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Importance Of Human Resource Planning Essays On Success

Strategic Human Resource planning


Human resource planning has become the back bone of a profitable organisation. In this new age all the successful organisations do understand the importance of human resource planning. To understand HR planning it is said that It is the process by which management ensures that it has the right plan or strategy for there human resources. The purpose of human resource planning is to assist an organization to meet strategic goals by attracting, and maintaining workforce and also to administer them successfully. Basically the human resource planning assists organization to attract, recruit and retain the work force by keeping the overall goal, organisational working practice or culture and the legal requirements in mind. According to Miller, 1989 the key word here perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an organization's employees, and the overall strategic direction of the company.

Strategic HRM can be regarded as a common approach to the strategic management of human resources in unity with the intentions of the establishment on the future path it wants to take. It is concerned with longer-term people issues and macro-concerns about organization, excellence, society, standards, dedication and harmonizing resources to future need. It has been defined as:

  1. All those activities affecting the behaviour of individuals in their efforts to formulate and implement the strategic needs of business.
  2. The pattern of planned human resource deployments and activities intended to enable the forms to achieve its goals.

( WRIGHT, P.M. and MCMAHAN, G.C. (1992) Theoretical perspectives for SHRM.Journal of Management. March. pp215-247.)

(Boxall and Purcelldispute that strategic HRM is concerned with illuminating how HRM influences organisational performance. They also point out that strategy is not the same as strategic plans. Strategic planning is the formal process that takes place, usually in larger organisations, defining how things will be done. However strategy exists in all organisations even though it may not be written down and articulated. It defines the organisation's behaviour and how it tries to cope with its environment

( BOXALL, P. and PURCELL, J. (2003)Strategy and human resource management.Basingstoke: Palgrave Macmillan.)

In this assignment i would like to take a sporting organisation to explain or rather take as an example to understand the strategic human resource management. Arsenal F.C is among the best football clubs in UK. It is based in Holloway, North London and was founded in 1886.

The strategic management of the managers over the league is a tough job. But since the football club has influenced the population in the country, it is not that too much pressure to take some actions to bring back the capital they spent.

The arsenal fc increases their profit that is clearly driven by sales of the new driven by sales of the new development

Resource based strategy

To a big part, the philosophy and attempts for the strategical management of the human resources is based on resource based View. This points to the fact, that the reach of the resources in an organization, including the human resources which originates her own unique character and a competitive advantage.

sustainable competitive advantage derives from its resources and capabilities a firm controls that are valuable, rare, free imitable and not substitutable. These resources and capabilities can be viewed as bundles of tangible and intangible assets, including management of a business skills, procedures and organizational routines, and information and knowledge control. [1]

( Barney, jay, B.1991, “Firm Resources and Sustained Competitive Advantage”,Journal of Management17:99-120 )

areas of resources

there are four areas of resource in business

  1. Physical: land, building, machinery, manufacture capacity, unprocessed material etc.
  2. human: contractors, workforce and there understanding and skills.
  3. financial: cash, debtor, creditor, stocks, capital, etc.
  4. intellectual: intangibles (patents, trade name).

types of resource and competences:

threshold resource: threshold resource are those which are needed for the minimum requirements of the customer (logistics, to meet at the end customer with the product to come).

Unique resource: this kind of resource emphasizes on competitive advantage and speaks about to the core competence.

Core competencies

Core competences can be defined as opportunities to accomplish competitive advantages in the environment of firms. The first point for the analysis of competences keys is to acknowledge that the competition between firms is so much a running for the strengthening of knowledge, as it is the position of market and a power of market. The senior managements cannot concentrate on all activities of the firm and necessary competences to undertake. So, objective of the management is to draw attention to competences that really to influence competitive advantage.

According to C K Prahalad and G Hamel (1990) “in the 1990s managers will be judged on their ability to identify, cultivate, and exploit the core competencies that make growth possible-indeed they'll have to rethink the concept of the corporation it self”.

Core skills are not considered stable. Core skills should be changed in reply to changes in the environment of the company. Should Be bendable and change over time. As a business evolves and adapts to new conditions and opportunities, so Core competencies will be updated and changed.

(http://tutor2u.net/business/strategy/core_competencies.htm 10/05/2010)

Dynamic capability

Is defined as “the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments”. [2]

In other words it is more flexible approach of resource-based or The ability to replenish competences to fulfil the congruence with unpredictable environment or Emphasis is on adapting, integration internal and external organizational skills, resources and functional competences to match the supplies of changing environments.

Dynamic capability can help in

Social organizational skills like helping in activities of new pattern, spotting dysfunctional practice and avoid tactical blind spot.

( Teece, D., G. Pisano and A. Shuen, 1997, "Dynamic Capabilities and Strategic Management.", Strategic Management Journal, (18:7), pp.509-533 )

Developing strategic capabilities

For an organization to develop the strategical capacities it is the most important to identify its basic competence so the organization can then take advantage from them to gain strategical advantage.

Way of developing

Staffing policies: to develop particular competences by making and changing staffing policies like promoting.

Developing people's awareness: to realize what they do in there job.

Targeted training and development: to achieve added value and develop competences by targeted training.

Organizational learning: ability of the organization to continue regenerating from a verity of knowledge, experience and skills.

general hr strategy

General strategies describe the overall system or bundle of complementary HR practices that the organization proposes to adopt or puts into effect in order to improve organizational performance.

The three main approaches are summarized below.

1. High-performance management

High-performance management practices include rigorous recruitment and selection procedures, extensive and relevant training and management development activities, incentive pay systems and performance management processes.

2. High-commitment management

as described by Wood (1996) ‘A form of management which is aimed at eliciting a commitment so that behavior is primarily self-regulated rather than controlled by sanctions and pressures external to the individual, and relations within the organization are based on high levels of trust.'

3. High-involvement management

As defined by Benson et al (2006): ‘High-involvement work practices are a specific set of human resource practices that focus on employee decision making, power, access to information, training and incentives.'putting to gather an hr strategy an organization can divid hr strategy in two components hard (competences and resource) and soft (in order to achieve competitive advantage behavior is needed). For good hr strategy these hard and soft elements are very important.

Also when considering how to integrate business and HR strategies it should be remembered that business and HR issues influence each other and in turn influence corporate and business unit strategies. It is also necessary to note that in establishing these links, account must be taken of the fact that strategies for change have also to be integrated with changes in the external and internal environments. Fit may exist at a point in time but circumstances will change and fit no longer exists. An excessive pursuit of ‘fit' with the status quo will inhibit the flexibility of approach that is essential in turbulent conditions. ( Armstrong, michel (2009), armstrong's handbook of human resource management practice, 11th edition,

ISBN 978 0 7494 5242 1 )

Linking business and hr strategy

“Resource strategies are concerned with two-way relationship between overall business strategies and strategies in separate resource areas such as people, information, finance and technology”.

Human resource strategy is vital element to the business strategy and also vital element of the resource base.

Every organisation runs two strategies side by side long term and short term. Long term strategies has direct link with the organisation's objectives and future aims and short term strategies are there to achieve the desired goals in the changing environment or deviation from the organisation's goal.

( Johnson, Scholes and Wittington (2008), exploring corporate strategy text & cases, 8th edition, ISBN: 9780273711926 )

H R strategy components:

H R strategy can be divide in three basic elements

Staff as a resource

In other words staff as a resource is called the hard approach it's all about how staff are deployed, supervised, controlled and motivated in the organization through systems and process.

It helps in classify the people based core competence for possible future strategies also target setting and performance evaluation of individuals.

It's about recruitment and retention also about training and development.

Reward planning connected to group and working in delivery tactic.

Organisational Culture

Culture is about how the organisation organises itself, it's rules, procedures and beliefs make up the culture of the company. In this section we are going to briefly look at six types of organisational cultures.

Power Culture

Within a power culture, control is the key element. Power cultures are usually found within a small or medium size organisation. Decisions in an organisation that display a power culture are centralised around one key individual. That person likes control and the power behind it. As group work is not evident in a power culture, the organisation can react quickly to dangers around it as no consultation is involved

Role Culture

Common in most organisations today is a role culture. In a role culture, organisations are split into various functions and each individual within the function is assigned a particular role. The role culture has the benefit of specialisation. Employees focus on their particular role as assigned to them by their job description and this should increase productivity for the company.

Task Culture

A task culture refers to a team based approach to complete a particular task. They are popular in today's modern business society where the organisation will establish particular 'project teams' to complete a task to date. Staff feels motivated because they are empowered to make decisions within their team, they will also feel valued because they may have been selected within that team and given the responsibility to bring the task to a successful end.

Person culture

Person cultures are commonly found in charities or non profit organisations. The focus of the organisation is the individual or a particular aim Forward and backward looking cultures.

The human resource planning process

( desmond w erance, 1994, business a students guide, second edition pitman publishing. )

As the above example illustrates, implementing changes involve either moving existing staff to other posts, or recruiting new staff cannot be undertaken effectively overnight.

Manpower planning continually monitors what qualifications, skills, expertise and experience are required currently and in the future to enable all departments to meet there goals and objective without staffing crises or emergencies.

Attracting talent:

The ability to attract and retain talent is rapidly becoming one of the key issues for human resource managers.

One of the ways of attracting the broadening talent pool is by diversity.

What is diversity? According to Thomas (1992), “a strategy to promote values, behavior and working practice which recognize the difference between people and there by enhance staff motivation and performance and release potential, delivering improved service to customer”.

( Thomas, R.R., Jr. (1992).Beyond race and gender: Unleashing the power of your total work force by managing diversity.New York: AMACOM.)

In my company I use diverse work force firstly it reduce the cost of the workforce. Diversity allows me to have one skilled person rather then two unskilled employees and also enhance employee relationship. It improves workforce quality and performance in terms of diverse skills, creativity, problem solving and flexibility finally it enhances customer relation and market share.

Attracting talent by rewards

Rewards or remuneration package is important way of attracting bundle of skilled and talented work force. Different people have different reward in there mind my company include most of the thinkable rewards for the work force

Individual: basic pay, bonus, incentives, shares, profit-sharing.

Relational: career development, learning and development, training.

Transactional: pension, holidays, healthcare, flexibility

Communal: leadership, voice recognition, achievements, job design, work-life balance

The recruitment process

( Donald l. caruth, et al, (2008) contemporary organization: a guide to planning recruiting and selection for human resource professional, 3rd edition, greenwood publishing group. )

  • Need for new post identified
  • Line manager details need: reviews post for change if it exists, or lists fresh requirements if a new post is to be established
  • Personnel specification is revised or a fresh on drown up like lists the physical, educational, experience, aptitudes, skills & personality requirements needed in the person who could do the job successfully, priorities requirements “essential or useful”.
  • Job description is revised or a fresh one devised
  • A classified or display advertisement is composed for insertion in local/national press
  • After receiving the C.V or applications or forms shortlist applicants and send invitation letter to attend interview
  • Write letter or email conforming job offer dispatched to successful candidates and send curtsey letter or email dispatched to unsuccessful applicants
  • Job description also provided to new employee with company manual and prospectus Etc.

Job description

The main purpose of the job description is to define as clearly as possible for both its processor and his or her line manager what the key ingredients of the job are.

A job description sets out clearly the most important responsibilities and duties which make up a given job.

Reviewing the effective recruitment

The one way of tracking the development of recruitment is by examining those retained in the organization at a future date and whether they have progressed.

Person specification

It is a checklist drown up to identify what particular physical characteristics, general and/or vocational qualification, skills, aptitudes and previous work experience an ideal candidate for a given post should possess.

Methods of selection

  • Application forms and CVs
  • Online screening and short listing
  • Interviews
  • Psychometric testing
  • Ability and aptitude tests
  • General intelligence;
  • Verbal ability;
  • Numerical ability;
  • Spatial ability;
  • Clerical ability;
  • Diagrammatical ability;
  • Mechanical ability;
  • Sensory and motor abilities.
  • Personality profiling
  • Presentations
  • Group exercises
  • Assessment centre
  • References

( http://www.grb.uk.com/selection-methods.0.html 19-05-2010 )

Employee induction

In addition to ensuring that each newly appointed employee is made aware of the legal essential objective of employee induction are to provide a specific briefing (with training if needed) on the job's requirements, an introduction to the people with whom the employee will directly work and an orientation towards the culture and practices of the organization working environment. (reference same as above)

Methods of selection

What is culture?

Organization culture is an amalgam and summary of the way in which activities are conducted and standards and values adapted, it encompasses the climate or atmosphere surrounding the organization, perverting attitudes within it, standards, morale, strength of feeling towards it and the general levels of good with present.

A simple way of defining organization culture is “the way in which things are done here”.

Culture is formed from the collection of traditions, values, policies, believes and specification pressures are also present.

Organization culture elements

  1. History and tradition.
  2. Nature of activities.
  3. Technology.
  4. Past present and future.
  5. Purposes, priorities and attention.
  6. Size.
  7. Location.
  8. Management style.
  9. Rites and rituals.
  10. Routines and habits.

( Richard pettingger, organizational behaviour, isbn no: 0-333-79279-3 )

The importance of organizational culture

According to keuning (1998), Culture “provides relatively fixed patterns for handling and solving problems also reduce uncertainty for members of the organization when confronted with new situations and reduce uncertainty in getting to the organizational goals.

( Keuning, D. 1998. Managemnt - a comtemporary approachPitman Publishing, London.)

It has boundary defining role. It creates distinction between one organization and others.

It conveys a sense of identity for organization members.

Culture facilitates commitments to something larger then ones individual self interest.

Culture is the social glue that holds the organization together by providing appropriate standards for what employee should say and do. It enhances social system stability.

Culture serves as a sense making and control mechanism that guides and shapes the attitudes and behavior of employee.

(http://www.docstoc.com/docs/7886812/Organizational-Culture-and-Change-Management 19-05-2010)

Analysis and changing culture

The Cultural Web classify six interconnected elements that help to make up what Johnson and Scholes call the "paradigm" - the pattern or model - of the work atmosphere. By analyzing the factors in each, you can begin to see the bigger picture of your culture: what is working, what isn't working, and what needs to be changed. The six elements are:


- The past events and people talked about inside and outside the organisation. Who and what the organization chooses to immortalize says a great deal about what it values, and perceives as great behavior.

Rituals and Routines

- The daily behavior and actions of people that signal acceptable behavior. This determines what is expected to happen in given situations, and what is valued by management.


- The visual representations of the company including logos, how plush the offices are, and the formal or informal dress codes.

Organizational Structure

- This includes both the structure defined by the organization

chart, and the unwritten lines of power and influence that indicate whose contributions are most valued.

Control Systems

- The ways that the organization is controlled. These include financial systems, quality systems, and rewards.

Power Structures

- The pockets of real power in the company. This may involve one or two key senior executives, a whole group of executives, or even a department. The key is that these people have the greatest amount of influence on decisions, operations, and strategic direction.

(http://www.mindtools.com/pages/article/newSTR_90.htm 19-05-2010)

Changing working practices

Because of the changing work practice worker has a positive and negative effect.

Positive effect is worker can get a better work life balance by choosing how they work. Other positive effects are retention, motivation, recruitment, psychological contract, productivity, absence, customer service, team working and knowledge sharing.

Negative effect can be the demand of technology also 24/7 working.

These changes occur because of demographics, diversity issues, the commercial world, customer demands and when there is shortage of skill worker.

The work-life balance

Employee burnout has a major impact on productivity, but that's not its only negative effect.

  • Overworked and overstressed employees are more likely to get sick and have high absentee rates.
  • A lack of work/life balance affects an employee's attitude. Unhappy workers are typically less efficient and can destroy morale.
  • Burnout directly affects turnover rates. Employees can work at a frantic pace for only so long before they get frustrated and leave a company.

Flexible work hours can help an employee meet conflicting needs without compromising the amount of hours they work. If employees can regulate their hours or telecommute once in a while, they'll be happier at work and at home.

Give time off for special occasions. Time off is always greatly appreciated. If you can afford to, consider giving your employees time off on their birthdays, holidays or other special occasions.

(http://www.allbusiness.com/human-resources/employee-development-employee-productivity/1242-1.html 19-05-2010)

Legal requirements

Unfair discrimination in recruitment and selection: The Sex Discrimination Act 1975; The Race Relations Act 1976, The Disability Discrimination Act 1995; The Employment Equality (Religion or Belief) Regulations 2003, and The Employment Equality (Sexual Orientation) Regulations 2003.

Many of these Acts have been amended since their introduction and make it unlawful to discriminate against a person, either directly or indirectly in employment on the grounds of colour, race, gender, marital status, creed, nationality, religion, sexual orientation, ethnic or national origins, or disability.

Protection during employment: health and safety at work act 1974 and data protection act 1998 these acts protect employee's data and also his health.

Leaving the organization: an employee may decide to leave the organization willingly or be dismissed meaning the contract of employment is terminated. There should not be any unfair dismissal. If an employee is dismissed because of bad behavior, lack of capability, idleness or legal restrictions is fair.

The role of ACAS

Role of ACAS is to help bring good relation between organization and work force.

The role of ET:

Employment tribunal are independent judicial bodies which resolve disputes between employer and workforce a hole range of employment rights issues.

Other external agencies: there are more agencies like health and safety executive (HSE), information commission's office, equality and human rights commission (EHRC) etc all of them working for spreading awareness and the better relation, best practice and new developments in safety and also protect rights of both employer and employee.

In the end its all about human resource planning the best way to use, attract, retain and selection of work force

Source: Essay UK - http://www.essay.uk.com/free-essays/management/strategic-human-resource-planning.php

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The Importance of the Human Resource Function

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The Importance of the Human Resource Function

Human resource is the backbone of any business. It deals with the most
important resource in the business – people. For any business to
achieve its objectives they must plan their resources and one of their
key resources is people. They need to get the right people and develop
them well in order to meet the organisation’s aims successfully.

As an organisation grows and expands, the human resource department
will know that the organisation needs to recruit more staff and they
plan carefully. Recruiting staff in an organisation is very expensive
and costly, so the human resource function helps the organisation to
get recruitment right.

The main elements of Human resource are:

* Planning

* Recruitment & Selection

* Training & Development

* Performance Measurement.


Planning is a process of determining the goals and objectives of a
business for a future period of time, developing the strategies
guiding the firm’s operations and utilizing resources towards
achieving the set goals and objectives.

A human resource manager needs to plan ahead and know what is going on
in and outside the company (labour market). He needs to be aware of
the past, present and future trends of employment in a particular area
of specialisation.

He needs to know if there are available skills needed or if there are
few people with the type of skill needed by the company. He also needs
to be aware for competition for employees’ i.e. if the company’s
employees are increasing the demand for labour or whether labour is
available due to redundancies.

The HR planning is all about getting the right people and developing
them to meet the company’s objectives.


The HR manager needs to know when, why and how to recruit staff.
Businesses recruit staff so as to expand the business objectives and
change job roles within the business due to new skills and new

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Human Resource         Function         Labour Market         Staff         Organisation         Deals         Utilizing         Meet         Objectives        


New staffs are also recruited because the company needs to fill
vacancies due to dismissal, death or resignation of a member of staff,
or to fill vacancies due to internal promotion of a member of staff.

A business has to get recruitment right because it is very expensive.
The HR manager will have to select the right people into jobs because
there is the probability of rejecting the best ones and getting the
wrong ones.


The HR manager needs to be aware of the importance of training and
developing their employees as it adds to the competitive success of
the business.

Training could be described as a learning experience or activity aimed
at making a positive change on the performance of employees which will
in turn lead to the success of the company.

Training could be in various forms such as education, induction,
apprenticeship or management training.

Training enables an employee to contribute in meeting the aims and
objectives of a business while development on the other hand enables
an employee to develop himself / herself as a person.

This aspect of the human resource responsibility helps employees to
develop themselves and contribute in meeting the organisation’s goals
and objectives. To achieve its objectives, an organisation has to
train and develop its people so they could support the organisation by
working towards meeting the company’s objectives.


In order to be competitive, a business needs to monitor the
performance of its employees effectively.

Some of the methods businesses use to monitor the performance of their
employees include:

Ø Performance Reviews: a business will have to set out a mission
statement identifying its aims and objectives and also create value
statement on how these aims will be accomplished.

The success of the company as well as the performance of employees can
be monitored and evaluated for improvement using the set objectives of
the company. A feedback known as performance appraisal is then given
to evaluate the performance of the company and give room for
performance adjustments.

Ø Self Evaluation: employees are encouraged to make goals and evaluate
their own performance in meeting these goals. This enables employees
to take responsibility and monitor their own performance. It helps
employees to develop inter – personal relations and let them know what
exactly their job is all about.

Ø Peer Evaluation: checks the result of a team work and helps the team
to work together effectively and efficiently. This helps employees to
value each other’s contributions on matters affecting the success of
the company.

Ø Target Setting for Individual / Groups: this is a process where
targets are set in alignment with the department goals, which are set
to meet the company’s goals.

Ø Measuring Individual / Group Output: most companies use how
competent an employee or group is to measure their performance. An
employee could either be rewarded in form of bonuses or increments in
salaries based on his performance.


Importance of Understanding Trends in the Labour Market

The Labour Market

A human resource manager needs to be aware and understand the labour
market as well as its effect on the company. The labour market is a
combination of individuals with the right qualification or skill
(supply) and jobs created by employers (demand).

The human resource manager needs to know the number of supply and
demand trends for the past, present and the future because it guides
the human resource manager to understand the conditions of the market
and predict what he might expect.

For instance, if the government decides to increase the salary for
teachers, more people will be willing to teach; thereby there will be
more supply of teachers.

On the other hand, there could be more demand for teachers by the
government than the actual supply of teachers and those willing to
come into teaching and that is the more reason why the Government
would increase the salary for teachers.

Supply and demand makes up the backbone of any market. The human
resource manager therefore needs to allocate resources in the most
efficient way possible. To do this, the human resource manager needs
to match demand and supply, then the economy will be in equilibrium
and everyone (the firm, staff and prospective employees) will be
satisfied. At the given price, teachers will be more willing to work
and the government will be willing to employ them.

A point where demand and supply meet


There are more people willing to teach because the government had
increased the salaries for teachers.


From the NOMIS report, Kingston upon Thames has a population of about
160, 000, about 100,000 people are of working age. 39.8% of these
people are degree owners (NVQ 4 and above).

This is a very good opportunity for HSBC bank to open a new branch in
Kingston because they will require people with degrees to hold
managerial positions in the bank.

Also, more individuals within age 25 - 34 are employed in professional
and managerial jobs, which are required by HSBC bank.

Advise for HSBC bank

Kingston is a very suitable location for HSBC bank to staff their new
branch. Since over 39% of those who live in Kingston are degree
holders, it will be advisable for HSBC bank to have a branch in
Kingston so that they could employ these people with degrees so as for
them to hold managerial positions.

Kingston is also a very large town with a population of about 150 000
people. If there is a banking service from HSBC bank located in
Kingston, majority of these population will come to the bank for all
their banking services which will bring about a large demand for
banking services by people.

Kingston has a very large shopping centre (Bentalls) where thousands
of people come in everyday to shop. Majority of these people will
require a banking service before or after shopping, which will
increase the demand for banking services.

Students from Kingston university and Kingston College will also need
a banking service around the area to meet up with their financial
demands as a student such as loans, student accounts etc.

How To Monitor Sickness and Wastage Rates: Internal staffing

Internal Staffing

Wastage Rates:

The rate at which staff are leaving a company can be calculated as a
percentage of those who were there in the previous year.

The formula to calculate this is:


(No of staff leaving in time period


average number of staff employed in time period) *

This formula will help HSBC bank to know what the wastage rate is in a
given time period as well as to predict likely turnover in future.

Monitoring the wastage rate will also help HSBC bank to see if there
is the need to find out the reasons for the high turnover and to know
if they have to recruit new staff.

Monitoring wastage rates will also help HSBC bank to make comparisons
with other HSBC bank branches so as to know if that branch is
functioning well or not.

Monitoring Wastage Rates

For HSBC bank to monitor its wastage rate, the human resource manager
needs to always predict future turnover by using the past trends, so
that he / she could have an idea of what to expect.

The human resource manager also needs to find out the main reasons why
employees are leaving if it is something to worry about or not. To do
this, the human resource manager has to do what is known as an exit
interview where the staff leaving would be asked to attend an
interview and give the reason why he / she is leaving. This will help
the manager to know the reasons why staff are leaving.

At a certain time, the human resource manager will have to recruit new
staff to replace those that are leaving. This is important to the
organisation so that they do not lose the most experiences people.

Sickness Rates:

Sickness rate is measured as a percentage of total time. This will
enable the human resource manager of HSBC bank to keep an eye on the
problems been faced by the employees or the bank as a whole. If more
people are calling in sick every time, it could be a problem of
motivation or that staff are not happy in their jobs.

Comparisons can then be made with other employees and other HSBC bank
branches in UK. If there are a high number of absentees, it means
there is a problem somewhere, so the company needs to find out why
staff are leaving, and recruit new staff or part timers.


The recruitment process is a very costly one and it is very time
consuming therefore, it is important to get it right. It involves
tasks such as:

Job Description: this involves what the jobs that are to be recruited
for will entail.

Person Specification: this involves identifying those people with the
right qualities to fit the job role.

Advertising: this involves the choice of media and publication that
will be adopted by the organisation so that job vacancies could reach
the target audience.

Short listing: this involves identifying the strength and weaknesses
of job applications, curriculum vitae and letters of application.

Also, check which applications best meet the required vacancy,
interview candidates and select the best candidate for the job post.

An organisation needs to get recruitment right so as not to eliminate
the best candidates and employ the unsuitable candidate, because if
they do, they will have a less motivated employee in their workforce
who might have to leave the organisation, leaving the organisation
with no choice but to spend money on the recruitment process again.

Job Advert

HSBC logo The world's local bank

HR Manager – Real Estate / Property Management

Job Title: HR Manager

Job Type: Human Resources

Company: HSBC Bank

Location: United Kingdom - Kingston

Base Pay: £55,000 - £70,000 / yr

Employee Type: Full Time

Required Education: a degree or have at least 5 years in HR gained
only within a similar environment.

CONTACT INFORMATION: HSBC Bank 44 Kingswood Road Gillingham. ME7 1DZ

Contact: Linda Welfson

Phone: 0208 549 3704 Fax: 0208 549 3701

Job Description: HR Manager– beautiful office, excellent benefit

attractive salary, training and professional

The individual in this position is responsible for the planning and
execution of the support staffing functions for all departments.

Person Specification: Should possess a minimum of 3 – 5 years of broad

experience especially in areas such as recruitment and selection,

HSBC is an Employer Committed To Equal Opportunity

Job Description:

HR Manager– beautiful office, excellent benefit package,

attractive salary, training and professional

The individual in this position is responsible for the planning and
execution of the support staffing functions for all departments.

This position requires focus on new and innovative ways to identify,
recruit, manage workforce planning and introducing new selection
techniques to attract exceptional talent.

The manager will develop and implement processes for identifying,
attracting and hiring diverse talented, high performance support staff
that will work within a team with the company’s directors and leaders,
maintain relationship with key sources for recruiting the BEST.


Ø Provides guidance to all members of the recruiting team.

Ø Administrate a long-term recruitment program.

Ø Day to day oversight of personnel, policy and compliance.

Ø Provides professional HR support and leadership to all departments.

Person Specification:

* The manager will be part of the senior management team.

* The successful candidate should possess a minimum of 3 – 5

years of broad staffing experience especially areas such as
recruitment and selection, personnel record keeping, salary
bench marking and administration, etc

* The candidate should also possess a certificate in personnel


* The candidate should bring knowledge of recruiting best

practices across various industries.

* The candidate should also possess outstanding HR

abilities combined with a proven capacity to plan and

execute so as to achieve the required staffing.

* There are several additional aspects to this job requirement

and will be explained to each and every candidate.

To apply for this job, please contact Linda Welfson and request

for an application form.

Application Deadline:22 April 2005

I looked at the Chartered Institute of Personnel and Development(CIPD)
website (www.cipd.co.uk) and found out that there are different types
of qualifications available to human resource manager.

The successful candidate is expected to have this qualification and be
able to lead in the development and promotion of good practice in the
field of the management and development of people.

HSBC is an employer committed to equal opportunity and always display
this on all their job advertisements. This is because they want the
public to know that the do not discriminate in any form as it is
illegal to discriminate at all stages of the selection process.

The job advertisement will be aimed at both internal and external
labour. It will be placed in the staff bulletin for each week for four
weeks so as to give people time to be aware of the vacancy.

The job advert will also be placed in newspapers like The Guardian,
The Financial Times and The Times 100 because they are mainly business
and financial newspapers, which most people in this sector read a lot.


Ø Identification of the features of key recruitment documents and
ability to describe the factors to be considered in planning to fill a
vacancy and carrying out interviews:

How The Interview Will Be Run

The interview will be run as a panel consisting of the following
members of the company:

a. An existing cashier: an existing cashier will be present at the
interview because he / she already works as a cashier in the bank. The
existing cashier knows all about the job role and what personal
qualities the interviewee should possess, especially having gone
through the same process. This will give the interviewee a chance to
get information about the job.

b. The customer service officer: the customer service officer should
be present at the interview because the successful candidate will be
required to work under the supervision of the customer service

The new cashier and all other cashiers will be responsible to the
customer service officer. (Source: organisation chart)

c. The regional human resource manager: the human resource manager
should be present at the interview because he has specific HR skills
and knows the legislation in practice by the company.

He is responsible for the recruitment and selection of successful
candidates who will work with the company to achieve the company's aim
and objectives.

The interviewee and all members of the panel will have to sit for the
interview in a meeting room. The interviewers should make sure that
the interviewee is comfortable and relaxed all through the interview
process. When people are relaxed, they are at their best and can make
better judgement of skills and temperament.

The customer service officer will welcome the interviewee and
introduce other members of the panel.

The interview will be chaired by the human resource manager, who will
ask the interviewee a few questions and tell them what to do after the
interview e.g. inform each candidate when and how the panel will get
in touch with them if successful or not.

The interview will be held in one day. Assuming ten candidates were
short-listed for the interview and HSBC bank will be recruiting only
four counter staff. The interview will last for about 25 minutes for
each candidate and an hour break for the interviewers making overall
hours of 5hours ten minutes.

The interviewees will not be allowed to meet each other and because of
this, each candidate will be interviewed individually so as to protect
confidentiality and not allow the candidates to chat about the
questions they were asked.

Protecting Confidentiality: HSBC bank is an equal opportunity
employer. The panel will not discriminate any candidate for whatsoever
reason and the candidate's data will not be shared outside the

Documents Needed: each member of the panel should have the following
set of documents ready for the interview:

1. Application form or Curriculum Vitae: this entails a few
information from the interviewee such as their names, the job role
they have applied for, previous experience, why they want to work for
the company, qualification achieved, etc.

The application form is prepared by the company in order to know some
more things by the prospective employee while the curriculum vitae is
prepared by the person seeking the job and may not always write
everything about themselves.

2. Job description: this entails what the job role to fill is all
about and the duties required of the successful candidate.

3. Person Specification: this helps the interviewers to check if the
candidate has the right qualities for the job.

4. Questions: interviewers must make notes of the questions they want
to ask the interviewees. The questions must relate to job description
and person specification. The panel should know who will ask what
questions and when the questions are to be


5. Agenda: a well-typed agenda should be sent to each candidate before
the day of the interview. This helps each candidate to know what time
the interview is scheduled for, where they should be and what is
expected of them.

6. Checklist: interviewers should make notes of questions they need to
ask the interviewees so that they do not forget. They also need to
make notes on how each candidate meets the job requirements.

The checklist also helps the interviewers to compare each candidate's
reactions after the interview.

Questions for Interviewees

Some of the questions the panel could ask the interviewees include:

ü Why do you want the job?

ü How did you hear about this job opening?

ü How do you handle stress? What would you do if you were at work and
feel ill while there are customers waiting on a queue?

ü What kind of people do you find it most difficult to work with? Why?

ü Starting with your last job, tell me about any of your achievements
that were recognized by your superiors.

ü Everyone has strengths & weaknesses as workers. What are your strong
points for this job?

ü Why do you think we should employ you at HSBC bank?

ü Give me a few examples of how you have adapted your own
communicating style to deal with different people and situation?

ü What things give you the greatest satisfaction at work?

ü Can you think of a problem you have encountered when the old
solutions didn't work & when you came up with new solutions?

ü How do you go about making an important decision affecting your

ü What special aspects of your education or training have prepared you
for this job?

ü Where do you intend to be in about ten to fifteen years time and how
do you intend to achieve your goals?

ü How does this job fit in with your overall career goals?

ü What do you feel you need to develop in terms of skill & knowledge
in order to be ready for that opportunity?

Further Assessments

An aptitude test will further be recommended especially when the job
role is a cashier dealing with arithmetic.

This helps the employer to know more about the candidate as the
interview do not say everything about that person.


Purpose of Performance Management

An important part of the performance management process is development
of employees' work-related skills, knowledge and experience. The
development process gives the managers and their employees the
opportunity to work collaboratively to improve each employee’s
performance and to contribute to organisational goals and objectives.

In order for the organisation to remain competitive and to retain its
reputation for excellence, employees should have up-to-date
information and the ability to use new technologies, adapt to
organisational change, and work effectively as a team. Employees, too,
recognise that it is essential for them to continue to learn so that
they will be effective in their current jobs and able to move into
other positions or accept new responsibilities as circumstances

HSBC bank needs to manage the performance of its employees effectively
in order to remain competitive, as there are other high street banks
in Kingston.

For an organisation to work successfully and achieve its aims and
objectives, they need to develop, train and motivate their employees
so that these employees will work hard towards achieving the
objectives of the company.

To develop their employees, HSBC bank has to provide a system for
managing its workforce effectively.

Development of employee skills, knowledge and experience is essential
in today's rapidly changing workplace as there are new changes in
technology e.g. a cashier needs to know how to use a computer
effectively when attending to customers. Employees such as cashiers /
personal bankers need to be trained and developed well. They need to
know what they are doing rather than be told what to do as they
communicate with the customers on a daily basis.

The following performance systems can be used by HSBC bank to monitor
the performance of their employees:

* Performance reviews: HSBC bank has to set out a mission statement
and values identifying the overall aims of the organisation. The
company will then use the mission statement to create
organisational objectives and personal objectives for their

These objectives are always evaluated and monitored as it shows how
successful the organisation is and how employees are meeting their
personal objectives.

This system will help HSBC to judge employee performance against the
set objectives and reward them if organisational objectives are

How HSBC reward success

A fair pay is paid to an employee for his / her contribution to the
organisation based on individual performance. Promotion is based on
competence, performance and adherence to values and ethical standards.
The benefits of organisational success are shared through
performance-related bonuses in most regions of HSBC bank branches and
the extension of share ownership.

About half of all HSBC employees now participate in one or more of
HSBC’s employee share plans. (Source:www.hsbc.com)

* Self Evaluation: an employee needs to be able to identify
meaningful goals and then work out ways of meeting these goals. An
employee needs to be able to evaluate his / her own performance in
carrying out these goals.

This approach helps employees to take responsibility for their own
work and monitor their own performance. This also helps an employee to
have an in-depth understanding of their job and a clearer picture of
what their job is and how well they are doing it. It is cost effective
and time saving.

* Peer Evaluation: Without this approach, there could be a danger
that some employees might work hard while others get the rewards.
Peer evaluation helps organisation to know how effectively the
team is working as a whole and how much effort team members are
contributing to work done.

This helps employees to do their very best in jobs, as they do not
feel they are been judged. There is a chance of individual’s helping
each other to improve performance.

The downside to this approach is that the team could justify their own
performance rather than look at things from the organisation’s set

· Target setting for individual / groups: This approach allow
individual employees / group to participate with their departmental
managers or any other superior to set their own performance targets.
These targets are always in alignment with unit or departmental goals
that the employee works in and hence, aligns with organisational

· Measuring Individual / group output:

Training and Development in HSBC bank

The human resource manager of HSBC bank needs to plan ahead before
deciding what training the company will require. The HR manager has to
know what job roles are needed by the company over the coming year,
the skills and qualification required to do the job.

After doing this, the human resource manager has to find out what
skills or qualifications each employee in the company has. This is
called SKILLS AUDIT. By finding out the training needs of the company
and the skills audit, the human resource manager will know the
training gap needed by the company.

The company will have to fill these gaps by recruiting staff or train
existing and develop them into the right positions needed by the
company at that time. But the gap cannot be filled totally because
people keep changing jobs due to different reasons such as change in
technology, new skills, new regulations, retirement etc.

Employee satisfaction is a vital measure of the effectiveness of
people strategies and the impact it has on customer satisfaction.

Even more useful, however, is to measure ‘employee engagement’, which
is made up of three components: job satisfaction, intention to stay at
HSBC, and a willingness to recommend HSBC as a great place to work. We
find that colleagues who exhibit high levels of engagement also
provide better service to customers and are more likely to stay with
us. (Source: www.hsbc.com)


Training is when a company train its employees to meet the aims and
objectives of the company. It includes all forms of planned learning
experiences and activities designed to make a positive change to the
performance of a company.

Companies see recruitment as a very expensive venture so they try to
avoid recruiting new staff by training their current employees and
retain them for a longer period.

HSBC bank equips their employees with the skills they need to operate
successfully by using the following training methods:

In house training is where an organisation uses its own training
method to train its staff. HSBC bank uses a variety of training
mechanisms, including e-learning, which is a cost-effective way of
enabling more employees to work on programmes at their own pace. HSBC
bank also has more than 1,100 in-house training staff worldwide as
well as links with external trainers. HSBC bank also offers regional
training centres provide training, education and guidance in a local
branch for local people in their own language and respecting cultural,
religious and ethnic values. (Source:www.hsbc.com)

Benefits of Training to HSBC bank

Training is important as businesses are changing from industrial to
high tech. Communication and Technology is changing and improving so
people needs to be kept up to date.

Training improves competitiveness, skilled and better motivated
workforce work harder and this improves productivity.

Training helps staff to become customer focused and effectively meet
customer needs. This will help HSBC bank to keep its customers.

Training is going to improve customer service in the bank. The service
level given to customers e.g. how quickly customers wait in the queue
before seeing a cashier will help HSBC to keep customers.

Training provides formal product knowledge that can be immediately
applied to day-to-day activities in the bank. E.g. HSBC bank provides
a general training for all staff on all the type of banking services
available to customers and how to use them.


Personal development is where an individual takes responsibility for a
skillful or academic learning in achieving his or her own personal
goals and career aspirations, which also enhance the effectiveness of
the organisation.

Development approaches the individual and his or her motivation from a
different angle from that of training. While training is typically
concerned with enabling the individual to contribute to meeting the
objectives of HSBC bank better, personal development is more concerned
with enabling individuals to develop themselves in the way that best
suits individual needs. The two, it is hope, will come together. By
helping individuals to develop themselves, they will be more inclined
and better able to contribute to helping HSBC bank meet its objectives.

If an organisation should focus on developing its people, it will
increase loyalty and motivation amongst workforce.


Motivation is a concept used to describe the factors within an
individual which arouse, maintain and channel behaviour towards
achieving a goal.

Since it is part of a manager's job to get their work done through
others, managers need to understand why people do things (that is,
what motivates them?) so that s/he can convince their employees to
work towards the goals of the organisation.

Managers need to be aware that the things that motivate them may not
necessarily motivate their employees.

Managers need to provide the right organisational climate to ensure
that their employees can see that by working towards the
organisational goals they are also achieving some of their own goals.
These goals could be such things as financial rewards or personal
rewards such as the respect of their colleagues or job satisfaction or
a combination of any number of things that the employee considers to
be important.

Yvonne McLaughlin suggests that there is an equation, which gives a
good model of the basic requirements, and how they relate to each
other in order to achieve the best staff performance in an
organisation. (Source:http://opax.swin.edu)

Performance = Ability x Effort x Organisational support

The performance of an organisation's staff is an equation of their
ability to do the job (what they can do) multiplied by the effort that
they are actually willing to put into the job multiplied by the amount
that the organisation helps them to achieve their tasks.

Over the years a number of management theories have been put forward
in an attempt to explain the nature of motivation and suggest ways in
which it may be improved.

Frederick Taylor's Principles of scientific management Theory.

Taylor was an American engineer who studied production methods in the
steel industry. He was interested in job design and his theory
suggested a production-line approach (conveyor belt).

Taylor believed that complex jobs would be most efficiently performed
if they were broken down into separate operations so that very little
could go wrong. Each operation would be performed by a separate
employee. The whole job could then be completed in a series of stages
by a number of employees working together.

Taylor believed monetary reward was an important motivating factor
that would drive the system. Higher rates of pay could be offered as
an inducement for increased rates of output.

Today, you still find relics of scientific management- for example in
banks where the personal banker simply follows the instructions given
by a computer that tells him or her what steps to carry out in opening
a bank account, details of a customer’s account/ balance without
asking the customer etc. This makes the process quick and customers
are satisfied with the service they have received.

Although, the motivation theory by WF Taylor will increase
productivity and efficiency in HSBC bank by reducing the number of
minutes customers wait on the queue before seeing an advisor or a
cashier, limited number of time cashiers deal with customers, division
of labour etc, it will not work very well in the bank. When people get
treated like machines, they get tired and dehumanise in the job. They
will not want to work and become less motivated.

Abraham Maslow's 'Hierarchy of Needs' Theory

Maslow developed his 'Theory of Human Motivation' since 1943 and has
been popular since the 1950's.

It is based on meeting people's needs in the workplace. This theory
suggests that unsatisfied needs can lead to dissatisfaction.

Maslow identified a range of needs that were largely hierarchical in

· Physiological needs- are for reasonable standards of food, shelter
and clothing in order to survive. This level of need will typically be
met in HSBC by the receipt of money in exchange for work done.

· Safety needs- are also concerned with physical survival. In the
workplace these security needs could include physical safety, security
of employment, adequate rest periods, pension and sick schemes.

HSBC ensures the safety of everyone at the workplace including
customers and so it uses cameras to not only prevent crime but to also
ensure that everyone is safe from harm.

· Social/love needs- are concerned with an individual's need for
affection and love. Most people want to belong to a group. As
organisations grow, individuals can lose their identity, becoming just
another number or face in the crowd. Organisations therefore need to
find ways of building individuals into groups and teams. Banks like
HSBC generally have a very strong reputation of socialising among

· Esteem Needs- a stable high self evaluation based on capability and
respect from others e.g. prestige job titles.

· Self actualisation needs- fullest potential e.g. challenging job
assignments, promotion opportunities.



Esteem Needs


Social Needs


Safety Needs


Physiological Needs


Douglas McGregor's theory of X and Y

Douglas McGregor's theory of the x and y managers was published in a
book called 'The Human Side of Enterprise', in 1960. His theory
divided all managers into two groups; group x and group y.

Theory X managers work on the assumption that all human beings have an
inherent dislike of work and will avoid it if they can. Due to this
they work on the principle of reward and punishment, or stick and
carrot. McGregor believed that Theory X managers are lazy, obtuse,
dislike responsibility and need to use control factors to motivate
employees, such as pay.

Theory Y managers are creative and aim to develop potential. They work
under the assumption that control and punishment are not the only way
to get people to work. People will be more productive if they are
committed to the aims of the organisation.

The manager needs to be aware and understand when to use theory X and
when theory Y is better. As in the case of HSBC opening a new branch
in Kingston, they are employing new staff who might have not worked
for HSBC or know very little about their job roles, in this case
theory X should be used to lead and direct these new employees and
then develop theory Y with time as they learn to do their jobs well
without supervision.

Frederick Herzberg's motivation Theory

Herzberg was the first to show that dissatisfaction at work nearly
always arose from different factors such as unfair treatment of
employees, unfair management practices, low pay, poor working
conditions etc.

Herzberg suggested that the existence of any form of dissatisfaction
will lead to absenteeism, poor levels of output, resistance to changes
and negativity in the work place.

According to Herzberg, Man has two sets of needs; one as an animal to
avoid pain, and two as a human being to grow psychologically.

If staff are not well motivated and developed, there are chances that
they would not do their job well or they might even leave the job and
go elsewhere. This will result to a number of absentees, which will in
turn increase staff turnover.

A survey by Development Dimensions International published in the UK
Times newspaper in 2004 interviewed 1,000 staff from companies
employing more than 500 workers, and found many to be bored, lacking
commitment and looking for a new job. Pay actually came fifth in the
reasons people gave for leaving their jobs. The main reasons were lack
of stimulus jobs and no opportunity for advancement - classic Herzberg
motivators - 43% left for better promotion chances, 28% for more
challenging work; 23% for a more exciting place to work; and 21% and
more varied work.

Employees will not do their job well if they are not encouraged or
challenged to progress further in their jobs and careers, and this
might lead to high number of absentees or high turnover.

An organisation should recognise the efforts of their employees and
reward them. A motivated employee produces good work, enjoy their work
and achieve good success in their work.

If HSBC spends a lot of money recruiting new staff, they will not want
to lose those employees. They will have to motivate them so that they
could stay in the job.

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