People Resourcing and Development

What is HRM?

According to Armstrong (2012) Human Resource Management (HRM) is a long term systematic and consistent plan of action to manage employee engagement, growth and happiness at work. This could mean that HRM strives to accomplish the organisational goals and objectives through employee performance. Further Byars & Rue (2006) states that HRM is a systematic plan of action which targets and motivates, the well performing employees, to achieve goals and objectives of the organisation. Therefore, the level of productivity can play a key role for the success of an organisation. Moreover, Dessler & Varkkey (2011) states simply HRM is a process of recruiting, developing, evaluating and rewarding employees.

Role of the HR Practitioner

Employees are the backbone of organisations, and they are the most dominant and valuable wealth of an organisation (Du Plessis, 2009). Thus, the level to which employees have been managed, is a vital factor in the achievement of organisation’s goals and objectives. Human Resource practitioners play a critical part in increasing the efficiency of the organisation’s human resources, hence it will lead to organisational success (Nel, Werner, Du Plessis, Poisat & Sono, 2011). HR practitioners have to ensure that the organisation have a continuous supply of thoroughly qualified employees (Du Plessis, Paine, & Botha, 2012). Therefore, an advanced sourcing talents are required when selecting the most suitable candidates in the market. Further Strack, et al. (2008) expands that, working closely with other departments (such as Finance, IT, etc.) on employee issues is also a vital role of a HR practitioners need to play.

Role of the Line Manager as a HR practitioner

First Line managers (FLMs) are the managers, to whom non managerial employees report (Hales, 2005). Hence, people management is a key responsibility of FLMs. However, now a days these responsibilities have increased with some other HR chores such as recruitment and selection, training and development, performance appraisal and rewarding (den Hartog, Boselie, & Paauwe, 2004). Further, Hoogendoorn & Brewster (1992) expands that line managers are responsible for resource budgeting and allocation, as well as issues in people management. Line managers can be worthful collaborators for HR in the administration of the disciplinary and grievance processes too. As a matter of fact they can try and settle grievances informally and therefore fix the problems speedily (Acas, 2009).

Meaning and Importance of HR Development

Human resources development (HRD) has been defined by several scholars in several ways. According to Nadler and Wiggs (1986) HRD is a set of actions, conducted within a certain time period to enhance knowledge and skills of the employees of an organisation. This could mean that HRD refers to the huge area of training and development delivered by organisations to enhance the knowledge, skills, education, and capabilities of their employees. Further Khurana, Khurana, and Sharma (2010) explains that HRD is increasing of knowledge, abilities and positive work attitude of all level of employees in an organisation. In many companies, the human resources development process commences upon the employing of a new employee and extends until that employee's tenure with the organisation.

Recruitment

Human resource practitioners play a vital role in recruitment and selection of staff (Martin & Whiting, 2013). Recruitment is a process of searching and employing people, that an organisation needs (Armstrong, 2012). Hence, an organisation might need to recruit staff at regular intervals. Flippo (1984) sees recruitment as a process of finding prospective employees and motivating them to apply for jobs, in an organisation.

Recruitment Methods & Strategies

Organisations have choices to choose among a substantial variety of recruitment sources when they are seeking for new employees (Moser, 2005). Fundamentally, there are three methods of recruitment which are known as Internal, External & Third Party Sourcing (Wanous, 1992).

Attracting existing employees in an organisation to apply for a vacant position is called internal sourcing. The organisation can cut down a significant advertising cost by using this method. Also by recruiting internally, the training and developing cost can be reduced significantly, which will be favorable to the organisation (Garner, 2012).

Sourcing people through indirect external parties, such as newspaper advertisements, radio/ television advertisements, is called external sourcing (Ejiofor, 1989). This method is useful when an organisation couldn’t find an employee within the organisation to fill up the vacant position or the organisation want to expand to a vast territory.

Sourcing through unrelated third parties such as recruitment agencies, management consultants are known as third party sourcing (Moser, 2005). These third-party sources use several tools and techniques, such as widening offers of high salary packages and more flexible benefits, to find out the most suitable job applicants. However, it is the organisation’s decision to recruit internally or externally depend on factors such as, the financial position of the organisation, availability of required employees within the country, the level of the position to be filled, etc. (Nwachukwu, 1992).

There are two recruitment strategies which are known as formal and informal (Ullman, 1966). Job portals, employment agencies and newspaper advertisements are considered as formal strategies and, techniques like employee referrals are some examples for informal strategies (Taylor, 1994). Furthermore according to Breaugh (1981), it has been found, that the employees who are recruited through informal recruitment techniques, are tend to stay longer in the organisation rather than the employees recruited through formal recruitment techniques. Moreover, Scott, Roberts, Holroyd and Sawbridge (1989) have shown that recruitment strategies may vary according to the industry. In additionally he adds that manufacturing sector prefers informal strategies where the formal strategies were proffered by the high technology sectors.

Direct acquisitions is another successful recruiting strategy, which organisations have found out. Direct acquisitions also can avoid a significant amount of recruitment advertising costs. For instance, the slogan of Cisco Corporation is “if you can't hire talent, just buy it!'' (Nakache, 1997). Furthermore, since the current employees know the company culture, they will be able to pick the right people who will fit into the organisation (Lockwood & Ansari, 1999). The benefit of using referrals is that they let down supervising costs, since employees can exert peer pressure on co-workers (Kugler, 2003).

According to Anderson (2003), the use of internet recruiting tools has been raised on modern business environment. Parry and Tyson (2008) have identified that the use of online recruitment methods are more appropriate for middle management and knowledge workers and less appropriate for top level management. Hence, the use of online recruitment methods remains more dominant in manufacturing organisations. Further, according to Cappelli (2001), quicker responses, cost effectiveness, ability of access the candidates with IT and technical background, are some of the advantages in internet recruitment. On the contrary, Starcke (1996) argues that, receiving lot of CVs, difficulties in organizing and tracking of resumes, and only limited people have the access to internet are some of the disadvantages in internet recruiting.

Selection

Once a pond of potential candidates has been discovered through the recruitment process, the next step in the march is to select the most qualified candidates from that pond (Bonn, 1992). According to Yoder (1970) selection can be divided into two classes, the group who will be offered the job and the others who will not be offered. Selection is a process of choosing the most suitable applicant for a vacant position or for a future position, internally or externally (Koontz & Weihrich, 1988). Further, Ejiofor (1989) sees selection as a process of picking out of possible employees available in the market. Moreover, Hannagan (1995) explains selection as the assessment of applicants for job vacancies and the choice of the most appropriate person.

Selection is a hiring process where many number of techniques were used to find out important information about an applicant (Flippo, 1984). Further Stoner, Freeman and Gilbert (2000) refer the selection as a reciprocal process where an organisation decide whether to choose or not to choose, and the candidate decides whether to accept the job offer or not to accept it. However a selection process is generally a list of activities. Each activity must be productively solved before the candidate moves to the next activity (Khanna, 2014).

Selection Methods & Strategies

Proper selection tools were playing an important role in selecting a right candidate for the right job. Further Nikolaou and Judge (2007) states that using interviews, CVs, written tests and personality tests as selection tools would generate positive responses. According to Gatewood, Field and Barrick (2008) structured interviews are identified as a valid selection tool in the selection. Furthermore, structured interviews has high possibility for helping organisations in improving employee productivity and performance (Terpstra & Rozell, 1993).

Social media recruiting, gamification, and video interviewing are some of the newest selection strategies in the world (Greenberg, 2014). Furthermore, Kumari (2012) states that better recruitment and selection strategies will result in bettered organisational outcomes. Further Lal (2013) says that, a selection strategy through evaluation and examination, will help to identify the right candidate for the right job. Furthermore, to attract and retain employees in the organisation, Human Resource Managers used reward management as a key strategy (Njanja, Maina, Kibet, & Njagi, 2013).

Significant increase in understanding of selection methods has been constructed in recent years.  However, throughout history employee selection techniques have been decided by discrimination, social contacts and status (Budhwar & Boyne, 2004). But now a days, a change has been discovered towards psychometric, talent-based selection techniques (Pio, 2007). In general, ability tests, assessment centres, work samples, psychological tests are some of the selection methods which is available to organisations. Moreover, Wilk and Cappelli (2003) opined that organisations use several selection methods upon the nature of the industry which they’re in. Hsu and Leat (2000) were discovered that interviews and knowledge & skill tests were used more often by manufacturing sectors in Taiwan. This could mean that psychometric tests and assessment centres seems to be used to a lower degree compared to knowledge & skill tests and interviews. Further Anderson and Witvliet (2008) revealed from their comparative research of six countries, that, interview is one of the most famous selection methods. Likewise Jusoh and Kok Ali (2002) have identified that selection methods such as resumes, primary interview, selection interview and final selection are mostly used in the selection process in manufacturing organisations in Malaysia.

Employee Development

Employee development is believed as one of the key functions in human resources management (Noe, 2002). According to Harrison (2005) Employee development is a key area in human resource management, which aims at bettering performance of employee or employees in an organization. Furthermore, he expands that employee development is also known as training and development, learning and development and human resource development. Employee performance will decide the success or failure of an organisation. Hence, organisations are investing vast amount of money on development of employees (Hameed & Waheed, 2011). Further, Elena (2000) states that employee development is, developing the skill/ talent/ strength of an employee in an organisation. Therefore, when an employee is trained and performing well, it has a direct impact on the organisation’s growth. Further, Champathes (2006) states, when employee performance has increased, it will lead to organisation’s success.

Training is the enhancement of the knowledge and skills of an individual or groups, to achieve their goals and objectives (Armstrong, 2012). Similarly, Flippo (1984) says that training is a process of gaining knowledge and skills to perform a specific task. However, development refers to a long term growth and it pays more attention on the future career opportunities. Current skills and abilities of employees will be consistently developed for the future growth requirement of the employees (Robinson & Robinson, 1995).

Alternative Approaches to Employee Development

There are various types of approaches shared by various authors. Every organization practices different type of approaches in employee development. Fundamentally there are two types of training and development approaches which are known as on-the-job training (OTJ) and off-the-job training (Kulkarni, 2013). In general, on-the-job training will take place incorporating with the job and off-the-job training will be conducted at a different location and mostly with a group of trainees (Jacobs, 2003).

Coaching or Mentoring is an effective on-the-job employee development approach (Wisker, Robinson, Trafford, Warnes, & Creighton, 2003). There are several types in mentoring. Formal mentoring, informal mentoring, peer mentoring and team mentoring are some of the types of mentoring (Johnson, 2016). According to Kram (1986) mentoring can be divided into two functions which are known as career function and psychological function. Career function focuses on the career development of an individual and the psychological function focuses on the factors such as sense of competence, personality, etc. (Torrington, Hall, & Taylor, 2005). Moreover, Torrington, Hall and Taylor (2005) expands, that mentoring provides a vast amount of knowledge, in developing the knowledge and skills of an employee.

Formal mentoring is also known as classic mentoring. Usually formal mentoring pairs a senior employee with a junior employee in a same department (Joo, Sushko, & McLean, 2012). Further, Lumpkin (2011) states that by using the formal mentoring method, managers (mentors) take over the responsibility of the growth and development of juniors who are known as mentees. Increase in confidence and enhancement in work performance are some of the advantages for formal mentoring (Lumpkin, 2011). In addition, Reimers (2014) states that juniors could experience practicable disciplines by practicing formal mentoring. On the contrary, Reimers (2014) argues that, assigned mentor might not fit enough to the junior for some reasons like charismas/ personalities.

Informal mentoring happens when a senior employee voluntarily involves in mentoring without assigning him (Lumpkin, 2011). According to Ragins and Cotton (1999) informal mentoring have more tendency in long lasting than formal mentoring. Furthermore, Reimers (2014) adds that informal mentoring practicing organisations are more healthier in culture than the formal mentoring practicing organisation. According to Read and Kleiner (1996), off-the-job training methods are rarely applied in organisations due to its high cost. Also, keeping the trainee out of the work environment during the training period is another disadvantage in off-the-job training (Read & Kleiner, 1996).

Job rotation is another training method, which teaches, employees to do several jobs over a time period (Armstrong, 2012). Employee will get benefited by various knowledge and skills over several jobs by practicing this method. Further, according to Boenzi, Digiesi, Mossa, Mummolo and Romano (2013), job rotation is believed as the most suitable strategy, to cut down the workload especially in manufacturing industries and to enhance the overall productivity.

Job rotation was practiced since earlier days, as a way to enhance skills and to motivate employees (Gittleman, Horrigan, & Joyce, 1998). Further, Cheraskin and Campion (1996) identified that, enhancement in productivity, morale improvement, career development are some of the advantages in job rotation. Moreover, Ortega (2001) says that employers could learn well about their employees by practicing job rotation. However, Campion, Cheraskin and Stevens (1994) argue that organisations should consider the employees learning speed when arranging the next job rotation plan. Therefore, conducting job rotations within small intervals may end up in failure.

Recommendations

Employees are really important for every organisations and they are the key factor for every organisation’s success. Hence, recruiting and selecting the most suitable candidate is very crucial. Further, the importance of training and development has been identified in the last chapter. Therefore, it is absolutely necessary to always analyse issues related to employee development. The purpose of this report is to advise the board on the issues and give recommendations on recruitment, selection and training & development of the organisation.

As the organization only uses the newspaper advertisements for recruitment, author recommends the management to use methods like internal referrals, social media recruitments such as, Facebook, LinkedIn, etc.

When come to the selection process, as per the case, organization only using CV and interviewing. Selecting the most qualified and suitable candidate is vital for organisaion’s success. Proper selection process will lead to bring in most suitable candidates to the organisation. According to the case, the organisation only practicing the CV and interviewing. This could lead, selecting unqualified/ unskilled candidates and it impacts the overall organisation’s performance and success. Hence, author recommends to use more selection strategies, such as skill tests, psychological tests as it is a manufacturing company.

Next, Training and development plays a critical part in all organisations. These programs enhances knowledge and skills of employees and their performance. Using training & development programs effectively will lead organisations to make decisions such as performance evaluation, compensations & rewards management, promotions, etc. Moreover, employee training programs assist the line managers also in monitoring employee turnover, successful human resource planning and motivation etc.

According to the case, a new employee will be receiving a one day induction by the line manager or a department colleague. Induction is an important program for a new employee as this is the only place where he/she will got to know about the organisation, rules and regulations, culture, etc. Author recommends to use a qualified trainer for the inductions rather than delivering by the line manager. Likewise, proper training to be provided to the employees in a systematic manner. This could lead employee motivation, enhancement in knowledge and skills and this will lead to organisational performance as well as employee development.

Providing only the training is not sufficient, there should be a performance measurement system as well. The organisation must know how much they are invested on an employee for training and how much he developed his knowledge and skills by the training provided. As per the case, currently there is no performance appraisal system. Author recommends to implement a performance appraisal system which measures the performance of each employees on yearly basis. By doing this method, organisation can measure the performance of the employee and it will make easy for the senior management to take decisions such as, promotions, rewards and compensations, salary increments as well as termination.

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