Professional Documents
Culture Documents
assessment template
Name: P
Word count: 3392
Organisational objectives
Human Resource Management is the effective use of people to achieve both the organization
and individual goals. It is actually effective recruitment, selection, development,
compensation, and utilization of human resource by organization.
Human Resource Planning and Development is the framework for helping employees to plan
and develop their personal and organizational skills, knowledge, and abilities. Human
Resource Development includes such opportunities as employee training, employee career
development, performance management and development, coaching, succession planning,
and organization development.HR managers have to be able to identify
and document project roles and responsibilities, and develop a plan describing the end-to-end
processes that will be required on a project (or series of projects) in order to determine
its human resource requirements.
The organisation we will look into is a construction medium sized family business, Kelleher
Group. In construction companies HRM is primarily concerned with ensuring that a project
has sufficient human resources, with the correct skill sets and experience, for the project to be
successfully completed. Some of the advantages for Kelleher Group to have the HR in-house
are the following:
Another objective for Kelleher Group is to grow the business. HR needs to understand what
skills are required, and HR is responsible either develop those amongst existing staff or
recruit them externally. HR is responsible for the Organisation’s development and design,
using a systemic approach and application of behavioural science to drive the organisation
performance.
There are two models which can be used from HR to deliver these objectives.
The Purcell Model provides the building blocks of good performance; AMO which means
Ability- assumes that people want to apply for jobs and have attributes recognized, willing to
learn new skills.
Motivation- assumes staff can be motivated to use their ability in a productive manner.
Opportunity – assumes employees will perform well, produce quality work and participate in
wider activities e.g problem solving, team initiatives.
AMO contributes to feelings of job satisfaction, commitment and motivation and encouraging
employees to deliver exceptional performance which in turn builds business capabilities.
(CIPD, Understanding the People and Performance Link: Unlocking the black box, 2003)
The three Legged Stool Theory suggests that in large organizations the HR function should
be divided into three segments, shared service activities should be concentrated in a call
centre with supporting intranet to provide admin and basic support functions, business
partners are individuals or small teams which work closely with business unit managers on
key initiatives and change management. At the end, specialists exist as repositories of key
technical knowledge on resourcing reward, employment relations and can develop policy
whilst providing support to business units and shared services. At the top of this model should
1. To use shared services, which is a way of organizing the activities within a wider HR
operating model. Often, HR Shared services involves a team of administrative HR services in
a centralized team, shared throughout an organization. It is thought that this idea evolved due
to being a more cost effective solution for larger organisations.
3. To Implement Vendor Management which involves a third party undertaking specific tasks
for a business/ organisation. The services commonly sought are for payroll and recruitment.
5. To provide Out-sourcing Services, which involves a third party taking on most, if not all, of
the HR functions.
We can easily find the following advantages and disadvantages between Ulrich’s
model and the Outsourcing strategy:
HR OBJECTIVES ULRICH MODEL OUTSOURCING
DELIVERY APPROACH
Managing Change
Advantages Disadvantages
1. The analysis that provides a visual 1. Very limited, goal and plan driven model. The
summary of all the various factors supporting and plans do not take into account human feelings and
opposing a particular idea, with all the data experiences can have negative consequences.
that has been collected regarding a potential Employees can become so excited about the new
decision consolidated into a single graph. change, that they bypass the feelings,
2. The analysis expands the evaluation beyond attitudes, past input or experience of other
the data itself to look at qualitative factors that employees and can find themselves facing either
may have an impact on the success or failure of resistance or little enthusiasm.
the decision being analysed. 2. The analysis requires the full participation of
everyone involved to provide the accurate
information required for an effective analysis. This
can be a disadvantage when full participation isn't
possible, resulting in an analysis that doesn't
provide a realistic picture of the supporting and
opposing forces.
3. The possibility that the analysis won't result in a
consensus among the group. In fact, a force field
analysis may actually cause a division in the group
between those who support the decision and those
who oppose it.
Advantages Disadvantages
1. The process is an easy step-by-step 1. Steps can’t be skipped.
model. 2. The process takes a great deal of
2. Clear steps which can give a time.
guidance for the process 3. The model is clearly top-down, it
3. The focus is on preparing and gives no room for collaboration
accepting change, not the actual involving all levels of staff.
change. 4. Can lead to frustrations among
4. Transition is easier with this model. employees if the stages of grief and
5. Focus on buy-in of employees as individual needs are not taken into
focus for success consideration.
6. Fits well into the culture of classical
hierarchies
The CIPD’s Code of Professional Conduct is a critical determinant of how the employees
need to play their roles professionally. The Code of Professional Conduct demonstrates that
the employees work in a professional way when they can work and behave in a manner that
their subordinates feel that they have a high level competency, increased reliability and
respecting others. (CIPD, Code of Professional Conduct, 2018)
In Kelleher Group, by working professionally, HR ensures that we harness our
competitiveness in Construction Sector. This is through accommodating interests of all their
stakeholders.
HR Ethical Practice is guided by the CIPD Ethics at Work Employer Guide, which are
identified as the existing values, moral principles and standards that are required to be
adhered to by the employers and employees in their active workplace roles. (CIPD, Ethics at
Work- An Employer's Guide, 2019)
In Kelleher Group, we are using a Staff Handbook, which demonstrates the rules and
regulations the employees need to follow. The organization is regarded as operating within
requirements of fair decisions.
In the CIPD Professional Map 2018, it entails on the different individual activities and
practices which need to be in a just a manner. (CIPD, Profession Map, 2018)
Acting in a just a manner, Kelleher Group entails making sure that there is no form of
discrimination and all employees are offered equal opportunities and management roles.
There are policies put in place for acting in just a manner, different regulations being put in
place, diversity and increased inclusivity.
Evaluating HR
Recruitment
1. Recruitment timeline
For the available roles in Kelleher Group, another employee spends time filling up for the
position. This could affect team morale and employee engagement rates. HR needs to fill the
empty seat as fast as possible to prevent this from happening.HR needs to measure how long
it takes to fill the position from the job advert all the way to the new employee’s first day on
the job. We need to determine how fast the chosen candidates move through the entire
recruitment process. This KPI enables the team to spot any obstacles in the hiring process
and create solutions for them.
The screening process involves picking the top CVs. It also involves initial assessments and
phone interviews before a member of the leadership team or senior management sits down
with the candidate. The HR needs to measure the number of interviews per candidate to keep
it consistent and limited. This helps us determine how much time is spent on a candidate. By
doing so, we can minimize the chances of wasting the company’s and the candidate’s time.
HR needs to ensure that the transition of candidates from one point to another during the
hiring process is smooth and fast. To do this, we can measure the number of days consumed
from a candidate’s application date to when the job offer is accepted or rejected. It’s important
not to confuse this with recruitment timeline that refers to the days spent from when the job
position is made vacant to filling it. Sometimes, job offers can take a while and the obstruction
comes from the hiring departments. This KPI helps us improve our timeline and prevents us
of losing a candidate because of the waiting time.
This KPI shows how much we invest in the training of each employee. Although, we don’t
have any information about the results that we expect.
Using this KPI, we can monitor the cost of training. In case we spend 90% of the budget on
finding new candidates, then probably the training program is not suitable. Still, there is no
required % of budget that the company must spend on training. Excellent training might cost
just 1% of the budget but will result in high productivity growth.
3. % of employees trained
This KPI gives us the number of employees that were trained. It makes sense using this KPI
when we know the effectiveness of certain training. But we need to consider that might what
was excellent for employees of one department might not work for employees of another.
Performance Management
This KPI can be used to inform us about the overall efficiency of the team. It’s useful for
understanding how long different phases of a project usually take the employees, so we can
improve budget estimates and price fairly for the work.
The average overtime metric can be interpreted in different ways. We use it to understand the
health of their employees – both in terms of engagement and physical wellbeing. But it
shouldn’t be taken as an indicator of employee dedication, since “presenteeism” alone doesn’t
translate to “quality of work” or “enthusiasm”. If the employees are constantly performing
overtime, we might actually need to increase the workforce.
This is a basic indicator of what each employee brings in. It’s useful for ensuring our
workforce aren’t costing us more than they’re making us. We can also use it to measure the
profitability of company.
Using HR Scorecard (Becker, Huselid and Ulrich, 2021)which is based on Kaplan’s and
Norton’s Balanced Scorecard (Kaplan,Norton , 1992), HR is able to evaluate its performance
and identify top priorities by analysing a range of reliable valid indicators relating to what HR
delivers (HR deliverables) or what HR does (HR do-ables).
The Five “Right” of HR measurement:
1) Clear understanding.
2) Creating value, HR costs.
3) Work force success, capabilities, behaviours and performance.
4) Business strategy.
5) HR practices and alignments.
There are three main gist of best-practice theories should be mentioned. First of all, the
models enhance employee ability and knowledge through good recruitment and training. The
second one is motivating desired behaviour through strong incentives. The last one is
encouraging ideas and contribution from motivated and better trained workers, AMO Model
(Boxall, Purcell, 2003).
Pfeffer (Pfeffer, 1998) claims seven HRM practices that all firms could success if they apply
these seven. The first one is selective recruitment and selection. The ‘selective’ is a central
part of it and a sophisticated way to recruit and select the talents. The second one is
extensive training-employees get development through training programmes. The third one is
performance-related pay (PRP). PRP related to personal and team performance and the best-
performance employees in a department will get yearly bonuses. The forth one is teamwork.
Employees take responsibility to work design and planning for a group of employees. It is an
effective way to break through the hierarchical model and decentralize responsibility. The fifth
one is information sharing and communication through the Internet, newspaper, face-to-face
talks and, last but not least, top management presentations. The sixth one is reduction of
status differences, avoiding status symbols, such as special parking spaces for high
management. The last one is employment security. Pfeffer (Pfeffer, HRM Practices, 1994)
also lists 16 practices for ‘competitive advantage through people’.
The advantages of the best-practice models can be defined as, firstly, much agreement on
basic best practice. The second one is the recognition of ‘bad’ practice. The third one is
establishing rules of thumb for selection; training; appraisal methods. The last one is that no
need to re-invest.
There are many other impacts that affect an organisation. The external factors (such as the
impact of the recession) have had a very real impact on organisations.
Human capital is a potential factor that impacts the organisation. It is the knowledge, skills
and initiative of the workforce, including the education and training that is offered to develop
those particular skills. Looking at the organisation from the human capital perspective looks at
the organisation as a mass of knowledge, skills and initiative. It is essential to look at ways of
developing the human capital because that is the basis of the worth of the organisation. This
is particularly true when we look at organisations that rely heavily on the knowledge of its
workers.
High-performance practice refers to the way an organization plans the work in which its
employees participate in making decisions that impact the overall performance of the broader
organization. These practices enable the organization to achieve high-performance culture
with norms and values combined to create an environment that supports the achievement of
high levels of performance. High-performance work practices do empower employees thus
helping organizational efficiency and performance. High performance supports substantial
investment in human capital thus empowering employees by developing their knowledge,
According to (Combs, James & Liu, Yongmei & Hall, Angela & Ketchen, David, 2006), high-
performance work practices improve the social structure within organizations thus enabling
effective communication and collaboration with employees. Employees are free to express
their ideas on the functioning of the organization and line managers can listen and put into
consideration. This practice affects the overall performance of the organization it supports
employees to engage in voice.
However, there are cons associated with high-performance work practices. First,
organizational and employees goals overlap and are diverse making it difficult for the
individual interests of employees to be considered in the high-performance work practices. In
HPWS, it imposes strict employee regulations for instance high-performance standards, and
increases demands made upon employees. To meet the set standards, employees are forced
to cope with work overload thus affecting negatively the ability of employees to accomplish
their life goals while working to achieve organizational goals. HPWP assumes that employees
are a homogeneous group of individuals with similar interests but in a real sense, employees
perceive and interpret the aims and results of HPWP differently since they boost unique
values and a diverse range of life pursuits.
Human capital measures the economic value that employees provide to an organization
through their knowledge, skills, and abilities. Rastogi (Rastogi, 2002), refers to human capital
as an important input for organizations especially employee’s continuous improvement mainly
on knowledge, abilities, and skills. Investing in human capital involves all those activities that
improve the quality or productivity of employees in an organization. Human capital focuses on
two components; individual employees and the organization. These attributes generate
additional to employees and organizational outcomes. Nordhaug (Nordhaug, 1998) findings
establish that human capital is associated with higher performance and sustainable
competitive advantage. An organization reaps most from employees by investing actively in
them.
First, investing in human capital increases employee satisfaction hence there are higher
chances of improved productivity of the organization from employee’s production. Employees
are more satisfied with their jobs once they notice that their workplace cares about their
development. Second, improves retention rates of employees as less-skilled workers will be
willing to leave the organization and seek alternative employment. It is estimated that the cost
of replacing an employee amounts to an average of six months’ salary thus a little investment
in employees can save the organization such as avoidable expenses. Third, developing
employee engagement by an organization to improve productivity and make employees more
loyal to the organization. Therefore, offering career advancement opportunities and investing
in them offers them a reason to be engaged at work thus enabling organizational productivity.
Last but not the least; improve ROI by spending a little more on employee development
through increased salary, benefits and perks are a useful investment in the organization’s
human capital. Maximizing return on human capital by offering opportunities to employees to
grow and learn ultimately improves the overall performance of the organization.
According to the Entrepreneur, October 2014 found out those organizations with happy
employees tend to outperform their competitors by approximately 20 percent to earn 1.2 to
1.7 percent more in revenue. It is thus important to invest more in human capital for an
organization to get the most out of the employees thus fostering productivity.
References
Becker and Gerhart 1996. (199).
Becker, Huselid and Ulrich. (2021). Making HR a strategic asset.
Boselie. (2010).
Boxall, Purcell. (2003). Strategy and Human Resource Management.
CIPD. (2003). Understanding the People and Performance Link: Unlocking the black
box.
CIPD. (2018). Code of Professional Conduct. Retrieved from CIPD:
https://www.cipd.co.uk/Images/code-of-professional-conduct-april-
2020_tcm18-14510.pdf
CIPD. (2018). Profession Map. Retrieved from CIPD:
https://www.cipd.co.uk/learn/profession-map
CIPD. (2019). Ethics at Work- An Employer's Guide. Retrieved from CIPD:
https://www.cipd.co.uk/knowledge/culture/ethics/ethics-work-guide
CIPD. (2020).
Combs, James & Liu, Yongmei & Hall, Angela & Ketchen, David. (2006). How
Much Do High-Performance Work Practices Matter? A Meta-Analysis of
Their Effects on Organizational Performance. Personnel Psychology.
Grugulis, M. a. (2000).
Hailey, Farndale and Truss. (2005). Human Resource Management Journal. 64.
Hills, J. (March 2010). HR Zone.
Kaplan,Norton . (1992). The balanced Scorecard.
Kotter, J. (2013). Accelerate: Building Strategic Agility for a Faster-Moving World.
Legge. (1978).
Lewins, K. (1947). Frontiers in group dynamics: Concept, method and reality in
social science; equilibrium and social change. Human Relations .
Nielson, S. (December 2013). Market Realist.
Nordhaug, O. (1998). “Competencies specificities in organizations”. International
Studies of Management and Organization.
Pfeffer. (1994). HRM Practices.
Pfeffer. (1998). The Human Equation: Building Profits by Putting People.
Rastogi, P. (2002). Sustaining enterprise competitiveness –is human capital the
answer. Human System Management.
Bibliography
Becker and Gerhart 1996. (199).
Becker, Huselid and Ulrich. (2021). Making HR a strategic asset.
Boselie. (2010).
Boxall, Purcell. (2003). Strategy and Human Resource Management.
CIPD. (2003). Understanding the People and Performance Link: Unlocking the black
box.
CIPD. (2018). Code of Professional Conduct. Retrieved from CIPD:
https://www.cipd.co.uk/Images/code-of-professional-conduct-april-
2020_tcm18-14510.pdf
CIPD. (2018). Profession Map. Retrieved from CIPD:
https://www.cipd.co.uk/learn/profession-map
CIPD. (2019). Ethics at Work- An Employer's Guide. Retrieved from CIPD:
https://www.cipd.co.uk/knowledge/culture/ethics/ethics-work-guide
CIPD. (2020).
Combs, James & Liu, Yongmei & Hall, Angela & Ketchen, David. (2006). How
Much Do High-Performance Work Practices Matter? A Meta-Analysis of
Their Effects on Organizational Performance. Personnel Psychology.
Grugulis, M. a. (2000).
Hailey, Farndale and Truss. (2005). Human Resource Management Journal. 64.
Hills, J. (March 2010). HR Zone.
Kaplan,Norton . (1992). The balanced Scorecard.
Kotter, J. (2013). Accelerate: Building Strategic Agility for a Faster-Moving World.
Legge. (1978).
Lewins, K. (1947). Frontiers in group dynamics: Concept, method and reality in
social science; equilibrium and social change. Human Relations .
Nielson, S. (December 2013). Market Realist.
Nordhaug, O. (1998). “Competencies specificities in organizations”. International
Studies of Management and Organization.
Pfeffer. (1994). HRM Practices.
Pfeffer. (1998). The Human Equation: Building Profits by Putting People.
Rastogi, P. (2002). Sustaining enterprise competitiveness –is human capital the
answer. Human System Management.
Richardson and Thomson. (1999). The Impact of People Management Practices on
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Ulrich, D. (1997). Human resource champions: the next agenda for adding value and
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