Human Resource Management
Tarmac employed nearly 11,000 employees represent their workforce planning and human resource strategies that enabled the organization to meet its mission statement which is ‘to deliver the highest value from our resources to our customers, communities, employees and investors. The key element of Tarmac human resource management is to identify what level of human resources the business needs in order to achieved its Vision of exceptional quality and deliver value to all its stakeholders including their employees who focus on its big five goals using the acronym ‘DREAM’.
Key element of Human Resource planning at Tarmac is employee engagement through human resource management processed which illustrated using the following diagram is extracted from Tarmac case study below. LO 1 Understand the difference between personnel management and human resources management 1. 1Distinguish between Personnel management and human resource management Personnel Management is that part of management which is concerned with people at work and with their relationships within an enterprise.
(CIPD) Human Resource Management: A strategic approach to managing employment relations which emphasizes that leveraging people’s capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies,programmes and practices. (Bratton & Gold, 2003). Tarmac welfare tradition arose from the time when much of the workers responsibility was directed to the benefit of employees rather than to strategic concerns of the organization and management in a variety of work settings include; quarries, wharves, asphalt plants, concrete plants and recycle sites. Industrial relations: arose to the growing power of trade unions involvement in disputes, collective bargaining, negotiation and industrial law and regulation. The practitioner as a bureaucrat (control of labour) due to the increase growth and change of workplace activity such as: job allocation and performance monitoring; time keeping and control of absenteeism; sick leave and holidays; pay and benefits; training and promotion; rules and regulations; procedures and forms.
Part of Tarmac dream vision is to achieve the exceptional to deliver value to all its stakeholders and a key element of that plan is to engage their employees to use their energy and skills to improve the business. The professional tradition: arose as a need for a specialized body of knowledge in the areas of law, economics, administration and social sciences and the professionalism of the work involved.
Within Tarmac HR Management the level of skills of specialist employees have become a central role to Tarmac growth and as a result recruiting internal and external roles have become part of the process that enable the organization to meet its employee’s objectives. According to Fisher et al Human Resource Management involves all management decisions and practices that directly affect or influence the people or human resource, who work for the organization. HRM is a series of activities which include; four key policy goals that can achieved strategic integration(fit) between HR and Business Planning.
HR policies and Practices must reflect in the management of people and it systems such as investment in high quality employees. High commitment and flexibility is associated with management practices such as teambuilding, empowerment, involvement and the creation of strong cultural values with a unitarist approach to employee relations. The diagram below illustrates the comparisons between the two contexts. Old assumptions ( Personnel Management) New assumptions (HRM)
Reactive, piecemeal, interventions in response to specific problems Proactive, system-wide interventions, with emphasis on fit, linking HRM with strategic planning and cultural change People are a variable cost People are social capital, capable of development Self-interest dominates, conflict between stakeholders (pluralist perspective) Co-incidence of interest between stakeholders can be developed (unitary perspective) Seeks power advantages for bargaining and confrontation Seeks power equalisation for trust and collaboration
Control of information flow to enhance efficiency, power Open channels of communication to build trust, commitment Relationship orientation Goal orientation Control from the top Participation and informed choice 1. 2 assess the functions of the human resource management in contributing to organizational purposes According to the case study, Tarmac Human Resource Management is a strategic process that involved planning for the future with the right skills and knowledge that enables the business to meet its objectives and compete more effectively.
In order for the HRM function to be effective there must be good teamwork, and co-operation and consultation between line managers and HR Manager. Top management should agree on clear terms of reference within a framework of personnel policies. Therefore the effective management of people involved a partnership between managers and HR Specialists, and as a result the HRM Function can be seen as operating at two levels: the organizational level and the departmental level. The organizational level:
The HR manager would be concerned mainly with aspects of procedures that affect the organizational activities such as human resource planning, procedures for recruitment and selection, induction and training, consultation with trade unions or staff representatives, employee development, compliance with the law relating to employment, maintaining records and statistics and liaison with outside bodies such as ACAS,employers organization, government agencies, the criminal records bureau, training organization and professional associations.
Departmental level: Line managers would be more concerned with the operational aspects of HR activities within their own departments such as organization of work and allocation of duties, minor disciplinary matters, standard of work performance,safety,under-job-training, communication of information and grievances from staff. In order to assess the functions of HRM the four Cs model was developed by researchers as a means to investigate the effectiveness of HRM.
Commitment – Employees’ identification with the organization loyalty and personal motivation in their work. Competence – Employees’ skills and abilities, training needs and potential for performance improvement and career development. Congruence – harmonization of the goals, values and efforts of management and employees. Cost-effectiveness – efficiency where HRM objectives are met and benefits obtained at the lowest input cost.
The models mention above can be evaluated or measured using the following criteria: Performance based criteria – profitability, productivity, error reduction, compliance are easily measured and compared. Effective personnel management – long term measurably impact on improved business performance. Subjective criteria – quality of working life, employee motivation, team spirit,openess to change, job satisfaction, quality of employee relations.
The diagram below illustrates the function of HRM and its environmental influences. (De Cenzo et al 1994) HRM Functions and environmental influences 1. 3 Evaluate the role and responsibilities of line managers in human resource management The roles/responsibilities of line managers in human resource practices Laurie Mullins pointed out that line managers have both the right and duty to be concerned with the effective operation of their own department, including the management and well-being of their staff.
According to Legge (1989) an effective HRM for line managers is to create competitive advantage in implementing HR policies in showing leadership by involving staff and responding to their suggestions, and in controlling quality, timekeeping and absence makes a real difference to emplyees’attitudes. Line managers responsible for activities such as: Selection of department/team members: such as Interviewing and selection Discipline and grievance handling – informal conflict resolution,counseling,initial stages of disciplinary action such as complaints investigation, interviews Absent management – monitoring time keeping and absenteeism, record keeping Performance management – agreeing performance criteria and targets, monitoring performance and giving feedback, identifying learning needs and opportunities, instructing coaching, counseling and mentoring, employee appraisal reporting and interviewing, motivation. Employee relations – immediate employee communication both upward and downward, managing team participation and involvement, reinforcing cultural values through management styles. 1. 4 analyses the impact of the legal and regulatory framework on human resource management.
At Tarmac human resource needs are constantly changing with distinctive product portfolio which means it needs to have a more diverse workforce to support its operations. The operational structure of Tarmac is divided into areas Tarmac UK and Tarmac International; therefore the legislative framework will play a major part in Tarmac hardcore HR management policies. These include: SEX Discrimination Act 1995/97(amended in 1996) – The Act covers on the ground of sex, marital status, maternity or pregnancy.
There are three types of discrimination Direct discrimination, indirect discrimination, victimization. There may be permissible reasons for discriminating on the ground of gender, reference to tarmac international operations where legal restrictions particularly jobs likely to involve work outside the UK, where laws or custom(United Arab Emirates) are such that the duties could not effectively performed by a woman. Race Relations Act 1992 – Amended (1996 and 2000) outlaws certain types of discrimination on the grounds of colour, race, nationality, or ethnic or national origin.
The equal opportunities commission and commission for racial equality have powers to investigate alleged breach of the Acts. Serve a non-discrimination notice on employers found guilty of contraventions Follow-up the investigation until satisfied Equal Pay Act 1970 – The equal pay act 1970 was the first major attempt to tackle sexual discrimination of employment between men and women. Sexual harassment (code of conduct) compliance with EU code of conduct is only voluntary and there is no specific law against sexual harassment in Europe.
Work and Families Act 2006 – provide parental rights, Maternity leave, Requirements to notify intention Parental leave, Right to return under the Employment Act 2002 Employment equality regulations Act 2003 – The act came into force on 2 December 2003 outlawing discrimination on the basis of: Religious belief Sexual orientation Disability Discrimination Acts 1995 and 2005 – The disability discrimination act 1995 came into force in December 1996. The act contains provisions for disabled access to services, transport facilities and education and training opportunities.
The disability right commission was established to ensure that employers and disabled people are informed of their respective rights and duties. Data Protection Act 1984 and 1998 – First piece of legislation to come into force that addressed fear that information about individuals stored on computer files and processed could be misused, inaccurate or misleading. National Minimum Wage Act 1998 – The Act was introduced 1999 covering all UK Regions and all sectors of the economy. Agriculture remains outside the scope of the legislation.
The economic, social and regional impact of NMW includes: Women and part-time workers benefit from the NMW Labour costs increase Reducing in wage inequality (equalization of pay) Increase prices and the degree of competition in the markets in which it operate. LO 2 understand how to recruit employees At Tarmac like most other businesses human resources needs are constantly changing and as a result workforce planning involves a continual review of human assets and the business organizational structure.
Most of Tarmac employee have been a man in a hat which depends heavily on high skill workers in a variety of settings including; sales, customer service and marketing and as well as IT, finance and procurement. A successful planning leads to better chance of success, it also helps organizations cope with changes and it requires managers to define the organization’s objectives. CIPD definition of HRP as a systematic and continuing process of analyzing an organization’s human resource needs under changing conditions and developing personnel policies appropriate to the longer-term effectiveness of the organization.
It is an integral part of the corporate planning and budgeting procedures since human resource costs and forecasts both affect and are affected by longer-term corporate plans. Organization wishing to maximize its human resources planning must focus on three areas of primary concern to management: Needs forecasting: Improved planning and control over staffing and organizational requirements. Performance Management: Improving the performance of individuals, teams and the organization as a whole.
Career Management: Activities to select, assign, develop and otherwise manage individual careers in an organization. 2. 1 analyses the reasons for human resource planning in organisations Outline HRP purposes Armstrong (2003) To attract and retain the number of people required with the skills, expertise and competencies required To anticipate potential surpluses or shortfalls this will need to be adjusted. To develop a well-trained and flexible workforce this will support organizational adaptation to external to external changes and demands.
To reduce dependence on external recruitment to meet key skills shortages (by formulating retention and development strategies). To improve the utilization of people (most notably by developing flexible working systems). 2. 2 outline the stages involved in planning human resource requirements There are three stages to human resource planning process: Stage 1: assessing what demand the organization will have foe people and skills as its business plans are auctioned. Stage 2: forecasting based on analysis of internal and external trends and conditions.