strategic utilization of human resources means that: 1. Management is active, not reactive

2. There is high integration between policies
3. An orchestrational role is played by senior management
4. and there is articulation of policies by senior management (759). The information that is provided by these three scholars can help us to create on integrated definition of what is truly meant by SHRM. This concept really means that the human resource department and its leaders are not simply thought of as the people who are given the task of hiring employees. Instead, they are an important part of the strategy formation of a company. These people are a part of the process from the very beginning, and they are given the authority by company management to be taken serious to provide ideas about the strategic planning of the company in terms of the role that employees will play, and the skills that need to help achieve those goals.

The information that is provided should also make it clear that SHRM is more than just about the role that the human resource department of a company plays in the strategic vision of an organization. It is the role of senior management that helps to actually make SHRM work. Senior management must actually give the authority and respect that is needed to make the human resource department a vital part of any strategic vision. This must be more than simply saying that human resources are important for the company. Instead, it means that senior management must act upon it, and they must take an active approach to human resource needs to fulfill those strategic plans. They must communicate with human resource managers, and they must also listen to human resource managers. In the end, it could be easily explained that strategic human resource management is about adjusting the role of human resources. Rather than having a department that reacts to the needs of the company, SHRM is about having a department that is on top of the planning that goes into deciding the human resource needs of the company (McMahan, Bell & Virick 1998: 196). Evaluating SHRM in an organization

In order to evaluate the extent to which human resource management in an organization can be termed strategic, we must first understand some of the basic models that apply to the organization that is being discussed. We must also have an organization that we can discuss in the first place. In order to choose an organization, it is easier, as an example, if an organization is chosen that is widely known by a lot of people. For this, we are going to turn to a description of large accounting firms and the role of human resources in their firms provided by Boxall & Purcell (2000). To Illustrate what we mean about strategic choices in HRM, take the case of a management consulting firm that aims to join the elite cluster of firms that are transnational, if not ‘global’ in their reach (firms such as McKinsey, PricewaterhouseCoopers and Anderson Consulting). There is no doubt that such a firm must have highly selective recruitment and strong development of staff to ensure it can consistently offer clients high-quality service on complex business problems. In this elite strategic group, a synergistic blend of certain human resource policies—such as proactive recruitement channels, high entry standards, high pay, employee ownership and extensive professional education—are critical prerequisites to a firm’s credibility in its sectoral labour market.

On the other hand, it is unlikely that there is much handing on the firm’s choice of job evaluation systems. If any one o fa range of such systems supports its remuneration goals in recruiting and retaining highly qualified consultants, or doesn’t perversely undermine them, then the choice among different systems is not critical. Similarly, the contracting out of payroll or benefits administration in such a firm is not a strategic dimension of its HRM. It is not difficult to meet the requirements of employment contracts in these areas and elite firms are not differentiated from lesser firms on this basis. What is critical, however, is that they firm’s leaders put together and aply the system of broad-based HR policies that will help the firm to join the elite group of professional firms in its sector—although it would be unwise to think that this will happen quickly or be achieved solely through HR strategy (184-185).

From the example that is given by major accounting firms, it is easy to see what makes human resource management strategic, and what does not. It all comes down to the notion of the decisions that are made in terms of moving the company forward in its goals and visions. On the other hand, decisions that really do not affect the visions of the company, such as choosing one piece of software over another to administer payroll, is not something that makes a human resource department strategic.

With all of this in mind, the company that is going to be used as an example to determine how it has implemented, or needs to implement, SHRM is a small software company with which is I am familiar and have some working knowledge of the internal structure that sells communication software to physicians known as Televox Software. The software from the company helps companies immediately send recorded messages to customers to remind them of appointments or past-due bills. The software even allows customers to pay bills right over the internet without any work on the part of the company that wants the feature for its customers.

In order to determine how the company’s human resources are already strategic in some ways, it is important to look at some of the models that explain SHRM. One of these models is known as the open systems theory. The open systems theory states that a company receives inputs from the environment, such as from customers and even other companies, and then uses that information to change how it operates. Wright & Snell (2001) explain the concepts behind the open systems theory: It emphasizes two important characteristics of organizations: the system character, so that the movement in any part of the organization leads to movement in other parts, and the openness to environmental inputs (208).

In terms of human resource management at Televox, the company is very much strategic in this regard. The company is constantly looking for feedback from customers. This feedback, unlike at some companies, is taken very seriously. When a customer complains about the way in which an employee has done his or her job, this information is analyzed to determine where the problem took place. If the problem lies with the employee’s training or motivation, human resources takes actions immediately to alleviate or correct the problem.

A second theory that easily applies to Televox is the universalistic perspective. Colbert (2004) explains that Under a universalistic approach, strategic HR practices are those that are found to consistently lead to higher organizational performances, independent of an organization’s strategy. Examples are such practices as formal training systems, profit sharing, voice mechanisms, and job definition. One might argue that these are not strategic in the sense used elsewhere in the SHRM literature (i.e., contingent on strategy or explicitly aligned with specific strategy) and may simply be terms prudent in the sense that they have been shown to consistently enable a given firm to perform better than it might otherwise (344).

Regardless of what some might think about the universalistic perspective, the ideas behind the theory can led a company to SHRM. In the case of the company in question, Televox, the organization is very definite about defining job duties and providing formal training to employees. However, the company does lack in profit sharing as it is not a publicly traded company. In addition, the company also lacks in actually listening to its employees and giving them a voice in real decision-making. This shows that the company has moved from simple human resource management to strategic human resource management in some ways. However, it also shows that the company is not yet fully involved in the SHRM process.

In terms of the information about Televox at this point in the analysis, it can only be deemed to have SHRM management in the way in which it takes information from the environment that it operates. When customers and others have issues with the services and support that are provided by employees, the company takes this information very seriously. The result is that training or even firings take place. In addition, when people are hired into the company, they learn very quickly that excellent customer service and attention to customer needs are the key to the vision and strategy of the company. This means that these ideas and objectives are going to be key to the way in which employees operate. At the same time, the company is very much about defining job duties and explaining the place that everyone holds in the company in relation to the vision of the company.

However, the company, simply based on the information that we have discussed so far, lacks SHRM in other ways. For example, the company does not give employees a voice in helping to set strategy and goals for the company. In addition, communication between manager and employees is often very much one-sided. The company also does not give incentives that might keep the specialized and trained employees that they need to work in a skilled environment like a software company.

In the next section of this analysis, information and research regarding HR Departments will be discussed. Once this literature review has been completed, we will return to Televox to determine what types of other improvements can be made to the company to move it closer to truly operating with the mindset of SHRM. This move closer to true SHRM can also be seen as providing ways that Televox can actually move closer, as was explained earlier in this paper, to be an elite company in the sector in which it operates. Literature Review

The purpose of this section of the report is to look at research and information regarding HR departments. The background information is being provided in the context of determining the problems and opportunities that exist for HR departments to transition from simply doing human resource management to handling strategic human resource management for the companies in which they operate. What should be taken from the background information that will be presented is that the difficulty that still exists in making that transition in one of understanding of SHRM and old ways of thinking about human resources in general.

Before any background information can be provided, it is important to understand some of the key questions of SHRM so that we will know what to look for in the research that is available on this topic. Colbert (2004) explains that Research on the contribution of human resources (people) and HRM (practices) to organizational effectiveness has addressed a wide array of questions: what is the effect of HR practices on the development of the firm’s human resources? Which HR practices lead to greater organizational performance? To what degree does that depend on firm strategy? How does a firm ensure that its HR Practices ‘fit’ with its strategy? How does it ensure that its individual HR practices fit with one another, or does fit even matter in HR practices? Must the attributes of a firm’s base of human resources always align with an a priori strategy, or can its stock of skills, knowledge, and interactions drive strategic direction? (342).

One of the ideas that exists about human resource management is that it was divided into its various parts in the past. This division of what constitutes human resource management is known as a subfunctional view. This view held that human resource departments actually had various separate roles, such as selecting employees, training employees, and even appraising employees. It has been argued, however, that the view that human resource departments have small functions that must come together for the sake of the company has actually created problems for companies and HR departments.

One of these problems is that the subfunctional view created problems for HR managers to try to understand how all of these functions actually came together. It was often the case that HR managers did not see them coming together. Instead, they were simply seen as separate tasks, such as selecting qualified candidates and then later on evaluating their performance. The end result has been that HR departments have not seen that all of the functions they perform actually do work together to accomplish the overall vision for the company (Wright & Snell 2001: 206).

In fact, Van Donk & Esser (2001: 302) note that human resource managers often view the idea of managing human resources as lying within certain areas of concern and policy for the company and its employees. These areas concern the influence that a company may give to employees and even employee unions, the flow of human resources to various parts of the company, the rewards and benefits that are given to the employees, and the actual design of the work and the jobs that are performed.

It is already clear that viewing each of these areas separately can certainly cause problems for human resource departments. If an HR manager thinks of hiring employees as a separate task from actually training employees or thinking about the jobs they will perform, confusion can easily be created when all of this is brought together when new employees are assigned to a department and told to get to work. There is clearly no harmony in the way that some HR managers think about the assets, that being the human assets, that they are supposed to be managing.

Lundy (1994) also explains, as far as human resources goes in the United States, that their was an old system in place of managing employees. This was a system where those who oversaw personnel decisions really lacked any power or decision-making skills at all. However, she explains that this is changing in the United States, and that the role that human resource officials play within the companies for which they work is evolving. She explains this evolution: There are other issues worth consideration. It would seem that, from a US perspective, a good case can be made for concluding that personnel management in its traditional form has been evolving to a process identified as human resource management (HRM). In particular, the Harvard model and writings demonstrate the nature of the evolution. It incorporates: a strategic orientation; standard personnel management practices, e.g. selection, appraisal; a philosophy and new practices geared towards employee motivation.

It has a strong managerial perspective and, in many ways, the new practices have been management’s pragmatic response to its changing environmental context. It is also worth noting that historical analysis has suggested five different HR management systems linked to environmental conditions. This gives strong emphasis to the contingency-based properties of the current commitment system. While the likely endurance of the commitment system is unknown it is important to take account of the probable strength of the educational and social changes within human resources which have influenced the development of the system. The historical analysis has also pointed up that the different HRM systems denote a shift in the balance of influence between employer and employed. There is a connection here with the literature on the changing face of American industrial relations and the phenomenon of the non-union firm. Certainly the analysis highlights certain extremes in behaviour and perspective, e.g. mutuality/adversarialism, control/commitment, specialization/flexibility, standardization/innovation, alienation/identification and so on (713).

The reason for this evolution and changing dynamic between companies and human resource departments, as well as between human resource departments and employees may lie in the outcome of being more focused on employees and the planning of human resources. In fact, Appleby & Mavin (2000) conducted research to determine what happens when there is an integration of human resource roles and ideas. The research looked at over 800 companies in the manufacturing industry in England. The authors used a self-assessment questionnaire that would report how well each company was achieving a world-class levels of performance, and what was helping to lead to that level of performance. The authors report that actually bringing together all of the roles and functions of HR departments was related to an organization actually attaining world-class level. The authors of the study explain: The results show a positive association between the integration of HR strategy and the world-class status of organizations. Further, those organizations using an integrated HR strategy show better practice and performance with regard to: quality management, managing and developing their people, and their sustainability and innovation (s560).

This study is not the only study to find that actually integrating the roles and duties of human resource departments actually lead to better overall results for the companies in question. Rodwell & Teo (2004) conducted a study of for-profit and non-profit companies in Australia. The study consisted of 61 companies in Australia that operated in the medical industry. Questionnaires were given to company leaders asking about human resource practices. The results of the study found that regardless of whether a company was for-profit or non-profit, human resource practices that actually integrated people and their functions resulted in better performance for the company. As the authors of the study state:

The evidence suggests that as the health sector experiences more global reform in terms of policy and managerial changes (EOHCS 2001) Australian HS firms emphasize the buying of skills, experience and knowledge through selective staffing and other human capital-enhancing practices. Researchers such as Snell and Dean (1992) conclude that the adoption of these strategic initiatives are related to the adoption of strategic HRM and those practices that focus on the creation of human capital required for mastering the new managerial and medical systems and techniques. In this instance, HRM has been used to ensure that human resources are selected to add value to the firms’ quest for efficiency, effectiveness and economy in the Australian health sector (325).

Now, at this point, some might argue that about the ability to take research from one area of the world, or even in one sector, and generalize the findings to all companies and how human resources should be managed across the spectrum. The fact of the matter is that this is an important area of discussion. The research that has been presented clearly shows that the notion of human resource management in companies is changing because it is good for the companies. In organizations where human resource departments are given the authority to integrate their tasks and to worry about the resources that they are supposed to be in charge of, the result has been companies with better levels of overall performance. Still, the argument remains as to the ability to generalize these findings. However, in light of the information that is available, it clearly seems that more research and even more practice is warranted. As Wright, Snell & Dyer state quite clearly: The conference at Cornell was successful in bringing together leading HR academics from around the globe to enhance the emerging international dialogue on SHRM theory and research. The resulting papers suggest general agreement on one point: that differences in institutional environments, and perhaps cultures, serve as boundary conditions with respect to the generalizability of our models and empirical results.

Clearly, however, there is less agreement about the nature of these boundary conditions and the direction and magnitude of their effects, or on the stakeholder vs stockholder controversy. We hope that SHRM theorists and researchers in all corners of the globe will see this situation as a challenge. The papers in this volume represent a promising start. The task now is to build on this work by incorporating a fuller range of boundary conditions in our research, explicitly wrestling with the global universality vs local adaptability issue and experimenting with a wider range of outcomes in our models and studies – preferably doing so through networks of international collaborations and consortiums. Ultimately, we must make absolutely certain that our field continues to hold its own in the ubiquitous drive to globalize (879).

Based on the studies and opinions from scholars in the field of human resource management, it is clear that HR departments must change their focus on how they view people, and how those people fit into the organization. This change must come at the management level, and must actually see human resource departments as part of the management level, rather than as simply another part of the organization that can be ignored. Kazmi & Ahmad (2001) explain the types of questions and focus that comes when human resources are seen as being part of the management level in a company. For example, in the personnel selection/placement area, operational-level activities include the annual staffing and recruitment plans. The managerial-level is more concerned with staff planning for the intermediate-range future. A question posed at the managerial-level is, for instance, if the company is about to set up two plants in different parts of the country, what kind of people will be needed and how will they be found? Strategic-level activities look on the long-term future. Here a question such as this could be posed: what kind of people will be needed to manage and run the organization in the future? The implications of the long-run position are then retraced to guide current selection, placement, and training practices. If, say, a major oil company formulates a strategic plan for major diversification by the year 2005, a relevant question would be: what kind of people should it be recruiting now so that it will have employees capable of running the diversified company five years and beyond? (135). Of course, with all of this discussion about moving human resources to the role of being a strategic part of a company, Schuler (1992: 25) explains that human resource departments need to be part of the team that not only makes strategic decisions, but also helps to set some of the tone for the company.

For example, he explains that human resources can take on three roles: a leadership role, a managerial role, and an operational role. In the leadership role, HR helps to steer the direction of the employees of the company. This can include attitudes and culture that exist in the way that employees approach their jobs and the people they serve. In the managerial role, HR acts to give employees the training and direction they need. HR also gives feedback to the work that is being done, and ways that employees can improve. HR can also help to direct how people work together to get tasks done efficiently. Finally, in the operational role, HR helps to set the function of certain roles. This can be as simple as telling employees that they must smile and greet customers by name.

However, in the light of various functions, HR departments must see themselves as part of the company that actually helps to build profits and results. They can no longer see themselves as simply working for a company. They must see themselves as actually moving a company forward, and having to produce results to show that work and effort. Rogers & Wright (1998) explain this idea. Universal application of macro HRM models of analysis with dynamic constructs for performance may prove more achievable and useful than the search for a single universal linkage of micro HR to a particular measure of organizational performance. Just as happened with the field of economics, human resources management is developing a clearly distinguishable macro side.

The HR field must face the questions of micro-macro linkage, bias in aggregation, and plausible mechanisms of action to connect individual human activity in the form of HRM with organizational performance. How these questions are answered will in large part determine the direction and utility of the filed in the next decade. A case has been made for expanding the concept of performance to enable establishment of a general construct for organizational performance through the adoption of a performance information market concept. The PIM concept needs to be equipped with variables and the model’s mechanism of interaction verified by empirical investigations (328). Problems and Opportunities of Becoming Strategic

Based on the information that was provided in the literature review, it should become clearer that a transition from simple human resource management to strategic human resource management is not going to be something that is going to result in just opportunities for human resource departments. Instead, there are also going to be problems and areas of concern along the way. All of these areas must be addressed and dealt with my HR departments if they are going to be part of the strategic process in companies in the future.

First, with the transition to strategic human resources, HR departments are going to be held accountable for the work that they perform. This means that they cannot simply sit on the sidelines and expect to reap the benefits of being treated like part of the management team without gaining some of the pressures and responsibilities that come with actually being part of the management. This is going to result in HR managers and departments having to actually justify their existence. They are going to have their own goals and objectives that will have to be met. Even more, they are going to have to answer to the senior management of the companies for which they work, as well as the investors of the companies, when the decisions they have undertaken to obtain qualified employees or to hold on to employees do not go as planned. They are also going to be expected to communicate problems and concerns more openly, rather than lurking in the shadows waiting to be noticed by those in power.

Another area of opportunity or problem, depending on where you stand, is going to be that human resource personnel can no longer be people who sit and shuffle paper. It will not matter if we are talking about the HR manager or the associate sitting in the office. The fact of the matter, everyone who works in the HR department is going to have to be trained not only in how to interview and hire employees, but also how to develop plans to deal with strategies that will move a company forward. In fact, it does not seem far-fetched at all to assume that more time will be spent by those in HR departments developing strategies and analyzing what is working and what is not as it relates to employee operation and performance.

Of course, with all of these areas of concern will come many opportunities and benefits for HR departments to work toward SHRM. First, this is the chance for those who work in HR departments to truly be taken seriously as leaders and managers. They can come out of the shadows and stop being seen as employees who are removed from the actual work that is being done in the company. Instead, they can be viewed by employees as being relevant to the operations of the company. These individuals can also be seen as having the abilities to truly be effective leaders.

At the same time, all of this promises success for more than just the companies or those who work in HR departments. The change from human resource management to SHRM will mean that employees will be recruited with the idea that they are truly valuable, and how they are treated is important for the future of individual companies. Of course, for employees and potential employees, this will also spell added responsibility. Employees will have to show that they have the skills and qualifications that are necessary for the specific job or function they will play within the company.

However, they will also need to show that they can learn and expand as the strategic plans and goals for the company change. Just as HR managers will have to adjust, the move to SHRM means employees will be affected, and they will have to change as well. However, if all of this comes together, the end result should be a great improvement in how companies operate. The research shows that companies that are involved with SHRM perform at a higher level. The research also shows that these companies are in a better place to provide world-class service. Application of SHRM to an Organization

Now that we have analyzed the research leading to SHRM, it is time to turn back to Televox Software and the ways in which it can improve upon SHRM in its operation. First and foremost, the research shows that HR departments must communicate clearly and accurately the expectations to new employees. At Televox, new employees are not always give the full range of their duties until they have already been on the job. It is true that they are given the specific duties of the job for which they are hired. However, they are often not told that they will be cross-trained to handle duties of other employees with those employees are not available to help customers or are on vacation. This sometimes leads to employees who are not happy with the job once they are hired.

A move to SHRM at the company will mean that the full range of expectations and duties will be provided to employees from the beginning. In fact, a move to SHRM would mean that he HR department would seek out employees who enjoy the challenge of actually having to take on duties that are outside of their specific roles within the company. Instead of hiring people who are only skilled at one job, and only want to be skilled in that job, those who make hiring decisions would work to gain employees that want to be well-versed in many duties within the organization.

At the same time, a move to SHRM would make the company realize that having skilled employees who are motivated by the strategic plans for the company have to be compensated and treated with respect and dignity. Currently, the company shows its respect for employees in basic ways, such as to give away free lunch and other items. However, when it comes to listening to employee concerns about working conditions, the company is not always responsive, either openly or in future moves of the company. The organization needs to show more openly that it takes employee concerns seriously, and that it realizes the employees are trained and skilled enough to know when to provide feedback about working conditions that should be taken seriously by management (McMahan, Bell & Virick 1998: 198).

Of course, it must be understood that moving closer to full SHRM is not going to be something that can occur in a short amount of time. The reason for this is that the company have dozens of employees that have been with the company for years. Adjusting to a way of doing business that focuses more on employee skills may be something that is not taken seriously by existing employees. The result is going to be some who are on board with the SHRM measures, and some who are not. All employees will have to be brought up to speed with the new plans, or some employees will have to be informed of the consequences of not getting on board with the new strategic plans for the company.

In the end, the research and actual application of SHRM shows that moving in this direction is good for companies. However, the research should leave no doubt that the transition is difficult, and it does require changing well-established attitudes and roles. These are attitudes that have existed for decades, and they are not going to change quickly. On the other hand, as with many things that occur in the world of business, as companies realize that advantages that come with SHRM, more will move in that direction and require acceptance of the policies that come with it (Wright & McMahan 1992: 316; Siddique 2004: 219).

Appleby, A. & Mavin, S. 2000. ‘Innovation not imitation: Human Resource Strategy and the Impact on World-Class Status,’ Total Quality Management, vol. 11, no. 5, s554-s561. Boxall, P. & Purcell, J. 2000. ‘Strategic Human Resource Management: Where Have we Come From and Where Should we be Going?’ International Journal of Management Reviews, vol. 2, no. 2, pp. 183-203. Colbert, B. A. 2004. ‘The Complex Resource-Based View: Implications for Theory and Practice in Strategic Human Resource Management,’ Academy of Management Review, vol. 29, no. 3, pp. 341-356. Kazmi, A. & Ahmad, F. 2001. ‘Differening Approaches to Strategic Human Resource Management,’ Journal of Management Research, vol. 1, no. 3, pp. 133-140. Lundy, O. 1994. ‘From Personnel Management to Strategic Human Resource Management,’ International Journal of Human Resource Management, vol. 5, no. 3, pp. 687-720. McMahan, G. C., Bell, M. P. & Virick, M. 1998. ‘Strategic Human Resource Management: Employee Involvement, Diversity, and International Issues,’ Human Resource Management Review, vol. 8, no. 3, pp. 193-214. Mueller, F. 1996. ‘Human Resources as Strategic Assets: An Evolutionary Resource-Based Theory,’ Journal of Management Studies, vol. 33, no. 6, pp. 757-785. Rodwell, J. J. & Teo, S. T. T. 2004. ‘Strategic HRM in For-Profit and Non-Profit Organizations in a Knowledge-Intensive Industry,’ Public Management Review, vol. 6, no. 3, pp. 311-331. Rogers, E. W. & Wright, P. M. 1998. ‘Measuring Organizational Performance in Strategic Human Resource Management; Problems, Prospects, and Performance Information Markets,’ Human Resource Management Review, vol. 8, no. 3, pp. 311-331. Schuler, R. S. 1992. ‘Strategic Human Resource Management: Linking the People with the Strategic Needs of the Business,’ Organizational Dynamics, vol. 21, no. 1, pp. 18-32. Siddique, C. M. 2004. ‘Job Analysis: A Strategic Human Resource Management Practice,’ International Journal of Human Resource Management, vol. 15, no. 1, pp. 219-244. Van Donk, D. & Esser, A. 1992. ‘Strategic Human Resource Management: A Role of the Human Resource Manager in the Process of Strategy Formation,’ Human Resource Management Review, vol. 2, no. 4, pp. 299-315. Wright, P. M. & McMahan, G. C. 2001. ‘Theoretical Perspectives for Strategic Human Resource Management,’ Journal of Management, vol. 18, no. 2, pp. 295-320. Wright, P. M. & Snell, S. A. 1991. ‘Toward an Integrative View of Strategic Human Resource Management,’ Human Resource Management Review, vol. 1, no. 3, pp. 203-225. Wright, P. M., Snell, S. A. & Dyer, L. 2005. ‘New Models of Strategic HRM in a Global Context,’ International Journal of Human Resource Management, vol. 16, no. 6, pp. 875-881.

Human Resource


Human resource management (HRM, or simply HR) is the management of an organization’s workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture and ensuring compliance with employment and labor laws. In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will also serve as the company’s primary liaison with the employees’ representatives (usually a labor union).

The human resources of an organization consist of all people who perform its activities. Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function.

The activities involved in HRM function are pervasive throughout the organization. Line managers, typically spend more than 50 percent of their time for human resource activities such hiring, evaluating, disciplining, and scheduling employees. Human resource management specialists in the HRM department help organizations with all activities related to staffing and maintaining an effective workforce. Major HRM responsibilities include work design and job analysis, training and development, recruiting, compensation, team-building, performance management and appraisal, worker health and safety issues, as well as identifying or developing valid methods for selecting staff. HRM department provides the tools, data and processes that are used by line managers in their human resource management component of their job.


According to Bohlander et al (2001), human resource management include
consolidation of a diverse workforce to achieve a common goal. While Ivencevich (2001) also defines human resource management as a function that is implemented in an organization to help facilitate the effective use of human resources to achieve organizational and individual goals.

In addition, there are various perspectives on human resource management focus, namely:

• Human resource management is considered the managing of human management employees as direct and interpersonal activities.

• Human resource management as personnel management with emphasis on technical skills for evaluation, selection, training and so on.

• Human resource management as a strategic management that emphasizes employees as assets in an organization.




Nestlé’s foundation was built in 1867 on humanitarian needs and social responsibility when Henri Nestlé, a trained pharmacist, developed a healthy and economical alternative source of infant nutrition to save the life of an infant who could not be breastfed.

Today, more than 140 years later, Nestlé continues with its founder’s legacy to improve lives.


Generations of Goodness

The vast Nestlé Group started humbly ~ with the vision of one Swiss chemist, Henri Nestlé. At a time when there was high infant mortality in Europe due to malnutrition, this dedicated man began experimenting with nutritious food supplements to overcome the problem. In 1867, he was approached to help an ailing premature infant who was unable to accept his mother’s milk or any of the conventional substitutes. The infant began to take the milk food supplement he had developed, and a life was saved. The product, called Farine Lactée Nestlé, was soon marketed throughout much of Europe, and a new brand name began to take on life.

The Nestlé Coat-of-Arms.

The Nestlé Coat-of-Arms

Henri Nestlé adopted his own coat of arms as a trademark in 1867. Translated from German, Nestlé means little nest and the now-famous symbol is universally understood to represent nurturing and caring, security, nourishment and family bonding. These attributes are still the guiding legacy for the company Henri Nestlé founded as it fulfils its commitment to ‘Good Food, Good Life.’

The first merger

In 1905, the Nestlé Company merged with the Anglo-Swiss Condensed Milk Company, the first condensed milk factory which opened in Switzerland in 1866. Nestlé entered into the milk chocolate business in 1904 when Peter & Kohler Swiss General Chocolate Company produced milk chocolate under the Nestlé trademark. The chocolate company later joined the Nestlé Group in 1929.

While the original business was based on milk and dietetic foods for children, the new Nestlé grew and diversified its range of products, through acquisitions and mergers with the better known brands of the time. For example: The manufacturing of LACTOGEN began in 1921, and in the same year,
a beverage containing wheat flour was marketed under the brand name MILO. In 1938, NESCAFÉ, the world’s first instant coffee was introduced. Then, in 1947, the MAGGI Company, manufacturer of soups and bouillon invented by Julius Maggi merged with Nestlé.

Nestlé continued to expand through the years with some major acquisitions.


Today, the Nestlé Company still adheres to its founder’s beliefs and principles and is, therefore, very much people-oriented, and committed to understanding its consumers’ needs throughout the world in order to provide the best products for their lives.

Nestlé, Bringing ‘Good Food, Good Life’

As the leading Food, Nutrition, Health and Wellness Company, Nestlé is the provider of the best food for whatever time of day and for whatever time of your life. Nestlé has grown to become the world’s largest food company offering more than 8,500 brands and 10,000 products. With its headquarters in Vevey, Switzerland, Nestlé has more than 456 factories spread over 80 countries, and employs more than 283,000 people.


Our history begins back in 1866, when the first European condensed milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company.


In Vevey, Switzerland, our founder Henri Nestlé, a German pharmacist, launched his Farine lactée, a combination of cow’s milk, wheat flour and sugar, saving the life of a neighbour’s child. Nutrition has been the cornerstone of our company ever since. “Henri Nestlé, himself an immigrant
from Germany, was instrumental in turning his Company towards international expansion from the very start. We owe more than our name, our logo and our first infant-food product to our founder. Henri Nestlé embodied many of the key attitudes and values that form part and parcel of our corporate culture: pragmatism, flexibility, the willingness to learn, an open mind and respect for other people and cultures.” Peter Brabeck-Letmathe, Nestlé Chairman


The Anglo-Swiss Condensed Milk Company, founded by Americans Charles and George Page, merged with Nestlé after a couple of decades as fierce competitors to form the Nestlé and Anglo-Swiss Milk Company.

Nestlé in Malaysia


Nestlé’s commitment to providing quality products to Malaysians dates back almost 100 years ago. Nestlé began in Malaysia in 1912 as the Anglo-Swiss Condensed Milk Company in Penang and later, growth and expansion made a move to Kuala Lumpur necessary in 1939.

Since 1962, with its first factory in Petaling Jaya, Nestlé Malaysia now manufactures its products in 7 factories and operates from its head office in Mutiara Damansara.

The Company was publicly listed on the KLSE now known as Bursa Malaysia Berhad on 13 December, 1989. Today, the Company employs more than 5000 people and manufactures as well as markets more than 300 Halal products in Malaysia. Its brand name such has MILO®, NESCAFÉ®, MAGGI®, NESPRAY® and KIT KAT® have become trusted household names and enjoyed for generations.





As companies reorganize to gain competitive edge, human resources plays a key role in helping companies deal with a fast-changing competitive environment and the greater demand for quality employees. Research conducted by The Conference Board has found six key people-related activities that human resources completes to add value to a company:

1. Effectively managing and utilizing people.

2. Trying performance appraisal and compensation to competencies.

3. Developing competencies that enhance individual and organizational performance.

4. Increasing the innovation, creativity and flexibility necessary to enhance competitiveness.

5. Applying new approaches to work process design, succession planning, career development and inter-organizational mobility.

6. Managing the implementation and integration of technology through improved staffing, training and communication with employees.


Recruitment is the process of attracting, screening, and selecting employees for an organization. The different stages of recruitment are: job analysis, sourcing, screening and selection, and onboarding.

The Four Stages
Job analysis involves determining the different aspects of a job, such as through job description and job specification. Job description describes the tasks that are required for the job. Job specification describes the requirements that a person needs to do that job.

Sourcing means using several strategies to attract or identify candidates. Sourcing can be done by internal or external advertisement. Advertisement can be done by local or national newspapers, specialist recruitment media, professional publications, window advertisements, job centers, or through the Internet.

Screening and selection is the process of assessing the employees who apply for the job. The assessment is conducted to understand relevant skills, knowledge, aptitude, qualifications, and educational or job related experience of employees. Some ways of screening are screening resumes and job applications, interviewing, and job related or behavioral testing.

After screen and selection, the best candidate is selected. On boarding is the process of helping new employees become productive members of an organization. A well-planned introduction helps new employees become fully operational quickly and is often integrated with the company and environment.

Recruitment Approaches
There are many recruitment approaches as well.
In-house personnel may manage the recruitment process. At larger companies, human resources professionals may be in charge of the task. In the smallest organizations, recruitment may be left to line managers.

Outsourcing of recruitment to an external provider may be the solution for some businesses. Employment agencies are also used to recruit talent. They maintain a pool of potential employees and place them based on the requirement of the employer. Executive search firms are used for executive and professional positions. These firms use advertising and networking as a method to find the best fit. Internet job boards and job search engines are commonly used to communicate job postings.

Selection is the process of selecting a qualified person who can successfully do a job and deliver valuable contributions to the organization. The term can be applied to many aspects of the process, such as recruitment, selection, hiring, and acculturation. However, it most commonly refers to the selection of workers. A selection system should depend on job analysis. This ensures that the selection criteria are job related.

Selection Requirements
The requirements for a selection system are knowledge, skills, abilities, and other characteristics, commonly known as KSAOs. Personnel selection systems employ evidence-based practices to determine the most qualified candidates and involve both the newly hired and those individuals who can be promoted from within the organization. Common selection tools include ability tests (cognitive, physical, or psychomotor), knowledge tests, personality tests, structured interviews, the systematic collection of biographical data, and work samples. Development and implementation of such screening methods is sometimes done by human resources departments. Larger organizations hire consultants or firms that specialize in developing personnel selection systems. Metrics Two major factors determining the quality of a newly hired employee are predictor validity and selection ratio. The predictor cutoff is a test score differentiating those passing a selection measure from those who did not. People above this score are hired or are further considered while those below it are not. On the other hand, the selection ratio (SR) is the number of job openings (n) divided by the number of job applicants (N). This value will range between 0 and 1, reflecting the selectivity of the organization’s hiring practices. When the SR is equal to 1 or greater, the use of any selection device has little meaning, but this is not often the case as there are usually more applicants than job openings. Finally, the base rate is defined by the percentage of employees thought to be performing their jobs satisfactorily following measurement. After using these tools a person is selected for the job.

Orientation tactics exist to provide new employees enough information to adjust, resulting in satisfaction and effectiveness in their role.

Employee orientation, also commonly referred to as onboarding or organizational socialization, is the process by which an employee acquires the necessary skills, knowledge, behaviors, and contacts to effectively transition into a new organization (or role within the organization). Orientation is a reasonably broad process, generally carried out by the human resource department, that may incorporate lectures, videos, meetings, computer-based programs, team-building exercises, and mentoring. The underlying goal of incorporating these varying onboarding tactics is to provide the employee enough information to adjust, ultimately resulting in satisfaction and effectiveness as a new employee.

Organization Socialization Model
A good way in which to envision this process is through understanding the organization socialization model (see Figure 1). This chart highlights the process of moving the employee through the adjustment stage to the desired outcome:

New Employee Characteristics – Though this segment of the model overlaps with other human resource initiatives (such as recruitment and talent management), the characteristics of an employee are central to the strategies best employed as they move through the orientation process. Characteristics that are particularly useful in this process are extroversion, curiosity, experience, pro-activeness, and openness.

New Employee Tactics – The goal for the employee is to acquire knowledge and build relationships. These relationships in particular are central to understanding company culture alongside acquiring resources to help expedite the on boarding process. Organizational Tactics- The organization should similarly seek to emphasize relationship building and the communication of knowledge, particularly organizational knowledge that will be useful for the employee when navigating the company. The company should also employee many of the resources mentioned above (videos,
lectures, team-building exercises) to complement the process.

Adjustment – Through combining the above three inputs, the employee should move through the adjustment phase as they acclimate to the new professional environment. This should focus primarily on knowledge of the company culture and co-workers, along with increased clarity as to how they fit within the organizational framework (i.e. their role).

Outcomes – The goal of effectively orienting the employee for success is twofold: minimize turnover while maximizing satisfaction. The cost of bring new employees into the mix is substantial, as a result high turnover rates are a significant threat to most companies. Ensuring that the onboarding process is effective significantly reduces this risk. Additionally, achieving high levels of employee satisfaction is an enormous competitive advantage, as satisfied employees are motivated and efficient.

The desired outcome from an onboarding process is fairly straightforward, ensuring the new employee(s) is well-equipped to succeed in their new professional environment. However, some critics of orientation processes stipulate that sometimes the extensive onboarding process can confuse the employees relative to their role, as most of their time is spent in company-wide learning as opposed to role-centric learning. While this criticism may be true in some contexts, it can be offset through a more role-specific on boarding process. It is generally acknowledged that orientation strategies generate positive outcomes and returns on investment.

A core function of HR management is development, which entails training efforts designed to improve personal, group, or organizational effectiveness. Employee development helps organizations succeed. Human resource development consists of training, organization, and career development efforts to improve individual, group, and organizational effectiveness.

Training is one of the most important ways to develop employees. Training is organizational activity intended to improve the performance of individuals and groups in organizational settings. Training and development has three important steps: training, education, and development.· Training: This activity focuses on an individual’s current job and is evaluated based on that current job.· Education: This activity focuses on jobs an individual might hold in the future and is measured based on those potential jobs.· Development: This activity focuses on potential future activities of the organization and is therefore extremely challenging to evaluate.

Training and Development
There are several categories of stakeholders that are helpful in understanding training and development. The sponsors of training and development are senior managers. The clients of training and development are business planners. Line managers are responsible for the coaching, resources, and performance. The participants are the people who actually go through the training and development process. The facilitators are Human Resource Management staff. The providers are specialists in the field. Each of these stakeholder groups has their own agenda and motivations, which can cause conflict with the agendas and motivations of other stakeholder groups. \ Talent development refers to an organization’s ability to align strategic training and career opportunities for employees. Talent development, part of human resource development, is the process of changing an organization, its employees, its stakeholders, and groups of people within it, using planned and unplanned learning, in order to achieve and maintain a competitive advantage for the organization.

Performance Evaluation
Performance evaluation is the process of assessing an employee’s job performance and productivity, usually for a specified period of time.Performance evaluation or performance appraisal is the process of assessing an employee’s job performance and productivity. The assessment is conducted based on some pre-established criteria that align with the goals
of the organization. Some other aspects are also considered to assess the performance of the employee, for example, organizational citizenship behavior, accomplishments, potential for future improvement, strengths and weaknesses, etc. The management of performance plays a vital role to the success or failure of the organization. An ineffective performance evaluation system creates high turnover and reduces employee productivity. This is why performance evaluation is very important for every organization.

Methods of Performance Evaluation

Objective production: Under this method, direct data is used to evaluate the performance of an employee, such as sales figures, production numbers, the electronic performance monitoring of data entry workers, etc. However, one drawback of this process is that the variability in performance can be due to factors outside the employees’ control. Also, the quantity of production does not necessarily indicate the quality of the products. Still, this data reflects performance to some extent.

Personnel: This is the method of recording the withdrawal behavior of employees, such as being absent, being in an accident at work, etc. This personnel data usually is not a comprehensive reflection of an employee’s performance.

Judgmental evaluation: This is a collection of methods to evaluate an employee. Some of the methods are described below- ·

Graphic Rating Scale: graphic rating scales are the most commonly used performance evaluation system. Typically, the raters use a 5 to 7 point scale to rate employees’ productivity. Employee-Comparison Methods: rather than subordinates being judged against pre-established criteria, they are compared with one another. This method eliminates central tendency and leniency errors but still allows for halo effect errors to occur.·

Behavioral Checklists and Scales: behaviors are more definite than traits. Supervisors record behaviors of what they judge to be job performance
relevant, and they keep a running tally of good and bad behaviors and evaluate the performance of employees based on their judgement.

Peer and Self Assessments:Peer Assessments: members of a group evaluate and appraise the performance of their fellow group members. Self-Assessments: for self-assessments, individuals assess and evaluate their own behavior and job performance.

360-Degree Feedback: 360-degree feedback is multiple evaluations of employees which often include assessments from superior(s), peers, and themselves.

Career Path Management
Career path management requires HRM to plan and then actively manage employee skills in the pursuit of successful professional careers. Career path management
Career path management refers to the structured planning and the active management choice of a employee’s professional career. The results of successful career planning are personal fulfillment, a work and life balance, goal achievement, and financial security. A career refers to the changes or modifications in employment through advancement during the foreseeable future. There are many definitions by management scholars of the stages in the managerial process. The following classification system with minor variations is widely used: • Development of overall goals and objectives.

• Development of a strategy.
• Development of the specific means (policies, rules, procedures, and activities) to implement the strategy. • Systematic evaluation of the progress toward achievement of the selected goals and objectives to modify the strategy, if necessary.

Human Resource Development
Human Resource Development (HRD) is the central framework for the way in which a company leverages an effective human resources department to empower employees with the skills for current and future success.
The responsibility of the human resources department in regards to employee development primarily pertains to varying forms of training, educational initiatives, performance evaluation, and management development. Through employing these practices, human resource managers can significantly improve the potential of each employee, opening new career path venues by expanding upon an employee’s skill set.

This is achieved through two specific human resource objectives: training and development (TD) and organizational development (OD). Training and development, as stated above, is primarily individualistic in nature and focused on ensuring employees develop throughout their careers to capture more opportunity. Organizational development must be balanced during this process, ensuring that the company itself is leveraging these evolving human resources to maximum efficiency. Depending too heavily upon TD may result in an organization incapable of capitilizing on employee skills while focusing too much on OD will generate a company culture adverse to professional development. Therefore human resource departments are central to empowering employee’s down successful career paths.

Some Dimensions of Career Management
The first step of career management is setting goals. Before doing so the person must be aware of career opportunities and should also know his or her own talents and abilities. The time horizon for the achievement of the selected goals or objectives–short-term, intermediate, or long-term–will have a major influence on their formulation. Short-term goals (one or two years) are usually specific and limited in scope. Short-term goals are easier to formulate. They must be achievable and relate to long-term career goals. Intermediate goals (3 to 20 years) tend to be less specific and more open ended than short-term goals. Both intermediate and long-term goals are more difficult to formulate than short-term goals because there are so many unknowns about the future. Long-term goals (over 20 years) are the most fluid of all. Lack of life experience and knowledge about potential opportunities and pitfalls make the formulation of long-term goals and objectives very difficult. Long-term goals and objectives, however, may be easily modified as additional information is received without a great loss
of career efforts because of experience and knowledge transfer from one career to another.

Others Focuses of Career Management
Making career choices and decisions is the traditional focus of careers interventions. The changed nature of work means that individuals may now have to revisit this process more frequently now and in the future, more than in the past. Managing the organizational career concerns the career management tasks of individuals within the workplace, such as decision-making, life-stage transitions, and dealing with stress. Managing “boundless” careers refers to skills needed by workers whose employment is beyond the boundaries of a single organization, a work style common among, for example, artists and designers. As employers take less responsibility, employees need to take control of their own development to maintain and enhance their employability.



Human Resource Management involves the recruitment and management of the people who work in an organization. The focus of Human Resource Management is to attract, select, train, motivate and compensate employees, while making sure that they comply with employment and labor laws. A team of professionals cannot be built by an organization without good Human Resource Management. As a result, businesses with good Human Resource Management (HRM) have higher profits than businesses without or with poor HRM.

Effective hiring and training practices, creating employees who are motivated and rewarded for their hard work, and maintaining a good relationship between employees and the company are all results of good Human Resource Management. Even for small businesses, managing the human resource aspect of the business is very important, and can only be done through good Human Resource management



• Devanna, M., Fombrun, C. & Tichy, N . 1984. A Framework For Strategic Human • Resource Management In Strategic Human Resource Management, New • York: John Wiley and Sons.

• Brewster, C. & Larsen, H. H. 1992. Human Resource Management in Europe: Evidence • From Ten Countries. International Journal of Human Resource Management • 3 (3): 409434.




Human Resource Activities of Qantas Airways

The Qantas Airways is the largest airline in Australia. Its Human Resource Management operates in the company in four major areas, which are business segments, corporate, shared services, development, and learning. This report gives limelight to the Qantas airways HRM and its role in ensuring perfect operations of the company. It further discusses change management and job analysis and design. The company has undergone intensive change management such as cutting of prices and labor costs in order to ensure high productivity, moderation of wages as well as the introduction of flexible structures through a versatile and motivated workforce. Moreover, the HRM is also responsible of ensuring that right people are hired and given necessary training under job analysis and design.

However, despite the roles that the company has entrusted the HRM, there have been heightened cases of accidents and strikes from dissatisfied workers alleging that they are paid meager salaries. This shows a HRM gap in delivering its responsibilities. Therefore, the report further argues that the HRM has failed in its change management and job design and analysis strategy. In order to correct the situation, the report further proposes that the HRM change its training and communication model. As a means to an end, the report discusses some of the implications emerging from the HRM problems and ends with a comprehensive summary. Description of Qantas and their HRM Activities

The Qantas Airways is Australia’s largest airline. It has a solid history as it began its business years back by transporting passengers and mails. Today, the company has expanded its operations in almost 140 destinations across the globe. It is Australia’s largest employers with around 37,000 employees. The human resource management operates in the company in four major areas, which are business segments, corporate, shared services, and development and learning. Under corporate level, the HRM is responsible for employees’ remuneration as well as benefits, the industrial relations of the airline with its competitors and development of the management. In the business segment level, the HR teams often collaborate with other business segments to ensure successful delivering of strategies that will ensure competitive advantage.

Human resource has a major responsibility in the company and under shared services; the HRM is responsible of managing workers records, supporting remuneration and recruitment process and managing employees’ compensation as well as coming up with strategic plans on staff travelling schedules and schemes (Belobaba, Odoni and Barnhart, 2009). Finally, under the learning and development level, the HRM comes up with training programs for employees to help them deliver their work effectively. HR Functions: Change Management and Job Analysis and Design at the Qantas Airways Discussion of Two HR functions in the Qantas

Change Management
The Qantas airline was formerly owned by the government hence did not perceive efficiency and profits as its prime goal (Rothkopf, 2009). After its privatisation in 1995, the HRM had to adopt various management practices in order to overcome the company’s external and internal influences. The HRM in their change management has emphasised on cutting costs and more so reduction of labour costs to guarantee heightened productivity, moderation of wages as well as the introduction of flexible structures through a versatile and motivated workforce (Marks, 2007). Cutting labour costs in the Qantas airways have involved strict measures from the HRM such as reducing wages and salaries through eliminating costly practices (Hernandez, 2011.). The Qantas airline HRM has undertaken immense changes in order to cope with diverse external and internal factors (Gillen and Morrison, 2005). Various factors led to changes in the HR management such as the need to have more profits in the company and the fact that the company was under government ownership.

This means that the airline had maintained its authoritarian hierarchical structure, autocratic form of leadership, and strict procedures and rules (Hughes, 2012). In addition, the airline has been involved in a major change as far as training is concerned and in 2003, the HRM facilitated in the expansion of the company’s apprenticeship programme (Gunn, 1988). According to Kirkpatrick’s model of learning and training, training helps in ensuring affirmative results (Kearns, 2010). Job Analysis and Design

Job design and analysis is the cornerstone of the Qantas HRM. Job analysis can be viewed as the hub of all human resource management activities that are needed for effective organizational functioning (Berman et al, 2009).
Under job analysis, the HRM is responsible for planning, recruitment, selection, placement, and induction of workers (Berman et al, 2009). The procedures that are often supported by job analysis process include personnel selection, training, job evaluation as well as performance appraisal (Berman et al, 2009). In addition, the process of job analysis supports the Qantas organizational strategy in dealing with market competition and talent crisis. According to human resource theory, strategic HRM focuses on connecting all HR functions with organizational goals (Rothwell and Benscoter, 2012). The Qantas airline HRM in the process of job analysis determines various training needs of workers. Moreover, in job analysis process, the HRM determines on some of the things that affect behavior in the company. After job analysis process, the next step is job design, which aims at outlining and organizing duties, responsibilities, as well as tasks in a single unit in order to achieve particular objectives. Job design in the Qantas airways is essential in enabling effective feedback. In addition, training is an imperative part in job design in order to make sure that employees are conscious of their work demands. Training encompasses leadership training to employee orientation (Aulenbach, 2007).

Development and training plays an imperative role in ensuring success of a company. Today, most organizations view training as an imperative role of human resource (Price, 2011). From research conducted, it is apparent that most organizations such as the Qantas airways are spending a lot of money on training with a belief that it will consequently give them a competitive advantage in both global and local market (Jackson, Schuler and Werner, 2011). According to human resource theory (Bacon et al, 2009), workers need maximum support from human resource function. In that case, the Qantas airways offer training to staff in order to motivate them as well as ensure competitive advantage in the company. Frances (2009) avows that training is imperative in ensuring imperative piloting skills. In 2009, the company opened approximately $10 million staff training centers in an effort to build on economies of scale. The HRM through job design help the workforce to make vital adjustments. Problems and Implications Faced by Qantas

Although the two major basic functions of HRM is to ensure successful change management and job analysis and design, the Qantas airline has undergone through various challenges in these two areas. The HRM in their change management focused on cutting costs such as labor costs in order to increase productivity, ensure moderate workers’ salary and introduce flexible structures. However, they have failed in ensuring effective and non-biased change management. This is because, workers recently have been complaining of being paid meager salaries and even gone for strikes. Under change management, they should have ensured successful remuneration of employees. However, it is embarrassing to note that a reputable company like Qantas with such successful change management strategy has failed to take care of its employees. The unsolved salary issues have caused employee outcry and various scandals in the company.

The pilots have been protesting over meager salaries and the union workers have continued to demonstrate over pay inequality arguing they are paid 25% less than their equals in Victoria (Hernandez, 2012). In a survey that was conducted in 2012, on three thousand Qantas employees, the workers expressed dissatisfaction with the management of the company mostly the HRM (McDonald, 2012). Serious staff challenges have continued threatening the company yet up to now the HRM is still reluctant to come up with a new change management model such as ADKAR model that will cater for the interests of workers and allow the company to focus activities on particular business results (Hiatt, 2006). Under Job analysis and design, it is apparent that the HRM made immense mistakes in choosing the right candidates. Despite heavy training programs that the HRM has invested in during job analysis and design process, it is only in 2008 that the company was involved in an in-flight incident, which caused serious injuries to passengers and death of 129 passengers due to specious commands (Frances, 2009). In addition, it is apparent that training has not had a positive impact in the company since in 2006, the Qantas Airways pilots failed to monitor their position hence ended up to the wrong runway.

Moreover, in 2009, the company’s pilots failed to acknowledge and decided to overshoot their destinations by 150 miles (Frances, 2009). Frances (2009) alleges that captains in the company are not competent enough as they lacked knowledge on use of stick shaker and stall recovery thus causing serious accidents. It is hence clear that the HRM department leaves a lot to be desired as incidences have continued to intensify despite the company’s change management and job design and analysis strategy (Louise, 2011). With
such a successful airline company, it is apparent that its HRM is ineffectual and has only led to losses than success. The company asserts that it is committed fully to developing its people, yet they do not seem to know how they can forge a beneficial relationship with its staff. There has been a lot of change in the company including cutting of costs, developing training programs, outsourcing working rules and regulations, collaborating with the unions yet the situation seem to be moving from bad to worse. It is apparent that the HRM has been incompetent in hiring the right personnel and dealing with employees. Implications to Stakeholders

Various stakeholders include trade unions, government, shareholders, customers, community, business partners, employees, the media, and non-governmental organizations. They all have a major influence on the company’s performance and its strategy. The media coverage on wrong decisions in the Qantas have affected negatively on the company’s image. The problems discussed obviously imply that the HRM, shareholders, and business partners have been reluctant in solving the current crisis hence affecting the performance of the company. Because of the accidents reported, most consumers are not keen on using Qantas airline hence affecting profitability (BBC News, 2012). Additionally, the challenges in the company have also affected employees and consumers on grounds that they have lost confidence with the running of the company (Sandilands, 2011). The looming disagreement between Qantas and its pilots shows clearly that the HRM and business partners have failed in ensuring they contribute in effective management of the company. In addition, the Non-governmental organizations have failed in conflict resolution between the Qantas and its employees.

It is apparent that the HRM, business partners, and non-governmental organizations involved have failed in coming up with rational solutions to ensure such current disputes do not develop into a major crisis. Instead of the company’s CEO, Alan Joyce holding productive talks, he has been busy making provocative comments in numerous heated exchanges. For instance, he condemned union members on issues regarding wages arguing that their talks and protests were baseless (Bamber, 2011). The union leaders in return criticized N senior managers and accused them of tarnishing the brand image of the company while they were awarding themselves hefty salaries.

This hence implies that the community as well as Union members have lost confidence on the company’s stakeholders and this in return has led to bad publicity and reduced profitability. Consequently, the media has given a wide coverage on the company’s latest controversies meaning that it is benefiting financially because of the developing story. It is upsetting to see Qantas’ employees go on strike due to poor management issues in a company owned by various stakeholders. The shareholders, business partners, the HRM, CEO, and Nongovernmental Organizations have a major role to play in ensuring issues in the company are resolved and the company goes back to its initial profitable situation. Therefore, they need to sit down and come up with a rational plan towards improvement (Bamber, 2011). Action plan and Recommendations

With the increasing incidences, there is hence a need to come up with an action plan. First, all the stakeholders must meet to discuss on ways to solve the recent crisis. In the meeting, there will be change of communication and training model to more rational models that are employee oriented. The HRM will carry out the process and engage other stakeholders to give ideas on how salary and training issues ought to be handled. The change process will take place from 1st to 28th November in the company’s boardroom. To carry out the process, the employees will be interviewed in order to show some of the areas they would need change. The entire company’s workforce and managers will be given information concerning the changed plan. The recent problems involving HRM function has caused the company to suffer financially. The Qantas airline in their website asserts that, “Qantas is committed to providing meaningful jobs with competitive salaries and superior benefits” (Qantas, n.d). However, they have failed in fulfilling their promise as the strikes reported tell a different story. In addition, they allege that they “provide targeted, quality training to the Qantas group and assists in the development of skills” (Qantas, n.d). However, the accidents reported show a major gap in their training strategy.

The HRM should revisit their training and communication model and make a change on it. It is time the company moved out of a market approach change strategy that only focus on making profits and focus on employee oriented approach that consider the interests of workers. With an effective training model, there will be workshop and focus group sessions where employees air their grievances and come up with solutions to their problems (Frances, 2009). In addition, effective HRM communication should contribute successfully to teamwork, learning, innovation, safety, and productivity (Krizan et al, 2010). Moreover, the HRM should invest heavily on their pilot candidates and ensure that they get the right training. Coming up with a HR strategic oriented communication model is important in guaranteeing that employees are at par with requirements and needs of the company. This will help in discussing paramount issues affecting the running of the company. Once there is fit between communication and training model in relation to the role of the HRM, the next step should be to come up with a tactical plan on how the HR will be managing their roles to ensure there are no more scandals.

The HR needs to be involved fully in daily operations of the company to ensure alignment with needs of the employees. Moreover, the HRM should come up with performance management plan, which is imperative in following up on the performance of the staff members. The HRM should also be transparent in its strategy. This means that the company’s operational and strategic agenda should be communicated clearly to workers and must be accepted. This will ensure employees’ needs are met and there are no operational challenges. In addition, its mission should be shared with other shareholders to make sure they are on the right path to correcting the image of the company. Today’s HR models recognize on the fact that people do not leave their issues at home when they are going to work. For the company to be successful, it should focus on the needs of the workers whether personal or professional. This will motivate the workers to deliver quality work. In that case, there will be less accidents and remuneration problems in the company (Frances, 2009). In addition, in training sessions, the HR should focus on changing staff members’ attitude towards work and teach them on how to have a positive attitude. This will help in motivating workers and encouraging them to air their grievances through dialogue.

Human Resource Management in Business

‘Managing People’

Describe how your organisation obtains the co-operation of its employees through the contract of employment and employee involvement techniques.

Employee Co-operation

Contracts of employment

An employment contract is a written legal document that lays out binding terms and conditions of employment between an employee and an employer. The employers in ZARA need to makw sure that their employees are aware of what rights and responsibilities they have as workers in ZARA. This contract also includes: The salary rate that is going to be paid to the employees.

When they will be getting their salaries
What deductions are going to be made from their salaries like income tax.

Contractual entitlements

These are outlines within the contract so the employee and employer both know what is expected of each other when working in an organization. Things like pay might include the salary amount that has to be given by the employer to the employee and when it is supposed to be paid. Holiday pays might also be included in this depending on what kind of job it is. These contractual entitlements also include the number of hours that the employee has to work, this also includes over time. Type of employment of the employee will be comprised in the entitlement.

This can either be temporary or fixed employment. The employees working in ZARA also need to be aware of these contractual entitlements so that that they know what to expect from the employers and vice versa. Firms set some disciplinary rules in the place that they are going to be working in and need to be followed at all times. Employees need to make sure that they follow the rules the employers have set for them until they are working for that firm. Pension benefits are also given to the employee after they leave the organization. These pensions are paid to the employees month after month, the amount is discussed before hand and depending on the employee’s income history and as well as their age and how long they have served in the firm.

Employee and employer rights

Employers in Zara need to make sure that they are following the laws of all employee rights in their state. There are some employee rights that need to be followed. Some of these are: All employees need to make sure that they are getting paid the equal sum of money. Employees need to make sure that they aren’t doing any illegal work or something that would be a subject of discrimination. Employers in the firm need to make sure that the employees are not dismissed for an unfair reason. Employees also should be provided with maternity and paternity pay.

To receive redundancy pay is basically a sum of money which is given by an employer to an employee who has been made redundant. Payment is done based on the employee’s rate of pay and length of service. Employees should make sure that they receive an annual leave from their employers within a year’s time without consequences. Employees should be paid at least a minimum wage in the firm.

Type of employment contract:

Permanent: this is one of the most common types of employment contracts that businesses follow. This employment contract includes things like the amount of pay and terms and conditions which are accepted by both the employee and employer. This type of contract lasts one year and is renewed after each year on employment.

Temporary-companies use this contract because it saves them a lot of money and time. This type of contact lasts for only a short period of time.

Full time- This is when an employee is asked to work more than 35 hours a week, but it depends on the job description. For example: a sales man in ZARA works from day till night for a long period of time.

Part time- This is when an employee works for a little amount of hours instead of the whole day. For example: there are to employees doing the same job, one works in the night shift and the other in the day shift.

Casual- when a firm is in need of employees, they tend to use this kind of employment contract. This has an advantage and as well as a disadvantage for the employees as they might have less work to do compared to the other employees but they might not know when they are getting their next job. Zara uses full time employment contracts with their staff.

Disciplinary procedures
Disciplinary procedures are a set way for an employer to deal with disciplinary issues. They should include a disciplinary hearing where you’re given a chance to explain your side of the story.

Grievance procedures
This is a problem that could occur between the employee and employer, it is a complaint that they could have against each other for something that either of them has done wrong.

Union Membership
This is when a group of staff or workers is formed into a labor union. These unions play a big role in the firm as they can talk about issues between each other. An example is when there is a problem with the staffs pay amount of even the working conditions.

Codes of behavior
This is basically a set of conventional principles that are considered binding on the employer/employee. This is mainly about what is acceptable behavior in the firm.

Employee involvement techniques
Companies might use these techniques in order to get the staff more involved in decisions being made for the organization. This may also motivate the staff as they would feel they are also part of the firm and not just ordinary staff working there.

Membership of work groups
Firm’s employers might have groups of employees where all the workers work together. This can be advantageous as the workers might have more ideas in the group. There are different types of work groups in firms, For example:
Board groups and work councils

Quality Circles
Intra-organizational groups

Suggestion schemes
This helps the employee’s involvement in the organization. Employers make sure that he staff feels like they are part of the firm and that their ideas and suggestions matter. Staffs ideas sometimes make big changes in the organization and benefit them in many ways. To motivate the employees more, the employers give them rewards and prizes to keep them thinking about more and more ideas to improve the company, by doing this, it will motivate employees to work better and harder.

How Zara obtains Employee Corporation?

The rules, regulations and rights are followed by both the employees and employers in ZARA. ZARA has also explained the disciplinary procedures to the employees and as well as their employers. Employees are involved in the decision makings of ZARA and they are taken into consideration. Working together in work groups also takes place in ZARA. Finally, suggestion schemes are mainly monitored by the firm as this gives each and every employee a chance to share their ideas for ZARA. Devolved authority and responsibility

Getting the employees more involved in the firms decision making enables the employees to do better work and be motivated to do it with their maximum capabilities. But this can also be a disadvantage because: The employees would want extra pay if their ideas work and take place in the firm. Employees might get stressed out as they would have more work load on their heads.

Open communications
This is when there is two way communications in the firm between the employees and the employers.


This is when formal communication between the employers and employees happen. For example: the employers are discussing business matters by the use of presentations or letters or even emails.


This kind of communication happens in an informal way between the staff and the employers. An example of this is: when the staff are chatting with their employers when going home, does not necessarily have to be about business but can be just about other matters.

Top down

This happens when any information about the firm is given from the top (owners or employers) to the bottom (managers and staff). An example of this is: when an important change comes to the business and the information is carried from the owners to the managers.

Bottom up

This is the opposite of top down, and information is given from the staff and managers to the top owners of the firm.

This is communication which is done between the employees of the business but with those who are at the same level but different sections of the company.

Types of communications
Communication is basically the transferring of a message from the sender to the receiver, who understands the message. There are 3 ways of communication and these are:

Verbal communication can be face to face talks, telephone calls, video conferencing, meetings, etc. There are both advantages and disadvantages of verbal communication. One advantage is that information is given out quicker. There is also a high chance where the feedbacks is given immediately and not have to wait for it where as in when a meeting is happening the employers are not sure that all the employees are listening or has understood all the information. This could be of an disadvantage for both the employee and the employer.

Written communication is a type of communication method and may include memos, letters, reports, emails, etc. When communication is written, it can become of evidence in the future if needed.

For example: emails that are sent between the employee and employer can be kept for the future if any problem occur in the future. This type of communication can also be a disadvantage because the same message can be sent to a large number of people at once and all those people might not read the message immediately and therefore a feedback or reply may be given late.


Visual communication can be a form of Charts, firms, posters, etc. This kind of communication can be an advantage as this might be a catch to the eye. The disadvantage of this is there might be no feedback immediately and this kind of communication is not used in all firms because the employees might not understand diagrams and charts. These types of communications are used in ZARA. The employees in ZARA would use verbal communication as it is the easiest method and since they deal in customers, it would train them to become more confident when talking face to face and on the phone.

Organizational Culture (ethos, values, mission)

Organizational culture refers to the values, practices and behaviors that make up a unique and social environment within an organization. This can be expressed in a number of ways, including the ethos of the firm. An ethos is a code of conduct that a firm basically has. This might be set out in a published set of values or a mission statement so that employees, customers and other stakeholder are aware of what the firm believes in and feels is important.

National accreditation (Investors in People (IPP)

This type of structure is mostly used in businesses so that all the employees in the firm can be involved with the schemes. Investors in people are one of the well-known awards and also known as (IIP). This can be achieved when employees are able to invest on one of the biggest assets- people

. This has mainly 3 rules: 1. Plan, which basically means developing strategies to improve performance. 2. Do, which means taking action to improve the performance. 3. Review, which need to be evaluated and used to improve performance too.

Charter Mark and International Standards Organization (ISO)) This is a national award which has helped public service firms, For example: public schools and hospitals, to keep developing and improving their quality of service for customers and this can also be done to involve employees in decision making.

Strategies in Human Resource Management

External influences are constantly changing, therefore human resource managers must ensure that they are able to adapt and provide sustainable approaches in order to have a successful business. Businesses which adapt to the influences and changes productively and efficiently will achieve effective outcomes. One of these major influences is socially subjective. Social influences affect the needs, values and standards of employees and society itself. However, in many cases, these expectations are not met and create disruptions and disputes in workplaces. Factors which many result in the issues include; gender inequality, career flexibility and women in the workplace; along with many others. In order to resolve these persistent issues, human resource management must implement strategies to withdraw from these external influences. Strategies that HRM may consider include; Training and development programs, recruitment, rewards management and job design.

As the need for both parents to work has been a significant social change over the past few decades, there has been large increase of women in the workforce and the need for workplaces to be more flexible to enable their employees to manage both family and work responsibilities. Awareness of the career flexibility issues were raised in the article “Flexibility in the workplace key to retaining top talent”, stating that more flexibility is needed, for women especially, to be able to balance their lives between work and at home to allow any private or family and work commitments to be completed. Human resource management is crucial to set out a flexible work structure in the business that will allow women to manage their duties, both at home and at work. This strategy is found in the method of job design, under flexible work structure.

With this strategy, employees are offered with flexible options, for instance, casual or part-time work, job sharing, flexible working hours or telecommuting, which leads to women(and men) able to work more efficiently and stress free. With this strategy, businesses also are assisted as new employees are not required. An example of a business which has already taken this approach is Telstra. The company ensures that their employees are supported, have access to learning and development opportunities, are rewarded for what they do, and are well connected for the next stage of their career. Telstra makes sure they are achieving their objectives by providing: mentoring, health & wellbeing, rewards & benefits and gender pay equity.

Another issue in Human resource management is gender inequality. As stated in the article “Sexism in the city: more effort and less pay”, women are being treated unfairly as the wage gap between males and females are unacceptable. According to the Australian Bureau of Statistics, as of February 2012 there was a gender wage gap of 17.4 per cent across all sectors; with an average full-time weekly wage of $1,186.90 for women and $1,437.40 for men. Women working in the health care sector can expect to earn 32.6 per cent less than men with finance coming a close second 31.3 per cent. On the other end of the spectrum the retail sector offers the lowest percentage at 7.9, with public administration right behind it at 8 per cent. A reason behind this disproportionate salary issue includes women being more vulnerable than men and women not being assertive in the workplace, leading to reluctance to speak up, Spoken by a 56- year old employee.

It is important that human resource management takes this issue seriously and rapidly applies various strategies. Strategies that human resource management may use to address this issue effectively include; rewards management, as employees receive bonuses either monetary or non-monetary. Another strategy is job enrichment, a method of job design. Through this strategy, employees receive higher opportunities for promotion, retention rates, greater rewards and satisfaction. The final strategy HRM could undertake is Training and development. With assistance, females have the opportunity to understand all requirements, thus, providing the same service as the opposite gender, Illustrated in the article “Health and social workers suffer work pay gap” by workplace Gender Equality Agency; the company focuses more rather on the performance of the employee than the gender.

Women in the workplace have continued to be an issue which also comes under social influences as part of human resource management. As stated in the article “Slow progress on female bosses” by Lucy Battersby, “Australian companies are still failing to promote women into senior management positions, prompting calls for quotas and executive bonuses tied to increasing the number of females in top jobs. The latest census of women in leadership roles, to be released on Tuesday, found that while the number of female directors has increased there had been ”negligible change” in women at senior management level – 9.7 per cent compared to 8 per cent in 2010. But most of these are non-executive roles; less than 1 per cent of executive directors in Australia are female”. It is fundamental that human resource managers take more action towards this issue as more women in Australia have the right to take on higher roles.

HRM must implement strategies such as Training and development programs, associated with mentoring and coaching, so that women get the opportunity and ability to enhance and maximize their skills and knowledge for their future career opportunities. An example of a company which undertook a focus on women in the workforce is Westpac. Shown in the article “Westpac banks on female talent”, Westpac set a target in 2010 to increase the percentage of women in leadership roles from 33% to 40% by 2014.Westpac was able to achieve this by focusing on creating specific development programs for women and increasing their participation across all leadership programs and recognising the need to change the culture of the workforce. Westpac also reinforced flexible work practices, including the concept of group wide policies for job sharing, grandparental leave and flexibility for childcare and elder care.

There will always be disputes and complications in workplaces in relation to social influences such as women in the workplace, gender equality and career flexibility, however, human resource management provides many effective strategic approaches and opportunities that can be applied to assist and overcome these matters such as training and development programs, performance management, recruitment, job design methods and rewards management. With the use of these strategies, business will increase society’s values and standards and effectively increase the equality of women in the work force.

Resource worksheet

Student resources include a variety of helpful sites and tools that can be of assistance when completing assignments, connecting to other students, and searching for careers. Complete this table regarding student resources provided by the university. In the first column, identify where the resource can be found. In the second column, summarize each resource in at least one sentence. When you are finished with the matrix, answer the follow-up question in part B.

Part A: Resources Scavenger Hunt

Student resource
Where found
Summary of the resource
The syllabus is found up on the right hand corner of the 1-9 weeks colum. The syllabus is where I can find out what assignments are do, get instructions on how to do them and when they are due as well. Class Policies

Class policies are found on the classroom homepage and in the course overview box. The policies basically break s down all of the classroom rules, from late assignment to participation points and consiqences. University Library

This is found at the very top of the page with home,classroom, programs and more. The library is where I can find the center of writing excellence, writepiont, along with others and do any type of school research. University Academic Catalog

This is found at the very top of the page under program in the my program section. The Academic catalog is where I can find the most current programs, along with all school policies. University Learning Goals

Life Resource Center
This is found on the home page under quick links.
This basically where I can come for support, where I canget online or telephone counceling, life and career coaching as well as locate resources. Phoenix Career Services
Is found at the very top of the page next to “ phoenixconnect”, under Careers. This is where I can search the job market, do some career planning, build a resume and much more. Student Workshops
This found on the homepage under quick links and is also located under the Library tab in the useful links box in the student resource guide. Here is where I can go to improve on my basic skills that are important for success at university of phoenix. PhoenixConnect

This is found in the very top column on the page next to account, and careers. PhoenixConnect is a social network where I can share things about myself, learn things about others and connect with my peers. Technical Support phone number

Technical support is found at the very bottom of the page under, “Report a problem”, in the the “Contact us’ category. This is where I can go to get help with any type of problems that im having with my computer, or on the site. They walk you through it step by step.

Part B: Follow-Up Question

Based on the resources in the table, what are the attendance, posting, and participation requirements for the university?

Based on the resources in the tablethe attendance requirement is that you must post atleast one message on two separate days of the week to be in attendance for the week. For participation it varies depending on what program your in, and for me being in the associates program I would need to post two messgaes on 3 separate days of the week for me to get participation credit.

Human Resource Management

The Boston Chocolate and Truffles Company is a London based chocolate business company as it is continues to grow it is significant to understand the importance of human resource management (HRM) and the implementation of its strategies. This paper is an informative guide that will cover the definition of Strategic Human Resource Management (SHRM), importance of HR in organisation, also the analysis framework of the SHRM. Further, the guide also includes the understanding of the formulation and implementation of HR strategies that would analyse SHRM process, assessment of the roles in SHRM and lastly, the analysis of the development and implementation of HR strategies. A. Definition of strategic human resource management

The Chartered Institute of Personnel Development or CIPD (2013) identified that SHRM is an approach of the management within the organisation that sets strategic framework that concerns business goals and outcomes including the long-term people issues such as their quality, structure, values and commitment. Subsequently, Bratton (2013) described SHRM as a process involving human HR in the organisation policies and practices in linking to the organisational strategic objectives. Armstrong (2007) affirmed that SHRM is a concept of integration of HR and the strategies of the organisation is being achieved that includes how HR to get there, the coherence and supporting the strategies HR to be developed and implemented. According to Storey (2001), SHRM is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce using an array of cultural, structural and personnel techniques.

Another approach to ‘defining’ SHRM is to treat the task as the demarcation of an academic field of enquiry and/or a general field of practical activity. This is essentially what Boxall and Purcell (2003) do when they describe how their definition ‘allows for a wide variety of management styles’ (p.3). They go on to state that ‘Human resource management (alternatively employee relations or labour management) includes the firm’s work systems and its models of employment. It embraces both individual and collective aspects of people management. It is not restricted to any one style or ideology’ (p.23). In summary, SHRM is all about the management of human resource in terms of labour and personnel in an organisation by a specified approach in order to achieve the organisation’s goals in the future.

B. An explanation of the importance of human resource management in an organisation
1. Facilitates Organization’s Growth
Human resource is important because it facilitates the organisation’s growth by producing effective employees by means of recruitment in order to attain its goals. Recruitment is a major responsibility of the human resource team. The HR managers need to come up with plans and strategies for hiring the right kind of people. They design the criteria which is best suited for a specific job description. Their other tasks related to recruitment include formulating the obligations of an employee and the scope of tasks assigned to him or her which would be the basis of the employee’s contract. HR manages the employment process from screening resumes to scheduling interviews to processing new employees. Typically, they determine the most effective methods for recruiting applicants, including assessing which applicants are best suited for the organization’s needs. An organisation’s growth is dependent on the strength of its work force and recruitment is one of the key functions of human resource. 2. Provides guidance and mentoring

Human resource provides guidance and mentoring to employees, such as one-to-one coaching which gives the necessary support to them. When needed, HR managers also provide training to the employees according to the requirements of the organisation. Thus, the staff members get the opportunity to sharpen their existing skills or develop specialised skills which in turn, will help them to take up some new roles. Through this, it will enhance the knowledge and skills of employees Armstrong (2012). Mayhew (2013) stressed that as HR develops the organisation, it identifies the capabilities and strengths of employees that could lead to leadership roles within the business.

3. Handles People’s Problem
Another importance of HR is handling the employee’s problems such as absenteeism, handling negative behaviour and under-performance. Armstrong (2012) viewed this as an important part of the transactional role of HR. Human Resource could address the employees’ negative behaviour and under-performance by encouraging them to work according to their potential and by giving them suggestions that could help them improve their work. Performance appraisals help motivate employees since these enable them to form an outline of their goals with best possible efforts. HR may tackle the problem of absenteeism by initiating incentive plans and programs such as flex-time, wellness programs, and project completion perks, these are proven to increase morale and productivity of employees.

4. Maintains Harmonious Work Atmosphere
Another significant importance of HR is the role it plays in maintaining a harmonious work atmosphere, this is a vital aspect of HR because performance is largely driven by the work atmosphere or work culture that prevails at the workplace. A good working condition is one of the benefits that the employees can expect from an efficient human resource team. A safe, clean and healthy environment can bring out the best in an employee.

5. Ensures Compliance and Manages Labour Disputes
Another important aspect of human resource is its role in ensuring lawful employment for all the personnel. HR ensures that the organisation complies with the country’s employment laws. They complete paperwork necessary for documenting that the company’s employees are eligible to work. They also monitor compliance with applicable laws for organisations that receive government contracts, through maintaining applicant flow logs, written affirmative action plans and disparate impact analyses. HR also manages some aspects of labor conflicts, it is the human resource department which acts as a consultant and mediator to sort out those issues in an effective manner. Grievances are heard from the employee’s end and HR will come up with a solution that encourages amicable settlements and alternative dispute resolutions.

6. Sustains the Business
Lastly, HR is important because it sustains the business. HR deliverables such as reasonable pay and competitive benefits; workforce diversity; a happy, healthy, and productive workforce; useful training and career development; dispute resolutions; positive community relations, and good working conditions for employees are elements of sustainability — and all are crucial to the business’s ongoing success and stability.

C. An analysis of the framework of strategic human resource management
The SHRM framework provides HR strategies to be integrated with the organisations strategies. Strategy is the approach selected to achieve defined goals in the future. Strategic human resource management determines long term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out those goals.

It is worthy to note that critics have been questioning the effectiveness of the different frameworks and strategic models, the crucial issue is whether a particular framework/model really match the HR strategy and the organisational strategy that a business or enterprise needs for its continued development and success. It is imperative that we study and analyse some of the HR frameworks.

HRM Integration and Strategic Fit
Perhaps the most significant feature of HRM is the importance attached to strategic integration, which flows from top management’s vision and leadership, and which requires the full commitment of people to it.

David Guest (1991) believes that a key policy goal for HRM is strategic integration, by which he means the ability of the organization to integrate HRM issues into strategic plans, to ensure that the various aspects of HRM cohere and to provide for line managers to incorporate an HRM perspective into their decision making.

Karen Legge (1989) considers that one of the common themes of the typical definitions of HRM is that human resource policies should be integrated with strategic business planning. Keith Sisson (1990) suggests that a feature increasingly associated with HRM is a stress on the integration of HR policies both with one another and with business planning more generally.

Strategic fit has received a lot of criticism for many years because its strategy has been systematically and intentionally designed to the business needs when developing HR strategies to achieve congruence between the HR strategies and the organization’s business strategies within the context of its external and internal environment. As pointed out by (Budwar and Aryee, 2013) strategic fit ignores employee’s interest, it is inflexible and somewhat lacks adaptability.

This framework is more inclined to be more pro-management rather than taking into consideration the employee’s welfare when it is so important that there must be a balance between the employer-employee relationship.

Best Practice Model
This approach is based on the assumption that there is a set of best HRM practices that are universal in the sense that they are best in any situation, and that adopting them will lead to superior organizational performance. A number of lists of “best practices” have been produced, the best known was produced by Pfeffer (1998) namely: Employment security; Selective hiring; Self-managed teams; High compensation contingent on performance; Training to provide a skilled and motivated workforce; Reduction of status differentials; and Sharing information

Patterson et al (1997) associated “best practice” with sophisticated selection and recruitment processes; sophisticated induction programmes; sophisticated training; coherent appraisal systems; flexibility of workforce skills; job variety on shop floor; use of formal teams; frequent and comprehensive communication to workforce; use of quality improvement teams; harmonized terms and conditions; basic pay higher than competition; and use of incentive.

“Best Practice” as a framework had been commented by many authors as over stated in the sense that if it works in an organisation will not necessary work for other strategy due to culture, management style and working practices.

Eisenhardt and associates (2000) argued that whilst such routines and “elements of best practice” that constitute dynamic capability, work effectively during times of stability, they break down under more turbulent conditions and experiment replaces routine

Eugene Bardach (2011) claims that the work necessary to deem and practice the “best” is rarely done. Most of the time, one will find “good” practices or “smart” practices that offer insight into solutions that may or may not work for a given situation. Scott Ambler (2011) challenges the assumptions that there can be a recommended practice that is best in all cases. Instead, he offers an alternative view, “contextual practice,” in which the notion of what is “best” will vary with the context.

It appears that the “best practice” model may be beneficial to HRM but it also has certain flaws, before adopting this framework, it is necessary for HR managers is to identify what are most likely the organisation’s needs and the practice that can be used to address such needs. Best practice often fails to take into consideration the organisational context and specific needs of an organisation. As a strategy, best practice could more often than not become too rigid and inflexible to cater to employee’s needs, resulting in unrest.

Best Fit Model
The best fit model has three different models (life cycle, Competitive Strategies and strategic configuration). To give focus on the life cycle that demonstrate the development of the organisation in starting-up, growth, maturity, and decline Armstrong (2011) suggest that HRM needs to use its full potential, to realize its full potential, it must fit to the organisation stages of development, he added that as it continues to grow the more it becomes complicated.

The main thrust of the argument for the “best fit model” is that HR strategy becomes more efficient when it is linked or tailored to its surrounding context or environment of the business. Thus, strategic management and organizational effectiveness follows from achieving the best fit between an organization and its external environment.

Strategic HRM has borrowed the central concepts of environmental analysis, organization–environment fit, competitive advantage, strategy formulation and implementation, as well as physical, organizational, and human resources. This strategy involves stakeholders as it considers different aspects that could influence the effectiveness of the organization. This is what is meant of strategic configuration, wherein HRM policies and practices should fit or match the organization’s internal environment specifically its workforce, business strategies, management philosophies and interaction styles and external environment such as labor market conditions, unions, task technology, laws and social values.

Broadly speaking, I am more inclined to agree with Armstrong’s conclusion that among the SHRM frameworks, the best fit model is more realistic compared to other frameworks because it is more capable of addressing the different needs and aspects that influence organisational strategies. It offers highly customized and flexible solutions that are designed by balancing business and HR goals, and the company culture and processes. These solutions enable the organisation to gain a competitive advantage by meeting the company’s specific needs which leads to enhanced business results.

D. Analyse the strategic human resource process
Part I: Recognise Organisational Design
The first part of the human resource process is recognising the organisational design and this determines how the organisation should be structured and the different organisational functions. The organisational design should serve as a link between human resources management and the overall strategic plan of an organization. Specifically, Armstrong (2007) investigated that the management combines different integration of organisational operation whether there is precariousness in the external environment. This shows that HR managers should be involved in creating the organisational design which makes them vital in human resource planning. Reilly (2003) stated that it process in which an organization attempts to estimate the demand for labour and evaluate the size, nature and sources of supply which will be required to meet the demand. Hence, HR has the full understanding of the whole organisation’s behaviour, its specific needs and the best possible course of action for proper implementation of such strategies.

Moreover, the organisational structure determines the roles and responsibility of the people working within the organisation. It also specifies the powerline authority and communication. This structure can be identified as centralised or decentralised.

Part II: Development and Implementation
The second part is the development and implementation of HR strategies, it is the responsibility of the line managers to implement and enact the policies within organisation. They ensure that the policies are put into practice, hitting the organisation’s targets and goals as they are expected to be done. HR must initially identify the infrastructure and system requirements to support full implementation; it must develop the competency profiles; implement the competency profiles in a staged-way to demonstrate benefits; and lastly report the success stories as competency profiles are implemented. When needed, HR must develop, revise and update competency profiles to meet changing demands of the organisation and its personnel. It must also monitor and evaluate applications to ensure that they are meeting organizational needs, and adjust programs and plans to meet evolving needs. Proper training for development could serve as guide for better execution of HR strategies.

E. Assess the roles in strategic human resource management
Armstrong (2012) identifies the various strategic roles of HR professional. He viewed these roles as an essential part of business strategies as they are involved in the implementation and development that is structured with one another. HR professionals. Managers also shape the lives of HR professionals as they strive to become “strategic partners”. For HR professionals, the work of construing their modern social identity can be exciting as well as stressful (Glover & Butler, 2012). Looking ahead, we anticipate increased interest in understanding the dynamics of effective strategic partnerships between HR professionals and managers, for the promise of strategic HRM systems is more likely to be realized when this partnership thrives.

The interdependence that characterizes elements of an HRM system extends to the organizational players who enact the system through their daily work. HRM systems come alive in social interactions among organizational members, including those involved in formulating, communicating, and responding to elements of the HRM system. This set of players—HR professionals, line managers, and target employees—is sometimes referred to as the “HR Triad” (Jackson & Schuler, 2003). HR professionals have become more actively involved in the business planning process; formal policies have become more subject to interpretation by individual managers as they strive to respond to specific and rapidly changing situations.

One of the most important role is board of director they ensure that the organisation will meet its goals and mission that is operated competently to the best interest of its stakeholder’s council (2013), in general their responsibility includes strategic planning, finances, organisational operation and human resources therefore the board must have expertise in all aspects to provide hands on management of HR.

In assessing the roles in strategic human resource management, it is significant to note that the concepts of partnership and interdependence play in the success of the organisational operation for HR professionals. There must be high levels of interactions and coordination for HR professionals and the different departments of the organisation.

F. Analyse the development and implementation of human resource strategies. Who are involved, how are they involved, and extent of involvement
In the analysing the development and implementation of human resource strategies, we must first take into consideration the organization as a whole and decide who involved, how are they involved and the extent of their involvement. The persons involved are board and senior managers; line managers; and human resource. Primarily, the role of the board and senior managers is to approve and agree as to the strategic plan of the HR. There may take disagreement in some ways but they will need to come up with certain decisions regarding the company’s human resource strategy and its implementation. Communication plays an important role in this decision making process especially when the changes involve the people within the organization as Armstrong (2001) expounded that there should be an appropriate temperate and leadership when managing changes. Incongruous goals, opinions, and policies among upper-level executives can obstruct the cross-system cooperation required by the strategy. This impediment must be avoided at all times.

Line managers identify the staffing needs that are incorporated in the HR strategy, they help HR define the performance criteria for employees and assist in developing the selection tools. They are closely involved with HR in the implementation of HR strategy by allowing a dynamic partnership to thrive between them.

HR has the responsibility to implement and enact the policies within the organisation. They ensure that the policies are put into practice, hitting the organisation’s targets and goals as they are expected to be done. HR must establish itself as the driving force behind the strategy implementation effort. It must be emphasized that HR has the power to generate opportunities to bring employees together with managers and executives, leading from behind the scenes. Implementing the strategy means that HR must help employees to understand the HR strategy and comprehend the reason for the strategy. HR must also ascertain that employees commit to the strategy and take all possible opportunity to augment the employees’ commitment. Compliant to the Policies and Procedure

HRM practices can be substantial (Kanter 1985) because the successful implementation of HR strategies depends upon the behaviours of employees, and employee behaviours depend, in turn, upon the HRM practices a firm uses. Kanter (1984) claimed that employees within the company should at a certain extent be compliant to the policies and procedure of the organisation.

Adherence to company policies and procedure gives focus and direction to the organisation’s targets and goals as they are expected to be done leading to a more effective HR strategy.
Besides ensuring compliance, HR must also encourage a culture of pride in the firm’s own achievements; reductions of layers in the hierarchy; but also the improvement of lateral communication and giving increased information about company plans. Translate HR Strategies In To Policies

Armstrong (2012) cited Kanter’s phrase that HR strategies are action vehicles, they must be translated to policies that provide guidelines on decision-making and HR practices which enable the strategy to work.

As action vehicles, the strategies determine the long term goals and objectives of an organisation, and the adoption of courses of action wherein the objectives and other deliverables are clear, fixed and stated. Organisational Needs Must Be Identified

Armstrong (2011) believes that a significant stage in development and implementation of HR strategy is the identification of organisational needs to know the existing resources. Identifying organisational needs can be crucial for the company and it must be as precise as possible to deal with the various resources. An organisation must identify the priorities and importance of the organisation needs. There could be a need for training and development, career development, and organisation development. HR must examine these in view of their importance to the organisational goals, realities, and constraints. HR must determine if the identified needs are real, if they are worth addressing, and specify their importance and urgency in view of the organizational needs and requirements. HR Plans Must Be Up To Date

Lastly, HR strategies must be up to date a regular basis by evaluating the success of the plan and so the benchmark is being measured. This will determine the overall strategic plan if it became successful in achieving the organisation’s mission.

Keeping an up-date-to-date HR plan is beneficial to an organisation, as the plan is always relevant to changing times and the needs of the company. It is also an opportunity for the organisation to review, assess and make improvements or make necessary changes on the HR strategy. It’s a good practice to monitor the implementation of the HR strategy, it could be the guiding force in the organisation’s reviewing of employee performance, awarding promotions, approving leave, hiring and other related concerns.

Task 2
A Report
This report will cover and identify specific HR strategies for an organisation and these strategies will be assessed and applied to the Boston Chocolate and Truffles Company as a rapidly growing business.

HR strategies suggest what the organisation intends to do to HRM policies as they are aligned and incorporated to the business strategies and company’s goals, objectives and intended deliverables wherein strategies are action.

Armstrong (2012) stated that different organisations have also different strategies and that there is no such thing as a standard strategy. However, some strategies and their intentions are quite general others are not they set out two types of HR strategies: general and specific.

General HR strategy focuses on the whole organisational in a macro perspective point of view. It’s a strategy wherein its proposal will be put into practice which will later have a positive result to the organisation performance. This strategy is likely to be expressed as broad-brush statement of aims and purpose, which set the scene for more specific strategies. It provides a general framework for the plan’s goals and define the scope of what the department must undertake and implement to achieve the plan’s goals.

General or Overarching HR strategy may be applied to Boston Chocolate and Truffles Co to some extent because it provides the general framework for the company’s goal-specific plans and paves the way to more intricate details as regards to objectives, mission, goals and deliverables within the company. General HR strategy impacts everything the department undertakes and what it expects to achieve. Overarching HR strategy is geared towards the development of the entire company and encompasses its overall business activities .

There are three main approaches which are: High performance management, high commitment management and high involvement management.  High performance working involves the development of a number of interrelated processes that together make an impact on the performance of the company through its people in such areas as productivity, quality, levels of customer service, growth, and profits. This is achieved by ‘enhancing the skills and engaging the enthusiasm of employees’.

If one were to apply this particular approach to Boston Chocolate and Truffles Co, the focus will be the company’s performance based on the skills and enthusiasm of the employees. The benchmark would then be on productivity, quality, levels of customer service and profits. However, the disadvantage is that high performance approach pushes the employees to be productive. Areas of personal development, training and career enhancement for employees are often neglected. High commitment management approach emphasized the importance of enhancing mutual commitment. High commitment management has been described as ‘A form of management which is aimed at eliciting a commitment so that behaviour is primarily self regulated rather than controlled by sanctions and pressures external to the individual, and relations within the organization are based on high levels of trust.

Boston Chocolate and Truffles Co could also adopt high commitment management because this approach gives importance to the company’s employees by engaging them to commit to achieving the company’s goals. One disadvantage though is that the mechanism for “checks and balance” is self-regulated and based on high level of trust which could be detrimental.

High involvement management approach involves treating employees as partners in the enterprise whose interests are respected and who have a voice on matters that concern them. It is concerned with communication and involvement. The aim is to create a climate in which there is a continuing dialogue between managers and the members of their teams in order to define expectations and share information on the organization’s mission, values and objectives. This establishes mutual understanding of what is to be achieved and a framework for managing and developing people to ensure that it will be achieved.

The best approach for Boston Chocolate and Truffles Co is high involvement management, this approach focuses on communication and involvement. The continuing dialogue between managers and of their teams to define expectations and share information regarding the organization’s mission, values and objectives through high involvement management is vital if not crucial to the Boston Chocolate and Truffle Company’s success.

Next, is the specific HR strategies that covers areas such as: human capital management, knowledge management, corporate social responsibility, engagement, organisational development, resourcing, talent management, learning and developing, reward and employee relation.

Significantly, as the Boston Chocolate and Truffle Co strives to expand and continue to produce finest quality products it has to give focus particularly on the specific HR strategies that are applicable.

Since, one of the company’s objectives is to value employee, customers and other stakeholders, the employee relation strategies had been given emphasis since these strategies aid in defining Boston Chocolate and Truffle Co as an organisation. At Boston Chocolate and Truffle Co we give emphasis on employee relations strategies which include guidelines coaching managers and employees on how to handle employee relations issues to avoid grievance aggravation and its legal impacts, we advise them how to handle and document corrective action plans and disciplinary action. These also include investigating, obtaining statements, and making recommendations for further action.

Boston Chocolate and Truffle Co through its employee relation strategies identify the retention solutions to help improve turnover and employee morale, develop training solutions to help build a collaborative workforce, provide assessment solutions to help identify strengths and areas of opportunity for development of employees. These may be realized by creating programs that engage the man power such as community relations programs, recreational/social events, employee recognition programs, awareness programs for absenteeism, termination and retention.

Another strategy is corporate social responsibility this state’s about the business commitment on how to manage ethical and environmental responsibility therefore it is suggested that through the commitment of Boston Chocolate and Truffle Co to use fair-trade product mean continuity of helping people in the third world country communities therefore helping to protect mother nature in sustainable way.

Lastly, Boston Chocolate and Truffle Co is committed to enhancing its organisational development strategy, as the company grows and compete with globalisation, our company shall provide an ongoing, systematic program of implementing organizational change focused on understanding employee relations and high involvement management.

As a business entity, Boston Chocolate and Truffle Co understands the need for strategic HR functionality to be competitive and successful in the mainstream market specially when one considers the consumer demands for high quality products involving chocolates and truffles. HR is a vital part of the business process in Boston Chocolate and Truffle Co, it enables the people in key roles with HR’s leadership and mentoring to support both the staff and business as a whole. Boston Chocolate and Truffle Co believes in strategic HR leadership, with ideas for out of the box, aggressive yet compassionate thinking, as regards recruiting, retention and career development.

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Rouda, R. H. & Kusy, Jr., M.E., NEEDS ASSESSMENT The First Step,

Role of Human Resource Management

People constitute an organization’s most important & vital factor in its success or failure. Through & by man the M’s – money, machines, methods, markets & materials are acquired & utilized. The accomplishment of the goals of an organization depends upon the availability & utilization of all these ingredients the inter-action of which are people-caused.

The acquisition, utilization & development of financial, material, technological & market resources which may be exhaustible are dependent on human resources. If it’s available & capable, the other factors can be of great use to the organization. Man does or undoes what exists; man creates or bypasses opportunities & scenarios. People power is the most significant & potent factor of all the resources available to an organization. On the other hand, superabundance of financial & material resources may go to waste if handled by an incompetent, inefficient & dishonest staff.

According to Tomas Andres, “The place of organizational objectives is largely attributable to successful human resource management.” John Clements pointed out that “..not only is sophisticated management recognizing that the people element is a significant resource, if not the single most important resources employed in our business..” As pointed out by Peter Drucker, an imminent management writer & philosopher,”.. the only resource which can have an output greater than the sum of its part is the human resource”.

The challenge of management is not so much in its money, machines, methods, markets but its people. There is no exact replacement for human resources as expressed by Dr. de Guia.

The main concept that underlies the practice of human resources management is that human beings are the most important & critical resource & asset in the growth & development of an organization. Both the individual & the organization interact with one another, each having its set of goals, needs, perceptions & culture but with influencing each other to promote their ends.

The personal, professional & career development of people is a prime concern of the organization if its human resources are to become assets that will contribute to its growth & development; the work place, work design, reward/career system & continuing training affect workers productivity. Assumptions, theories & principles on motivation, leadership, fellowship, management style, group work, technology, change & other variables pitted against the realities of the work setting & its environment carry tremendous explanations for the way we look at & treat human beings & the organization.

The realization by executives of the importance of human resource paves the way for organized, systematized, coordinated & humane approaches instead of fragmented, loose, prejudiced & inhuman practice.

In contrast, HRM have to accomplish not only organization goals but also individual goals. It is a fact that an individual worker whose personal goals are realized is willing to cooperate in the accomplishment of organization goals. The harmony of both goals is directly proportional to the harmony between management & labor, thus, organization goals & employee needs are mutual & compatible. “One set need not be gained at the expense of the other.” The greater the harmony between individual goals & organization goals, the more likely conflict arises. Harmony results where both goals are aligned with each other.

The objective of harmonizing the individual goals with organization goals is hardly achievable in real situations. A complete balance between the two is indeed a notable act of performance especially in the Philippines although admittedly, this is what it should be. Aiming for alignment might entail bigger sacrifices which might not be practical in the long run. There is a need to study the attitudes of Filipino workers toward this aim of harmonizing goals.

A structure of roles must be formulated & maintained so that people can work toward achieving goals & objectives. In order to achieve coordination & harmonious relationships not only among members of the HRM but also among employees.

Considerations on uniting of command, levels of management, work assignments, delegations of responsibility & authority are basic to any kind of organization.

In spite of the short history of HRM in the Phils., phenomenal changes have taken place in the last one hundred years. Its next 100 years will surely bring new waves of greater magnitude considering the dynamic nature of the Filipinos.

The Practice of Human Resource Management of Airtel Bangladesh

1.0. Abstract:

Airtel Bangladesh Ltd. is a GSM-based cellular operator in Bangladesh. Airtel is the sixth mobile phone carrier to enter the Bangladesh market, and originally launched commercial operations under the brand name “Warid Telecom” on May 10, 2007. The purpose of making this report was to know about the changes that took place when Airtel took over Warid in 2010. There were lots of rumors of this change from 2008 and it was more like an open secret within the organization that airtel will merge with Warid. There were lots of tensins that people will lose their job, but airtel‟s business model is such that nobody lost their job, instead the IT officials got the chance to work in IBM, Ericsson and Siemens. So the change was good and employees adapted pretty nicely. However the HR practices of Warid were very firm so employee dissatisfaction were pretty high, but Airtel put a lot of emphasis on employee engagement, so turnover rate in Airtel is almost zero.

2.0. Executive Summary

Airtel is the sixth telecom operators in Bangladesh. In January 2010, Bharti Airtel Limited, Asia‟s leading integrated telecom services provider, acquired 70% stake in Warid Telecom, Bangladesh. Since then the journey of airtel in Bangladesh has started. But officially the activities with the brand “Airtel” started on 20th, December, 2011 in Bangladesh. As an emerging company Airtel is doing extremely well. Through their significant advances in Bangladesh, Airtel is moving ahead on the track to achieve their goals. The report has been prepared in align with HR activities at Airtel. Airtel values its human resources and its HR policies are aimed at targeting and retaining best talent in the industry, as the direct impact of the organizations improvement falls upon the employees.

The organization work to develop and nurture engagement, which requires a two-way relationship between employer and employee. The aim of this research is to find out the strategies and approaches that are taken by the Organization to build up Employee Engagement and the effectiveness of Employee Engagement in Airtel Bangladesh Ltd. This report provides the tactics and approaches of high perceived of organizational support taken by Employee. The report findings show that there are several factors that make employees satisfied and a positive outcome of Airtel. All engaged employees who intellectually and emotionally bound with the organization who feel passionate about its goals and its committed towards its values thus they go the extra mile beyond the basic job.

3.0. Materials and Methods:

3.1. Primary research: As there is a lack of reference material, most of the analysis is based on observations and interviews with management, trainers and trainees.

3.2. Secondary research: References from textbooks, websites and articles is used to assist the analysis.

4.0. Introduction:

Fastest growing telecommunication sector of Bangladesh had been incorporated with the sixth mobile phone carrier which currently known as “Airtel”. It is worth mentioning here that, this company was actually launched its commercial operations under the auspices of the brand “Warid Telceom” in 2007. Later on, Warid telecom sold a majority 70% stake in the company to India based company Bharti Airtel Limited for US$300 million. The entire management control was taken over by Bharti Airtel Ltd and was successful enough to revamp the whole company under their own Airtel brand from 2010.

After it had been approved by the Bangladesh Telecommunication Regulatory Commission on Jan 4, 2010, the parent company arranged for better management, control, operation for this fresh facet of them. This financial arrangement is being used for the expansion, better network, better coverage and capacity, innovative and new offers and services. Along with all these arrangements, new facets, decisions and funding, Airtel Bangladesh is undergoing a huge success and profitable business. Dhabi Group continues as a strategic partner retaining 30% shareholding and has its nominees on the Board of the Company.

People in any organization are those assets which are integral part for the growth and development of any organization. Therefore, constant training and development program along with some attractive compensation and benefits is no doubt a great facilitation for them. Following that, identifying the reasons behind the existence of unsatisfied workforce and managing them accordingly is the main challenge for HR. This report describes the acquisition, management, development and improvement of the workforce of Airtel Bangladesh Limited and how they are the most efficient and effective department to utilize and sustain their talented human resources.

5.0. Requirement Process
Working at airtel means a part of the brand that has ranked 7th in the list of most In Demand. Airtel is a brand that is future ready in terms of technology and most importantly, a brand that is ready to vest its future in the hands of a bunch of young and vibrant campus recruits that will shape the way the organization conducts business going forward. An airtel career thus offers an opportunity to race ahead:

5.1. Pre Placement Talks
Pre placement talks are conducted on campuses about the programs for young professionals. In order to apprise the student of the plethora of opportunities has to offer for young professionals. 5.2. Application From

Post the pre placement talk, interested candidates are invited to apply through an airtel application from which is circulated with the help of respective campus placement committees.

5.3. Short Listing

Airtel has increasingly seen a surge in the interested applicants over the years, thus short listing based on predefined criteria becomes an imperative step in the whole process. Short listing of candidates based on group discussion held on campus as part of the final selection process.

5.4. Group Discussion

With over 100 applications coming in from each of the campuses, short listing based on an application from alone becomes a herculean task for the campus manager, thus group discussion come into the picture and play a significant role in getting a final set of short list that‟s finally advance into the final round of interviewers.

5.5. Final Interview
Final interview for the short listed candidates takes place on their respective campus as a part of the final placement process. Interviews are conducted by a panel of at least 2 people comprising of a business HR Head and member of the airtel management board.

5.6. Final Offers
Post the final interviews on office , airtel communicates the final offers for the candidates address to placement committee which then it turn inform the candidates.

6.0. Training & Development of Airtel
Training is concerned with imparting particular skills for specific purposes.
We typically say training can involve the enhancement of skills, knowledge, attitudes or social behavior. It may mean changing what employees know, how they work, their attitudes toward their work, or their interactions with their co-workers or their supervisor.

Training and Development in Airtel is one of the major responsibilities of the Organizational Development team. The Organizational Development (OD) Unit encompasses four main areas of activity:

Talent and Leadership management
Career and succession planning
Reward and Recognition

6.1. Internal and External Training:

Airtel‟s goal is to reverse the existing training model of heavily outsourced training, and instead develop internal training as the centerpiece of its employee skills development strategy. 6.1.1. Internal training: At Airtel, internal training can be broadly categorized into: In-House Training – training conducted by employees. Internal training is those provided by vendors who are engaged by AIRTEL to provide relevant training on a need basis.

1) On-the-Job Training

2) Coaching.

6.1.2. External Training:

External Training will therefore be utilized strictly to import unavailable skills or expertise on a one-time, non-repetitive basis and will generally be reserved for managers and above. External Training as opposed to internal training is those provided by vendors who are engaged by AIRTEL to provide relevant training on a need basis. External training can be classified into:

Domestic – trainings taking place within Bangladesh
Foreign – trainings taking place outside Bangladesh
In-house Vendor Training – training conducted by vendor in AIRTEL premises

6.2. Skill Development

For most of the technical development, on-the-job training is considered. If any identified technical training cannot be conducted while on job, the training need is forwarded to the division head for his / her attention. The division head co-ordinates with the HR division to seek training from outside source. For managerial or people skills training, the division head requests the HR division for the specific training; the HR division identifies if the training can be provided by the resources inside, or else seeks training from other training organizations. Airtel offers different course sessions where the expert instructors provide knowledge on various management or technical subjects like team development, leadership skills, GSM technology, etc.

7.0. Categories of Employee Engagement

According to the Gallup the Consulting organization there are different types of people:- • Engaged: “Engaged” employees are builders. They want to know the desired expectations for their role so they can meet and exceed them. They’re naturally curious about their company and their place in it. They perform at consistently high levels. They want to use their talents and strengths at work every day. They work with passion and they drive innovation and move their organization forward. • Not Engaged: Not-engaged employees tend to concentrate on tasks rather than the goals and outcomes they are expected to accomplish. They want to be told what to do just so they can do it and say they have finished. They focus on accomplishing tasks vs. achieving an outcome. Employees who are not-engaged tend to feel their contributions are being overlooked, and their potential is not being tapped. They often feel this way because they don’t have productive relationships with their managers or with their coworkers.

• Actively Disengaged: The “actively disengaged” employees are the “cave dwellers.” They’re “Consistently against Virtually Everything.” They’re not just unhappy at work; they’re busy acting out their unhappiness .They sow seeds of negativity at every opportunity. Every day, actively disengaged workers undermine what their engaged coworkers accomplish. As workers increasingly rely on each other to generate products and services, the problems and tensions that are fostered by actively disengaged workers can cause great damage to an organization’s functioning.

8.0. Factors Leading to Employee

Engagement of Airtel Studies have shown that there are some critical factors which lead to Employee engagement. Some of them identified are-
1. Equal Opportunities and Fair Treatment
2. Performance appraisal
3. Pay and Benefits
4. Health and Safety
5. Job Satisfaction
6. Communication
7. Family Friendliness
8. Co-operation

9.0. Motivation Factors of Airtel

Actually in airtel Bangladesh limited theory Y is applicable because they provide a friendly working environment to their employee. Partnership and friendly management system is running here. Every employee has the right to raise his/ her voice in the company and share their idea with managerial body. HRM department treat their employee in a democratic manner. For this reasons not only top down management system is not used but also the horizontal management system is also used. In Airtel HRM body also focus on both goal oriented and value driven corporate culture and satisfactory career prospects of employee. They also motivate their employee through reward and recognition mechanism. This policy is given bellow-

9.1. Reward and Recognition

In a competitive business climate, more business owners are looking at improvements in quality while reducing costs. Employee reward and recognition programs are one method of motivating employees to change work habits and key behaviors to benefit a small business. To retain its employees and creating a good impression, ABL designs and updates its reward and recognition program time to time; which is however named as “Airtel KUDOS Reward & Recognition Program”. The aim of this program is to designing innovating and motivating ways to engage and attract people towards the organization.

Identification of company or group goals that the reward program will support is important
Identification of the desired employee performance or behaviors that will reinforce the visions of ABL.
Determination of key measurements of the performance or behavior, based on the individual or group‟s previous achievements
Determination of appropriate rewards
Communication of program to employees

In order to reap benefits such as increased productivity, the HR team of Airtel designs the reward program in such a way that the company or group‟s goal must be identified and the behaviors or performance will contribute to this. The reward program can be financial and non-financial as well. HR team of Airtel Bangladesh focuses on the non-financial rewards than financial because it is long lasting and more awaited remuneration to the employees.

To achieve its vision by 2015 of being the most loved brand and enriching the lives of millions; ABL continuously works to achieve its 3 values- alive, inclusive and respectful.

10.0. Employee Engagement Practices in Airtel

The most important drivers of growth and success for any organization are its people. The organization work to develop and nurture engagement. Airtel is considered to be the best in HR practices. Different practices that is detained by Airtel Bangladesh ltd are  The HR department sets up cross-functional teams in times of product or service launches. “Such teams typically constitute high performers from each department, who collectively make it happen. These approaches help to communicate every department with each other.

To further HR interface, every member of the HR department has been assigned two departments to discuss and sort out all HR, personnel and administration issues. `The idea is to provide employees with a single window to the department.

The HR Intranet provides information on HR policies, organizational structure, training calendar and the house journal.

With these initiatives, Airtel has won a special place in the Bharti group. The quality of service and customer care is a reflection of the quality of people and our belief in constant improvement and up gradation.

Employee friendly HR policies have been put in place, which amply reflect the organizational concern for its people. Some typical examples of these policies and practices include

1.0. Figure: HR Policies amply in The Organization
These policies and practices are applied across the organizational levels without any discrimination.
Airtel offers a flexible compensation structure to its employees wherein the employees have the flexibility to structure their fixed component of their compensation according to their requirements within the ambit of legislation.

ECF- Employee Communication Form is a sought of meeting or conference held once in a year or once in two year by the top management. In this meeting all the employees are supposed to gather in the conference hall. There follows open communication between employees and the top management, where employees are free to communicate or can discuss various issues coming up. Through these meetings employees get chance to get themselves fully engaged with the company and the issues or the new objectives of the company.

In airtel there is a reward and recognition system which encourages the employees a lot. Every employee recognizes the best work done by their team members, seniors or juniors.

11.0. SWOT analysis on Airtel HR practices:
11.1. Strength:

Friendly working environment.
Focus on win-win-win policy by practicing HR in ethical manner. Democratic leadership style.
Focus on employee satisfactory career prospects.
Value driven corporate culture.

11.2. Weakness:
Lower compensation programme.
Inefficient in proper utilization of its ( Airtel) HR capacities.

Work pressure on HR is so much not fully motivated.
Poor international roaming facility for HR personnel.
Shortage of human resource in the Help-line than the competitor.

Insufficient ongoing training.
Criteria used to evaluate performance are not clear.
Lack of orientation programs for new employee.

11.3. Opportunity:
Focus on innovative idea through every level of employee.
Decision making process is quite decentralized.
Effective time management to approve a new idea.

11.4. Threat:
Higher employee turnover rate.
Retention of talents.

12.0. Human Resource Analysis
The study and the results of analyses used to examine the research questions. To examine employee engagement, survey has been done. 50 employees completed and submitted the survey, an overall response rate of 100 percent.

12.1. Gender
Of the respondents to this survey, 36 percent (n = 18) were female and 64 percent (n = 32) were male.

2.1. Figure: Human Analysis (Gender)
Female (36)
Male (64)

12.2. Age
The age from the sample shows that the number of employees aged 20-26 and 26-30 years are lot more that the other aged employees. This can probably be a sign that as young people are more encouraged and enjoying the work in Airtel and as a youth brand Airtel is hiring more energetic young people.

2.2. Figure: Human Analysis (Age)

12.3. Experience
Number of years of service in the organization varied among respondents with 6 percent (n = 3) having been employed zero to one year; 22 percent (n=11) employed 2 years; 24 percent (n = 12) employed 3 years; 48 percent (n =24) employed for over 3 years with the organization.

2.3. Figure: Human Analysis (Experience)

Age Above 30 years
26-30 years
20-25 years
Jan-00 Jan-00 Jan-00 Jan-00 Jan-00 Jan-00

13.0. Performance Appraisal & Evaluation System

A good performance evaluation system verifying that there is a performance deficiency and determining in every organization. Like other organization Airtel has to be corrected through training or through some other means (such as transferring the employee).So effective performance appraisal will motivate the employee which is a big task of HR professional.

14.0. Compensation Management

Airtel offers a flexible compensation structure to its employees wherein the employees have the flexibility to structure their fixed component of their compensation according to their requirements within the ambit of legislation. Performance Linked Incentive (PLI) schemes are linked with the variable component of the compensation structure. This component is linked to both the individual performance against his/her set KRAs (Key Result Areas) and the overall performance of the business entity that an employee belongs to. Airtel leaders and managers understand the need to bring clarity to employees about how their roles, goals and actions align the realization of organizational vision and goals. The mechanisms like Performance Management System (PMS) and Talent Management Process (TMP) are the key sources of identifying the training needs of the employees and check to competency levels for promotion.

15.0. Findings:
1) There have a lower investment on leadership inactive to maintain high staff engagement levels.
2) Some shortage of getting regular feedback to employee and also the managers‟ activities maintenance.
3) Proper Training lacking on improving skills of the entry level as well as mid-level employees. 4) There is a bit high work pressure of employee and improper distribution of work diversity. 5) The most weakness point of airtel ltd is to failing the valid customer verifying data.

16.0. Recommendation

Though Airtel has taken effective approaches to develop employee engagement, they should continue the practice and develop the management system, because engagement level varies and needs on continues observation. Some recommendations are given below:- 1. An important implication from this finding is that the organization should continue to invest in its leadership initiative and other related programs in an effort to maintain high staff engagement levels. Directing resources toward this objective would appear to be an effective investment for this organization.

2. Implementing new strategies, giving regular feedback to the employees and also the manager is necessary to maintain employee engagement.
3. More training can be introduced to improve skills of the employees. 4. Work pressure of the employees should be reduced by hiring more people and distributing work among them.
5. Airtel depends a lot on for getting CVs for Territory Manager, Key Account Manager, Manager Compliance; most of the time good CVs are not found there so then HR takes people from reference which is time consuming, as a result HR cannot meet the demand of different departments in supplying employees as they require.

6. Airtel should verify the original educational documents of the personnel to get talented and qualified employees.

17.0. Conclusion

Recent research and literature demonstrate an increased interest in the topic of human resource activates, and studies show that human resource of origination is directly related to positive organizational and business outcomes. This study was designed as an exploratory measure of the HR of Airtel and examined the overall level of HR of Airtel Bangladesh ltd. HR theory would suggest that in an agency such as the study site, where the workers are significantly engaged, production outcomes would be high and customer service would be exceptional. A review of the annual report from the study agency indicated that the study agency met or exceeded the standards and indicators for the fiscal year in which the study was conducted. Therefore, a major finding of this study was that the high staff engagement levels may have some correlation with the organizations‟ high production outcomes and quality customer service reports.

18.0. References
1) AIRTEL BANGLADESH (2011) Airtel Bangladesh Limited. Available from: [Accessed 27/12/2012]
2) AIRTEL BANGLA (2013) Airtel_Bangla [online]. Available from: [Accessed 01/03/2013] 3) TELECOMMUNICATIONS IN BANGLADESH (2013). Available from: [Accessed 20/05/2013] 4) DESSLER, G. & VARKKEY, B. ; (2011)
Performance Management and Appraisal. Human Resource Management; 11th 5) ROBBINS, S.P. & JUDGE, T.A. ; (2010)
Organizational Behavior; 13Edition. India; Pearson Prentice 6) 6. MORGAN, C.A.; White Paper; Understanding and developing your asset (people); B2B International Market Research with Intelligence. Available from: 7) Archie Thomas, CMA & Ann MacDi Anmid; Encouraging Employee Engagement; CMA Management; Jun/Jul 2004.

8) ROBERTSON, I; (2012) The Importance Of Employee Engagement In Difficult Times; Guardian Professional; Available from: 9) Ellehuus, C. & Hudson, P.; Performance and Retention Through Employee Engagement; Corporate leadership council 2004; Employee Engagement Survey. 10) Wikipedia n.d., Work Life Balance. Retrieved May 15 2012, from

Human Resource Information Systems (HRIS)

Human Resource Information Systems (HRIS): An Unrealised Potential* David Grant** Work and Organisational Studies The Institute Building (H03) The University of Sydney NSW 2006 Australia Email [email protected] Tel: +61 (0)2 9351 7871 Fax: +61 (0)2 9351 5283

Kristine Dery
Work and Organisational Studies The Institute Building (H03) The University of Sydney NSW 2006 Australia Email [email protected] Tel: +61 (0)2 9036 6410

Richard Hall
Work and Organisational Studies The Institute Building (H03) The University of Sydney NSW 2006 Australia Email [email protected] Tel: +61 (0)2 9351 5621

Nick Wailes
Work and Organisational Studies The Institute Building (H03) The University of Sydney NSW 2006 Australia Email [email protected] Tel: +61 (0)2 9351 7870

Sharna Wiblen
Work and Organisational Studies The Institute Building (H03) The University of Sydney NSW 2006 Australia Email [email protected] Tel: +61 (0)2 9036 7603

Abstract: Over the last decade there has been a considerable increase in the number of organisations gathering, storing and analysing information regarding their human resources through the use of Human Resource Information Systems (HRIS) software or other types of software which include HRIS functionality (Ball, 2001; Barron, Chhabra, Hanscome, & Henson, 2004; Hussain, Wallace, & Cornelius, 2007; Ngai & Wat, 2006). The growing adoption of HRIS by organisations combined with the increasing sophistication of this software, presents the Human Resource function with the opportunity to enhance its contribution to organisation strategy. In this study we examine the ways in which HRIS might be used in order to achieve this. Our analysis
of four Australian case study organisations finds that the claimed potential of HRIS to contribute to business strategy is contingent on its overcoming one or more of three key challenges. * This research is funded by an Australian Research Council Linkage Grant (LPLP0882247) in collaboration with the Australian Senior Human Resources Roundtable (ASHRR). ** Corresponding Author.

Human Resource Information Systems (HRIS): An Unrealised Potential The last decade has seen a significant increase in the number of organisations gathering, storing and analysing human resources data using Human Resource Information Systems (HRIS) (Ball, 2001; Barron et al., 2004; Hussain et al., 2007; Ngai et al., 2006). In this paper we show that the study of the impact of HRIS is of direct significance to the ongoing debate about the extent to which Human Resources (HR) can play a strategic role in the organisation (Becker, Huselid, & Ulrich, 2001; Hewitt Associates, 2007; Huselid, 1995; Lawler & Mohrman, 2003; Sheehan, Holland, & De Cieri, 2006). Specifically, we examine the argument that through its capacity to deliver accurate and timely metrics, HRIS has the potential to assist the HR function in developing business strategy and thus enhancing organisation performance (Barney & Wright, 1998; Broderick & Boudreau, 1992; Gueutal, 2003; Lawler, Levenson, & Boudreau, 2004; Lengnick-Hall & Moritz, 2003). Our initial findings from the first phase of interviews with four organisations based in Australia, suggest that the potential of HRIS to deliver the strategic competencies promised remains largely unrealised and that instead HRIS is used to increase administrative efficiency and/or obtain compliance support. Specifically, we find that the implementation and use of HRIS is being hindered by three main challenges: maintaining organisational attention, addressing the complexities associated with people management, and managing user acceptance of the change associated with the system. The paper comprises four main sections. In the first section we review the literature on HRIS paying particular attention to previous studies which recognise challenges associated with the selection and implementation of HRIS as well as the importance of social constructionism as a theoretical lens to analyse this topic. In the second section we discuss our case study methodology and profile our four case study organisations. In the third section we discuss
our results by identifying and discussing the three challenges which we identify as important to the study of HRIS and HR. The final section summarises the findings and provides recommendations for management.

Literature Review and Theory The current generation of HRIS automate and devolve routine administrative and compliance functions traditionally performed by corporate HR departments and can facilitate the outsourcing of HR (Barron et al., 2004). In doing so, HRIS not only make it possible for organisations to significantly reduce the costs associated with HR delivery, but also to reassess the need for retaining internal HR capabilities. However, HRIS also provide HR professionals with opportunities to enhance their contribution to the strategic direction of the firm. First, by automating and devolving many routine HR tasks to line management, HRIS provide HR professionals with the time needed to direct their attention towards more business critical and strategic level tasks, such as leadership development and talent management (Lawler et al., 2003). Second HRIS provides an opportunity for HR to play a more strategic role, through their ability to generate real time reports on HR issues, including workforce planning and skills profiles, which can be used to support strategic decision making (Hendrickson, 2003; Lawler et al., 2004; Lengnick-Hall et al., 2003). The existing literature on HRIS suggests that they have different impacts on HR across organisations, but provides little explanation for this variation. Early surveys suggested that HRIS were used predominantly to automate routine tasks and “to replace filing cabinets” (Martinsons, 1994). Ball (2001) reported similar results for small and medium sized enterprises in the UK and concluded that HR had missed the strategic opportunity provided by HRIS. More recent research shows greater use of HRIS in support of strategic decision making by HR (Hussain et al., 2007). However, the extent to which HRIS is used in a strategic fashion differs across organisations, with the vast majority of organisations continuing to use HRIS simply to replace manual processing and to reduce costs (Bee & Bee, 2002; Brown, 2002). Recent debates about technology and organisation have highlighted the importance of social context and sought to develop frameworks which acknowledge both the material and social character of technologies including HRIS (Dery, Hall, & Wailes, 2006). Accordingly,
theories which can be considered as ‘social constructivist’ can play an important role in the study of

technology as they explicitly recognise that technologies, such as HRIS, can not be evaluated and analysed without having an explicit understanding of the context of individuals and groups which consequently comprehend, interpret, use and engage with the technology (Grint & Woolgar, 1997; Orlikowski & Barley, 2001; Williams & Edge, 1996). Social constructionist views offer insights into the implementation and use of HRIS in a number of ways. In this study we draw on the social construction of technology and technologiesin-practice literature. The social construction of technology (SCOT) approach challenges the idea that technologies and technological artefacts have a pre-given and fixed meaning and in its place argues that the process, design and selection of technologies are open and can be subjected to contestation (Pinch & Bijker, 1984). Thus a technology is seen to be characterised by ‘interpretative flexibility’ and various ‘relevant social groups’ who articulate and promote particular interpretations of it. This meaning, over time tends to become accepted and the interpretation of the technology stabilised (Dery et al., 2006). In similar tradition to SCOT approaches, the technologies-in-practice approach endeavours to recognise the inability to separate the technology from surrounding social relations. Orlikowski (2000) conceives of technologies-in-practice as the structure that is enacted by users of a technology as they use the technology in recurrent ways. The important implications of this idea for the purposes of this research is the realisation that it is only when individuals use the HRIS that the associated social practices will frame and determine the value that they attribute to it. Hence the process of using a technology involves users interacting with ‘facilities’ (such as the properties of the technology artefact), ‘norms’ (such as the protocols of using the technology), and ‘interpretative schemes’ (such as the skills, knowledge and the assumptions about the technology as might be positioned by the user) (Dery et al., 2006). Both of these approaches are important and useful as they recognise that when considering relationships and experiences with technology, it is essential that social factors and previous experiences be considered. Therefore the opinions of respondents can only be understood in

context of individuals and groups comprehending, interpreting, using and engaging with the technologies (Dery et al., 2006). The study discussed in this paper was initiated after a preliminary survey of the use of HRIS in 138 Australian Listed companies (Grant, Dery, Hall, & Wailes, 2007). The survey found that although 50% (n=69) of the participant organisations were found to have an HRIS, the extent to which they were being used in a strategic manner varied and for the most part the claimed potential of the information systems was not being realised. For example, while 91% of organisations with an HRIS used the systems in order to process and record leave, only 34% used them in relation to staff planning. In order to gain further insights into these results, the present study explores the impact of HRIS on the HR function in detail over a three year period at four large Australian organisations using a multiple case study approach (Yin, 2003). Specifically, the project examines whether HRIS enhances the strategic contribution of HR by exploring the ways in which HR professionals might make more effective use of these systems. The project is informed by four research questions: 1. Is there evidence to suggest that HR is using opportunities provided by the HRIS to enhance its contribution to firm strategic direction? 2. Do HRIS’s which are a module of enterprise resource planning (ERP) systems have different impacts on the HR function than standalone HRIS’s? 3. How do different organisational characteristics affect the ability of HR to use the opportunities provided by HRIS to act as strategic partners? 4. What strategies can HR professionals adopt to ensure that the use of HRIS in their organisations supports the strategic contribution of HR? Methodology and Background The four case study organisations each volunteered to participate in this study which is funded by an Australian Research Council (ARC) Linkage grant. Each organisation is a member of the Australian Senior Human Resources Round-table (ASHRR) the main industry partner in the project. Each of the case studies has either a standalone HRIS (e.g. CHRIS) or an enterprise

resource planning (ERP) system module of HRIS (e.g. SAP) in place and all are in the process of either replacing or upgrading their existing system.
Each company views the HRIS replacement or upgrade as a commitment to further extending the strategic contribution of the system. This provides us with a unique opportunity to gather rich empirical data related to our key research questions. The nature of the research questions required that the plans and activities of each case study be studied through the gathering of an array of data (table 1). This enabled the researchers to develop greater levels of understanding about the management of HRIS in each organisation and across organisations (Yin, 2003). Table 1: Data gathering across the case studies Case Study TechOrg # Interviews 4 Additional Data Organisational information available in the public domain, press articles Annual reports, Previous organisational presentations. OHS staff brochures and posters, Annual reports and promotional material Press clippings, web sites, office observations Observation of System in Use No observation of the system due to interviewee time constraints





Observation of HRIS in use within HR area; observation of OHS system in use Observation of HRIS in use with differing users. No observation of the system in use due to the sensitivity of data



Over a 16 month period initiated early 2008, interview data was combined with other empirical evidence gathered through access to secondary sources and during site visits. The interview data comprised semi-structured interviews conducted with executives across a range of roles in the organisations
including: HR, IT, and Operations. Each interview was between one to two hours, and was conducted by two investigators, recorded and transcribed. Interviewees were selected on the basis of their involvement in the decision to implement or upgrade the HRIS at their organisation, or their high levels of use of the HRIS. In addition, and where possible, the researchers observed the HRIS at each organisation in use, so as to understand how the system was searched, reports were run, and the availability of data.

The Case Studies Each of the four case studies discussed in this paper have been allocated an assumed name. Details concerning size of the organization, its current HRIS system and whether this was being renewed or upgraded and the reasons for the renewal or upgrade are summarized in table 2. TechOrg is a private organisation involved in the Information, Communications and Technology industry. Over the last three years, TechOrg has undertaken to upgrade its SAP HRIS module as part of its overall ERP upgrade and system development. BuildOrg is a large construction company which is also privately owned. Their workforce comprises both permanent and contracted employees. The

organisation was previously operating a HRIS that was considered as outdated and sought to upgrade their existing system to primarily manage past and current employees. ManuOrg manufactures building products and metals and has a food processing division. The current HRIS was implemented 21 years ago with an increasingly modified CHRIS system that is currently in the process of being replaced with SAP. Lastly, GovtOrg is a public organisation responsible for security management. The organisation first implemented a proprietary HRIS in 1998 and had undertaken an upgrade in 2000 before initiating the current move to SAP in 2008. Table 2: Summary of Case Studies Case # Current system employees TechOrg 350 SAP


Up to 1400 (varies)

Tailored Preceda 9.1 by CHRIS, Mercury for payroll. CHRIS



Upgrading / replacing Replace with lighter version of SAP with more local functionality Upgrade to CHRIS Preceda 11 Mercury to remain SAP

Reason(s) for change Change in ownership of organisation and requirement to severe links with previous owner and associated legacy systems. Increased requirement to meet compliance standards and to minimize risk of litigation.



Proprietary system


HR director retiring with knowledge of the proprietary system. Need for a system consistent with the rest of the IT platform. Desire for IT rather than HR to manage HRIS. Moving to SAP so as to integrate with the organisation’s SAP ERP system and other govt. departments

Results The initial research findings support the results of studies by those such as Towers Perrin (2008) and Bussler and Davis (2001). Despite all four case studies stating that the implementation or upgrade of their HRIS has been undertaken with the aim of utilising functions that are of a strategic nature thereby enhancing the strategic contribution of the HR function (Beatty, 2001; LengnickHall et al., 2003; Ulrich, 1997; Walker, 2001), the data suggests that progress towards making these changes is being hindered by a range of technological, managerial and organisational challenges. While some of these challenges could be attributed to the management of new technologies in general, our findings demonstrate that
several are in fact specific to HR and reflect the complex nature of the management of people, the role of HR in the organisation, the allocation of resources to the HRIS, and technological issues related to the management of HR practice. It was never the intention of the project to select organisations that were undergoing major organisational change, rather we sought to gain access to organisations that were endeavouring to implement or upgrade their HRIS. The associated organisational changes which are discussed in this paper added to the complexity of the stories and experiences that these organisations have been able to share. The data across all the cases indicated the following three challenges for the organisations and each of these is discussed in the following section using cross-case analysis (Yin, 2003; Youndt, Snell, Dean, & Lepak, 1996). The challenges were: • An inconsistency in the importance attributed to HRIS resulting in difficulties in sustaining management commitment to the project and in obtaining the resources necessary to fully develop the new or upgraded HRIS. • A tendency to underestimate the complexity of the HRIS and its impact on the behaviour and processes of the organisation. • The barriers to user acceptance of the HRIS and the consequent underestimation of the importance of change management.

Inconsistent Salience Attributed to the Organisation’s HRIS Project The case study organisations have variously experienced significant changes in structure, size, ownership and government (summarised table 3). This has resulted in a shift of senior management attention away from development of the HRIS to more immediately pressing organisational issues. One consequence of this is the allocation of insufficient resources to the HRIS and, in some cases, the increased delegation of responsibilities to vendors and consultants. Table 3: Changes in Case Studies Case Study Organisational Change Process TechOrg Acquired by local company and required to adopt more localised processes BuildOrg Large growth in infrastructure projects

Implication for the Business Reassessment and realignment of business processes Requirement to manage large contracted workforce. Significant increase in compliance requirements Need to align systems across range of standalone businesses

Implication for the HRIS Enforced selection of more localised platform which aims to address more direct organisational needs Upgrade required for existing Preceda system



Knowledge Management and establishment of sustainability practices Change of government resulting in increased demands and complexity of role. Desire for efficiencies in work practices.

Migration to SAP and restructuring of the management of the HRIS away from HR and under IT Increased requirements Move to SAP platform to for reporting and comply with other standardised IT government departments

TechOrg, a company based in the ICT sector, is a company that has constantly faced issues in maintaining the momentum and commitment of expanding their existing SAP system. Such challenges regarding salience have continued for the past three years as financial and engineering management systems upgrades have engulfed continual attempts to progress and complete the desired upgrade. The project, run and owned by the Human Resource department, is internally recognised as having low organisational priority: However the core will always be financial management systems and the things that allow our engineers and our program managers to run the calls, take the customer complaints, send them to the technician. We will certainly come a distant third to that… So if we come third

then we will do something, but we don’t know whether we’re coming third yet do we? (Director of People and Culture, TechOrg). The desire for the HRIS upgrade was later impeded in 2008 because the organisation was acquired by a domestic company and consequently all existing business processes needed to be changed to ensure separation from the previous owners. As a result “…the project (now) has been stopped pretty much …” (Director of People and
Culture, TechOrg). The experiences of this organisation demonstrates that despite the best of intentions of HR, such projects as this, which are deemed as HR centric, can lose momentum as a result of factors beyond its control. BuildOrg started to investigate HRIS more than 10 years ago. The introduction of a new senior manager with existing ERP and HRIS knowledge combined with the perceived need to replace an outdated system instigated the desire to upgrade their original Mercury system, based on Lotus Notes. During these initial stages, several HRIS were considered, however, the project was abandoned when the costs associated with any new HRIS were deemed prohibitive. The project and operational requirements of the organisation were re-examined in 2005 and the organisation again considered implementing a new payroll system, but IT did not find any of the systems that they viewed appropriate for the organisational needs. The lack of executive support also played a significant role during this time. “So we sort of parked it at that stage. Because the other thing was, I think in an organisational sense with a new CEO, that wasn’t really a priority for us.” (General Manager HR, Safety and Corporate Relations). Finally in 2007 the latest attempt gained traction with senior management and the approval was given for an upgrade. Nevertheless the current progress on this project for BuildOrg has been met with caution. Because there’s been an awful lot of water under the bridge to get to this point. We’ve had – this is the third go at actually having a crack at getting Preceda as the HR system and getting the organisational structure in. Now there was one completely failed attempt. One almost got there but then failed and now this is the (final) go at it. (Applications Services Manager, IT).

ManuOrg introduced its first HRIS in the 1970’s. Since then the organisation has undertaken a number of upgrades driven largely by organisational change which has required an expansion of the existing systems. Progressive changes and add-ons to the legacy system, has created for ManuOrg a HRIS that is complex and inconsistent. Although the HRIS has been accorded salience and sufficient resources over the past 30 years, the HR manager acknowledged that the rationale for change and selection of the replacement HRIS has tended to emphasise financial, rather than strategic human resource issues. The retirement of the HR Director, who has been central to developing the
current HRIS, together with the need to standardise IT systems across all the operating companies has resulted in a call for migration to SAP and the re-positioning of HRIS management under the IT department. GovtOrg has been using PeopleSoft as the vendor for their HRIS since 1998, with an upgrade which introduced web based self service in 2000. With the aims of establishing a ‘single source of truth’, creating uniformity, gaining efficiencies and enabling data transfer and integration with other government organisations, GovtOrg has decided to replace PeopleSoft with SAP. Despite resounding confidence in the HRIS project, GovtOrg still believes that the project can be delayed by other organisational activities which are deemed more essential to the business and its performance. Probably the only issue is that will be a timing issue, as we – and we’re still debating with our plan – get a live date for SAPs views in October. So although it looks, at this point in time, like it may be delayed. If it gets delayed, it’ll actually push back into about March next year, because we’ve got some other peak periods in respect to processing and so forth. (National Manager of Infrastructure). The experiences of the four case study organisations suggests that their HRIS projects tend to face a number of challenges in the allocation of resources and the securing of ongoing support from senior management. Often finance, marketing and other operational functions are being given greater priority. In sum, based on the empirical research to date, it could be argued that all of the organisations, and specifically the HR function within them, have faced challenges regarding their ability to maintain momentum towards the selection and implementation of an upgraded HRIS.

The Complexity of HRIS Underestimated The complexity of HRIS and its associated functionality appears to have been underestimated at the four case studies (Hannon, Jelf, & Brandes, 1996) and can be attributed to both technological and managerial factors. The challenge for HR management is how to manage the tension between the need to adapt practice to meet the needs of the HRIS versus customizing the technology to fit existing practices and the unpredictability involved in the management of people. Associated with this challenge is the decision of where to locate the management of the HRIS i.e. within Information Technology or as an HR technology group within HR.
Our case organisations have varied responses to this dilemma, but all suggest that management of the system has significant implications for knowledge transfer between IT and HR and thus the ability to realise value from the HRIS . Previous studies have reiterated the claims made by HRIS vendors that there are two compelling benefits arising from the implementation or upgrading of HRIS (Hendrickson, 2003; Kavanagh, Gueutal, & Tannenbaum, 1990; Kovach & Cathcart, 1999). One is an increase in efficiencies through reduced costs and increased data accuracy, and the other is the improvements in the speed at which information can be produced. Such improvements in business processes have not yet been fully realised in our case study organisations as the implementation and functionality of the HRIS has proven to be more complex than anticipated. ManuOrg has maintained a number of legacy add-ons and proprietary upgrades to their CHRIS system. The current project is attempting to simplify and standardise systems into a standard IT platform that can be more easily supported but is finding it difficult to align the needs associated with its range of operating companies within one HRIS. The organisation realises that with its selection of a new and alternative HRIS vendor (SAP), there will be considerable compatibility issues with data migration. Accordingly, the transactional and menial activities for HR will increase prior to implementation, as existing data and codes are modified, and therefore the time required for data migration is expected to be significant. The complexity associated with the new system has compelled the organisation to implement it in a ‘big bang’ manner. “There are too

many interdependent processes and that we really have to make the entire change of payroll for Australia and New Zealand at the one time” (Manager HR and Payroll Services). The complexity of the new system will also affect the value that the organisation can extract from the HRIS in the short term. Although the organisation has the explicit desire to establish a single source of truth via its new HRIS, it is recognised that such goals and aspirations will take second place, at least in the short-term, to the more urgent need to address issues surrounding change management and acceptance. The project based nature of the work that BuildOrg undertakes adds complications to the selection, use and implementation of any ‘vanilla’
HRIS. As the organisational structure is based more on projects and individuals rather than positions (typical of most organisations), particular reporting functionalities associated with HRIS may be deemed less germane or even superfluous for the organisation. In addition, similar to ManuOrg, this organisation is faced with the difficulty of trying to establish one central system which can be considered as a single source of truth from legacy systems which currently do not interface well. This has resulted in significant challenges around the compatibility and integration of data. BuildOrg has also experienced challenges with some of the functionality within the new system, particularly in relation to online leave applications. The issue of leave has proven to be problematic throughout the upgrade process, to the extent that the organisation has decided not to utilize this function initially, “which is probably why we’ve decided to not go forward with the (leave submissions) online; that’s a little bit in the too hard basket at the moment as to how it’s going to work” (Corporate HR Advisor). Furthermore, a number of other functionalities of the HRIS have needed to be adjusted in order to meet the organisational requirements before the system goes live: “You need a lot of tweaking at that point and we won’t be spot-on when we get it there; it’ll be close. That tweaking will take a while; it’ll take months and months” (Payroll Manager). This is a process that has consumed unexpected additional time and resources.

Similar levels of complexity are associated with the implementation of a new system at TechOrg. This complexity can however be attributed to the changes in ownership that the organisation has experienced over the past 2 years. The new system and its implementation has experienced additional technical difficulties which have largely been driven by established business processes that could manage differences in European and Australian legislation. Being a publicly owned organisation presents its own range of issues for GovtOrg regarding the use and implementation of a HRIS. Comprising a highly structured workforce, GovtOrg faces challenges with the management of rosters, schedules and allowances. In contrast to ManuOrg and TechOrg, GovtOrg needs an HRIS capable of processing, administering and managing a variety of employee rosters and allowances. More specifically,
for this particular organisation, the activities of workforce planning, the management of staff hours, associated policy issues and ensuring that its operations are conducted in accordance with the relevant collective agreements, results in additional complexity and has led to demands for additional functionality from the HRIS. Furthermore, the National Manager of Infrastructure recognised that existing contractual arrangements with their HRIS vendor has exposed the organisation to possible “…potential risks that may lead to delays.” Such potential risks and possible delays are believed to stem from concerns that the vendor may be unable to address the added demands for additional functionality that GovtOrg has put forward under present contractual arrangements. These contractual concerns along with workforce planning issues, have added to the complexity of the selection, implementation and use of GovtOrg’s HRIS. Barriers to Acceptance of New or Upgraded HRIS and the Importance of Change Management The third challenge which has hindered the ability of our case study organisations to realise the potential of their HRIS arises from barriers associated with the acceptance of the new or upgraded HRIS among key end-users of the system and the importance attached to managing the change processes associated with its implementation and introduction. Further, obtaining organisational ‘buy-in’ regarding the strategic contribution of the HRIS has, in some cases, been hindered by

scepticism, a lack of understanding, insufficient management commitment, and fears that existing modes of work will be changed and result in, for example, job loss or altered leave entitlements and shift arrangements (Kavanagh et al., 1990; Kinnie & Arthurs, 1996; Tansley & Watson, 2000). The lack of organisation and management buy-in has also been a significant challenge for ManuOrg. Despite the HRIS project acquiring renewed salience and again being placed on the organisation’s strategic agenda, the Manager of HR and Payroll Services recognised that the system and its importance for the organisation was yet to be acknowledged and wholly accepted: “I’m not sure that it’s got the necessary buy-in from the business leaders that we’re going to need to have.” This problem was reinforced later in the same interview: “…from talking with the business heads, concept-wise, no one is saying this is a load of rubbish, but I don’t think they’ve quite got their
heads into the space and are saying, ‘Yes, we’re 100% behind that…” To try and counter this lack of buy-in, the HR department is working on an ongoing basis to promote the HRIS promise. ManuOrg, acknowledges that the upgrade of the existing system, that has been in place for 21 years will generate significant change for the way that information is managed. As the Manager of HR and Payroll Services observed: The biggest issue I believe is going to be the change management… Most [ManuOrg] employees are going to notice that and more than notice. They’re going to see a significant change in the way that they supply information, get information, gain approvals. It’s a big challenge for us at the moment to try and get people in the business into this online environment. Some people really love it, other people really hate it. There’s like that sort of – and there’s nothing really in between at the moment – lack of understanding of the change needed but also an explicit concern for the need to manage change. Discussions about this challenge and concerns about the required change management process have been extensive and the wider acceptance of the system and its changes are seen to differ between those that are associated with the project, versus existing employees who are comfortable with the organisations current policy and procedures, or alternatively fearful of technology. For me it works well, but I’m very adaptable to change. So being able to move to a system where we can have everything in the one place I think is going to be a much better thing for us. (HR Manager of Corporate and Shared Services).

The challenges for GovtOrg in managing change are centred on the need to re-focus expectations. With the explicit desire to establish a single source of truth, the organisation has commissioned the HRIS project The ability for the organisation to achieve this relies on the ability to manage expectations: But we’ve also got to manage the expectation that this is not the silver bullet to everything. This is simply a system. A system, in and of itself, doesn’t actually resolve issues or processes or anything else. (National Director of People and Place) This same manager further believed this process and challenge would greatly impact the overall acceptance of the system and thus was focussed on the implementation process. “If this process experiences issues and additional complications, or just ‘goes wrong’ [then] you can almost smell the end of SAP or its user acceptance
within customers.” Without an effective implementation process the ability of the organisation to gain potential strategic potential from their HRIS would be significantly compromised. Barriers to acceptance, ownership and maintenance have plagued BuildOrg’s past, current and planned HRIS. The resources allocated to the maintenance of the HRIS system have waned throughout the life of the existing system and overall ownership of the system has largely been transferred back and forth from IT, HR and Payroll: “We’ve had a lot of problems actually trying to get people to take ownership of the systems and maintain them” which has resulted in the existing system and the information that it generates being inaccurate and outdated. Past experiences of systems with limited use, combined with an appreciation of the needs of the current workforce has ensured that the organisation has delayed the implementation of the new updated system in an attempt to ensure that all problems and barriers have been addressed before the system goes live. According to the Corporate Human Resources Manager, training and education is essential and needs to be timely: It’s about educating and marketing, I think at the induction piece, the new joiners they get some sort of training on how to use it and then when we roll out self service and I was talking to [Manager X] about this the other day and said anything we do it has to have a

really good marketing push so that people take notice and then quickly follow it up with the training. This organisation and its current project manager also realises that the training needs to be hands on in order to generate an acceptance and use of the system and avoid the work-arounds that have compromised the effectiveness of the system in the past. Acceptance of the HRIS has also presented problems for TechOrg however user resistance has not been as significant as evidenced in the other cases. Employees largely work in distributed teams located in client organisations for the duration of their projects. They are working in a hightech environment and thus are comfortable with a more virtual relationship with the organisation and use the HRIS to manage their information and for most of their HR requirements. Despite the HR department struggling to ensure that the new HRIS project retains salience in the organisation, the lack of organisational buy-in tends to surround specific functions rather than the system as a whole. The
Director of People and Performance spoke of limited success with functionality associated with time sheeting and the need to incorporate additional flexibility to meet the increasingly complex customer requirements which have implications for their employees in different work sites. Change is a constant in this organisation so together with the technical requirements of the job, this seems to create a more accepting environment for new systems. However, despite this environment, recent changes around pay cycles generated significant resistance that was unanticipated by management signalling that changes to the HRIS that directly impact employees such as pay may require significant more attention to change management than TechCo has traditionally been used to. Discussion and Conclusions Initial findings from our four case studies suggest that although new or upgraded HRIS systems are being used to automate and devolve routine administrative and compliance functions traditionally performed by the HR function, the potential for this technology to be used in ways that contribute to the strategic direction of the organisation is not being realised. More specifically, our results suggest that the opportunity to enhance HR’s role as strategic partner as a result of the use of HRIS is being

hindered by three main challenges. The first challenge relates to the ability to maintain the levels of senior management commitment and resources needed to implement and manage new or upgraded HRIS. The second concerns managing the complexity of the HRIS and its associated functionality. The third challenge stems from barriers associated with the acceptance of HRIS among key managers and employees along with the importance attached to managing the change processes associated with the implementation and introduction of the new or upgraded systems. These challenges demonstrate that the material, functional characteristics of technologies such as HRIS are complex and make them difficult to introduce and operate. At the same time, and in line with a social constructionist approach to the study of technology each of the challenges illustrates that how and when a technology is used is also determined by the agency of its users and the social context within which it is adopted (Orlikowski et al., 2001). In sum, only through an appreciation of both the material and the social can a more informed
understanding of the problems that surround HRIS implementation and operation be obtained. In this respect, our findings are in contrast to the more technological deterministic view of earlier studies of HRIS that suggest that it is simply the technology itself which has implications for the changing role of HR. It can be seen then that the social context of HRIS plays an important role in shaping user perceptions and behaviour (Orlikowski, 2000). From a technologies-in-practice perspective (Dery et al, 2006) user interactions with the ‘facilities’, ‘norms’, and ‘interpretative schemes’ associated with HRIS are affected not only by its technological complexity, but also by problems concerning the management of, and commitment to, its implementation. These socio-contextual factors are compounded by the fact that each case study organisation has experienced significant change, for example in ownership and structure. Underlying the three challenges is the issue of how various social groups, or key actors involved in the implementation and use of HRIS bring to bear their own interests and thus interpretations of the system and what it does. As a result of this process, the design, selection and use of HRIS are shown in this study to be subject to contestation as a range of meanings are

attached to the technology that either undermine or highlight its perceived value and significance and which impact on the extent to which it is to be used in a strategic or more administrative fashion. Significantly, the study suggests that interpretations which run counter to HRIS being used in ways that realise its strategic potential are currently winning the day. Overcoming these interpretations of HRIS and replacing them with one that leads to its being used to inform business strategy requires organisations to identify and systematically address the three challenges we have identified. Until this takes place, the potential of HRIS to enhance the strategic role of the HR function is likely to remain unrealised.

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Human Resource Planning

The process that connects an organization’s strategic plan with its human resource needs is called human resource planning. The process ensures that staffing needs are addressed to achieve the organization’s objectives. Human resource planning is important because it helps an organization maintain a competitive edge and retain employees. Human resource planning determines the supply and demand of employees, according to the needs and wants of the business and its customers. The internal and external environment has an impact on the consideration of human resource planning. For instance, internal impacts are promotions, transfers, or firings, and external impacts can be changes in technology, the economy, or the industry. The competence and qualification of current and future employees and their career paths are more factors to consider when developing a human resource plan. These impacts can affect the staffing and human resource planning processes depending on the needs for a company to remain successful. Human resource planning is important and ongoing because of both internal and external environmental changes.

Planning and Strategic Development and Implementation

Human resource planning is identifying present and future needs of an organization to reach its goals (Obeidat, 2012). Human resource planning also involves predicting the demand and supply for employees, considering the business needs, and strategies for development and employment to meet requirements (Obeidat, 2012). The results will provide an analysis of human resource supply and future demand, which will identify gaps and most likely include staffing. Therefore, having knowledge of the goals and expectations of the company, can identify methods to reach these goals and track its progress. Planning in this manner allows a company to link resources with business performance. The results will identify the required number of qualified and competent candidates and this will help the business meet its goals and objectives. For instance, human resource planning and staffing connect by addressing the company’s direction, skills, knowledge, and abilities needed to follow a certain path. It also assesses the current competencies within the company and the gap between the direction and requirements to succeed.

Description of the Staffing Process

The eight elements of the staffing process are human resource planning, recruiting, selection, orientation, training and development, performance appraisal, compensation, and employment decisions (Plunkett, Allen, & Attner, 2013). Human resource planning involves assessing current employees, forecasting future demands, and constructing plans to add or transfer employees (Plunkett, Allen, & Attner, 2013). Recruiting involves looking for qualified people within or outside the company for vacant positions (Plunkett, Allen, & Attner, 2013). Selection is interviewing and testing candidates and hiring the best applicant(s). Orientation is when new employees learn about the fellowship. Training and development is when new employees learn their jobs and expand their skills. The performance appraisal is the origination of the touchstones for judging the workplace of employees (Plunkett, Allen, & Attner, 2013). Compensation is generating pay and benefits for each position. Employment decisions include promotions, demotions, transfers, layoffs, and firings (Plunkett, Allen, & Attner, 2013).

Elements and Activities

The proper planning, recruiting, and selecting of staff is an ongoing process. The hiring process is just the beginning of staffing. The human resource department must retain employees through training and development, performance appraisal, compensation, and employment decisions. The first step in human resource planning is the staffing process. The human resource planning process starts with a job analysis. A job analysis describes the skills, knowledge, and abilities required to perform each position. The job description will include what, how, and why employees perform his or her duties. It specifies minimum acceptable qualifications a candidate must possess to do the job effectively. A human resource inventory comes after the completion of the job analysis. The human resource inventory will categorize the needs and wants of the position. Afterwards, a human resource forecast is created to anticipate future demands for each position based on the plans, goals and objectives of the organization. Last, the forecast and inventory are compared to decide whether staffing needs will come from internal or external candidates.

Activities and Planning, Development, & Implementation

The primary influence in the use of a company’s resources is the mission and vision of the organization. The mission and vision of the business provide the reason for the use of the resource. An effective and efficient business, strategic and business plans specify how its resources are managed and utilized. The most important resources a business must effectively use are: technology to create a product or deliver the service, the finances to pay for the requirements, and the skills and talents used by human beings to complete the job (Soberg, 2011). The business specifies the technology it needs to achieve the mission of the organization. The required technology will depend on the amount of product or service the company wishes to provide. The strategic plans and vision will be a factor in this decision to ensure it aligns with the goals of the company (Sober, 2011). The best fit for the organization and its mission will come down to the industry and what is currently utilized.

The financial aspect of the equation will specify how to produce money, control money, and foresee the revenue and expenses. The budget for a smooth, successful business operation will rely on the need for achievement in regards to the goals and objectives. The decision must include the cost of the entire operations including maintenance. For instance, the expenses cover purchasing, maintaining and adapting technology and compensating employees. The human benefactor is the knowledge, skills, and abilities utilized to generate and carry the product and service. People are an organization’s largest resource because products and services could not be managed, created, or delivered without the knowledge, skills, and abilities of human beings (Soberg, 2011). For example, without any assistance from human beings, technology and money cannot be utilized. The effective use of human resources assist companies in attracting the right employees, expand the knowledge, skills, and abilities of these employees, and keep the employees within the organization.


Human resource planning is the prediction of future business and environmental needs of a given organization. Human resource planning estimates the number of people available to work for future purposes. It strives to identify proper staffing required to perform organizational activities. Human resource planning is an ongoing process which starts with objectives, move toward an analysis of resources and ends at evaluation of the human resource plan. Human resource planning compares the present and future status of the organization. The results identify what changes are necessary to meet goals. Human resource planning is vital so companies can meet their objectives and gain a competitive edge over its competition.

The proper prediction of employment needs is important. An organization must foresee staffing issues beforehand, just as they predict potential threats in the industry that can impact on overall business success. Employee performance is a direct link to the success of the company. Therefore, a company that is not able to achieve goals is the result of workplace failure. Nevertheless, human resource planning is important to ensure the organization does not hire the wrong people or neglect to predict changes in staffing needs. The only way an organization can ensure employees have the skills, knowledge, and abilities the business needs to succeed is by planning for human resource needs. A human resource plan goes hand in hand with the companies plan to determine the resources it needs to achieve the goals.

Obeidat, B.Y. (2012, October). The Relationship between Human Resource Information System (HRIS) Functions and Human Resource Management (HRM) Functionalities. Journal of Management Research, 4(4), . doi:10.5296/jmr.v4i4.2262 Plunkett, W. R., Allen, G. S., & Attner, R.F (2013). Management: Meeting and exceeding customer expectations (10th ed.). Mason, OH : South-Western Cengage Learning. Soberg, A. (2011). The Link Between Strategic Planning and Human Resource Planning. Retrieved from

Human Resource Information Systems

1. “Suggest how HR professionals can use online recruiting to more effectively support recruitment activities while reducing organizational costs.” Retaining and acquiring talent with high qualities is crucial to an organization’s success. “As the economy and job market heats up, so has the market for corporate recruiting and recruiting service and consultants” (Bersin, 2013). Therefore, the labor force becomes more competitive and available skills become more diverse, HR professionals need to be more selective when choosing the right candidate. Poor decisions made by recruiters can result into negative effects for the company. Another thing that can impact an organization as well as an employee’s morale is high training and development cost. For this reason alone, many companies have turned to e-Recruiting. “Online recruiting involves less human interaction, reaches a much broader audience, files records electronically, and provides selection tools electronically” (Friend, 2014).

Companies can conduct everything online while spending less money sending all employees to a training session or meeting off-site. Just by conducting meetings, training, etc. online saves the company a lot of money. For example, new hires really make up the majority of the cost because they need to be trained in every aspect of the job they are taking on. Also, training occurs with other employees besides new hires when a new product or service surfaces within the company. All employees need to learn about the new products or services in order to promote them to their clients. Online recruiting comes in handy since it’s a real money saver by having employees do everything online via internet instead of meeting each time for different things. Online recruiting is not only cost effective but it’s quick and easy to do. HR professionals can posts job postings anywhere there is an internet connection and receive responses just as quickly. Online recruiting can become very convenient.

2. “Recommend four (4) strategies to mitigate the unintended consequences associated with e-Recruiting.” Four strategies to mitigate the unintended consequences associated with e-Recruiting include: Ensuring consistent high customer satisfaction online and maintaining consistent high service When e-recruiting, recruit and select applicants who appear to have out-going personalities that fit within the organizational culture This can be determined from likes/dislikes

Express that training and incentives will be provided in order to encourage loyalty, motivation, and focus on doing whatever it may be to meet the needs of the customer, and create Create a consistent set of HR practices that work together to create a culture of customer service. A strategy is not always planned and HR professionals usually have to adopt this strategic plan. Maintaining excellent service and high customer satisfaction is a good look for the company. Also, it’s a great strategy to have to meet all the needs of the customers to ensure their returned business and for them to spread the good comments about the company to their family, friends, and co-workers. The last strategy to mitigate the unintended consequences is for HR to get their practices to work together for the good of the company. HR needs to put a process in place that will be successful and beneficial to the employees and the company.

3. “Propose one (1) approach in which online recruitment can help ensure the employee’s psychological contracts are fulfilled.” According to Kavanagh, Thite, & Johnson (2012), psychological contract fulfillment, employee satisfaction, and retention rates are three other important goals of the recruitment process. The employees’ beliefs about the obligations and promises between them and their companies are what the psychological contract refers to. It’s going to be important to explore the extent to which online recruitment can help ensure that employees’ psychological contracts are fulfilled. Information that is collected and distributed during the recruitment process shapes the expectancy that leads to psychological contract fulfillment, which directly affects employee satisfaction and retention rates. The numerous expectations that shape the psychological contract include the work role, such as job performance; social relations, such as co-worker and customer interactions; economic rewards (raises, monetary incentives), and company culture. According to Heneman and Judge (2006), one approach to use to ensure psychological contracts are filled is a realistic recruitment message.

4. “Suggest three (3) strategies you would use to attract high-quality candidates and members of diverse groups using an e-Recruitment approach.” One strategy to use to attract candidates would be through social media. Examples of social media would be Facebook, Twitter, Instagram, and even email such as Hotmail, Yahoo, and Google, etc. Today’s world is very technical savvy and most people now use the internet for everything, these medias would be perfect for announcing job vacancies and announcements. For example, when I used to work for State Farm I made a Facebook page for the company and promoted different products and services that we offered.

Another strategy I would use is at the end of applicants completing their work history, etc. before submitting to the job, a series of detailed questions would be asked that relates to specific job in which they are applying for such as years of experience performing that particular job, and skill competencies, etc., this would eliminate applicants that don’t have the necessary experience and skills and alleviate unwanted applications. One last strategy I would use to determine diverse groups is have the applicant fill out an optional survey informing of their race, gender, etc. The survey if completed or not would not have an impact on whether or not the applicant is interviewed and the applicant would also be informed of this as well. This would only be for survey purpose that will allow the organization to see if and how many people from diverse backgrounds are applying.

5. “Take a stand on whether or not the attributes of a Website (attractiveness, quality, and ease of use) would affect your motivation to apply for a job at that company. Justify your position with specific examples from two (2) business Websites that you are familiar with.” In my opinion, I find that when applying for positions the company’s attractive quality and ease of use website is very important. This lets me know that the company takes pride in their name and what to make an impression on the candidates that are applying. Even though they are the ones that are hiring, they need employees to work as well as a candidate needs a job. The first impression is a lasting impression, and if I’m impressed with the Website then chances are I’m going to be impressed with the company and would want to work for them.

Two websites that I’m familiar with are and I used these two websites frequently because they always have up to date posts on their websites every day and have a variety of positions available. Both sites are colorful, and allow you to type in key words related to the job of interest along with the city and state. Next, it will display jobs related to the key words that are entered. The jobs that are displayed list the job title, company name, and a brief description of the job that includes the range in job salary, for some. Both search engines are easy to navigate, the content of the information is relevant to what I’m looking for. Also, usability is a plus, because they both allow you to receive job alerts, creat user accounts, and answer frequently asked questions.

6. “Propose four (4) security controls you would put into place to prevent unauthorized access to data and unauthorized disclosure of data when using e-Recruiting systems.” One security control I would use is each applicant would have to set up their own personal username and access code. This should ease the mind of the applicant, because this is information that only the applicant would use and have access to. Next, I would design a security control that is time sensitive and require the user to sign back in if the computer is idled for a certain amount of it the user spends too much time in one area without moving on to the next area. Third, I would use an online security system that would prevent hackers and unauthorized access to applicant’s information.

“The last security control that I might put in place would be some type of software where you have to answer personal related questions about your past that only that specific person would know” (Zeidner, 2007). For example, a multiple choice question might pop up and ask which of the following are related to you and the employee that is trying to gain access would have to answer the question correctly. According to Kavanagh et al, I would develop privacy protection policies that (1) restrict access to data, (2) restrict disclosure of data, and (3) ensure that only job-relevant data are collected for decision-making purposes. Everyone has to be careful nowadays, because hacking into computers is just as easy as breaking into a house nowadays.

Bersin, J. (2013, May 23). Corporate Recruiting Explodes: A New Breed of
Service Provders. Retrieved from Forbes: Friend, L. (2014). Advantages of Online Recruiting. Retrieved from Chron: Heneman, H.G., & Judge, T. A. (2006). Staffing Organizations (5th ed). Boston: McGraw Hill (nd). Introduction to Online Recruitment. HRM: Guide Human Resource Management. Retrieved from: Kavanagh, M. J., Thite, M., & Johnson, R. D. (2012). Human Resource Information Systems (2nd ed.). Thousand Oaks, CA: Sage Publications, Inc. Zeidner, R. (2007, December 1). HR Magazine: Making Online Recruiting More Secure. Retrieved from SHRM:

HND Business Human resource management

Personnel Management
Personnel Management is essentially an administrative record-keeping function, at the ground level. Personnel Management professionally manages employee’s activities for individual departments for example in Bhs you will have a personal manger for customer services. It is assumed that the outcomes from providing justice and achieving efficiency in the management of personnel activities will result ultimately in achieving organizational success. Human Resource Development –

Human resource management is concerned with the Training, promotion development and implementation of people strategies, which are incorporated with business strategies, and guarantees that the culture, values and structure of the organization, and the quality, incentives and commitment of its members contribute fully to the achievement of its goals.

Human Resources Management is focused with carrying such task as, job analysis, recruitment and selection, employee relations, performance management, employee appraisals, compensation management, training and development. But, the Human Resources method performs these functions in distinct way, when compared with Personnel management. Personnel management is about the continuance of personnel and administrative systems, Human Resources Management is about the anticipation of organizational needs, the continual monitoring and adjustment of personnel systems to meet current and future requirements, and the management of change.

Differences between Personnel management and Human Resources management

Personnel management is more workforces focused, aimed mainly at the organization’s employees; such as, arranging for them to be paid, and justifying management’s actions etc. Whereas, Human Resources management is
more resource centered, Personnel Management is fundamentally an operational function, concerned principally with carrying out the day to day people management activities. While on the other hand, Human Resources Management is strategic in nature, that is, being concerned with directly assisting an organization to gain competitive advantage. HRM is a more strategic and proactive form whereas personnel management is a reactive.

Human Resources Management has been considered as the strategic and logical approach to the management of an organization’s most valued.

The personnel management has functions which are conventional and systematic whereas HRM deals with innovative ideas and are committed to enforcing better business conditions. Personnel management has evolved from being an independent function of the company to human recourses management which is an integral part of the company.

20 Points of Difference between Personnel Management & HRD

Personnel Management
Human Resource Development
Beliefs & Assumptions
Careful delineation of written contracts
Aim to go ‘beyond contracts’
Importance of devising clear rules
‘Can-do’ outlook; impatience with ‘rule’
Guide to management Action
Business – need
Behaviour Referent
custom & practice
Managerial Task vis-à-vis Labour

Key Relations
Labour Management
Corporate Plan
Marginal to
Central to
Speed of Decision

Management Role
Transformational leadership
Key Managers
Personnel/IR Specialists
General/business/line managers
High (e.g. ‘parity’ an issue)
Low (e.g. ‘parity’ not seen as relevant)
Prized management skills
Separate, marginal task
Integrated, key task
Job Evaluation (fixed grades)
Performance – related
Labour Management
Collective bargaining contracts
Towards individual contracts
Job categories & grades
Restricted flow
Increased flow
Job Design
Division of Labour


The Role of Human Resource Management in Organizations

Managers in the Human Resources profession have the essential job of organizing people so that they can effectively perform their job description. Human resources professionals work together to develop employees’ skills. For example, HR professionals advise managers and supervisors how to assign employees to different roles in the organization, thereby helping the organization adapt successfully to its environment. In a flexible organization, employees are shifted around to different business functions based on business priorities and employee preferences. Human resources professionals also suggest strategies for increasing employee commitment to the organization. This begins with using the recruiting process or matching employees with the right positions according to their qualifications. Human resources management team helps a business develop a competitive advantage, which involves building the ability of the company so it can offer a unique set of goods or services to its customers. They can do this by hiring the right individuals but it’s not just about hiring talent; it is about keeping people and helping them grow and stay committed over the long term.

The Human resources team has to identify needs of the employees regarding career goals and work upon them to make the employees feel important and motivated by providing them with training related to their field of interest. If the employee does not feel their skills are being utilized fully towards performing their duties they will start to underperform due to lack of motivation. Human resources duties also concern understanding and defining the overall objectives of the organization, its mission as well as vision. It does not only include the present organization requirements but also forecasting the future needs and making strategies for fulfilling them. Human resources team is also responsible for ensuring the availability for training the employees. Human resources management team understand that if the employees are properly trained and developed, it can prove to be the best investment made by the company which will definitely furnish quality returns in future. Human resources team is responsible for selecting the best workforce from the prospective employees by using the recruitment options like, Personal interviews and group interviews Trial etc.

Human resources team is responsible for ensuring employee health and safety by abiding to the employee health and safety regulations and managing grievances and ensuring provisions benefits to keep employees motivated. Human resources team keep a record of the employee profiles and database so that it can be readily available at the time of recruitment and staffing and also ensuring its confidentiality.

The role of line managers in HR Resource

The Line managers are managers to whom individual or teams of employees directly report to and who have responsibility to a higher level of management for those employees or teams. Line Managers are authorized to direct the work of subordinates and are responsible for accomplishing the organization’s tasks. Typically the management responsibilities carried out by line managers might include: Employee management

Managing operational costs
Providing technical expertise
Organisation of work allocation and rotas
Monitoring work processes
Checking quality
Dealing with customers/clients
Measuring operational performance.

Line managers also carry out activities that such as providing coaching and guidance, undertaking performance appraisals and dealing with discipline and grievances. Line Managers are responsible for: ensuring that any staff experiencing performance difficulties are managed appropriately and working with the employee to identify measures that could be used to improve performance. Ensuring the staff member has a full understanding of the consequences of not improving, Setting realistic and measurable standards of performance and an action plan incorporating targets, standards, deadlines. Line managers manage operational functions that are crucial for the company’s survival.

Line Manager Responsibility
1. Ensuring that any staff experiencing performance difficulties are managed appropriately
2. Ensuring the staff member has a full understanding of the consequences of not improving
3. Placing the right employee on the right job
4. Starting new employees in the organization
5. Training employees for jobs that are new to them
6. Improving the job performance of each person

Impact of the legal and regulatory framework on HRM

British legislations have employment laws, affecting topics such as employee criminal record checks, preventing offenders from working in certain professions these legislations are supposed to protect vulnerable people like children or stop unwonted people from obtaining the job.

National minimum wage Act was brought into force to ensure that employees are getting a fair wage in relation to their work. Wage and Hourly rates The national minimum wage establishes the amount of the minimum wage an employee receives per hour. Human resources managers should continuously verify the accuracy of the amount paid to employees

Race Relations Act 1976 Prevents discrimination because of race in employment. The impact this has in the workplace is a Varity of different cultural backgrounds in the work place and this can have a really positive effect if managed effectively

Anti-discrimination Sex Discrimination Act 1975 Protects men and women from discrimination because of sex in the workplace, this legislation is about equal opportunities in the work place across the sexes men and women in the workplace should be treated equally.

Disability Discrimination Act 1995 Prevents discrimination against people because of disabilities in employment. The impact this Act will have in the workplace would be there would be a few more disabled individuals in the workplace which will benefit the economy.

Equal Pay Act (1970) Aspect of the Sex Discrimination Law
Gives the right for men and women to be paid the same rate of pay, for the same, or equivalent, work Gives individuals the right to the same pay and benefits as a person of the opposite sex in the same employment where the man and woman are doing;

1. Same grade work
2. Work rated as equivalent under a job evaluation study
3. Work that is proved to be of equal value

Developing policies
Human resources develop policies to make sure that managers and employees are aware of how these legal restrictions and how to deal with potential violations

AC 4.1

There are many reasons for termination. Employee termination also can be voluntary, when an employee decides to leave a company for some reason. Reasons can include unacceptable performance or as a result of a change in business conditions for example a recession.

Termination with just cause
In law, termination with just cause means that an action or error by the employee has irreparably damaged the employment relationship between the employer and the employee. Usually, termination with cause occurs when an employee is dismissed for a serious reason related to the employee’s conduct. There are seven main Examples of misconduct.

1. Theft and dishonesty
2. Violence
3. Drug and alcohol abuse
4. Breach of confidence
5. Insubordination
6. Absenteeism
7. Misconduct outside of the workplace
Some common grounds used in termination with cause are:

1. Fraudulence – stealing or fraud by the employee that is serious enough to authorise dismissal from organisation. 2. Noncompliance – an employee frequently breaks organizational policies and discipline has not resulted in a change in behaviour 3. Incompetence – an employee is incompetent at their job and performance has not improved even though the employee has been given the direction, foundations, training and time needed to improve.

Incompetent Job Performance
Employee’s contracts may get cut because the person is unable to perform some or all of the necessary aspects of the job. Before dismissal the employer, should point out their deficiencies during a performance evaluation and provide counselling to help her improve. If they show little or no improvement, consider moving them to a more suitable position, if possible.

When employees are hired to work for a company, they are given a job description that outlines the duties they’re expected to fulfill. 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 fulfill assigned tasks.

Business Conditions

Unfavourable business conditions may force you to lay off employees for economic reasons as opposed to poor performance. The layoff may be permanent, or the employee may be called back to work if business conditions improve

A merger or a buy-out usually requires changes within the Company’s’ structure, which might affect employment. Although the employer is not legally required to do so, some employers offer a severance package to employees terminated under these circumstances.

Layoffs if there is a lack of work, or the company is undergoing financial problems the company might lay off employees. The employer must ensure the layoff is fair and legal. Employers must give employees advance notice of closings and mass layoffs. This gives the employees and their families’ time to adjust to loss of employment and to seek alternative support.

Unacceptable Behaviours / for cause
You may need to fire an employee due to unacceptable behaviour; actions can include stealing company property, or verbally or physically threatening another employee. The employee may also display a pattern of disrespectful or insubordinate behaviour directed toward you or your supervisors that results in a disruption of your work environment.

An employee who misses work frequently or is habitually late negatively affects your business’s productivity and can place an unfair burden on your other workers. Chronic absenteeism could be a sign that the employee is dealing with job dissatisfaction.

Voluntary redundancy
In a voluntary termination, an employee hands in their notice from their job. Reasons for resignations have that included: a new job, returning to full time education, and retirement. If a contract isn’t renewed

This is considered to be a dismissal, and if the employee has 2 years’ service the employer needs to show that there’s a reasonable reason for not renewing the contract Workers have the right: not to be unfairly dismissed after two years’

Dismissal when your employer ends your employment – they don’t always have to give you notice. If you’re dismissed, your employer must show they have a valid reason that they can justify and also that they have acted reasonably in the circumstances They must also: be consistent – not dismiss you for doing something that they let other employees do

Fair and unfair dismissal
A dismissal is fair or unfair depending on the reason for it and how the employer acted during the dismissal process.

Constructive dismissal
This is when an employee resigns because you’ve breached their employment contract. This could be a single serious event or a series of less serious events. An employee could claim constructive dismissal if you:

cut their wages without agreement
unlawfully demote them
allow them to be harassed, bullied or discriminated against

Wrongful dismissal
This is where you break the terms of an employee’s contract in the dismissal process, eg dismissing someone without giving them proper notice.

AC 4.2 describe the employment exit procedures used by two organisations The exit procedures of ASDA
Step One, Resignation handed to personnel manager
Step Two Personal manager informs human resources department.
Step Three Employee has to return the companies possession of equipment and supplies.
Human Resources team is responsible for initiating and following through with the exit process. If the resignation is voluntary HRM invites employee to attend an exit Interview to gather information and improve quality of work life at the organization. The secondary reason is to provide closure to the separating employee The exit interview Primary Purpose is to gather information to improve employee relations practices Spot developing trends

Identify areas of weakness
Identify areas of strength

Exit interviews are also used to understand, and try to identify patterns in, reasons for resignation they are conducted face -to-face, by telephone, or as a survey. Focus is on reasons for leaving, reflections on the positive and negative aspects of the organization, level of satisfaction with various aspects of the organization.

Processing a Resignation NHS West Midlands

Step one The Line Manager gives notice to the Human Resources department upon receipt of a resignation.

Step two the Line Manager recognizes resignation in writing and forwards the letter of resignation to the Human Resources department.

Step Three Line Manager forwards confirmation of employee’s last working day and details of any other relevant information to the Human Resources department. The Human Resources department prepares a Termination Form on the basis of the information provided by the Line Manager and ensures it is forwarded to the Payroll department in time to meet the monthly deadline

Step Four the Human Resources Department writes to the employee offering them An exit Interview and enclosing an exit Interview Questionnaire for them to Complete in preparation for the interview. The Human Resources Department forwards the Line Manager a confirmation of Service Proforma to complete and return.  The completed proforma will be retained on the employee’s personnel file and will provide the basis for any employment references given by the Board

Interview is conducted by an appropriate member of the Human Resources team. All information collected remains confidential and is stored in line with the Data Protection Act 1998.


AC 2.1 analyse the reasons for human resource planning in organisations

Human Resource (HR) Planning is the practice of determining and analyzing the requirement for and supply of workforce in order to achieve the organization’s goals and objectives, fulfill its mission and reach its vision (Mathis & Jackson, 2000).

Human resource department know that planning is of paramount of importance to achieving an organizations objective. This part of my assignment will discuss the importance of HR planning and the six steps of HR planning which consist of:

1. Forecasting;
2. inventory audit,
3. HR Resource Plan;
4. Implementation of Plan;
5. Monitoring
6. Control.

HR Planning involves gathering information, making objectives, and making decisions to enable the organization achieve its objectives types of questions HRM may consider

1. How many staff does the Organization have?
2. What type of employees as far as skills and abilities does the Company have?
3. How should the Organization best utilize the available resources?
4. How can the Company keep its employees?

The most important reason why HR Planning should be managed and implemented is the costs involved. Because costs forms an important part of any Organizations budget. Whenever there are staff shortages, the organization should be in a position to utilize the skills of employees available more readily.

HRM planning determines future employment needs by analyzing current business conditions and current trends within the business, for example over the Christmas period most big high street retailers will employ more short term staff because the demand for goods over the Christmas period. Identifying these trends and planning for them will let the business be in a more positive position to be conducting business. HRP is also concerned with employee turnover within the business as management needs the right employees at the right place to make a profit and benefit the organization.

(2.2) Steps in HR Planning

HR Planning requires that we gather data on the Organizational goals objectives. One should understand where the Organization wants to go and how it wants to get to that point. The needs of the employees are derived from the corporate objectives of the Organization. They stern from shorter and medium term objectives Therefore, the HR Plan should have a mechanism to express planned Company strategies into planned results and budgets so that these can be converted in terms of numbers and skills required.

After knowing what human resources are required in the Organization, the next step is to take stock of the current employees in the Organization. The HR inventory should not only relate to data concerning numbers, ages, but also an analysis of individuals and skills. Skills inventory provides valid information on professional and technical skills and other qualifications provided in the firm. It reveals what skills are immediately available when compared to the forecasted HR requirements.

HR inventory calls for collection of data; the HR audit requires systematic examination and analysis of this data. The Audit looks at what had occurred in the past and at present in terms of labor turn over, age and sex groupings, training costs and absence. Based on this information, one can then be able to predict what will happen to HR in the future in the Organization.

HR resource plan
Here we look at career Planning and HR plans. People are the greatest asserts in any Organization. The Organization is at liberty to develop its staff at full pace in the way ideally suited to their individual capacities. The main reason is that the Organization’s objectives should be aligned as near as possible, or matched, in order to give optimum scope for the developing potential of its employees. Therefore, career planning may also be referred to as HR Planning or succession planning.

The questions that should concern us are:

a) Are we making use of the available talent we have in the Organization?

b) Are employees satisfied with our care of their growth in terms of advancing their career? Actioning of Plan
There are three fundamentals necessary for this first step.
1) Know where you are going.
2) There must be acceptance and backing from top management for the planning.
3) There must be knowledge of the available resources
Monitoring and Control.

This is the last stage of HR planning in the Organization. Once the programme has been accepted and implementation launched, it has to be controlled. HR department has to make a follow up to see what is happening in terms of the available resources. The idea is to make sure that we make use of all the available talents that are at our disposal failure of which we continue to struggle to get to the top.

2.3 Recruitment and selection process.

Recruitment is the process of approximating the available vacancies and making suitable arrangements for their selection and appointment. Recruitment is understood as the process of searching for and obtaining applicants for the jobs, from among whom the right people can be selected. The result is a few eligible applicants from which new employees are selected The difference between recruitment and selection:

Recruitment is identifying and encouraging potential employees to apply for a job. And Selection is selecting the right candidate from the collection of applicants. Goals of selection are to select a candidate that will be successful in performing the tasks and meeting the responsibilities of the position.

Selection process
Selection process involves a number of steps. The basic ideais to solicit maximum possible information about thecandidates to ascertain their suitability for employment

1).Screening of Applications
Prospective employees have to fill in some sort of application forms. These forms have information about the applicants like their achievements, experience.

2) Selection Tests
Selection tests to know more about the candidates or to reject the candidates who cannot be called for interview.

4) Interview The basic idea here is to find out overall suitability of candidates for the jobs. It also provides opportunity to give relevant information about the organization to the candidates

5) Approval by appropriate Authority
Suitable candidates are recommended for selection by the selection committee or personnel department. Functional heads concerned may be approving authority. When the approval is received, the candidates are informed about their selection and asked to report for duty to specified persons.

6) Placement
After all the formalities are completed, the candidates are placed on their jobs initially on probation period may range from three months to two years. During this period, they are observed keenly, and when they complete this period successfully, they become the permanent employees of the organization.

Recruitment and selection process at Tata
Having received the applications, the next step is to evaluate applicants experience and qualifications and make a selection. Screening purpose is to evaluate the application and eliminate applicants whose profiles do not match the job requirements, Short-listing of CVs received from various sources are screened by the HR function within a week of commencement of sourcing activity.

Knowledge and aptitude test is conducted for all trainees and laterals recruits. The result of test will be criteria for short listing /screening candidates for the purpose of interview. Psychometric Test is done to find out the “CRISP” fit.

While hiring at Tata, they look for the following attributes C – Customer Focus
R – Result Orientation
I – Initiative and Speed
S – Self Confidence
P – Passion for achievement

This is powerful technique used to assess the capabilities/skills of the candidate and to understand the softer aspects that a difficult to measure from resumes. After finalizing a date and time, short-listed candidates are invited for an interview

Selection Process and interviews for Tata motor cars
Duration of written/online tests and interviews
1) Aptitude Test
0-30 Minutes
Aptitude Test

2) Technical Test
30-60 Minutes
Technical Written
3) Psychometric Test

4) Group Discussion

5) HR Interview
0-30 Minutes
HR Interview
6) Technical Interview
0-30 Minutes Technical Interview
Technical subjects to study for written test Theory of Machines, Automobile engineering, Fluid Dynamics and Machinery. The Psychometric test questions the test the way you handle situations under different circumstances. Recruitment at Asda

Phase one Applications are registered through Asda’s online recruitment system, Asda’s HR team then shortlist appropriate candidates for interview or an assessment centre. Two documents are vital here: a job description and a personal specification. These inform applicants and help managers select the candidates that best match the requirements for the position.

Step two attend the assessment centre known as either ‘Asda Reality’ this provides an opportunity for candidates to demonstrate their strengths which align to Asda’s culture, beliefs and way of working. Step three interview once selected, the final part of the recruitment process involves providing appropriate training. At Asda, each new colleague is put into a specific training plan designed for their role. (2.4)

The first phase of recruitment at Asda is automated you can upload your curriculum vitae and edit your personal details on line, this way it makes it simper for the recruiters to narrow down the employees they would like. Asda’s online recruitment process has improved the speed and efficiency of recruitment, making applications easier for candidates and selection faster for management. On the second phase is really about meeting your potential employer and selling your skills and experience to see if you could fit in with the organisations overall vision.

The recruitment and selection at Tata is far more complicated than that at Asda this is because of the more highly skilled aspects of the work. Phase one is based on receiving applications for the vacant position. Phase two evaluate applicants experience and qualifications and make a selection. Screening purpose is to evaluate the application and eliminate applicants, whose profiles do not match the job requirements, Phase three are tests to test the competence of potential employees theses test consist of technical and written aspects Phase four is the Human resources interview and phase five is the technical interview.


Appraisals and rewards system at Tata Motors are based on key results area. There are reviews at regular intervals, promotions are based on performance, and productivity and rewards comes in the form of profit linked incentives schemes. Positive appraisals can affect your career pathway with fast track options for high performers and interviews for positions above manager’s positions. Tata motor company employees have appraisals twice a year whereby employees get feedback which gives them a chance to look at their approach of working, The necessary steps are also undertaken for employees who deviate from their goals

Tata motors have introduced a comprehensive system of quarterly appraisals whereby each employee selects their own key results areas or goals and every quarter they have the chance to go back and asses their own performance against the parameters. For many front line employees these performance related quarterly payouts designed to reward them with incentives for their performance. Tata Motors have midterm reviews for all employees that have had positive appraisals creating an expectation of a salary rise twice a year if they perform well. At Tata employees and supervisors can set up joint participations goals this method often leads to employee commitment along with smart goals Specific – precise and detailed

Measurable – with criteria for determing progress and success Achievable – attainable
Realistic – Relevant
Time related – Grounded in a time frame
This system is commonly known as 90 degree appraisal system. Performance rating Process at Tata Motors
Exceptional contributor
Significant contributor
Performs consistently and substancly above all exceptions in all areas Performs exceptionally well in all areas.
Achieves a final score of greater than or equal to 115%
Achieves final score between 100-114%
Consistently delivers on stretch targets
Versatile in their area
Little or no supervision
Spots and anticipates problems, implements solutions
Sets examples for others
Sees and exploits opportunities.
Take ownership of own development
Delivers ahead of time
Coaches other
Sees wider impact across business
Demonstrates business initiative
Focuses on what’s good for the business
Self motivated
Herzberg motivation theory

Frederick Herzberg in 1966 came up with a theory that job motivators were closely connected to job And the motivator’s appeared to produce motivated behavior whereas hygiene factors produced dissatisfaction From the way Tata motors conducts its appraisals and gives incentives I can see they firmly believe in some key points Herzberg mentioned in 1966 regarding Achievement, recognition, advancement and growth, giving employees with good appraisal reports promotions and pay rises will motivate employees and lead to extreme job satisfaction Factors leading to extreme dissatisfaction

Hygiene Factors
Factors leading to extreme satisfaction
Company-policy & administration
Relationship with supervisor
Work itself
Work conditions
Relationship with peers
Personal life

Relationship with subordinates



Asda used 360 degree feedbacks for appraisal in this process employees are assessed based personal and professional skill sets, customer service and multitasking skills to see if they can perform multiple tasks under pressure. For slightly senior employees they consider coaching skills to be an essential part of leadership skills. In this process they judge how a person can train the subordinates. Apart from that it also judges the counseling skills of the people that help them in guiding the subordinates in expanding responsibility and capacity and delegate work according to their individual potential. Asda has redesigned 360 degree program to develop the employee performance through the process like Individual bonus, program

The individual bonus factor is used to promote the best employee from their performance. This process aims the organisational objectives through the employee performance. As the Result of this process, the employee survey conducted in ASDA that shows the individual bonus process will be a great success through the high level of employee commitments and improvements through the self-motivation.

In 1911 the engineer Frederick Taylor published one of the earliest motivational theories. According to Taylor´s research, people worked purely for money this approach of paying workers by results was good for the business. The outcome was greater production but gave little opportunity, encouragement or time for employees to think for themselves or be creative in what they did. This limited people’s development and their use within the company

Peer recognition
Peer recognition is the modern performance appraisal process also includes in the 360 degree process. This process is to award and acknowledge an individual for their outstanding performance in the company. This would be could be more non-financial factors based which can motivate employees to improve their output. One such factor may be the desire to serve people; others may be to improve personal skills or achieve promotion. Employees are more motivated if they feel content in their work. This often happens when their employer creates a good working environment where employees feel valued, generally through increased communication and being asked for their opinions. Employee motivation is also likely to be higher if the organisation invests in its staff through training and development. In turn this enhances their knowledge, skills and their sense of job satisfaction. Positive and negative reinforcement plays a vital role in motivation in the work place in the form of 1. Praise for good work

2. Encouragement
3. Constructive criticism
The organisations leader should always communicate the organisations culture, values and beliefs to the group members. Performance feed back
Team leaders should constantly provide feedback to members on: 1. How they are doing in their task and in the team
2. How results are progressing in comparison to plans and standards set out for them Feed back is essential both for motivational and for learning and development to adjust performance and bring it back in line where necessary to the original plan. The manager should motivate his or her team, both individually and collectively so that a productive work place is maintained and developed and at the same time employees derive satisfaction from their jobs. .


Phillip, Harris. Managing the Knowledge Culture. Human Resource Development Press, March 2005.

Johnston, John. Time to Rebuild Human Resources. Business Quarterly. Winter 1996.

Mathis, Robert L., and John H. Jackson. Human Resource Management. Thomson South-Western, 2005

Ulrich, Dave. Delivering Results: A New Mandate for HR Professionals. Harvard
Business School Press, 1998.

Gary, Dessler. Human resource management, Eleventh Edition 2005

Subba, rao. Essentials of HR Management and Industrial Relations, Fourth Edition 2007

Human Resource and Industrial Relations

In many Commonwealth Caribbean Countries since the early 1960’s, there have been attempts at Public Sector Reform by replacing the traditional system of Public Administration with what is commonly known as New Public Management and to this day, the successful implementation of such structural adjustment attempts have evaded most Governments who have dared to try. It was evident, however, that there were differences in the way each country attempted to introduce NPM. Jamaica and Barbados, for example, adhered rigorously to the primary tenets of NPM and Trinidad and Tobago by implementing some measures but not others. Human resource management (HRM) is a term which is now widely used but very loosely defined. It should be defined in such a way as to differentiate it from traditional personnel management and to allow the development of testable hypotheses about its impact. Based on theoretical work in the field of organizational behaviour it is proposed that HRM comprises a set of policies designed to maximize organizational integration, employee commitment, flexibility and quality of work. Within this model, collective industrial relations have, at best, only a minor role.

Despite the apparent attractions of HRM to managements, there is very little evidence of any quality about its impact or that of New Public Management. However, the purpose of this paper is to review and analyze some of the different approaches to Human Resource Management, New Public Management and Industrial Relations initiatives used in Trinidad and Tobago and the extent to which the introduction of a “new” model of management in the public sector has led to a realignment in the roles, responsibilities, and relationships between the policy-makers, the bureaucracy, civil society and Trade Unions in Trinidad and Tobago. In addition, mentioning the work of two (2) well accomplished local minds who have contributed to the study of Public Sector Reform and Industrial Relations. Human Resource Management and Industrial Relations (HRIR) is a multidisciplinary area that investigates all aspects of employment relations in the public and private sector. Modern organisations increasingly regard staff as their most valuable asset and a chief source of competitive advantage. Consequently, they attach great importance to how they manage people. Successful management of employment relations is vital if employees are to be motivated and organisations are to be successful.

The Human resource management (HRM) side encompasses the governance of an organization’s employees and is sometimes referred to simply as human resources (HR). It is the people who work for the organization and human resource management is really employee management with an emphasis on those employees as assets of the business. Areas of HRM oversight include employee recruitment and retention, exit interviews, motivation, assignment selection, labor law compliance, performance reviews, training, professional development, mediation, change management and some extent of Industrial Relations. Industrial relations, which is sometimes called labour-management relations is a professional area of activity and is multidisciplinary, drawing from several academic areas such as law, economics, psychology, sociology and organizational theory. The field of Industrial relations also similarly encompasses the relationships between employers and employees, between employees and other employees, between employers and their unions and advisors, between employees and their unions, between workplaces in the labour market, the environment created by historical, political, legal and social forces, cultural norms as well as the products of the industrial relations systems including industrial action, collective agreements, grievance handling and other problem-solving mechanisms.

Since the 1990’s, there has been the need to transition from the traditional Public Administration (PA) to New Public Management (NPM) and the implementation of NPM ideas are closely related to Human Resources (HR) in public institutions. In order to achieve a consistent shift, a lot of attention has been devoted to the reconstruction of Human Resource Management (HRM) as well as the improvement in the quality of Industrial Relations in Trinidad and Tobago that has become necessary due to the increasing frequency of strikes and other industrial action related to negotiations for new collective agreements. The first of the two (2) Authors who’s work are being mentioned and have made valid contributions to the field of Public Sector Reform is Dr. Ann-Marie Bissessar, a well accomplished Senior Lecturer in the Behavioural Sciences Department, University of the West Indies. Dr. Bissessar in one of her many writings entitled. “The changing nexus of power in the new public sector management of Trinidad and Tobago”, examines the extent to which the introduction of a “new” model of management in the public sector has led to a realignment of the bureaucracy and civil society in Trinidad and Tobago. The document suggests that the introduction of new public management in the public services of Trinidad and Tobago has led to changes in the structure, culture and functioning of the public sector.

Doctor Bissessar argues that while there were tensions between the politician and the administrator during the post-independence period these were, to a large extent, kept in check by the rules and regulations that were part and parcel of the traditional method of administration. The introduction of principles of new public management in 1991 and the stress on greater autonomy and a more “fluid” bureaucratic arrangement, however, have fundamentally altered the power relationships between the politician and the administrator so that the division between the political sphere and the administrative sphere has become increasingly blurred. With respect to the civil society, concludes that with the exception of certain non-governmental organizations, the wider civil society continues to have a minimal input in either policy formulation or execution. Writing along the same lines of thought was Dr. Roodal Moonilal in his one of his articles entitled, “A note on the Human Resource Management and its Diffusion”. Doctor Moonilal, wrote that the notion of HRM is difficult to pin down with one definition and that is has central concerns with issues of quality, productivity, safety and the efficient use of materials.

Other features include sub-contracting, re-deployment of labour, individual contracts and external forms of flexibility and much of the human relations school. He took from the work of Allan Fox, who articulated two categories or frames of reference within which to conceptualise workplace industrial relations. He stated that Fox outlined a unitary frame of reference which stressed the importance of a common objective for the enterprise, with one source of authority and one focus of loyalty, all participants have the same basic aim and all aspire to share in the rewards which will accrue from the attainment of this aim. Conflict within this framework is denied, as Fox states, “the doctrine of common purpose and harmony of interests implies that apparent conflict is either (a) merely frictional, e.g. due to incompatible personalities or “things going wrong”, or (b) caused by faulty “communications”, e.g. “misunderstandings” about aims or methods, or (c) the result of stupidity in the form of failure to grasp the communality of interest, or (d) the work of agitators inciting the supine majority who would otherwise be content” (1966:12). Improving human relations and communications are said to be the appropriate methods to avoid conflict which is seen as the result of poor social relations.

In the unitary frame the presence of trade unions is seen as an “intrusion” into the private, peaceful and unified structure, they compete “illegitimately” for control over, and the loyalty of, the employees and are considered “foreign and alien” to the private affairs of the company. Foxs’ work also identified a “pluralist” frame which accepts that an enterprise contains groups with a variety of different interests, aims and aspirations and it is therefore a coalition of different interests rather than the embodiment of one common goal. In the pluralist enterprise conflict is normal, expected and should not be suppressed but the aim must be to keep it within accepted bounds to prevent the destruction of the enterprise. The article also states that if HRM can be located conceptually within the unitary ideology in the 1960s, it must also be traced to forms of strategic industrial relations adopted during the very period. The emergence of productivity bargaining defined as “an exchange of higher wages for more work, or the same wages in less time, or for greater flexibility and mobility of labour was seen as an earlier attempt by management to give direction to industrial relations.

By the late 1970s external forces placed a focus on HRM in the academic and professional circuits as well as a wide range of features and dramatically contrasting reports on its implementation, impact and implications. The article also stressed the need for Total Quality Management (TQM) and that the historical labour-management distrust and war in industrial relations has no place in Human Resource Management while stating that there are however characteristics of HRM which can threaten the functioning of traditional trade unionism. Dr. Moonilal states that even though some features of HRM can threaten the Union, they can only endanger a Union if it is weak at the shop floor level with a membership which is immobilized and lacking faith in the collective action and skill in representation. The Practitioners of industrial relations were said to be trade union officers, human resource managers, conciliators, mediators, labour department officials and project managers, among others.

The main focus of industrial relations is on people in the workplace, whether such a workplace is a large transnational organization, or a small family firm, whether those employed are on a contract of service or on a contract for service; and whether or not a union is involved at the workplace. Indeed, industrial relations can exist even where collective agreements do not materialize.

Like most islands in the Caribbean, Trinidad and Tobago emerged from colonization in the early 1960s extremely poor and with an economy structured around resource exports. Trinidad and Tobago’s tremendous growth spurt slowed, and the economy entered a ten-year period of sluggish growth and had become urbanized, many belonging to the middle class, a situation unknown in most developing countries. As economic growth slowed, increased demands were voiced for adequate housing, better labor rights, more jobs, improved living and working conditions, more equitable distribution of wealth, and national ownership of resources. Despite these demands, the socioeconomic problems present in Trinidad and Tobago were hardly as acute as in other Caribbean countries; nonetheless, such issues as negative attitudes toward foreign ownership tended to dominate. Led by the charismatic and intellectual Eric Williams since its independence in 1962, citizens of Trinidad and Tobago, like people throughout the region, hoped and expected that political independence would bring not only dignity but economic improvement.

The moderate growth Trinidad and Tobago had been experiencing resulted in some gains for the population. During this time, the islands’ labor force was highly unionized and the industrial relations climate in Trinidad and Tobago was growing tense with the development of the trade union movement. There was an increasing number of strikes and labour disputes which threatened the economic growth and productivity of the country. The Public Service employees were described as being indolent, inefficient and corrupt and it was impossible to discipline anyone or reform the service. So, It was said that the Public Service no longer attracted the best. The Government of the day could no longer delay in taking legislative action to regulate the relations between unions, workers and employers and there was an urgent need for change and the role of government in the economy increased drastically during the 1960s. The year 1962 was actually when the first step in the development of the collective bargaining process in Trinidad and Tobago was taken in November of that year, just three (3) months after the country obtained Independence from the British in 1962.

An agreement was signed by the Secretary to Cabinet at the time on behalf of the Government and by the leadership of the Civil Service Association, the recognized representative for Civil Servants. It established a Civil Service Arbitration Tribunal with the power to decide issues remaining unresolved between the Government and the Association. The Tribunal was designed to function on an “Ad Hoc” basis and under the Whitley Council System, the Colonial Secretary and subsequently, the Secretary to Cabinet discussed matters relating to the Terms and Conditions of employments in the Civil Service with the Executive of the Civil Service Association .However, the right to approve of not approve any agreements reached was reserved to the Governor General after Independence.

The relationship then changed between the Government and the Association and by extension the Civil Service, by bringing an end to the virtually absolute authority previously exercised by the Government. The next phase of Collecting Bargaining was achieved in 1966 when Parliament passed the Civil Service Act as Act No. 29 of 1965. This Act which came into force on August 27, 1966 provided for an effective system of Collective Bargaining referred to in the Act as consultation and Negotiation. The Act established the Personnel Department of Government which was headed by the Chief Personnel Officer and staffed by Civil Servants to; maintain the class of Civil Servants and keep under review the remuneration payable to them, administer the general regulations respecting the Civil Servants, provide for and establish procedures for consultation between the Personnel Department and an any Association in respect to classification of officers, any grievances and Terms and Conditions of Employment of Civil Servants. Those aspects of the employment relationship which could not be left to collective bargaining such as employee health and safety, minimum age of employment and workers’ compensation, retrenchment and severance benefits and maternity leave are set down in legislation which bind the State and private employers.

As a result the Industrial Stabilisation Act, 1965, was enacted. This Act introduced the concept of compulsory arbitration to Trinidad and Tobago by the establishment of the Industrial Court. The main function of this Court was to intervene to prevent and settle industrial disputes between employers and their union represented workers. The Industrial Stabilisation Act was later repealed and replaced by the Industrial Relations Act, 1972, Chapter 88:01 of the Laws of Trinidad and Tobago to provide for the following: free collective bargaining between employer and workers through their representative associations, the development of a peaceful and expeditious procedure for the settlement of disputes, the establishment of the Industrial Court, the recognition and registration of trade unions,  the freedom to be represented by a trade union and the right not to associate, and industrial action which may be taken by both employer and employee. In addition, Provision was made for a Tripartite industrial relations advisory committee which had the responsibility of reviewing the IRA and making recommendations to the Minister of Labour. This way the Act kept up with industrial relations trends.

The general industrial relations policy in Trinidad and Tobago was based on voluntary collective bargaining between employers and workers, via their representative associations, for the settlement of terms and conditions of employment. While the Government has ratified several ILO Conventions, including the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144), these Conventions only become effective when they are legislatively implemented. A 144 Tripartite Committee, comprising all of the social partners, trade unions, employers, and Government, in operation in Trinidad and Tobago with the responsibility of considering and recommending the ratification of ILO Conventions. State employees included all civil servants, teachers and members of the Protective Services (Fire, Police and Prison Services). The employment relationship between the State and its employees was governed generally by legislation, which made provisions for terms and conditions of employment including recruitment, hours of work, leave entitlements, payment of remuneration, pensions, allowances and other benefits.

There was legislation which dealt specifically with each group, such as the Civil Service Act, Chap 23:01 for all civil servants, the Police Service Act, Chap. 15:01, as revised by the Police Service Bill (2003), the Fire Service Act, Chap. 35:50 and the Education Act, Chap 39:01 for teachers. The representative associations of monthly paid State employees may bargain collectively with the Chief Personnel Officer, who is deemed to be the employer of State employees under the IRA. The subject of these negotiations include wage increases, travelling and other allowances and leave entitlements. Other legislations were as follow: The Occupational Safety and Health Act – Sets standards for employee health and safety at the workplace The Workmen’s Compensation Act or the Employment Injury and Disability Benefits Bill – Provides compensation where employees are injured on the job Retrenchment and Severance Benefits Act – Guarantees the payment of severance pay to retrenched employees. The Maternity Protection Act – Provides maternity leave and related benefits to female employees

In December 1991 a new government was elected in Trinidad and Tobago. It soon embarked on an ambitious programme of public sector reform under the overall direction of Gordon Draper as Minister in the Office of the Prime Minister with responsibility for Public Administration and Public Information. The programme drew directly on the NPM paradigm and sought to deliver decentralised management, improved morale and productivity, improved human resource management, improved quality of service and delivery, and improved budgeting and accounting systems. The details of the programme were set out in detail in a publication of the MTSD as A Profile of the Public Service of Trinidad and Tobago (Commonwealth Secretariat 1995). It covered seven areas, three of which were elaborated in some detail. The first was ‘making the most of staff’ through training and development, the establishment of ‘change teams’ within ministries to lead reform, new systems of performance appraisal, and improving work performance by upgrading accommodation and developing an employee assistance programme.

The second focused on ‘making government more efficient’ through the introduction of strategic planning, improving productivity via computerisation, contracting out services, redundancy management, and conducting comprehensive audits, a view also shared by Dr. Bissessar and Dr. Moonilal as mentioned previously. The third area, ‘improving policy analysis and co-ordination’, was to be achieved by creating standing committees of Cabinet in vital areas for national economic development, improving policy presentation in the media, and creating more mechanisms for public consultation on national development. The other areas addressed the quality of public services, partnerships with the private sector and non-government organisations, effective management and the management of finance. It was a comprehensive vision and some of the ideas, mechanisms and procedures set forth in it have since been adopted by other Caribbean countries in their programmes of reform.

In Trinidad and Tobago, however, it ran into difficulties. One was over the powers and responsibilities of the Public Service Commission (PSC). The reforms proposed their reduction and rationalisation, with many of them being exercised by ministries and other public agencies in accordance with the more decentralised management principles of NPM. These were resisted by the PSC, which claimed that the government was unfairly blaming them for failures in the public service. They also questioned the introduction of private sector values into the very different ethos of the public service (Trinidad and Tobago 1995). Another was the proposal to establish human resource units in ministries which would have seriously weakened the Personnel Department. A number of ministries submitted plans but there was much delay in implementation reducing the effectiveness of the reform. Other changes in this area, such as performance appraisal, also met employee resistance, suggesting a strong cultural resistance to change. However, on the one hand, public servants supported change which was beneficial to them “such as training, pay increases, systems of career path planning and enhanced opportunities”.

On the other, they were “afraid of change” which was in any way radical, rather than incremental, since they equated it with “retrenchment and downsizing” which would threaten their jobs and erode their tenure. In such circumstances it is not surprising that many were “openly hostile to suggestions for further reform”. In the face of such opposition, and also a lessening of commitment to micro-manage change by the political leadership, the reform programme slowly ground to a halt. The role of the state in development has come under challenge. The reasons for this include the fiscal crises that hit most developing countries in the 1980s, weakening the ability of the state to fund development programmes; the stabilisation and structural adjustment policies that followed, which imposed reductions in the role and size of government and an increase in the scope and activities of the private sector; and the elaboration, from the beginning of the 1990s, of programmes of ‘good governance’ which aimed to build ‘an effective state’ through matching a state’s role to its capability, which required a sharper focus on fundamentals, and raising state capability by reinvigorating public institutions. In the achievement of these last set of activities sweeping public sector reform was to be encouraged.

The impact of such programmes on the developing world has been the subject of much comment. In the case of small states it raised particular difficulties. The public sector tends to be proportionately bigger and its responsibility for delivering services across a wide range of activities greater than in many larger countries. There were thus serious questions about any proposal to reduce the role of the state. At the same time the need for public sector reform was acknowledged in many small states. The New Public Sector Management (NPSM) is the transfer of business and market principles and management processes from the private sector into the public service itself, or outsourcing government activities to the special purpose companies owned by a government or even to the private sector. There is or has been no empirical evidence that NPSM reforms of the public service or outsourcing have led to productivity increases or public welfare improvements even by private sector standards. This is because there are basic problems implicit in the NPSM model which derive from the fact that the aims of the public service differ from those of the private sector. The private sector is about competition and maximizing profits.

The proponents of NPSM seek to treat the public as though they are consuming private sector goods and services. The use of these business techniques in the delivery of public functions constricts the accomplishment of the basic tenets of the state: democracy, regularity, transparency and due process, which are surely more important than perceived efficiency and speed. With regards to its impact on the Industrial Relations System, traditionally, trade unions in the Caribbean, in negotiating wages and conditions of employment for their members, have resorted to the confrontational approach to settle outstanding issues. In the early days of trade unionism, this approach was extremely successful and was effectively used. It can be said that employers were cognizant of the close relationship that existed between the political leaders in most of the Caribbean islands and the trade union leaders. In some instances, they were one and the same person. As the countries became independent and the impact of adverse economic circumstances began to be felt, employers in both the public sector and private sector responded by resorting to taking tough economic decisions.

Invariably, these decisions focused on the way in which wage increases were negotiated, the level of these increases and the impact which they had on government finances and on profits at the level of the enterprise. As a consequence, collective bargaining took a new turn as trade unions were forced to examine seriously their approach to the preparation of proposals and the presentation of their case. At the same time, alternative approaches to confrontation were examined and in some instances adopted. Social dialogue has been developed by the ILO as one of the alternative approaches recommended to the social partners (governments, employers and trade unions). A number of studies on best practices in selected enterprises in the Caribbean are being developed to demonstrate how effective social dialogue can be in increasing productivity and in keeping with the New Public Management approaches. However, it seems to me that there has been increasingly forceful moves by trade unions in Trinidad and Tobago over the past few years to influence national policies and issues. This may be out of frustrated expectations which originate from political and economic circumstances.

Whatever the reason, it is has begun to have a negative impact on the workers they represent and the wider society. If this situation is not addressed it may very well deteriorate and there will be unintended adverse consequences, including loss of employment opportunities and declining standards of living for those whose interests should be served by the unions. The principal stakeholders must re-examine their contributions to the current state of affairs and resolve to bring about the necessary transformation. We need to start the process of change now and even though it would be time consuming, it must be done. It requires an understanding of the realities of the global economy and the imperative for small economies such as ours to survive and in the longer term, to prosper. Trinidad and Tobago has been in a more fortunate position due to our rich hydrocarbon industry and prices being unexpectedly high. However, this should not be the basis of planning sustainable economic growth and development. The future requires all the social partners to work together, replacing confrontation by cooperation and collaboration. This can only be accomplished if there are suitable multipartite mechanisms established by the government and adhered to by all stakeholders (government, labour, private sector and civil society) whereby meaningful consultation leads to consensus on common objectives and the strategies by which these can be achieved.

There must be a major paradigm shift from dependency on oil and gas revenues to support artificially high employee compensation without regard for productivity. There can be no justification for such irrational approaches to industrial relations. It is time to adopt new methods of resolving issues and to put the issue of pay for performance and productivity on the front burner. The era of ‘might is right’ is a luxury we can no longer afford. We need to usher in a new dispensation of enlightened industrial relations to create a truly developed society. Relations between companies and unions need to shift from being adversarial to one of co-operation and it is critical for both parties, union and management to jointly address the competitive pressures and to work together to harness the skills and the commitment of the workforce. The manufacturing and public sectors in many countries have been the traditional base of support for trade unions. They are now experiencing considerable difficulties in maintaining and increasing membership. It is the hope of many that the Government will begin the process of getting the economy back on its feet. In doing so, there is always the potential for increased agitation by trade unions that could ultimately lead to Industrial action where their demands for double digit wage increases cannot be met by the Government.

Such a situation can also impact the industrial relations environment across the private sector where unionization is concentrated, particularly along the East-West Corridor. There is also, the perception among many in society that our industrial relations climate will become increasingly adversarial. Employers are more weary of unionization today more than ever before given the current approach to negotiations and dispute resolution by certain trade unions. This is most unfortunate since these very employers accept that trade unions have a critical role to play in shaping industrial relations in our country and facilitating an economic recovery. It goes without saying that industrial action in any form and by anyone can lead to huge disruptions, losses in production and ultimately adverse long-term economic consequences if unchecked and properly regulated. The problem is that much of the current legislation and regulation governing industrial action was formulated back in the 1960’s and at a time when there were no legislative safeguards and specified minimum working conditions. On the other hand, the situation is very different today.

Today, most workers enjoy legislative protections in areas ranging from unfair dismissals to minimum wages, maternity leave and severance benefits. It is important to note that in the 1960s trade union membership was more than twice as much as it is now and industrial relations was more about power relations hence the prevalence of adversarial relationships between employers and workers. Today, this too has changed somewhat and great strides have been made to encourage tripartism, social dialogue and labour management co-operation. The movement towards human capital as the major investment for competitive advantage has greatly accelerated. Improved communication of total reward packages through face-to-face meetings, total reward statements and flexible benefits have in most workplaces replaced indirect forms of communication and the significance of basic pay in the overall remuneration package.

The one (1) major area that needed to be addressed was the Industrial Court, which was noted to have served the country will but has not been perfect in its judgments. Many have questioned whether there is a need for the Industrial Court as some of its judgments have been criticized. In a report submitted to Errol McLeod, Minister of Labour, Small and Micro Development Enterprises on July 29, 2013 by the Industrial Relations Advisement Report Committee, it stated twenty-five (25) recommendations for changes needed within the Industrial Relations Sector. The report stated that there is a need to ensure that the Industrial Court is examined and brought up to a more modern constitution, since there have been no direct changes in the Labour Relations Sector for decades.

There are issues with the tenure of Judges, Independence of the Court, Migrant Law, Minimum Wages, Maternity Protection, Work men’s Compensation Ordinance and Retrenchment and Severance Pay. It was also stated that the Collective Bargaining process must be done in a more timely basis. The Industrial Relations Advisement Report Committee also stressed in their extensive report that it was crucial to the Industrial Relations Sector that all twenty-five (25) recommendations made be addressed. With this in mind, it is clear that what our industrial relations system needs now is a modernized legal framework which is relevant to changes in working life, modern human resource management practices and technological advancement. It also needs a proper functioning Industrial Court to preside over all its matters.


While several attempts have also been made in the past to improve the operations of the Public Service of Trinidad and Tobago, the challenges associated with Human Resource Management and its evolution into New Public Management, accountability, information and technology, communication technology, leadership systems and the systems of laws and procedures continue to occur. The culture of the Public Service has been one referred to as too “laid back” and that any diversion from the “status quo” is frowned upon and resisted. There needs to be collaboration between key central agencies to facilitate their acceptance of the fact that change is needed and accept the relevant responsibilities. Governments need to properly formulate and oversee the implementation of comprehensive change management strategies and have a robust legislative analysis of these changes.

Provisions must be created to ensure effective implementation and review, communication and networking within and among various Ministries and Departments. There also needs to be a strengthening of the Civil Service and administrative components of Public Service Reform, providing them with a better frame work and indicator set. More attention must be given to the budget execution phases of Financial Management and sufficient resources must be allocated to ensure that the officers can perform at their best and with a sense of urgency. With all this in mind, it is quite obvious that any kind or nature of Reform is a work in progress.

Labour Law Profile. “National Labour Profile: Trinidad and Tobago Web. 27 July 2011

Trinidad and Tobago Economic Development
Web. August 2011 and Tobago

Bissessar, Ann-Marie. “The changing nexus of power in the New Public Sector Management of Trinidad and Tobago”. Department of Behavioral Sciences, University of the West-Indies
International Journal of Public Sector Management. Web.Vol. 16ISS: No.109

Moonilal, Roodal Dr. “A note on HRM and Its Diffusion”.
June 13, 2009

Sutton, Paul. “Public Sector Reform in Small States”
Cases from the Commonwealth Caribbean. (2009)

“Industrial Relations in Trinidad and Tobago.” Wikipidea Online. Encyclopedia Wikipedea, 2012. Web. 13 Nov. 2013.

Young, Greg. Home page. Web. 13 Nov. 2013

Chamber of Commerce. “The Current Industrial Relations Climate in Trinidad and Tobago” Chamber of Commerce, 2011. Web. 10 Nov 2013

Human Resource Management

I. Introduction
The purpose of this paper is to analyse the characteristics of the Pre-WW II Japanese corporate management from the perspective of the human resource development. The essential framework of the Japanese-style human resource management before WW II constituted differentiated employment by a few ranks; then, different duties and treatments followed accordingly. The initial ranks were determined by the level i.e. social recognition and overall academic achievement of new employees’ schools. Thus, the approach was called “an educational class system”. The graduates of either universities or polytechnics were hired as high-ranking employees with monthly payment, whilst the graduates of technical or commercial schools which were on a level with secondary education filled the posts of employee in semi-staff condition. Their wages were paid either monthly or daily. In the case of workmen with basic education at shop floors, the payment was only made daily.

The gap of prestige and remuneration amongst the different ranks was distinctive 1 . This noticeable correlation between educational background and ex officio standing was developed within a group of large corporations from the beginning of the 20th century. Afterwards, during the 1920s and 30s, it became common in large-scale firms. It has been agreed that, as a key element of corporate employment, the custom of periodically employing new graduates of universities and other educational institutions characterised the growth of the Japanese internal labour market 2 .

There has been a general viewpoint that this “educational class system” was abolished by the Japanese policy of democratisation after WW II; nonetheless, my study points out a new fact that a couple of misapprehension exists there. The first misconception is that it was rather exceptional for a new employee with comparatively weak educational background to be promoted to a prestigious post despite his long commitment and contribution to his firm 3 . The second is that any potential disaccord between the highly ranked and compensated group of university graduates and the lower with basic education was dealt with by the former alongside the unique Japanese code of group behaviour. Especially, the superior engineers with university education were known to take a serious view of operatives’ works at shop floor more than assignments at laboratories; and this attitude was positively appraised in the past studies and discussed as a key success factor 4 .

Yet, the two standpoints seem invalid. The statements of the management and leading engineers of the period prove that the university graduates of engineering did not possess adequate knowledge for production operation. Besides, they did not show any preference to practices at shop floor and instead complained a lot about technical operations at workshops. The Japanese firms necessitated both university-educated engineers with theoretical knowledge and shop floor technicians with operational understanding, when they developed new products on the basis of imported western technologies. My research 5 has investigated the Japanese human resource management of pre-war Japanese corporations, and it presents that the technicians were mostly the graduates of technical schools which were on a level with secondary education and, even in some cases, those with only elementary education. They were, at the beginning, hired as a junior group of workforce i.e. workmen or employee in semi-staff condition,

However, got promoted later to the higher ranks in accordance with their commitment to work and internal training programmes, and consequent appraisals of their technical capability. The Japanese firms of the period required those human resources to improve technological capacity, and facilitated the development by providing them with incentives of promotion to prestigious posts.

II. Higher Technical Education and Appraisal of University-graduated Engineers Throughout the historical context of adopting western industrial technologies, Japan experienced the early disintegration of apprentice system and the swift institutional development of technical educations even before the full-scale industrialisation. Henry Dyer, a graduate of Glasgow University, attempted to integrate theoretical and technical educations, and this resulted in the establishment of a symbolic institution of engineering in 1873, Kobu Daigakko, which was the precursor of the Engineering Department of Tokyo University. Dyer’s ideology of the combined education of technology gained high reputation of “deserving international attention”, and his approach was recognised to bring forth the university-educated Japanese engineers’ common ethos of taking operations at shop floor seriously 6 .

Nevertheless, it is worth noting that a considerable number of managers, engineers, technician, and workmen brought up harsh criticism about the effectuality of the university-level technical education as well as the overall capability of university graduates. Oh’uchi Ai-Sichi, managing director of Mitsubishi Electric and an ex rear admiral of technology of the Japanese Imperial Navy, advised his men in 1938 that they should ease up on the “yet unprofessional” new recruits from universities and stop despising the “rookies of practical engineering at real workshops” since the university programmes were generally concerned more with highbrow engineering theories 7 .

A few causes of the university graduates’ insufficient practical knowledge and incapacity of directing workshop technicians and workmen were discussed: firstly, the drawback of university programmes was derived from the overstress upon note takings at lectures instead of development of the ability of thinking and reading; secondly, university students of engineering tended to dislike practical trainings; and furthermore, the content of the university programmes lacked technical trainings necessary for the actual operations at shop floors 9 .

Concerning the sustainable technological development, Japanese corporations began to necessitate a new group of workforce that could fill the social and professional gap between “highbrow theoreticians” from universities and “practitioners” with relatively insufficient theoretical understandings. The Japanese firms then obtained the essential human resources from their own internal training programmes as well as personnel administration. The following section will introduce the author’s research on the managerial endeavour in the shipbuilding sector, which led the noticeable growth of the Japanese heavy industry.

III. Internal Development of Human Resources and Professional Promotion In the case of the shipbuilding industry, this research analyses the human resources development and personnel administration of the naval arsenal and the Nagasaki dockyard of Mitsubishi Shipbuilding Company. The following three points deserve our attention. Firstly, along with the development of the modern educational institution, they recruited university or polytechnic graduates for the prestigious post of administration, but this was not the only approach of employment; another method of personnel was to train talented workshop technicians and workmen internally and then promote them to the superior positions. Secondly, it is worth denoting that the technological underdevelopment facilitated the industry to build up the personnel policy.

Then, lastly, due to the industrial underdevelopment, the two organisations transferred newly recruited assistant engineers from university or polytechnic to workshops for a while during the initial period of their career development: the intention of this programme was to let them experience the technical practices. The three features are well illuminated in the following historical descriptions.

The naval arsenal in its early phase of 1870 benchmarked a French model of technical school to set up its own, and commenced development of two kinds of human resources: superior technical staffs with education of professional apprehension of theories (similar to the French naval technical officers) and skilled chargehands at shop floors with basic theoretical education. In tandem with the founding of modern technical schools in Japan, only university graduates were recruited for the superior posts of engineering from 1882, and the corporate training programmes for professional engineers was abolished.

As presented in Table 2, the rate of university graduates and polytechnic graduates within the newly recruited junior engineers during the 1920s reached approximately 50 percent. In the first half of the same period, elementary school graduates covered 20 to 30 percent of the population; then in the second half, the ratio was replaced by the graduates of corporate technical schools. The latter group were also elementary school graduates; thus, this implies that they were employed, at the beginning, as wage earners right after their graduation. They acquired technical knowledge from workshop practices, and then learned basic theories through the corporate school: therefore, the personnel administration of hiring those internally developed labourers for the junior posts continued. In addition, and surprisingly, their path of career development was extended to the positions of superior engineers.

Table 3 presents that only 60 percent of the total population of the upper-class engineers was covered by university and polytechnic graduates whereas the graduates of corporate school occupied nearly 20 percent during the 1920s.

The development of the personnel system of promoting a part of talented workmen and workshop technicians to engineering staffs was realised by the fact that the skilled workmen and technicians with sufficient operational knowledge and experience at shop floors played a significant role in the ship design of the time. The blueprints described, at most, ship concepts and hull structures; no information regarding how to build them was provided. Hence, engineering staffs with conceptual understanding of the blueprints, technical capability of choosing proper materials, and managerial experience of directing dockyard workmen and technicians were demanded, and the internally trained workforce from shop floor turned out to be the most capable 11 . The unique scheme of promotion was therefore developed to increase their working incentive.

In contrast, the role of superior engineers with university or polytechnic education was limited to the managerial posts of each sector and preparation of the blueprints of basic design. It was therefore inevitable to let them have workshop experiences.

The largest private industrial leader, Mitsubishi Shipbuilding Company’s Nagasaki dockyard, was not an exception. The employment of university or polytechnic graduates started in 1890, and the recruitment from university increased from the beginning of the 20th century. In 1911, the corporate policy of employing only university graduates for the superior posts was forged. Nonetheless, owing to the identical context of the naval arsenal, the internally educated skilled workforce with affluent shop floor experiences and technical knowledge was constantly on demand. In consequence, the company decided to promote staffs without university education to the superior posts in engineering as well 12 .

Table 5 indicates that, from 1916 to 1926, nearly a half of the new superior technical staffs were the recruitment of workshop technicians without any kind of high education. Some of the new staffs were the graduates of Mitsubishi Kogyo Yobi Gakko (preparatory school of engineering), which was established in 1899 to train operatives for blueprint reading; at least 37 men were included, and their educational background was elementary school only 13 .

Just like the naval arsenal’s personnel scheme, Mitsubishi also developed a programme of transferring superior engineers with university education to the post of apprenticeship at workshops to let them obtain live knowledge and experience. In 1923, the period of apprenticeship was fixed as a half a year, then, extended to a year in 1927 14 .

IV. Concluding Remarks
In the advance of the Japanese heavy industry, two sorts of technical talents were required: a group of workforce for adopting the western technologies, and the other group of skilled engineers, who could direct workmen and workshop technicians in operation and understand engineering theories as well. The former was supplied by university graduates alongside the establishment of higher education in Japan; then, the latter was grown by both the corporate training programmes for talented workmenworkshop technicians (with relatively weak educational background) and the personnel scheme of promoting them to superior posts. The Japanese firms tried out a plan of fully utilising their potentials by promoting them to the most prestigious position of workman i.e. chargehand, but the attempt was unsuccessful since chargehands did know their unsatisfactory social status and even tried to leave the post of chargehand, if possible. It was thus necessary to firstly develop an incentive system of promotion, based upon corporate training programmes, and then integrate it into “the educational class system”. The personnel ways and means enabled management of any kind of potential disaccord or communicational blockade between superior staffs (with university-level education) and workmen and workshop technicians; and the personnel scheme facilitated the efficient internalisation of the imported technologies at shop floors.