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BU5062 Human Resource Management

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Course Code: BU5062
University: University Of Chester

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Country: United Kingdom


Learning Outcomes Covered by this assessment

Apply key concepts and explain terminology in HRM and demonstrate their relevance within various organizational contexts.
Demonstrate a critical awareness of the theory and practice of employee sourcing, motivation and engagement.
Evaluate the effectiveness of talent management practices within various organizational contexts.
Examine the impact of flexibility, work-life balance and diversity on the practice of HRM.

Each year Circle conducts an audit of its Human Resource Function challenging its chosen Human Resource Model, Recruitment and Reward Package as well as the practices that it has in place to foster staff engagement. This year, the Chief Executive Officer of Circle has indicated that this year’s Human Resource Pledge will be the best ever, in terms of Circle’s commitment to its Employees, with the potential of:

Increased ownership opportunities in Circle for Circle’s staff, (with potentially 49% of Circles Share Capital being made available to Circle’s Employees as part of an Employee Share Ownership Programme);
A greater involvement of Circle’s Staff in the Recruitment Practices of Circle;
A change to recognising all staff as Partners and not employees of Circle;
Improved decision making, (including the abolition of a command and control hierarchical structure towards a more decentralised structure where each business service function rather than provider becomes responsible for its own performance and success), and
Improved Employee Voice. In order to persuade Circle’s Board of Directors of the best approaches to achieve each of these goals you have been asked to deliver a Working Paper, advising the Board of the latest research, practices and developments in Human Resource Management Practices to justify,
How changing Circle’s HRM Model will help it to meet its new strategic goals. Circle has requested that you consider as many of the HRM models that are available to it in order to justify your selection of a particular model, best suited to Circles’ aims. Compare and contrast your selected model with the more traditional Personnel Management approaches so as to ensure that the Board of Directors can justify the value of the Model that you have chosen.
The steps that you would undertake to improve the strategic recruitment and selection of Specialist Nurses and Junior Doctors, and how this will differ from ordinary recruitment and selection practices. The Board has asked you, in particular, to explain and justify the approach that you would adopt to achieve the best Talent Retention Rates.
The Policies and Practices that you would suggest to Motivate and Engage Circles’ Staff, including the development of Diversity Management Policies.
The Work Life Balance Policies that you would suggest to improve the working lives of Circles’ Staff, and
How the measures outlined above would improve Circles’ Employee relations


Response to question 1:
Personnel management is the old model of management which is used by the health care organization. This old model was mainly concerned about the appropriate use of human factors, hence, it can be demonstrated that personnel management is a process of management which prioritises the human constituents of the organization (Klingner, Llorens & Nalbandian, 2015). The new management model used in the health care organization is the human resource management. It can be described as the set of concepts, ideas and techniques that are held together through a common idea in order to maintain and improve the competitive advantage of the organization (Bratton & Gold, 2017). The old model that is personnel management mainly deals with day to day management issues through the establishment of relationship among personnel, job and physical factors. It is mainly used to guide the people with their work, regulate the employee activities through plan and develop training for the staffs as well. Still there are several Management issues regarding the workplace and diversity of the workforce (Stahl, Björkman & Morris, 2012). In addition, personnel management theory has been developed from the twin influence of theories of Taylor and Adam smith’s classical contract theory. Both the theories have provided dark view regarding employee input, motivation and welfare (Poór et al., 2014). Therefore, the new management model of strategic human resource management has been developed to solve the motivation issue while focusing on employee welfare. The main difference between strategic management and personnel management is that they prioritise different things. Whereas, personnel management focuses on administrative tasks, the strategic human resource management focuses on strategy and different operational matters (Armstrong & Taylor, 2014). Therefore, the strategic human resource management enhances the responsibilities of human resource management department in order to improve the service of the organization. Hence, it is important to implement effective strategic human resource management model in order to avail the competitive advantage such as do something better than the other organization and achieve something rare (Boella & Goss-Turner, 2013).
According to Kaufmann, (2010) formal human resource management department is not required for generic human resource management. The arrangement practice in late 19th and early 20th mostly employed several people and the function of hiring people, maintenance of discipline, rules, compensation were managed by them in alternative ways. Additionally, the owner and manager were also performed the functions of HRM. However, the old personnel management had no system, no consistency, it relied on the market and solve the problems day to day basis (Guest, 2011). Hence, the new HRM model with softer HRM concept has been developed which could make the employees happy to work and motivate them to remain engaged with the work. There are different models of HRM, among them the Harvard model would be the best choice for Circle health care organization as it aims to improve the management decisions that could affect the relationship between employees and the organization (Briscoe, Tarique & Schuler, 2012). In this model the employees are considered as the asset of the organization and managed with long-term perspectives (Jiang et al., 2012). Therefore, it would be useful to implement this HRM model in Circle health care to achieve their target as the organization aims to motivate the employees and encourage them to meet the requirement son the client.
Response to question 2:
Recruitment is considered as the most important and core function of the human resource management department in an organization (Bratton & Gold, 2017). It is a crucial responsibility to recruit efficient staffs in the health organization that are contain high qualification and able to perform all the tasks in an effective manner (Stahl, Björkman & Morris, 2012). However, in the recent years several issues with the recruitment of staffs in health care has been identified. One of the most noticeable issues is the cost issue (Poór et al., 2014). According to the report published by the Oxford economists, total cost of recruiting new staffs is 30,000 euro per week (Armstrong & Taylor, 2014). There are two major factors that are associated with this high cost, that are the logistical cost of recruiting new staffs and cost of lost outputs due to the replacement of employee with new staff and time taken for brought them up to speed. It has been found that a new employee takes 28 weeks in order to achieve the optimum productivity. The organization has to pay the cost for employing a wrong or inefficient staff as well (Guest, 2011).  On the other hand, the traditional recruitment process includes interviews and collecting resumes, but these process are not appropriate for analysing whether the selected people are able to work efficiently. In addition, wrong person may be recruited through this process. For example, Cananau & Astarastoae, (2012) have reported about doctor raped patient. Such incidents affects the reputation and productivity of the organization. The old recruitment system includes the consequence such as the offer of providing training for the people that are not fit for the job, hardworking people good at particular thing but not good in other work and people do not contain adequate skills. It has been found that 80% organization use interview as the process of recruitment (Armstrong & Taylor, 2014).  Hence, it is important to assess that whether there is other effective ways to recruit staffs and adapt a strategic approach in order to recruit efficient staffs.
In order to adapt a strategic recruitment process it is required to follow the recommendations of researchers and utilise them for improving the recruitment process and select efficient staffs for the organization. In this regards, Porters strategy would be helpful which indicates the use of low cost strategy (Tanwar, 2013). On the other hand, 6 steps of strategic recruitment provided by Caldwell et al., (2010) could be used such as define the position and job role, know the department well, determine timeframe, develop budget plan, assess the hiring options and collaborate across the departments. CIPD provides two main stages of recruitment such as short listing and assessment, whereas, ACAS has recommended that it is important to keep abreast of changes in labour market for ensuring that the effort for recruitment is not wasted (Latrelle, 2011). Other strategies such as focusing on psychometric tests, auditioning, employer branding and assessment could be used as effective strategic recruitment plan as well (Wilden, Gudergan & Lings, 2010).
Response to question 3:
In order to manage the health workforce and encourage them to remain engaged with the organization and provide quality service it is important to motivate them in an effective manner. For the health workforce, motivation could be defined as the reason for working or involving with the organization (Nuttin, 2014). Motivation can be classified into two classes such as intrinsic motivation and extrinsic motivation. Intrinsic motivation is associated with personal motivation which means the motivational behaviour is influenced by internal desire and something for own sake. It may be improving own knowledge or skills due to the eagerness of learning or may be the passion for serving for the people with need (Petri & Govern, 2012). In comparison, extrinsic motivation is defined as motivation that are provided by external factors, which may include getting rewards for performance, salary, working in a renounced organization and comfortable workplace as well (Nuttin, 2014). According to Taylor’s motivation theory, money is the only motivation for the workers. According to him, most of the workers do not enjoy their job, hence, they need to be monitored and managed with effective strategies and due to natural soldiering employees have the tendency of taking slack. Therefore, managers need to break down the job of each employee in a manageable way and adequate training need to be provided to improve their skill. He also mentioned that employees should be paid according to their performance, hence, more they work, more money they could earn and it could be one of the most effective extrinsic motivation for the employees (Petri & Govern, 2012). On the other hand, the motivation theory of Hertzberg indicates that, there are several factors in the workplace which may lead to job satisfaction and some aspects may lead to dissatisfaction as well. He has identified growth, achievement, recognition and advancement could act as positive factor for motivating the employees, in contrast, company policies, supervision, poor salary structure, security factor and work environment may lead to dissatisfaction (Nuttin, 2014).  Hence, it is important to consider such factors while introducing policies to motivate the employees of Circle health care. The following policies and procedures may be helpful in developing high calibre workforce and recruiting and retaining the best talents available in the health industry (Bratton & Gold, 2017). In addition the approaches of hard and soft HRM need to be considered. Hard HRM associated with cost-effective workforce, whereas, soft HRM associated with treating people nicely. The disadvantage of too soft HRM is the possibility of high cost due to employee benefits, hence hard HRM will be appropriate for HRM of circle healthcare as it would help to make the recruitment process cost effective and resolve the issue to costly recruitment in health sector (Poór et al., 2014).
Employee engagement and retention policy:
The people that provide service in an organization are the main resources of the organization, hence, it is important to motivate and encourage such people in order to engage in their work and provide best service to the consumers (Drucker, 2012). In this regards it is required to implement effective employee engagement and retention policy in the organization which may consider the factors like-

Involving employees in decision making.
Provide role according to their field of expertise.
Conduct meeting in order to discuss the issues and needs of the employees to introduce effective strategies.
Provide flexible shift timing.
Allow the employees to provide feedback regarding the management.
Support them with adequate resources (Daley, 2012).

HR policies:
The human resource policies and procedures are one of the most valuable aspects of any workplace including health care organization. It provides guidance to the staffs and management, provides protection to the workforce, ensures that all the employees are complying with the rules and disciplines of the organization and also ensures that the organization is complying with the rules and regulation provided by the government. In this regards the Circle health care organization audit its HR policy and procedures each year and develop new policies in order to improve the service (Jiang et al., 2012). Therefore the HR policy and procedure needs to contain the following aspects-

Provide a consistent process, rules, and disciplines for the employees to follow.
Policy should contain adequate measures to help the employee to manage difficult situations.
HR policy should inform about the ethical manners of the organization.
It should inform the management about the government rules and regulation in order to help them to comply with the procedure.
Equal distribution of resources among the employees.
In addition, it should contain the penalty in case of breaching the rules and regulation (Drucker, 2012).

Diversity management policy:
Any organization including the health care organization consists of workforce that contains people from diverse cultural, ethical or social background. As the Circle health care organization wants to strengthen their workforce it is most important to consider the cultural factors in order to maintain diversity in the workplace (Noor et al., 2013). Hence, it is required to adhere to diversity management in order to create inclusive and fair workplace and inspire the employee to maintain favourable working environment. In this regards, the purpose of the policy should be-

Acknowledge diversity in the culture and ethics of the employees.
Provide equality to all employees irrespective to their age, gender, ethnicity, religion, disability, marital status and social class.
Oppose the acts of unfair and unlawful discriminations.
Ensure equal opportunity and access for all employees in the organization (Babalola & Marques, 2013).

Policy for employee legislation and standards:
Beside the HR policy that informs about the importance of maintaining government legislation, it is important to introduce a separate policy which will inform about the various guidelines provided by the government and ensure that the organization is following such guidelines. This would help to gain the trust of the employee regarding the validity of the organization (Drucker, 2012). On the other, hand the health and safety factors in workplace, employee legislation and act provided by the government of UK and other business rules that are important to maintain an organization would be maintained in an effective manner through the implementation of employee legislation and standards policy. For example in UK it is important to comply with the health and safety law in order ensure health safety of the workers in the workplace (hse.gov.uk, 2018). Hence it is required to introduce policy for ensuring that the organization is complying with the employee legislation and standards. The purpose of this policy should be-

Ensure that the organization is maintaining all the employee legislation and standards provided by the Government.
Ensure that health and safety in the workplace is maintaining in an effective manner (Daley, 2012).

Policy for compensation and benefits:
As mentioned before it is important to provide some benefits and recognition to the employee in order to motivate them and encourage them to remain engaged with the organization and provide quality service in an effective manner. In this regards it is essential to introduce policy for compensation and benefits. It would help to inform the employees about the compensation and benefits provided by the organization to the employees (Drucker, 2012). The purpose of this poly should be-

Provide information about early recognition and compensation provided by the organization.
Inform about the increment and bonus structure.
Inform about incentives for extra work.
Provide information about the facilities and benefits provided by the organization (Daley, 2012).

Policy for performance management:
Performance management is another important factor which is required to be maintained effectively in order to evaluate the performance of the employees and provide credit or impose penalties according to their service.  Credit for the performance would help to motivate the employees to perform more efficiently, whereas, penalties for poor performance may create awareness within the staff so that they could concentrate on their performance and fulfil their responsibilities in an effective manner (Jiang et al., 2012). Hence, policy for performance management is also required in Circle health care organization. The purpose of this policy should be-

Inform the staff about the way of managing their performance.
Provide credit for fulfilling their role in a professional manner.
Impose penalties for the staff that will fail to perform their duties effectively (Drucker, 2012).

Policy for training and development:
In order to improve the service of the organization and meet the requirements of the patients it is essential to train the staffs according to their duties and educate them about the new technologies so that they could adapt them and remain updated with the improved care process (Daley, 2012). Hence, it is important to introduce rules and regulation for the staffs regarding their training and education. In this regards policy for training and development needs to be implemented for the following purposes-

Ensure that all the staffs are completing the training session.
Ensure the availability of all resources for training.
Inform about the consequence of not completing the training.
Impose penalties for not completing the training (Keep, 2014).

Such policies would help to attract new nursing staffs to join Circle health care organization and also help to retain the existing workforce, which means all of these policies would facilitate the employee retention plan of circle health care organization. In addition it would help to reduce social issues and conflicts in the organization (Drucker, 2012). Such effective management through effective organization policies could help to strengthen the health workforce of Circle and recruit the best talent in health care field as well. Therefore could help to achieve the objectives in an effective manner.
Response to question 4:
Work life balance is defined as balance between the time allocated for work and time for managing other aspects of life (Delecta, 2011). Poor work life balance leads to the consequence of stress due to work, demotivation, depression and poor productivity. Such things affect the personal life of individual as well. Hence, it is important to keep balance between work life and personal life in order to reduce mental distress due to work and live meaningful life (Jones, Burke & Westman, 2013). It has been found that in health sector, the staffs face various issues regarding their leaves, shift timing and maternity leaves, hence, it becomes difficult for the health workers to maintain work life balance. Therefore, it is important to introduce effective policies in order to help the health workforce to maintain work life balance in an effective manner. It would help the employees of Circle health care to remain motivated and work efficiently in order to fulfil their duties (Goodman, 2012).
In this regards, firstly, a policy for rotational shift needs to be implemented. Rotational shift indicated that there will be no fixed week off, however, the employees could take week off on any day of the week. However, number of staffs that could take week off in a day needs to be mentioned in the policy (Jones, Burke & Westman, 2013). Policy regarding night shift needs to be implemented, for example, the policy could implies that a person need to do 6 night shifts per month (Goodman, 2012). Next, policy regarding leaves needs to be introduced. 2 leaves per month could be given to the employees and if an employee do not take leave, then, his/her leave should be added to the leave balance (Jones, Burke & Westman, 2013). On the other hand policy regarding maternity leave as well. It should comply with the Family and Medical leave act. According to the law of UK, the Circle health care should provide fully paid maternity leave for 16 weeks (gov.uk, 2018). It becomes difficult for a health care staff to take care of too many patients, hence policy regarding patient-nurse ratio needs to be implemented. The policy should limit the number of patients under the care of one nurse (Delecta, 2011).  Such policy would help to reduce the work load of the employees of Circle health care and help them to maintain balance between working time and time for other aspects of life.
Response to question 5:
In order to evaluate the employee’s relation of an organization it is required to understand the industrial relations. Industrial relation is described as the multidisciplinary approach that examines the complex interrelationship between employers, employees, trade union, employer organization and state. However, priority is provided to the relationship between employer, employee and trade union mostly (Brewster & Hegewisch, 2017). Trade union is described as an association of workers of a particular trade which is formed in order to protect the rights of the workers (Waddington, 2015). In 1867, trade union has been decriminalized in UK through the recommendation if Royal commission (Fitzgerald & Hardy, 2010). The association was build in order to facilitate both the employees and employer. The trade union take responsibility to advocate behalf of the employees for their rights (Waddington, 2015). However, the actual growth of the trade union in UK has been demonstrated during 1950s and 1960s (Keune, 2013).  In 1969the trade union has experienced high level of employment, achieved welfare state and also gained victories for example the initiation of equal pay for the first time (Peng & Kang, 2013). Hence, it is important to establish effective relation with the trade union and maintain the tripartite relationship among employee, employer and trade union in an effective manner.
However, rapid deunionization has occurred during 1990. In 1980 there were 54% union density and it has fallen to 38% in 1990 (Judzik & Sala, 2013). This has mainly occurred due to the failure of the private organizations to establish improved set up for the employees (Fitzgerald & Hardy, 2010). The main competitor of Circle health care is the government hospitals. It has been identified by (Waddington, 2015) that the government hospitals are also deunionized in order to manage the health workforce with effective strategic management strategies. Hence, in order to compete with the government hospitals it is necessary for the Circle health care to become deunionized. On the other hand, trade union is already abolished under SHRM (Doherty, Dickmann & Mills, 2011). Therefore if the Circle health care wants to utilise SHRM model, deunioniozation is required. According to the management theory of Taylor it is important to use the autocratic model of management in which the managers would have the power of taking decision for the welfare of the organization and the employees as well (Armstrong & Taylor, 2014). With union it is not possible to implement autocratic management hence, deunionization is an important aspect for Circle health care. In addition, the policies and strategic management approach introduced for the Circle health care will help to maintain the employee relations in an effective manner. For example the main focus of the strategic human resource management is motivating the employees. The policies for leave, performance management, shift timing, training, reducing work load, HR policy, employee legislation and standard and others would help to maintain a better an improved workplace and encourage the employee of the Circle health care organization to remain engaged with the organization and provide best service to the clients (Guest, 2011). Hence, it is expected that with the measures outlined above Circle health care would be able to meet their objectives in an effective manner.
Armstrong, M., & Taylor, S. (2014). Armstrong’s handbook of human resource management practice. Kogan Page Publishers.
Babalola, S. S., & Marques, L. (2013). Integrated approach to workplace diversity through human resource management. Journal of Social and Development Sciences, 4(9), 435-445.
Boella, M., & Goss-Turner, S. (2013). Human resource management in the hospitality industry: A guide to best practice. Routledge.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Brewster, C., & Hegewisch, A. (Eds.). (2017). Policy and practice in European human resource management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Briscoe, D., Tarique, I., & Schuler, R. (2012). International human resource management: Policies and practices for multinational enterprises. Routledge.
Caldwell, P. H., Hamilton, S., Tan, A., & Craig, J. C. (2010). Strategies for increasing recruitment to randomised controlled trials: systematic review. PLoS medicine, 7(11), e1000368.
Cananau, M., & Astarastoae, V. (2012). The concept of patient-doctor-media confidentiality relationship in mass-media. Revista Romana de Bioetica, 10(3).
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Doherty, N., Dickmann, M., & Mills, T. (2011). Exploring the motives of company-backed and self-initiated expatriates. The International Journal of Human Resource Management, 22(03), 595-611.
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Keep, E. (2014). Corporate training strategies: the vital component. New Perspectives, 109-125.
Keune, M. (2013). Trade union responses to precarious work in seven European countries. International Journal of Labour Research, 5(1), 59.
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Peng, F., & Kang, L. (2013). Labor Market Institutions and Skill Premiums: An Empirical Analysis on the UK, 1972-2002. Journal of Economic Issues, 47(4), 959-982.
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