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MANAGING HUMAN RESOURCE

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Executive Summary iii

Task 1: Different Perspective of Human Resource Management 4

1.1 Guest’s Model of HRM 4

1.2 Difference between Story’s Definition of HRM, Personnel and IR Practices 5

1.3 Adapting Strategic Approaches to HRM and its Impact on Line Managers 6

Task 2: Ways of Developing Flexibility within workplace 7

2.1 Atkinson’s Model 7

2.2 Types of Flexibility that enhances Productivity 8

2.3 Employee and Employer’s perspective of Flexible Working Practices 9

2.4 Impact of Changes in Flexible Working Practices 10

Task 3 Impact of Equal Opportunities in Workplace 11

3.1 Different Forms of Discrimination in Workplace 11

3.2 Practical Implication of Equal Opportunities Legislation 11

3.3. Difference between Managing Equal Opportunities and Managing Diversity 12

Task 4: Approaches to Human Resource Practice 13

4.1 Different Methods of Performance Management 13

4.2 Approaches of Managing Employee Welfare 14

4.3 Implication of Health and Safety Legislation on Human Resources Practices 15

4.4 Impact of Topical Issues on HR Practices 15

Conclusion 16

References 17

Table of Content

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Executive Summary

Human Resource Management (HRM) is the process of attracting, developing and maintaining a

talented and energetic workforce to support organisational mission, objectives and strategies. It

isa distinctive approach to employment management which seeks to achieve competitive

advantage through the strategic deployment of a highly committed and capable workforce, using

an integrated array of cultural, structural and personnel techniques. Human Resources

Management trains and motivates the employees by communicating ethical policies and socially

responsible behavior to them. In doing so, it plays a significant role in clarifying the

organization's problems and providing solutions, while making employees working more

efficiently. Modern organizations can survive in the dynamic, competitive environment of today

only if they capitalize on the full potential of each employee. Facts and figures are the

quantitative elements of successful management, yet the qualitative aspects are those that

actually make or break an organization. Successful companies are those that consider their

human capital as their most important asset.

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1.1 Guest’s Model of HRM

A second ‘soft’ HRM model came from David Guest in 1987. Guest argued that HRM in theUK

should be about designing policies and practices to achieve four main outcomes:

Strategic Integration

High Employee Commitment to the Organization

High Workforce Flexibility and Adaptability

High Quality Workforce

Guest’s Model is quite similar to Harvard. Both Models emphasizes on the needs of the

employees for successfully running an organization. Guest indicated the progress towards HRM

in UK is slow and ‘Crab-Like”. These four outcomes will lead to the following desirable

organizational outcomes:

High Job Performance

Stronger Problem Solving

Greater change consistent with strategic goals and improved cost effectiveness

Reducing employee turnover, absences and grievances

Unilever is one of the Multinational Companies that operate business with the vision to decouple

growth from environmental impact, while at the same time increasing positive social impact.

Unilever’s HR policies incorporate Guest’s model of HRM by complying it with the firm’s main

policy and mission and creating, ensuring such working conditions where the employees are

motivated to upgrade the performances that conforms to the core business value and objectives.

Task 1: Different Perspective of Human Resource Management

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1.2 Difference between Story’s Definition of HRM, Personnel and IR Practices

HRM Personal Management Industrial Relations

Human resource management

is a distinctive approach to

employment management

which seeks to obtain

competitive advantage through

the strategic development of a

highly committed and skilled

work force, using on array of

culture, structure and

personnel technique.”

(Armstrong M, 1999)

Personnel Management is that

part of management concerned

with people at work and with

their relationships within a

firm. (Rea, 1972).

Industrial relation is the

correlation and co-operation

between the management and

the workforces.

It focuses on development and

application of different HR

practices to achieve its

organizational goals by using

the available resources like

staff, employees, customers,

suppliers (Guest D.E, 1987).

It focuses on increasing the

efficiency in Personal Job

along with increasing

performance (Guest, D.E,

1999).

It focuses on building and

maintaining cooperation

employee, management and

government.

Unilever incorporates Experts,

Customers, their suppliers and

employees in their Sustainable

Living Plan

Unilever undertakes many

training, guidelines,

experiences to increase the

productivity of their

employees

It is a broader concept.

Unilever always focuses to

maintain a good cooperation

between the labor union and

the management.

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1.3 Adapting Strategic Approaches to HRM and its Impact on Line Managers

Humanresource management is an ongoing process of selecting, recruiting, training

anddevelopment of employee in the organization. HR strategy will express the intentions of

theenterprise about how it should manage its human resources. These intentions provide thebasis

for plans, developments and programs for managing change. Unilever applies variousHR

policies to ensure the performance and enhance the productivity of the employees. Thefollowing

strategies may help the Line Managers in Unilever to cope with its organizationalgoals.

Reward Strategy:

A reward strategy will be concerned with:

Developing a high performance-oriented culture.

Underpinning the organization’s values, especially those relating to excellence,

innovation, performance, teamwork and quality

Conveying a message to prospective high-caliber employees that the organization

will satisfy their reward expectations

Linking reward policies, systems and procedures to the key business and human

resource strategies for innovation, growth, development and the pursuit of excellence

Indicating to existing employees what types of behavior will be rewarded and how

this will take place, thus increasing motivation and commitment and improving

performance

Human Resource Development and Training Strategy:

A Human Resource development strategy is concerned with the long-term programsneeded by an

organization to improve operational performance at all levels, inaccordance with the additional

demands which the business strategy will place on peoplein the future. The strategy will provide

continuous development processes linked closelywith the programs designed for the organization

as a whole to implement its product,technology and market development strategies (Dessler C,

2006).

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Motivation Strategy

Motivation Strategy will refer to the performance management and reward systems, andin

particular to the type and scale of financial incentives which are to be provided. It willalso be

concerned with other processes which should yield favorable attitudes, includingjob design,

participation, joint objective setting, career development, and any otherprocesses relating to the

individual’s need to achieve and maintain a sense of personalworth and importance.

2.1 Atkinson’s Model

The concept of a “flexible firm” proposed by John Atkinson in 1985 recognizes that

organizations will require enhanced flexibility to meet ever evolving market and competitive

pressures. In other words it is a concept of simply integrating flexible conditions into the

administration an organization’s functional operations, in order to meet the demands of a highly

competitive market and attain its strategic aims and goals (Hoque, K. and M. Noon, 2001).

Flexibility is a calculated risk utilized by organizations to survive and gain strategic competitive

advantage. Atkinson’s model for labour flexibility included “core” workers and “peripheral”

workers.

Core Workforce: it refers to the full time employees who serve their organization with

functional flexibility. They are highly skilled and their expertise is highly useful in the period of

emerging technological product or market changes

Peripheral Workforce: It normally refers to those workforces who work part-time or works

temporary or contractual basis in an organization.

Task 2: Ways of Developing Flexibility within workplace

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2.2 Types of Flexibility that enhances Productivity

The ability of an organisation to respond to environmental and business pressures by adapting

the size, composition, cost and responsiveness of human resources is known as flexibility (Legge

K, 1989). According to Atkinson (1984) four types of flexibility can be used for bringing

equilibrium in Unilever workforce.

A. Functional Flexibility

It relies on extensive training and thus it is likely to be pursued when there is no longer a

stable relationship between employees and the organization which allows employees to

combine skills and competencies in order to increase their mobility across the various

channels of production

B. Numerical Flexibility

It refers to the possibility of the organization to adapt the number of its labor on a short-

notice, increasing or decreasing it as it sees fit Varying employee numbers can be

achieved by hiring temporary agency workers and employing people on fixed-term

contracts.

C. Temporal Flexibility

It refers to shifting working hours to meet production demands. This can include things

such as working overtime and spreading the working hours unevenly over a period of

time depending on fluctuations in production

D. Financial Flexibility

Numerical flexibility allows management to match the need for workers with the number

employed and this can be achieved through the use of a variety of short term employment

arrangements that include: short term contracts, part-time employment, job sharing, and

self-employment.

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2.3 Employee and Employer’s perspective of Flexible Working Practices

Workplace Flexibility 2010 defines a “flexible work arrangement” (FWA) as any one of a

spectrum of work structures that alters the time and/or place that work gets done on a regular

basis (Armstrong M ,1999).

A flexible work arrangement includes:

Flexibility in the schedulingof hours worked, such as alternative work schedulesand

arrangements regarding shift and break schedules

Flexibility in the amountof hours worked, such as part time work and job shares; and

Flexibility in the placeof work, such as working at home or at a satellite location.

Some of the recent practices of workforce flexibility from both the employee and employer

perspective are given below:

Flex time: Flex time is an arrangement where employees work a full day but they can vary their

working hours. These arrangements are usually established with specific guidelines so that a

"core" working day exists.

Compressed Workweeks:Workers must work 40 hours per week. Workers work full time hours

in less than the traditional 5-day workweek by increasing daily hours worked.

Shift Arrangement: Workers who are assigned shifts by their employers enter into

arrangements with their employers giving them more flexibility regarding the shifts they are

assigned.

Part-Time Work: Workers who usually work less than 35 hours per week.

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Job Share: Job sharing occurs when two or more people share one or more positions or set of

duties. It should be clear before starting how these arrangements affect pay, benefits, and

holidays.

Telework/Homework: Workers work remotely from their own homes, using a

telecommunications connection to the workplace if necessary.

2.4 Impact of Changes in Flexible Working Practices

One of the challenges of implementing flexible work arrangements is proving that they make a

positive impact on the business. Perhaps the single most cited reason for introducing a flexible

work environment is employee retention. Indeed, many businesses contend that the recent trend

toward flextime and other programs has made it necessary for them to introduce their own

programs or risk losing valued employees

Flexible working practice actually has a positive impact on the productivity of employees.

Employees who are better able to attend to family needs through flex-time are more likely to be

contented and productive, while good employees who telecommute may get even more work

done if they are freed up from office interruptions.

Business can also use flexible programs to address institutional problems. For instance, a small-

or mid-sized business that is crammed into a small facility or office may want to explore

telecommuting programs in order to relieve the situation without resorting to an expensive

relocation or expansion.

Flexibility brings can take different forms like wage flexibility, geographical flexibility and

contractual flexibility that allows employees to enhance their productivity along with ensuring

required customized facilities that directs the organizations to achieve its goal.

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3.1 Different Forms of Discrimination in Workplace

According to International Labor Organization ( ILO, 2012) there are different forms of

discrimination in workplace which take in the forms of age, gender, race, religion that creates

inequality. As a result workforce become demotivated and inefficient this hampers the overall

productivity of the organizations.

Age based discrimination:Age discrimination involves treating someone (an applicant or

employee) less favorably because of his age. An employment policy or practice that applies to

everyone, regardless of age, can be illegal if it has a negative impact on applicants or employees

age 40 or older and is not based on a Reasonable Factor Other than Age (RFOA).

Discrimination in Compensation: In order to provide productive working environment, HR

policies should design ensuring there is no discrimination in compensation among man and

woman, senior or junior.

Religion related discrimination: Religious discrimination involves treating a person (an

applicant or employee) unfavorably because of his or her religious beliefs. An employee cannot

be forced to participate (or not participate) in a religious activity as a condition of employment.

3.2 Practical Implication of Equal Opportunities Legislation

In Modern time every organization is trying to provide equal opportunities to each employee to

in order to reduce discrimination so that organizations can meet its desired goal. This will

motivate the employees; hence result in increased performance which will match the job

parameter according to the HR policy. Organizations can provide equal opportunity by

conducting the following tasks.

Task 3: Impact of Equal Opportunities in Workplace

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Implement the organization's EEO and harassment policies and make sure that the

policies are clear to all staff

encourage an environment in which all employees will feel comfortable

Equal salary, promotional opportunities

make sure that all staff are aware of the existence of the grievance procedures and that

they are confidential

3.3. Difference between Managing Equal Opportunities and Managing Diversity

Diversity management refers to the voluntary organizational actions that are designed to create

greater inclusion of employees from various backgrounds into the formal and informal

organizational structures through deliberate Policies and programs (Colling T,1995)

Factors Managing Equal Opportunities Managing Diversities

Driven by External factors Internal factors

Rests on Rests on moral and legal

arguments

Rests on Business Case

Perceive Equal Opportunities as a cost Managing Diversity as

investment

Approach Structure Operational Strategic

Concentration on Process Outcomes

Emphasizes on Group discrimination Individual differences

Supported by Narrow positive Knowledge Base Wider Pluralistic Knowledge

base

Suitable for Assimilation Advocate Mainstream adaption advocate

Initiatives Group Initiatives Individual Initiatives

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4.1 Different Methods of Performance Management

Performance management is an integral part of the workplace as it provides a platform for

supervisors and managers to measure employee performance and determine whether employees

are meeting the company's expectations (Story J, 1995). The method of performance

measurement varies according to the work environment, type of business and, to some extent, the

employee's occupation

360-Degree Feedback: It is a technique which is systematic collection of performance data on

an individual group, derived from a number of stakeholders like immediate supervisors, team

members, customers, peers and self.

Physiological Appraisal:This appraisal method evaluates the employees intellect, emotional

stability, analytical skills and other psychological traits. This method makes it easy for the

manager in placing the employees in appropriate teams

Management By Objective(MBO): This is an objective type of evaluation which falls under

modern approach of performance appraisal. In MBO method of performance appraisal, manager

and the employee agree upon specific and obtainable goals with a set deadline. With this method,

the appraiser can define success and failure easily.

Assessment Centers: An assessment center is a central location where managers may come

together to have their participation in job related exercises evaluated by trained observers.

Task 4: Approaches to Human Resource Practice

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4.2 Approaches of Managing Employee Welfare

Organizations provide welfare facilities to their employees to keep their motivation levels high.

Labor welfare entails all those activities of employer which are directed towards providing the

employees with certain facilities and services in addition to wages or salaries.

Labor welfare has the following objectives:

To provide better life and health to the workers

To make the workers happy and satisfied

To relieve workers from industrial fatigue and to improve intellectual, cultural and

material conditions of living of the workers

The employee welfare schemes can be classified into two categories-

a. Statutory Welfare Schemes

This Scheme includes facilities like Drinking Water, Facilities for sitting, First aid

appliances, Latrines and Urinals, Canteen facilities, Spittoons, Lighting, Washing places,

Rest rooms

b. Non-Statutory Welfare Schemes

It includes Personal Health Care, Flexi-time, Employee Assistance Programs, Harassment

Policy, Maternity & Adoption Leave, Medi-claim Insurance Scheme, Employee Referral

Scheme

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4.3 Implication of Health and Safety Legislation on Human Resources Practices

Occupational health and safety legislation regulates the standards of workplace health and safety

with the aim to prevent workplace accidents, injuries and diseases, and outlines consequences for

breaches of those standards (Hayton, J.C, 2005). It details responsibilities of employers,

supervisors, and employees. Generally, the legislation requires that the employer do everything

they can reasonably do to protect the health and safety of their employees in the workplace.

The Health and Safety at Work Act 1974(abbreviated to "HSWA 1974", "HASWA" or

"HASAWA") is an Act of the Parliament of the United Kingdom that as of 2011 defines the

fundamental structure and authority for the encouragement, regulation and enforcement of

workplace health, safety and welfare within the United Kingdom.

4.4 Impact of Topical Issues on HR Practices

With changing retirement ages and an aging workforce, interest is growing on the potential

contribution of relevant bundles of HR practices in eliciting well-being and performance among

aging workers. When employers try to enhance the productivity, recruit employees effectively,

arrange training session and try to remove discrimination, HR topical issues arises.

HR issues commonly experienced by employers include

Establishing Productivity

Recruiting Employees

Arranging and Carrying out Training

Preventing Discrimination

Resolving Problems

Keeping Workers safe

Establishing and Distributing Benefits

Encouraging and Maintaining Diversity

Handling Outsourcing

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Human Resources Management (HRM) is the strategic management of the employees, who

individually and collectively contribute to the achievement of the strategic objectives of the

organization. New challenges arise even now for the organization, and it is certain that new

challenges will never cease to emerge. Therefore, the use of proper Human Resources techniques

is a really powerful way for organizations to overcome these challenges, and to improve not only

their quantitative goals but also their organizational culture, and their qualitative, cognitive

aspects.

Conclusion

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