Human Resource Management

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 Executive Summary

The report focuses on the recruitment & selection as well as reward systems of a car manufacturing company named international car co. This report has highlighted issues that are faced by the company briefly and it is divided into Task 1 and Task 2. Theories regarding recruitment and selection procedures such as the theory of hiring and equity theory have been mentioned in this report. In addition, some advantages and disadvantages of the recruitment and selection approach are discussed briefly in the study. Moreover, some reward strategies have been discussed in this report briefly. Theories regarding reward system such as AMO theory has been discussed as well as some recommendations have been provided in this report in order to improve the recruitment and selection strategy of this company.

1. Introduction

The aim of this study is to analyze the recruitment & selection procedure as well as reward systems of the International Car Co. human resource management is a procedure of managing the entire business to achieve better performance and goals of the company. Usually, human resource management includes recruiting, selecting, inducting employees, providing training and development, motivating employees, and others. In the context of this report, international car co. has a poor quality of recruitment and selection procedures as well as a poor reward system. Employees do not get rewards according to their work. Furthermore, the company has faced a high rate of employee turnover for a few months.

2. Analysis of issues

International car co. is an automobile manufacturing company and this company has expanded its business in the country Europe, North America, and Asia. Since 2019, this company has faced problems in production as well as, many faults are coming out in their vehicles. Therefore, they have faced decreased sales and profits in their business. In addition, this company has poor quality of management, and its management strategy is not updated after the year 1990. The recruitment procedures in the company are very informal. As per the suggestion of Michael (2019), they do not arrange any interview scheduled for selection and recruitment. Friendship with the senior manager, plant managers gets more predominant in recruitment procedure. Therefore, this company does not recruit employees on the basis of merit. As a result, the company has faced problems regarding management as well as complaints from customers.

Another problem of this company is that this company does not provide rewards according to the merits as well as opportunities for employees are very less. It is said as an example that the employees get rewards according to the relationship with managers not on the basis of merit and their work performance. It is assumed as a human resource manager this company has faced various types of issues regarding company management due to this problem.

3. Task 1: Recruitment and selection procedures

3.1 Theories

The theory of hiring

The theory of hiring is associated with identifying organizational employees by evaluating their developing job requirements and evaluating candidates’ eligibility. According to this theory, consideration of key skills, eligibility, and work experiences of the employees is important for organizational development (Leijdekkers, 2017).

Equity Theory

Equity Theory is associated with equal distribution of resources and providing equal opportunities to the employees within an organization. Consideration of this theory helps in avoiding workplace discrimination and contributing to continuous growth and development (Michael, 2019).

3.2 Advantages and disadvantages of recruitment and selection approach

There are various types of recruitment and selection approaches such as internal recruitment, external recruitment, and automation recruitment. Every different approach has different advantages as well as disadvantages. Some advantages and disadvantages are mentioned in this report.

3.2.1 Advantages of recruitment and selection approaches

The recruitment and selection procedure helps to choose the right employees according to the basis of merit. Therefore, the business strategy of the company will be improved as well as the growth and sustainability of the company will be developed. As per the suggestion of Delery and Roumpi (2017), recruitment and selection is the procedure of screening new talents in order to develop experience as well as skilful employees. Employee retention and employee morale are developed by recruitment and selection approaches.

A strong pool of applicants

A large number of qualified employees are engaged by the company with proper recruitment and selection approaches. As per the perspective of Kianto et al. (2017), there are many recruitment pathways such as advertising many social media, newspapers, company websites, job broads, broadcast media, and others that help the company to post job vacancies. As a result, the performance of international cars co. will be improved by recruitment and selection approaches.

Accurate screening

The recruitment and selection approach includes interviews, tests, applicants, and other mechanisms that help the company to assess all qualifications and experience of the employees. For example, a well-known manufacturing company, FORD can take the practical examination in recruitment procedure in order to understand employee’s experience (Pak et al. 2019).

Reduced turnover and employee morale

As the company can screen employees’ performance and personality in recruitment and selection approach, they say employees regarding work pressure in detail. Employees join this company knowing all working details and suitable culture makes employees happy. Therefore, employee retention rates, as well as employee morale, are improved (Sukawati et al. 2020).

Cost-expensive

Arranging a recruitment and selection procedure is very expensive as well as advertising on all website and job broads for the vacancy is also cost-expensive. Automation recruitment requires various tools and technology which are very expensive (Mousa and Othman, 2020).

Time-consuming

The recruitment and selection procedure is very time-consuming and approximately it is a long day process (Bisharat et al. 2017).

4. Task 2: Reward system

4.1 Rewards strategies that are used in advertisement

Rewards contribute to motivating all employees’ performances as well as employee motivation and reflections in organizational capabilities. Identification and development of appreciating rewards strategy are necessary for retaining the employees of ICC in order to ensure organizational growth and development. In addition, focusing on performance appraisal and financial rewards can contribute to improving the work engagement of the employees and increase organizational capabilities respectively. As opined by Papa et al. (2017), the adaptation of the rewards strategies by organizations played a significant role in managing their strategic dictions of improving services and product quality by motivating employees towards their jobs role, and responsibilities. Some rewards strategies that are used in the advertisements are mentioned in this study.

Compensations

Compensation is a great reward strategy that helps to motivate all employees in their work lives. Financial reward packages for non-commissioned employees motivate all employees as well as, performance bonuses and health insurance for all employees improves employee morale. For example, Bently, a renowned car manufacturing company, increases 3% in employee structure for those employees who have 90% attendance in order to improve employee motivation.

It has been recommended to implement this type of reward strategy that can help to improve employee motivation, as well as employee retention, can be developed (Mwita, 2019).

Time-off

Paid time-off plays an important role in order to motivate all employees of the organization. In addition, extra pay for extra work as well as paid for vacation week motivates employees along with the work performance of the employees. For example, it is said that Aston Martin celebrates the 5 years work anniversary for employees and provides surprise gifts for them. It helps to motivate all employees as well as the company is not faced problems regarding employee retention.

It has been suggested to the company to start this reward strategy which can help to survive all employee retention-related problems as soon as possible (Leijdekkers, 2017).

Recognition

Recognizing all employees helps to motivate all employees as well as, the work performances of the employees are upgraded. For example, it is said that Land Rover, a car manufacturing company, provides printed certificates, medals to employees according to their work performance.

It is recommended to ICC to start these recognition strategies in order to improve the performance of employees as well as the sustainability and growth of the company (Victor and Hoole, 2017).

4.2. Theories related to reward strategies

AMO theories

The AMO theories explain the relationship between managers and employees of the organization.  The AMO theory mainly suggests three components such as ability, motivation, opportunities in order to develop employees’ work performance.  As argued by Zaki et al. (2017), the organization also gets success by applying AMO theory. The employees become motivated by providing rewards by applying AMO theory. Implementing AMO theory helps to motivate all employees by giving rewards and opportunities.

This company needs to implement this theory that can help to improve reward strategies as well as employee motivation can also be developed by applying this theory. Several reward strategies such as flexible benefits for employees, proper communication with employees can be developed by applying this theory.

5. Recommendations

The company has faced many problems in its management and performance due to a lack of recruitment and selection procedures and reward systems. Some recommendations are mentioned in this study that helps to improve recruitment as well as reward systems.

  • It has been suggested to the company to prioritize customer’s experience that can help to recruit the right person for employees along with the popularity and performance of the company can be improved.
  • It has been recommended to implement group-based incentives for employees that can help to improve employee performance as well as, the production rate of the company can be raised.

6. Conclusion

From the above discussion, it can be concluded that for the management of organizational standards proper employee recruitment process and rewards system is necessary.  Adaptation of proper employee hiring strategy through considering ethical elements positively supports the management of brand image in the competitive edge. Moreover, the use of a proper rewards system helps in the process of retaining employees to achieve organizational corporate goals and objectives. The study has addressed brief issues, hiring elements, and rewards systems by discussing multiple associated elements. Organizational issues of management quality and standards of services or products have been discussed based on the case study of ICC. In addition, the hiring process and rewards system has a discussion by using multiple car manufacturing companies along with case study for understanding core principles.

References

Bisharat, H., Obeidat, B.Y., Alrowwad, A., Tarhini, A. and Mukattash, I., 2017. The effect of human resource management practices on organizational commitment in chain pharmacies in Jordan. International Journal of Business and Management12(1), pp.50-67.

Delery, J.E. and Roumpi, D., 2017. Strategic human resource management, human capital and competitive advantage: is the field going in circles?. Human Resource Management Journal27(1), pp.1-21.

Kianto, A., Sáenz, J. and Aramburu, N., 2017. Knowledge-based human resource management practices, intellectual capital and innovation. Journal of Business Research81, pp.11-20.

Leijdekkers, R.D., 2017. The Employee as Active Consumer of HRM: Explaining Consumer Behaviour Using the AMO Theory (Master’s thesis, University of Twente).

Michael, A., 2019. A handbook of human resource management practice.

Mousa, S.K. and Othman, M., 2020. The impact of green human resource management practices on sustainable performance in healthcare organisations: A conceptual framework. Journal of Cleaner Production243, p.118595.

Mwita, K.M., 2019. Conceptual Review of Green Human Resource Management Practices. East African Journal of Social and Applied Sciences (EAJ-SAS) Vol1.

Pak, K., Kooij, D.T., De Lange, A.H. and Van Veldhoven, M.J., 2019. Human Resource Management and the ability, motivation and opportunity to continue working: A review of quantitative studies. Human Resource Management Review29(3), pp.336-352.

Papa, A., Dezi, L., Gregori, G.L., Mueller, J. and Miglietta, N., 2018. Improving innovation performance through knowledge acquisition: the moderating role of employee retention and human resource management practices. Journal of Knowledge Management.

Sukawati, N.N., Gunawan, I., Ubaidillah, E., Maulina, S. and Santoso, F.B., 2020, November. Human Resources Management in Basic Education Schools. In 2nd Early Childhood and Primary Childhood Education (ECPE 2020) (pp. 292-299). Atlantis Press.

Victor, J. and Hoole, C., 2017. The influence of organisational rewards on workplace trust and work engagement. SA Journal of Human Resource Management15, p.14.

Zaki, N.A.B.M. and Norazman, I., 2019. The Relationship between Employee Motivation towards Green HRM Mediates by Green Employee Empowerment: A Systematic Review and Conceptual Analysis. Journal of Research in Psychology1(2), pp.6-9.

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