Skill Assignment 1

28th April 2021 (Date)

Date of Submission Wednesday 5th May
Objective: To identify the components of HRM and apply it practically in an organisation.
Planning and deciding the structure of HR Department.
What needs to be done?
Case:
Q1. Create (Model) an organisation structure for ABC Ltd (Accounting firm) having 5
branches and 300 employees working in totality. You need to identify the functional
departments as well.

1. Research and Development

The Research and Development (R&D) function is concerned with developing new
products or processes and improving existing products/processes. R&D activities are
closely coordinated with the organisation’s marketing activities to ensure that the
organisation is providing exactly what its customers want in the most efficient,
effective and economical way.

2. Purchasing

The Purchasing function is concerned with acquiring goods and services for use by
the organisation. These include, for example, raw materials and components for
manufacturing and also production equipment. The responsibilities of this function
usually extend to buying goods and services for the entire organisation including, for
example, office equipment, computer equipment and stationery. In buying goods and
services, purchasing managers take into account a number of factors – collectively
referred to as ‘Purchasing Mix’, namely, Quantity, Quality, Price and Delivery.
 3. Production

The Production function undertakes the activities necessary to provide the

organisation’s products or services. Its main responsibilities are:
1. production planning and scheduling
2. control and supervision of the production workforce
3. managing product quality (including process control and monitoring
4. maintenance of plant and equipment
5. control of inventory

4. Marketing

Marketing is concerned with identifying and satisfying customers needs at the right
price. Marketing involves researching what customers want and analysing how the
firm can satisfy these wants. Marketing activities range from the ‘strategic’,
concerned with the choice of product markets to the operational, arranging sales
promotions, producing literature such as product catalogues and brochures, placing
advertisements in the appropriate media and so on. A fundamental activity in
marketing is managing the Marketing Mix consisting of the ‘4Ps’: Product, Price,
Promotion and Place.

5. Human Resource Management

Human resource management is the strategic approach to the effective management

of people in the company such that they help their business gain a competitive
advantage. It is designed to maximize employee performance in service of an
employer's strategic objectives.

Q.2. Identify the activities/ components / practices performed by the HR Department of the
above bank, create the Job Positions accordingly required and also create a structure of HR
Department highlighting number of employees working in HR Department to manager these
300 employees. (Figures should match) for eg. if you predict that 10 employees are required
to manage 300 employees then your HR department structure positions in totality should
show 10 employees working in different fronts in HR Department.
Practices Performed By The Organisation
HR practices helps in increasing the productivity and quality, and to gain the
competitive advantage of a workforce strategically aligned with the organization’s
goals and objectives.

1. Providing security to employees

Life is unpredictable and work is a stable factor that is very important to most people.

Having an employer who enables the employee to provide for themselves and their

family is, in essence, the number one reason why people come to work. There is both a

formal contract and an informal contract between the employee and the employer.

Employment security enables employees to go home after work and provide for

themselves and their families. This concept of security is essential and underpins almost

everything HR does.

2. Self-managed and effective teams

We know that teamwork is crucial in achieving goals. High-performance teams are

crucial for the company when it comes to achieving success. Teams provide value

because they consist of people who are, and think differently but are working towards a

common goal. This means that different ideas are generated to help achieve the goal.

These ideas are then processed and combined, resulting in the best ones being

selected.

3. Selective hiring: Hiring the right people

This enables the organization to bring in employees who add value. We want people

who are fit for the job. Company does its utmost best to hire exceptional people

because they add the most value to the business. There also needs to be a prioritization

of building a structured and fair selection process. This reflects legal requirements,

internal diversity goals, and that a more diverse workforce, better reflects society. This

is hugely beneficial for understanding wider consumer behaviour and the needs of

different customers. 
4. Fair and performance-based compensation

Contingent Compensation has everything to do with compensation and benefits.

First of all, if we hire the right people, we compensate them above average. These are

the people who add the most value to our company so we pay them fairly. This is an

example that shows how different best practices work together to provide more value

than they would alone, in this case, selective hiring, contingent compensation, and

employment security. By coupling organizational performance outcomes with individual

rewards the individual is incentivized to maximize this outcome. It also creates a sense

of ownership for the employee.

Paying people above the norm also has some potential disadvantages. For instance, it

discourages bad employees to leave.

5. Training in relevant skills

This HR practice states that company invests heavily in training time and budget for its

employees. After recruiting the best people, we ensure that they remain the

frontrunners in the field. This has become even more relevant today as the rate at

which technology is developing is growing exponentially. This is where learning and

development come in.