International Human Resource Management At Iceland Business Essay

International Human Resource Management At Iceland Business EssayCurrent backing changes have also lead to difference in viewpoint and opinion of strategists who now believe that HRM and Personnel management be two completely polar scenarios where HRM is a broader concept in the first place responsible for managing a large number of manpower for efficient pruneings of the menage. On the contrary Personnel management is more inclined towards supervision and judicatory related to payroll and legal scenarios of grok employment.Looking at the working environment of Iceland and other food companies, the difference amidst personnel management and t lay offer-hearted picks is quite piss. In the sense that, Human resource management of Iceland encompasses and promotes personnel management tasks and also develops and groom the workforce for advanceing maximum efficiency and improving the working of the organization. As personnel management is reactive, human resource managemen t is proactive, involving a holistic approach to continuous development of employee adroitnesss to handle personnel related tasks and activitiesA major difference between the two lies in the fact that personnel management is responsible for employee satisfaction which is realized through incentives , bonuses, takingss etc whereas HRM coiffure in the firm works on the ground that enhanced work of employees through challenging work, pedigree creativity etc leads to employee satisfaction.HR Specialists Role and ResponsibilitiesHR specialists are quite potent and have a unique role in managing the human workforce of the firm. Iceland too recognizes the importance of a HR specialist who is mainly responsible to attain and extract the maximum emf and capacity through the firms human workforce.They are regard in functions of staffing, training and development, labor sexual congresss etc. on the alone a HR strategists role can be categorized under three main heads, the strategic ferment, the legal aspects and the operational aspects (Carolyn W, 1992).Under strategic process, HR specialists are involved inStrategic groomingThey perform the role of a consultant who advices the management in all key areasA pathologist who identifies the assorted loopholes and recommends necessary action for the sameinnovator/change agent who implements the dynamic changes in the corporate practices of the firmA catalyst who triggers the positive areas of businessA cost manager who minimizes cost and maximizes returns.Under legal process, HR specialist performs the role ofAuditor/controller who assesses the unions personnel policies and strategiesA consultant who advices the community on personnel matters and issues related to employment laws and other areasA conciliator who acts as a peace maker and negotiator for resolving conflicts and issues arising between different employees and existing workforce (Carolyn W, 1992).From operational perspective, HR specialistDeals with handling daily operations much(prenominal) as staffing, compensation, appraisal, rewards etcInterface between employees and management regarding the framing of employee policies and procedures set up and motivating employees (Carolyn W, 1992).1.3 Line Managers are Responsible to Manage People at WorkLine managers have a special role to play in managing mess as they reside in the lower layers of management hierarchy and deal with people who have no obligation or any shed light on of managerial responsibility (Hutchinson S HYPERLINK http//www.cipd.co.uk/re take care/_bringpolstosp repairliness.htmHYPERLINK http//www.cipd.co.uk/research/_bringpolstolife.htm Purcell J, 2003). Line managers execute a critical role in implementing HR policies and strategies. Their role revolves aroundManaging people effectivelyMinimizing operational be to maximum possible extentExtending and forwarding technical advice and guidanceAssigning work and allocating tasksContinuous monitoring and supervisi ng workDetect errors and take prompt corrective actionsHandling nodes effectivelySetting standards for measuring operational death penalty of the firmWhen it comes to managing people effectively, line managers perform life-sustaining functions much(prenominal) asPerformance appraisal of employeesImparting training and counselling to advanced recruits and existing workforceMaintaining proper communication and employee involvementMaintaining work life balance etcGiving due recognition to employees (HYPERLINK http//www.cipd.co.uk/research/_bringpolstolife.htmHutchinson S HYPERLINK http//www.cipd.co.uk/research/_bringpolstolife.htmHYPERLINK http//www.cipd.co.uk/research/_bringpolstolife.htm Purcell J, 2003)Thus well managed front line managers help in trail high productive and high performing workforce. It is the organizations and senior management responsibility to promote and support capable and efficient line managers by clearly outline their role and responsibility.RECRUITMEN T AND SELECTION PROCESSHuman Resource Planning Process in IcelandIceland being one of the renowned frozen food gyves depends a lot on the human resource department which is well managed through s authoritative human resources planning process that helps in anticipating the end results of the applied business strategy in regard to the firm human resources. The HR planning also involves the need of involve workforce with special skill and competencies to perform the necessary tasks and activities.The Iceland human resource planning process involves the sideline stepsAnalyzing the already existing organizational plansSecondly to forecast the demand of the join headcounts gestated in the firmThen forecasting the supply, that is obtaining data about current human resource present in the market and hereafter changesFourthly, the boodle human resource requirements are finalized considering all the departments of the firmAfter which, the deployments, retrenchments etc are interprete d into consideration and future demand is plannedIn case future deficits are confronted, reference plans are also chalked out.Lastly, the plan to modify and adjust the organizational plan in accordance with the market changes is also taken into account. abridgmentAfter analyzing the human resource planning process of Iceland Company, it can be deducted that the information system regarding human resources is still inadequate. The internal deficiencies are well accounted for nevertheless the external market changes are not acknowledged such as the labour market, the current trends in human resources etc are not well vary into the human resource system. Thus, the global perspective needs to be included in the entire process for giving the procedure a holistic view.The stages involved in the planning process in Iceland consist of2.2 Link Between Human Resource Planning and Organization Structured Process.The human resource planning of the firm has a deep impact on the structure of th e organization, the needed information and the three stages including strategic, intermediate and operational levels of the planning process in various forms which involveOrganizations work purification is affected if things are taken in a casual and unsystematic manner such as a outstrip is created between the key decision makers and the workforce, secondly senior management no more remains trustworthy, reduces the contribution from the workforce in terms of creativity, risk taking, new talent is reluctant to be a part of the confederation, the image of the alliance is hindered, infact the entire process is impeded.The human resource succession planning is affected which whitethorn further lead to improper promotions or demotions, team evaluation, inappropriate performance reviews leads to hindered employee development etc.The operation costs are intensely affected by human resource decisions such as high turn everyplace cost, replacement cost, slack duration , hampered motiva tion, restructuring of employee cost, health cost , increase in insurance costs etcUltimately the workforce is affected which in turnhas an impact on the organizations working and performance such as reduced productivity, sub standard customer service step etc.2.3 Interview Selection Technique EvaluationMost of the organizations depend mainly on the interview technique to select the required workforce. Iceland is also one of them where potential candidates are screened and selected by conducting various interviews at different stages of filling process. Iceland is now the only food retailer recognized among the improve(p) 25 companies of UK having more than 200 stores running in different countries. Such wide network requires huge labour that is selected after conducting various interviews such asPreliminary interviewCore interviewDecision Making InterviewVarious levels of interviewing help the organization to extract the best talent from the market as the initial rounds help to better general interaction with the candidate and judge his suitability for the gambol. Many candidates who are not suitable for the organization and its work culture are eliminated right in the beginning of the process that saves a considerable amount of time and cost to the company.Selection by Invitation one of the methods of selection could be inviting the key executives of competitors by constantly observing their performance and offering them attractive incentives and benefits. Such technique helps in saving tremendous cost and time to the company and attracting the best and experienced candidates.Leasing Company may benefit by leasing that is employee expert and depute the employees to the needy companies on a lease basis. In regard to which the leasing company charges a reasonable amount. Such kind of activity helps the organization to utilize the resources in the best best manner and select candidates as and when required without very much hassles.360 Selection Programm e Involvement of subordinates, employees working at the same level of business concern are better in determining the skills, knowledge and performance of potential candidates as they are accustomed and tuned to the specific job environment. A 360 appraisal is the best fit between the job and the candidate and at the same time lessens the burden of the superior administrators as well.Thus the supra procedure and techniques can help Iceland to put into practice a rigorous and dynamic selection process for attracting the best talent within the organization.The core interviewing is conducted for potential candidates where major emphasis lie on stress interview and probing technique as the candidates are required to deal with customers of various nature and temperament. Depth interviews are also considered where special skills of candidates are examined by judging critical answers to posed uncertaintys. Such cut exercise helps in taste the mental capacity of individual to handle stre ss and intense situations. The candidates behaviour during the interview process is a good criteria to settle his reasoning and analytical abilities.Finally the decision making or the final interview is conducted whereby the top authorities or managers examine the interest level of the candidates for the job and find about his acceptance and decide whether to select the candidate or not.Icelands interviewing process is rigorous and in-depth which eliminates the changes of wrong decisions and adding extra cost to the company. Various aspects of interviewing are taken into account which renders the entire process a structured approach. The company is able to select the best pool of talent through its own skills and capabilities.Alternative methods of selectionSelection by Invitation one of the methods of selection could be inviting the key executives of competitors by constantly observing their performance and offering them attractive incentives and benefits. Such technique helps in saving tremendous cost and time to the company and attracting the best and experienced candidates.Leasing Company may benefit by leasing that is employee expert and depute the employees to the needy companies on a lease basis. In regard to which the leasing company charges a reasonable amount. Such kind of activity helps the organization to utilize the resources in the best optimum manner and select candidates as and when required without much hassles.360 Selection Programme Involvement of subordinates, employees working at the same level of job are better in determining the skills, knowledge and performance of potential candidates as they are accustomed and tuned to the specific job environment. A 360 appraisal is the best fit between the job and the candidate and at the same time lessens the burden of the superior administrators as well.Thus the above procedure and techniques can help Iceland to put into practice a rigorous and dynamic selection process for attracting the best tal ent within the organization.2.4 Recruitment and Selection Process of IcelandIceland is regarded to be one of the highest rated among the big companies to learn the best talent available and provide complete staff satisfaction like pay and benefits. The practices and procedures follow in the selection process by the company are best taking into perspective the legal framework as well. The recruitment and selection procedures of the firm comply with the IPCCs diversity policy which includes the requirement of the following actsThe Sex Discrimination Act, 1975The Race Relation Act, (1976, 2003)The disability Discrimination Act, 1995The Employment Equality(Sexual Orientation) Regulation, 2003The Employment Equality (Religion or Belief) Regulation, 2003 (IPCC, retrieved on 17th September, 2010)All interviews are conducted by authorized panel who design competency establish questions. Proper pre and post arrangements for interviews are made and decisions for appointment are based on the content, qualification, performance and the right to work norms in the UK (IPCC, retrieved on 17HYPERLINK http//docs.google.com/viewer?a=vq=cacheZzAuwNGdp24Jwww.ipcc.gov.uk/foi/agreed_recruitment_and_selection_policy-4.pdf+legal+requirements+of+selection+in+UKhlthHYPERLINK http//docs.google.com/viewer?a=vq=cacheZzAuwNGdp24Jwww.ipcc.gov.uk/foi/agreed_recruitment_and_selection_policy-4.pdf+legal+requirements+of+selection+in+UKhl September, 2010). Proper reference and security checks and clearances are made. Iceland follows complete legal norms to select candidates, hence no major discrepancies are found in the selection procedure.PRINCIPLES AND PROCEDURES FOR observe AND REWARDING EMPLOYEES3.1 Iceland Job Evaluation ProcessJob evaluation is conducted in the firm in order to rank the jobs on the basis of certain duties, responsibilities and performance attached with the job. In accordance to which the pay package is designed and defined keeping the minimum and maximum limits intact.I nformation about every job instance is retrieved through the medium of job analysis questionnaire, job descriptions, observations and interviews involving 360 selection processes. Based on the above information, each job is rated based on evaluation factors which hold back ofEducationExperience (Technical and Commercial)Problem SolvingImpactPhysical EffortExecutive abilityAnalytical skillsComplexity of jobIceland makes use of both the Non numerical techniques as well the Quantitative Techniques of job evaluation such as the Ranking Methods including paired comparison, simple ranking, points rating method as well.The virtue motivational theory is applicable in Iceland also where the pertain managers should consider the balance between the input and resulting rewards taking into consideration the input factors such as loyalty, diligence, ability, skill, enthusiasm, support, patience, sincerity, trust, relation with superior etc , backed by reward or output in form of financial a nd no financial rewards such as net increase, increase job responsibility, recognition, appreciation , plain monetary benefits, job security etc (Baxamusa N B, retrieved on 17HYPERLINK http//www.buzzle.com/articles/equity-theory-of-motivation.htmlthHYPERLINK http//www.buzzle.com/articles/equity-theory-of-motivation.html September, 2010).The equity theory works best when the over recognized and benefitted employees are able to produce high output and quality service and on the contrary the less rewarded employees tend to decrease their output when they compare themselves with other employees.It becomes the result responsibility of the managers to link the rewards with the performance and efficiency of the employee. For this pursuant(predicate) development programmes, regular meetings, and discussions can be undertaken to communicate with employees and make things more clear for better understanding and fairly link reward with performance.Such kind of evaluation process is logic al and objective in nature as it helps to include the newly created job in the pre existing structure of the firm. The undesirable factors of evaluation are eliminated such as fluctuations in market rate etc and help to attain fair wage and uniformity in fixing wages for all employees. Maximum employee satisfaction is realized by maintaining wage equity and sound evaluation structure.3.2 Reward remainsThere are different reward systems that can be linked to the organizational compensation packages offered by Iceland to boost up the morale and productivity of employees (Stockley D. 2006)HYPERLINK http//www.google.co.in/search?hl=enq=Motivation+and+financial+and+non-.Monetary Reward SystemPayment for unproductive work in form ofHours of workPaid holidaysPaid vacations security of employeesRetrenchment compensationLay off CompensationSafety and HealthWorkmens CompensationHealth realisesWelfare Recreational FacilitiesCanteen goodHousing BenefitLegal AidHoliday HomesEducational Benefi tTransportation benefitOld Age and Retirement BenefitsProvident FundInsuranceGratuity aesculapian benefitsNon Monetary RewardTreatsFree MealsFestival bashesDinnersKnick KnacksAccessoriesPlannersRecognitionLetters of appreciationPlaquesSocial AcknowledgementInformal RecognitionSolicitation of adviceMembershipsOn the Job BenefitEnhanced responsibilityJob rotationTrainingSpecial tasksAll the above rewards in some form or the other have a deep impact on the performance of employees asPositive ImpactEmployees are motivated to work to the best of their potentialBuild self think about and confidenceIncreased loyaltyEasy acceptance to changeClose bondage between company and selfNegative ImpactDemotivational impact on employees under conditions of biasnessShort sightednessUnhealthy competition3.3 Motivation Theory and Icelands Reward SystemIcelands reward system could be directly linked to the Adams Equity Theory of Motivation which believes that the factors of motivation can affect the per formance of employees and their relationship with the employer as well (Baxamusa N B, retrieved on 17HYPERLINK http//www.buzzle.com/articles/equity-theory-of-motivation.htmlthHYPERLINK http//www.buzzle.com/articles/equity-theory-of-motivation.html September, 2010). The theory is based on the look that if the employees inputs are more in comparison to the benefits or rewards derived, it can lead to employee dissatisfaction and reduced productivity.The Equity motivational theory is applicable in Iceland also where the concerned managers should consider the balance between the input and resulting rewards taking into consideration the input factors such as loyalty, diligence, ability, skill, enthusiasm, support, patience, sincerity, trust, relation with superior etc , backed by reward or output in form of financial and no financial rewards such as wage increase, increased job responsibility, recognition, appreciation , tangible monetary benefits, job security etc (Baxamusa N B, retriev ed on 17HYPERLINK http//www.buzzle.com/articles/equity-theory-of-motivation.htmlthHYPERLINK http//www.buzzle.com/articles/equity-theory-of-motivation.html September, 2010).The equity theory works best when the over recognized and benefitted employees are able to produce higher output and quality service and on the contrary the less rewarded employees tend to decrease their output when they compare themselves with other employees.It becomes the utmost responsibility of the managers to link the rewards with the performance and efficiency of the employee. For this consistent development programmes, regular meetings, and discussions can be undertaken to communicate with employees and make things more clear for better understanding and fairly link reward with performance.3.4 Iceland Monitoring dodgeIceland has a well planned strategy to monitor the performance of employees that includesReviewing work of employees on a consistent basisRegularly observing the activities of employees and gu iding them when requirePreparing charts, records and using techniques for measuring performanceEncouraging self reporting by employeesTimely redressal of complaints and issues for uninterrupted performanceThe latest methods of performance monitoring are adopted by the company such as the Balanced Scorecard method that involves a holistic approach of monitoring by taking into various perspectives such as customer perspective, financial perspective, training and development perspective and innovative aspect as well.After defining the various factors on which the performance is analyze such as efficiency, growth, training, development, productivity, behaviour, relations, creativity and innovation at work etc, methods such as Gantt chart is prepared this is a pictorial description of employees performance.Thus, a world-wide performance analysis is conducted by Iceland which helps to depict a fair view of efforts put in by candidates.The Equity motivational theory is applicable in Icela nd also where the concerned managers should consider the balance between the input and resulting rewards taking into consideration the input factors such as loyalty, diligence, ability, skill, enthusiasm, support, patience, sincerity, trust, relation with superior etc , backed by reward or output in form of financial and no financial rewards such as wage increase, increased job responsibility, recognition, appreciation , tangible monetary benefits, job security etc (Baxamusa N B, retrieved on 17HYPERLINK http//www.buzzle.com/articles/equity-theory-of-motivation.htmlthHYPERLINK http//www.buzzle.com/articles/equity-theory-of-motivation.html September, 2010).The equity theory works best when the over recognized and benefitted employees are able to produce higher output and quality service and on the contrary the less rewarded employees tend to decrease their output when they compare themselves with other employees.It becomes the utmost responsibility of the managers to link the rewards with the performance and efficiency of the employee. For this consistent development programmes, regular meetings, and discussions can be undertaken to communicate with employees and make things more clear for better understanding and fairly link reward with performance.The Equity motivational theory is applicable in Iceland also where the concerned managers should consider the balance between the input and resulting rewards taking into consideration the input factors such as loyalty, diligence, ability, skill, enthusiasm, support, patience, sincerity, trust, relation with superior etc , backed by reward or output in form of financial and no financial rewards such as wage increase, increased job responsibility, recognition, appreciation , tangible monetary benefits, job security etc (Baxamusa N B, retrieved on 17HYPERLINK http//www.buzzle.com/articles/equity-theory-of-motivation.htmlthHYPERLINK http//www.buzzle.com/articles/equity-theory-of-motivation.html September, 2010).The equi ty theory works best when the over recognized and benefitted employees are able to produce higher output and quality service and on the contrary the less rewarded employees tend to decrease their output when they compare themselves with other employees.It becomes the utmost responsibility of the managers to link the rewards with the performance and efficiency of the employee. For this consistent development programmes, regular meetings, and discussions can be undertaken to communicate with employees and make things more clear for better understanding and fairly link reward with performance.4. EXIT FROM THE ORGANIZATION4.1 Employee exit procedure in IcelandOn the contrary, when the exit procedure of Iceland was compared with ASDA it was found that the above procedure was quite similar to ASDA, however ASDA adopts an in-depth interview procedure with extra steps such as analysis of exit interview, reasons for absenteeism, Work Interview, analysis of labour turnover, comprehensive Exit Interview Data analysis judging the company benefits provided etcAnalysisThe organizations have drafted suitable exit procedures in order to determine the reasons for employee exits, nonetheless they cant be termed as best. They are scope for improvement and modification as little emphasis is laid on the employee background and his contribution towards the organization. A fair view can be extracted only when organizational inputs and employee outputs are compared. Thus while studying about the exit analysis, managers should also emphasize on the employee relations with the firm and subordinates. On the whole, the procedure adopted is satisfactory and solves the purpose for the same.Employee RedundancyRedundancy is a situation when the organization , Iceland for this case decides to dismiss an employee on the basis of ceased business or intended to cease the area of business where the concerned dismiss employee was employed. For the redundancy to actually be called legal, it is nec essary that the employee under question must completely vanish.If the organization declares any candidate redundant, it is liable to pay the necessary statutory payment in regard to it.Iceland has adopted certain criterias for declaring an employee redundant, they areDismissal cant be on grounds of individual capability but organizational circumstancesWhen certain specific designations are no hourlong required in the company along with reasons for decease or reduction in business processIn the course of a business heavy downWhen a specific business line is altogether eliminated from the organizations business portfolioIf the employees who are to be redundant are more than twenty, then the matter is to be put forward for consultation with the employees representative before making a final decisionReasons for selecting few employees from the group for redundancyThe selection criteria is not based on any unfair means such as race, age, sex or any disabilityConclusionIceland has been able to formulate a systematic and well organized human resource management policy and strategy in the organization, keeping into consideration all the details right from human resource planning to redundancy. Their recruitment and selection criteria are as per the norms of the UK government and in accordance with the legal requirements as well. The company aims to impart maximum employee satisfaction in all respects.