A human resource is a person who works within a confined company, takes care of human capital, and hires, trains, and fires to ensure the proper functioning of an organization. To guarantee that the business goals and objectives are met on schedule, an organization must utilize its human resources efficiently (Morgeson, Brannick, and Levine, 2019, pp.16-21). Maintaining employee motivation in this regard is crucial for preventing problems with human resource management. The current project is based on WeSellAnything Limited, a Malaysian retailer that offers a variety of goods, including gadgets, clothing, home appliances, general commodities, bulk purchases and sourcing, trendy goods, and more. Over the past few days, the company recruited a new CEO to save the company from running bankrupt. The company had a five times higher turnover than its competitors, and employee morale significantly decreased.
The project is divided into two major divisions. The first is from the meeting documents where a mind map is drawn, and a flow chart included, the differences between the human resource manager and the personnel management and the recruitment effectiveness. The second part reports on the details of the meeting held, the importance of planning within the human resources docket, and the challenges the human resource managers face.
Task 1: Meeting Documents
Drawing Mind Map
Differentiating Between Human Resource Management and Personnel Management
A group usually cooperates to accomplish a common objective when they are part of an organization. This is achievable only when the personnel’s initiatives or efforts are appropriately managed. Regarding this, it has been determined that employers primarily use two ways to manage employees working on corporate property. The following is a quick explanation of these methods:
Human Resource Management
Human Resource Management may be characterized as a contemporary strategy organizations use to control the people working in the workplace (Jewell, Jewell, and Kaufman, 2020). It strongly emphasizes creating, obtaining, utilizing, and preserving human resources. This strategy tends to blend human competency with physical energy and assets. In other words, HRM may be defined as a policy that works to guarantee that an organization has the proper amount, quality, and quantity of human resources.
The people who work for an organization are referred to as its personnel. Personnel management is a company’s administrative role, ensuring the appropriate employees are present at the appropriate corporate duties or activities. Thus, in plain terms, it may be said that personnel management is the traditional method used to manage staff by stressing adherence to organizational policy and regulation (Garg et al., 2021, p. 12). This all-inclusive method addresses job analysis, recruiting, planning, training, remuneration, and performance evaluation—this method efficiently considers and addresses employee issues while focusing on labor relations management.
Human resource management emphasizes the growth and development of employee talent in an organization, while personnel management concentrates on the monitoring of human resources together with their work output in a quantifiable manner. Employees are treated as maintenance tools and get replaced once they are worn out by personnel management. On the other hand, employees are treated as a very important asset within an organization. An organization’s performance is dependent on the productivity of its employees. In terms of the nature of activity in an organization, Personnel management is done regularly to keep track of personnel, hire and train new employees, and update existing staff records, while human resource management is viewed as a strategic endeavor that integrates with an organization’s strategic management. Personnel management takes the company’s interest, where all the processes that give the company value for money are considered and protected, contrary to the human resources that emphasize only the employee’s interest in an organization. The operational duties of a people manager, such as hiring, training, paying, evaluating, and so on, are the emphasis of personnel management. In contrast, in terms of emphasizing the growth of employee relations, work satisfaction, motivation, welfare, and other factors, human resource management tends to focus on the humanization of management.
Effectiveness of Recruitment and The Techniques Used in The Selection
Recruitment is the process through which the identification, attraction, interview, and staff hires are made. Techniques that can be used in the process of recruiting the employees of WeSellAnything have been analyzed as indicated below:
Promotion: This strategy aims to move individuals from lower-level to higher-level positions, signifying an overall increase in their duties and responsibilities within the firm. Additionally, this method suggests improving pay and benefits (Garg et al., 2021, p. 12). Employees who fail to get promoted feel insecure and become jealous of their fellow, negatively affecting the company’s productivity.
Transfer: This tactic entails transferring people from one role at work to another. Transfer strategy is employed within the walls of WeSellAnything Limited to move qualified workers into worthy employment positions. The transfer technique empowers employees by allowing them to work by utilizing their full potential. Some employees within the organization who fail to secure the chance of transfer get frustrated, thus demotivating them and reducing their productivity.
External agency: This is where the company outsources the recruitment process to another company that will vet the candidates and interview them on behalf of WeSellAnything. New talent and new ideas are introduced into the workplace as a result. Due to the enormous applicant pool that external agencies have access to, there are more opportunities to find qualified people. These agencies lack awareness of the company’s genuine needs, making any hiring done via them potentially ineffective. It is an expensive method of hiring people.
Roles and Responsibilities of Human Resource Manager
Organizations perform well because of their employee’s input in various departments such as marketing, support, sales, finance, and many more. Within an organization, employee welfare is taken care of by the human resource manager. The HR duties and responsibilities of managers are expanding due to the changing nature of the working environment, regulatory obligations, and strategic management of enterprises. The roles of human resource managers are as described below:
Human resource planning
The role of human resource managers is to assist in planning and achieving a company’s goals. These managers identify, prepare and execute the business objectives with the top managers in an entity. HR managers may get a complete awareness of the tasks necessary to support the company’s sustainable growth attributable to their proactive involvement in planning. This, in turn, gives HR professionals more power to match the right people with the right projects and guarantee timely completion.
Performing hiring of the candidates
Getting the right match for the company and hiring is often complex. To fill available positions, modern HR managers do more than publish job requirements in portals. They create strategic plans to entice qualified people to meet the company’s needs. The reputation of a company’s employer brand may also fall within the purview of an HR manager, or at the very least, their direction in branding. Employer branding is essential to convey a company’s culture and work-life balance to prospective workers. The responsibilities of an HR manager will probably overlap with managing the business brand as more and more job seekers look for vacant opportunities on social media.
HR managers must follow a systematic process when selecting the most qualified applicant for the firm, starting with the first screening of prospects on job portals and social media sites like LinkedIn and continuing through the interview process. HR managers create offer letter papers, scan and send them to candidates when they are chosen, and implement onboarding processes. HR managers will try to persuade candidates who abruptly withdraw from consideration to join the company. HR managers will have to go through the hiring procedure again to fill available positions if they continue to refuse.
Training and development
Only half of the task is done when hiring the most acceptable candidates. For the best return on investment, HR managers must invest in their education and training. Depending on their level of expertise, new hires need different kinds of training and development. For instance, managers might need to set up skill-development training programs for new hires to ensure their work complies with industry standards. Managers might only need to teach new hires about business regulations if they already have a few years of experience.
Training is closely related to general HR duties and responsibilities, which include analyzing employee performance records to identify areas that require improvement and organizing training sessions to upskill staff. 93% of workers say they place a high importance on professional growth. By allowing workers to improve their careers and gain new skills, you can promote a positive work environment and boost employee loyalty.
Preserving the organization’s work culture
The human resource manager is responsible for shaping organizational culture. It’s critical to give newly recruited personnel an excellent first impression of the business so they know what to anticipate. Furthermore, performance from an individual is influenced by their work setting. Thus, one must foster a particular degree of comfort to eliminate any stressful environment that can impact employees’ performance.
Employees in an organization are from different backgrounds therefore, there is a likeliness of the occurrence of conflict. Human resource manager is required to bring solutions to any conflict occurring in an organization. Before a conclusion is made, the manager has to give both sides and opportunity to express themselves (Kraev, V.M. and Tikhonov, 2019, p. 1185). Human resource manager is mandated to maintain and fire an employee of gross misconduct.
Offer incentives and rewards
Finally, H.R. managers must recognize staff members for their success and other qualities like timeliness. The main advantage of rewarding employees is that it motivates other staff members to do well to get rewards (Faruq, Sujanto, and Abdullah, 2021, p 20-33). Rewards and incentives can take any form, including gift cards, notes of thanks and recognition, promotions, and bonuses. A strong team must be built and managed by HR managers. The HR manager is responsible for handling activities, including human resource planning, job analysis, recruiting the best personnel, and settling problems within the company, as indicated in figure 2 below.
Explain Mind Map and Flow Chart
The mind map is an illustration of human resource management functions. It also involves the stages of human resource planning. They include recruitment and selection of personnel, planning, human resource activities regarding the performance, paying the personnel, coordinating human resource strategy and strategies of the organization, and setting goals, roles, and motivating factors. The mind map also shows how the functions of human resource management are carried out.
The flowchart illustrates the routine of employees within the confines of the company. It also shows the functions of human resource managers in every organizational aspect. It also shows the process of hiring a new employee or promoting an old one. When there is an opening or a vacancy in any organization, human resource management recruits employees from outside or inside the organization. It is their job to ensure that they recruit an employee best suited to the job. When the recruitment is over, they start the selection procedure. It gathers information about the candidates to decide who to hire (Faruq, Sujanto, and Abdullah, 2021, p 20-33). The selection procedure involves an in-person interview and background check of the candidates. In the case of the promotion of an old employee, the human resource manager coordinates an induction session.
After the induction, new goals are set for them. Their performance is evaluated by their ability to meet the set goals. The next stage is training, which has numerous evaluations to help the human resource managers to evaluate the training outcomes. The performance of the employee is then monitored according to their training outcomes. They are then rewarded by being paid for the work they have done according to their performance.
Importance of Human Resource Planning
Human resource planning is important in essence that it enables businesses to get qualified and skilled personnel to employ. Managers are able to train and develop the skills required for better workforce of employees. This correlation is represented in the mind map. Human resources is affected by numerous legal issues within an organization. Some of the issues that are: Harassments, Discrimination, maternity law, recruitment challenges and Confidentiality. The discrimination issue is based on gender, sexual orientation, race and religion. Employer should ensure that there is no discrimination based on the marital affairs or disability in the workplace. Human Resources faces harassment issues in an organization where one party plays superior than the other and using their powers to look down upon others at the workplace. There should be a law that condemns such acts in an organization governed by codes of ethics. In human resources compliance, these issues should be addressed with close interest by the employer to create a smooth and seamless business-like environment for better productivity.
Critically Appraise Methods Organizations Use to Monitor Employee Performance
There are various methods and their importance as to why an organization needs to monitor the performance of the employees. It helps them to identify the areas in which the employees are not performing well or where they should be modified. It depends on the skills that the respective resource manager acquires to monitor the performance of their employees. Without monitoring the performance, no relevant modifications or changes need to be brought into the organization (Hamilton, and Sodeman, 2020, p. 35). The following are ways in which an organization can monitor the performance of the employees:
The organization can monitor the performance of a few employees at a time. Selective control helps human resource managers clearly describe each employee’s role in the company. It brings a clear line of what the employees are expected to do in their job description (Kraev, V.M. and Tikhonov, 2019, p. 1185). The method assists human resource managers in evaluating the performance of a larger company division by observing a limited number of employees. It is based on the fact that one employee represents the others in the department. The employee will be able to bring out issues affecting the department. Selective control assists human resource managers in properly optimizing the employees’ performance. Since human resource managers have direct supervision of their performance, selective control can assist in the monitoring of employee performance.
The manager could devise a weekly or daily plan to monitor the performance of their employees. Selective control technique assists the managers evaluate whether the employees can meet their weekly or daily expectations. They also keep the growth margin of the employees, which assists in making the appropriate decision for them. The employees are given the weekly plan at the beginning of the week to plan their activities. Employees’ goals, objectives, and expectations that are set by their human resource manager cab ne determined through selective control.
Evaluate the Process of Job Evaluation and Other Factors Determining Pay
Job evaluation is the systematic process of assessing the value of each task concerning other activities in the organization. Evaluation is intended to provide a rational, orderly hierarchy of jobs based on the worth to the company by analyzing the difficulty of the work performed and the importance of the work to the organization. It improves the relativity of different jobs in the same company. This kind of evaluation is important in the company because it helps them to establish an equal and balanced pay system (Macke, and Genari, 2019, pp 806-805). Wage inequalities are eliminated in an organization through job evaluation. It helps to maintain the relationship between employees and management. The evaluation is systematic because it ensures an organization’s fair, consistent, orderly, and equitable pay system. The two methods which can be used when performing an evaluation of a job are analytical and non-analytical.
Analytical methods include:
- Point-ranking: It includes selecting job factors, forming degrees for every factor, and assigning points to each degree. Each job is determined based on its factors and not considering the job as a whole.
- The factor comparison method: Involves the selection of all five factors, which include mental requirements, skill requirements, physical exertion, responsibility, and job conditions. Since these factors are considered constant for all the jobs, each factor is ranked with their jobs. The advantage of this method is that jobs are evaluated with the same set of factors.
Non-analytical methods include:
- The ranking method: This is where the management assesses a job’s worth according to its title and contents. The job is not broken down into elements or factors. It is difficult because other jobs are not broken down.
- Job grading method: Grades have decided upon a certain job then the fact corresponding to the grades are determined. The factors are then collected and matched with the grades that have been established.
There are other factors determining the pay levels of employees in an organization. There are entry criteria where the employees’ skills are determined and paid accordingly. The performance of the employees is then determined to form the basis of the salary all the bonuses given to them. The position of the employee is another key determinant of pay (Kraev, V.M. and Tikhonov, 2019, p. 1185). In many organizations, it is routine to raise an employee’s compensation when they are promoted to a managerial level. The company chooses to reward employees for transitioning from employees to leaders or from managers to executive positions (Macke, and Genari, 2019, pp 806-805). Many companies align their skills and the roles assigned to determine the pay given to them. It depends on whether the employee is carrying out their role efficiently. This method rewards the performers at a certain level and allows the employees to deliver their work according to expectations. If the firm is huge, its profit margins are smooth.
Using the Flowchart, Explain Two Performance Management and Reward Systems and Their Impact on Motivation
An organization’s performance management and reward systems positively affect employees’ motivation levels. By focusing on employees’ development and aligning company goals with team and individual goals, managers can create a work environment that enables both employees and companies to thrive. Reward systems make employees feel happy and motivated. As a result, their productivity and efficiency increase, which is great for business. Some of the performance management and reward system are described below:
Employees are rated based on specific parameters such as problem-solving skills, teamwork, communication, creativity, innovation, and judgments. Employee’s performances ranked with others in the group based on the highest to the lowest performer. It is like creating a competitive nature in the organization to encourage employees to perform better.
It emphasizes more on the performance of the employees. The organization writes the employees based on their performance results (Hamilton, and Sodeman, 2020, p. 26). It is done by the management, who will follow up to see whether the employees meet the set objectives of a task. Before their performance is evaluated, the management gives them a chance to air out the challenges they face to achieve the results.
It is a system of reward management in that an organization uses gifts, awards, trips, prices, and other forms of merit rewards that recognize employees for their special contributions. This is a way of rewarding employees who deserve it and work to their full potential.
Financial and Non-Financial Reward System
A financial reward system refers to all the incentives given to an employee with monetary value. It involves bonuses and compensations, whether monthly, quarterly, or annually. Money has been seen as the only motivating factor that raises motivation and ensures the loyalty and commitment of an employee to an organization. Many organizations use the money to ensure that they build their employees’ trust in the organization.
Non-financial rewards systems could include certification and recognition to the employees to produce high levels of motivation and productivity in organizations. Many organizations use the job enrichment technique as a non-financial reward system (Morgeson, Brannick, and Levine, 2019, pp. 16-21). It involves giving workers more complex tasks which are more challenging but interesting to work on. Other organizations allow workers to work together on a task rather than individually, which is a motivating factor in terms of productivity in an organization.
Faruq, U., Sujanto, B. and Abdullah, T., 2021. The Influence of Work Team, Trust in Superiors and Achievement Motiva-tion on Organizational Commitment of UIN Sultan Syarif Kasim Riau Lecturers. American Journal of Multidiscipli-nary Research & Development (AJMRD), 3(05), pp.20-33.
Garg, S., Sinha, S., Kar, A.K. and Mani, M., 2021. A review of machine learning applications in human resource management. International Journal of Productivity and Performance Management. Web.
Hamilton, R.H. and Sodeman, W.A., 2020. The questions we ask: Opportunities and challenges for using big data analytics to strategically manage human capital resources. Business Horizons, 63(1), pp.85-95. Web.
Macke, J. and Genari, D., 2019. Systematic literature review on sustainable human resource management. Journal of cleaner production, 208, pp.806-815. Web.
Kraev, V.M. and Tikhonov, A.I., 2019. Risk management in human resource management. TEM Journal, 8(4), p.1185.
Morgeson, F.P., Brannick, M.T. and Levine, E.L., 2019. Job and work analysis: Methods, research, and applications for human resource management. Sage Publications.