The purpose of this report is to advise Coventry Sports Trust Limited (CST) on the key considerations and their significance on the proposed appointment of a Human Resource Manager.

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Joseph Barr Human Resource Specialist

Best Value Consultants

        

Subject – Appointment of Human Resource Manager

Report to: CST Management Team, Majorie Ridley                         5th January 2004

        

Purpose of Report

The purpose of this report is to advise Coventry Sports Trust Limited (CST) on the key considerations and their significance on the proposed appointment of a Human Resource Manager. The report will cover the various issues relating to new approaches in Human Resource management, procedures and practices for obtaining suitable employees, principles and procedures for monitoring and rewarding the employee, and employee exit from the organisation. The report will be on the basis of which the management team can reach a sensible conclusion on the way forward.

Introduction

Coventry Sports Trust Limited (CST) was formed in April 1999 and promotes healthy lifestyle options through the provision of sports and leisure services to those who live, work or visit the City. Such services had previously been provided by Coventry City Council. CST has operated without a Human Resource Manager since its establishment and now is in an ideal position to appoint such a role. We know that until now recruitment, reward, redundancy, grievance procedures, etc. have been very ad hoc and a point has now been reached where structure needs to be introduced as the Chief Executive Michael Rossington is beginning to worry that CST could be laying itself open to falling foul of multitude of employment laws currently in place. We know the company employs 370 plus staff across seven sites and with the introduction of such a structure should enable long term success in the company’s future. The current “personnel” function is not ideal, with the influx of temporary staff there appears to be no stability. The employees of CST have become frustrated and dejected with the current set up. Changes need to be made to prevent further discontentment in the future.  

Personnel Management and the New Approach of Human Resource Management (HRM)

Before HRM the closest comparable function was the personnel department (their differences can be seen best in Appendices A&B). CST have in place a personnel department, that cannot be argued. This means that Personnel managers and their departments are mostly responsible for recruitment, remuneration, leave administration and disciplinary matters. People development is seen to be the domain of the training manager not the personnel manager. Whilst HRM may have its roots in personnel management its orientation is consistent with other recent management methods, for example, often HRM sits at the heart of initiatives such as culture change, total quality management and business process re-engineering. All these initiatives have their own separate objectives but each have some processes and objectives in common with human resource management.

Today the true worth of HRM is becoming more widely understood as HRM steadily interweaves all aspects of people management and development. The philosophy of HRM is based on the simple belief that human resources are the most important asset in achieving and sustained business success. For CST this realisation should become the driving force behind the creation of HRM resulting in the organisation taking a strategic approach to the management of our people. In this way HRM linked the human resource asset to the achievement of CST objectives. Since this conceptual realisation HRM has become increasingly influential in the way it fashions and then implements corporate strategy.

To deliver high organisational performance CST’s HRM practices have to be connected to corporate strategy. The existence of a Human Resource Manager is a good indicator that HRM decisions are now being taken into account in major corporate strategic decisions. However, it is often difficult to establish effective HRM processes, systems, knowledge and skills at local levels when the Sports Trust diversified. CST being in competitive environments, and escalating change, the effective management and motivation of employees will be vital for future survival and success. HRM therefore is becoming an unstoppable driving force, or would be if managers in turbulent environments prioritised HRM issues.

The concept of HRM may seem simple but its realisation is not straightforward. There is a considerable debate about its role and who has prime functional responsibility. CST should argue that HRM is best vested in line management for it is they that have responsibility to utilise people to deliver the business targets.

The change from personnel management to HRM was not instantaneous. Many businesses took years to change and still some like the Sports Trust have kept their traditional departmental name of personnel management. However in other companies the change of name hasn’t necessarily meant they changed their attitudes. In the past, companies used to compete on product and price, now they compete on people as well. The main drivers for change from personnel management to HRM are more committed workforces, women seeking part time employment, adaptability or flexibility of workforce, technological advances and the increased competition due to foreign businesses entering UK markets.

Increased competition is the trigger for the other drivers for the change in labour management. Increased competition forces businesses to compete on a global level, and they need to take a strategic view of the management of a business to survive. This includes taking a strategic view of management and of the labour force within an organisation. This is where the HRM model is used. The increased levels of competition mean that businesses need an adaptable and committed workforce. This as already discussed will give a huge strategic advantage.

When adopting a HRM approach, CST must establish how we can reduce costs to stay competitive. A method that is used is to recruit women who are often keen to find part time, often lower paid work. This reduces costs and could give CST a competitive advantage.
Technological advances have an immense affect on businesses. Staying ahead and constantly updating employees on how to use the latest technology is a vital element of Employee Management. If a business can achieve this it gives them a competitive edge.

If CST follow the trend of changing its department from personnel management to HRM we are making a statement that our employees are a valuable part of the business and should be treated as any other resource in the firm. The HRM model recognises its employees as strategic area of the business, which needs to be considered when making management decisions however in the past under the personnel management model businesses often neglected to consider the human factor.

HRM has already become the new term in the majority of businesses and organisations for employee management departments. Even if companies keep the term personnel management, it is likely that the management of their labour force will be more strategically managed. CST will be forced to adapt and to take an HRM approach, as it is the most efficient way of managing a labour force, and therefore improving its market position. HRM will continue to evolve and develop in its own right. As new methods of increasing efficiency and cutting costs are introduced, HRM departments will adopt them. In future CST will need to continue to value and consider all of their resources but most particularly their employees.

Human Resource Planning

CST must plan ahead their HR requirements and the next twelve months will be vital.  Planning in HR is concerned with getting the right people, using them well and developing them in order to meet the goals of CST.  CST will need to identify ways of using their current employees in the most effective way and identify difficulties that may occur in the future, from this CST will then be in a position to solve these difficulties. There are various stages in the HR planning process that CST need to be aware of. If you refer to appendix C you can see how HR is concerned with matching up firstly the HR in the company and how the company effects on HR. CST’s demand for labour will depend on the future plans. With CST looking to take on the sporting facilities of Caludon School in the near future to support this expansion more staff may need to be taken on.  Looking at future pans and estimating the levels of activity within CST can predict the demand on HR. If CST can get managers to forecast their staff requirements or there is some sought of work study completed working out how long certain jobs take CST can then work out the number of employees required and the hours they will need to work.

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CST must work out the supply of labour available. The numbers of people available to work, how long they can work for, their ability to do required jobs, their productivity and other factors must be taken into account. CST must recognise that the supply of labour comes from two sources, internal and external. With consideration of the appointment of a HR Manager the collection of statistical information on employees will be an essential starting point. Producing information on the number of employees in particular job categories will give a broad overview of the numbers in CST who already process ...

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