Role of Human Resource Management (HRM) in Organisation Case Study

Introduction of Role of Human Resource Management (HRM) in Organisation Case Study

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 The Human Resources Management (HRM) department usually goes through "recruiting, hiring, deploying and managing an organization’s employees." This department is generally accountable for making (Bowen and Ostroff, 2004) implementing the policies that govern the employees and looking after the organization's relationship with its employees. According to “Herzberg’s two-factor theory” which is also known as “motivation-hygiene theory” and “dual-factor theory” (Alshmemri, Shahwan, and Maude, 2017) as per this theory there can be some aspects responsible for attaining the satisfaction in the workspace, and there can be several factors for having dissatisfaction. Further two-factor theory is divided into two parts: Motivators consist of elements that provide an optimistic kind of satisfaction, uprising from basic conditions of the job, including recognition, attainment, or individual growth. On the other hand, the hygiene factor generally does not provide a positive kind of satisfaction, which would enhance motivation and reason for dissatisfaction due to company policies, supervisory practices, or issues related to wages. An employee generally refers directly to the factors for attaining satisfaction that deepen their pain point. Still, it should be considered that employees/staff play a vital role in an organization as they are regarded as valuable assets of an industry/ organization, those who help to attain success. The success of an organization depends on the satisfaction of its customers, which occurs when there are motivated employees as they can provide significant contributions to the organization. This may enhance their demand through new orders or initiatives to improve the quality of the product or service.

1.1 Role of HRM in Tesco and Sport Direct

The HRM team of Tesco proposes factors like providing an uplifting atmosphere in the workspace with a vision that employees performing in business can be resourceful. This helps them boost their innovative knowledge, potential, and expertise (Sirapongprapa, 2004). Building their human resource management introduces training sessions and advance drives that open and motivate the employees to promote their competence level. The HRM team also puts importance on extracting the best from their assets and achieving advanced creation to enhance their business goals and objectives, resulting in a more significant number of satisfied customers.

The HRM team of sports direct deals with the factors like looking (Cohen and King, 2017) “legal procedures, human resource planning, selection and recruitment process, reward system, motivation, employee performance monitoring, and cessation. “The organization has understood the role of HRM and had emphasized strengthening the system by setting up a dedicated management team which would ensure fewer turnovers of employees from the organization. In addition, the workspace atmosphere is so positive that it helps to provide an opportunity for job improvement, enlarging job availability, and many more.

1.2 Importance of HRM function to the success of the organization

The Human resource management team plays a vital role in an organization as in the absence of human resource management; the company will not be able to perform tasks like- recruiting efficient employees, measures to enhance and uplift the organization (Sims, 2022), maintaining a healthy and accepting workplace culture and environment. In addition, they help keep the employees motivated and make sure that the company is (Doorewaard and Benschop, 2003) working and maintaining their guidelines of regulating their policies and resolving any problem creating issues that may arise in the present or future.

The H.R. team of Tesco is to perk up the skills and potential of their workers in every single stage, which will assist them to improve their chain of delivering more profits to the organization (GulyAs, 2007), which optimizing an individual potential must which will help the organization to reach their ultimate goal.

The essential purpose of sports Direct is to maintain its brand value and the HRM department plays a vital role in upholding the organization's value by managing the crucial factor that is human resources in the best possible manner, which will indeed look up the factors like luxury services, innovation and many more.

2.1 Benefits of a motivated workforce

Motivation shows how much an employee is within their work role as a motivated employee will be able to show their full potential and work effortlessly. The reason is also crucial for hooking up an employee's attention, retaining employees, and increasing productivity (Jacobson, 2011). A motivated workforce will come up with factors like

Fewer absentees- a smaller number of days off taken by an employee for medical or other purposes; they are more eager to perform their tasks.

Better bonding between management and employees reflects the flexibility of the employees while accepting the changes made by the system without any disagreement, which will surely mean that fewer legal steps will be taken against the managing staff.

Improved work performance- motivated workers generally work effortlessly, be punctual, and focus on their roles to be performed, which will automatically enhance their productivity.

Improved quality and enhanced customer service- motivated employees will always work to a higher standard to attain the supreme quality of customer service.

2.2 Success of motivational strategies within Tesco and Sports Direct

Strategies of Tesco

Taylor’s motivational theory states that employees work with a plan of earning money, and the approach of paying the employees has come up with positive results in business. As the result of this approach came up with enhanced production, employees het less time to think regarding other factors or sometimes like creativity, as it binds a person to their role assigned in the company.

The organization has introduced a reward program, which includes monitory reward packages, a motivating factor for the employees (Alegbejo, 2013). Well, Tesco implements Taylor's theory and supports various kinds of lifestyles of different employees with relevant and targeted benefits. Which motivates the employees as it comes with a feeling of more content in their workspace. This occurs when the authorities at command create an excellent working atmosphere where the employees are valued by using proper communication and approaching the workers for their opinions regarding the work. It also includes the appropriate training procedures to build their skills.

The use of the Mayo effect involves points like proper communication, excellent teamwork, screening interest in employees, approaching employees to participate in decision-making, ensuring employee well-being, and ensuring that the task appointed is exciting and does not need to be repeated.

Strategies of Sports Direct

It includes such goals, which create meaning as setting a goal continually defines the activity of an individual and sets an aim to be achieved. Celebrating the attainment of milestones does not distinguish between small or big wins, which will surely help the employee stay motivated and enhance their productivity for the organization—providing meaningful feedback is essential on their work, like "great presentation, well done" and many more positive remarks that build a worker's enthusiasm. They also feel equally valued by the governing authorities—empowering problem-solving, which can be best led when an employee the words of their employee by the empathetic listening skills, embracing uniqueness, creating a safe space for the employee when fails as a learning opportunity. All these points show why Sports Direct is so innovative with its approaches.

3.1 Methods used by Tesco and Sports Direct to measure employee performance

The management authorities of Tesco monitor and measure their employee performance by using Smart Targets. When an employee starts working in the organization, they are put on three-month probation. It tracks the worker's potential (Joseph and Sharaf, 2016). In 1 month, they would set specific aims that the employee needs to attain, involving the objectives of the business. Discipline always believes in providing their “Customers are always able to get the products they need"; therefore, they will set targets for sections to meet the assigned target. Tesco has a discipline policy for their worker's performance. Verbal, written, and final are the three stages, which include the factors of theft, assault, and many more.

A factor like management by objectives is helpful to measure the performance of a worker, especially the working authorities at a higher rank, as they are responsible for directing their co-workers working under them. It involves identifying the goals of an employee, which will assist their manager in setting attainable goals for them. During the evaluation period, the working staff needs to work with their seniors, who help them attain their goals. The number of goals achieved by an employee describes their performance. The use of a "360-degree feedback appraisal system” (Funderburg, and Levy, 1997) is considered an ideal approach as it gives value to the input of the employees; the process includes every employee starting from executive leaders to frontline workers receiving feedback for their tasks. This method is considered very effective for the entire business.

3.2 Different appraisal methods used by Tesco and Sport Direct

In Tesco and Sports Direct, the appraisal schemes include motivating and engaging the workers. When workers are recruited, they are generally put on 3-month probation. The motives for putting workers into this process are to track how the workers can cope and meet the needs of the job and check their level of competence as a worker. During the 1 month of probation, the employers ask the employee for weekly reviews and how the employee is doing with their task and include setting new targets for the employee. The targets are related to the general business objectives. They also use "360-degree feedback," which reviews their business and helps introduce new strategies and business priorities. One preliminary plan is to create a healthy work culture and environment where the employees feel valued, heard, and inspired by their governing authorities. "360-degree feedback" is firstly set up for the manager to understand their strengths and needs to be developed. This program puts a light on muscles and points to be designed for better performance, including advanced leadership skills. As a result, it helps to shape personal development plans. Another approach is using smart targets, which allow employees to meet the demands of their job.

The appraisal system is used in a very well mannered, but the companies can improve the system to make it much better. It helps the employees get a self-assessment to monitor their work performance and how they can enhance their potential for better performance.

Conclusion

To conclude the topic, we can say that HRM plays a vital role in any organization as they manage many factors for establishing the company in the market by providing the best human resources and introducing innovative ways like the implementation of Taylor's theory, the Mayo effect and Maslow hierarchy theory (Gambrel, and Cianci, 2003) which include five levels of needs-

1) The physiological needs which are known as the basis of all kind of human needs. A worker must get access to the essential services and opportunities to feel that their basic needs are considered, like access to a washroom, clean drinking water, meal breaks, and a healthy working environment.

2) Safety is the second vital need of an individual to attain satisfaction in the workplace. It also includes the ergonomic type of furniture, which will ensure minor injury, securing the building from external threats.

3) Love and belonging are again a factor for an employee. The sense of belonging to the organization plays a vital role in enhancing their loyalty. The third point is self-esteem, and the last point is self–actualization. By following this process, a company can meet its goals much more smoother.

References

Alentejo, T.B., 2013. A study of non-monetary rewards as a motivation tool for employee performance in Tesco (Doctoral dissertation, University of East London).

Alshmemri, M., Shahwan-Akl, L. and Maude, P., 2017. Herzberg’s two-factor theory. Life Science Journal, 14(5), pp.12-16.

Bowen, D.E. and Ostroff, C., 2004. Understanding HRM–firm performance linkages: The role of the “strength” of the HRM system. Academy of management review, 29(2), pp.203-221.

Cohen, E. and King, D., 2017. Human resource management: developing sustainability mindsets.

Doorewaard, H. and Benschop, Y., 2003. HRM and organizational change: an emotional endeavor. Journal of organizational change management.

Funderburg, S.A. and Levy, P.E., 1997. The influence of individual and contextual variables on 360-degree feedback system attitudes. Group & Organization Management, 22(2), pp.210-235.

Gambrel, P.A. and Cianci, R., 2003. Maslow's hierarchy of needs: Does it apply in a collectivist culture. Journal of Applied Management and Entrepreneurship, 8(2), p.143.

GulyAs, L., 2007. Trainings and management development at TESCO in Szeged. Management & Marketing-Craiova, (1), pp.153-158. 

Jacobson, W.S., 2011. Creating a motivated workforce: How organizations can enhance and develop public service motivation (PSM). Public Personnel Management, 40(3), pp.215-238.

Joseph, A.M. and Sharaf, J., 2016. Building target corporation's customer loyalty programme through tesco's club-card scheme. TRANS Asian Journal of Marketing & Management Research (TAJMMR), 5(12), pp.61-69.

Sims, R.R., 2002. Organizational success through effective human resources management. Greenwood publishing group. 

Sirapongprapa, P., 2004. Management and organizational factors on Tesco Lotus: a case study help.