Purpose and Functions of HRM

HUMAN RESOURCE
MANAGEMENT

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Contents
INTRODUCTION....................................................................................................... 1
LO1......................................................................................................................... 1
Purpose and functions of HRM.................................................................................... 1
Strengths and weakness of different approaches to recruitment and selection...........................3
LO2......................................................................................................................... 4
Benefits of different HRM practices................................................................................. 4
Effectiveness of different HRM practices.......................................................................5
LO3......................................................................................................................... 6
Importance of employee relation.................................................................................. 6
Key elements of employment legislation........................................................................7
LO4......................................................................................................................... 8
Application of HRM practices..................................................................................... 8
Conclusion................................................................................................................ 9
References................................................................................................................ 9

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INTRODUCTION
Human Resource is one of the most essential resource pools within the organisation. This is
because resource pool allows companies to utilise all their other resources in an appropriate
manner. Since the challenges in the industries are increasing hence it has become critical for
the managers to ensure that they have best of talents within their firm that can enhance the
overall effectiveness of the organisation. There are different purpose and functions of the
HRM and they need to ensure that they have effective workforce resourcing and planning
(Noe, et al 2017). Company select different approaches to recruitment and selection and
every approach have their own set of strengths and weaknesses. For both employee and
employer, HRM practices provide different kinds of benefits. Effectiveness in the HRM
practices helps in increasing organisational profitability and productivity. Employee relation
will have impact on the HRM decision making and the design of HRM practices must be on
the basis of HRM legalisation. This report illustrates the purpose and scope of HRM in terms
of resourcing an organisation to fulfil business objectives. It also provides evaluation on the
effectiveness of the key elements of HRM in the firm. An analysis about the internal and
external factors that affect the decision making of HRM is provided in the report. At last the
application of the HRM practices in the work-related context has been showcased.
LO1
Purpose and functions of HRM
There are different purposes and functions of HRM in any organisation that can help in
workforce planning and resourcing are:
 Recruitment and selection: It is critical for the organisation that they have best talents
within the firm. This is necessary for improving the overall efficiency of the
organisation. There are two types of recruitment process i.e. external and internal
processes. Selecting the approach to recruitment is on the basis of the requirements of
the firm. If the best talents are recruited within the firm then there is higher chance
that company will be able to achieve efficiency which could help in achieving the
desired outcomes (Robertson and Barling, 2013).
 Benefits and compensation: Employees within the firm seeks different kinds of
benefits and compensations. If the company is able to provide higher benefits and

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compensation then there is higher chance that the motivational levels of the people
also remain on the higher side. This also ensures more loyalty from their side which is
critical for the company to achieve higher productivity (Frenkel, Restubog and
Bednall, 2012).
 Establishing relation among labour and employers: It is also the purpose of the HRM
to make sure that they are able to have strong employee relations. Since HRM acts as
a bridge between employers and workers hence they play a major role in building an
effective relation between workers and the company’s management (Ridder and
McCandless, 2010).
 Development of HR: Human Resource Management also has a function to develop
the talent within the organisation. This talent development allows the company to
enhance the skills and competencies of the workers. This might lead to achieving all
the desired outcomes. Providing regular training on the basis of the training module
designed by the HRM will help companies to get ready for their future and at the
same time it will also help the company to make sure that they are moving as per the
planning done by the company for itself which will automatically help in achieving
the desired objectives. Designing training module of international standard is again
the functionality of the organisation (Innocenti, Pilati and Peluso, 2011).
 Health and safety: It is the purpose of the HRM to ensure that they provide a
workforce environment where health and safety of the employees can be ensured.
Designing of the health and safety initiatives by the HRM not only help the company
to improve loyalty of the consumers but it also helps them company to achieve more
commitment from their side. This is because they believe that safety is their priority
and they are also able to think with a free mind (Kramar, 2014).
 Rewards and appraisal: It is also the function of the HRM to ensure that they have
designed a reward and appraisal plan that will ensure higher satisfaction level of the
employees. Higher rewards call for higher commitment from the side of the
employees since they feel that company is also thinking for them and at the same time
they feel that company rewards for their efforts (App, Merk and Büttgen, 2012).
Strengths and weakness of different approaches to recruitment and selection
Different companies apply different approaches to recruitment and selection. Internal
recruitment is a fast recruitment process in which recruitment and selection is done from