Assignment

BTEC Level Higher National Diploma in Business

Qualification Unit number and title

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Date issued Completion date Submitted on Validity

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Table of Contents

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LO1 Explain the purpose and scope of Human Resource Management in terms of resourcing an
organization with talent and skills appropriate to fulfill business objectives..................................5
1.0 Human Resource management:.................................................................................................5
1.1 Modals of HRM:........................................................................................................................5
1.3 Best Fit’ approach vs ‘Best Practice’.........................................................................................7
1.3.1 Best fit model:.........................................................................................................................7
1.3.2 Best practice model:...............................................................................................................7
1.4 Work-force planning:.................................................................................................................7
1.5 Benefits of Workforce planning:...............................................................................................8
1.6 Types of labor market:...............................................................................................................8
1.6.1 Labor market types:................................................................................................................8
1.6.2 The open external labor market:.............................................................................................8
1.6.3 The occupational labor markets:.............................................................................................9
1.6.4 The internal labor markets:.....................................................................................................9
1.7 Retaining Employees and Minimizing Turnover:...................................................................10
1.7.1 Manage Employee Turnover:......................................................................................................10
1.7.2 Cost effective:................................................................................................................................10
1.7.3 Enhance Recruitment:...................................................................................................................10
1.8 PESTLE Analysis on an HR department or other internal labor market.................................11
1.9 How to analyze the turnover, stability and retention:..............................................................12
1.10 The difference between turnover and retention:....................................................................12
1.10.1Measuring turnover and retention:.......................................................................................12
1.10.2 Measure staff turnover:.......................................................................................................13
1.11 The impact of legal and regulatory frameworks to improve efficiency of HR:.....................13
1.12.1 Federal law...................................................................................................................................15
1.12.2 State Laws....................................................................................................................................15
1.13 Internal and external recruitment:..........................................................................................15
1.14 Methods of Job Analysis:.......................................................................................................16
1.15 Methods of selection and induction of a new employee:......................................................17
1.16 Importance of induction of a new employee:........................................................................18

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LO2 Evaluate the effectiveness of the key elements of Human Resource Management in an
organization...................................................................................................................................19
2.1 Differentiate between training and development:....................................................................19
2.2 Key Differences Between Training and Development:...........................................................19
2.3 Identifying training needs:.......................................................................................................20
2.4 Extrinsic and intrinsic rewards:...............................................................................................21
2.5 Motivation in HRM:................................................................................................................22
2.6 Job-Design techniques:............................................................................................................22
2.7 Types of flexibility:.................................................................................................................23
2.8 Benefits of flexible working practices:....................................................................................24
2.9 Design a reward program:.......................................................................................................25
LO3 Analyze internal and external factors that affect Human Resource Management decision-
making, including employment legislation....................................................................................26
3.1 Maintaining good relations with employees:...........................................................................26
3.2 Employment law:.....................................................................................................................27
3.3 Equal Opportunity:...........................................................................................................................27
3.4 Pay Equity:........................................................................................................................................27
3.6 Concept of trade union........................................................................................................28
3.6.1 History of trade union:....................................................................................................28
3.7.1 The impact of trade Union on business Activates:.........................................................28
3.8 HR practices to avoid conflict in Trade union:...................................................................29
LO4: Apply HRM practices in a work-related context.................................................................30
4.2 Success of any training and development activity:..................................................................31
4.3 Impact of technology on improving the recruitment:..............................................................31
4.6 Recruitment on social networks:.............................................................................................32
4.7 Impact of technology on social media:....................................................................................32
4.8 Designing, placing job advertisements and selection process (Best practices):......................32
Bibliography..................................................................................................................................33

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LO1 Explain the purpose and scope of Human Resource Management in terms of
resourcing an organization with talent and skills appropriate to fulfill business objectives.

Answer:

1.0 Human Resource management:

By definition, Human Resource Management can be described as “It is an approach and strategy
adopted for the management of any organization’s most valuable assets”. The Employees
working in that organization collectively work for achieving the objectives and all the tasks.
1.1.1 Recruitment:
There is also a responsibility of hiring new candidates and employees for the organization.
Therefore, the recruiters who are working in their houses are opposed to the company and they
are to provide the services to hire the new candidates. They also play a key role in developing the
workforce for the organization. Their job is to advertise the vacancies, coordinate with managers
to hire new employees and conduct interviews for selecting new candidates.
1.1.2 Employee Relations:
In the organization there is a separate manager for dealing the contract issues, agreements,
rendering interpretations which are known to be the labor relations. In any organization and work
place the employees and labor are connected and have to work together. Therefore, an HR
specialist works or may be two HR specialist work for their management.

1.1 Modals of HRM:

The first HRM concept was made by the Michigan school in 1984. They said that the HR systems
and organization structure should be managed in a congruent manner with the
organizational strategy. The other people who believed in the Human Resource
Management included Harvard school of Beer et al (1984), they developed the ‘Harvard
Framework’. The Harvard school illustrated two features to and modeled the HR:
1) The line managers have to accept more responsibilities.
2) To make the mutual reinforcement bond strong, personnel has to step up and set the
policies for personal activities.

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 The Harvard Framework for Human Resource Management
Figure 1
We just discussed the Harvard model so far which is one type of HRM. The other type of HRM
is The Michigan/Matching Model. This model was founded by Fombrun Tichy and Devanna in
1984 at Michigan Business school. They named it model of HRM. This model shows strong
bonding between the HR strategy and the business strategy. This model shows the importance of
the HR strategy and says that it has to be highly calculative in terms of quantity of the human
resources. Whereas, the business strategy has to take the central stage. This is all done to achieve
an organizational goal. The business strategy should achieve minimum labor cost.

Figure 2: Business strategy

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1.3 Best Fit’ approach vs ‘Best Practice’

1.3.1 Best fit model:

The “Best Fit” model emphasizes that HR strategies and organizational strategies need to be
coordinated. In other words, it is important to ensure that the human resources strategy is applied
to different environments, as well as to cultural and operational processes. Therefore, according
to Armstrong, different human resource strategies need to focus on the specific needs of the
organization and its employees. Management should make strategic changes based on the
potential applications and lessons learned from experience to make the whole organization more
appropriate. It can be seen that cultural, structural, technical, behavioral and work process
insights are considered as criteria for analyzing the needs of the enterprise. In addition, this
model has certain limitations. [ CITATION Box \l 1033 ] have criticized this model for limiting this
strategy and subjecting it to multiple emergencies alternately. In addition, as the human
resources management system could not be fully adjusted, it was difficult to cope with the new
challenges. In addition, his weaknesses are focused on the difficulties in finding emergencies and
the difficulty of demonstrating their interrelationships. [ CITATION Arm \l 1033 ]
1.3.2 Best practice model:
The best practice model claims to have some human resource activities that generally support the
company's competitive advantage, regardless of the organizational environment or service. This
means that it considers HR practices that can be applied to most organizational environments to
improve performance and produce better results. This means that there is a close relationship
between human resource practices and organizational performance, which requires a high degree
of engagement management. The best practice model is based on the concept of organizational
performance advantage, and the Pfeffer model is a good example of this set. The model
introduces seven important HR practices, namely job security, selective recruitment, self-
management teams, high-level pay, training, reduced job differentiation and information sharing.
[ CITATION Arm \l 1033 ]

However, this model has also been severely criticized. First, it can lead to a deterioration of
employee collaboration. The implementation of this approach will introduce prohibited
combinations between them, such as teamwork and performance-based pay, which involve
significant risks. In addition, due to inadequate methodological and theoretical definitions,
discussions on the appropriate selection of best practices were inconclusive and no conclusions
were reached. It is therefore difficult to have a better general practice. While one approach is
successful for a popular and successful organization, it does not necessarily apply to other
organizations.

1.4 Work-force planning:

When developing the best recruitment solution for our clients, we must consider two main
objectives: short-term and long-term planning.

Short-term planning tends to focus on:

• Role of large capacity.

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• Difficulty filling skills.
• Immediate request.

Long-term planning is generally used for:

• Future projects.
• The growth of the strategy or business.
• Difficulty filling skills.

We understand that no program is suitable for all organizations. That's why our effective HR
solutions meet the needs of each client.

1.5 Benefits of Workforce planning:

A customized workforce planning program including employee development and a clear career
path will undoubtedly enhance your organization's human resources management system. If
communication is correct, workforce planning can help support employee engagement and
retention. An effective workforce planning program can have a positive impact on attrition,
branding and culture. Resource solutions work closely with our customers:

 Understand their long-term and short-term business intentions.

 Design and lead a workforce planning program.
 Post recruitment trend analysis as potential predictors of future models.
 Support the definition of existing and future skills.
 Coordinate the review and adjustment phase of HR solutions.
 Design and implement resource strategies. [ CITATION Wor \l 1033 ]
1.6 Types of labor market:
The labor market can be understood as the mechanism by which labor is bought and sold as a
commodity and by the means by which the demand for labor corresponds to the labor supply. As
a result, the labor market is a systematic relationship between workers and work organizations.
One of the organization's key concerns in achieving its strategic objectives is to ensure that the
organization has the right skills, knowledge and attributes for the right positions.
1.6.1 Labor market types:

1.6.2 The open external labor market:

This is very much in line with the simple model of the labor market as a place of competition:
external in the sense that employers use their outside workforce and do not seek to foster long-
term working relationships. It is also unstructured because there is no clearly defined
professional boundary and it is easy for workers to enter the market and move from one job to
another because no training or prior qualification is required. 'is necessary. Workers have few
legal rights and protections and unions are weak or non-existent. Workers compete for jobs and
employers determine the level of wages in the light of events. The abundance or scarcity of labor
in the market means that employees are continually exposed to external market forces.

1.6.3 The occupational labor markets:

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The professional labor market appears when workers have the skills to move from one company
to another. The labor market for professional workers often falls into this category: for example,
doctors may work in different hospitals, teachers may be transferred from one school to another,
and lawyers may move from a law firm to another. another. No recycling is required. The
professional labor market is external because the skills of workers can be transferred from one
company to another and employers can fill vacancies by absorbing the talents of skilled workers
outside the company. Workers can also further develop their career by moving from one
company to another to seek promotion and better opportunities. Clearly, there may be
competitive factors in the professional labor market. However, unlike workers in an open
external labor market, workers in a formal, professional labor market can largely isolate
themselves from the pressure of competition in the labor market.

1.6.4 The internal labor markets:

The internal labor market is essentially based on the company's employment system. In other
words, the conditions of employment are determined by the rules of the organization rather than
by the degree of competitiveness in the labor market in general. They are internal and external
recruitment is limited to junior positions and internships within the organization. The other job
offers are filled by internal transfers and promotions. Skills are acquired at work and are specific
to the organization that acquired them, rather than being able to move from one company to
another.
This limits the mobility of workers between firms because the skills acquired in one organization
are not equally useful in another. A reduction of the workforce by "natural drainage" is obtained
by not dismissing the resigning workers instead of dismissing them. As a result, workers enjoy
long-term job security. The internal labor market is also highly structured, as it includes a level
of work that is distinct from one another in terms of skills, responsibilities and remuneration.
[ CITATION the1 \l 1033 ]

By definition it could be described as:

“Market where pricing & allocation of labor is determined by a set of administrative rules &
procedures”
Or
“Internal labor refers to the rules and regulations of an institute. E.g.: recruitment, price of labor
and training, which govern the employment relationship in contrast to external labor market”

Following are the administrative rules and regulations for the ILM (procedure):
 Determined by set of economic, political and historic forces.
 It Can be explicit or implicit
 Rules substitute for individual preferences in determining who is working, type of
work and possible details related to it.
 Best describe within organization markets.

a) Turn over:
According to a survey, we can describe turn over as

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“Attracting and retaining key talent is considered as a key strategy to achieve financial success”

Turnover has a direct impact on the sales and profit of any organization.

1.7 Retaining Employees and Minimizing Turnover:

In organizations there are many reasons which can lead employees to leave the job, oftentimes
these reasons are not known. Employers have to indulge with the employees and have to make
them feel valued and engaged in order to keep them.

There are a lot of successful companies such as Microsoft. They have showed the workforce and
dominance in the market. They have a huge business success. They have emphasized the
importance of retaining skilled human capital and have assured that the objectives are achieved.
This can lead the employee to stay with the company and stay loyal to it. According to
Hendricks:

Employee retention should focus on:

“The employers have to attract employees to join the organization through focused recruitment
and ensure that the employee with skills has to remain with the organization”.

Motivation of the employees are needed and employers have to praise every outcome and
objective achieved by the employees.

The reason why retention strategies are important:

1.7.1 Manage Employee Turnover:

Employers implement the method of retention strategies to manage the turnover of the
employees and by doing so, they attract the employees to work in the organization and be loyal
to it. All the retention programs focus on relationships between the workers and management.

1.7.2 Cost effective:

Any company needs its employees to work and they are the people who are most beneficial for
the company. Although high turnover can be expensive. According to SHRM:
“Employee replacement costs can reach as high as 50 to 60 percent of an employee’s annual
salary.”

1.7.3 Enhance Recruitment:

During the employee recruitment process the retention strategies play a big role in making the
employee’s stay with the company. When the offer extends, they have to gain it, by doing so,
they will have to be with the company/organization.

The list of reasons why an employee requires to change his job:

 Lack of opportunities for personal career building in the company.

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  Stress from overwork.
 Financial consideration.
 Inappropriate organization culture.
 To gain some new experience by joining any other organization.
 Lack of understanding with the supervisors and management.

To overcome all these problems and to gain more from a company, they have to be focused on
the following strategies which will minimize the employee turnover:

o Stress free work environment – Launching a flexible working hour policy.

o Financial rewards – Employees who reach their goals are rewarded.
o Recognition of work – Employees should know that their work is valued in the
organization.
o Instill a positive culture – Culture’s like honesty, respect, teamwork should be provoked.

1.8 PESTLE Analysis on an HR department or other internal labor market.

PESTLE analysis includes the following factors in the HR market and internal labor:

 Political:

Political factors include the culture of the organization, it will also include the HR
function which are viewed by some other functions, views of the shareholders and
adversaries.

 Economic:

It includes the amount available for hiring in the department. The budgetary position of
the department. Inflation, interest rate and financial status of the organization.

 Sociological:

Sociological factors include the population shift like the age profile, education, housing
trend, living standards, health and other factors.

 Technological:

It includes the changes which may come in the way during the hiring phase, what are the
possible technology systems, communications technology and what possible changes can
be there in the HR software.

 Legal:

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 It includes the minimum wage, working time, trainings (occupational and traditional) and
what will happen in the sector that will impact the organizational behavior.

 Environmental:

It includes the factors such as staff engagement, staff morale, management attitudes and
organizational culture of the organization. [ CITATION est \l 1033 ]

1.9 How to analyze the turnover, stability and retention:

Turnover refers to the flow of human resources within an organization, that is, the transfer of
employees from one job to another through a transfer, promotion or a relocation. It is at this
stage that we can see the effectiveness of HR management plans and activities.

The turnover analysis can provide HR managers with useful information about future workforce
opportunities, as well as the skills, abilities and experience required. Effective rolling
management identifies problems and helps HRM to develop appropriate strategies.

In this tight labor market, employee retention is more important than ever. As a result, employees
who are satisfied with the way they are perceived as employees and reward them with their
performance or work are less likely to leave the organization. It is generally accepted that if your
company's turnover rate is high due to retention issues, your morale will be low, the quality of
service poor, the damage done to your brand and your reputation in the market, but most
importantly, will affect your finances.

1.10 The difference between turnover and retention:

They are almost the opposite terms. Turnover is the percentage of your employees who have left
their job for a period of time (usually once a year). Retention is the proportion of employees left
behind.

1.10.1Measuring turnover and retention:

 
If you want to efficiently manage turnover and retention, it is useful to measure both data.
Measurement data can help you identify problems and set improvement goals.

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1.10.2 Measure staff turnover:

The easiest way to track your sales is to measure the overall rate each year. You can calculate the
percentage by dividing the total number of employees by the total number of employees and
multiplying by 100. The lowest scores are better. One of the problems of overall turnover is that
it includes resigning people over whom you have no control - such as retired employees or
transfer to another branch. A more targeted calculation of turnover in case of total dismissal or
total voluntary resignation may be more useful. [ CITATION emp \l 1033 ]

1.11 The impact of legal and regulatory frameworks to improve efficiency of HR:
Taking an example of an organization “Lithuanian enterprises”. Let us examine the impact of
labor market on HR specialists.

Human resource’s management had an impact during the time period of 1990 to 2013. It further
can be separated in two periods.

1. From 1990 to 2004 – During this time period the management of Lithuania lacked
employee initiative and material priorities of the employers. This time period was hard in
terms of the Human resource management.
2. After 2005- Included new traditions. New International companies were developed in this
time period, which had a huge impact on Lithuanian labor market. As new trends for
human resource management were introduced, on the other hand, it brought negative
trends on the Lithuanian labor.

a) Impact on Lithuania labor market:

(1) Increase in the emigration of all the employees.
(2) Lack of skillful workers.
(3) Rise of unemployment.
All these factors summed up had a huge impact on Lithuania labor market. The employers
recommended the other companies and wanted to work for them.

b) Findings:
It was taken on count and was detected by the Ulrich’s classification that in Lithuanian
companies, the human resource specialists performed tasks of the administrative expert.

Included:

 Administrative documents.
 Ensuring the health issues.
 Ensuring the safety conditions.
 Training conditions.

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This research had a lot of negative shifts in the findings of the Lithuanian labor market on all the
functions of HRM and HR specialists. They said that their employees in numbers have
decreased. it had decreased by 68%. And 44% in the HRM department.

This example can clarify the concepts and the importance of the labor market and all its possible
impacts that can cause failure of an organization.
Human Resources management must comply with all employment, health and safety laws and all
other applicable laws applicable in the jurisdiction in which the organization is located. This
includes federal, regional and local laws relating to various areas of human resources, such as
recruitment, benefits, labor relations and layoffs. Keep up to date with legislation to keep your
organization in compliance and avoid costly penalties.

There are seven factors which can even impact on the Human Resource Management policies:

a) Equal employment:
All the employees in an organization, belonging to any race would not be discriminated
and all the employees will be given equal opportunities in the company to be effective.
This will cause a healthy environment in the organization and will lead to the betterment
of the company.

b) Compensation:
The employees who are working over-time weather men or women have to be given equal
pay for equal amount of work.

c) Sexual Harassment:
Any verbal or physical harassment conduct has to be taken care and strict actions would
be taken against that employee.

d) Employee privacy:
All the personal secrets of an employee are secured unless any inappropriate actions take
place and there is a strong reason and suspicion.

e) Developing Policies:
HRM policies are there to make sure everyone including; managers and employees are
aware of the laws and restrictions.

f) Labor relation:
The process by which unions get to know their limitations. The things are allowed to do
and what things they cannot do.

g) Employee safety and health:

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 Employers have to provide employees a safe environment where they can work without
any stress.

1.12.1 Federal law

The federal law covers the entire field of employment, from the employment of employees to the
cessation of activity. The US Department of Labor is responsible for managing key regulations
for businesses and workers. The law sets standards for wages and hours of work, safety and
health benefits, retirement, work allowances and working conditions. They describe basic rules
and requirements covered by employers, employee rights, record keeping, reports and sanctions
for violations. There are also specific laws for signing federal contracts with employers.

1.12.2 State Laws

Human resource management involves compliance with national laws relating to different
aspects of employment, such as family and sick leave, job requirements, employer notifications
prior to dismissal, security, wages and salaries. hours of work and workers' compensation.
Employees may also have rights under common law of states, including contractual rights and
confidentiality. Many local governments have their own employment laws that are broader than
federal or state laws.

1.12.3 International law

Increasing globalization has allowed large organizations to operate internationally or abroad.
Ensuring compliance with laws and regulations can be difficult in a foreign environment where
legal and business practices may differ. Companies need to be aware that local laws not only
affect the operation of their business, but also the management of their employees. This includes
employees who manage international assignments or assignments, as well as employees
employed locally. [ CITATION leg \l 1033 ]

1.13 Internal and external recruitment:

Companies can be recruited in two different ways:

• Internal recruitment

This type of recruitment means that the company wants to fill the gaps of existing employees.

• External recruitment

This type of recruitment refers to the vacancies that the company wants to fill with any suitable
candidate outside the company. Of course, you can use this option to use internal and external
recruitment. This is generally the case for senior appointments.

Internal recruitment Advantages:

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• Recruitment is cheaper and faster
• People who already know the company and how it works
Offer promotional opportunities in the company - can be motivated
• The company already understands the strengths and weaknesses of the candidate

• Disadvantages:
• Limit the number of potential candidates
• Cannot introduce new ideas from outside
• May cause dissatisfaction with unnamed candidates
• Create another vacancy

External recruitment:

Advantages:
• Aliens bring new ideas
• A larger group of workers to find the best candidate
• People have a wider experience

Disadvantages:
• longer process
• Need for more expensive processes due to the need for advertising and interviews
• The selection process may not be enough to reveal the best candidate.

Job Analysis:
The job analysis is the process of identifying and determining the responsibilities and specific
requirements of the job, as well as the relative importance of those responsibilities for a
particular job. Job analysis involves judging data collected at work. [ CITATION job \l 1033 ]

1.14 Methods of Job Analysis:

Methods of job analysis include:
• Review the job classification system
• ongoing maintenance
• Interview with the supervisor
• Expert Group
• structured questionnaire
• to do-list
• control List
• open questionnaire
• observe
• Current work journal

1.14.1 Job Description:

Based on the results of a job analysis, general, general and written statement of a particular job.
It usually includes the duties, objectives, responsibilities, scope and working conditions of the

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job, as well as the job title and the name of the person reported by the employee. Job descriptions
generally form the basis of job specifications.

1.14.2 Personal specification:

A staffing discipline is a description of the qualifications, skills, experience, knowledge and
other attributes (selection criteria) that a candidate must possess to perform his / her duties. The
specification must come from the job description and form the basis of the recruitment process.
You will use the staff specifications as a basis for your decision-making during the selection,
presentation / test and interview phases. Interview questions and selection tests must also come
from staff standards designed to provide more evidence to candidates, based on criteria. Staff
specifications should also be used to write an announcement for the position. [ CITATION per \l
1033 ]

1.14.3 Competency framework:

The competency framework is essentially a structured process designed to help human resource
personnel develop their skills. The framework not only specifies what HR staff needs to do to
change things, it also clearly shows how the role of the HR department is linked to the goals and
success of the business over the long term. Identifying the core competencies associated with
each role in human resources - core competencies, behaviors and attributes - is a step towards a
standardized approach to effective human resource performance.[ CITATION com1 \l 1033 ]

1.15 Methods of selection and induction of a new employee:

Selection:
“Selection is the process of differentiating between applicants in order to identify and hire
those with a greater likelihood of success in a job.”

Steps that are followed in selection are:

a) Preliminary Interview:

All the unqualified applications are discarded. The candidates who are not qualified enough to be
able to compete for the post are discarded from the list. This step is done to reject the misfits.

b) Selection Tests:

Test examination is done for the candidates who were qualified enough.
These are all the testes which are done for the jobs:

 Aptitude test
 Personality test
 Ability test

These tests are to judge the competence of the candidates.

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 c) Employment Interview: 

The candidates who pass the examination are then called for an interview. The acceptability of
the candidates is done. The type of interviews is:

 Panel interview
 Behavioral interview
 Stress interview
 One-to-one interview
 Sequential interview

d) Reference & Background Checks:

The verification of the documents is done afterwards. This can be done via formal letters,
telephone.

e) Selection Decision: 

This is the most crucial step as the most competent candidates are selected. Line
managers have a general view of the selected candidates because he is responsible for the
performance of the new employee.

f) Physical Examination: 

A fitness test is held and the candidates who pass this test are selected.

g)  Job Offer:

Appointment letter is given to the selected candidate.

1.16 Importance of induction of a new employee:

It will reduce the applicant numbers. Management of selecting employees out of so many
applications is a tough job. Selection will give managers the opportunity to get potential
employees having good character and personality. This will ensure that the most
compatible employee is selected for the job. Recruited employees who are satisfied with
their jobs will lead to low employee turnover rate. The cost of hiring and training those
employees costs a lot and needs employee retention.

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LO2 Evaluate the effectiveness of the key elements of Human Resource Management in an
organization.

Answer:

2.1 Differentiate between training and development:

Staff training and development is an integral part of the functions and management of human
resources. Both activities are designed to improve employee performance and productivity.
Training is an organizational organization program that aims to develop the knowledge and skills
of employees based on job requirements. On the contrary, development is an organized activity
in which learning and human growth of the organization is a method of self-evaluation.

In training, employees gain knowledge and technical skills adapted to a particular job and
emphasize the ability to improve each worker. Development is rather an educational process
focused on the growth and maturity of managers. See the article below to illustrate the
differences between training and development in tabular form. [ CITATION dif4 \l 1033 ]

2.2 Key Differences Between Training and Development:

The major differences between training and development are as under:

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1. Training is the learning process for new employees, allowing them to understand the key skills
required for the position. Development is a training process for the full development of existing
employees. Training is a short-term process, i.e. 3 to 6 months, but development is a continuous
and therefore long-term process.

The objective of the training is to develop the skills and knowledge of the current job. In
development, this development is focused on acquiring knowledge, understanding and solving
future problems.

The training is limited, it is a specific professional orientation. On the other hand, development is
career-oriented and therefore has a broader scope than training. [ CITATION dif5 \l 1033 ]

2.3 Identifying training needs:

Sources that can help you determine which needs analysis is appropriate for your situation are
described below.

 Organizational Analysis.
Analyze the needs of the company requiring training or other reasons. Analyze the strategy,
goals and objectives of your organization. What is the organization trying to accomplish? The
important question answered by this analysis is who decides what training should be
conducted, why the training program is considered a recommended solution for business
problems, and the organization's history concerns employee training and other management
interventions.

 Person Analysis.
Analyze potential participants and teachers involved in the process. The important question
this analysis answers is who will receive the training, what level of knowledge is currently
available on the subject, how will they learn and who will be trained. Do employees need
skills? Are there any changes in policies, procedures, software or equipment that require or
require training?

 Job Analysis
Analyze the current tasks. This is an analysis of the requirements for work and execution.
This analysis, also called task analysis or work analysis, is designed to specify the main
responsibilities and skill levels required. This helps to ensure that the training developed will
include links to the content of the work.

 Performance analysis:
Does the employee meet the established standards? Does training help improve performance
if performance is below expectations? Is there a performance gap?

 Content analysis:
Analyze the documents, laws and procedures used in the work. This analysis answers
questions about the knowledge or information used in this work. This information comes

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 from manuals, documents or regulations. It is important that the content of the training does
not conflict or contradict the requirements of the position. Experienced staff can help (as an
expert in this area) determine the appropriate content.

 Analysis of the applicability of the training.

Analyzing training is the ideal solution. Training is one of the solutions to the problems of
employment. However, this may not always be the best solution. It is important to determine
if the training is effective.

 Cost-benefit analysis.
Analyze the return on investment (ROI) of the training. Effective training can make the value
of an organization greater than the initial investment in production or management training.
[ CITATION hrg \l 1033 ]

2.4 Extrinsic and intrinsic rewards:

The type of rewards which can motivate the employees are:

Intrinsic versus extrinsic rewards
Financial versus Non-financial rewards
Performance based versus membership-based rewards

All the type of reward system helps an organization get more

from there workers and employees.

1) Role of reward systems:

Bonuses and rewards have effect on the long-term beneficial of the company. This is an
important factor in the development of any company. The reward system urges the HR leaders to
be able to take part in developing, communicating. The reward system addresses both the
financial and non-financial factors. Stockwell said:

“The HR leader’s role in this is critical, because reward systems are never perfect and must
change and evolve with the organization. The HR leader must take responsibility to ensure
that reward systems are understood by all, and manage changes to keep the reward systems
effective.”

Dolmat-Connel said:

“Many believe this is what drives alignment across the organization,” he says. “But what
alignment really means is that everyone is rowing in the same direction, rather than everyone
being on exactly the same plan.”

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2.5 Motivation in HRM:

It is the act of inspiring employees to work for the goals and be effective for the company.

The ways by which employees can be motivated are:

a) Compensation:
The employees are motivated by the pay checks. They can be offered high salary in order to
motivate them to work hard for the company.

b) Recognition:
The employers have to take pain to recognize the efforts of its employees. Especially when they
complete their whole task. Motivation can be done by giving the managers tickets for concerts,
events or gift cards, this will motivate them to work hard.

c) Independence and Challenges:

The managers should feel challenged in the applied field. They should have competitions to be
motivated. Challenge’s like self-determination should be the key factor for any manager to stay
motivated.

2.6 Job-Design techniques:

The techniques for Job-design which can motivate employees are:

i) Work Simplification:
This method involves breaking up a large task or job into parts. Then each worker has to
complete each part assigned to him. He will have to do that part again and again so that he has
hold and control on that part. By doing so, the worker feel boredom. Boredom can cause errors
and accidents in the work leading to the loss of company.

ii)  Job Rotation:

Job rotation is the solution for boredom. It implies the work load to be shifted between the
employees. This makes employee perform different jobs and do not get bored. But the employees
who feel more to be challenged may still feel frustrated.

iii) Job Enlargement:

This means to add more tasks. This enlarges the scope of the job. This is beneficial as it can give
variety in the job. This also helps in reducing the boredom. This helps increase interest in the job
and its efficiency.

iv) Job Enrichment:

It is a process to add motivational factors in the job. Freedom is provided to do a particular task
but will add more responsibilities to do it. This factor will add job depth and will increase the
quality of the output of the job.

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 Figure 4
This figure shows the features and aspects of job design.

2.7 Types of flexibility:

2.7.1 Functional flexibility:

Functional flexibility or organizational flexibility refers to the extent to which employees can be
transferred to different activities and tasks within the company. It is linked to the operations or
management and training of the organization's staff. This goal can also be achieved through
outsourcing activities. Job rotation is the label of many functional flexibility options. [ CITATION
Lab \l 1033 ]

2.7.2 Numerical flexibility:

Numerical flexibility is the ability of the company to adjust the amount of work required to cope
with fluctuations in demand, while functional flexibility is the ability to deploy employees
optimally.

2.7.3 Structural flexibility:

A flexible business structure is a structure that evolves within an organization to respond to
existing relationships among employees and how employees interact with each other in the daily
workflow. Flexible structures are informal in nature and often come from the way workers find
activities to be completed, which is more effective than what is required by formal organizational
structures. [ CITATION for1 \l 1033 ]

2.7.4 Flexible organization:

A flexible organizational structure means that employees can easily adapt to customer needs,

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carry out their work and speed up decision-making when necessary. Several types of internal
organizational structures are flexible enough to achieve these goals.

2.7.5 Handy's management theory:

The advantage of a flexible organization is that it can react quickly to changes in the external
environment. Since the 1990s, companies have examined their value chains and are trying to
reduce their workforce to a multi-skill core that involves the creation or provision of a product or
service. All other non-central support functions are outsourced as much as possible to the
periphery. However, Charles Handy suggested that the organization not only include the core and
the periphery, because the periphery could be subdivided.
Shamrock's model of Charles Handy suggests that firms employ three types of workers:  

1. Principal Employees: full-time and long-term employees, may be managers / professionals,

central production staff   

2. Peripheral workers: temporary, flexible and part-time   

3. Contractor: works for a specific task, usually during a given period (outsourcing). [ CITATION
Han \l 1033 ]

2.8 Benefits of flexible working practices:

Advantages for Employees:

With flexible work schedules, employees experience these benefits:

 Respond in a practical and flexible way to the family's needs, personal obligations and
responsibilities. If your schedule is flexible, you can attend a parent-teacher session during
the day, take a yoga class or return home when the laundry maintenance staff arrives.
 Reduce employee travel time and fuel costs. In some areas it is not uncommon for a one-way
trip to last more than an hour. If these employees can work from home, they can save two
hours, gas and wear. It goes without saying that reducing the number of drivers makes it
easier for those who go to work.
 Avoid traffic pressure and traveling during peak hours. If you have to be in the office at 10:00
instead of 8:00 am, the speed of travel will surprise you.
 Increase personal control over the schedule and the work environment. One of the reasons
people like to work for themselves is to master their problems. By allowing employees to
determine their own schedule and their own work environment, you can attract the
entrepreneurial spirit, which is beneficial for your employees.
 Reduce burnout among employees due to overload. Flexibility means that employees can rest
when they need it, without incurring the boss's anger.
 Allow people to get the job done, feel the coolest and enjoy working while working. (For
example, people in the morning and people at night). Many managers think that early risers
are hard workers, while night owls are idlers. There is no proof that this is the case - it's just
culture.

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Advantages for Employers:

With flexible work schedules, employers experience these benefits:

• Improve employee morale, commitment and commitment to the organization. • Reduce
absenteeism and delays.

• Improve the ability to recruit exceptional employees.

• Reduce the turnover rate of key employees.

• Allow people to get the job done, feel the coolest and enjoy working while working. (for
example, people in the morning and people at night).

• Extend office hours in departments such as customer service.

• Be the image of the preferred employer through a flexible work schedule for the family.
[ CITATION adv \l 1033 ]

2.9 Design a reward program:

It includes:
 The identification of goals that the reward system can support.
 Identify the employee’s performance.

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  Determine the appropriate reward for each work that was completed.

The proper measuring of the performance will ensure that the following program payed off in
terms of business goal. As rewards are costly, it is required to check that the improvement is
made before giving that reward. This is the ending process and the entrepreneurs have to
consider it in the end result of the company. It is important to reward both individual as well as
the group accomplishments.

LO3 Analyze internal and external factors that affect Human Resource Management
decision-making, including employment legislation.

3.1 Maintaining good relations with employees:

To establish and maintain a good working relationship is a key aspect to a positive and
progressive organization. Therefore, organizations encourage the development of healthy
environment at a workplace and play their role to maintain a good relationship, not only between
the coworkers but also between the managers and employee’s A healthy environment on the
workplace can be achieved by encouraging employees to one unified goal, and allowing all of
them to work for it equally in their respective departments. By defining their job descriptions
properly by listening to their issues and responding to them timely. And by maintaining a non-
biased environment.

1) Mission Statement:
There should be a clear goal or a mission statement, and each of the employee, must be aware of
that by having a tangible copy of the rules and goals. The mission statement should be self-
explanatory by having a clear goal of progression of an organization. The leaders should discuss
it with the employees that how to go about their mission in an accomplishing way, and it is by
keeping their values and norms. Regular workshops and staff meetings should be held, for
keeping the staff updated about their current goals and discuss strategies to achieve them.

2) Team Work:
The management should design activities that should bring the employees together as a
teammate, by organizing events such as sports events where the employees can make teams and
maintain a friendly environment. According to the several researches on this very area, the better
the environment of the work place, the greater the outcome of an organization.

3) Challenges:
It has seen, that where the work gets constant, the employees falls into a routine and they don’t
feel the change, the organization should give new challenges to the employees to make their jobs
interesting .to keep them active and energetic. they should also provide the incentives for the
employees in condition of the target achieved.

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 4) Incentives and help:
Rewards and incentives should be given to the employees and teams for achieving a certain goal
as soon as possible. this will encourage them to do more work and create a positive relationship
between them and the organization. Help should also be provided to the staff in case of any
ambiguity or trouble.

5) Togetherness:
Organization should arrange and celebrate events according to their staff’s religion or culture, to
bring them informally to a platform, where they could come together, other than their work.

6) Politics and blame games:

Downfall of the organization arise when it comes under politics and plotting, there should be a
no tolerance policy, for doing politics and employees doing blame game. for that will make the
employee be aware of the consequences e of such act and avoid that.

3.2 Employment law:

The Employment Act governs relations between employers and employees. It defines the
employer's expectations of the employee, who can ask the employee what to do and what their
rights are to work.

3.3 Equal Opportunity:

The full functions of federal labor law, such as Chapter VII of the Civil Rights Act of 1964, the
1990 United States Disability Act, and the Age of Employment Discrimination Act, 1967, aim to
provide equal opportunities for employment to candidates and employees. Fair treatment at the
workplace. These laws prohibit discrimination and treatment on the basis of factors unrelated to
the job requirements. These laws also help employers to consider equal opportunities for workers
regardless of age, color, disability, nationality, race, religion or gender.

3.4 Pay Equity:

The Equal Pay Act 1963 was designed to ensure equitable remuneration. The law prohibits
employers from setting different pay scales or applying different pay practices based on the
employee's gender, provided that his / her duties require the same tasks, assume the same
responsibilities and require equal efforts. For example, two account managers located in the
same way - a man and a woman - must receive equal pay. The purpose of the Equal Pay Act is to
require equal pay for equal work, often considered the pay equity mantra.

3.5 Safety at work:

Employers are required to provide a safe work environment, with a focus on employee exposure
to hazardous materials, workplace safety in complex machinery and unsafe conditions. The
Occupational Safety and Health Act of 1970 is the main law that reinforces the obligations of
employers. It requires employers to register workplace accidents and deaths and impose heavy

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fines and penalties on employers for failing to meet their safety obligations. [ CITATION fun \l 1033
]

3.6 Concept of trade union

“A continuing long-term association of employees formed and maintained for the specific
purpose of advancing and protecting the interests of the members in their working relationship.”

Dale Yoder

The concept of trade union is to secure the improvements in pay, benefits, working conditions,
social and political status through collective bargaining.

It’s an organization made up of different members, and membership is given to the workers. The
main aim of the trade union is to protect the interest of its members in a work place.

Many of the trade union work independently and do not require an employer, however some
have a close working relationship with the employer. however, if the trade union and the
employers have common interest, then they come to an agreement.
3.6.1 History of trade union:
The history of trade union started from 19th century in Great Britain and in united states.it was
also formed in many other countries for the same purpose. However later they faced many
obstacles and came under conspiracies and to deal with those a Labor party was formed in 1906.
After that many unions were formed and got broken too.
The basic points of the trade union are:

• Deal with working term and condition and managing wages

• Employee’s relations
• A unified action used for dealing with collective bargaining.
• To put forward the demands on the behalf of the members
• To solve their problems

A trade union either works with one company, or may have connection with other companies of
the same interest.

3.7.1 The impact of trade Union on business Activates:

A primary goal of trade unions is to maintain and improve workers’ terms and conditions,
particularly workers who are members of the union, through collective bargaining with
employers. Whether unions are successful depends, in large part, on their bargaining strength –
which is based on their ability to restrict the supply of labor to the employer – and the ability of
employers to concede above-market wages (Freeman and Medoff, 1984).

The more the percentage is enhanced of union bargain, the higher will be the union wage
premium, where the majority of workers are covered by collective bargaining, union death wages
have a less impact on employers’ cost
27 | P a g e
3.7.2 Trade union reduces inequality:

Inequality is a major concern in the world that covers trade union as well. e.g.: The trade unions
of U. K have worked a lot to exceed the working hours as that are allowed .in the collective
bargain the disadvantage is that the worker gets less pay premium. As in USA if you are a black
woman you will get 34% more pay premium then other workers and if you are Hispanic then you
get 44% more pay premium and id you join the trade union it reaches to 50%.

3.7.3 Increased training by trade union on workplace:

UK is considered one of the worst places for trainings, which has a bad impact on the businesses
and company not just within the country but for the world. A study in Scotland showed that the
workers said that the trainings if organized by the union would have been better. where unions
are recognized and they should negotiate on the training programs so the employees are 24 %
more willing to undergo these trainings at work.

3.7.4 Improves well-being

If there is an organizer for an employee that can reduce the employees stress level .and this can
improve their work. This can increase their well-being. through a survey it has been told that a
worker is happier working in a place where there is a representative for them. So that the higher
the Job quality and the higher the rate of productivity.

3.7.5 Good impact on economy:

In the decline of union density peaks at 1975, it was 76% which is now lessening to 67% today.
which has led to the loss of GDP. Restoring union density at this level in the early 1980s would,
be thanking to the impact on the wage share, adds £27.2 billion to UK GDP.

3.8 HR practices to avoid conflict in Trade union:

Several acts can be undertaken to maintain the peace within the union:

3.8.1 Peace maintenance:

The parties in the union must sign an agreement that they shall not undertake any industrial
action within the period of an agreement. This is to maintain the industrial peace within union
and other trade branches. This helps avoid the union to go far sticks, boycotts and lockdowns, for
different reasons. things done under a proper agreement reduce such acts.

If such activities take place so they can be fined or can be taken to the court for legal action.

3.8.2 General applicability of collective agreements:

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This binds to the parties that sign this agreement with their members.it is a worldwide agreement
and also can be found on the internet.

3.8.3 Negotiating Parties:

Negotiating parties can best work for members as they work on behalf of their members and
negotiate collective agreements. Many local issues can be resolved between the employer and
employee repetitive. They ensure the holistic well-being of an employee and fight for their
rights.

3.8.4 Negotiation procedure:

Collective agreements have little supplication regarding the settlement of dispute to the
agreement. This dispute from the application should be handled by the employer and the
employee. If the dispute is not resolved like that then the shop steward negotiates with the
employer, and in this way in the last step the shop steward negotiates with chef shop steward.

LO4: Apply HRM practices in a work-related context.

Training is required in every organization and is crucial for development and success. It is done
for both employees and employers. There are four possibilities in an organization when training
is required:
 When a new employee is hired.
 The existing employer are trained to refresh their skills and knowledge.
 If the technology is updates, training is required to cope up with it.
 When promotions are offered. Employers are trained to be able to get themselves on the
higher post and job level.

There are two methods of training in an organization:

4.1.1 On the job training:

One type of training is, employees are given every day instructions and working procedure to get
working and train themselves every day. It is cost effective method of training and gets more
output and less stress for the employees to learn. The employees have to work in actual scenarios
and conditions where they have to give accurate output and they are supervised. The instances of
the job-training are:

 Coaching
 Job-rotation
 Temporary promotions

4.1.2 Off the job training:

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This is type of training which is done away from the actual working area. This is particularly for
the new employees. The instances for this type of training are:

 Seminars
 Workshops
 Conferences

This type of method is costly and takes a lot of time and effort. This is effective when a large
number of employees have to be trained. Then this method of training is more effective as
compared to day by day training of the employees.

4.2 Success of any training and development activity:

The company has to set criteria to know that the following activity was successful. Training
programs have to result in a return on investment, can be long or short term. The professional
trainers have to clearly identify, if the initiatives helped the organization and was able to achieve
the required goal? The timeframe is also important. The training session has to be completed in
the given amount of time and re-evaluation of the programs have to be conducted regularly.

4.3 Impact of technology on improving the recruitment:

The hiring and human resources sectors are constantly improving their technology, especially its
impact on day-to-day tasks, activities and, perhaps most importantly, the recruitment process.
Human Resources (HR) is responsible for categorizing employee salaries, talent acquisition,
performance management, management and interviewing, as well as hiring new employees. But
how does technology contribute to improving the performance and speed of the recruitment
process? This is where the Internet of Things (IoT) and Artificial Intelligence (AI) come into
play ... As a human resources expert, you can keep pace with technology in three ways and use it
to strengthen your assets:
4.4 Use AI as a daily tool:

A number of recruitment companies and human resource teams have begun to integrate artificial
intelligence into their internal processes to improve many low-level daily tasks that usually take
a long time. In addition - and a major advantage of the recruitment process - artificial
intelligence has the ability to select candidates and select the best non-biased respondents.
Intelligent systems focus on key criteria such as experience, qualifications and skills to reduce
discrimination and are programmed to avoid the unintended bias that any person occasionally
produces.
4.5 Social media should take advantage of your strengths:

It is said that 70% of employers will check social media platforms of potential candidates to see
if they regularly publish industry-related topics, interact with renowned industry spokespersons
and show enthusiasm for their work. There are many ways you can use social media to improve
the candidate selection process. When selecting candidates before the interview phase, you
should be aware of the following points on the social network channel: Do candidates share
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industry-related topics and news on Twitter or LinkedIn profiles? If so, it shows that they are
interested in the industry and want to stay up to date Do they have a personal blog that
showcases their portfolio and personal brand? This is a key indicator of the interest of your
potential candidates for your sector and your careers in the long term. [ CITATION how5 \l 1033 ]

4.6 Recruitment on social networks:

Although social recruitment is neither new nor even new, some social media strategies will
become more popular in 2014 and beyond. These include video interviews and consideration of
the candidate's social network profile as part of the application, not the way the candidate is
selected. Perhaps the most important way to use social media when hiring is to use them as a
referral source. Once engaged in social recruitment, more than 30% of companies see an increase
in their referrals, and referrals are generally those that persist longer and achieve better results.

4.7 Impact of technology on social media:

Technology is changing our way of life. As technology progresses, we can perform more tasks in
less time, often with less effort and efficiency. But with these abilities, our interactions with
others have changed dramatically. We have something called "social networks" or "social media"
that allows us to communicate with a wider audience, but at cost.

4.8 Designing, placing job advertisements and selection process (Best practices):

These are the best practices adopted while hiring the employees:

A. Good job title:

This is the most important part of your job posting when you post on the forum. When
writing your title, indicate the name of the position and the three most important elements
to make the job attractive to the candidate.

B. Add an emotional introduction:

This is a separate paragraph that gives three to five details and the applicant will find the
most exciting job. This article is similar to the article that newspapers use to make you
read a complete article.

C. Tell the story of your business:

The information that the applicant wants to know about your business. How many years
have you been in business, how long have your employees stayed (if it shows that people
are loyal to you), interesting clients or projects, and candidates will be excited about the
material, rewards, honors and work culture that will interest them. Really sold this
position. Rather than a typical list, it only includes the critical requirements for the job.
Try to limit yourself to one or three things. Then provide any other information about
hours of work, salaries, interesting colleagues, educational opportunities, benefits or
allowances and what the candidate will find interesting.

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 D. Push your location:
Moving is an obstacle to any job that takes into account your area. If you want to attract
people from other places, sell the applicant here. Provide them with detailed information
about school, activities, crime rate, things to do, etc. If your place of residence is easily
accessible from many important recruiting areas, be sure to indicate the actual travel
time. Candidates are always enthusiastic about reducing daily commutes for 30 minutes.

E. Repeat why they should apply:

This section briefly reviews the top five to six reasons why a person should apply for
your job. If you have a long position, when the candidate hovers over the application
button, your essential points will be the most important ones.

F. Explain the application process:

Describe in detail everything from the first application to the lease. Candidates will not
be placed in the darkness of "what will happen next". This is especially important if your
role is an interview. Ready-to-go candidates will join this position as they will be able to
find a job in days to weeks.

G. Have other people read it.

Treat this job post writing exercise just as you would any other important piece of
company marketing. Get multiple people to read it and provide you with honest feedback.
Make sure you have fixed any errors before you post the job to hundreds of job boards.

H. Improve your email responses.

Look at all the emails that you send to candidates at each step of the hiring process. Pick
them apart and ensure they are clear, personal, and continue to sell the candidate on the
role at every step. A poor first response to a candidate application will undo all the good
work you did in the job post getting them to apply. [ CITATION job1 \l 1033 ]

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