The main purpose of this task is to explain and analyze the effectiveness of recruitment and selection process in Virgin Media Company. The firm offers mobile telephone, internet, and television services to the customers across the world. It is the largest international cable corporation in the global world. It depicts that how HR executive uses human resource theories to meet its long-term mission and vision. Apart from this, porter five forces model has been explained in the paper which helps to overcome the competitors in the global world. In addition, advantages and disadvantages of human resource management have been shown in the task. Moreover, it discusses little about the business operations of the firm and also explains about the human resource management style that helps to attract more candidates in the organization.
Virgin Media plc is a British corporation that offers television, fixed and mobile telephone and broadband internet services to consumers and businesses in the United Kingdom. The firm was founded in 2006 with its headquartered is located in Hook, Hampshire, United Kingdom. The organization operates and manages its own fiber-optic cable network in the United Kingdom. The firm is trying to make a digital world that makes good things happen for the communities and customers in which they operate. The company launched the first virtual mobile network in the world. It is one of the largest fixed home phone providers in the Ireland and UK. The company is the part of liberty global plc, the world biggest international cable corporation (Virginmedia, 2017). The main aim of the company is to provide effective and dynamic telecom services with maintaining sustainability in the organization. The company uses effective and attractive strategies to achieve vision and mission of the firm. Virgin Media employs approx 14,004 employees within the organization. Apart from this, the organization uses effective and unique promotional and advertisement strategies to attract more and more customers across the world (Scott, 2015).
Human resource management styles are the principles and values that underline the abilities, methods, approaches which managers utilize in managing and controlling situation and expressing leadership in the firm. The HR management style is well built and effective differentiator for Virgin media. The HR management style is attractive and unique to ambiguous and creative workers (Boxall and Purcell, 2011). The style of HR management and leadership may be explained in the human resource strategy and has to be permitted and approved by the managers and top management within the organization. The differentiation of the HR style has to be associated with the differentiation of the whole business and trade strategy. The effective and dynamic organization must not initiate different management and competitive HR style. The firm has to choose right and appropriate HR strategy to carry out the trading activities effectively and successfully. The human resource management styles have been stated below (Bratton and Gold, 2012).
Differentiation HR strategy: The differentiation strategy is the most effective and dynamic HR strategy for the innovative and creative employees. Virgin media uses this style to communicate and collaborate with people in the global market. The firm makes procedures, policies, and processes differently. It initiates new strategies, approaches and policies and it does not handle costs of HR procedures in a deeply (Armstrong, 2011). The company does not provide information about its domestic practices. It is difficult to say that HR management is called the creative organization. It is about the management and administration of the chaos. The human resource professionals have to set the specific vision and loose HR tactics and plans to absorb and adopt quick changes. In this way, this style is useful and effective to accomplish goals and objectives of the firm (Marchington, Wilkinson, Donnelly, and Kynighou, 2016).
Cost management focused HR Strategy: The cost management focused HR strategy is quite different from differentiation HR strategy. The HR procedures and approaches encourage and underline the stability of the firm. The significant HR processes and procedures are strictly controlled and handled by the hierarchy of top management. The cost management focused HR strategy is closely connected with industry standards. Along with this, Virgin media can take competitive advantages by using this style within the organization. The HRM management style is monitored on designing processes and policies which can efficintly and easily operate in the secure environment. Furthermore, the organization is ready to face and handle various challenges and risks of the market. Natural fluctuation is one of the significant resources of the cost management (Jackson, Schuler, and Jiang, 2014).
HR strategy with the focus on key elements: This strategy is used by HR managers to increase sales and properity of the Virgin Media. It also helps to beat the rivalries in the global world. The firm uses this strategy to maintain the stability of the workers and to maintain a favorable working environment in the organization (Bamberger, Biron and Meshoulam, 2014).
Recruitment is a primary and core function of human resource management. It is the first and important step of appointment. Recruitment may be defined as a process of attracting, selecting, shortlisting and appointing suitable candidates for jobs either permanent or temporary within an organization (Daley, 2012). In contrast, the selection is the process of interviewing and examining skilled and capable applicants for a specific job and selecting a candidate for job based on specific criteria. Recruitment and selection are significant function of the human resource department that helps to attain desired vission and mission of the association (Buller, and McEvoy, 2012). Virgin media uses the effective and attractive selection process to attract more candidates and to increase the productivity of the firm. By selecting the best and potential candidate for the required job, the company will get quality of performance and productivity (Brewster and Mayrhofer, 2012). Virgin Media uses dynamic and unique techniques for recruiting the best employees. Workers are the most significant assets of any organization. Good and potential can help to grow the business, and foster amazing culture. There are several techniques for recruiting the best employees that have been discussed below.
Apart from this, the company uses the effective and unique selection process to retain more candidates in the organization (Madera, 2012). The selection process consists of eight steps that have been discussed below.
Initial screening: Generally, the recruitment and selection process starts with the primary screening of candidates so that unprofessional and incompetent employees leave the job at the initial stage. This stage is helpful to save the time, efforts and outlay of the organization. In this stage, general and important questions are asked from the candidates. There are chances that some applicants would be incompetent for the employment but some of them would be capable and competent for doing the job. Therefore, the main aim of screening of applicants is to eliminate the number of candidates available in the selection process (Aswathappa, 2013).
Completing the application form: It is the second stage of selection process in which candidates are asked to fulfill the organization’s submission form. There are several information given in this application form such as applicant’s name, telephone number, and address.
Employment tests: The physical and mental abilities, skills, knowledge, personal attributes and other aspects of behavior can be successfully and efficiently analyzed through the employment tests. For this purpose, there are various types of assessment that can evaluate and measure the different phases of human behavior. The main advantage of employment tests in the selection process is that it can identify and evaluate the competent and potential candidates from a wide range of applicants for the job. The several tests include cognitive aptitude tests, work sample tests, job knowledge tests, personality tests and vocational interest tests (Berman et al, 2012).
Job interviews: In this stage, the applicant and interviewer exchange information in order to attain goals and objectives through conservation. The employment interviews are conducted by managers and top management to judge and indentify the skills and knowledge of the candidates. A job profile must be formulated on the basis of job report before conducting the interview. There are several types of interviews used by the company such as structured interview, unstructured interview, and mixed interview.
Background checks: The background of the candidate is verified and confirmed through several references and former manager. Along with this, the criminal records, educational and legal status to work are checked and confirmed. Personal information of the candidate are contacted to ensure the correctness and validity of the provided information. Efforts are done by HR executives to know and understand the past activities of the employees to that the future actions and activities can be estimated from it.
Conditional job offer: After checking the background of the employees, a job offer is provided to the workers. It is one of most significant steps of the selection process. It helps to make effective and dynamic decisions in the organization. The candidate that best meets the needs and demands of the employment, he is selected to do job effectively. Thus, conditional job letter is given which should be followed by medical exam (Weekley and Ployhart, 2013).
Medical exam: It is the significant step of the selection process in which the medical/physical examination of the selected applicant is conducted. The medical exam of the applicant is necessary to check and examine either applicant is suitable for employment or not. If the candidate passes the exam, he will be finally selected for the job.
Final selection decision: It is the final stage of selection process. In this stage, the final offer letter for the job is issued to the candidate by the relative department (Harzing and Pinnington, 2010).
Now it is assumed that Virgin Media Company uses the above-mentioned selection process to improve and enhance performance and productivity of the firm. Apart from this, the company also uses some selection strategies to hire the workers within the organization that has been stated below.
Multistage selection strategies: A multistage selection strategy is used by the firm to engage employees in the organization. The human resource executive is liable for evaluating each and every appraisal tool and ensuring that it is legally connected to the needs and requirements of the open position. This strategy is paired with either compensatory or conjunctive strategy.
Conjunctive strategy: HR professional uses a conjunctive model to manage and administer several types of evaluation tools and techniques in several stages. If an individual does badly on a primary assessment and evaluation, then he is eliminated from the group of candidates. If the firm uses this strategy, evaluation and assessment tools should be ordered carefully so that an applicant is not eliminated based on less significant criteria that one is assessed later in the procedure. The main advantage of this strategy is that it is less expensive compared to the compensatory strategy.
Compensatory selection strategy: Virgin media uses this strategy to make effective selection process worldwide. In this strategy, an applicant is not eliminated on basis of results and outcomes of a single evaluation tool and technique. In this way, this strategy is effective and unique to select the people in the organization (Thunnissen, Boselie, and Fruytier, 2013).
Virgin media also uses enormous types of theories to gain competitive advantages and to overcome the competitors in the global market (Stahl, Björkman and Morris, 2012). The human resource management theories have been discussed below.
Resource-based view approach: This approach focuses on internal sources of the organization. It is the principal element for a sustainable rivalry benifit. The value brought by human resource professional is the primary factor of this approach where flexibility is utilized in order to minimize costs and maximize efficiency. RBV is a managerial framework used to determine and evaluate the strategic resources with the potential to render comparative benifits to a firm. These resources can be utilized by the company in order to attain sustainable competitive advantages. This theory helps to understand and evaluate the conditions and circumstances under which human resources become a valuable, scarce and organization-specific (Nath, Nachiappan, and Ramanathan, 2010)
Best fit approach: HRM uses this strategy to attain optimal vertical fit with the maintaining sustainability in Virgin media and environment as well. This approach depicts the relationship between strategic human resource management and human resource management. It helps to keep in mind the needs and requirements of the organization. Best fit practice helps to gain competitive advantages in the global world. This theory is unique and effective to attain desired goals and objectives of the firm. Best fit system indicates a high margin of confidence regarding pay as a motivator. In this way, this theory plays a vital role to accomplish the mission and vision of the company (Boselie, 2010).
Motivational theory: It is a significant theory to encourage the employees for doing work effectively and efficiently. It is one of the most important elements that help to enhance and maximize the revenue and profitability of Virgin media. The company uses this theory to increase the number of people in the organization. It also helps to achieve and improve the high level of performance and productivity. There are several motivational theories are used by the company to maximize the outcomes and results of the firm. The theories include cognitive evaluation theory, Alderfer’s ERG theory, expectancy theory, Maslow theory and Herzberg two factor theory (Elliot, Dweck and Yeager, 2017).
Contingency theory: This theory states that human resource management strategies and practices are dependent on the organization’s circumstances and environment. This theory claims that there is no specific way to originate and organize an association to make effective and dynamic decisions. This theory is dependent on the external and internal situation. This theory helps to maintain flexibility and transparency in the organization. By using this theory, a potential and capable person can become a leader in the organization. In this way, various advantages are gained by using enormous types of human resource management theories in an organization (Kim, Song and Jones, 2011).
Human capital theory: This theory focuses whether how employees in an organization contribute their skills, abilities, and knowledge to enhance and improve organizational capability. The human capital theory uses employee’s skills, knowledge and experience to increase and enhance the economic values and belief. Also, it will help to attain outcomes of the firm with more effectively and efficiently.
System theory: It is an alternative theory for understanding, examining, handling and planning organization. It helps to maintain discipline within the organization. Furthermore, it maintains favorable relationship between employer and employee.
Porter five forces analysis is a significant model to analyze and evaluate strengths and weaknesses of the competitors. It also helps to identify and measure the plans, policies, and strategies of the competitors in the world (Campbell, Edgar and Stonehouse, 2011). The porter five forces model for Virgin media has been stated below.
Entry barriers: Entry barrier is a most effective factor in the telecom industry. This barrier is determined by the high cost of the fixed assets. These costs include operating cost of the network, cost of establishing the network and infrastructural cost. The firm has spent billions of pounds for fiber cable network required within the organization. The telecom industry is a tremendously rivalry market where key market leaders try to attain more profits through sales volume. High cost for advertisement and promotion is one of the significant factors that influence the success and growth of the firm. It also focuses on the services of the telecom industry. Furthermore, the firm needs to monitors on the activities and operations of the competitors. It will help to reduce and eliminate the number of new rivalries in the telecommunication industry (Lefever, 2012).
Rivalry determinates: Due to the presence of effective market players such as BT and SKY, there is immense competition in the telecom sector. It also increases expectations, requirements, and needs of the customers in the global market. The firm differentiates the products and services from the competitors to attract more consumers in the market. For this purpose, the company is reducing and minimizing the prices of services and products to attract more customers in the global world. The competitors maintain a strong position in the market that affects the overall profitability of the Virgin Media. Sky network renders premium television services and content to the customers. Therefore, Virgin media needs to focus on the plans and policies of the rivalries to increase the number of customers in the global world. High switching cost is another issue for the organization because it makes difficult for Virgin Media Company to maximize its market share (Simon, 2012).
Supplier power: To attain cost leadership advantage, the company needs to really control supplier power. It is one of the significant elements of economies of scale. The suppliers demand higher prices for rendering the services in the competitive market. If the company is not met the demand of the suppliers then they refuse to work with the organization. Thus, it affects goodwill and position of the firm in the market.
Threats of substitutes: There are several players in the market such as Sky and BT in the bundled service market and Vodafone and O2 in individual service market segment. All the companies render similar services and products at competitive prices. Hence, it is quite difficult for new customers to select a service in the global market. The choices may be based on either current needs, requirements or instantaneously. In this way, it is difficult for the company to render its services in the market. Thus, a threat of substitute is the biggest issue in the organization (Nikolaos and Evangelia, 2012).
Buyer power: The telecom industry such as Vodafone and Virgin media try to minimize its churn rate. Therefore, the customers enjoy a greater and higher degree of bargaining power. Service providers render discount and cheaper rate to ensure that they do not lose the customers. The organization may be forced to renegotiate deals with the consumers to reduce risks and challenges in the market.
In this way, porter five forces analysis provides information about the internal environment of the business. It helps to gain competitive benefits in the international market. Furthermore, the firm is developing innovative strategies to create value for the customers. Porter five forces model suggests that Virgin Media can either differentiate their services and products by managing lowest delivered cost or differentiating their products offered by the company. Apart from this, the firm also uses SWOT analysis and Pestle analysis to evaluate and know the opportunities and weaknesses of the competitors across the world (E. Dobbs, 2014).
Human resource management is considered the backbone of each and every organization. The success and growth of the each and every company depend on the sustainable human resource management. HR executive maintains coordination and cooperation among the different department to carry out the business smoothly (Tooksoon, 2011). Several functions are performed by HR professional to run trading activities successfully and effectively. It also helps to develop and build favorable working environment in the marketplace. The advantages and disadvantages of human resource management have been discussed below (Scullion and Collings, 2011).
Advantages
Disadvantages
Conclusion
On the mentioned study, it has been analyzed that human resource management is essential and significant part of each and every organization. The paper explains the recruitment and selection strategies of Virgin Media Company which is one of the biggest telecom industries and has acquired a good position in the global market. The company uses several types of human resource management styles to attract more applicants in the market. Apart from this, dynamic and unique human resource theories are being used by the organization to make a good financial position worldwide. Porter five forces analysis is done to sustain competitive benefits in the global market. Along with this, the significance of human resource management has been explained in the paper. Now it is recommended that Virgin Media should maintain sustainable human resource management to conduct business activities and operations effectively and efficiently. HR professionals must use unique and dynamic recruitment and selection strategies to enlist capable and talented employees within the organization.
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