HRM is essential element in organization which helps in reaching desired goals. It is the management function designed by corporate entities for selecting, attracting, rewarding of employees. British gas is a reputed company of petroleum sector which deal in various kids of energy products. The report helps in understanding the difference between HRM and personal management. It also explains HRM policies adopted by British gas and their impact on organization success.
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TASK 1 HR MANAGEMENT
1.1 Distinguish between personal management and HR management
Personal management and human resource management both are related to employee management in the organization, but there are some philosophical changes exist in between.PM is somewhat related to following the employment low and dealing with payroll policies. In contrast, Human resource management has a wider concept and is related to managing and controlling workforce. HRM function directly contributes in success of organization. In the present era HRM is accountable to incorporate all the task of personal management (Grobler and Warnich, 2006). It motivated workforce to increase the reputation of company and maximise organizational effectiveness. HRM is a proactive function on the other hand Personal management is reactive. Human resource management focused on continuous development of policies while the second one is considering as self – regulatory function of organization. HRM always seeks for development of organization while encouraging the personal and professional development of employees. In personal management organization has single responsibility of personal development but in HRM all managers of different department works together towards a similar goal. British Gas, has various department which works one together with the aim of employee effectiveness and productivity, hence it can be said that company in performing human resource management task.
1.2 Functions of HRM
Human resource management is accountable for recruiting, compensating, providing trainings, development of leadership and so on. Following points explains the various functions of HRM.
- Recruitment and selection
- Training and developments
- Benefits and Compensations
- Development of effective policies
- Personal administration
- Ensuring Legal Compliance
The various functions of HRM play a significance role in managing human resource capital which supports organization to become efficient internally and to remain competitive in market place. With and selecting policies supports in choosing right candidate for the right place. Training and development are the essential functions of HRM that are focusing on continuous investment to providing training to employees. This function is directly linked with organizational performance. Well trained employees will give better performance outcomes to company overall the business will reach improved performance outcomes (Paauwe, 2004). The functions of HRM are based on trust and mutual understanding, management ensure employees to provide development opportunities. IN British Gas provides job training as well as refresher trainings to newly hirers. The training and development programmes help in truing employees in into company’s assets (Hollenbeck, Gerhart and Wright, 2004). The opportunity of personal and career growth provided by organization helps in gaining employee loyalty. British Gas needs to provide professional leadership training to manager so they can contribute in achieving desired goals. Another function of HRM is to provide benefits and compensation to workforce which allows business to achieve employee retention. Attractive payrolls packages help in attracting talent pools in the organization. The major task of HRM is to make aware management team with the various employments laws and employ policies that are beneficial to employees as well as organization (Dowling, Festing and Engle, 2008).
1.3 Role and responsibilities of line managers in British Gas
Every employee in the organization has to reports line managers at the end of each task given to them. The responsibility of line managers is to inform the top management about individual employee and its performance status. These managers work as bottom line managers and monitor the performance of workforce and gives reports to department head. Management of British Gas includes various departments and it has single line managers of each department (Guest, 2011). Line manager are responsible of recruitment process as it provides information of need of workforce for a special task to Hr department them HR department decides the conducts interviews. The interviews of various candidates are to be taken by line managers, in this way the accountability of selecting suitable candidate in British Gas lies with such managers. After selecting a candidate they arrange training for them. In the organization employees are trained in two ways such on the job trainings and off the job trainings (Saari and Judge, 2004). On the job training are to be given be line managers themselves on the other hand to arrange off the job training they have to communicate with HR department. Line managers monitor the performance of workers and access their need of training. If any employee needs any kind of training they ask management for providing resources to improve effective of workers. Such managers are accountable for day to day people management, quality checking, measuring operational performance, supervising and so on.
1.4 The Equality Act 2010 has meant some changes to employment legislation
The major aim behind introduction Equality Act 2010 is to strengthen the law which support progress of equality practices in organization. According to the Equality Act 2010 there has not to be any discrimination between employee on their cast creed and believes. The all need to given chance to be selected in the company and discrimination as per gender has also to be avoided in the organization. British Gas adopted all the legal policies of Equality Act 2010 and respects the feeling of existing and potential employees. HR policies of company such as recruitment and selection, rewarding workforce, trainings and so on are designed while following the regulations of Equality Act 2010 act. It supports company in attracting and retaining talent pools. In respect to BG, where all the employees are working with equal efforts and consideration, this law is effective and applicable. As per this act, all the employee should be treated with equal wages and should be motivated with the equaility. There shouls not be any difference made in treating them with any differernece. Moreover, at BG, there are various functiosn which are mainly performed by male, but the allocation of activities shouyld be made so effective in respect to female staff in this organisation.
TASK 2 RECRUITMENT AND SELECTION
2.1 An outline of the stages involved in HR planning within British Gas
Human resource planning is the process indentifying the needs to human resources in the organization and designing the strategies to meet such demand. Business need to conduct proper internal and external assessment of HR needs and supply.
Stages involved in Human resource planning of British Gas
Accessing human resources: Human resource planning is starts with internal and external analysis. Business unit access the current HR inventory level, which helps in determine the internal strengths and weakness of human capital as well opportunities and threats of performing job analysis. In BG, every aspect of exusting manpower are measured and evakluate so that effective allocation of work practices can be given and allotted.
Demand forecasting: After having proper human capital assessment next step is forecast the demand of human resource. It refers to the process of determining future needs of HR in terms of quality and quantity. The management for through the plans and procedures of company and decide the need (Jackson, Schuler and Werner, 2011). At BG, it is very important to discuss the requirements for leading team of manpower in appropriate manner. Wirth the help of propoer management at BG, this practice can be made by forecasting needs in advance.
Supply forecasting: Supply of human resource refers to fill the vacant post with suitable candidate. To meet the need of human capital British Gas use both internal and external sources of recruitment such as promotions and recruitment of fresh candidates. At BG, this is a complete process, which is achieved with the proper recruitmnet process.
Matching demand with supply: Matching demand with supply is considered as the bringing supply and forecast at an equilibrium positions. The company focuses on shortages and over staffing position it also gives the information about sources of recruitment (Cardon and Stevens, 2004). At BG, this process is made effective with the achievement of matching demand of manpower at BG with the supply made.
Action plan: This is the last stage where HR plans are to be executed to attract talent pools in the organization. In this stage HR manager controls and evaluates whether planning policies meets with HR objectives or not. At BG, the action plans for effective HR planning is achieved by implementation of procedures and policies laid down for recruitment and selection.
Being a largest energy supplier human resource planning is very essential in British Gas. The am behind adopting HRP is to remain competitive in energy industry. The consumers of energy product have a dynamic nature and they always look for quality and standard services. To fulfil the needs of clients and to gain customer loyalty business needs highly skilled labour with expertise in energy products. HRP helps in designing the policies to attract and retain employees in organization. Once a candidate is selected it had to be given training to his / her performance area. It also helps in encouraging British Gas employees for learning new technologies (Price, 2011). The company offers quality services at competitive prices. To perform the technical task organization need a highly skilled team of engineers. Human resource planning will help organization in conducting job analysis and in designing job description and job specific. Business can also formulate promotional policies for the workforce. HR planning can help in recruiting top class engineers and this will a cost effective way to recruit employees. If company recruit suitable and quality employees it will have to pay less for training, thus the cost cutting will be possible. In this ways it can be said that with the help of human resource planning British Gas can make more profits and also can maintain high standard of services.
2.2 Compare the current recruitment and selection processes for British Gas
Recruitment is the process of attracting talented candidate on the other hand selection is refereed as choosing a best employee among them. This process helps organization in having right candidate for a write job. Wherever, in the British Gas, need of human capital occurs, management put the advertisement in newspapers or company’s websites. The candidates are asked for dropping online application. After receiving the application they replay to candidate and give them information of receiving applications. Recruitment teams and managers reviews the applications as per requires skills and educational qualifications. After that HR manager make a call to selected candidate for taking a telephonic interview (Kaplan and Norton, 2004). Most of time, company conducts interview in its central assessment venues. At this stage candidate is asked for bring their licences, address proofs.In this interview behavioural and technical expertise of candidate are to be judged. The result of interview will be passed over the telephones. Company stores the data of unsuccessful candidates to future use for filling vacant post. After selecting candidates their medical and criminal record is to be accessed and then successful candidate are enrolled for training. EDP is a company of energy sector and its recruitment and selection process is different from British Gas. The management do not taker CV and candidate have to apply online. After making online application recruitment team arranges interviews of candidates. The interview will be taken face to face and some job related questions are to be asked. Further process is same as British gas but ERP sends feedbacks to unsuccessful candidates that can be helpful for future interview.
The aim of conducting recruitment policies of both companies is to recruit outstanding and dynamic employees. With the aim of providing best service to their clients both the companies are trying to attract technical employees such as engineers. The recruitment and selection procedure is cost effective and. They conduct screening of application and chose only eligible person (Armstrong and Taylor, 2014). Both the companies have procedures such as position, attracting candidate, pre-screen, testing and evaluation, interview; reference checking, providing job offers and last successful placement. Optional client interview and site tour in not involved, in selection and recruitment process of both the companies (Chelladurai, 2006). The policies benefit the company in accessing right candidate for right place. Both the company take time to appointing candidate which can help in help in selecting a best candidate in a cost effective way.
TASK 3 - REWARD AND MOTIVATION
3.1 Evaluate the process of job evaluation‘within British Gas
Job evolution is the process of systematic comparison between jobs and their relative worth. The purpose behind to conduct job evolution is to design rational pay structure. The process of job evolution starts with job evolution and finishes at the point where the worth of a job is accessed. It helps British Gas in analysing the worth of a job over other work and supports in achieving pay equity between jobs. It is not a tool to fix the pay structure but it provides basis for rational wages structure. Job evaluation helps to determine satisfactory wages differentials among jobs where performance appraisal helps award pay increase to employees who shoe improved performances (Schuler and Jackson, 2008).
Job evolution process of British Gas has following steps such as
- Gaining acceptance
- Creating job evaluation committee
- Finding the jobs to be evaluated
- Analysis and preparing job description
- Selecting the method of evaluation
- Classifying of jobs
- Deciding the pay scale
Organization has two factors which determine the pay scale to employees such as internal and external factors while considering the factors such of labour market, cost of living and government legislations decides the pay scale of employees. The most important factor which determines the pay scale in British Gas is performance appraisal. The management provides salaries as per individual performance and capabilities. The organization need to establish performance standards and should communicate the standards to each employee which will help it in measuring the actual performance with the expected one. To monitor the employee performance they can appoint supervisors at every level (Dess, Lumpkin and Eisner, 2006).
At BG, this practice is implemented with the Equity Theory of workplace motivation. This theory is based on the premise taht employees come down to an equilibrium level when the level of input become equal to output.
- Effort and enthusiasm
- Skills and abilities
- Flexibility and adaptability
- Loyalty and commitment to the organization
- Financial compensation
- Praise and recognition
- Additional responsibility and autonomy
- Job security
- A sense of career advancement or personal growth
According to this theory, equity theory is when the input outcomes of employess working at BG becomes equal to outputs. When they feel equitable level to the reward achievement, the factors such as job satisfaction, workplace behavior and low employee morale can be achieved.
3.2 Assess motivation theory within the context of British Gas
British Gas has maintained an image of largest and best quality service provider in UK energy market. To maintain this image company need support from its employees in terms of higher performance and productivity. In order to motivate the workforce company has to identify needs of individual employee. There is a positive relationship between employee motivation and reward system. Management can motivate employees using monetary and non monetary reward system through which it can gain higher employee performance. According to the existing employees of organization, the reward system in the organization is not in a ways to motivate them as the organization takes a long time to promote employees. The business need has to improve promotion schemes and employee is to be promoted as per their performance. As and financial rewards employees can be offered attractive pay scales , perks, expenses, bonus and commission, overtime benefits, pension agreement and so on. On contrary monetary rewards includes reputation, social -recognition, praise, thanks, accountability and training & development opportunities. Performance based appraisal system is to be introduced in which incentives and bonus will be provided as per the individual productivity (Armstrong and Taylor, 2014). There is a lack of communication in the British Gas which is a main barrier of employee motivation. It needs to communicate reward to employee through a proper ceremony in particular time period. Organization can also arrange award for best employee of the year, in these employees can be better motivated (Odina, 2014). To achieve employee motivation in different situations British Gas has to consider “Equity theory”. The company is suggested to appoint managers that will prepare the report on individual performance so there can be a fair reward system. HRM system will have to design three kinds of rewards system such as profit sharing, job evolution and merits rating with the aim of achieve employee motivation in the organization.
TASK 4 - EMPLOYEE EXIT PROCEDURES
4.1 Identify reasons for leaving the organisations
There are various reasons for the cessation of the employment in the British Gas which are very important to study. Some of the main reasons are resignation, layoff, mergers, buyout, poor performance, bribe, etc.
Resignation- Employees can give resignation for the different reasons it may be personal or any problem in the office. But before leaving the office it is very important to provide a notice period and also have to attend the exit interview so that the main reason of the resignation can be known. After all this he has to provide written resignation documents.
Layoffs- It is also one of the many problems as many times companies are not able to make the desired profits and because of that they are asked to leave the organization. There are many reasons like if the company is facing any financial problems or the particular job is no longer required in the company, it may be layoff of the employees in the fair and the honest ways.
Mergers/Buyouts- If the British Gas merge with any other company or they buyout any companies, employees may lost their jobs by giving some of the amount.
For case- Any employee could be terminated if he violated made by the British Gas or could have jeopardize the laws made by the company.
1. Partial Termination
- It may be because the employee has given the resignation to the department with 4 week notice
- Employee has to give the secret exit interview so that the cause of the exit can be known
- Employee has to fill up a particular form regarding the retires system returns
- Employee has to return his badge to the HRM department
- Tax sheltered annuity of the deferred compensation plan
- Unemployment compensation has to be given
It has been analysed that BG and EDF uses partial termination as a tool so that employees may learn about the effective achievemnt of loopholes made prior to the work process. Moreover, this is a way to evaluate the acting employee on behalf of staff who is terminated.
- Person has to apply for retirement
- Complete health and dental insurance is checked
- All the social security benefits are checked
It has been evaluated that by following retiremnet as a procedure by BG and EDF, the opportunities for new employes can be developed. It is alos a way to seek the leadrning and arena of motivation to more broader level.
- In case of dismissal he has to follow all the steps as stated in the above process
- In case of the death of an employee who has been terminated or retired for the less than 90 days, department has to inform the HR service centre.
There are different legal and employment acts on the employment. When any new person is employed both the parties have to sign on some legal documents regarding the job. It is very difficult to cease the employees immediately as employer has to follow some of the rules before ceasing. If any employee is found doing something wrong then HR can take some of the immediate steps to cease the employee. If the employee does not any reason for his ceasing then he can easily apply again to consider his case and the ceasing procedure is found illegal then HR will be have to face legal proceedings.
Human resource management is an integral part of business which ensures company to manage employees in an effective way. The report aims to explain the human resource practices of adopted by British Gas an energy company of UK. It also discuses HRM policies adopted by British Gas and their impact on organizatio