Human Resource Management At Lloyds Tsb

Human Resource Management At Lloyds Tsb In this report, I am presenting about the human resource planning and development method of LloydsTSB bank. It is a retail bank in United Kingdom. It was established in 1765 by Taylors and Lloyds in Birmingham. It has an great network of branches and atm machines in England and Wales and has 24 hour telephone and online banking service. Now a time it has more than 16 million personal customers. It offers a full range of banking and financial services. It has more than 2000 branches all around the UK .It has branches in different countries also such as America ,Australia ,china and many more. It deals with the availability of human resources and efficiency of the personal placement. The main purpose of hrm is to keep and create the balance between the firms goal and the interest of the employees. For any company, to be successful in all departments and functions must depend on one department which is key for all departments i.e. HRM. The HRM manages and controls everything in any department The functional areas of HRM:- 1-PLANNING-It is the process of receiving the human resource requirements to ensure that we have the required number of employees with the appropriate skills when they are needed. It concerns about that what are the objectives of the organization and the structure of the organization. 2-DEVELOPMENT-It is the major HRM function and it consists of:- a) Training b) Development c) Career planning d) Career development e) Performance appraisal 3-RECRUITMENT-It is the process of attracting the qualified and experienced candidates towards the organization and attract them to apply for job. The three main objectives in which Lloyds tsb bank deals are:- 1) STAFFING 2) COMPENSATION AND BENEFITS 3) TRAINING AND DEVELOPMENT (Mill ward et al. 1992, 2000) (HRM by prof.dr jutta rump) Q 1(B) Each activity of the HRM has its own objective and importance. The main objective is to fulfil the goals of the organization and work for achieving its targets by recruiting, selection and providing training etc. [1]OBJECTIVES OF RECRUITMENT It is the process of attracting qualified individuals towards the job and encouraging them to apply for work. There are two sources of recruitment INTERNAL RECRUITMENT This type of recruitment can be done within the employees of the organization Methods of internal recruitment are:- (1)Job posting-It is a procedure for informing the employees that a job opening exists (2)Job bidding-It is a technique that permits employees who believe that they processes the required qualifications to apply for a posted job b) EXTERNAL RECRUITMENT This recruitment should be done from outside the organization. SOURCES OF EXTERNAL RECRUITMENT Advertising:-This is the easiest way to do the recruitment. In this recruitment should be done by giving ads on the newspapers and by pamphaleting etc Job fairs:-By job Fairs Company can recruit thousands of employees at a time. In job fairs different MNCs come together at a same time to recruit different persons for different posts. Internships-This type of recruitment should be done during the internship of the students Employee referrals:-This is also the easiest way to do the recruitment; in this candidates should be selected for the interviews on the reference of their friends who worked already with the organization. Private and public employment agencies-some public and private agencies have some contracts with some organizations and they take commissions from the companies for the recruitment of candidates. Internet-This is the best way to do the recruitment. In this recruitment the organizations put their recruitment forms on their websites along with their eligibility criteria, so those persons who fulfil the criteria should filled that forms and send to the organizations. Lloyds tsb bank has a multi-tier recruitment system. The multi-tier recruitment system means the recruitment of people for the different types of posts for the different categories, forexample jobs for the account opening department, sales manager, operation department, cashier etc LLOYDS TSB BANK recruits persons by both internal and external sources. In internal sources they recruit persons from the same bank by giving them promotions to the high posts and in the external sources they recruit by advertising in the local newspaper, through private and public employment agencies, job fairs, employee referrals, internships ,by event recruiting .They can also recruit people through internet. (www.mangement paradise.com) (lloydsTSB.com) [2]TRAINING AND DEVELOPMENT The training is designed to provide learner with knowledge and skills needed for their present job and development involves the learning that goes beyond todays job with the help of development to understand the change been done in the organization. The main purpose of the training and development is to develop the skills and attitude in the candidate to fulfil the task. The need of training should be known by analysing the performance of the candidates by taking their tests ,by giving them projects ,by checking their past work done .With this it can be easily calculated that in which section they are weak and what sort of training should be helpful for them. METHODS OF TRAINING 1 TRAINING ON THE JOB a) Learning by experience-In this training candidates use to learn something day by day by their experience. B) Internship-This is the most important type of training, in this training should be given to the candidates before the joining of the job. c) Team work-This is the easiest way to give training. In this training should be given together to a group of persons and they can share their own ideas, knowledge and experience with each other d)job rotation-This training should be given to those persons who either get promoted to the higher level or those who get shifted from one place to another within the same organization. e) Computer based training-Now as we all knows computer has become the necessity for todays life; no work can be done in any of the organization without it. In this training should be given regarding the basics of the computer to almost everybody in an organization. f) Web based training 2 TRAINING OF THE JOB a) Simulators b) Workgroups c) Quality circle d) Classroom programs (HRM by prof.dr jutta rump) Lloyds bank also gave different types of training to different candidates according to their job profile. -they provide training on subjects like strategy and management to their managers -provide computer related training to their operational department because they have to perform the work on the computers -they provide web training to their candidates who will help them in future in making their websites and in internet banking -they also provide customer service and sales training to their sales department who interact with the different people and sell them the products -they provide security guard training to their employees [3] Compensation and benefits It is the total of all rewards which employee can get in reward for their services Types:- 1) Direct financial compensation:-it is in the form of money which he or she receives in the form of wages, salary, bonus and commission 2) Indirect financial compensation:-all financial rewards which are not included in the direct financial compensation like insurance, bonus and commission. 3) Non financial:-it consists of satisfaction that a person receives from like good working environment. 4) Lloyds tsb bank also give good compensation and rewards to its employees to get the work done more efficiently and effectively that company gets more profit and market share. Lloyds motivates the employees by giving them bonuses, performance appraisals etc. (lloydsTSB.com) Q1(C) C) HRM MODELS A number of models have been designed to illustrate appropriate HR policies. Major ones are: 1) Matching models or Michigan model Fombrun et als (1984) highlights the resource aspect of HRM and efficient utilization of people to meet organizational objectives. This model has less humanistic edge, holding HR as other resources to be obtained cheaply, used sparingly, developed and exploited as fully as possible. This model suggests that HR system and organisation should be managed in congruency to organizational strategies and reveals a cycle comprising of four generic stages namely selection, appraisal, rewards, and development. However, with reference to the firm in consideration this model is not very significant as is not in alignment to the HR policies practiced in Lloyds Banking Group. Although, the sequence of steps observed in the firm are more or less similar but the unitary thought that this model reveals which is purely prescriptive and not analytical, without considering the changing situations does not represent the policies practiced by Lloyds Banking Group. 2) Harvard Framework This mode shows considerable amount of similarity to the policies and practices followed in Lloyds Banking Group as it stresses the human aspect of HRM and is more concerned with the employer employee relationship. It recognizes the influences of situational factors on HRM policy choices. The model defines four policy areas as HR flows, reward systems, employee influence and work systems The model is highly significant as far as Lloyds Banking Group is concerned as it readily complies with the company rules in achieving objectives. LBG run policies which are usually in par with external and internal environments. Also major planning activities are also designed so as to encourage two way dialogues and to foster better working relationships across the group. (Fombrun et al (1984) Task 2 HR Planning and Development Q2(A) Human resource planning is the process of systematically reviewing human resource requirements to ensure that the required number of employees with the required skills is available when and where they are needed. Human resource planning includes the four factors 1) Quantity-how many employees do we need? 2) Quality-which skills, knowledge and abilities do we need? 3) Space-where do we need the employees? 4) time-when do we need the employees? How long do we need them? Human resource development is the process of development of knowledge, skills and experience in the worker. It consists not only training and development but also individual career planning, performance appraisals and career development. Recruitment is the process of attracting individuals in time, in limited numbers and with appropriate qualification and encouraging them to apply for jobs. Selection is the process of choosing the right person from a group of different persons. The recruitment in the Lloyds tsb bank is mainly done in 2 types:- INTERNAL EXTERNAL In internal recruitment, Lloyds recruit people from the bank by giving them promotions or by moving them from one post to another. In external recruitment Lloyds recruit the fresh graduates by the following ways:- 1) In the step 1 candidate has to go through the website of the Lloyds bank and download the recruitment form from the website and then posted that to the address given in the website along with the grades in the graduation. 2) In the next step those guys who fulfil the eligibility criteria have to give an aptitude test which is just to check the intelligence level of the candidate. 3) In this only limited persons are reached and they have to gone through a group discussion part. 4) In the next steps the selected persons are seeded for the training process according to their relevant job Training of employees- Training is an effective method of building skills and increasing knowledge in workers .Lloyds tsb bank provides two type of training to their workers depend upon their job profile 1) Training on the job 2) Training off the job In training on the job the training like web based, computer based, and job rotation should be given In training off the job the training should be given by providing case studies, video tapes, video conferencing, classroom programs and simulators Lloyds tsb bank gives training in two places -lean sigma academy -ash ridge management college They have their own corporate university where they are giving training on long term courses like strategic management and business management. Lloyds also provide training regarding the security to their workers so that they can protect the premises from the unwanted people. Compensation and benefits It is a total of all rewards which employees get in return for their services. Lloyds tsb bank provides both financial and non financial compensation to their employees. The financial compensation is of two types:- 1) Direct compensation-In this Lloyds tsb bank gives compensation to their workers in the form of wages, salaries, commissions and bonuses. 2) Indirect compensation-In this Lloyds tsb bank gives compensation to their workers in the form of insurance ,health benefits, pension insurance fund and retirement plans The non financial compensation consists of the satisfaction that a person receives from the job itself or from the physiological or physical environment in which he works. (www.mangement paradise.com) (HRM by prof.dr jutta rump) Q2(B) The above three methods perform a great role in achieving the objectives of the organization. The main objective of the Lloyds tsb bank is to become the best bank of the United Kingdom. This can be done by recruiting the cream candidates from the society, by giving them good training regarding their jobs and by giving good wages and promotions to the workers so they can feel motivated and work hard. All of the above three process has a great importance in an organization .We will discuss them one by one:- Recruitment and selections:-The recruitment and selection is the best method to achieve the objectives of the organization. The candidates who pass all the stages of the recruitment are the cream out of all of the candidates which means they are different from others in all perspectives and they have a greater knowledge which will definitely help any of organization or bank to reach on the top. Selection means the choosing a right person for a suitable job from a group of applicants. Lloyds tsb bank recruits the candidates who have good knowledge about their job and who are experienced .It saves their time and money for giving them training. By recruitment any organization can come to know about the following points -what is suitable trade for the candidate i.e. finance, retail and marketing etc -whether the person is suitable for the job or not. Training and learning-Training is a very important part of any organization which helps in gaining knowledge and development of skills in the candidate. Every organization knows the importance of the training. The Lloyds tsb bank got greater benefits from the past years due to the hard work of the workers. For example the customers of Lloyds tsb bank has been increasing from the last many years this is due to its good service and good knowledge of the sales team and workers working in the organization .They got the power of attracting and have good knowledge of different types of accounts and products from the training process. Training should help any of the workers of the organization to fulfil its targets given to him by using his or her knowledge. Due to better training and hard work 500 customer advisors of the bank got the most responsible lender of year award. (lloydsTSB.com) Compensation and benefits-Lloyds tsb always give good compensation and benefits to their workers in the form of bonuses, insurance, health benefits etc. The Lloyds bank give good salaries to their workers so that they can perform their task in the more better way. It also provides a very good option of pension insurances which motivates all the workers to work hard till their pension. This kind of activity boosts the morale of workers and makes them motivate. The rewards and reorganization encourages worker to work more efficiently. These activities increase the faith and responsibility towards organization. Task 3 Performance Q3(a) Performance measure is the process where an organization establishes the parameters in which programs, investments and acquisition can reach their goals. It is also a method to calculate the performance of individuals working in the organization by taking the feedback and reviews of other workers, managers and supervisors. This is the way to checkout that how a worker is using his or her skills to achieve the objective of the organization. The performance management creates the culture in which the organizational and individual learning are a learning process. It measures on the basis of workers, past experience, knowledge and skills. By using the following measures the performance of an individual can be measured easily:- 1) Balanced scorecard 2) Peer appraisal 3) Top down appraisal 4) Bottom up appraisal 5)360 degree appraisal 6) Self appraisal (1)360 degree appraisal-It is a very important method which is also known as multidirectional method. In this a team of best 6-8 members of the organization has been selected to calculate the performance of the other workers. This is measured on behalf of the behaviour of the employee with the other workers and with the managers of the organization. In this method an application form is been provided to every worker to fill the information and then they submit the form to their managers and the managers made a report on the behalf of that form and measures the performance of the individual worker and feedback should be given to every worker that what are their weak areas on which they have to work hard and training should also be provided to the workers on their weak areas. 2)Top down appraisal-In this the upper manager calculates the performance of the workers and the low level mangers on the basis of their performance and behaviour and past records. Then they give the feedback to them and appropriate actions should be taken on the behalf of their feedbacks. 3) Bottom up appraisal-In this the workers and the low level manager of the organization gives their feedbacks about their seniors and managers. 4) Peer appraisal-This is the easiest method to calculate the performance. In this one colleague checks the performance of the other worker and gives the feedback. 5) Balanced scorecard approach-This technique is used by the Lloyds bank to measure the performance of the employee. It checks whether every worker is fulfilling or working to get the objective of the organization It has 4 perspectives:- a) Financial perspective-It measures the finance of the organization. It deals with the profit and loss and increase in sales of the organization. b) Business related perspective:-It takes care of the business of the organization that who are the partners and who are the rivalries of the organization. It also deals with the business process like sales service and human resources. C) Customers:-it deals with the customers linked with the organization regarding the fulfilment of the goals, queries and complaints. The main objective is to complete the task before time and to give discounts to them. d) Internal learning and innovation:-this is the most important perspective. It deals with giving training to the workers on their weak areas and by providing them innovative ideas which helps them in achieving the goal. (http://humanresources.about.com/od/360feedback/a/360feedback_3.htm) (www.mangement paradise.com) All the companies do the monitoring of the performance but without effective monitoring any organization achieve the actual goal or results. The effective monitoring is important because:- 1 It increases the awareness and relevance of the core competencies. 2It reinforces the desired competencies of the business. 3It gives the employees the key development area which helps them in increasing the productiveness and achievement of the goal. 4 It gives a more reliable feedback to senior managers so that they can work to achieve the goal. The method adopted is effective because of the following reasons:- 1 After the good feedback the workers feels motivated and work hard to achieve the goal of the organization and motivates other employees also to perform the tasks. 2It improves the integrity between employees because of alignment of objectives in one direction. 3As the form is filled after some interval so it gives the information about the performance of the employees to the organization 4With this every employee should know if they will not perform well, they will either send to training again or will be fired. Improvement needed in methods Even though the Lloyds tsb bank is doing well and acting effectively on the performance monitoring, but also there is need for the further development and improvement in order to make the system more effective which can make this as a competitive advantage in the business. For some of the employees the regular audit of balance score card is just a administrative work. It is the responsibility of top management to tell them the importance of balance score card. There is a need for improving the speed of actions to be taken after the feedback Top management should be properly committed with the fulfilment of balance score card approach. There should not be any kind of gap and delay in checking the performance By reducing the complexities in the feedback questionnaires, which helps in easy process of completing the questionnaires so the monitoring levels also become more standard and can produce accurate results. Conclusion: The human resource department is the back bone of every organization because it helps in allocating human resources to other departments. The planning and development are the key issues of hrm which helps in maintaining demand and supply of man power, measuring performance and training of employees. The processes suggested above in the reports are the most efficient method of planning and development