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Human Resource Management

Unit Code: K/601/1264

Table of Contents
Introduction......................................................................................................................................3
Task 1: Understanding the difference between personnel management and human resource
management.....................................................................................................................................4
P 1.1: Personnel management Vs human resource management.................................................4
P1.2: Assessing how human resource management functions help an organization in achieving
its purpose....................................................................................................................................5
P1.3: Role and responsibilities of line managers in human resource management and the
support system.............................................................................................................................7
P1.4: Impact of legal and regulatory framework on human resource management....................9
Task 2: Recruiting employees........................................................................................................10
P 2.1: Reasons for human resource planning in organizations..................................................10
P 2.2: Stages involved in planning human resource requirements............................................10
P 2.3: Comparing recruitment and selection process in two organizations...............................11
P 2.4: Effectiveness of recruitment and selection techniques in two organizations..................13
So, it is clear that, large companies get more benefit from the recruitment and selection
process than the small companies..............................................................................................14
Task 3: Understanding how to reward employees in order to motivate and retain them..............15
P 3.1: Assessing the relation between motivational theory and reward at Virgin Media..........15
P 3.2: Evaluating the process of job evaluation and other factors determining pay..................18
P 3.3: Effectiveness of reward systems in different contexts....................................................20
P 3.4: Methods organizations use to monitor employee performance.......................................21
Task 4: Knowing the mechanisms for the cessation of employment.............................................23
P 4.1: Identifying the reasons for termination of Faisals employment contract with The
Chicken Master and explaining other reasons for cessation of employment............................23
P 4.2: Employment exit procedures used by two organizations................................................24
P 4.3: Impact of legal and regulatory framework on employment cessation arrangements with
an organization...........................................................................................................................24
Conclusion.....................................................................................................................................26
Reference.......................................................................................................................................27

Introduction
Human resource management is mainly deals with most complicated inputs of an organization
that means people. It is related with selecting, training, appraising, compensating and terminating
the employee. This is the most important factors to achieve the organizational goals and
objectives. Reward is an effective tool to influence the employee performance. Reward motivates
the employee to work enthusiastically. For that reward should be based on the performance of
employee (Chanda and Shen, 2009). This is the effective tools to motivate and retain the
employee as retention rate of employee is mostly depend on the recognition of his or her
contribution to the organization.Reward increase the employee satisfaction, motivate perform
better, make them loyal to the organization and reduces the employee turnover and absenteeism.
On the other hand, Employee cessation is a crucial decision taken by the organization. For
wrongful act or any unfairness in the job employee can be dismissed from the job (Townsend et
al., 2011). For several reason employees job is subject to cessation such as resignation,
retirement, termination of job contract.

Task

1:

Understanding

the

difference

between

personnel

management and human resource management


Personnel management and human resource management has become very important in the
modern business organizations. Both of them play important role in managing the manpower of
an organization. The first one is a routine function whereas the last one is a strategic function.

P 1.1: Personnel management Vs human resource management


Both personnel management and human resource management are familiar in organizations.
Personnel management is a traditional approach of management whereas human resource
management is considered as a modern approach. Personnel management is managing the people
or employees in an organization whereas human resource management is managing the people
and their strength. Employee relations, employee benefits, employee administration etc are
focused in personnel management. On the other hand, employee training, development,
employee retaining in the organization etc are focused in HRM.

Figure 1: Personnel Management Vs Human Resource Management (HRM)

In personnel management, people are considered as an element or input for achieving goals of an
organization. But in human resource management or HRM, people or employees are considered
as an important resource for achieving an expected output. Personnel Management or PM
designs the job based on labor whereas HRM designs the job to improve team building and team
work.
When a company follows personnel management, it is not willing to spend money for training
and development of the employees whereas HRM considers this as an important investment. In
personnel management, decision is adopted by the top management where no participation of
lower level employees is allowed. But in HRM, participation and suggestion of all level of
employees is encouraged. Employees find themselves important in decision making.
PM or personnel management adopts decision without much consideration of the interest of the
employees whereas HRM considers the interest of the employees. Here, employee efficiency,
effectiveness and satisfaction are valuable to keep the employees motivated towards their work.
It increases production.
Greenergy, Westcoast etc follow personnel management or PM in managing their employees as
they have small number of employees. On the other hand, Swire and John Lewis Partnership are
one of the largest companies in UK with thousands of employees and both companies follow
HRM in managing their employees.

P1.2: Assessing how human resource management functions


help an organization in achieving its purpose
The prime aim of a business organization is to earn money doing business by offering products
or services. To be successful, there are some other objectives also. They are:

To make a large number of sale,


To increase profit,
To have market for the products,
To have a brand name,
To increase the number of customer,
To expanse the business area etc.

These are the most promising goals of a business firm. In order to achieve them, a firm has to
have challenging, specific, executable, and achievable goals.
For achieving above goals, HRM has several functions. It helps Swire and John Lewis
Partnership for achieving their goals. Functions of HRM in Swire and John Lewis Partnership
are:
1. Selection: An organization, whether it is capital based or labor based, must need some
employees. But there are thousands of people interested to work in Swire and John Lewis
Partnership. For having the best performers, they have to choose the suitable ones
(Townsend et al., 2011).
2. Recruitment: Recruitment means building pool employees for the vacant posts of an
organization. It helps gathering people who are willing to work in Swire and John Lewis
Partnership.
3. Payroll Administration: Employees in an organization must demand salary or benefits in
lieu of their labor or service. Suitable and timely payment of the salary and benefits
encourage employees giving more effort on their assigned task (Bondarouk, Ruel and
Looise, 2011).
4. Employee Motivation: Motivated employees have higher efficiency than demotivated
employees. Motivation helps employees to devote themselves in their job. It may be
monetary or non-monetary. Good salary, security, better work environment etc increase
motivation among employees.
5. Reward Management: In an organization, every employee likes to have the recognition of
their effort and success. Reward system increases employee motivation and engage them
in their work.
6. Employment Termination:All the employees in an organization do not perform well
simultaneously. Some becomes old, some become discouraged, some become lazy etc.
So. Termination is required for various reasons. It increases the chance of recruiting new
employees in the organization (Townsend et al., 2011).
7. Training and Development:Employees do various task in an organization. Some of them
are routine work whereas some of them are irregular work. Again new employees have
little knowledge about their job. So, all of them require training for developing their skills
and productivity.

8. Performance Management: The most important thing of an employee is his/her


performance. Performance management involves the planning, monitoring, recording and
actioning of the employee performance.
9. Employee Relations: Day by day, employees are facing newer challenges. So, it has
become difficult for an employee to do the entire task at his or her own effort. Employees
require cooperation. A good bondage among employees makes a friendly work
environment. HRM always tries to develop employee relation among employees of
different levels (Berman, 2015).
Above discussion makes it clear that HRM plays a great role in managing the human resource of
Swire and John Lewis Partnership.

P1.3: Role and responsibilities of line managers in human


resource management and the support system
A line manager involves in directing the subordinates and is responsible for organizational task
in Swire and John Lewis Partnership.
Selection:For completing a task, efficient and encouraged employees are required. A line
manager has to select employees/subordinates for his/her department as well as for
related department.
Training: Only selection of employees is not enough for a line manager. Providing

required training is another important factor (Berman, 2015).


Recruitment: There is huge number of people waiting trying to get a new job. All of
them are not equally qualified. Recruitment helps creating a pool of labor from where a

manger can select his/her required employees.


Mentoring: Employees under a line manager require advice for developing their skills
and productivity. Line managers of Swire and John Lewis Partnership help subordinates

in developing their skills through advices (Berman, 2015).


Appraisal: Line managers of Swire and John Lewis Partnership have to evaluate the

performance of the followers. It helps them deciding the promotion of the subordinates.
Discipline: Discipline is the root of success. Line mangers of Swire and John Lewis
Partnership always try to create and maintain discipline in the work area.

Grievance: Sometimes, many unexpected events may occur. Expected results may not be
come out. Again, employees may fall any unexpected situation. A line manager has to
consider all of these issues as a part of his/her responsibility (Vanhala and Dietz, 2015).
Ethical issues: Maintaining the ethics in workplace is very important providing reward,
promotion, recognition, better work environment etc. A line manager is responsible for
developing a ethical work environment in his/her department.
Equality of opportunity: Line managers of Swire and John Lewis Partnership have to
create equal opportunities for all employees.

Figure 2: Line managers responsibility in HRM

Again, he/she is also responsible for three specific functions such as:
i.

Line function: A line manager directs his/her subordinates towards the assigned goals and
objectives. He/she is primarily responsible for the task of his/her own department. He/she

ii.

is also important for other related areas of his/her work.


Coordination function: Only directing the subordinates is not enough for a line manager.
He/she has also to coordinates the followers so that they can perform in a better way. It
helps the employees learn quickly from the manager (Vanhala and Dietz, 2015).

Staff function: Staff function is another important area for the line manager. He/she has to give
advice to the subordinates and assist them when requires.

P1.4: Impact of legal and regulatory framework on human


resource management
Legal and regulatory framework is important for every society and business. Local government
and international organizations such as EU, WTO, UN is responsible for creating a legal and
regulatory framework for a better business environment.
There are at least 9 laws and regulations in UK for creating a better legal and regulatory
environment. They are:
a) Sex Discrimination Act (1975/1995/1997)
b) Race Relation Act (1992, amended in 2000): It protects employees from any kind of
gender, marital, color, race, ethnic, nationality, origin etc discrimination in the workplace.
c) Equal Pay Act- 1970: It ensures equal payment opportunity and condition for various
employees in the environment (Thompson, 2011).
d) Disability Discrimination Act 1995 amended 2005: It protects the disable people in the
society in getting job by creating an ethical environment.
e) Employment Equality Act 2003, 2010: It also protects employees from any discrimination
based on gender, race, and disability.
f) Employment Act 2008: Any dispute between the employees and employer is solved by
various provisions through this law (Vanhala and Dietz, 2015).
g) Work and Families Act 1998: Work-life balance of the employees of different
organizations is ensured by this law (Thompson, 2011).
h) Data Protection Act 1998: It provides guidance on gathering, storing, transferring and
destroying data inside and outside organization.
i) Rehabilitation of Offenders Act 1974: It prevents employees from any kind of
discrimination based on their minor criminal activities across the life.

Task 2: Recruiting employees


Recruitment is one of the important functions of HRM. It means creating a pool applicant for
selecting suitable employee for job.

P 2.1: Reasons for human resource planning in organizations


In the given scenario, the organization is facing a higher employee turnover due to various
reasons. Of them, lack of proper HR planning is the most important one.
There are several reasons why HR planning is important in an organization. They are:
i.

Achieving organizational goal: An organization becomes successful if there is efficient,

ii.

energetic, and productive. It is possible only when there is a proper HR planning.


Increased volume of business: A business always like expansion. When there is a suitable
and appropriate HR policy, the organization is sure to succeed. It also increases its area of

iii.

operation simultaneously (Thompson, 2011).


Changes to the required skills sets:Different employees in the organization have different
skills. Some of them have only one skill whereas some of them have more. A suitable HR

iv.

plan helps an organization increasing the required skill set.


Employee turnover: High employee turnover is not good for any organization. In the
given situation, high employee turnover has been occurred due to the lack of proper HR

v.
vi.
vii.
viii.

planning. Efficient HR plan helps reducing the employee turnover (Thompson, 2011).
Labor cost control: Proper HR plan helps organizations utilizing the human resource in
the most efficient way. So, it reduces the labor cost.
Managers are given required data and advices from HR.
It helps determining the recruitment need.
It forecasts present and future employee needs.

It helps selecting the right people, etc.

2.2:

Stages

involved

in

planning

human

resource

requirements
There are several stages involved in planning the human resource requirement for an
organization. In the given scenario, there followed procedures in HR are faulty. If the stages in
HR planning requirement procedure can be followed properly, a better work environment and

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management of HR is possible. The outline of the stages of HR planning requirement is given


below:

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Figure 3: Stages in HR planning process

i.

Analysis of existing staff: At first, current condition of the staff of the organization is

ii.

required to analyze. The ins and outs of the staff are analyzed to gather knowledge.
Estimating the change in resource: Organizations have various resources. HR uses the
resources to make the organization successful. If there is a big change in other resources,

iii.

change in HR is also required (Gilbert, De Winne and Sels, 2015).


Forecasting staff requirement: This is the 3rd stage of HR planning. Here required number
of future staff is determined.

Personnel Management Action Plan: After engaging the employees in the organization, proper
management of them is done through personnel management (Vanhala and Dietz, 2015).

P 2.3: Comparing recruitment and selection process in two


organizations
There are various companies in UK. Among them, ASDA and TESCO Plc are selected for
evaluating their recruitment and selection process. Tesco follows the following process:

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Tesco at first identifies the vacant posts. Then it develops a position description. After that, a
recruitment plan and search committee is formed. Next, Tesco implements the recruitment plan
and make a short list of the applicants. Then, they applicants are invited for interviews and
suitable persons are hired for the job (Tsui and Lai, 2009). At last, the selected persons are
employed on their positions.

Figure 4: Advertisement of Tesco for recruitment

Figure 5: Recruitment process of Tesco Plc

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Now, ASDA also follows nearly the same recruitment process as Tesco does with few
differences.

Figure 6: The recruitment and selection process in ASDA

The basic differences between the recruitment processes of the two organizations are that there is
a four week induction time period in ASDA for the new employees; eliminated applicants are not
informed through email by ASDA.

P 2.4: Effectiveness of recruitment and selection techniques in


two organizations
There are various recruitment processes. Effectiveness of the processes also varies. The process
that can provide better result is more effective than others. It can be verified using some steps.
Small companies get benefit in identifying vacancies because they have enough employees to
forecast human resource requirement and can be done easily and in an accurate way (Vanhala
and Dietz, 2015).

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In case of job description and specification, large companies have more benefits than small
companies as they have many employees and experts who can perform better.
In case of choosing the recruitment method, large companies have more advantage as they have
large internal and external sources of candidates (Thornhill, Saunders and Skinner, 2004).

So, it is clear that, large companies get more benefit from the
recruitment and selection process than the small companies.

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Task 3: Understanding how to reward employees in order to


motivate and retain them
Reward motivates the employee to work enthusiastically. For that reward should be based on the
performance of employee(Chanda and Shen, 2009). This is the effective tools to motivate and
retain the employee as retention rate of employee is mostly depend on the recognition of his or
her contribution to the organization.

P 3.1: Assessing therelation between motivational theory and


reward at Virgin Media
Motivation is the process of influencing the behavior of the employee to a certain direction by
providing and fulfilling the individuals needs and goals through their power to offer and
withhold satisfaction(McGovern, 2002). So, motivation is the tools to influence the will of the
employee and achieve the organizational goals.
On the other hand reward is the recognition of the employee contribution to the organization.
Reward can be financial reward or non-financial reward based on the employee
needs(McGovern, 2002). Job promotion, recognition, achievement are different forms of nonfinancial rewards.
Many scholars develop motivational theory such as A Maslow, F Herzberg, D McClelland, V
Vroom etc. in motivational theory, they describes various aspects and ways of giving motivation
by identifying the core needs.
According to the motivational theory of F Herzberg, two factors motivate the working
performance of the employee such as hygiene and motivation factors.

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Figure 7: Motivational theory of F Herzberg [Source: Made by Author, 2016]

Motivation factors include work recognition, congenial working condition, friendly environment,
healthy organizational cultures(Jones, 2008). Hygiene factors are the factors which demotivates
the employee such as compensation and salary.
According to the motivational theory of Abraham Maslow, motivation varies from employee to
employee which is depends on the needs(Jones, 2008). He classified the needs of human being
on five classes which are interrelated.

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Figure 8: Maslows Hierarchy of needs [Source: Made by Author, 2016]

According to the motivational theory of McClelland, three dominants motivators influence the
employee motivation and by born people hold one of these motivators such as need for
achievement, need for affiliation, need for power.

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Figure 9: McClelland's theory of needs [source: Made by author, 2016]


Another scholar victor Vroom develops the expectancy theory of motivation. Individual
performance is based on the employee personal skills, knowledge, abilities etc(Thornhill,
Saunders and Skinner, 2004). he separated effort, performance and reward and defined effort as
the expectancy, performance as the instrumentality, reward as the values.

Figure 10: VictorVrooms motivational theory [source: Made by author, 2016]


Virgin Media conforms to the different motivational theory such as F Herzberg, A Maslow,
McClelland, and VVroom. Virgin Media provides reward based on the employee performance,
ensuring employee friendly rules and regulation in the work. Moreover working with Virgin
Media is challenging and maintains a healthy organization cultures. Besides virgin media
determines the needs levels of the employee then reward them. Performance and rewards are two
distinct things in the virgin media. Finally it can be said that there is a direct relationship
between motivation and reward as the employee gets more reward for their performance become
more motivate to work.

P 3.2:Evaluating the process of job evaluation and other


factors determining pay
In order to establish internal relativitys, job evaluation is very much significant. According to
Armstrong [2010], job evaluation is a process of evaluating the worth of jobs within the
organization. So, job evaluation is the process which involves the collection of information
regarding job position and analyzes and records the gathered information for further uses. Aim or
objective of job evaluation is to determine the pay or salary structures(Thornhill, Saunders and
Skinner, 2004). Evaluating job involves job description and job evaluation where job description
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specifies the employees responsibilities, qualification, and decision making ability with the
given position within the organization.

Job evaluation process

Non-analytical methods

Ranking Method

Classification Method

Job as a whole

Analytical methods

Factor Comparison

Point Method

Requirements and elements of the jobs

Figure 11: Job evaluation method diagram, [source: design by author, 2016]
There are many ways to evaluate the job in an organization. The main outcomes of the job
evaluation are the salary or payment structures. In ranking method employee are ranked by the
position and hence determine thepayment(Tsui and Lai, 2009). Whereas in classification method
job are classified based on the responsibilities, accountability, decision making ability etc and
employee involving with taking strategic decision are get higher payment.
As the payment or salary is given as compensation against the work which employee exert, so
several factors such as organization size, responsibility of the employee, decision making
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authority, experience, skills, qualification, working environment, working condition are very
much influential to determine the pay structures.

P 3.3: Effectiveness of reward systems in different contexts


According to many researcher rewards system has significant impact on the employee
performance as it works as a motivator. According to Bratton and Gold, (2013), rewards consist
of several forms such as it may be intrinsic or extrinsic, financial or non-financial which option
is effective is based on the perception of the employee. That means what the employee expects
against contributing higher contribution to the organization success.
Extrinsic rewards are financial incentives which include bonus, salary increment, commission,
profit sharing, employee share options, loans, advances, relocation fees, pension scheme etc
which is given to the employee on cash(Bondarouk, Ruel and Looise, 2011). It motivates the
employee instantly and very much effective to the lower level employees. Salary increment is
one of the best reward systems to the employee. This will motivate them to work more eagerly
and show the maximum level of effort.
Intrinsic rewards are the rewards which includes recognition, promotion, praise, seniority, more
decision making authority, more responsibility, company vehicles, extended parental leave,
careerbreaks, contracts of employeeetc(Bondarouk, Ruel and Looise, 2011). Normally this type
of reward system is very much effective to the higher level management.
According to the Raymond [2014], a very positive strategy for motivation is rewarding the
employee for their performance and this reward system is based on the preference of employee
performance, loyalty, quality, leadership, and confidence etc(Gilbert, De Winne and Sels, 2015).
rewards work as a stimulator to boost up the skills which also enhance the present working skills
and performance. If the employee thinks that their contribution is evaluated properly they
become satisfied and become loyal to the organization. So, reward increase the employee
satisfaction, motivate perform better, make them loyal to the organization and reduces the
employee turnover and absenteeism.

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3.4:

Methods

organizations

use

to

monitor

employee

performance
To monitor the employee performance organization takes different initiatives and measures the
performance by different angles and indicators (Price, 2010). As monitoring the performance of
the employee is a vital part, so monitoring must be accurate and free from all kinds of biasness.
For that reason organization follows several appraisal methods, provides regular feedback and
sets the objectives which is SMART.
There are several methods to monitor the performance of the employee such as probation,
appraisal, feedback, performance indicators. Appraisal includes self evaluation, 360 degree
evaluation, checklist etc.
Probation is the preliminarily stage for monitoring the employee performance. In case of new
recruitment or freshers probation is very much effective. Feedback is also very much effective
and this is given to the employee on regular basis (Gilbert, De Winne and Sels, 2015).
Performance can be monitor against target versus achievement. For that organization set clear
and SMART objectives to their employee.
Virgin Media monitor the performance of the employee on regular basis. They have several
approaches to monitor the performance of the employee. To monitor the performance they have
standard. Normally they use self evaluation, 360 degree evaluation, checklist methods to monitor
the employee performance.
In self evaluation system employee of Virgin media is given to evaluate the performance by
itself. For that they are given instruction to fill up form by the management and most of the
questions are multiple choices (Thompson, 2011). The questions are set to find out the employee
understandability and depth of knowledge to handle a situation. Effectiveness of this system
mainly depends on the employeeshonesty and integrity.
The most effective monitoring system of Virgin Media is 360 degree evaluation method. In this
method employee is evaluated by several stakeholders of the organizationsuch as supervisors,

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customers, colleagues, employer etc. this is the more accurate method of evaluating and
monitoring the performance of the Virgin Media.
Checklist is another effective method of employee performance monitoring(Thompson, 2011). In
this system employee performance is monitored and evaluated by the immediate supervisor of
the employee. Virgin Media uses the checklist to monitor the day to day performance of the
employee.

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Table 0-1: Checklist of Virgin Media [Source: Virgin Media websites/checklist, 2016]

Task 4: Knowing the mechanisms for the cessation of employment


Employee cessation is a crucial decision taken by the organization. For wrongful act or any
unfairness in the job employee can be dismissed from the job(Townsend et al., 2011). For several

23

reason employees job is subject to cessation such as resignation, retirement, termination of job
contract.

P 4.1: Identifying the reasons for termination of Faisals


employment contract with The Chicken Master and explaining
other reasons for cessation of employment
Organization terminates their employee for several reasons. Cessation of employee can be
occurred for two main reasons (Townsend et al., 2011). First one employee itself leaves the job
otherwise organization fired the employee.
In the given case it is seen that Bob Jones, employer, fired Faisal from the job. The reason behind
the cessation of Faisal jobs are stated below:
Faisal has lack of integrity to the job. He cannot perform his duty properly. Moreover he
spends most of the time for his personal business during business hours without
informing anyone.
Spent significant working time by mailing his wife, helps his daughter to prepare
homework, design his own restaurant in working time.
Uses organizations resources for personal uses.
Poor performance of the job.
Employee handbooks of Chicken master clearly started that company equipment cannot used
without organization purpose. But Faisal did the same things though he is informed by Bob
Jones. For that reason employment contract of Faisal with Chicken Master is terminated as he
breaks the rules and regulation of the company. Moreover Faisal cannot perform the job for
which he is recruited, if the employee cannot match with the organizational culture, if the
employee breach the commitments of the job and finally if the employee does any unethical task
and breach the code of the conduct of the business.

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P 4.2: Employment exit procedures used by two organizations


In chicken Master exit procedures is very simple. Employee needs to submit two weeks notice
before exit and the line manager tries to find out the possible reason for exit. Moreover line
manager tries to retain the employee if possible.
On the other hand, In NHS Shetland organization exit procedures is comparatively complex issue
and includes four steps such as application for resignation, exit interview, request of reference
and finally review the application.
When the employee of NHS Shetland applies for resignation, HR department process the exit
procedures and inform the last working day to the employee and line manager. If there is any
incomplete task line managers assigned the task to other employees to complete.
Then employee is interviewed why he or she is leaving the NHS Shetland and company gives
much value to the information given by the employee and hence takes initiatives.
Line managers provide reference to the organization and finally mangers and HR department
review the exit policy and employee gets the exit permission.

P 4.3: Impact of legal and regulatory framework on employment


cessation arrangements with an organization
If Faisal claim was proven true that he was dismissed from the job as a victim of age and race
discrimination then the chicken master would compensate for damages faced by Faisal because
law gives the security of job. For that Chicken master could terminate Faisal from the job
without valid reason. Any kinds of discriminatory behavior such as race, gender, religion etc are
strictly restricted by the law in the organization. Company cannot fire any employee as a
discriminatory behavior (Parry and Tyson, 2010). If they do they need to compensate for that. So,
Faisal has the right to compensated by the Chicken Master.

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Conclusion
Human resource management process is evaluated critically in this assignment. Distinction
between personal management and HRM are clearly stated along with the contribution to
achieve organizational goal. Motivational theories are very much essential to understand the
reward system of the organization. Employee performance monitoring, exit procedures from the
organizational context are also discussed. At last the realization is that human resource
management is very significant to achieve the organizational aims, objective and run the
organization smoothly.

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