Investigate how Human Resources is managed within Delta International Book Wholesalers Ltd.

Authors Avatar

David Clayton

Introduction

        I have been assigned to write a formal report on the way in which Human Resources is managed within a medium/large sized company.

        In order to complete this assignment I have chosen to investigate how Human Resources is managed within Delta International Book Wholesalers Ltd.

        Delta currently employs around 300 staff.  I chose this company because I know a member of staff and have always received a positive response when making general enquiries into the organisation and how business is conducted.

E1, Functions of the Human Resource Department

        There are four distinctive functions for which the Human Resource Department is ultimately responsible. They are:

  1. Manpower Planning
  2. Recruitment and selection
  3. Training and development
  4. Performance management: appraisals

I will clearly explain each of these functions and their importance to the business.

1. Manpower Planning

        Manpower planning is the activity of management, which is aimed at coordinating the requirements for and the availability of different types of employee.

        It encourages the business to develop clear links between their business and HR plans so that the two can be integrated as effectively as possible.  It also allows the company to control staff costs and numbers employed effectively.

        Manpower planning has allowed the company to develop a ‘skill profile’ for each of its employees.  They may now be designated to the areas in which they have proved to be most valuable to the organisation.

        Having a staff database provides the company with information necessary for the operation of an Equal Opportunities policy.

        If manpower planning works properly staff will be fully utilised to the benefit of the organisation.  Staff will do challenging work, which they find motivating and stimulating and overtime will only be done when it is vitally necessary.  Staff will always be properly qualified to do the job for which they are allocated.

2. Recruitment and selection

        One of the most important responsibilities of the Human Resource Department is recruiting and selecting new employees.  Without employing the right people, the organisation will be unable to operate efficiently or satisfy the needs of customers.

        The organisation must employ effective recruitment and selection techniques, so that the organisation can make sure it can achieve these objectives.

        

3. Training and development

        A general definition of training is the acquisition of a body or knowledge of skills, which may be applied to do a particular job.  

        There are a number of major benefits that arise as a result of effective training.  It should make the organisation more competitive, improving productivity and service to customers.  In many cases, training can prove to be less costly in the long run, than recruiting fully trained workers externally.  Training can be used to implement the right attitudes in employees, which can often be as important as knowledge or skills.  The long-term benefits of training outweigh short-run costs for all sorts of reasons, such as higher morale amongst the workforce, higher skill and knowledge levels, lower labour turnover and reduced recruitment costs.  Improved efficiency can be achieved as a result of cost savings due to reduced wastage, improved delivery performance, improved quality, reliability and flexibility of the workforce.  Many employees welcome the opportunity to engage in training because they see it is adding to their own motivation and enjoyment of work.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

        Employee development may be defined as a course of action designed to enable an employee to realise his or her potential for growth in the organisation.

        Development approaches the individual and his or her motivation from a different angle than that of training. While training is aimed at ensuring an employee has the basic knowledge of skills to do a particular job, development is more concerned with enabling employees to develop themselves in the best way that suits their individual needs. It is generally hoped that the two merge, and that by helping employees to develop themselves, they will be more inclined and better equipped to help the organisation in meeting its objectives.

4. Performance management: appraisals (E6)

        In order to achieve criteria E6, I have included a more in-depth explanation of performance management, examples of how the work is carried out and how its contribution to the business is evaluated.

         Within Delta, the regular and systematic assessment of a persons work is commonplace.  It is welcomed by both managers employees so long as it is done fairly, managers are properly trained how to do it, and the process is fully explained to everyone concerned.

        This is known as a performance appraisal and will normally be carried out by a jobholder’s immediate superior.

        The person who appraises is known as the ‘appraiser’, and the person being appraised is the ‘appraisee’.

        The usual procedure is that firstly, the appraiser will write an appraisal report of the appraisee.  This will normally be done using a form with questions and spaces to complete or by using a rating form where the appraiser will give a rating out of ten for different aspects of the appraisees work.  The essential features of an appraisal report will include an examination of the strengths and weaknesses of an employee and the advice given to the employee in relation to his or her future performance.  An action plan may be devised listing key objectives, which are to be achieved by the appraisee.

        Secondly, the appraisal report will be discussed with the appraisee at an interview.  This is called ‘open appraisal’, as the appraisee has the opportunity to discuss the points raised with the manager as the interview takes place.  Sometimes a ‘two way’ appraisal will take place. This is where the employee is asked to do an appraisal of himself/herself, using an identical form to that of the appraiser.  The forms are then compared and where there are any clear differences there must be more discussion between them.

        Appraisals normally take place once or twice a year and for those employees that work in customer facing areas it is normally conducted every three months.  The more often it is done the better.

        Performance appraisal helps to identify training needs.  It may also reveal other problems, for example, an employee may be having problems communicating with certain members of staff, as a result of sexual or racial harassment.  It could be said that performance appraisals improve communications between employees and managers.  It demonstrates a superiors’ commitment to getting the best performance out of employees and constant encouragement along with praise for doing a good job will motivate the workforce.  Employees are more likely to respond to a vested interest in high quality performance on a day-to-day basis, especially if it is likely to be recognised as part of an appraisal.  They may also be unwilling to be the focus of embarrassment as a result of poor performance in the period before an appraisal is scheduled to take place.  It provides disciplinary documentation, and if an employer wishes to dismiss somebody, the existence of thorough appraisal records which identify the person’s inabilities or lack of effort in the workplace will be very useful.

Performance reviews

        Every six months managers interview their staff and review their pay, providing them with a chance to reward employees and thank them for doing a good job.

        Reviews are associated with the system of ‘performance related pay’.  This means that managers must examine an employees’ performance by reference to performance benchmarks.  The extent to which an employ meets his/her benchmarks will often determine what sort of pay rise is applicable.

        Delta will normally only issue pay rises for above average performance.

Employee legislation

        There is legislation, which Delta must abide by in order to fulfil legal requirements and make the working environment more amenable to employees. Below I have included ample examples of such legislation:

The working time directive

        This limits a persons weekly working hours to 48 hours per week. The aim is to put employees under less stress because this can make them ill. Any employee can opt out of this directive if they wish.

The minimum wage

        The government now sets a minimum hourly pay rate. The minimum was £3.70 in 2000-2001.

Maternity and parental leave

        Both parents are now entitled to take time off work to look after their children (up until the child’s fifth birthday). This can be taken as occasional days or in longer periods of up to a total of thirteen weeks per child. However, it is unpaid leave, so many employees will unable to afford to claim it.

Health and Safety regulations

        The Health and Safety at Work Act 1974 states that an employer must have a ‘written statement’ of its health and safety policy. Delta issues a personal copy to all employees so that it is readily available for all staff to read.

        The statement includes an explanation of how all accident must be reported by staff, a list of all staff trained in first aid and details of where first aid boxes are located. It will also state all Safety Representatives, who are responsible for ensuring safety policies are fulfilled and conducting full three monthly safety checks.

E2, How is external labour market information used to plan Human Resources for the business?

        Delta will use external labour market information to plan human resources within the business.

        In an attempt to clearly explain how the business makes use of such information, I have acquired external labour market information from the locality of the area in which Delta operates. I have also explained how this information could affect Delta when planning recruitment.

        This information, illustrated below in a table format, has been acquired via the use of the West London Learning and Skills Council website. It is directly applicable to those organisations, such as Delta, operating in the West London LSC area.

PROJECTED REPLACEMENT DEMAND FOR THE WEST LONDON LSC AREA (1997-2005) – table ‘a’

Occupation Group        Expansion         Retirements        Occupational        Replacement        Net        

                         Demand                                    Mobility           Demand        Req

Managers and Professionals       49.91                     88.04                     -9.98                     78.06                     127.97                                   

Replacement Demand = Retirements + Occupational Mobility Net Requirement = Expansion Demand + Replacement Demand

(Figures in %)

        Table ‘a’ illustrates the projected replacement demand for the West London LSC area between 1997 and 2005. It will apply to staff that fall within a specific occupation group, as illustrated above.

        The expansion demand refers to an increase in the number of staff, in a specific occupation group, required as a result of an expansion in the scale of business operations.

        The replacement demand refers to the number of staff, within a specific occupation group, who need be replaced, as a result of retirement, occupational mobility or migration.

        The net requirement provides a projected occupation demand, for particular occupation groups, within a chosen business. The Net Requirement for a business can be worked out by adding the Expansion Demand and Replacement Demand together (Net Requirement = Expansion Demand + Replacement Demand).

        Focusing on expanding sectors as the sole source of job creation will ignore the contribution that can be made in terms of replacement demand. The table below aims to illustrate such contributions.  

        According to this Data, the highest projected occupation demand, within Delta is for Managers and Professionals. It is estimated that the Net Requirement will increase by around 127.97% between 1997 and 2005.

PROJECTED QUALIFICATION DEMAND FOR THE WEST LONDON LSC AREA (1997 – 2005) – table ‘b’

Occupation Group        Degree, Professional     Teaching and nursing          A-level              O-levels          None

     qualifications                        qualifications          C & G           GCSE         

Managers and Professionals                62.39                       4.28                    26.29               26.53         8.49        

        Table ‘b’ is on projected qualification demand, intended to provide an indication of the future skill level requirements of the local labour force.

        According to this table, Managers and Professionals will form the highest qualified occupation group. Well over 60% will be qualified at a degree or professional level.  

        External labour market information is useful to the business when planning how it intends to manage future human resources.

         The business will monitor demographic trends in an attempt to assess how likely it will be too find suitable staff locally, and to determine how the competitive the market is likely to be, especially for staff that fall within particular occupation groups.

        Local employment statistics will be used to assess the level of employment in the local area. It may be used to assess whether there is high or low demand for staff amongst other organisations in the local area and to decide how competitive the local labour market is likely to be.

        External labour market information may be used to assess the extent of skills shortages in certain occupation groups. It may be used to assess the amount of training and development that may be needed in the future, to ensure staff have the necessary skills to be able to carry out their tasks properly. If there is a particular shortage in a certain area, then competition for employing staff in this area is likely to be extremely high. The business must decide how it intends to compete with other local organisations when recruiting and selecting new staff in occupation groups where skills shortages appear to be high. It must decide whether it would b more cost efficient to focus on recruiting from within.

        An analysis of how the data shown above will affect Delta when planning recruitment has been included as part of C1

C1, Using my analysis of relevant external labour market information, create a Human Resources plan for the business.

        

        As part of E2, I have attempted to explain how external labour market information is used when planning human resources for the business.

        It is important to understand how the data illustrated can affect recruitment to the business and how easy it will be for the business to find suitable employees in the local area.

Join now!

        Managers and Professionals form just under 20% of Deltas’ workforce, and clearly have an affect on the extent to which the business is successful. They will normally be found at the top of the businesses organisational and internal structures, responsible for devising strategies and delegating responsibility. They can also often be found in supervisory roles, ensuring that employees are working to an appropriate standard. The business must therefore, plan adequately for the recruitment and selection of such personnel, and ensure suitable staff can be found locally.

        According to table ‘a’, which considers the projected occupation demand, for particular occupation groups. ...

This is a preview of the whole essay