Task 1: Investigate how Human Resource Management contributes to the Achievement of Organizational objectives:
Identify three key HRM activities of the Organization as staffing, recruitment, training, Motivation etc.
Human Resource Management functions have a variety of activities e.g. deciding staffing needs, recruiting and training the employees, ensuring they are high performers and also dealing with performance issues. Human Resource management is based on the well-organized utilization of employees in achieving two major objectives within an organization. The first objective is to effectively make use of the talents and abilities of the employees to get the operational objectives that are the key plan of the organization. Along with understanding the objectives of the organization, Human Resource management also look to make sure that the individual employee is satisfied with the working environment, the reward and benefits that they receives.
"Human Resource can be described as the organizational function accountable for obtaining and maintaining qualified employees. In today's complex environment, fulfilling that mission is a major contributor to an organization success". (American Management Association.2000)
Human Resource department of ScottishPower is responsible for Employee Relations, Recruitment, Staffing, Training and Development, Rewards, Pensions, Facilities, Fleet, Security and Health & Safety.
"Our people are at the heart of our success". (Nick Horler, ScottishPower CEO)
"ScottishPower is all about people. In Human Resources, we are responsible for attracting, recruiting, developing, supporting and looking after the welfare of all of our 10,000 people".(Duncan, 2009)
People are one of the main resources used by organization. ScottishPower recognises, that it is 'powered by people'. HRM is concerned by organising and looking after people in the work place. On a day by day basis this includes recruitment, training, selection and improvement and assessment of staff performance. An important element of Human Resource Management is workforce arrangement. This is putting the right people in the right place at the right time. It also involves recognizing how many people needed to enable the business to drive at full efficiency. These people are required to have the right capability to do the job. Development boosts the skills of the existing workforce. The energy industry is changing fast which means it is very important to recruit and train people with the right skill to carry out new jobs. This is mostly important in the increasing renewable energy industry.
Three Basic Functions of Human Resource Management
- Recruitment and Selection
- Training and Development
"Having the right people, in the right place, at the right time, is critical to organizational performance. Recruitment is an important activity, not just for the Human Resource team but also for line managers who are increasingly involved in the selection process". (CIPD, 2009)
The business of replacing or recruiting someone is an opportunity to rethink that what content of the job is/are required and also need to invest time in gathering information about nature of the vacancy. It is very important to consider the skills, experience and personal values required to carry out the role effectively.
Job descriptions are written statement that describe the responsibilities, duties, contribution and outcomes needed from a position and also required qualifications & experience of applicants for a particular job.
Person specification explains the requirements a job holder needs to be able to carry out the job effectively. These are most likely to include qualifications, training, experience and also personal qualities.
Job advertisement is a way to attract candidates for a particular job according by organisations. Advertisement of the job explains and defines the job description and requirements to job specification.
Mostly two main resources in which applications are received e.g. CV or application form. It's possible that these applications can be submitted on paper or electronically and also required that all applications should be treated confidentially. In the current recruitment process different companies adopt various ways to assess the application. Most likely the company web portal will direct the applicants to formal application form containing different competency based question. Moreover these forms help to extract the most desirable information from the employees.
Selecting candidate (short listing)
Selecting and short-listing candidates is a very important part of recruitment process. Though time consuming it is worth conducting it with care and consideration. Short-listing provide guidance so that brilliant candidate according to job specification will not miss out.
Normally interview has been the main key of assessing the suitability of candidates for a job. Mostly organizations use interview at the some stage in their selection process. Interviews are helpful for assessing such as personal characteristics as practical intelligence, communication and interpersonal skills.
Joining the organization
In this last stage of the recruitment process all applications are assess and finally select one candidate for the position. Well planned induction permits a new worker to become fully operational quickly and should be incorporated into recruitment process.
Recruitment into ScottishPower takes place at different levels. Two of the mostly important of these are at the Modern Apprenticeship Programmes and Graduate Programme. Since the 1990s recruitment activities for bigger organizations frequently takes place online. Also specific vacancies may be advertised in the local or national newspapers, University appointment boards, online, job centres and recruitment fairs. The ScottishPower online website presents a means of detail about the organization and careers. It provides applicants to download job description and application forms for Apprenticeships Programmes and Graduate Programme. In both cases applicants have to meet minimum requirements of qualifications and experience.
ScottishPower Recruitment process
"The right employee training, development and education, at the right time, provides huge pay-offs for the employer in better productivity, loyalty, knowledge, and contribution. Learn the move toward that will guarantee your training carry out a return on your investment" (Susan M & Heathfield, 2008).
Scottish-Power not only supports and promotes training and education programs to their employees, but Scottish-Power also encourage providing training to their partners and contractors, so that they also meet the high quality and safety standards of Scottish-Power.
The organization wants to make sure that people who have the right skills and experience to performance work at their best now and in future. Scottish Power give them support they need to grow and get to their potential on a different range of training programmes and some of the programmes lead to recognised qualifications. In 2008, training budget was of 3.5 million. The organization runs own training and Development Centres at Glasgow and Merseyside. Here we give a positive learning environment for all learners and also offer to continue building excellent development experiences. So, no matter whatever your aims, you will be able to grow, develop and achieve your potential at ScottishPower.
Scottish-Power coordinates and collaborates with young and underprivileged people from the society for and provides them education and promotes them for getting education in the field of Energy Sector. Following are few way through which Scottish-Power provide training to their employees.
- School Based Programmes
- Community Based Programmes
- Work Based Programmes
- Staff Development Community
In organization, administration consists of the performance or management operations and the making or implementing of key decisions. Administration can be defined as the familiar process of organizing the people & resources economically thus to direct activities toward common goals and objectives. Administrators, engage in a common set of objectives to meet the organization goals. These common functions are;
- Planning: Planning is usually considered to be one of the four major purposes of management, along with organizing, coordinating, leading and controlling. Simply planning is identifying where we want to go, why we want to go there, how we will get there. The planning functions involve establishing goals, objectives and arranging them in rational order. Administrators also connect in both short range and long range planning.
- Organizing: Organizing involves identifying responsibilities and specifying organizational relationships. The function is to achieve coordinated effort among all the elements in the organization.
- Staffing: staffing means filling job positions through the right people at the right time and at the right place. It involves shaping the staff needs, writing job descriptions, recruiting and screening people to fill the job positions.
- Controlling: Controlling the organization is the function that appraises the quality in all areas and detects potential deviations from the organization plans. This makes sure high quality performance and satisfactory outcome even as maintaining an orderly and problem free environment.
- Budgeting: Budgeting is a main administration department which produces employee's salaries, sickness, taxation, leave etc.
Justify how the objectives of these were achieved by effective management of human resource.
Anyone who is known with the main organizations in their area probably has experimental firsthand (how considerably the business environment has changed in recent years in modern world). These changes have had a major impact on organizational efforts to be successful. In almost every organizations effort has been made to more clearly identify and then focal point on factors that impact their success. One aspect that look like to be getting more attention than other, support the people who work for organizations. What organizations are recognized for is that their probability of sustained success is most dependent on learning to get the maximum out of their employees. Such the recognition has had a major impact on the practice of human resources management. Business forecasters predict that the role of employees, human resource management, managers and personnel are expected to see further changes in the decades ahead. Hence, individuals entering the business environment today need both as an understanding of the importance of the human resources and effective human resource management to organizational success. As we are in the twenty first century, it's becoming completely clear that the effective management of organization's human resources is a key source of competitive advantage and May even is the only most important determinant of an organization performance over the long term.
The effective management of HR has resulted in achieving some objectives & goals of the organization resulting in individual improvement and overall organizational progress. The justifications of a few of them are given below:
- Planning will support organization in setting clear goals, aims and objectives, so that organization pursue in correct path.
- Organizing supports the effective management of human resources resulted in development of health and safety of the employees and work environment.
- Better communications ensuing knowledge transfer and quick performance of different activities within the organization and also outside the organization. This also makes sure that the employees are well informed and their voices are better heard and taken action. Supports the objective of staffing and controlling in respective manner.
- Budgeting supports in order to maintain finance of the organization incompact with the requirements and objectives of firm.
Refer to at least two HRM models as Contingency Model, Harvard Model, Ten C Model, Seven Step Model, Business Process Model etc--.
Human Resource Management models can be classified as any Harvard type models or matching models. A range of models which have been put forward can be differentiated in provisions of a number of characteristics, mainly the degree to which we take a hard or soft approach. In today's economy where human being capital resolves growth and success of an organization both through hard and soft approach to HRM. (Storey, 1989) has distinguished hard and soft models of HRM, typified by the Michigan and Harvard models respectively.
Hard and Soft Approach to HRM
HRM practice is theorised as having departed alongside the two lines-Hard (The Michigan School) and Soft (Harvard Model). However it is right to say that the difference between the two has weakened in veracity as modern HR practice typically deploys fundamentals of both hard and soft models. In simple terms, Hard HRM prioritises rational profit maximising and views the employee as a 'headcount resource'. (Legge, 2005)
The Hard approach to HRM put emphasis on an employee as a "commodity" or a "resource" being as much a resource as land, capital etc. Only to be treated better increase of a short supply or increase of playing a central role in achieving the organization goals. Methods of implementation can vary depending on a calculative and quantitative approach in a rational mode. Hence it a way of regarding people as human capital whose development more returns.
Hard HRM is as calculative and tough minded as any other branch of management, communicating through the tough language of business and economics. This emphasis on the quantitative, calculative and business-strategic aspects of managing the "headcount" has been termed human asset accounting (Storey, 1987). The hard HRM approach has some kinship with scientific management as people are reduced to passive objects that are not cherished as a whole people but assessed on whether they posses the skills/attributes the organisation requires (Legge, 1995; Vaughan, 1994; Storey, 1987).
"The Soft HRM spaces a higher value on the human resource as a valued asset, and foregrounds their proactive capability, commitment and motivation based on a unitarist view of mutual obligations and mutuality". (Barney, 1991)
The Soft approach to HRM sometime known as development, stresses human side, skill development, collaboration and place for union in this model. Also employee being "resourceful" and a most important source of competitive advantage by use of human relations, which involves too attractive performance by using communication, motivation and leadership to boost commitment and loyalty. The soft model regards as improved satisfaction in the management.
Soft HRM places an emphasis on "human" and is associated with the human relations school of Herzberg and McGregor (Storey, 1987). Legge refers to this as "Developmental Humanism" (Legge, 1995, p.66-67). Whilst emphasising the importance of integrating HR policies with Business objectives, the soft model focuses on treating employees as valued assets and a source of competitive advantage through their commitment, adaptability and high quality skill and performance. Employees are proactive rather than passive inputs into productive processes, capable of development, worthy of trust and collaboration which is achieved through participation (Legge, 1995, pp 66-67).
Task 2: Examine HR Planning and developments in the Organization.
Select at least three HR planning and developments methods.
To develop the base organization with 33000 employees the planning and development methods are discussed below. The planning and development methods carried out to boost the performance of the individual and whole organization. The planning and development activities includes provision of
- To make sure better team work and management
- Offer consultancy services
- Understanding the work procedures, culture and work norms etc
Human Resources planning and development is a structure for the growth of human capital within this organization. Human Resources development (HRD) is a combination of training and education which make sure that continue growth and improvement of both the individuals and whole organization. ScottishPower is an organization that capacities of individuals depended on their access to education. Human Resources Development (HRD) is the means that drives the process between learning and training. Human Resources Development (HRD) is not a defined object, but a series of organized procedure with the specific learning objectives. Human Resources Development (HRD) is the arrangement that allows for individuals development, potentially satisfying the organizational objectives and goals. The development will benefit both, individuals and the organization. Human Resources Development (HRD) views staffs as an asset to the organization whose value will be improved by development, its primary focus on staff development and growth. It highlight developing individual potential skills, Human Resources Development (HRD) can be in small room group training, vocational course or coaching and mentoring by senior member of staff with the aim for a desired outcome that will build up the individuals performance. A successful Human Resources Development (HRD) plan will prepare the individual to carry out a higher level of work, the organized learning over a given a specific period of time to give the possibility of performance change.
- Workforce Planning method
Workforce planning is an important activity in an organization. It begins with analysis of the strategic position of the organization. The results of this analysis then provide for a forecast of the required demand for employees by the organization and how this is expected to be supplied. The last stage involves the establishment and implementation of a human resources plan which try to deliver the right number of people, with the right skills, in the right place and at the right time for the organization.
Workforce Demand Forecasting
Putting a good quality Human Resources plans together, needs an organization to create a reasonably accurate forecast of workforce size. Main factors to think in this forecast are:
- Demand for existing & new products
- Business disposals & product closures
- Introduction of new technology e.g. new production equipments
- Cost reduction programmes
- Changes to the organisational structure
- Business achievement, strategic partnerships, joint ventures
Workforce Supply Forecasting
The first point for estimating supply forecasting is the existing workforce of an organization should take account of:
- Scheduled changes to the composition of the existing workforce e.g. promotions, transfer and turnover.
- Regular loss of workforce e.g. through employment and retirement.
- Potential exceptional factors e.g. actions of competitors that make problems of employee's retention
- Labour movement in the country as a whole.
By evaluating the forecast workforce supply and demand, it is also possible to bring together a forecast of net workforce size. This then wants to be compared with the strategic requirements for the organization. The effect is the workforce gap which is a forecast of too few or too many employees.
Human Resource Management Policies to Close the Workforce Gap
The main HRM activities to manage the workforce gap include
- Recruitment planning
- Training planning
- Redundancy planning
- Staff Retention Planning
The performance review planning and development (PRPD) affects on general member of staff in the organization. This aims to provide positive feedback on employing the 33000 staff, support them in work load planning and improve their professional improvement activities and also help them to carry out tasks in accord with the organization policies & goals. Organization performance review planning and development (PRPD) procedure follows best practices, although several of these best practices can be implemented even with manual systems, various become much easier to achieve with automated solutions, include:
- Reviewing Process
As computerization process makes it much easier to route forms, individuals can participate more constantly and dependably in the review process.
- Cascading Goals
Goals are rarely an individual's responsibility. The majority of goals are achieved because of the efforts of many people across this organization. Performance Management professionals agree that supporting & cascading goals, and also shared accountability that is vital to an organization success. Creative companywide computerized application seriously simplifies the task of establishing shared goals and also make sure that employees are working toward the organization overall objectives.
- Pay For Performance Culture
A good quality automated arrangement includes a Compensation Planning element giving directors easy access to all the information they required to reward individuals for real performance. It is right to use to 360 degree feedback, goal achievement metrics, review performance & data notes taken throughout the year to make sure the managers make consistent, fair and quantifiable decisions. Thus, employers can decrease the cost of overcompensating underperformers and can boost employee engagement across the organization. The supervisors take the responsibility of carrying out the performance analysis and rating of the employee's end of each year.
The performance management of employees has been modified to help of new policies which are;
- Performance review & development plan
- Employees Study Support plan
- Performance Reward & Recognition plan
Critically evaluates their effectiveness to meet organizational objectives.
- Effective planning for staff requirements
- Appropriate time delivery of organizational objectives
- Make sure integration with strategic and operational planning procedures
- Support personal goals with organization goals to ensure better success in work
Performance Review Planning and Development (PRPD)
- Appropriate time feedback to improve performance
- Effective planning of work load to provide the needs of the organization
- Effective and efficient training via different procedures
Performance Management Program (PMP)
- Develop and implement friendly environment
- Develop individual and organizational capability accordance to the strategic plans, organizational goals.
Training and Education Programs:
- Developing new skills in employees
- Increasing coordination and communication among departments
Increment in Salary and Bonus system:
- Bonus system is introduce to increase the effectiveness
- Salary increment programs also introduce
- Promotion programs are initiates
- Pension programs are also introduce
Task 3: Analyze ways in which performance of HR may be enhanced in the organization.
Review how HR performance in the identified Organization is currently indicated and monitored.
- Motivation of the employees
Sheila Duncan, Scottish Power Head of Human Resources explained the thinking behind the programmer: "Team leaders play a significant role within Energy Retail, focusing on the delivery of great customer service. They require having the ability and motivation to inspire the hearts and minds of their teams to achieve new performance levels."
- Professional development activities for all member of the staff
- Development and implementation of improved workforce management policies and practices in the areas of performance management, recognition and reward
- Professional support to supervisors & managers in the planning and implementation of organizational changing processes
Compensation e.g. payment in the form of hourly wages or monthly salaries and benefits e.g. insurance, vacation, pensions, sick days, modified workweek and stock options etc, can be attractive because an employee's performance can be influenced by compensation and benefits. In the best situation, employee's feel they are paid what they are worth, are rewarded with satisfactory benefits, and receive satisfaction with good work environment. Compensation should be adequate, legal & ethical, motivating, fair & equitable, cost-effective, and also able to provide employment security (Cherrington, 1995).
Try to suggest ways to improve this.
The Human Recourse performance in this organization is monitored by the following ways:
- Better integration of functions and departments.
- Improve coordination and communication among employees
- Proper planning of organization goals, objectives, and aims
- Effective ways to complete organizational goals
- On time delivery of work and improved performance
- Improvement of skills sets for the employees
There is different ways of improvement for the currently indicated methods are:
- Better group work and coordination added up with discussions & opinion polls, where the staff have the chance to voice their opinions will absolutely work out to improve the work effectiveness
- Make the organizational goals clear to staff and align their tasks accordingly
- On a regular basis, monitor their work and suggest ways of improvement for their work as well
- Encourage the staff to improve their skills set according to the market or client requirement to make sure greater success
- Peer to peer evaluation and 360 degree evaluation can add value to the existing work of the member of staff and improve it accordingly.
Area of Concern in HRM at Scottish Power:
- Improvement in Customer Services
- Investment in Technology
- More involvement from Corporate level
- Introduction of new training programs
Positive Aspects of Scottish HRM:
- Good Corporate level governance
- Support by Corporate level through Social Entrepreneurship
- Employees friendly salary & incentive program
- Employees friendly working environment
- Education through training programs
Research is an element of all the other six functions of human resource management (HRM). With the number of organizations participating in some form of international businesses, the need for human resource management (HRM) research will only continue to grow. Hence, it is most important for human resource professionals to be up to date on the latest trends in staffing, performance appraisals, training & development, employee and labour relations, compensation & benefits, and safety & health issues in the international market.
One professional organization that only offers statistics to human resource managers is the Society for Human Resource Management; this is largest professional organization for human resource management professionals. Much of the research carried out within organizations is sent to Society for Human Resource Management to be used for compiling international statistics.
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Introduction to the company
ScottishPower is one of the large organisations with practical experience across the complete energy supply chain of United Kingdom and United State. ScottishPower owns and operates gas, hydro, coal and renewable generation and supplies transmission, distribution and provide services in both countries.
Scottish Power also has considerable experience in wind development and in clean coal technologies. Scottish Power supply 3.5 million energy consumers across the UK and 1.5 million consumers in the Northwest US. As power sellers, purchasers and traders we have direct experience of the west coast US electricity markets.
Scottish Power Plc was founded in1990, it is based in Glasgow and vertically integrated Energy Company is also Britain's fifth biggest energy supplier. As part of the utilities industry, it is the distribution network operator for the southern and central Scotland and the Merseyside and North Wales regions. The organization also supplies electricity and natural gas to homes and business around the United Kingdom and also generates power for supply to the grid. It owns PPM Energy in the United States and it is quoted on the London Stock Exchange and has a secondary listing on the New York Stock Exchange. The Spanish group Iberdrola made an 11.6bn takeover bid in 2006. The offer was officially approved by shareholders at an EGM on 30 March 2007, effectively creating Europe third major utility company.
Our vision is crystal clear
"The future will be built on delivering our vision and becoming the UK's best integrated energysupplier and a world leader in renewable". (Nick Horler, Scottish Power CEO)
"Our strategy is simple to become more able and more agile by developing a more entrepreneurial and enterprising culture that plays to the strength of our experience and in depth expertise". (Nick Horler, Scottish Power CEO)