Task 1.1)
Introduction: Selecting an organization to apply the human resource management for answering questions & doing case studies. A Beauty industry is my choice as an example for doing this assignment.
The difference between personnel management and Human resource management:
Managing people:
Personnel management is mainly focused on managing people only.
Human resource management includes managing the people and their strengths, for example: HRM will collect the data and analysis the skill and characteristics of the employees, then design the policies and develop the training course related their strength and organization’s objective to fulfill the needs and strategy for achieving the goal, such as develop training course about selling and beauty technique knowledge to increase their working abilities.
Personnel management is focused on employee’s satisfaction, for example: focus on employee’s welfare and labor relation, such as wages, holiday, MPF and insurance, Overtime allowance.
Human resource management is focus on develop the policies and training which related to the organization’s objective, motivate the employee’s working performance and participation to achieve the organization’s goal, for example: Human resource management will plan and develop training course to build up employee’s selling skill and confidence to raise up their working performance and working attitude in order to achieve the selling target in the organization.
Training and development:
Employee with less training under personnel management, but have more training opportunities under human resource management, for example: Human resource management will develop the training course to ensure the employees absorb update beauty knowledge and improve their selling skill and selling service in order to provide better service to the consumer for increasing company’s profit and reputation as well as the competition in the market.
Decision made:
Under personnel management, the decision are made by top management only, but under Human resource management, the decision was made collectively, for example : Human resource management will collect a variety of data and determine the factors, such as employee’s participation, the effectiveness for the whole organization before making the decision and planning.
http://accountlearning.blogspot.hk/2013/01/difference-between-personnel-management.html (2015)
The function of Human resource management in contributing to organizational purpose:
HRM play an important role on Human resource management planning the organization, they will doing a research and analyze what the implement needed for the whole organization & then establish an objective before planning and design the policies to fulfill the organization’s needed which related to contributing to the strategy plan.
For example: Doing a research and analyze the market trend and the demand on the beauty product of the consumer, doing analysis on the different types of customer’s spending power and any beauty equipment needed to supply in the company for increasing company’s profit and monitor the target. Besides, Human resource management will collect the information and analysis the reasons of employee’s leaving for doing implement and improvement to avoid turnover to maintain enough worker for running the business every day.
Besides, Human resource management will provide training and development to the employees to develop their talent & skills in order to increase their product knowledge in the fast trend market.
For example: provide training about facial and massage knowledge for the employees. And encourage the employees to join the beauty exhibition to increase their knowledge and interest in their job. And launch a seminar when there’s a new product in the market to provide update information to the staff in order to increase company’s market competitiveness and provide better service to the consumer as possible.
Human resource management will design and establish the policies and technique which related to performance management to assess the employee’s working performance.
For example, Human resource management can set a selling target per month, inform and involve the employee’s in this technique to motivate them. And then collect the data and information from the line manager to analysis the effectiveness of this technique and analysis any improvement needed for the employees.
Task 1.2 )
The role and responsibilities of sales manager in human resource management:
Recruitment and selection:
Involve prepare and carry out the interview for selecting the right candidates for their own department.
For example: prepare the task to the candidate and analysis if he/she is suitable for this position.
Learning and talent development:
Involve in planning and provide the training which related to the job to fulfill the needs in their own department. And provide relevant information to Human resource management in need.
For example: When the sales manager discover that their teammates are lacking confidence , they may plan and provide training in communication to the employee’s to increase their communication skill and contribute them to interact with customers and thus build up their confidence.
Motivating workers and achieve improved performance:
Sales manager may negotiate with their team to set a selling target in order to motivate the employee’s working performance and forming high-performance workplace. The company can provide gift and bonus when the employees achieve the target.
Negotiation
Involve in negotiate with their teammate when they leaving, analysis the reasons for leaving and determine any improvement that HRM can do to avoid churn.
https://www2.warwick.ac.uk/fac/soc/wbs/research/irru/publications/recentconf/juan_-_edw_-_lest.pdf , (Scott et al., 2009 )
Task 1.3 )
The impact of legal and regulatory framework on Human resource management:
-Maternity leave: The duration of maternity leave and payment of the state social insurance allowance in the amount equal to full wage for women working in the mountains irrespective of their time record are established. For example: Women who adopted a child under three months old are entitled to maternity leave of 70 calendar days (84 days in case of adoption of two or more children) since the date of adoption, the state social insurance allowance to be paid for that period.
-Equal pay act to make sure everyone should have the treatment fairly, for example: benefit, salary, treatment, working opportunities.
-National minimum wage – company should follow as the government policies to pay the salary in the minimum amount per hour in the country.
-Data protection act -make sure the data about the workers is used to proceed for confidential purpose only and the data will not be kept longer than necessary, and make sure the data will be used and transferred with adequate protection in order to protect the worker’s privacy
-The Prohibition against labor discrimination: Each person shall have the equal possibilitiesto exercise labor rights and freedoms.No one must be limited in their labor rights or be privileged in the exercise of such rights due to their sex, race, ethnicity, language, origin , property and official status, age, place of residence, religion and political convictions, membership in public organizations.
http://www.academia.edu/7079265/Analyze_the_impact_of_the_legal_and_regulatory
( Nora Azygalieva,2015)
Task 2.1 )
Below is Human resource management planning process at the beauty industry:
Firstly, we should scan the external environment, for example: Government influences, Economic condition & Geographic & competitive concerns which will affect the labor supply and affect HR planning because other company in the same industry must draws from the same labor market and case labor market competition.
Government influences:
We should consider the government policies and legislation, for example: labor law, tax law, equal employment law before doing HR planning as it will affect labor supply.
For example: Human resource management needs to follow the government legislation before establishing the policies about the holidays, wages & Overtime payment.
Economic conditions:
Human resource management needs to collect the data, analysis the global economic growth, inflation & interest rate to determine the organizational planning and objective. Based on this economic factors, Human resource management determines the quantity of employee they should hire or lay off in need , and the employee’s wages , the need for overtime to offer competitive wage and benefit to attract the right person and avoid employee’s leaving .
For example : When Human resource management done a research and get the information that the economic will be downturn in coming this year and the company profit is declining now , Human resource management needs to analysis and determine whether cut costs or lay off the employee is needed ? or any other planning needed to implement to maintain the company’s business development and increase company’s profit ?
Geographic relocation:
When Human resource is going to expand our beauty business in other countries, such as build a branch office in china, they may need to consider if the employees are willing to accept geographic relocation to work in another country. However, nowadays, lots of people are reluctant to accept those geographic which is one of the impacts for Human resource management to change their Human resource planning and policies development.
Direct competitor and international competition:
Human resource management should do a research and consider the labor market competition to offer pay scales and competitive benefit compare to other same industry, as underpaying may cause employee’s leaving and lower quality workforce formed and affect the labor supply in the company.
Secondly, doing an internal analysis of jobs and skill of employees, and then create skill inventory about the employees which including their education background, abilities, working experience and ages.
And then Human resource management can group the information and develop workforce profile which can show the strengths and weaknesses of the organizations. For example, if we find lots of employees with less working experience and lacks knowledge of using beauty equipment, Human resource management will plan a training to increase their relevant knowledge to meet a future condition or planning to hire some senior / professional worker to fulfill the demand.
Thirdly, Human resource management will use the information to forecast the demand and the needs of Human resource management for the organization. And analyzing and considering the government regulation on beauty industry, the amount of workers entering and leaving the workforce and economic condition in the coming few years to forecast the external supply .And also considering the promotion and retirement policies to forecast the internal supply.
Then, Human resource management can develop the objective after forecasting the HR demand and supply.
Fourthly, after analysis an organization’s needs, Human resource management needs to adjust the workforce. If the supply exceeded the demand in the company, Human resource management will manage a surplus of employees. For example: When there’re an employee quit or retire in the company, their position is not replaced and their workload will be shared and handled with others. Or the company can provide incentive and the additional payment to encourage some senior workers to leave the company for early retirement.
When the demand exceeded the supply, Human resource management will increase the number of right employees via recruitment & training.
Finally, Human resource management will control and evaluate the Human resource programs to assess the effectiveness of Human resource planning.
For example: if the staff levels are matched to the requirements, if the company productivity and selling target can meet the organization’s objective?
If the effectiveness and success of the programs met the expected? If the cost expenses using in the programs over the budget?
http://www.ehow.com/how-does_5135285_steps-human-resource-planning-process.html , Alfred (Sarkissian , 2015)
http://hrcouncil.ca/hr-toolkit/planning-strategic.cfm
The importance of Human resource planning in the beauty industry:
Matching the employee’s skills to the company in order to fulfill the organization’s needs, and planning to ensure have enough manpower for running the business every day. Human resource management have a good understanding in Human resource planning which can plan the workers effectively in a professional method .
http://smallbusiness.chron.com/importance-planning-organization-1137.html (Brian Hill, 2015)
The reasons for the beauty industry to undertake Human resource planning:
For the organizational purpose to estimate the effect of changes, such as company expansion and diversification to increase the business, company contraction which affects the demand of labor.
Changing employee’s skill to affect the Human resource planning related the organization goal. For example: it’s very important for the employees to have a good understanding in using beauty equipment and beauty product knowledge and which are changing at a fast rate, thus Human resource department will develop relevant training to install the updated information and knowledge to the employees as they are expected to understanding the updated information for working.
Analysis the employees turnover reasons can determine what Human resource management should do for improvement to avoid employee’s leaving which can control the labor cost and company’s profitability.
If the economic downturn , but the company still need enough employee’s for running the business , then HRM may seek short-term labor to fulfill the temporary work , otherwise , HRM will use long term labor when the company plans with a long term growth and development.
Matching the skills to workforce in order to fulfill the organization’s needs, and planning to ensure have enough manpower for running the business every day. HRM have a good understanding in HR planning which can help them to plan the workers effectively in a professional method.
http://www.ehow.com/list_6550788_reasons-human-resource-planning.html (Terry Mann ,2015 )
Task 2.2)
Compare and contrast the recruitment and selection processes of two organizations- beauty industry and Fashion industry:
The same recruitment & selection process of the two organizations- beauty industry and Fashion industry are:
Both the organization should specify the objectives of recruitment to fulfill the vacancies with right person for the organization’s needs fairly, for example: beauty industry needs the hire the employees with relevant experience in beauty field and should with good understanding in beauty and equipment knowledge.
Fashion industry, the objective may be hire employees with fashion design experience and need strong fashion sense.
Analysis the jobs in detail and assess the knowledge & skills needs for the job and doing appraisal to assess if the employees met the requirements.
Describe the jobs, such as job title, job duties, job’s authority and responsibilities for the candidate’s easy reference and comparison.
Choosing appropriate media for job’s advertising and considering the duration of the fair recruitment process based on the type of organization and job .
For example : HR plans to hire the employments with strong selling skill and cosmetic product knowledge for both Beauty industry and fashion industry, they can advertise on some publication and newspaper , such as job’s recruitment ,doing online recruitment or through employee’s referrals to reach the right person to apply for the jobs . Otherwise, Human resource management can transfer to private employment agencies for reaching qualified person in labor market to fulfill the vacancy if the whole process does not over the budget.
Prepare and analysis the content of the advertisement, such as the job title , job’s detail and working location ,company benefits and offer , qualifications and requirements ,the ways of application, deadline .
After scanning the CV and letter of all applicants, HRM will choose the qualified applicants to attend the interview which can provide a chance for the employer to assess their personnel behavior, communications skill as well as arranging the technique test for applicant.
And we can arrange a series of psychometric testing to applicant for selection purpose.
Certainly, we can request the applicant to provide their references letter for our reference which including their previous working information for considering, for example: job’s title, employment period, and the opinions from previous employers.
The difference recruitment and selection process of the two organization- beauty industry and Fashion industry are:
The job requirements & selection for the two organizations will be the difference, for example: Having beauty knowledge and skills is must for apply the job in the beauty industry, but it need to have a fashion sense and fashion technique for applying the job in the fashion industry.
The procedure during the interview is difference, for example: HR may access the applicant’s working ability by asking their knowledge about using the beauty products and equipment in beauty industry.
And access the applicant’s fashion sense and relevant experience with fashion technique during the interview.
Task 3.1)
“ Job evaluation “ is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.
https://en.wikipedia.org/wiki/Job_evaluation (Wikipedia , 2015)
Human resource management can use ranking method to implement “ Job evaluation “ in the beauty industry ,the jobs are arranged from highest to lowest to rank all the job’s value in the company which is easy for understanding and suitable for small company , please find below ranking for the beauty industry :
Month salary :
Sales Director : 35K-45K
Sales manager : 25K -35K
Sales : 18K-20K
Shipping supervisor : 18K-23K
Shipping clerk : 11K-12K
Junior clerk : 9K-10K
Reception : 8K-9K
And Human resource management can use another way– classification method to implement “ Job evaluation “ in the beauty industry ,
all jobs will be separate and placed into job classes in this method which is easy for understanding and consider all the factors that the jobs including , below is the classification for the company :
Class : Rank : Employees :
Class I Executive Sales director , sales manager
Class II Skilled workers Sales
Class III Semi – skilled workers Shipping supervisor
Class IV Less skilled workers Shipping clerk , junior clerk & reception
Moreover, below are the factors which also affect the pay rate in the company:
-Employee’s performance
Establish a probation (about 3 months) for the employment to observe the employee’s performance and working ability to determine whether they are suitable for this jobs.
Mark record in details when the employee’s attitude was improper or violated the company’s policies
Doing appraisal in the end of each year to assess the working performance of the employees.
-Profitability made in the company
Setting the goals which is linked to the organization’s strategy and then specific the goals clearly for measuring if the employees achieved the goal .
For example : HRM can set a selling target and company profit clearly for the coming 6 months to measure the employee’s performance and whether they can complete the goal and increase the company’s profit .
-Skill & working experience is another point that can affect the pay rate, for example: 2 employees with similar education background, but one of them with 4 years of relevant working experience in beauty field, but another one is fresh graduated . Thus, the salary provided to the one with working experience should be higher than another one less experience.
http://www.salary.com/eight-factors-that-can-affect-your-pay/slide/4/
Task 3.2)
Below are two methods which can be used to monitor the employee’s performance in the beauty industry:
-Proceeding periodic review
Firstly notify the employees & schedule the review in advance, and then ask the employees to prepare a formal annual performance appraisal for reviewing her working performance & development’s goal.
Sales manger review the employee’s performance once the annual appraisal formed and to determine what changes is needed when the performance is under the expectations. Manager / supervisors can arrange the appraisal interview to communicate with the employees, for example: deal with employee’s to find out their feeling & comments in working, dealing with the disagreement in order to understand & analysis the grievances they have and what should do for improvement in order to motivate & improve the employee’s working performance.
– Peer appraisal
Peers often have opinions about the staff performance, which has led some entities to implement peer appraisals. Appraisals are tracked on sheets or in a database and provide a valuable source of feedback for the staff and the sales managers. Appraisals can be tracked over multiple reporting periods to trend data, which helps identify favorable and unfavorable patterns of behavior. Although peer appraisals are subjective and prone to bias, they still provide a viable means to measure and track the staff’s performance
http://smallbusiness.chron.com/methods-tracking-performance-78774.html (Joseph DeBenedetti ,2015)
Task 3.3 )
The effectiveness of the reward system in the beauty industry:
Beauty industry can use both positive reinforcement and negative reinforcement to motivate the employees. Sales managers can use positive motivation techniques to encourage the employees to produce more and better quality work. For example, beauty industry can select an employee as
“employee of the week.” This technique praises the winning employee, while positively encouraging other employees to keep trying to do well. And the sales managers believe negative reinforcement motivates employees to stop the bad behavior. For example, beauty industry may issue a written warning system, or threaten employees with termination to get them to perform a certain way.
Beauty industry can reward their employees with both tangible goods, as well as praise. For example, a sales department may offer a monthly bonus to the highest earner. Not all tangible rewards come in the form of money. And they can host free lunches, or give away company gear to good staff .Sales managers choose to reward their best employees by simply praising them for a job well done, or by recognizing the hard work they put in to a project.
The advantages of using positive reinforcement to motivate employees, sales manager may build a good relationship with their employee that fosters a sense of trust. In a good manager -subordinate relationship, employees may feel respected and comfortable in their working environment. Providing rewards, both tangible and in the form of praise which can make the employees happier. Happier employees often perform better at work.
http://zh.scribd.com/doc/215265197/Effectiveness-of-Reward-System-on-Employee-Motivation#scribd ( sandsoni , 2002 )
Providing the attractive rewards can motivate the employees & fulfill their needs effectively:
-Provision of bonus & double pay , Vehicle allowance (cash) , OT allowance (cash) & staff discount which can provide the basic of financial rewards to fulfill the employee’s physiological needs & provide them with a good standard of living .
-Medical claim , health care insurance , safety environment , long term employment , and follow the government legislation to provide MPF for long term workers which can provide the job security for the employees .
-Provision of holiday, & travel allowance with family & colleague, annual dinner can enrich the employee’s social circle & lifestyle.
– Provision of good working opportunities, fair treatment & without bias can increase the employee’s self –esteem.
-Enough Training & development opportunities, encourage employee’s study, provide study allowance can fulfill self – actualizing needs for the employees.
Task 4 )
The exit procedure used in the beauty industry:
Once a staff provides notice that they are leaving the company, the staff will submit a written resignation to the sales manager and Human Resource department with a minimum once month notice , then the sales manager should contact the Human Resources about the pending employee separation and request that the exit interview process is initiated , and the sales manager should provide the employee’s name, contact in-formation and last date of employment to Human Resource department , and then Human Resource de-partment will write to the employee offering the staff who want to resign an exit interview and enclosing an exit interview questionnaire for them to complete in preparation for the interview . Then Human Re-source department will contact the employee and ask them to participate in the exit interview process. If the employee agrees to participate, they will be provided with the option of participating in a face to face inter-view. Then, Human Resources will attempt to conduct exit interviews for all employees who voluntarily separate from the company including employees leaving appointed positions. Then, the exit interview is designed to solicit information from exiting employees about themselves, the beauty industry t and man-agement. Additionally, the interview will ask about satisfaction levels with different aspects of the organi-zation that may have influenced their decision to leave the company. Exit interviews are confidential and will be used by Human Resources to identify trends as to why the staffs are leaving and which may lead to changes in employment practices designed to improve the working environment and improve employee retention. Finally, company make sure the insurance coverage , such as : dental , health , disability and life case in the last day of the month in which the staff is in a pay status , and company will also request and verify that all company property, such as uniform , beauty equipment all have been returned.
http://www.ci.minneapolis.mn.us/policies/policies_exit-interview-procedure
The exit procedure in fashion industry:
Once a staff provides notice that they are leaving the company, the staff will submit a written resignation to the sales manager and Human Resource department with a minimum once month notice, but the fashion industry do not conduct exit interview for records, and the company just have a formality of the resignation letter to be submitted on a one month notice. Then, the staff is approved to leave the company and greeted with thank you for working in the company for the certain period they have been dedicated to the company.
The reasons that employment could cease with the beauty industry:
Capability: when the staffs were found that they do not have the ability to do the jobs, such as cannot reach the selling target even working for a long time and cannot provide a good service for customers and complaint by customer, they may prove to be incapable of doing the job required because of lacking the required level of selling skill and beauty knowledge,
Retirement: Some senior staff with higher age and they want to retire as the retirement age is 65, they will cease the employment.
Contract of Employment : The employment could be ceased while the contract is expired and the staffs is following the rules and regulations as mentioned in the contract , finally , the cessation of the employment is caused .
The details of legislation / regulation that have had an impact on the employment cessation arrangements of the beauty industry:
Regarding the termination of employment, both employer and employees should follow the initial period of employment which provided by labor law , for example : company should follow the legislation to provide the probation ( 60 days ) to the new staffs to see whether the staff is suitable for the jobs , and the company must provide 30 days minimum notice to the staffs after the probation if want to terminate the employment , also the company need to give the reasons for the termination which must relate to the employee’s work .For example : if the staff failing to carry out their basic duties under the employment contract , or making an big fault during the working to cause a big damage to the company , then company may want to determine their employment since they find the staff is unable to do the job and do not suitable for this job .
And any kinds of discriminations are prohibited in the company, such as: gender , race , nationality ,ethnic , ages . Company cannot terminated the employment owing to their gender, race, nationality, ethnic and ages .
Conclusion :
There’s mainly difference in managing people, training and development and decision made between the personnel management and Human resource management .
Human resource management is very important for the HR planning in the organization as they will doing a research and analyze what the implement needed for the whole organization & then establish an objective before planning and design the policies to fulfill the organization’s needed which related to contributing to the strategy plan. And the reasons for the beauty industry to undertake HR planning are changing employ-ee’s skill to affect the HR planning related the organization goal , analysis the employees turnover reasons can determine what HRM should do for improvement, ensure company have enough employee’s for run-ning the business, and matching the skills to workforce in order to fulfill the organization’s needs
The impact of legal and regulatory framework on HRM are maternity leave, equal pay act to make sure everyone should have the treatment fairly, national minimum wage, data protection act , Prohibition against labor discrimination.
HR planning process at the beauty industry includes : Firstly scan the external environment , and doing internal analysis of jobs , then HRM use the information to forecast the demand and the needs of HRM for the organization , HRM need to adjust the workforce after analysis an organization’s needs. Finally, HRM will control and evaluate the HR programs to assess the effectiveness of HR planning.
And it involves a wide range of concepts, regulations and knowledge during human resource planning and processing .