Resourcing and supporting organisation growth
Over resent decades, a number of studies have shown a positive relationship between high efficiency human resource management (HRM) policies and practices, and organisational performance (Heynes & Fryer, 2000:240). HRM is therefore seemed to be the major factor to differentiate between success and failure of the organisations in today’s world. This because it involves in how to manage people who work for the company, and whose roles’ performance as well as quality could eventually achieve organisation’s aims and objectives. There are many aspects in HRM, including resourcing, performance and developing, and so on (Torrington, Hall & Taylor, 2008). Resourcing is one of the main factor in HRM that consist of planning, recruiting, inducting and bringing a new staff up to the standard of a fully effective worker (Dawson, 1989:28). This essay will focus on the resourcing which includes issues involve in the recruitment. It also contains the case study of Tesco regarding its resourcing strategies which show how such aspects can help the organisation’s growth.
The concept of HRM
It is not easy to define the concept for “Human Resource Management” as there are two different ways to perceive: personnel management (PM) and HRM (Torrington, Hall & Taylor, 2008:6). However, its overview idea is the approach to manage the people who work for the organisation and are related to the success of the business. The firms are also able to gains the competitive advantage by using its people efficiently and effectively in their skills and competencies. Human resources are different from the other resources which work for the organisation because people have thought, emotions, feelings, aspirations and needs, and they have those thing individually as well. Hence, HRM relates to the way in which the organisation interact with its people; for instance, recruiting the suitable people for right positions, providing training and development opportunities, and so on (The Time 100, 2005).
The concept of resourcing
Although there are many aspects in HRM, the first main activity of human resource department is to search and bring people who are needed in order for business to be successful. These people could be the employees and also people outside the company such as consultants or subcontractors. Nevertheless, no matter which type of their work the working relationship between the business and them is the employment contract which EntrepreneurÂ® (2009) defines as ‘An agreement entered into between an employer and an employee at the time the employee is hired that outlines the exact nature of their business relationship, specifically what compensation the employee will receive in exchange for specific work performed’. What is more, once the organisation recruits its people, they have to be in the series of activity such as motivation, training, developing and regular feedback that could maintain or improve their performance as well as loyalty to the company (Torrington, Hall & Taylor, 2008:106). Other keys factor of resourcing process including HR planning, recruitment and selection. These are also able to provide the management to have a way to acquire new skills and improve the organisational cultures (Marchington & Wilkinson, 2007:157).
External Recruitment VS Internal Promotion
There are two ways for organisation to employ its new staffs whether search for the talent available on the external labour market or to invest within the company to develop existing staffs to fill in the new position (Torrington, Hall & Taylor, 2008). These choices have their own advantages and disadvantages which the HR specialists have to analyse and decide before the recruitment.
Internal recruitment is less expensive than external one because the company has no need to spend its revenue on the job advertisements or recruitment agencies. The organisation can also ensure that the candidates are familiar with its regulations, environment and culture. In addition, it can act as one of the motivational tools in the organisation strategies to encourage its staff performance as well. On the other hand, the drawback of home grown method is a limited number of candidates in order for the HR manager to choose and it can demotivate some failed candidates when the outside ones are chosen instead.
The other type is external recruitment. Although it is more expensive, there is a wide range of candidate and this is able to provide the creation of a diverse workforce (Ibid). Outsiders might also possess specific skills, abilities or characteristics that suit the firm needs (Chen, 2005). In contrast, this way of recruitment drops the promotion opportunities of the insiders and thus adversely affects their incentives (Ibid).
As there are pros and cons for both methods, the organisation should therefore consider some factors such as the economy and labour market before setting its recruitment policies. A company could also use either or both ways. However, it should be concerned with the suitable approach that fair enough for all candidates, giving sincere, honest, accuracy and helpful feedback to unsuccessful candidates as an important part of the process.
Since the world has become globalisation, the Internet was used increasingly for recruitment among the companies worldwide. It provides the effective channel to attract the job-seekers faster and more up-to-date than the traditional ways. There are two basis form of Internet recruitment: employers’ own website and cyber-agencies (Torrington, Hall & Taylor, 2008). The companies which have their own website could create the career part for the candidates gain both spending less money and time to the right person. However, the agencies allocate the service that supports the HR people to concentrate on the other aspects and have a wider way to reach the candidates. Consequently, the organisation should be concerned not only use the traditional way of recruitment, but also applies the e-recruitment as a technology to support its development.
Tesco, the biggest private sector employer in the UK, has employed more than 360,000 employees worldwide and it is continually growing every year (The Time 100, 2005). The way to support Tesco to handle the adequate resourcing of the suitable workforce to serve its widen market might be the efficient and effective resourcing strategies. There are three main factors in Tesco resourcing: workforce planning, attracting and recruitment, and selection.
Firstly, the workforce planning is the process for analysing the company concerned with the need of workforce in terms of numbers, skills and locations. Tesco uses a workforce planning table to create the approximate demand for new staff. This table allows Tesco flexibility and sufficient time to meet its staff demands and lead the business to achieve its strategic objectives; for example, to open new stores and maintain customer service standards. Another important element is to have clear job descriptions and person specifications. Job description defines what it want people to do in this role while person specification describes the qualification of people in required position. Tesco uses both to help job applicants and post-holders to know what is expected from them.
Secondly, Tesco applies both internal staff development and external recruitment methods to fill its vacancies. It is concerned about the staff motivation and uses its practises called ‘talent planning’ to encourage their internal employees through an annual appraisal scheme. This could therefore lead them to apply for higher position. Furthermore, Tesco avoid the demonization among the staffs who fail the promotion as it provides the privilege such as the longer preparation time. On the other hand, for external recruitment, Tesco invest in advertises vacancies via its website or through vacancy boards in stores. The short lists have an interview followed by some processes at an assessment centre.
Lastly, the selection process involves choosing the most suitable candidate from those who apply for a position by keeping the employment laws and regulations. According to figure 1, Tesco also use screening to filter candidates to ensure that those selected for interview have the best fit with the job requirements. An assessment centre is the next step for the candidates and it take place in store and is run by managers. Consequently, an interview is the last step in the process.
To summarise, Tesco is an enterprise with many job opportunities from the frontline staff to high level manager. Tesco therefore needs to encourage its growth and development with the right people, skills and behaviours. It shows the organisational structures clearly, and provides obvious job descriptions and person specifications to create easy ways of applying for jobs. These could eventually lead Tesco to have its efficient approach for recruitment and selection, and support its changing demand for employee.
Figure 1 The process Tesco uses to select external management candidates has several stages. (source: The Time 100 (2005), Recruitment and selection at Tesco. Retrieved November 01, 2009, from http://www.thetimes100.co.uk/additional/download.php?cID=99&csID=357&fID=906.php)
Tesco case study could demonstrate how resourcing helps the organisation to reach its need of staffs in the right place, with the right skills at the right time. Furthermore, it might be a useful example for another company to analyse and apply to their strategies.
Recruitment topic contains the important issues comprise internal and external recruitment, and e-recruitment. These could provide the benefits and drawbacks as well as a variety of channel for recruitment.
Resourcing is crucial for a business needs to meet its staff demands and match the position with the right people, and also maintain such valuable workforce. The company should analyse its structure and synergise the factors including workforce planning, recruitment and selection, and so on to set the organisation resourcing strategy. This could result in the efficient and effective resourcing as part of the human resource management.