11.07.2019 in Exploratory

Human Resource Management Essay


Human resource management (HRM) allows balancing the interests of employees, employers, and an organisation in general. It helps to specify the basic principles applicable to employees and adjust them to the local conditions. The current paper examines a number of relevant aspects of HRM. First, it explains the current role of HRM and the HR manager. Second, the analysis of ShakeAway’s growth strategy will be examined. Third, the optimal approaches to motivation within an organisation will be examined. Finally, employee exit processes within ShakeAway will be provided. It will be demonstrated that motivational theories and rewards are closely interrelated.

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The role of HRM and the HR Manager

1.1 It is necessary to specify the differences between personnel management and HRM. Although both of them focus on the similar area of investigation, they are not identical. Personnel management primarily refers to administrative functions used to adjust employees’ responsibilities to organization’s needs. HRM aims at maximising employees’ performance and reaching key organisational objectives. The main difference refers to the way of organising various activities. Personnel management examines this issue from an administrative point of view. The functions of an organisation are viewed as hiring and motivating employees in accordance with the job contract (Caliskan, 2010). This approach is mostly formal rather than creative. HRM considers human capital as a valuable asset that should be dealt accordingly. It advocates various creative solutions that address specific needs of a given employee. HRM believes that the interests of employees and employers may be effectively harmonised (Sani, 2012). As a result, the synergic effect may occur. 1.2. It is reasonable to specify the functions of HRM in such organisations as ShakeAway. The first function is HR planning as all measures in this sphere should be well-planned and balanced. The second one is recruitment. ShakeAway should try to select the most appropriate employees who may generate the highest benefits for the company in the long run. The third one is safety as HR specialists should guarantee the highest safety standards for all employees regardless of their location. The fourth one is ensuring the optimal employee relations (Sani, 2012). The organisation should not regulate all spheres of employees’ communication with each other (especially informal aspects). However, the general positive environment should be created. The fifth one is the system of compensation and bonuses. All employees should understand that their remuneration directly depends on their contribution to the ultimate results of the organisation. If they demonstrate higher results that the average level, they will receive corresponding bonuses. Thus, each employee has almost unlimited opportunities for his/her professional development. The sixth one is compliance. All labour laws and regulations should be precisely followed (Sani, 2012). The seventh one is training and development of all employees. ShakeAway should demonstrate that it is ready to invest in its employees to maximise their social capital and the company’s performance. 1.3. It is necessary to specify the necessary responsibilities of the line managers in ShakeAway. Their main responsibility is implementing HR responsibilities on a daily basis. They organise the management of employees and specify their current needs. The line managers may also determine the main current problems. If they represent considerable threats, it is necessary to report them to HR managers of higher level. The line managers of ShakeAway should concentrate on their daily interactions with employees. Other functions should be delegated to other specialists. Although recruitment is provided by the line managers in some small business, ShakeAway should organise this work through its recruiters in order to ensure higher results and responsibility.

ShakeAway’s Expansion Strategy

2.1. HR planning is important for many reasons. First, it allows harmonising inter-temporal organisational processes. In particular, the organisation adjusts its current HR strategy to its future production and marketing needs. Second, HR planning presents a systematic response to constantly changing economic and social conditions. As the external business environment is unstable, these changes are correspondingly incorporated into the company’s strategy through HR planning. Third, HR planning enables recruiting and developing the most talented employees. It cannot be organised spontaneously and requires additional planning efforts. Fourth, HR planning contributes to the optimal allocation of all available resources. As HR managers appraise the expected productivity of a given employee, they can make more rational decisions. As a result, the wages of all employees will correspond to their marginal productivity. Fifth, the level of uncertainty may be reduced. It is impossible to eliminate uncertainty from business processes, but HR planning can make the changes more predictable and generate additional benefits for the organisation. As it is always oriented on the future period, some tendencies are always successfully predicted and anticipated. Consequently, all other departments can make more correct decisions and appraisements. 

2.2. It is reasonable to present stages of HR planning. The first one is assessing human resources. HR managers should objectively determine the main strengths and weaknesses of the existing workforce (Hawkins, Mothersbaugh, & Best, 2007). The second one is demand forecasting. ShakeAway should assess the demand for its products and correspondingly change its demand for personnel. Moreover, it should be adjusted in relation to various regions of operations as different countries and regions demonstrate different patterns of development. The third one is supply forecasting. It includes both the supply of competitors’ products and of the workforce. In this way, ShakeAway may determine whether it is reasonable to change the number of employees at the present moment. The fourth one is balancing supply and demand. As supply and demand typically change in different directions and with different rates, they should be harmonised. On the one hand, ShakeAway should contribute to the maximum possible satisfaction of its clients. On the other hand, the company should try to maximise its capitalisation and profitability. The final one is the development and implementation of the precise action plan. All HR activities should be presented, and their budget should be specified. This information may be delivered to all departments and the company’s top managers.

2.3. ShakeAway has a different system of recruitment in comparison with such large corporations as Barclays. ShakeAway presents an opportunity to fill the online application form (ShakeAway, 2014). Then, HR specialists evaluate all candidates and select the most appropriate ones. The entire process is not associated with high time expenses. HR specialists also review the operations and functioning of all new employees for a certain period of time. If their performance meets the company’s expectation, they receive additional career opportunities. Otherwise, additional trainings and courses may be organised. Barclays implements a more formal recruiting process. It requires additional efforts from a potential candidate. The company verifies his/her qualification through a number of tests and interviews. As the potential expenses associated with selecting an inappropriate candidate are very high, the entire process is time-consuming. HR specialists also evaluate the performance of new employees, but they are highly responsible for their performance and try to minimise corresponding risks (Barclays, 2014). Thus, both companies optimise their performance differently. However, both strategies seem to be effective as companies operate in a different environment. ShakeAway tries to economise time, select the most talented candidates and provide additional trainings if it is necessary. Barclays tries to minimise risks and implements a more comprehensive recruitment procedures. Both strategies correspond to the companies’ environment and strategic objectives.

Motivation and Performance

3.1. Motivational theories and rewards are closely interrelated. In fact, motivational theories present the general principles that determine the subsequent rewards of all employees. Various theories present different criteria for determining the optimal level of rewards. ShakeAway relies on McGuire’s motivational theory (Hawkins, Mothersbaugh, & Best, 2007). It recognises two modes of motivation: cognitive and emotional. The company’s HR specialists determine the most relevant type for a given employee and develop corresponding motivational strategies. 3.2 The process of job evaluation directly influences the level of financial remuneration. The job evaluation is organised from a number of perspectives. First, the managers of a higher level examine the performance of employees (Wall & Wood, 2005). Second, each employee has a plan that should be fulfilled. It also demonstrates the effectiveness of a given employee in comparison with other members of an organisation. Third, self-control is encouraged in ShakeAway. When the productivity of a given employee is assessed, he/she receives corresponding financial remuneration. 3.3. The most widespread reward systems are as follows. The first one is pay-for-performance. Some fraction of employee’s pay is uncertain due to the expected performance of other members and a company in general. It is not highly effective for ShakeAway as the company tries to minimise the level of uncertainty and risks. The second one is bonus programs. In this case, a person may receive bonuses if his/her results exceed the minimum or average requirements. It may be useful for ShakeAway as the company needs to motivate its most productive employees. The third one is profit sharing. The company may distribute some fraction of its profits to employees in this way. The fourth one is stock options. As it is efficient for large corporations, ShakeAway should not participate in such practices at the current moment. 3.4. Different methods may be used for monitoring employee performance. The first group is quantitative methods. They examine the attained quantity and compare it with the target level. The second one is qualitative methods. They appraise the quality of products and services. It is possible to compare it with the normative level and with other companies from the same industry. The third one is cost effectiveness (Wall & Wood, 2005). It is especially important for any commercial company. ShakeAway should try to optimise its cost structure and ensure the highest possible level of profitability. The fourth one is creativity and market potential. The company should orient on the future period and maximise its market potential.

Employee Exit Processes

4.1. Although almost all companies aim at long-term employment relations with their employees, in some cases, employment may be terminated. Employees may resign or an organisation can make such a decision. ShakeAway tries to minimise the number of such cases as its recruiting and selection process is thoroughly developed. However, if a given employee demonstrates low productivity and does not meet the company’s requirements, ShakeAway may consider different options. In the beginning, additional trainings and courses may be introduced. If they do not allow reaching the desirable level, the company has to terminate its cooperation with such employees (Strandberg, 2009). If employees do not meet ethical or legal requirements, they may be fined, or their employment may be terminated. Barclays Bank use similar criteria. Moreover, it may realise employee exit processes even during shorter periods of time as its losses are directly associated with the qualification of employees and their integration into the entire organisational structure (Lengnick-Hall et al, 2009). In general, all organisations have to implement employee exist procedures if their marginal productivity is lower than their wages. 4.2. SkakeAway and Barclays Bank use similar employee exit procedures. If SkakeAway considers that there is no better alternative, it introduces an exit interview. It is developed in a way that is applicable to the cases of both voluntary and involuntary termination. The company provides a list of the most widespread reasons of voluntary and involuntary termination. There is also an option “Other” where an employee may specify his/her reason if it is different from the existing alternatives. Both an employee and an interviewer may leave their comments. Finally, the company has developed a questionnaire that specifies specific reasons for leaving. Barclays Bank implements a similar procedure. However, it is even more formalistic and complex. An exit interview is also organised. Barclays Bank and other large corporations mostly rely on questionnaires when an employee has to select the most appropriate answer. In this way, large corporations evaluate employees’ answers in a systematic way. They determine the dominant tendencies and risks. The entire analysis is organised with the use of various computer technologies. Large corporations may extrapolate the existing tendencies and determine the most plausible state of affairs in the future. Thus, employee exit procedures are similar in both cases, but larger corporations orient on more formal methods and new computer technologies. 4.3. The impact of the legal and regulatory requirements on HRM and employee termination arrangements is substantial. In the 21st century, companies have some responsibilities before employees even after the period of employment. Therefore, all legal responsibilities should be incorporated in their exit procedures. It includes the recognition and protection of all employees’ rights related to financial and other aspects. These legal requirements are especially important for SkakeAway as it operates in different countries. As the legal framework may vary, it is necessary to specify these differences and adjust the company’s HR strategy accordingly. In any case, SkakeAway should respect the rights of all its employees and try to organise its functioning in a mutually beneficial way. It is reasonable to specify all details in contracts for avoiding the sources of misunderstanding. If any disputes arise, the legal requirements of a given country should be viewed as a basis for determining the optimal solution. It may be expected that the role of legal issues in the operations of companies will tend to increase in the near future.


Human resource management presents a large number of tools for ensuring the highest level of flexibility and competitiveness in the long run. The role of HRM in the 21st century is very high because the human capital is the main source of the company’s market potential. HRM implements a more realistic and comprehensive approach in comparison with a personnel management. ShakeAway demonstrates that HRM fulfils several crucial organisational functions primarily related to balancing the company’s needs from an inter-temporary dimension. It also helps to reduce the average level of uncertainty and make more realistic and precise appraisements of the future state of business affairs. ShakeAway’s expansion strategy may be successfully realised only with the help of HRM. ShakeAway implements a different approach to finding the optimal HR strategy in comparison with larger corporations such as Barclays Bank. ShakeAway implements a very flexible strategy and offers numerous training opportunities for its potential employees. Motivational theories and rewards are closely interrelated, but various theories propose different criteria for the valuation of employees’ performance. ShakeAway uses McGuire’s motivational theory. In some cases, employment may be terminated. The company may initiate this option if a given employee demonstrates unsatisfactory low productivity. Large corporations implement more formal methods for the evaluation and analysis of the existing tendencies. The legal framework is also significant especially for companies operating at the international level.

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