For any organization these areas of Human Resource Management plays very important role. Recruitment, Selection, Performance, Appraisal and Reward’s significance have been discussed in the report with the process of how it had been carried out in an organization. Along with the literature of above areas the case of an essence restaurant have been discussed. Restaurant deals with the problems related to staff turnover and the negative work environment created by the manager with the staff of an restaurant. During these crisis situation between the management and staff how the above areas can help deal with the situations. Even the legal framework within the areas have been considered.
1.1 Introduction to the purpose of the report
The aim of this report is throw a light on successful implementation of recruitment, selection, performance, assessment and reward procedures in an organization, so that right person can be fitted in the right kind of job, working for mutual benefits. Also to take into consideration what will be the retention rate of an employee in an organization, how assessment of an employee will help to determine the strength and current performance level and what should be the actual performance. These factors will help to decrease retention rate and increase the performance of an employee which in turn will be rewarded.
1.2 Introduction to the Case Study
In service industry employees’ are the key factors in the business success and development. An industry based on people than machines. Case study focuses on the problem faced by one of the essence restaurants’ newly developed chain. Essence is a restaurant, which offers British Cuisine with a touch of international influences.1 It delivers high level of service to their customers. But staff are not satisfied with the kind of work environment they are offered. Essence is facing a problem of high staff turnover and unsatisfied working environment of staff members.
2. Literature Review
This part of report introduces with the topics i.e. Recruitment, Selection, Assessment, Performance, Reward.
According to Rynes and Cable, 2003; Organizational practices are utilized in order to attract the large number and types of applicants who are interested in filling the job vacancies. The most effective recruitment program will attract more applicants to apply for the job because “the more you have to choose from, the better the choice” (Herriot, 1989).
Recruitment can be from internal labor market (i.e. existing employees of an organization) or the external labor market (i.e. applicants outside the organization). Internal vacancies can be notified on staff boards, meetings, job postings, Inhouse magazines. word-of-mouth. External labour market recruits from the sources like advertising, job centres, employee referral program, recruiting agent or consultants, college campus recruitment, job fairs, e-recruitment (Zottoli & Wanous, 2000).
Advantages & Disadvantages of Internal Recruitment are:
* Advancement for the existing employees
* Retains staff for a longer period of time
* Training and Induction period will be short
* Cost effective and time saving for organization
* There will be only choices as limited applicants will be applying
* External applicant can be more competent than and qualified for the position
* Vacancy of the promoted employee need to be filled
Advantages & Disadvantages of External Recruitment
* Employee will bring new skills and ideas
* Employee will bring benefits of new experiences
* It will be costly and more time consuming
* New employee will take time to adjust
* Chances of selection of wrong kind of applicant
“Selection can be defined as the combination of processes that lead to the choice of one or more candidates over others for one or more jobs or roles.” (Edenborough R; 2005). It is like choosing and applicants on the basis of their skills, qualifications, experience and qualities required for the position applied.
Selection process involves:
1. Preliminary / Screening Interviews: Where all of those applicants are failed who are not competent enough for the job.
2. Application Blanks: Applicants who passed the first stage have to fill out these forms to fill out details like personal background, educational background, personal information, experiences, reason for leaving job.
3. Written Tests: Applicants have to pass aptitude test, personality test in order to move towards next interview process.
4. Employment Interviews: These are one to one interview between the applicant and employer. There should be honest and proper communication between them.
5. Medical Examination: Health and body check up are carried out to judge the chances of absenteeism of an applicant
There is difference between Recruitment and Selection. Recruitment is a positive process as it attract all candidates to apply and selection is a negative process as it eliminates the large number of undeserving candidates.
2.3 Performance Management
People are the organizations crucial part and they need the most and the best from their employees (Laura Ford, 2009). To get these best qualities managers have to constantly manage and try to improve their performance. According to Armstrong and Baron (1998), performance management is ‘a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the people who work in them and by increasing the capabilities of teams and individual contributors’.
Performance Management Cycle
Fig: 2.3.1 Performance Management Cycle
Performance management cycle states that it is a continuous process which starts from planning the performance (define expectations), monitoring the performance (managing performance over the year) and reviewing the performance (against set expectations) and than again formulate the plan on the basis of that review. (Armstrong, 2008)
Assessment is a standard process of collecting and evaluation information about a person’s characteristics and behavior. It focuses on job relevant behavior and skills through interviews, tests and work stimulations. Managers can predict a person’s performance for a given job. (Bikerland D; 1990). Employees strengths and needs are assessed in order to bring out the best from them.
Organizations faces very high employer turnover cost and there will be other costs like recruiting, training. To avoid these kind of situations employers should carry out assessment of the employees. To improve the productivity of an employee’s causing less turnover.
Assessment are important:
1) It helps to measure the current performance towards set goals and planned performance
2) It helps to derives the decisions on promotion.
3) It helps to derives training needs on the basis of what strengths and weakness employees have
4) It can also be used and a guidance
Performance Appraisal is a tool used for Assessment. In order to sustain the success of an organization it is very important to review the employees’ current performance and possible improvements in the future. Most organizations uses 360° performance appraisal as it considers all angels while giving feedback i.e. Customers, employers, Managers and Others. (C Vijaya Banu and P Umamaheswari, 2009)
Reward is the benefit which employees receive in return, working for an organization. Primarily, rewards was only limited to the wages or paychecks of an employee but in today’s date it has expanded greatly (Steven E; 2004). Rewards are not all about monetary benefits but it also includes the non-monetary benefits, which can be classified as extrinsic and intrinsic rewards. Extrinsic rewards are monetary like wages, salary, pension, employment benefits, health insurance, company car, house (Edmund H. & Noon M. 2001). Whereas, intrinsic rewards are non-monetary but linked with the values of an employee like more responsibilities, authority, job satisfaction, discretion (Allen and Lucero, 1997).
If employers provides work satisfaction to employees and keep them happy than employees will be more responsible towards their work and treat customers well, and happy customers means more business. Indirectly good rewards to employees will help in organizations development.
Rewards are normally linked with the individual performance of an employee but on the other hand it destroys the team work among employees due to dog-eat-dog culture ( Purcell J; 2006). Employees do not share knowledge where they have to work equally. According to Purcell J; 2006, appropriate HR policy needs to be set up so that merit of one will cancel benefit of another.
Essence Case study shows that the new chain of restaurant is dealing with the problems of human resources high turnover and the behavior of manager affecting the staff as well as working environment of a restaurant. Amie, manager of a restaurant, have got working style which was appropriate from both the customer’s as well as restaurant’s point of view because customers were happy with her service as well as providing success to the restaurant. But when it comes to staff, she was very inefficient in making the staff feel comfortable at work and give proper work environment. The reasons which supports the above sentence are firstly, she sacked two employees just because they refused to work ovetime. Secondly, Elke was trained by Hussain so that she can work in his absence but Amie also want Elke to leave the place, She was not dividing tip among the waiting staff and charging penalties for mistakes. Louie was visiting for Amie’s appraisal but she was not bothered about filling out the forms of Appraisal. She lacks in performance management, she was not rewarding or evening praising staff for the work they carried out. So, managerial issues which needs to be polished for the development of restaurant are proper selection of an employees, managing the performance and carry our performance appraisal, reward management should be carried out properly
Case study focuses on the problems faced by employees of an essence, as manager of the restaurant Amie was not efficient enough to provide healthy work environment. Things which needs to be considered to bring change into the current situation are:
> Amie fired two of the staff just because they were not ready to do overtime. Amie was biased as there were no any other valid reason for them to be fired. This create needs to search for a new employees and increase the cost as company have to follow the whole recruitment and selection procedures. Also it’s a risk that new employee will be able to cope up as per the requirements of a restaurant. Also this is a service oriented business, high turnover of staff will affect the overall business performance. There will be no more set level of customer service will be maintained. Apart from all these reason considering the legal parameters, under Tribunal Jurisdiction there is a law of Unfair dismissal, which the restaurant have to take care of while making decision
> Amie wants to fired Elke because as per Amie she was not giving good impression to the customers. Elke was working in the kitchen, which means she has never been in the direct contact of the customer. It is not necessary that she has to look bubby but still Amie was not happy with that. She knows that Hussain will be going for training and that the Elke is the only one who can prepare hussain’s signature dishes.
> Amie use to take out tips from waiting staff tip jar and even staff have to pay penalties for making any mistakes while working. For any organization to succeed and provide good customer service, it is very important that employees needs are properly taken care of. If employees get good work environment they will give same kind of service in return. As discussed in the literature, instrinsic reward is also crutial, job satisfaction should be provided to the staff.
> Amie also had cut down the pay of kitchen porter, so now the porter is not happy with kind of reward he gets for his work, which will directly affect in the performance. Keeping in mind the legal parameters, Under Tribunal Jurisdiction, Unlawful deduction of wages is against the law.
> Amie has to carry out with interview in order to select new staff and her views are that the skills are not required, nor the experience. She was also not going to train new recruits because she thinks it can be learn by watching. As per the literature states there is an continuous need of reviewing the performance in order to know the current skills and performance level of an employee and have to analyzed how it can be improved in the future. But according to Amie there is no need of any skills and training.
> Amie when joined the team of restaurant she had been given only one day training, she should have given more time understanding the work environment and even proper training and Assessment of how to perform her job in the future should be given.
To sum up, service driven industry are run by the people and for the people. For an organizations success and to develop a good customer service it is very crucial that people working there get good work environment so that in return they will provide same level of service. Amie though working really hard for the development of the restaurant, delivering good customer service was not proved to be a good employee because of her bad attitude towards the staff. This case study also states that how the human resource management different areas i.e. recruitment, selection, performance, assessment and reward are significant for any organizations development and success.
There are certain areas where essence needs to focus.
Firstly, to improve the attitude of Amie towards her staff. Louie should carry out proper assessment with Amie discussing the positive and negative effect of her behavior towards the staff and then provide idea on how she can take a next step in her performance. If Amie attitude will remain positive there are chances of less staff turnover and also good working atmosphere within the restaurant.
Secondly, carry out the appropriate recruitment and selection processes in order to fill the vacancy. Amie should consider selecting the candidates with some skills and experience as there will be very less time required to experience staff than non-experience ones.
Thirdly, Elke should not be dismissed from the restaurant as she is the only one Hussain has trained and know his signature dishes. Kitchen staff do not interact with customers so they need not have to be bubbly for working in a kitchen.
Lastly, Under the legal requirement there is a law of Unlawful deduction of wages. So porter wages should not be cut. Even tips of waiting staff should be divided among them.
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1 http://www.eatatessence.co.uk/index.html accessed on 26th February, 2010
Recruitment, Selection, Performance, Appraisal, Reward Student ID: 12189