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THE UNIVERSITY OF MANCHESTER

MANCHESTER BUSINESS SCHOOL

Human Resources
Instructors: Olga Suhomlinova, Jakie Kan, Inger Boyett, Robin Large

Assessment Ref: HR/July 2009/1


Analysis of the major HRM systems of an organization

Author: Wael Tarabis, student# 7574554

October, 29, 2009

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Summary

This report is about analyzing the major HRM systems of an organization and discussing the extent to which it
reflects on the organization’s performance.

Introduction

The contributions HRM makes to organizational effectiveness include important matters such as:

• Helping the organization reach its goals.

• Employing the skills and abilities of the workforce efficiently.

• Providing the organization with well-trained and well-motivated employees

• Increasing the employee’s job satisfaction, developing and maintaining quality of work life that makes the
employment in the organization desirable.

• Communicating HRM policies to all employees.

• Helping to maintain ethical policies and socially responsible behavior.

• Managing change to the mutual advantage of individuals, groups, the organization and the public.

Overview of the organization

The organization in concern is a large construction contracting entity based in Dubai, UAE.

The HR and Administration of this organization are being managed by one department named the HR and
Administration department.

Description of the organization’s major HRM systems

The systems consists of a set of procedures and some related forms to supplement the implementation of these
procedures, those procedures and forms are posted on the organization’s intranet, and available for all employees.

1.0 Recruitment and selection:

1.1.0 Recruitment needs and planning

The HR & Administration Department will facilitate a centralized recruitment planning process in accordance with
the form - Manpower Allocation, which is driven by the annual overall manpower requirements for each project.
Recruitment needs are primarily based upon the company annual manpower requirements. Any immediate
requirement may be raised using the form - New Employee Request. Requirements through this form will be given
priority.

1.2 .0 Recruitment Strategy

The organization retains the current employees and aims to attract the best and brightest new recruits.

Depending on the timeframe given to fill the immediate requirement, a recruitment campaign will be initiated by
either internal or external searches.

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The HR & Administration department will maintain a specific schedule of the competency levels and a detailed job
description in order to ensure that appropriate candidates are sourced.

1.2.1.0 Internal Sourcing

For any vacant position, an internal search will be carried out through the HR & Administration department.

A circular will be circulated internally to find the suitable candidate.

If a suitable candidate is found he/she will undergo an informal interview and based on the feedback, will be
transferred internally.

Provided a suitable candidate is not found, an external search will take place.

1.2.2.0 External sourcing

Candidates can be identified externally through any of the following sources:

• Existing data bank of candidates within the organization.

• Recruitment agencies (Local/International)

• Recruitment portals (Regional)

• Advertisements through local/foreign media

• Job fairs

• College/University campus bulletins

• Referrals through word of mouth, employee contacts, management recommendation and other forms of
networking

1.3.0 Recruitment of staff

1.3.1.0 Collecting and Screening Applications

Application forms and CV’s will be received and reviewed against the job specifications. All incoming CVs will be
centrally stored and electronically categorized by the recruitment team.

1.3.2.0 Interview Arrangements and Formalities

An interview will be arranged with the participation of the concerned project/divisional manager/director:

• Reference Check Form is to be completed for senior position candidates, prior arranging an initial
interview.

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• A representative of the HR & Admin Dept will be nominated by the HR & Admin Director to assist in the
interview process

• ‘Interview Guidelines’ should be used as a basic reference to assess the candidates.

1.3.3.0 Interview Feedback

• During an interview, Interview Feedback Form shall be completed comprehensively. It will have the
recommendation from the interviewer stating detailed reasons clarifying why the candidate is deemed
suitable or otherwise.

• In the event of the candidate not being selected, he/she will be informed in writing. However, if the
candidate is deemed suitable for employment, the interview feedback form will be sent to the HR &
Administration Director for an offer approval as per the company salary scale.

1.3.4.0 Negotiate Package

Only the Managing Director, Chief Operating Officer, General Managers, Recruitment Managers or the HR&
Administration Director are authorized to negotiate packages in accordance with the salary scale and the benefits &
compensation guidelines but final approval will be issued by the Managing Director if the offer is more than the
salary scale.

1.3.5.0 Prepare an Offer

Once an offer has been outlined, Personal Action Form will be completed. This form has a breakdown of the salary
and benefits that is to be offered to the candidate. It is to be approved by management as stated above.

Upon obtaining all necessary approvals, the offer will be sent to the candidate.

1.3.6.0 Joining Formalities

The employee will report to the HR & Admin Department to complete the required joining formalities which
include an employee induction upon joining.

1.4.0 Recruitment of Unskilled Manpower

Sourcing unskilled workforce is done overseas through the associated recruitment agencies. The process is initiated
with a recruitment campaign based on the manpower requirements from the project sites.

The designated agencies will preselect the candidates. A technical panel is then constituted who will travel along
with a representative from the HR & Admin Department to conduct the interviews.

2.0 Performance Appraisal

2.1.0 Competence test for directly appointed daily paid employees


2.1.1 On arrival, new employees will report to the Administration and Personnel
Department. After undergoing medical examination, they will be sent to the
grading section for assessment of their capability. An appointed employee will be
responsible to assess new employees and report back to the Administration and
Personnel Manager using the Assessment Form.
2.1.2 Further detailed assessments will be conducted at site as and when required for
daily-paid employees.

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2.1.3 Performance reports of all new employees will be produced, employees will be
graded on a scale of A to E based on their experience, physical fitness, practical
test, productivity, safety awareness, quality and discipline. The grading scheme
will be as follows:

A Very good - Increment will be considered as an appreciation


B Good - Satisfactory
C Normal - Training will be required
D Poor - Under probation for 6 months with an option of
degrading in future
E Very poor - Termination of services
Labors performing well would have the option of being upgraded to
assistants to tradesmen as applicable.
2.2.0 Performance Appraisal for technical and administrative staff
Performance appraisals to be conducted after three months, and six months from
the joining date then annually; the organization is using an appraisal form-
technical and administrative staff for this purpose.

3.0 Compensation

3.1.0 Scales for monthly staff


3.1.1 The remuneration of monthly-paid staff will be determined by their
categorization into classifications of responsibility and by their impact on the
company's business. Where necessary, sub-grading will be employed to further
define classifications.

3.1.2 All new employees will be graded to ensure that their starting point is known
and to indicate the opportunities of promotion.
3.2.0 Scales for daily paid employees
The wages of daily-paid employees and Plant operatives will be specified based
on the running wages of the company unless advised otherwise by top
management.
3.3.0 Increments

Applications for change of status and increment in remuneration are to be


approved by the Location Head and forwarded to the HR and Administration
Manager who will review such applications along with the Finance Manager and
take the necessary action in due course.

3.4.0 Trade change


All trade change applications by the employees will be received by the Location
Head who will forward his recommendation to the HR and Administration
Director.

3.5.0 Annual bonus


The company provides an annual bonus which is around a one month salary

3.6.0 Medical Treatment


The company offers health insurance policies for all employees that vary depending on the category of the

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Employee.

4.0 Training systems

4.1 Policy Statement

The company is committed to the ongoing development of its workforce, ongoing training is essential for the
company to retain a highly skilled and motivated workforce, enabling the company to compete in a challenging
environment. The company will endeavor to support employees to identify and seek further training which will
provide benefit to both individual development and current and future company business and knowledge needs.

4.2.0 New Employee Training

All new employed personnel shall undergo an induction training conducted by the HR & Admin Department in
accordance with the form – Employee Induction.

4.3.0 On–Going Training & Development

4.3.1.0 Identifying Training Needs

Training needs shall be identified through a number of formal and informal means.

4.3.1.1 Formal means:

• Training needs shall be identified by the employee’s manager through the annual performance appraisal.

• A structured Training Needs Assessment Survey shall be carried out at the end of every year in order to
identify the training requirements among the employees.

• Employees shall participate in the annual Training Needs Assessment survey. Data collected shall be
analyzed by the HR & Administration Department.

• By referring to the Learning Resources Guide and company intranet, a training request shall be submitted
by the employee or employee’s manager at any point of time to meet the evolving job requirements. They
shall complete Training Request Form, obtain the approval of the location head and forward it to the HR &
Admin Department for further processing

4.3.1.2 Informal means:

• Ongoing liaison between project sites and the HR & Admin Department.

• From direct supervisors as part of ongoing assessment of job requirements, skill level and
monitoring the work performance.

• From monitoring the changes in market, industry, legislative or role requirements.

• From Departmental Managers, QHSE Managers and Officers

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• From audit and surveillance of management systems.

HR & Administration department extracts the training needs identified from the above processes, prepares and
distributes a summary to all the relevant project / departmental managers, and comes to an agreement with them on
training to be undertaken in the upcoming period. Following the agreement, an annual master training plan shall be
prepared at the beginning of every year for both the staff and daily paid tradesmen. The Plan shall identify the
subject matter, source (internal / external), cost and approximate timing of the training.

4.3.2.0 Developing and implementing the Training Plan

Training plan shall be reviewed by the HR & Admin Director and submitted to the steering committee for budgetary
approval.

Schedules of the internal/external training events shall be published on company intranet and the
department/locations shall announce the upcoming training programmes through circulars and notice boards.

The progress of training plan shall be reviewed by the steering committee in December every year.

Training plan shall be implemented using internal resources or by selected external sources and subject to the master
plan.

4.3.2.1 Internal Training:

Internal Training shall be carried out using In-house Subject Matter Experts, Location Managers, Experienced
Supervisors or the trained trainers in various job disciplines and company training centre.

On-the-job training and development shall be carried by the responsible managers by referring to the Learning
Resources Guide and the process shall be coordinated by HR & Admin Dept.

4.3.2.2 External Training:

External training shall be carried out by the external training institutions.

4.4 Training Feedback:

Once an internal / external training has been completed the attending employee shall complete an evaluation of the
training by completing Training Feedback Form.

Feedback shall be evaluated by the responsible training managers to assess the success of courses and the quality of
training providers.

Within six months of the completion of the training another post training feedback shall be collected from the
employee’s manager using Post Training Feedback Form to observe the effectiveness of the training provided.

Consideration of Performance.

• The HRM systems gives priority to internal hire, that is cost effective as CPH for internal hire is less than
CPH for external hire.

• The indexes being used to measure the recruiter effectiveness through the organization’s HRM integrated
systems are: response time, time to fill the job, cost per hire, employee acceptance rate, and quality of hire.

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• The three general measures of training are cost: per unit of training delivered, change: gain in skill or
knowledge or positive change in attitude by the trainee, and impact: results or outcomes from the trainee’s
use of new skills knowledge, or attitude that are measurable in monetary terms in the organization’s
productivity, quality, or service results; those measures are being applied considering the changing
circumstances.

• Rates of absenteeism and turnover are highly reduced, which maximizes cost savings and decreases stress
on coworkers.

Evaluation of the extent to which the HRM systems in use are consonant to the organization’s
performance

The current HRM systems of the organization are overall supportive to the organization’s performance as it adds
values in terms of reduced operating expense, less overtime, higher productivity, reduced processes cost, lower
product/service cost, fewer or none lost customers, retention savings.

These added values helped the organization retain its position as one of the leading construction companies in its
market even during the current recession.

Conclusions

High quality HRM systems is a key to the success of any organization, it reinforces the organization’s
stability and contributes to the steady growth of the organization.

• Performance management is a chance for the organization to learn about what employees are really doing,
and to understand what will motivate them in the future.

• Compensation’s mission is to assist in attracting, retaining, and motivating employees; to achieve its
mission, it must maintain a good structure, meet the needs of the organization fairly and equitably for all
employees.

• If we change the mental image of the employee’s benefits from a cost to a return on investment we
probably will find new ways to make benefits worthwhile for organizations as well as employees.

• Benefit packages that are flexible and go beyond health and life insurance can give an edge in recruiting
scarce resources.

• The style of holistic reward implied by total reward strategies has been shown to have a positive impact.

• An ongoing training policy is necessary to keep the employees up to date and to keep them believing that
the organization is committed to them.

References

- Human Resource Management A Concise Analysis, Eugene Mckenna, Nick Beech, Second Edition

- Human Resource Management, John M. Ivancevich, Tenth Edition.

- How to Measure Human Resource Management, Third Edition, Jac Fitz-enz and Barbara Davison

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