Managing and co-ordinating the HR function (HRF)

assessment template

Managing HR at BCB Finance – written briefing paper

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CIPD Level 5 HR HRF assessment template v1.0

 Organisational objectives

Major Organisational Objectives

Within every organisation, the objectives of the HR are relative, for instance, the

provision of an improved working environment; however, they also have evident

differences. The comprehension of the practices of management as well as the

contingency factors of the organisation have also revealed that every organisation has

a distinct set of capabilities in various areas of the organisation(Woodrow & Guest,

2014). Below are some of the organisational objectives that are the responsibility of

the HR to be delivered:

Recruitment

Recruitment is the process of attaining the right and qualified talent for a particular

job role with the help of the selection process that determines and selects the

appropriate candidate for the job role that is available. The HR function has the

responsibility of recruitment and selection. The contribution of each employee is

regarded as vital for the sustenance and growth of the organisation; henceforth, it is of

significant importance for the HR to recruit the appropriate candidate for the job role

as the hiring of the incompetent person can impact on the overall organisational

results. In order to have an effective and efficient recruitment procedure, the HR is

responsible for the development of the database regarding the job vacancies and link

them with the well-defined job description and skills and then simplifying the

application procedure (Woodrow & Guest, 2014). The internet has helped in the

revolution of recruitment. Now, there are numerous touchpoints that are availkable to

the hiring manager in order to fulfill the open job role. Moreover, the organisations

has started making use of video interview which has hekped in saving time as well as

money.

CIPD Level 5 HR HRF assessment template v1.0

 Compensation and Benefits

Benefits and compensations are linked with wages or salary and the non-financial and

financial benefits developed by the organisation for the employees. Compensation and

benefits are regarded as the basic aspect of the HR department as it provides

assistance in motivating the employees. It also helps in offering benefits on the basis

of employee performance. It has been observed that salaries, benefits and

compensation, perks, and incentives are among the biggest factors for attracting the

right talents for the organisation. The HR function plan policies regarding the

bonuses, salary and incentive scheme of the company. HR has the responsibility of

administering, managing and evaluating the structure of salary, incentive schemes and

payroll. They also make sure that the right individual gets the right amount of money

(Guest et al., 2012). Initially, the compensation and benefits majorly comprise of

wages that were based on the performance of the employees. Today, the employees

want more incentives than compensation. The employees at present are motivated by

the bonus plans which reward the hard working along with the flexible working hours.

Training and Development

The HR function also has another main function which is training and development

that is intended towards increasing the individual as well as group performance by

improving and enhancing the information and knowledge. Training and development

are also called as learning and development and also form the part of the talent

management approach of an organisation which is developed for aligning the group as

well as individual performance and objectives with the overall vision and objectives

of the organisation. The HR department has the responsibility for the development of

talent. Moreover, the HR department is also responsible for determining the gaps in

the groups and teams by carrying out the interviews individually as well as

CIPD Level 5 HR HRF assessment template v1.0

 performance appraisals and then-impending the adequate training needed for the

fulfillment of gaps (Woodrow & Guest, 2014). The training needs of the employees

were stored within a database in which the requirements of every role were listed. The

rise of the web 2.0 and the affordability and accessibility of the consumer technology

as well as creative software have resulted in the evolution of training and

development. The HR managers can now direct their own training videos for the

employees.

Different Ways HR delivers its Objectives

The basic objective of HR is the provision of the capable and competent employees to

the company by the alignment of the HR objectives with the overall goals of the

organisation. These objectives can be delivered in various ways. One of the methods

to deliver the HR objective is outsourcing. This method includes the external

organisations for the management of the HR function of a company. Moreover, HR

outsourcing can also be done by the application service HR outsourcing where the

external providers are in search of the technological infrastructure for providing

support to the activities of the human resource. For instance, Genesis HR Solutions is

a UK based organisation which provides the HR services for the organisations. The

majority of the middle-sized organisations make use of this type of service (Brewster

& Söderström, 2017).

Another method by which the HR objectives are delivered in the organisations is

through shared services. The organisations also utilise the shared services for

organisation of the HR procedures which occur in the organisation through the

centralisation of the procedures within the shared functions. This method also assists

the organisations in reducing the costs, increasing the quality and causing a positive

change within the organisation. The costs are minimised by reducing the number of

CIPD Level 5 HR HRF assessment template v1.0

 employees through the acquisition of sales of economies and through the

simplification of the services that are to be carried out. When the HR services are

centralised towards the customers, it attains quality. This method is mainly used by

the voluntary sector as they have limited finances.

The public sector mainly uses the HR generalist model which make use of HR

generalists to offer the hands on HR service to the local part of business. It basically

manages the operations of HR daily. The generalist offer required HR services to the

local business unit on the basis of particular needs.

The theoretical model which is used within shared services for the delivery of the HR

objectives is Ulrich's three-legged model which claims that the HR services are

delivered by three procedures shared services, excellence centers, and strategic

business partners. HR shared services are useful in the alignment of the internal

resources along with the organisational strategies. For instance, the Intercontinental

Hotels have been making shifts towards the shared service method for reducing the

costs and enhancing the quality of the services that have been provided across the

world (Bučiūnienė & Kazlauskaitė, 2012).

Managing Change

Theories of Change Management

Change management has been regarded as a continuous process that needs time,

dedication, expertise and dedication for running as well as application. The

participation of the employees is equally important and can also have an impact on

them. In order to manage and implement the strategies regarding the change, it is vital

to avoid implementing the inappropriate approaches and must also make an effort to

emphasise on the adequate action plan. Two of the major theories that are widely used

CIPD Level 5 HR HRF assessment template v1.0

 in any of the organisation include Kotter and Lewin's change management models.

(Armstrong & Taylor, Armstrong's handbook of human resource management

practice.)

The change management theory of Kotter encompasses eight steps. Each of the steps

emphasises on the major principle which is linked with the response of the people

regarding the change (Lengnick-Hall et al., 2013).

Steps

Increase Urgency: Within this step, a sense of urgency is developed between the

employees for motivating them to move further towards the accomplishment of the

objectives. This can be done by the identification of threats and developing scenarios

along with the examination of the opportunities that cab be exploited.

Team Development: In this step, the right individuals for the team are acquired by the

selection of the combination of knowledge, skills, and commitment. In this step the

organisation are required to create the coalition which publically and constantly work

as a team.

Development of Correct Vision: This step is linked with the development of vision by

taking not just the strategy but also the emotional connection, objectives, and

creativity. For the effective implementation of change the organisations have to

determine the core values that it want to represent in the change.

Communication: The significant part of the change management theory of Kotter is

the communication with the employees related to the changes along with its

requirements. For the effective initiation of change, the organisations have to speak

persuasively and convincingly regarding the set vision.

Get the things moving: In order to empower the action, it is significant for the

organisation to get the support, eradicate the barrier along with the application of the

CIPD Level 5 HR HRF assessment template v1.0

 constructive feedback. For this the organisations have to determine the individuals

who are most resistant towards the change and develop the proactive solution for their

resistance. Moreover, they can also recognise and reward those individuals who are in

the favour of change.

Emphasising on Short-term Goals: For succeeding without pressure; the organisations

must emphasise on the short-term goals and must divide the goals into smaller and

attainable parts. The organisations can choose the appropriate target and can reward

the team members who are able to meet the target.

Persistence: The organisations should also try to be persistent during the entire

process of change management despite the difficulties that have been experienced.

Moreover, the organisations should analyse the things that went wrong and that went

right. They can also set the ambitious goals gradually so that they can develop an

exponential momentum.

Change Incorporation: Together with effective change management, the

reinforcement and making change the part of the culture of an organisation is also

very important. In order to make the change a part of the culture of the organisation,

the leaders have to talk about the progress at any available opportunity. In addition,

they can try to instill the core values of the change in every new individual that has

been recruited and also within the orientation procedure.

Kurt Lewin developed the change management model during the 1950s and defines

the change in the organisation through the changes in the ice block states. The model

encompasses three stages including unfreezing, change and refreeze. Unfreezing is the

first stage which comprises of making preparations for the change. It is a significant

stage since various people across the world are reluctant to change. This stage enables

the organisation to view its foundation and also re-examine it (Buller & McEvoy,

CIPD Level 5 HR HRF assessment template v1.0

 2012). The organisations should examine the behaviours, processes, old behaviours,

organisational structure and people to familiarise the employees with the necessity of

change in order to maintain the competitive edge within the market. The second stage

of the model is the change where the real transaction is carried out. This stage might

take a certain time because the majority of the individuals throughout the world spend

to accept the change. Communication and time are essential to successfully

implement this stage. During this entire process, the organisations should remind the

employees regarding the reason behind change and the ways in which it be beneficial

for them. Once the change got accepted, now it is the time for the organisation to get

stable. Henceforth, the stage is known as refreezing. This stage also requires the

assistance of the employees to make sure that the changes have been utilised and

implemented also after achieving the objectives. Within this stage the organisations

are required to offer the positive rewards and recognise the individual efforts of the

employee as it helps in restoring the new stage (DeCenzo et al., 2016).

The Business Case for Managing HR in Professional, ethical and Just Manner

HR deals with various ethical challenges since it deals with the employees of the

organisation in a direct manner. If HR does not deal with the ethical difficulties in an

appropriate manner, then it can lead to damage to the reputation or financial

instability. The ethical breaches within human resources can also result in legal

troubles to the organisation. The organisation can also avoid the issues related to

discrimination and hostile work environment through a detailed ethics program which

can also lead to the low cost of litigation and out of court settlement. The treatment of

the employees in an ethical manner can also lead to an increase in their loyalty and

trust for a long period of time which offers various benefits towards the employees.

The loyal employees are identified to attain more experience during their work in the

CIPD Level 5 HR HRF assessment template v1.0

 organisation allowing them to master the production process and to understand the

inner functioning of the organisation in a better way (Crane et al., 2019).

Moreover, it also enhances the productivity and efficiency of the employees. For

indicating the commitment of the organisation towards ethics in different areas along

with the human resource, it is significant for the employees to create a detailed ethics

programs. For this, the ethics police of HR can be created and the managers can be

given ethics training programs to make sure that they are aware of the ethics (Trevino

& Nelson, 2016).

Evaluating HR

Criteria and methods to evaluate the HR function’s contribution

There are some of the criteria based on which the HR function, as well as its

contributions, are evaluated.

Recruitment

In order to evaluate the contribution of HR in recruitment, the organisations can make

use of cost per hire which the average amount of money that is spent on making the

hire. This metric is beneficial in the creation of the recruitment budget. For this, the

organisations can compare the annual cost per hire over the years for the identification

of the important changes.

Training and Development

Among these criteria, one of the criteria to evaluate the contribution of HR is the

employees’ feedback system. This criterion can act as the benchmark for comparing

the employees’ responses regarding the articles that are carried out by the HR

function with the policies and requirements of the organisation (Noe et al., 2015).

CIPD Level 5 HR HRF assessment template v1.0

 Another method is the balanced scorecard which comprises four elements the

financial performance, customer services, company potential to grow and internal

business activities (Pizzini et al., 2015). The balanced scorecard helps the

organisations to hold the HRM responsible in all the above extents if the financial

resources provided are used efficiently if the customers are happy with the employee

performances if the internal HR processes are associated with the business goals, and

if the HR has the potential to learn from the growth opportunities and improve the

workforce consequently (Lo et al., 2015).

Compensation and Benefits

Another criterion to evaluate the compensation and benefits is the reward and pay

system and the strategies within the organisation. The development and

implementation of the reward and pay system can assist in the evaluation of the fact if

the HR department has been carrying out its activities efficiently in the provision of

benefits to the employees (Ulrich & Dulebohn, 2015).

Moreover, there are also different evaluation methods that can be utilised for the

evaluation of the function and the contribution of the HR function in compensation

and benefits. HRM audit is also one of the methods. It provides a valid date on the

HRM functions; indicate the significant issues within the HR along with assisting in

making improvements in the HR function.

Research linking HR practices with positive organisational outcomes

The human resource department of the firm is not accountable for developing the

value just via assisting the workforce, it is imperative for them to make sure that the

services which are provided within the firm are in alignment with the firm’s outside

expectations. The targets of the human resource may comprise organisations,

leadership and individuals. It has been researched that the professionals who tend to

CIPD Level 5 HR HRF assessment template v1.0

 offer comprehensions of the ways for aligning the targets for delivering the outcomes

of the firm tend to deliver the value (Cooke & Saini, 2010). When the practices of the

human resource department within the performance, information and people are

integrated, aligned and innovative, it tends to enable the department to deliver the

individuals’ talents, capabilities of the firm as well as the leadership to the firm in

such a manner which assists the shareholders and also provide response to the firm’s

external shareholder for the purpose of creating value. The credible activities tend to

possess influence over the personal as well as business outcomes and the role that is

played by the professionals as well as for analytics of the HR also tend to possess the

similar influence over the business’ overall performance (Boon et al., 2011).

In addition to this, the system of high-performance working within the firm has been

leading towards fierce competitiveness among the firms as a result of the improved

practices of the firm. Within the process of the working of high-performance, the

practices of the department of the human resource within the firm are focused on the

evaluation of the performances on the grounds of certain criteria, the establishment of

the performance standards, and provision of rewards to the high performers as well as

facilitation of the motivation’s feedback (Katou & Budhwar, 2010).

The model of AMO theory involves 3 independent components of the work system

which shape the characteristics of the employee and additionally, contribute to the

firm’s success. It raises the ability of employee, motivates the employees and provides

some opportunities for contributing to the firm. For instance, when the business will

stimulate commitment as well as involvement of the employees, they will attain

higher levels of performance in terms of HR practices as they will recruit and select

the candidates more effectively.

CIPD Level 5 HR HRF assessment template v1.0

 Meaning of high-performance working and human capital and the way they impact

on organisational performance

High-performance working is regarded as the approach that is used for managing

organisations that focus on stimulating the effective involvement and commitment of

their employees for the purpose of achieving the performance of high levels. It is

related the developing a culture that promotes trust, transparency, and open

communication lines for everyone. While on the other hand, human capital means the

employees who are associated with business either directly or indirectly. They are

considered as the main asset of the company because they are contributing to the

organisational growth in terms of leading to higher profitability and satisfaction of the

customers. The organisation focuses on investing in the human capital and adopting

high performance working approaches to make sure that the targets or goals of the

business are achieved timely (Fu et al., 2015).

High-performance working can be promoted through effective human capital because

these are the asset that an organisation possesses in the form of employees. HPW and

human capital are important aspects of organisation because it helps them in making

sure that all the objectives are achieved effectively and timely. They have a significant

impact on organisational performance because employees are the main asset as they

are involved directly in the operations and functions. High-performance working and

effective human capital serve as the means to promote the working as well as the

efficiency of the employees which have a direct impact on the organisational

performance. With the help of high performance working, the organisation can

involve their employees and make them committed to the business based on which

performance can be improved (Guest, 2017).

CIPD Level 5 HR HRF assessment template v1.0

 It is noticed that high-performance working and human capital has a direct correlation

with the growth of an organisation, its profitability, job satisfaction, staff turnover,

and innovation as well as creativity. HPW and effective human capital are the means

of increasing the profitability of the organisation along with reducing staff turnover

and increasing job satisfaction. This is because it ensures that employees are involved

in the organisation and they are considered an important part. This motivates them to

work with increased effort and dedication which has an influence on the overall

organisational performance. Effective human capital and the use of HPW practices

ensure that the employees are satisfied so that they ensure that all the concerns of the

clients and any other aspect that influences the organisation negatively is controlled

(Delery & Roumpi, 2017).

CIPD Level 5 HR HRF assessment template v1.0

 References

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CIPD Level 5 HR HRF assessment template v1.0

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